One of the positive fallouts of the recent economic crisis has been the insurgence of entrepreneurism among those who would have otherwise worked for others. Along side this trend has been the emergence of a new phenomenon called “co-working.” For those who are unfamiliar with the term, co-working refers to an arrangement where budding entrepreneurs and current small business owners share a common workplace in exchange for a monthly fee.

What are the benefits of co-working for entrepreneurs? According to co-working small businessmen, the advantages are many. Here are several benefits to consider:

• Save on overhead expenses. Co-working members pay a monthly membership fee and work in a communal office space. The deal includes the work space as well as all the equipment required to run a business- from wireless Internet and faxes, to conference rooms. Savings on rent and other overhead costs are significant.

• Collaboration and partnerships. Many small business owners are forced to spend a lot of time on areas in their business that may not be their expertise, such as web site development or marketing. The co-working community is often based on the principle of barter. So, for example, an accountant may cooperate with marketers who are able to promote his services, while the former will handle the marketer’s accounts. This kind of interaction provides fertile ground for partnerships and greater chances of success for all the parties involved.

• Mutual feedback. Bouncing ideas off other people and brainstorming are highly effective ways to develop in new directions. Even if only part of the community is active in your particular field, you still stand to benefit and you can pick up new ideas and areas for development. You can even create a unique business agreement in which each party chooses to deal with a different side of a particular business.

• Business/Home Separation – Many businessmen who work from their home find that the business encroaches on their private lives. Often, no line is drawn between business life and home life. By joining a co-working community you can get your private life back and put your work where it belongs – at the office.

Co-working communities are rapidly gaining in popularity mainly due to the empowerment they offer each individual member. At a time of financial uncertainty, few businesses can afford to turn their backs on this kind of stability.

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Would you like to know how your business measures up to your competitors? Check out this free, informative survey based on the Small Business Success Index developed by the University of Maryland’s Robert H. Smith School of Business in conjunction with Network Solutions, LLC.

Network Solutions is a technology consulting company for small businesses specializing in Web hosting, Web site design, e-commerce, search engine marketing, SSL Certificates, e-mail and domain name registration services. In short, their focus is on both building and managing the online presence of their small business clients, to “help small businesses succeed online.” As of 2010, the company is in charge of “more than 7 million domains, over 1.5 million e-mailboxes, and more than 350,000 Web sites.”

The Small Business Success Index concerns six areas vital to healthy business operations and growth: capital management, marketing and innovation, human capital, customer service, IT deployment, and compliance with pertinent laws and regulations. After taking the survey, small business owners can use the free information, resources, and tools provided on the website to help them improve their business.

The survey takes five minutes to complete and in the end, you can request a free detailed report. It’s definitely worth a visit.

For the majority of U.S small businesses – the backbone of the nation’s economy – growth and expansion have remained on the back burner as of late. In fact, many smaller companies are struggling just to stay afloat even as reports stream in that the economy seems to be on the mend. Why? Here are a few reasons:

1. US Consumer Sentiment has plummeted once again. Consumers remain cautious about spending money. According to Thomson Reuters/University of Michigan’s Surveys of Consumers, U.S. consumer sentiment fell in early July to its lowest level in 11 months. This dramatic reversal comes after consumer sentiment climbed to its strongest level in nearly 2-1/2 years in June. All of this spells uncertainty for the majority of small businesses, and uncertainty breeds caution.

2. Banks have clamped down on small business loans. Banks are making risk reduction a priority at a time when a significant population of small businesses are struggling to be credit worthy. In a recent speech, Federal Reserve chairman Ben Bernanke called on community banks to lend more to small businesses because they are “crucial to America’s recovery.”In response, various banks noted that most small business owners are applying for funding just to remain afloat, never mind expansion. Moreover, even those who do seek to expand are struggling to come up with the collateral necessary to back up a loan due to the freefall in real estate prices.

3. Many small business owners are still trying to reduce debt levels. Many small business owners have accumulated bad mortgage or credit card debts and are still working at reducing their debt levels. The result: plans for expansion are put on the shelf.

4. Uncertainty regarding policies and legislation. Although during the past year, the Obama administration has pushed through a package of financial incentives to small business owners looking to expand or grow, these have since expired, and no decision has been reached regarding their renewal. There is talk in Washington about an overall incentive package for small businesses, but so far that is all it is – talk. And as we all know, you can’t take talk to the bank.

