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Online deal spending expected to rise
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Posted: 9/18/2012 4:29:14 PM

Online shopping may never replace the experience of going to a brick and mortar store, but it has become massively popular among customers living in the digital age. Online deal spending has skyrocketed with the rise of ecommerce, paving the way for small businesses to benefit from a huge upswing in online sales, according to a new study.

BIA/Kelsey, a firm that advises small businesses in local media and advertising, announced that it expects online deal spending to rise to $3.6 billion in 2012, an 86.9 percent increase compared to 2011. Deal spending is expected to grow 23 percent in 2013, but is then expected to taper off into single digit increases that result in $5.5 billion in online deal spending by 2016.

Online deals are consumer favorites and include specials like daily deals, instant deals and flash sales. And even though online deals are often associated with big web-based retail entities like Amazon.com, a large number of small businesses reported interest in profiting from online specials.

In a local commerce report also released by BIA/Kelsey, 26 percent of small business owner respondents indicated they were "very likely" (15 percent) or "extremely likely" (11 percent) to participate in online deals. In all, just over half of small businesses surveyed held a favorable forecast on online participation, with 24.3 percent responding they were "somewhat likely" to offer online deals.

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Posted: 5/14/2013 3:45:59 PM

Yelp is a site that allows consumers to review companies, but some small- and medium-sized business owners believe that the service is filtering out positive reviews. Michael Schenk, who owns Sliders Burgers, told Fox 5 San Diego that a few customers have said they've posted reviews that didn't go live on Yelp. The posts were likely flagged as spam by the website's internal servers. Kristen Whisenand, a Yelp representative, stated that the filters are important to prevent consumers and entrepreneurs from posting fake reviews. 

"The automated review filter helps minimize the amount of guesswork that may go into determining whether a review is legitimate or not," Whisenand said. 

Indeed, fake reviews are a huge concern for Yelp. Fox News recently reported that there was a Craigslist ad looking for people to write fraudulent restaurant reviews. There was also a financial incentive for consumers who posted the reviews on additional social networks. As a result of this and other spam initiatives, Yelp has been forced to institute rigorous standards to prevent fake reviews from appearing on the website. 

SMB owners want positive reviews and are frustrated when they aren't on Yelp. Until the site stops blocking real reviews, entrepreneurs may likely be unhappy with Yelp. 

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Posted: 5/13/2013 9:52:37 AM

A new survey reveals how small- and medium-sized businesses are using mobile technology. Constant Contact found that 66 percent of respondents use mobile devices or solutions in their enterprises. According to the poll, 73 percent of SMB owners use their tools for social media marketing, and 71 percent "conduct email marketing."

Additionally, 34 percent of companies have optimized their websites for tablets and smartphones. Joel Hughes, Constant Contact's senior vice president of strategy and corporate development, believes this statistic shows that SMBs are responding to consumer demands.

"It's encouraging that a majority of small businesses recognize that their customers are relying more than ever on their mobile devices to find information, look for deals, and even to make purchases," Hughes said in a statement. 

The poll also shows that SMB owners are using mobile technology for internal practices, as 18 percent of respondents have management apps for basic procedures. Some entrepreneurs choose to design their own apps so the software can be scaled for their enterprises and updated when necessary. 

Apps also allow SMB owners to institute bring-your-own-device policies so that employees can use their personal hardware at work. This helps entrepreneurs reduce overhead costs because they don't have to buy new equipment for every staff member. 

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Posted: 5/10/2013 9:24:12 AM

Small- and medium-sized businesses occasionally change locations. While there is a variety of reasons why an entrepreneur would move his or her company to a new establishment, there are always certain challenges he or she has to overcome. For instance, owners must ensure that loyal customers know about the change in location and attract consumers in the new area. Jeremy Sisk, president of Xperience4Higher, recommends holding promotional events to generate interest

"Have some kind of sale at your new location, like a grand opening, that encourages people to know that you moved and to come and shop with you," Sisk told The News & Observer. 

