INSIGHTS FROM WITHIN THE SMALL BUSINESS NETWORK
Making the brand promise personal, profitable and provable
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SMALL BUSINESS INSIGHTS Â We are always in a constant pursuit to understand the ever-changing small business owner. We created this booklet to help guide and keep us closely engrained in the things that are shaping and driving their world. This booklet is an examination of their fears, their passion, their struggles, their hopes, their attitudes, their needs, their preferences, their beliefs and their behavior.
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TABLE OF CONTENTS INSIGHTS
1
SMALL BUSINESS SNAPSHOT
3
NO REST FOR THE WEARY – INDEPENDENT BUT STRESSED OUT
7
FINDING THE BALANCE
11
EVER DAY A NEW CHALLENGE – DAY IN THE LIFE OF SMALL BUSINESS OWNERS
13
HIGH ACHIEVERS
21
CASH FLOW WOES
23
WHAT KEEPS THEM UP AT NIGHT?
27
SELF-MADE PROMOTERS
31
WOMEN-POWERED BUSINESS
33
SMALL BUSINESS SUCCESS STORIES
35
BECOMING TECHNOLOGY MAVENS
47
TOP TRENDS FOR SMBs IN 2013
53
WE’RE ALWAYS LISTENING – SMALL BUSINESS VOICES
59
SOURCES
67
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SMALL BUSINESS SNAPSHOT
ANATOMY OF A SMALL BUSINESS OWNER There is no singular path to small business ownership. Contrary to common assumption, only a small percentage of small businesses are inherited. In fact, for the vast majority of small business owners, the decision was motivated by a desire for independence, different professional challenges or the opportunity to build their expertise. Despite the uncertain economic climate, fewer than 1 in 10 respondents were prompted to start a business by job loss. - Bank of America small business owners report – May 2012
WHY DID YOU START YOUR BUSINESS?
Generational Inherited Business through Family
SMALL BUSINESS BY THE NUMBERS
Career Changer Wanted to try something new
59%
15%
16%
Have owned the business between 1-10 years
Trade Expert Wanted to become an expert in my field
Independent Wanted Wanted to be my own Boss
30%
Ser
sed b ial u regula sinesses rly 9 %
Purch a
19%
64%
Employ between 2-10 people
74%
Are between 24-54 years old
42% Are Female
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SMALL BUSINESS MAKES UP :
99.7%
of U.S. employer firms
64%
of net new private-‐sector jobs
49.2%
of private-‐sector employment
42.9%
of private-‐sector payroll
46%
of private-‐sector output
43%
of high-‐tech employment
98%
of firms expor=ng goods
33%
of expor=ng value
27.9 MILLION SMALL BUSINESSES Estimated in 2010
5
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WHAT IS SMALL BUSINESSES’ SHARE OF NET NEW JOBS? Small firms accounted for 64 percent of the net new jobs created between 1993 and 2011 (or 11.8 million of the 18.5 million net new jobs).
64
PERCENT
OR
11.8 MILLION SMALL BUSINESSES
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NO REST FOR THE WEARY JULY
9
and sma stres
(T ab 38 7 d
INDEPENDENT BUT STRESSED OUT
Small business owners find managing their ongoing success of their business to be twice as stressful as maintaining a healthy relationship with a spouse/partner, nearly three times as stressful as raising children and more than four times as stressful as managing their own personal finances.
20%
Managing the ongoing success of my small business
Doing some sort of physical activity
STRESSED
13%
15%
38%
Maintaining a healthy relationship with a spouse or partner
Raising children
69%
57%
Feel mentally prepared to tackle business challenges in the coming year
Expect their business to grow in the coming year
BUT OPTIMISTIC FOR THE FUTURE
8
and sma stres
(T ab 38 7 d
TOP SACRAFICES SMALL BUSINESSES HAVE HAD TO MAKE IN THE LAST YEAR
15%
15%
18%
37%
57%
Raising children
Maintaining personal finances
Maintaining relationship with spouse
Keeping fit
Time for myself
WHAT’S KEEPING SMALL BUSINESS OWNERS UP AT NIGHT? I have cash flow concerns I am stressed out by the economy I fear losing my customers I fear losing my business entirely Repayment of existing loans Work situation is effecting their family
59% 53% 49% 47% 43% 36% 9
FINDING THE BALANCE B
C
THE BATTLE BALANCE BETWEEN WORK AND LIFE For small business owners, the notion of “clocking out for the day” doesn't truly exist. The work-day may come to a close but their business is always moving. The email and voice mail alerts on their phone are constantly blinking, reminding them that the work never stops. Aside from the stress, pressure and time that’s continually poured into keeping the business afloat, small business owners also have to find time to care for their families, both of them! Not only do they need to find the time and energy to take care of home but they also have to care for their employees and ensure their well-being. Week in and week out, the cycle continues and small business owners learn that there is no rest for the weary.
