In response to 2008’s failure on Wall Street, President Obama recently signed a bill that will result in the largest overhaul of financial reform since the Great Depression.  Entitled, the Dodd-Frank Wall Street Reform and Consumer Protection Act, this legislation will set new restrictions on banks, stopping them from making risky investments with consumer dollars, and in turn becoming “too big to fail.”

This legislation comes at a time when consumers are skeptical of Wall Street and government in general.  By passing the bill, the U.S. government is making a statement that they will no longer allow the banking industry to make faulty investments with consumers’ hard earned money and hopefully restoring trust.  But what does this legislation really mean for small businesses?

With significant changes and restrictions on the credit card industry, some believe that this bill may hurt small businesses.  Since most financial institutions’ capital will drop with new investment restrictions, many will have much less money to lend, making it harder for entrepreneurs and small business to get the funding they need to succeed.

While it is no secret that this new legislation will result in fewer business loans, at least we can count on the loans being given to sensible, responsible business owners that will no doubt equate in successful ventures.  After all, that is the responsibility of a bank.  At any rate, it is important for all business owners, big and small, to understand what this new reform entails, and what it means for your business.

We found a great article which outlines the new reform well.  Click here to check it out. (http://bit.ly/dBebPj)

With most small businesses in the US being family-owned, how important is succession planning to these enterprises? Is it relevant or necessary to them at all?

But just because a business is essentially mom-and-pop, it doesn’t stop it from creating a business policy or plan. A business may be small, but that shouldn’t stop entrepreneurs from running it professionally along the lines of big business.  Because, if you keep thinking small, you stand the risk of always being that way.

So, in much the same way, even family-owned small businesses can benefit from succession planning. True, many may not find it comfortable to think of a time when they’re not going to be around, to consider the consequences of ageing, disease, and death.

Also, you may think that as you have always just wanted to sell out the business, you don’t really need to bother with who’s going to take over. But then, consider the fact that with baby boomers retiring at an accelerating rate, the number of small businesses being put up on sale is increasing as we speak. So, selling your business may not be a breeze, and until you sell it, you need to tend to it.

Again, small business owners are often caught up with the daily running of the business and meeting profit targets and so on, but the fact that you have put in so much hard work and time into building your business actually strengths the case for creating a succession plan. After all, you don’t want your lifetime achievement to fizzle away the moment you’re gone, do you? So, plan you must for the following reasons:

Firstly, and this one applies especially if yours is a family-run business, a succession plan ensures there is no bad blood or discord in the family.

Secondly, it ensures that there are no legal complications.

Thirdly, the fact that you have a succession plan in place indicates that you have a clear view of your business’ future. This brings some sort of a predictability or stability in your employees’ minds, rather than leave them guessing about what’s going to happen to the business once you’re not there on the scene.

But to enable a smooth transition, merely naming a successor won’t do and that is not what succession planning is about either.

Ideally, the process of succession planning takes at least five years, so that you can zero in on your successor, work with them and train them, and ensure that the transition is going to be hiccup-free.

Family-run businesses should take care that the choice of a successor is driven more by practical considerations rather than emotional thinking. For instance, it may be someone else in the family and not your first-born who has put in more time and effort in working in the business and understanding it. So, naturally he/she is a more deserving candidate than your child.

People, who are passionate about their companies, will see the point of succession planning. You don’t want to leave it direction-less, in a state of anarchy. You created it, and it’s up to you, and also your responsibility to decide its fate.

Last Monday, something strange happened in Manhattan. A bank from one of the poor countries in the world opened a branch in the Wall Street bankers’ neighborhood and said it would provide banking for the unbanked, namely small and micro businesses.

Well, the last sentence was partly built for effect. Grameen America’s Manhattan branch is not its first in the US: in fact, it is its third in as many years.

Since 2008 when it started operations in the New York City borough of Queens, Grameen America has lent more than $6 million to 2,800 borrowers, mainly women, living below the US poverty line. These borrowers, who used the money to invest in their small businesses, have, in turn, deposited savings of more than $350,000.

At the inauguration of the Manhattan branch, Nobel-laureate and founder of Grameen Bank, Mohammed Yunus said, “New York City is the world capital of banking. They do the banking for the whole world, but they don’t do banking for their neighbors, and we’re here to show there’s nothing wrong with doing banking with neighbors.”

I found myself thinking, ‘How true!’ Who would have thought Grameen would have had any takers in the capitalist heaven of the world, in the land of opportunity where businesses thrived on sheer merit (and collaterals).

