10 Facebook Tips for Small Businesses

Want to Facebook, but don't know how to make it work for your small business? Glen Stansberry, Creativity Sparker, from Wise Bread has 10 tips to get you started. For the full text, go to 10 Superb Ways For A Small Business To Friend Facebook.


June 21, 2011 (Excerpt)
Love it or hate it, Facebook has proven to be a major source of traffic and income for small business websites. A recent study showed that Facebook shares are worth almost three times as much as a tweet. And these nuggets from this compelling infographic ought to give a good indication as to how important Facebook has become to e-commerce in general:

•90 percent of consumers trust recommendations from people they know
•67 percent spend more online after recommendations.
If your small business is selling products online, then Facebook can be a fantastic way to add social proof and find more leads. Here are a few ways to snag some of that Facebook traffic for your small business website.

How to Lose a Customer

Recently, I attempted to purchase a dress from a maternity store. Before I could give them my money, they required my due date, e-mail, mailing address, phone number and wanted to know if I had other children. I laughed out loud, but the woman’s puckered face quickly showed she wasn’t joking. I explained that I didn’t want to be put on a mailing list and thought it was beyond invasive. She “patiently” explained it was necessary in case of returns.

They lost me forever at that moment. Not only did I give them fake information, but I was extremely offended that the store I was paying would require all this information. I would never go back in there, nor will I ever purchase anything for any of my friends/family again. I also spread the word about this outrageous privacy invasion, which turned off other mothers to be (a.k.a. their customers).

Requiring information from customers only works if they see an overt benefit—something that will make them want to hand over those treasured nuggets of marketing gold. Not only did they ask about my children, but I was in essence paying to be harassed. The only benefits I got were a cute, but probably over-priced, dress and a red face from anger.

That’s the key lesson for marketers and businesses. People are willing to let you into their lives and buying habits, but you need to reward them and slowly dip your toes into that pool. Plus, the bigger the prize, the more you will get from them. No one will give you their life story for a throwaway trinket like a pen or key chain. And the more the customer feels forced to give information, the less likely it will be valid or worth the sales you just lost.

Will Facebook Fade?

There’s a rumor floating around that Facebook will go public in the first quarter of 2012. This has caused some to speculate whether it’s a wise move to invest, considering it could burn bright then fade fast like MySpace. But just like we now Google things and a Kleenex is commonly misused term instead of the word tissue, Facebook has ingrained itself deeply into the fabric of our culture.

Businesses are hopping on, teachers are sending out assignments through it, and proud parents and grandparents can share photos. The platform is continually evolving and users are continuing to evolve in the way they utilize it.

Recently, SmartPulse did a “non-scientific poll” that asked, “Who do you think has benefited from social media engagement the most?” Results were interesting to say the least and obviously didn’t just relate to FB.

• Business-to-consumer companies – 32.08%
• Celebrities – 31.13%
• Media – 10.38%
• Not-for-profit organizations – 9.91%
• All have equally benefited – 6.60%
• Politicians/governments – 5.19%
• Business-to-business companies – 2.83%
• Some other group – 1.89%

But it does speak to the fact that if you know how to use it correctly, FB and other social media outlets can be your friend and a powerful sales tool. Look at the Old Spice resurgence or Betty White’s thunderbolt back to fame on the back of a 'lil old Snickers commercial.

Just make sure you know what you are doing and consider your audience. Once something is out there, it’s out there and can go viral in a heartbeat. Just ask some of the recent blushing and scandalized public figures how they feel about social media’s reaches.

Rewards of Owning Your Own Business

Recessions are a time when many workers consider going into business for themselves. Some of the most successful businesses — Burger King, FedEx and Microsoft to name a few— were formed by individuals looking for the type of freedom provided by self-employment. Self-employment can translate into many financial and psychological rewards:

Flexibility: Setting your own hours and work space is one advantage. There is no time card to punch or tiny cubicle to report to everyday. Vacation or sick time is at your discretion. Gone are the days of a dress shirt and tie. If the business requires no “face time” with customers, casual dress or even pajamas are acceptable. Lastly, entrepreneurs have the ability to directly
determine the value of their work or products, by setting their own fees, rates and prices.