52 6 70 66 Number of hours worked on average per week.
Number of days they typically work per week.
Percentage that have forgone vacation in the last year.
Percentage that had to cut profits in order to pay employees.
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EVERY DAY, A NEW CHALLENGE TO DO LIST ✔ ✔ ✔
Meet Adam Warren, 30 Business: Syinc.tv and Sportyourself, Inc., Fort Worth, Texas My team and I have been working on a technology that lets you put links to retailers' pages on the products displayed in your pictures and videos. When you share them, people can see and buy the products you tag - and you get paid. This definitely isn't a 9-to-5 job. I'm thinking about the business all time, but I don't see it as work.
A DAY IN MY LIFE: 6:30 a.m.
My 2 year-old son will make sure I'm up no matter how late I worked. I spend my morning in my home office on mundane tasks such as testing or setting up meetings. I also interview the next people we may want to hire; I like to do that first thing while I'm bright and fresh.
9:00 a.m.
There's a school across the street, and I'll take my son over there to play. I've definitely made gamechanging decisions for my business while my son plays on the soccer field.
10:00 a.m.
I expect a call from my investor and discuss how everything is going.
1:00 p.m.
I log in to Skype to talk with my designers over in Europe. They're wrapping up their day jobs and just starting on mine.
6:00 p.m.
We sit down for family dinner.
7:00 p.m. – 10:00 p.m.
It's back to talking with project managers in the U.S. and overseas. Then it's on to dreaming of what's next.
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“I haven't experienced not working in the evening for a while. But I think if you're passionate about your work, it's what you want to be doing anyway.� - Adam Warren
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Meet Andy Moeck, 41 Business: MOEO, Los Angeles, Calif. We build games for mobile devices that allow people to play against each other in real-time sporting events. We have a baseball app called Hit-no-Hit. And we're building apps for football, soccer, UFC, cricket and golf. We started this company two years ago, and it's beginning to take off.
MY AVERAGE DAY LOOKS LIKE THIS: 5:30 a.m.
I get up and get a lot done because the house is quiet. I catch up on tech news and start responding to emails. I work mostly from home, though we have shared office space that we use for meetings.
7:30 a.m.
Take a break to get my two kids ready and drive them to school.
8:30 a.m.
Back to my home office to catch up with the five people I work with. Everyone is wearing multiple hats. I may be the CEO, but one day I'm out raising money, and another I'm working as the sales guy talking to clients. Then I sit down and write code or whatever needs to be done.
1:30 p.m.
I take a quick break to pick up my son, and spend some time with him. Then I might watch a sporting event for work. I'll also send emails, test the apps, and write more code.
6:00 p.m.
Dinner with family. I help with homework and put kids to bed.
8:00 p.m. – 11:00 p.m.
Back to work. I have a standing call with all the MOEO people. The kids are sleeping, and it's when we can get together and chat.
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“My work and personal life all blend into one. While it can be hard to disconnect and not work all the time, I'm realizing now that it's important to do so.� - Andy Moeck
Meet Jess Stone, 35 Business: A Cupcake Social, Minneapolis, Minn. Baking used to be my hobby, but I always felt like there was something else I was supposed to be doing. My business partner and I began catering in 2011, and we opened the food truck last April. We serve freshly baked cupcakes, coldpress coffee and cupcake sundaes.
THIS IS A TYPICAL DAY IN MY WORLD: 6:00 a.m.
We arrive at the food truck to start baking. On an average day, we'll sell 200 to 300 cupcakes, though when we have an event it can be many more.
9:00 a.m.
We park the truck at our location for the day. Then we do all the prep from decorating the cupcakes to making coffee. We also post our location on Facebook and Twitter.
11:00 a.m. We open the truck window and start helping customers. We're selling cupcakes, making sundaes and doing a lot of chatting. It's kind of like a bar, people hang out and talk.
2:00 p.m.
The truck closes. Then we spend the afternoon reviewing e-mails and running errands such as filling the truck's propane tanks, restocking inventory and scrubbing the truck down.
5:30 p.m.
We get home and change jobs. We're both moms and wives so we make dinner and help our kids with homework.
8:00 p.m. – My work brain is never off. I'll go to my home office and take care of 11:00 p.m. administrative stuff.