But then, if you take a closer look, Grameen’s transition from Bangladesh to Brooklyn seems very logical and the timing just right. When it started in 1976 in Bangladesh, it challenged traditional banking views on who was creditworthy and who wasn’t. Yunus believed everyone is creditworthy, especially the poor of Bangladesh who were bearing the burden of highly expensive loans from moneylenders and yet surviving in some way.

Fast forward to 2008 and change locations to New York and Yunus has to defend his theory all over again. Banks in the US are very wary of lending to small businesses, now more than ever before, never mind that it was the former who brought on the current credit crisis and that it is the latter who did comparably well in the recession and are, in fact, America’s best bet today.

Small businesses, the big bankers say, are risky to lend to, despite a federal subsidy and, reciprocally enough, small businesses think the government should have handed them the rescue package directly rather than channel it through unwilling banks. So, there is a relationship of distrust now between the two – something America could have very well done without at this juncture.

Contrast this with the community feeling which Grameen builds its business logic on. Grameen is not a charity. It doesn’t just give away money to people. It lends small amounts – the maximum first-time loan is of $1,500 – to people who want to start a business, however small, and have the necessary skills. And, peer pressure is about the only collateral that the bank takes advantage of. The system has worked beautifully in Bangladesh, now it’s Brooklyn’s small businesses’ turn. I have a good feeling about this.

This past week I participated in a Yoga Lunch and Learn through one of my corporate clients here in Columbia. It took about two hours out of my day and just a little work beforehand and the result was nearly an hour of free marketing time to clients that wanted to be there. It’s a great opportunity to get the word out about both what you do and why you do it better than your competitors. Selling yourself becomes a lot easier when you truly believe in what you’re selling. For those of you looking to expand the wellness community in your neck of the woods, consider a Lunch and Learn.

Putting Together an Effective Lunch and Learn

1. Finding a Venue

Corporations and larger businesses are always looking for Lunch and Learn ideas and free help. The easiest way to get started is to contact the human resource department in medium to large businesses in your town or city. Your best bet is businesses where there in an emphasis on work/life wellness. I work a lot with our zoo, a large employer that works hard to retain employees. Also consider law firms, health insurance companies, government offices, hospitals, and other corporations. Get creative and you’ll be surprised how many people are interested. Have a plan of what you’re going to do when you talk to the human resource department and talk about how what you do would benefit their employees.

2. Planning the Lunch and Learn

You’ll usually get about 1 hour to speak during the Lunch and Learn. Realize that people will drop in and out throughout the hour depending on work obligations. It’s best to give late comers a chance to easily slip in while you’re getting started, so you’ll definitely want to start by talking for a bit. Whether you’re a massage therapist, acupuncturist, yoga teacher, trainer, nutritionist, or any other kind of wellness practitioner, the bare bones outline of a Lunch and Learn remains the same.

Lunch and Learn Outline

A. Introduce Yourself

Talk about yourself and your experience within your field. Give a short synopsis as to how you came to the field and what it has done for your life. Talk a bit about your business within the community and how you can help them. Discuss the health benefits of what you do and what particular ailments can be helped.

B. Hands On Portion

This is where you give participants a hands on idea of what you do. If you’re a yoga teacher you could do some chair yoga. Whatever your field, you’ll need to find a way to let the group experience it. Maybe provide five minute chair massages or bring in a few assistants and do a few people at a time. Get creative here and find ways to show off the most appealing parts of your business.

C. Relaxation Closing

A huge part of holistic wellness is the reduction of stress. No matter what you do, it’s important. If you want to send participants off on a good note, leave them feeling incredibly relaxed and wonderful. How you end a session is so important to gaining clients. Consider closing with a relaxation session. While the class is seated walk them through a guided meditation. I like to start from the feet and walk through relaxing every part of the body while following the breath and watching the thoughts. But make it your own.

3. Don’t Forget the Treats and Such

Draw participants into your class by providing treats. Consider making a healthy dessert or snack for students to enjoy. Usually you don’t have to provide the lunches for Lunch and Learns (though you should ask to make sure) but a treat is always welcomed. Make sure to bring price lists, business cards, schedules, coupons, and whatever other marketing brochures that you have to pass out.

More on Wellness Small Business:
Social Responsibility of Small Businesses
Don’t Advertise Like Big Business: Make Sure Your Wellness Business is Getting The Most Bang For Its Buck
Branding Your Wellness Business

As the ‘shifting the blame’ game still goes on over the Gulf oil spill, it got me thinking about corporate social responsibility (CSR) and small businesses. My first thought was if the term can be even applied to small businesses, as, by definition, it was invented for big companies.

But irrespective of the term used, small businesses undeniably have an obligation towards the community they derive their profits from. This may not be a much discussed topic, simply because it’s more glamorous to collar the big boys. But, considering that more than 90% of America’s business is small (and so it is of the world), there’s no letting off small-to-medium businesses, either.