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According to a recent Federal Reserve report on small business credit card usage, though small business financing remains sluggish in the areas of business loans and business lines of credit, small business credit cards are fast becoming a popular, short-term financing option. Isn’t this a bit of deja-vu?

When the government stimulus program dried up in June, the biggest banks quickly responded by refusing to provide small business loans. Instead, they have been pushing credit card accounts on small businesses, claiming that credit card loans are the best thing since sliced bread. Has no one learned anything from the economic crisis?

In 2009, about a fifth of small businesses attempted to obtain a new credit card. Among those small businesses applying for cards in 2009, 80% stated that their most recent request was for a business credit card. In the end, about three-fourths of all applicants were approved for a card. On the other hand, the success rates for small businesses applying for lines of credit or bank loans in 2009 were about one-third and one-half, respectively.

Since credit card terms can change in an instant and lines of credit can disappear overnight, it’s clear that the banks that stand to make a hefty profit from the return to plastic. Credit card loans can be disposed of easily by the banks but place far greater pressure on business owners than standard bank business loans.

Nevertheless, with business financing so hard to come by (even those pesky SBA loans were notoriously hard to obtain), business credit cards used along with alternative methods of financing may be the only way businesses can secure the capital they need in this brave new recessionary world.

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As the unemployment rate continues to hover around 9.5%, leaving consumer income depleted, many industries have been suffering. But not every industry has been hit hard by the recession. The truth is that for numerous companies business is booming as a direct result of the high unemployment rate.

What are these industries, and why are they flourishing? Here’s a rundown:

1. Healthcare. Stressed-out people with no money or insurance to take care of themselves are prone to illness. Regardless of financial status, they still need healthcare.

2. Marriage and Family Counseling. Job loss and financial insecurity create wellsprings of conflict. Unhappy folk are turning to therapists to help them deal with the changes in their lives.

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3. Career Counseling. Many who have suddenly lost their jobs or who are just entering the job search pool are being forced to reconsider their career paths. Career counselors provide aptitude testing and advice.

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4. Training Seminars. Those seeking new employment opportunities need fresh education and training to prepare to work in alternate fields.

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5. Online Content Sites. Penny pinchers are thrilled to pick up free information, especially when it helps them save valauable time and money.

6. Debt Management Companies. People who are steeped in debt are turning to financial consultants and debt management companies to help them get their obligations under control and establish responsible spending habits.

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7. Temporary Staffing and Freelance Workers. Cash-strapped businesses can save a significant amount of capital by hiring temporary or freelance workers and independant consultants.

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8. Payday Loan Lenders.  Payday loan businesses offer small, short-term loans at high interest rates. People with poor credit and little cash often have few alternatives to cover living expenses.

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9. Debt Collectors and Repossession Agents. As income decreases, unpaid bills increase. Lenders need the services of those who will help  them recoup their cash.

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10. Fast Food Restaurants. Business for fast food establishments, such as McDonald’s, been booming as consumers look for cheaper alternatives when eating out.

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12. “Sin” Vendors. Vendors of alcohol, cigarettes, and candy, as well as gambling venues, offer a quick and affordable mood boost to people who are down in the dumps about the economy. Gambling also presents a chance to make some quick money.

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13. Second-Hand Buyers/Sellers. Unemployed customers who would have scoffed at buying second-hand a few years ago, now recognize the value of used goods.

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Earlier this week, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection financial reform bill into law initiating a sweeping reform of financial regulation. While the new legislation is meant to target big banks, it turns out that many small businesses may also be affected.

The bill’s provisions attempt to protect consumers by regulating lenders. Any business that permits payments in more than four installments or assesses late fees will be considered a lender. Of course, that applies to any small business that competes with big businesses by offering short-term credit to loyal customers.

Both business owners and customers may feel the pinch when the bill goes into effect. Small businesses will be forced to use an approved bank to offer payment plans instead of just offering credit on their own. Owners will have to pay bank fees, and customers will run the risk of being denied credit.

This possibility has not gone unnoticed. A survey by the U.S. Chamber of Commerce has found that 57% of small business owners lack confidence in the financial reform legislation. In fact, they fear it will not prevent another financial industry meltdown.

According to U.S. Chamber of Commerce president Thomas J. Donahue, growth and jobs in small businesses will suffer when this bill is implemented. He views the increased costs of regulation and insurance as detrimental to the economy. As access to credit becomes more elusive, small businesses will have more difficulty growing.