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“We took a huge risk to quit our jobs to do this, but it's been worth it. That feeling that something is missing is gone.� - Jess Stone
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HIGH ACHIEVERS
SUCCESS INDEX FOR HIGH ACHIEVING BUSINESSES
American Express Open released the results of their small business monitor report for the past year, and for the first time, the semiannual survey includes a Success Index to identify commonalities across successful businesses. The most successful group of entrepreneurs have been identified as High Achievers and represented 6% of the surveyed field.
CHARACTERISTICS OF HIGH ACHIEVERS
Percentage of business growth they have attained over the last three years.
Number of people they employ.
Number of years on average they have been in business.
78%
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18
26
84%
40%
70%
79%
Plan on making capital investments.
Heightened focus on better customer service.
Offer loyalty Programs.
Leverage social media for their business.
Use social media to attract new customers.
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CASH FLOW WOES
ners n, w in
49%
of small business owners say they have cash flow problems.
Of these
22%
20%
14%
12%
10%
Will access their personal or private funds
Obtain and use a line of credit
Will put off purchases
Will use a credit card
Will get a shortterm loan
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SACRIFICE TO KEEP THE BUSINESS AFLOAT
Small business owners have gone without a paycheck.
Cut profits to pay employees rather than reduce staff.
They worked more hours – forgoing vaca=on and family =me.
Worked more hours – forgoing vaca=on and family =me.
Employees worked addi=onal hours without pay.
Credit employees voluntarily accep=ng missed or delayed paychecks.
54% 66% 70% 80% 38% 18% 25
and sma stres
ore n
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ent
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THEY’RE FORCED TO RAISE PRICES
Pressured by higher operating expenses, more small businesses were forced to raise prices in 2012 than in recent years. Although reluctant, small business owners are planning to continue with higher prices throughout the duration of 2013.
35%
SQUEEZED
AND FORCED TO PASS ON COST
80%
Business owners who intended to raise prices in 2012, while only 7 percent expected to cut them.
Of those intending to raise prices, 80 percent said they were doing so to avoid a "profit squeeze from higher costs.”
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WHAT KEEPS THEM UP AT NIGHT?
?!
WHAT ARE THREE BIG CONCERNS FOR 2013? In 2013, small business owners will contend with many of the same issues that made it hard to run their companies over the last 12 months. Uncertainty and confusion will surly be the theme for small businesses in 2013 as owners still have many questions and concerns about the implications of the health care law, fiscal cliff agreement, lending and taxes.
INCREASED MINIMIUM WAGE Proposed for 2014
AFFORADABLE CARE ACT (OBAMACARE)
50 EMPLOYEES AT 30 HOURS/WEEK
“The $9 minimum wage increase would cause financial strain to our business.”
Will have an impact on America’s 28 million small businesses and the economy as a whole. (2010 - 2014)
“We would not hire any new people and we may have to let some go and cut back.”
There is still widespread confusion among small business owners about the law’s implementation and requirements.
“Every supplier, vendor or business partner we have will be effected similarly… driving up prices for us… which will in turn drive up prices for our customers.”
Some businesses will opt to take the penalty and do away with health insurance as this is a cheaper option. Leaving their employees uninsured, and forcing them to go to state health plan exchanges that could be more expensive.
“The $9 minimum wage will have a negative effect on our business by forcing us to raise prices and possibly cutting back on some of the products that we carry.”
CHANGING TAX LAWS
For those who have close to 50 workers, they may decide to not hire more workers in order to remain outside the law's jurisdiction.
Many small business owners are worried about their personal tax rates. Sole proprietors, partners and owners of what are called S corporations, all report the income from their businesses on their individual Form 1040 returns. That means their companies are in effect taxed at personal rates, which can be higher than corporate rates. One of the most important tax provisions for small businesses, what's known as the Section 179 deduction, will shrink to $25,000 next year from $125,000 in 2012.
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TOP
I’d like a community of business ECONOMIC owners.
CONCERNS
-VYYLZ[LY YLZLHYJO
75% Effectiveness of U.S. government leaders
73% Commodity prices
70% Healthcare cost
71% Recovery of consumer spending
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.
SELF-MADE PROMOTERS
EFFECTIVENESS OF MARKETING TECHNIQUES AS RATED BY SMALL BUSINESS OWNERS. Small business operators are increasingly turning to social media to promote their businesses and interact with customers, according to a recent report by Manta, a Columbus, Ohio-based online community for small businesses. Fifty percent of small businesses are spending more time using social media sites for business than they did last year. Manta says 36 percent of small businesses that responded to the survey said they use social media sites to acquire or engage new customers. Nineteen percent responded that they use social media to gain leads or referrals. And 17 percent said social media helps them drive awareness or market their businesses. - Sacramento Business Journal. “Small-business owners turning more to social media.�
84%
Word of mouth and customer referrals
55%
Networking with other small business
46% Direct mail or Email
43%
Advertising, print, broadcast, radio, etc.