And, I’m not just talking about environmental concerns here, though they are a big part of CSR, but also about the level of participation or interaction in general that the small business has with the community.

For instance, Delaware’s largest shopping center recently announced that from 11 July, it wouldn’t allow teens inside unless accompanied by an adult over 21 years of age. Mall officials said they were doing this because teens just got together there in large groups and, ahem, did hardly any shopping. Of course, Christiana mall is not the only one or the first to do this, but it’s definitely the one to have been struck back the hardest.

The teeming teens got together on Facebook to boycott the mall and they seem to have a growing fan following.

Several thoughts rush up to me:

1. Can a business remain insulated and hope to thrive? Does it have any duty to get involved with the immediate community it serves?
2. Is the Christiana mall case a particular instance of a business getting too popular for its own good?
3. Could the mall have done better by conducting a survey of the percentage of senior shoppers staying away from the mall on weekend nights because they wanted to avoid the teen crowd?

The way I look at this is banning teens was definitely bad PR. Things could have been handled more creatively, and perhaps, more profitably, like organizing rock concerts at weekends, for which they’d have to pay to get in, or create opportunities for impromptu purchases at the entry and exit points. (The rock concert option would not have helped the case for seniors at all though.) After all, today’s noisy teens are tomorrow’s adults with considerable purchasing power. Let’s also not forget that it is much easier for today’s consumer to be vocal and very good at spreading the word – good or bad.

The bigger point is, where do you draw the line between ‘Yes, this is good for my business. I’ll do it,’ and ‘My customers/the community may like this, but it may not necessarily be good for the bottomline. So I’ll pass.’

And, coming back to the environmental responsibility that businesses should have or claim to have, the Six Sins of Greenwashing is a must read. The companies who don’t make tall, green claims seem to be far more honest than the ones who put out half-truths.

Small wellness businesses need to think long and hard about how they spend they’re hard earned dough. You want to draw customers into the business to raise revenue but at the same time, it’s important to avoid spending too much money on advertising at first. It’s for that reason that you need to adapt your advertising budget to fit a smaller business. Your needs are different than a large business and you must adjust accordingly.

Here are some tips for drawing a crowd without spending too much revenue:

1. Offer Incentives in All the Advertising That You Do

Advertising is important. In my home town of Columbia we have a holistic magazine that many wellness businesses advertise in. The key is to stick out and one of the best ways to do that is to offer an incentive for customers to try out your business. For example, one massage therapist offers the first 1 hour massage for $40, a low enough price that most anyone can afford to come in and try it. Another idea is to offer a free trial visit if you’re a wellness business so that the customer can make sure that they like the services before investing too much money. These are all great ideas but it’s also important to carry through on the deal. Even if the initial visit is free, the customer needs to be treated as if the service was full price or the point of the deal is lost.

2. Utilize the Customers That You Already Have

Your customers already know and trust you so you want to make sure that you appeal to them. Create special deals for your regulars to keep them coming back. Consider presenting new products and services to them first. For example, if you’re starting a new type of massage therapy, present it to your oldest clients first and get them excited about the service. You could also announce new holistic treatments or products at your yoga studio in this manner. Your regular customers are always the ones that will invest the most capitol in your business and they should be treated as such.

3. Newsletters Are Crucial

It’s important to use your newsletter to advertise whenever you can. Customers get excited about newsletters if you put interesting ideas in them and it’s a great way to promote your small business. Promote your e-mail newsletter on your blog and social media profiles. A monthly newsletter is one of the best ways to keep clients in the loop within their wellness community. But the problem with committing to doing a monthly newsletter is having the material necessary to fill the pages. It’s important to include information that will draw in the reader and keep them coming back for more knowledge. And while it’s important to include events, workshops, and schedules, additional information establishes your business as a resource.

Offer print out coupons and incentives in the newsletter. Interview your customers and put the interviews in the newsletter. Each month here at SimplifyThis we offer tips for what you can put into your newsletter if you run short of ideas so that you don’t start repeating yourself. Keep a sign-up sheet and a printout of your most recent newsletter issue near the cash register.

4. Offer Contests

If you have a yoga, pilates, or tai chi studio, offer challenges. If your students come a certain amount of times in a month they get a week free. Or even a certain amount of times in two months and they get two weeks free. This is especially helpful during the months of the year that you know business is light. If you have a wellness business like acupuncture, massage, or personal training, you can offer a drawing for free services where customers read your newsletter and enter through your website. Contests are a great way to keep customers interested.

