Social Media is all the Rage - Are you Tweeting?

It seems that you can't go online without being inundated by all the social media hype these days. It is certainly the rage among marketers and small business owners who are looking for a way to get their name out there. The biggest benefit of social media is that it costs nothing - except time.

The problem - at least in my opinion - is that there are so many conflicting and confusing messages about how social media should be used. While most of us understand that we need to be involved in social media - the hard part is getting started. Once you have started - how do you maintain it?

The best advice that I've heard is to use social media as a tool to let prospects know that you are an expert in your industry. I think many times people approach social media as an advertising tool. Advertising and marketing messages are everywhere and the last thing most of us want to see or hear is another advertisement.

Instead, use sites like Twitter, Facebook, LinkedIn, Yelp and so many others as a way to share advice, post links to relevant or helpful articles within your industry, and most importantly - start a conversation. The more people see you as an expert, the more likely they are to think of you when your service is needed.

Referral Programs Are a Necessity

Does your business have a referral program in place? Are you doing any kind of referral marketing? If not, you probably should consider putting something in place.

Why? Because referrals are the best, most cost-effective and simplest new customers to get. If you don't have a referral program in place than you're missing out on new business. If your customers/clients are truly happy with the product or service you're providing, than referrals should come to you without you even asking.

After doing some research this week for a different project, I came across some best practices in referral marketing. Here are a couple of ideas that are inexpensive and effective:

• Give three business cards to every client you have. Ask them to hand your cards out to prospects who could benefit from your product or service.
• Add a line to your email signatures with a link to your referral program or just add a statement about your program.
  
• If you use social media sites such as Facebook or LinkedIn, add your referral program to your signature or post.
• Most importantly - Ask! If you don't ask, you won't get the referral.

Your referral program doesn't have to be anything fancy or formal, but I would advise implementing a couple of tactics that at least inform your audience that you are looking for new business.

Constructing an incentive into your referral program is completely up to you. In some industries a monetary gift for a referral can be seen as inappropriate or unnecessary. While others - specifically in the B2C world - can be exactly what is needed to really drive in new referrals.

Hopefully you've picked up a couple of ideas that you can implement into your business right away.

Small Business Funds - Drying Up Again?

When congress passed the recovery act in 2009, it allowed the SBA to back bank loans and insured them up to 90% in the event of a default. Since that program was instituted, the SBA backed over 12,000 loans worth about $3 Million. The program obviously worked, and in fact, was re-instituted several times after the initial allotted money ran out. The program once again ran out of money and stopped May 31.

Now, as the country is on the verge of a double-dip recession, reports show that the number of business loans fell dramatically in June. If the country does fall into another recession, and banks continue to be stingy on lending - where does that leave the small business owner in need of funding?

With the possibility of another recession looming on the horizon this is certainly not news that anyone wants to hear. Fortunately, it appears that help may be on the way in some form of government backed program.

There is currently legislature in front of congress that will extend the SBA's program through the end of December. Just a few days ago the House of Representatives passed a small business funding bill - worth $30 billion - that would allow banks will less than $10 billion in assets to invest in small businesses. If the bill passes it would reward lenders with lower dividend rates paid to the government.

There are even more creative lending options out there such as JP Morgan's offer to cut the interest rate by half of a percent on a business line of credit for each new hire the business makes. Not only is the lower interest rate an incentive to the business owner, but it could also help the unemployment rate.

If you find yourself in a position that requires a business loan, do your research and find a program that will benefit you the most. The programs are out there - you just have to look.