=
42% Social Media
50 percent of small businesses are spending more time using social media sites for business than they did last year (2012).
WOMEN-POWERED BUSINESS
8.6 MILLION Women-owned businesses in the United States
1.2
$ TRILLION
Revenue generated
7.8
MILLION People employed
WOMEN OWNED BUSINESSES ARE SEEING PHENOMENAL GROWTH If small businesses are at the heart of the nations economy, then Women-owned businesses would have to be considered the ignition, kickstarting the whole system. By 2018, the Bureau of Labor Statistics predicts that women- owned businesses will be responsible for creating one-third of the 15.3 million new jobs. Without a doubt, women-owned businesses are quickly becoming the nation’s job-creation engine. Within this explosive growth, there is a success story of firms owned by women of color. As of 2013, the number of firms owned by women of color has skyrocketed to an estimated 2,677,700, and now comprises 31 percent of women-owned firms.
The growth in the number, revenues and employment of women-owned firms over the past 16 years exceeds the growth rates of all but the very largest, publicly traded corporations in the country.
Comprising just 17% of women-owned firms 16 years ago, firms owned by women of color now account for one in three womenowned firms in the U.S. (2,677,700 SMBs)
The states with the fastest growth in the number, employment and revenues of women-owned firms are:
ND GA
WY NV
D.C.
The fastest growing metropolitan areas for women-owned firms are: San Antonio, TX Portland, OR Houston, TX
Riverside, CA Washington, D.C.
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SMALL BUSINESS SUCCESS STORIES
Shawn Smith Age: 34 City: Chicago, Illinois Founder and Owner: Shawnimals Founded: 2002 Employees: 4 Annual Projected Income: Undisclosed
A Business Man in the Making
In Search for a Little Direction
Making the Most of His Small Business Resources
As a child, Shawn was always fascinated with cartoons,
The company has seen 12 years of success, but Shawn
Shawn and Jen have been fortunate enough to capture the
comic books and video games. In college that passion
s=ll has a lot of unanswered business ques=ons that
aUen=on of Nintendo and have licensed out some of their
translated into a series of hand-‐drawn humor based comic
he’s trying to figure out on his own. “Are we really
characters in order to produce a full-‐fledged DS video game.
book sketches. As a hobby, he and his wife, Jen would bring
trying to target the mainstream market? What’s the
It’s a deal that would seethe game and characters sold
those sketches to life by transforming them into hand-‐sewn
ceiling? How big are we going to get? Are we going to
interna=onally. Obviously, nego=a=ng and authoring
plush dolls. Shawn officially launched his mail-‐order business
make a big retail marke=ng push and get into Target
contracts with interna=onal licensing and IP issues was
in 2002, and today their designer toys, lifestyle accessories,
and every Museum shop and Urban OubiUers and
foreign territory for the two, so they turned to the University
apparel and comic books are distributed in 100 stores
mom-‐and-‐pop toy shop? And how do we mi=gate
of Chicago School of Law for help. It turned out to be a smart
worldwide. Now, they’re looking to expand the business to
that growth?” Shawn knows that there are basic
move for both par=es involved. The professor and
include everything from a video game to an iPhone app
business fundamentals that he hasn't yet
administrators at the University of Chicago were able to give
based on the lovable characters. In his previous job, Shawn
implemented but his biggest problem is that he simply
their students real-‐life experience dealing with interna=onal
was an editor for Electronic Monthly, and although he runs
doesn't know what he doesn't know! Shawn could use
contracts, and Shawn and Jen were able to save thousands of
and operates his own business, he s=ll sees himself as a
a small business resource dedicated to not only
dollars in legal fees.
crea=ve guy striving to become a businessman.
technologically equip his business but also help them
become smarter business owners.
“Striking the balance between business development and creativity has been really difficult. While the overall vision of the company is collaborative, a lot of it falls on my shoulders, and I wonder, how can I utilize the creative part of the brain, which is my strength, and maintain that level of creativity while still making a profit?”