Sisk went on to say that SMB owners must update their online information so they won't miss any opportunities. When addresses and phone numbers aren't updated, consumers will be confused and may shop at competing establishments. Additionally, inconsistent contact information can hurt an SMB's search ranking. 

According to SEOmoz, owners must update their contact information on multiple websites because Google scans data from every page. The source notes that there are services that automatically check various sites and show entrepreneurs which ones must be updated. 

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Posted: 5/9/2013 8:41:12 AM

Small- and medium-sized business owners were feeling optimistic about their prospects as 2013's first quarter comes to a close. The Wells Fargo/Gallup Small Business Index reached 16 points in April, a seven point increase over January. The rating shows that entrepreneurs believe better days are ahead, especially compared to November when the index hit negative 11 points. 

However, the increase was not enough to reach the same level of optimism (23 points) from April 2012. In a poll, Wells Fargo found that finding new customers and increasing business are the biggest challenges that entrepreneurs are facing. 

"Small business owners, who now have stronger cash flow than at any time since the start of the Great Recession, tell us they're focused on generating more steady sales, and many are holding off making investments in their business until that happens," said Marc Bernstein, head of small business at Wells Fargo. 

To generate steady sales, SMB owners should increase their marketing efforts to reach consumers and find new leads. Attracting potential customers with social media messages and other advertisements can help entrepreneurs increase sales. Additionally, resources like customer loyalty programs can help SMB owners retain their clients. 

Small-business marketing news brought to you by 123Print.com, provider of affordable business cards, custom business identity products, printed marketing products and office organization items.

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Posted: 5/8/2013 8:17:39 AM

The Economic Development Authority in New Jersey recently approved plans to distribute $460 million to small- and medium-sized businesses that were affected by Hurricane Sandy. The Star-Ledger recently reported that the funds will be dispersed as part of the Stronger N.J. Business Grant program. The money is a portion of the $1.8 billion that Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, allocated for Sandy relief. 

To qualify, an SMB must have "sustained at least $5,000 in Sandy-related damage," according to the news source. Additionally, NJBIZ reports that companies must have earned between $25,000 and $5 million in revenue in 2012 in order to qualify. The EDA recently began processing applications, and Michele Brown, the agency's executive director, stated that over 300 applications were filed the day before the program was announced. 

Some SMB owners are applying because Hurricane Sandy hurt their patronage. For instance, Charlie Merla, who owns the Trinity Restaurant, is being foreclosed upon because his customers had to move elsewhere following the storm. 

"I was blessed by not suffering too much physical damage, but death comes in many ways," Merla told the Star-Ledger. 

The Stronger N.J. Business Grant program and similar initiatives will be critical to ongoing relief efforts in New Jersey. The funding should help SMB owners recover from the devastating storm and get back to work. 

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Posted: 5/7/2013 10:12:26 AM

Some small- and medium-sized business owners feel like they aren't prepared for the full implementation of the Affordable Care Act. According to CBS News, the new law will be fully in effect on January 1, 2014, but entrepreneurs are already concerned about the federal regulations. Hans Rockenwagner, who owns a bakery in California, feels that he hasn't been given sufficient guidance to prepare for the changes.

"What are the rates? Who are the carriers? Who's covered? Who's not?" Rockenwagner asked.

Indeed, confusion has been standard for many SMB owners as the new year draws near. The various rules, regulations and standards that comprise the ACA have made it difficult for entrepreneurs to understand what they'll have to do to prepare for the new laws.

Rockenwagner and others are particularly concerned about costs. Obviously, it'll be expensive for SMB owners to cover every employee, but the final rates haven't been released yet. The Associated Press reports that insurers in some states have requested to increase their rates.

"The last insurance company that we talked to told me it's actually going to be more expensive than it was in the past," Peggy Farabaugh, CEO of Vermont Woods Studios, said. 

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