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Political pundits are predicting heated congressional elections this November. Republican supporters are determined to retake both the Senate and the House on the coattails of growing skepticism and discontent among voters with the current administration. If the Republicans succeed in increasing their number of seats, small business owners can expect to see changes in major legislative issues that affect them.

Healthcare reform is a central target of Republican law makers. They have pledged to change the plan President Obama implemented. Small business owners who have been opposed to new requirements to offer healthcare coverage to employees may feel vindicated if the Republicans manage to repeal the healthcare bill.

Also at stake in the $30 billion proposal by President Obama to encourage lending to small businesses. The Small business Lending Fund Act was passed by the House of Representatives without any Republican support. Republicans are strongly opposed to the plan, which they say resembles the $700 billion Wall Street bailout. So, if the Republicans prevail, small firms will probably continue to have difficulty accessing credit from banks.

Despite his promotion of the Lending Fund Act, many small business owners have been unhappy with President Obama’s performance. The American Small Business League reported failures by the Obama Administration to effectively help small businesses. Among their complaints are the failure to stop the diversion of federal small business contracts to large corporations, the failure to allocate more stimulus funds to small businesses, and the failure to fund women-owned businesses.

Yet, given a Republican majority chances are these requests will fall flat. The GOP’s focus historically involves spending cuts and deficit reduction, rather than on stimulus payouts.

Regardless of which party triumphs in the coming elections, small business owners may have to accept several changes in the policies that impact their operations the most.

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Sources:

http://www.allbusiness.com

http://www.reuters.com/assets/

http://www.tnr.com/print/blog/jonathan-chait

http://www.economist.com

It’s well known that small retail businesses often struggle against their big corporate competitors. And with the rise of Internet-based retail, the economies of scale are tipping even more in favor of the mega firms that have the resources to invest and can offer a wide range of merchandise at cut-rate prices. But a new study by economists at the University of Chicago offers small business owners a ray of hope. It suggests that by providing niche goods or services, the smallest of businesses can not only survive, but thrive.

“E-Commerce and the Market Structure of Retail Industries” (Economic Journal, June 2010) examines how the marketplace has changed due to the internet. The researchers reviewed three aspects of commerce: prices, industry structure, and jobs.

As expected, all three arenas have changed in ways that support large firms. Customers who are savvy about price comparisons have caused retailers to drop prices in order to compete. Large firms have increased their numbers, while numerous small ones have seen their doors shut. Accordingly, employment rates have dropped within industries that gravitated toward online sales.

Fortunately, these changes do not spell doom for all small businesses. The study also found that informed consumers turn to retailers who best cater to their needs. By offering specialized or high quality goods and services and by focusing on good old fashioned customer service, small businesses can gain and hold on to a loyal customer-base.

E-commerce may squeeze out some small businesses, but it also offers unprecedented opportunity to create a niche and reach potential customers.

One of the positive outcomes of an economic slowdown is the innovation that can come out of it. As businesses big and small scramble to capture precious consumer turf, what has emerged is a bold, new attitude in business marketing. All the sluggish sales and depleted consumer confidence were no doubt the driving force behind a recent flurry of marketing promotions that are more creative and daring then ever. Here are a variety of examples of some of the most unusual and creative marketing campaigns over the past couple of years.

Guerrilla Marketing At Its Best

Guerrilla marketing thrives on the unexpected and unconventional, the goal being to create an impressionable, viral buzz.

Heineken Beer:

A prime example of a well executed guerilla marketing campaign is Heineken’s boldly staged fake event held on the same date and time of a UEFA Champions League match between AC Milan and Real Madrid on 21 October 2009. Instead of watching the soccer game, over a thousand unsuspecting people (from boyfriends to employees) were basically forced to go to a classical music concert.

And also from Heineken is the famous Walk-in Fridge commercial.

Simultaneously, some big Walk-in Fridge cardboard boxes were put on the streets of Amsterdam on garbage day, suggesting that the huge fridge was really for sale and that people were buying it.

Burger King -WhopperFace:

This one’s from Brazil, highlighting a more personalize approach to receiving your burger: you get what you want… with your face on it.

The Mini Vs Porsche:

The CEO of Mini challenged Porsche to a well-publicized race…

And here’s the result. Who was the true winner here? You decide.

Life in the Fast Lane with Volkswagon

Not to be outdone, Volkswagon also entered into the guerilla-marketing fray.

German Wings

This was filmed on an Easyjet flight- one of their biggest competitors- bemoaning the economy-minded service. Gotta love their guts.