- Shawn Smith
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“Striking the balance between business development and creativity has been really difficult. While the overall vision of the company is collaborative, a lot of it falls on my shoulders, and I wonder, how can I utilize the creative part of the brain, which is my strength, and maintain that level of creativity while still making a profit?� - Shawn Smith
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Lee Rhodes
Age: 49 City: Seattle, WA Founder and Owner: Glassybaby Glassblowing Studio and Retail Shops Founded: 2001 Employees: 110 Annual Projected Income: 8.5 Million
Built Her Business the Hard Way
Beyond a Business, This is Her Calling and Purpose
Still Looking for a Helping Hand
Meet Lee Rhodes, a veteran small business owner and
Lee embarked on this adventure with liUle to no knowledge on
Lee is a self-‐proclaimed “News Hound” and is
mother of three young children. She is the owner and
how to run a retail business, but has somehow stumbled her
constantly looking for interes=ng reads about
founder of Glassybaby, a company that specializes in hand
way through opening and opera=ng three store loca=ons.
other small businesses and how they are
blown glass cups that are used for candles, vases and
Now she’s looking to find the balance between being a store
adap=ng to stay compe==ve and relevant. She
decora=on. Ager founding her company in 2001, she has
owner and geing back to her passion of crea=ng. Lee has an
doesn't think of Glassybaby as just a small
managed to build a formidable business, including a glass-‐
office at her glass blowing studio where she handles all the
business, she thinks of it as her calling in life and
blowing studio and three retail loca=ons.
day-‐to-‐day requirements of opera=ng her business. Deliveries,
gladly works up to 70 hours a week to keep it
incoming orders, and catering requests are all handled by her
going. Lee is by all means a strong leader and
Ager her first four years of opera=on she has finally started
six full =me office employees. She knows a lot of these
visionary, but that doesn't mean that she’s not
turning a profit, and now she projects that revenue for the
func=ons can be done through her Android device, but she
looking for help in becoming a beUer business
company this year will reach 6 million. Managing her
doesn't have the =me nor the know how of loca=ng the best
owner.
business has become a much tougher and demanding
apps.
endeavor than she originally an=cipated, and she is constantly looking for ways to simplify the process. She’s keen on seeking out advice on how to streamline her day-‐to-‐ day managerial responsibili=es and would appreciate a wireless company that could personalize a set of business tools for her.
“My story started Glassybaby, but that same emotional response has continued to flow naturally. That experience really elevates us above just being in retail and makes us into something experiential and life changing.” - Lee Rhodes
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“My story started Glassybaby, but that same emotional response has continued to flow naturally. That experience really elevates us above just being in retail and makes us into something experiential and life changing.� - Lee Rhodes
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Michal Chesal Age: 40 City: Davie, Florida Founder and Owner: Baby K’tan Founded: 2007 Employees: one full-time, three part-time, 9 reps Annual Projected Income: 1 Million
A Business Born Out of Necessity
It’s About Their Customers and Supporting Their Needs
Growing but Still Needs Support
Meet accidental entrepreneur Michal Chesal, a proud small
Prior to star=ng Baby K’TAN, Michal worked as a Director of
Michal sells about $1 million worth of the baby
business owner and single mother of three young children.
Academic Affairs for a university based in Israel. She had no
K’TAN interna=onally each year through roughly
She is the founder and co-‐owner of Baby K’Tan, a line of
business experience, business educa=on, and unlike the typical
700 specialty shops and chains including Buy Buy
stylish and prac=cal baby sling carriers. Although the
small business owners, she never had drive or passion to go into
Baby and Bed Bath & Beyond. Star=ng out she
company has seen a good amount of success since its
business for herself. But what she lacked in business drive she
literally had no marke=ng budget and so she had
incep=on in 2007, owning and opera=ng her own business
more than made up for in her passion to help and support new
to rely on word of mouth and trade shows to help
was the furthest thing from Michal’s mind. The need to
mothers to care for their children. In fact, one of the core values of
grow the company. Company growth has been a
create her unique style of baby wraps arose when her first
her business is inten=onally nurturing the rela=onships she has
slow process but ager six years in business and
child was born with Down Syndrome and was unable to be
with customers around the world. Baby K’TAN has been referenced
two celebrity endorsements, Michal is very
carried in any of the standard baby wrappings. She designed
in a lot of Down Syndrome community boards, and the company
op=mis=c about the future of her company and
and assembled her first baby wrap for her own personal use,
receives hundreds of Emails from moms who have babies with
their new line of accessories and personalized
and ager carrying three children in the hand-‐craged wraps,
special needs. Her passion and drive doesn't stem from selling
baby carriers.
she was all but forced by friends, family, and strangers on the
more products, but rather in connec=ng with customers and
street to make more of the swaddling carriers.
suppor=ng families.