Creativity: As your own boss, you don’t have to answer to a supervisor or colleagues’ opinions on creative matters. Some of the most creative ideas were born when people no longer felt restricted or stifled by traditional corporate environments.

Tax benefits: You get to deduct half of your self-employment taxes from your net income. Essentially, the IRS treats the self-employment tax as a business expense and allows you to deduct it accordingly. Additionally, you only incur self-employment tax on your net business income, or what's left over after you subtract your business expenses.

The sky’s the limit: The self-employed essentially have an unlimited earning potential rather than a set salary. It's all dependent on the work they put in. In short, the businesses’ profit goes straight in your wallet.

Job security: Self-employment limits the fear of layoffs, downsizing or firing. Instead of worrying about the status of your job, you can focus more on getting the job done.

In short, self-employment has its perks. With that being said, it’s no surprise the number of self-employed, “free agents” in the U.S. is on the rise.

Watch Out for These 10 Common Small Business Mistakes

Opening a new business is an exhilarating and possibly daunting process. While there are countless rewards, financial and personal independence being at the top, there are common pitfalls that threaten every business owner. Below are 10 mistakes new business owners can make and how to avoid them.

1. Not knowing enough about the business you’re going into—It seems silly to say go in with your eyes open, but it does bear repeating. Don’t let your excitement be your downfall.

2. Not protecting your personal assets—You will be pouring your heart and soul into a new business, but don’t let it ruin your life or endanger your home. Consider setting up an LLC (limited liability corporation), get advice from other small business owners, and think about contacting a lawyer.

3. Not creating a unique, value-driven business—Start off on the right foot. If your business mirrors others too closely, there will be no overt reason for customers to choose you.

4. Not developing a business plan—Your business plan is the road map to where you want to go and how to get there. Do your research, get suggestions from your local small business association (SBA), or try the U.S. SBA (www.sba.gov). They’ll keep you from reinventing the wheel, and will often have information on loans/grants and one-on-one counseling.

5. Not setting the right price—Price drives the decision of whether customers contact you or not. Work with your suppliers for suggestions, look at other companies, and do your research.

6. Not changing or adapting as you go—Even though you have a road map, sometimes you need to ask for directions along the way or take a detour. Continually evaluate your business.

7. Not budgeting correctly or planning on making money right away—Don’t put all your eggs in one basket. Have another source of income or some cushion and be realistic in your expectations.

8. Not marketing consistently—Don’t lose the momentum after one good campaign. Develop a plan and stick to it.

9. Not investing in people—Don’t get caught up in the bells and whistles of the latest gadgets or schemes. Invest in quality employees. They'll always drive your business and be the face of your company.

10. Not focusing on the big picture—Don’t get overwhelmed by the day-to-day necessities. Take a step back and keep track of your priorities. Management by crisis only leads to more chaos.

Offbeat Ideas Create Sales

If you’re ever in a rut on how to promote your business or new items to attract customers, start brainstorming completely off-the-wall ideas. Sometimes it’s the most outlandish ideas that grab the most attention and become instant money-makers.

For example, the ice cream world is constantly reinventing itself with interesting and sometimes bizarre flavor combinations. Maggie Moo’s has Buttered Popcorn and Caramel Corn ice creams, and you can bite into Chicken Wing ice cream in Nagoya, Japan. Yet, it’s those unusual combinations that bring in the curious and can inspire repeat customers.

Translate this concept to products, marketing, and sales tactics. Start small with catchy, themed sales events or sales jingles. Test the waters with limited-time offers for unique products or deals. Limited-time offers are also a great way to save costs, and you can create customer buy-in for increased sales by letting them vote on concepts or suggest new topics/products.

Or, if it works for your market, try something very different that will be picked up by the press. You can even look at national campaigns and tailor them on a smaller scale to your business. Think about Nathan’s Famous and its hot dog eating competition. Who would have ever guessed America or the world would turn competitive eating into a recognized sport? Yet, in 2010 Nathan’s celebrated the 95th anniversary of the contest and 40,000 people attended the event—that’s not including the millions of impressions created by advertising leading up to it, the coverage after it, and the additional 1.677 million viewers who watched it live on ESPN.

Just remember the world is full of people who are bored with traditional outlets and like to be surprised. Today’s offbeat idea may be the peanut butter and jelly sandwich for future generations of paying customers.