Chubb Nord Alarm Safety Systems

Check out this persuasive direct mailing campaign

Confused.com- An ounce of prevention…

Environmentalists may have not appreciated this online insurance company’s stunt (unless biodegradable bubble wrap was used) but it definitely made an unavoidable impression.

And here is a collection of some of the best guerilla and ambient marketing schemes from around the world:

KitKat

TV Series Trueblood

“Ugly Betty”

Ibuprofin

Nivea

Barbeque Sales

 Campaign against gaffiti 

Charity

 Campaign against smoking

Copenhagen Zoo

Nikkon Cameras

Volkswagon

Rock radio station

Exterminators

Hair stylist

McDonalds

Whiteout

Fitness Company

Monday Hot Wings Promotion

The Discovery Channel

Don’t forget to brush your teeth…

Body piercing

Coca Cola New Grip Bottle

Buy better dog food, or else…

Lipton Tea

Golf GTI

Ikea

Other Notable Examples of Unconventional Marketing

Retail Stimulus

Aside from guerilla tactics, numerous businesses are choosing other forms of unconventional marketing. For example, with government incentives winding down, some US retail chain stores are offering special discounts and unprecedented large-scale loans to get business rolling.

Sam’s Club, Target and Toys “R” Us are trying to regenerate sluggish sales via unconventional promotions. With the cooperation of the SBA, Wal-Mart’s Sam’s Club is about to launch a program that will offer shoppers loans of up to $25,000. Toys “R” Us is about to kick off a holiday fund program which augments shoppers’ savings, and for a cent or at no cost, Office Depot is giving away office products. Not to be left behind, Target will grant its credit card holders 5% discounts.

Target Bullseye Gives Campaign

Some businesses are taking a more philantrophic route. Retail chain Target gives a whopping 5% percent of its income to charity. In May of 2009, it allocated these funds to charities via its “Bullseye Gives” campaign on Facebook. The company announced that it would dole out the money – which totals about $3 million every week – to charities that were selected by Facebook users.

Ikea’s Facebook Furniture Giveaway

At the end of last year, Ikea chose to harness the power and reach of the social media mega site, Facebook, to promote a new store in Malmo, Sweden. In the campaign they created a Facebook profile for store manager Gordon Gustavsson. They uploaded images of furnished and decorated showrooms to his photo album and promoted a photo tagging giveaway. The first person to tag an object got to take it home. The enthusiasm knew no bounds – users embedded the link on their profiles, with their newsfeeds stoking the viral epidemic. Ikea may have given away a couple thousand dollars of merchandise, but it also successfully advertised the opening of their newest store and generated worldwide recognition for their brand.

All in all, marketing efforts in the past few years have become increasingly out-of-the-box for obvious reasons: When it comes to fighting the aftershocks of an economic earthquake, conventional just doesn’t cut it.

Sources:

http://blogof.francescomugnai.com/2009/11/the-80-best-guerrilla-marketing-ideas-ive-ever-seen/

http://blogof.francescomugnai.com/2009/11/the-80-best-guerrilla-marketing-ideas-ive-ever-seen/

http://weburbanist.com/2010/01/13/guerilla-marketing-22-ads-from-bizarre-to-brilliant/

http://weburbanist.com/2010/01/13/guerilla-marketing-22-ads-from-bizarre-to-brilliant//

http://weburbanist.com/2010/01/13/guerilla-marketing-22-ads-from-bizarre-to-brilliant/

 According to the Discover Small Business Watch, small business owners are experiencing cash flow problems, leading to reduced economic confidence. Business owners’ economic confidence decreased in June. Previously, it had risen for two consecutive months.

More than half of all small business owners said they feel the economy is getting worse. Reflecting this sentiment, a full 51% reported cash flow problems. As a result, they had trouble making payroll and paying vendors. Business development suffered, as well with 43% of small business owners reporting that they had planned cutbacks in advertising and inventory.

Current events are contributing to business problems, according to many surveyed: 51% blamed the stock market for their troubles, 40% of small business owners sited that Europe’s debt crisis is having long-reaching effects, causing their businesses to falter., and 30% believe the Gulf oil spill has been negatively influencing commerce.

American business owners remain optimistic, however with 53% of respondents reporting that would they not take a job working for someone else, even if they were offered more money. Nevertheless, 40% of small business owners have considered altering their business model or switching their line of business. The main challenges they cite are government policies and regulations, and finding new business.