“ I had no intention of doing more with it than just using it myself. But I got comments every day I used it. People would say, “Is that a wrap, a sling, what is it?” I was surprised at how many comments I got. But starting a business was the furthest thing from my mind.“
- Michal Chesal
44
“I had no intention of doing more with it than just using it myself. But I got comments every day I used it. People would say, ‘Is that a wrap, a sling, what is it?’ I was surprised at how many comments I got. But starting a business was the furthest thing from my mind.” - Michal Chesal
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BECOMING TECHNOLOGY MAVENS
SMBs LEADING THE WAY FOR SMARTPHONE AND TABLET ADOPTION 85% Smartphone adoption among general population
51%
Smartphone adoption among SMBs
85%
Mobile phone adoption among general population
78%
85% of small businesses report using smartphones for their operations, more than double the usage five years ago.
SMARTPHONES AND TABLETS ARE DRIVING SMALL BUSINESS Business owners who use their mobile devices as the primary contact number for their business.
36%
Business owners who use their mobile devices to access the Internet multiple times a day.
42%
Business owners who check email via their smartphone multiple times a day. Business owners who use tablet computers for their business..
54% 69% 48
SMALL BUSINESS IS HOOKED ON APPS For small business owners, apps have become indispensable. In 2011, about 70 percent of small businesses used mobile apps for operations and almost 40 percent said it would be difficult to survive without them, according to AT&T’s technology poll. Mobile apps can help small business owners save time— about 5.6 hours a week, according to a report published by the Small Business & Entrepreneurship Council. The study estimated that small business owners are annually saving 373.8 million hours of their own time and 725.3 million employee hours by using mobile apps. The employee hours alone translate to about $17.6 billion a year.
SMBs are expected to use 60% more business apps by 2014.
29%
Roughly one-third of small businesses say they couldn’t survive or that they would find it a major challenge to survive without mobile apps.
APPS HELPING SMBs TO SAVE TIME AND MONEY
5.6 HOURS
EVERY WEEK
374 17.6 MILLION BILLION $
HOURS ANNUALLY
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IT’S NOT JUST ABOUT THE TECHNOLOGY. WE MUST ILLUSTRATE THE HUMAN CONNECTIONS AND SHOWCASE THE PERSONAL BENEFITS IT PROVIDES.
.
?!
HOW DO SMALL BUSINESS OWNERS BENEFIT FROM MOBILE TECHNOLOGY AND APPS?
• Helps propel their business
• Opens the door to more opportunities .
to customers.
forward in terms of technology capabilities.
• A l l o w s t h e m t o c a p i t a l i z e o n serendipitous connections.
• Gives smaller businesses a sense of confidence.
• Helps them become more accessible
• Strengthens their customer relationships and service offering.
• Allows them to become more flexible in their service offering.
• Helps them connect personally with customers.
• Helps them project a bigger image.
• Allows them to be connected to their business – anywhere, anytime.
• Makes it easier for them to go above and beyond in terms of services
• Helps them look and operate more professionally.
• Gives them the confidence to be away
rendered.
from the office. • Helps them to save time so they can
• Helps ease the learning curve of complex task. • Save money by reducing staff
• Allows them to take their business with
invest more time in the business.
them in their pocket so they can focus on the family.
• Helps them maximize profits with quick decision making.
hours.
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.
WE CANNOT UNDERESTIMATE THE POWER OF CONNECTING THE BENEFITS TO THE CUSTOMER. SOMETIMES THE BENEFITS NEED TO TAKE CENTER STAGE IN OUR MESSAGING.
TOP TRENDS IN 2013 FOR SMBs
SMALL BUSINESS INSIGHTS In our pursuit to understand the ever-changing small business owner, we looked at the most anticipated trends that will shape the way small business owners think and do business in the coming year. We examined both consumer trends as well as small business specific trends. The following trends highlighted here will provide you with a quick glimpse as to what’s on the horizon for SMBs in 2013 and beyond. We’ve only include a small sample of the 2013 trends in this booklet, but if you would like to explore these trends and more in greater detail, then ask us about our full 2013 trends briefing report. We would be happy to walk you through it!
1) Mobile Lifestyle Hyper Tasking: Micro-convenience, mini-experiences and digital snacks *
5) Digital Technologies are the New Medicine 6) Social Media ROI will be Heavily (Re) Evaluated
2) True SMB Mobilization Will Finally Mature 3) SMB Fears Are Being Put Aside for the Cloud *
7) Transparency will be Key for Consumer Trust (Truth in Transparency An NPS Love Story) *
4) A New Era of (Big) Data-Driven Decision Making
8) Point – Know- Buy * Trends included in this booklet
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MOBILE LIFESTYLE HYPER TASKING: MICROCONVENIENCE, MINI-EXPERIENCES AND DIGITAL SNACKS In 2013, consumers will look to their mobile devices to maximize absolutely every moment. Hectic, urban lifestyles mean that no amount of (micro) time will be too fleeting, or activity too absorbing to cram more content, connection, consumption or simply more fun. For our service-based small business owners, this means their customers will become more accustomed and even demanding in their ability to order, modify, and track services right from their smartphone.
EARLY INDICATORS OF THIS TREND: PEAPOD: QR CODE VIRTUAL STORES
Peapod, an online grocer, is slated to launch 100 QR code virtual stores in train stations across the nation. No time goes wasted as commuters can go shopping while they wait for their train.
POGOSEAT
A mobile application that allows sports fans at live events to identify vacant seats with better views and then purchase an upgrade immediately.
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SMB FEARS ARE BEING PUT ASIDE FOR THE CLOUD Small business owners have been using the cloud for sometime now and didn’t even realize it. That’s mainly because they’ve never associated their everyday computing services of online music, photos and data storage with the so-called “Cloud.” As they become more familiar with the cloud, SMBs are recognizing the significant cost savings and mobility that it provides. J2, a business level cloud provider, predicts that two out of three SMBs will be using the cloud in 2013. Perhaps the biggest adopter of the cloud will be micro-business taking advantage of cloud computing and the widely available array of Software as a Service (SaaS) applications. Lower cost, greater flexibility and the ability to support remote workforces are some of the advantages cloud services can provide to help SMBs even the playing field with bigger corporations.
WHY SMBs ARE LOOKING TO THE CLOUD: Economies of Scale
Small companies have limited resources. The Cloud gives them access to scale in purchasing and pricing.
Money Matters
Start-ups and small companies are often undercapitalized and pay-as-you-go cloud computing solutions typically don't require lots of up-front cash.
Infrastructure vs. Applications For the enterprise, cloud computing often means complex iinfrastructure as a Service (IaaS) projects that have to be installed and integrated into a company's existing systems. For smaller companies, cloud computing often means complete cloud-based Software as a Service (SaaS) applications and application suites. No IT required.
Mobile Working
The Cloud allows small business owners to create fully functional mobile offices. They can access and sync their data from wherever they are, essentially allowing them to take their office with them on the road.
Growth Planning
The Cloud is scalable, so it allows small businesses to create a plan for growth that utilizes the benefits of the Cloud without a significant up-front investment. They can start small, and gradually increase their usage over time, while only paying incrementally for the services and access they need.
Enterprise-Class Functionality In the Cloud, small companies can leverage development, maintenance and upgrades across their business without the barrier of IT cost.
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TRANSPARENCY WILL BE KEY FOR CONSUMER TRUST (TRUTH IN TRANSPARENCY AN NPS LOVE STORY) The mega trend of Transparency will continue strongly in 2013 as weary consumers have had enough of all the false promises and conflicting marketing claims. More than ever they are looking for brands they can trust. “Brands must move from having nothing to hide, to proactively showing and proving they have nothing to hide, and go beyond uttering lofty statements on 'values' or 'culture' to real, unambiguous and clear evidence, or statements about actual results.” A survey conducted by Concerto Marketing Group found that when people trust a brand, 83 percent will recommend it to others; 82 percent will use its products and services frequently; 78 percent will look to it first for the things they want; and 78 percent will give its other products and services a chance.
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WE’RE ALWAYS LISTENING LISTENING
“I’M OPEN TO AT&T HELPING ME RUN MY BUSINESS BETTER.”
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“MY BUSINESS ISN’T JUST MY LIVELIHOOD. IT’S MY LIFE. I CANNOT, WILL NOT, FAIL.”
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“EVERY DECISION I MAKE, AND EVERY DOLLAR I SPEND, IS DONE TO STRENGTHEN MY BOTTOM LINE.” 62
“ I MAKE MYSELF SMARTER & MY BUSINESS BETTER WHEN I’M ABLE TO LEARN FROM OTHER BUSINESS OWNERS & EXPERTS.” 63
“I WANT TO LEARN FROM OTHER BUSINESS OWNERS.”
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“I’M OPEN TO AT&T CONNECTING ME TO A COMMUNITY OF SMALL BUSINESS OWNERS.” - AT&T Small Business Customer Interbrand Research 2012
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WE’VE GOT SOME IDEAS, TALK TO US ABOUT PROJECT SAM S.A.M.
SOURCES 1. Adams, Becket. “7 Small Businesses Tell Us How Obama’s Call for Increase in Minimum Wage Would Affect Them: Bad,Bad’Bad.” The Blaze.com. March 6, 2013. http://www.theblaze.com/stories/2013/03/06/7-small-businesses-tells-us-howobamas-call-for-an-increase-in-minimum-wage-would-affect-them-bad-bad-bad/# 2. Campbell, Anita. "3 Tech Trends That Will Shape Your Business in 2013." American Express Open Forum. 7 January. 2013. http://www.openforum.com/articles/3-tech-trends-that-will-shape-your-business-in-2013/ 3. Coombs, Beartha.”For Small Business, Learning Obamacare Math” April 15. 2013. CNBC.com. http://www.cnbc.com/id/ 100641995 4. Guarini ,Drew. “Small Business Owners Are Going Without Pay, Survey Finds.” The Huffington Post June 18, 2012. http:// www.huffingtonpost.com/2012/06/18/small-business-owners-no-pay_n_1605812.html 5. Kearsly, Kelly. “I Work 70 Hours a Week,” CNN Money. http://money.cnn.com/gallery/smallbusiness/2013/03/06/70-hourworkweek/index.html 6.
5 ISSUES SMALL BUSINESS OWNERS WILL FACE IN 2013 By JTime, OYCE M. Business ROSENBERG King, Rachael.”DIY Apps Save Small Businesses Money” Week. February 6, 2012. http:// www.businessweek.com/technology/diy-apps-save-small-businesses-time-money-02062012.html — Dec. 26 3:11 PM EST
7. Klein, Karen. “Advice for Small Employers Confused by Obamacare” March 28. 2013. Bloomberg Businessweek. http:// www.businessweek.com/articles/2013-03-28/advice-for-small-employers-confused-by-obamacare 8. Maltby, Emily. Ovide, Shira.” Small Firms Say LinkedIn Works, Twitter Doesn't.” The Wall Street Journal. January 31, 2013. http://online.wsj.com/article/SB10001424127887323926104578273683427129660.html 9. Rosenberg, Joyce.“5 Issues Small Business Owners Will Face in 2013” December 26, 2012. http://bigstory.ap.org/article/5issues-small-business-owners-will-face-2013 10. Wolf,Mark D. “Women-Owned Businesses: America's New Job Creation Engine.” Forbes.com. January 12, 2010.http:// www.forbes.com/2010/01/12/small-business-job-market-forbes-woman-entrepreneurs-economic-growth.html 11. “Bank of America Small Business Owners Report,” May 2012. http://about.bankofamerica.com/assets/pdf/ Small_Business_Owner_Report_11.15.12.pdf 12. “Small Business Trends,” http://www.sba.gov/content/small-business-trends.
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SOURCES 13. “New OPEN Report Shows Phenomenal Growth of Women-Owned Businesses,” April 4, 2013. http://www.openforum.com/ articles/latest-trends-in-women-owned-businesses/ 14. “Percentage of U.S. Small Business Owners Reporting Positive Business Conditions Nearly Doubles Since 2010.” June 6. 2012. http://www.businesswire.com/news/home/20120606005835/en/Percentage-U.S.-Small-Business-Owners-Reporting-Positive 15. “Mobile Trends.”Emarketer.com. 16. “Small Business Economy 2012.” SBA.com..http://www.sba.gov/sites/default/files/Small_Business_Economy_2012.pdf 17. “ComScore Reports January 2013 U.S. Smartphone Subscriber Market Share.” Comscore.com. March 6,2013. http:// www.comscore.com/Insights/Press_Releases/2013/3 comScore_Reports_January_2013_U.S._ Smartphone_Subscriber_ Market_Share
5 ISSUES SMALL BUSINESS OWNERS WILL FACE IN 2013 Small Firms Say LinkedIn Works, TwiHer By JOYCE DMoesn't . ROSENBERG 19. “New OPEN Report Shows Phenomenal Growth ofec. Women-Owned Businesses” — D 26 3:11 P M EST http://www.openforum.com/articles/latest18. “Small-business Owners Turning More to Social Media.” Sacramento Business Journal. April 18, 2013. http:// www.bizjournals.com/sacramento/blog/morning-roundup/2013/04/small-business-turn-to-social-media-use.html trends-in-women-owned-businesses/?intlink=us-openf-nav-gallery
20. “Six Dimensions That Characterize Success-Oriented Small Business Owners.” Smallbizdom.com. June 2010. http:// www.smallbizdom.com/ 21. “For SMBs, the Future is Mobile, Social, and Connected." J2 Global. 19 December. 2012 22. "Parallels SMB Cloud Insights" Parallels. 5 February. 2013
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