More on Wellness Small Business:
Branding Your Wellness Business
5 Must Know Tips for Building Your Wellness Small Business
Business blogs for yoga studios, massage therapists, and freelancers – Our picks

Your brand is what carries your wellness business through hard times. It’s what makes or breaks your business and what separates you from your competitors. It takes a lot of hard work to build your brand and even more to maintain your stature within the wellness community.

Here are some simple tips for building your wellness brand:

1. What’s in a name?

For the most part, wellness small businesses are regional. For this reason it’s really important to advertise your wellness business through signage and a strong name. It’s important to choose a name that appeals to you but also appeals to the community that you live in. Research names online to find one that you think you will be able to stick with for a long time. This way you can build name recognition. According to small business guru Susan Ward, the name should be easy to spell and remember. The name should also have a positive psychological message. When a potential customer hears the name it should make them want to visit. Here are some truly effective local holistic business names in my community:

Serenity Now Yoga Studio
Tranquil Moments Spa
Urban Nirvana Spa
Om Body Holistic Healing

All of these names make you want to try the services so that you can enjoy that serenity now or those tranquil moments. Sorry to be cheesy, but you get the point. That brings me to another point regarding the name. Ensure that you don’t copy someone else’s. You don’t want to work to build name recognition and then later have it all taken away. Do your research online.

2. Choose Effective Lettering

Make sure that you choose lettering that you like but at the same time is easy to work with. What do I mean by that? Choose writing that’s easy to read so that your customers can always read your name no matter how small or how big. Choose text that’s easy to replicate and available in most computer programs if you happen to get a new computer. You want to be as consistent as possible with your lettering including your signage outside your business, your cards, schedules, price list, posters, etc. You get the point. In order to build your brand you have to choose lettering that’s artistically appealing but at the same time consistent. According to Yoga Baron, lettering is much more important than having a separate logo.

3. Your Brand is More Than a Name

While the name and the lettering are very important, your brand is much more than your name. Your brand conveys your business’s key values. The best brands, according to marketing experts, highlight what customers already know about the company.

“You don’t really own your brand. Your customers own your brand,” said Brenda Alling, director of the marketing and communications department at Washington State University-Vancouver.

What does this mean for your business? Find out what people like the most about your business and allow that to be your brand. If you don’t know yet because you’re just getting started, brainstorm what you would like to be known for. If you’re an athletic trainer, do you always produce results? Is your spa a respite within a busy day? Are you a massage therapist that focuses more on pain management rather than relaxation? Is your yoga studio a place where students come to sweat and detox or is it more of a moving meditation practice? Think long and hard about what you want to be known for and then spread the message far and wide. As with your name, your brand must be consistent. Put it in your bio or mission statement on your website. Tell your customers your mission. Post it in the bathrooms and at the entrance. Put it on your Facebook, Twitter, and MySpace pages.

4. Keep on Doing What You’re Doing

Once you have your brand the best way to build it is to keep on doing what you’re doing. Live up to customer expectations time and time again. Make sure all your employees know that Serenity Now Yoga is all about serenity. No cell phones, no gossip, and no anger. It’s a quiet place where your customers can depend on finding serenity. At Gentle Touch Massage customers can be sure that you won’t be beating them up on the massage table and leaving them sore afterward. Whatever you do best, do it time and time again.

For a holistic practitioner, whether you specialize in massage, yoga, acupuncture, nutrition, or any other form of alternative wellness, the most difficult initial endeavor is generating clients. It takes hard work and commitment to your art to grow your small business and gain a following.

5 Tips for Building Your Holistic Small Business

1. Join Your Affiliated Professional Association

Professional associations are a great place to learn more about your trade. Becoming a member of your affiliated professional association allows you to network with other practitioners and learn how they’re building their business and where the majority of their clients are coming from. You can learn about the hottest new treatments and news within your field. It also helps to build your resume when you’re a part of your field’s professional association. It’s also very important to be certified within your industry and this is usually closely affiliated with your trade group.

Helpful Professional Associations within Your Field

The American Massage Therapy Association
Yoga Alliance
The American Association of Acupuncture and Oriental Medicine
American Alternative Medicine Association
The American Dietetic Association
Nutritional Therapy Association

2. Network within Your Small Wellness Community

In order to be a viable part of the alternative wellness industry, it’s important to surround yourself with a community of faithful clients. For example, if you’re a massage therapist, acupuncturist, Reiki master, or other alternative medicine practitioner, consider building a relationship with a yoga or pilates studio. This way you can become the recommended treatment for a host of ailments. When a yoga student complains about their sacroiliac joints giving them pain, a yoga teacher could recommend your massage studio for pain alleviation. Generally speaking, many yoga teachers are massage therapists as well because the fields are so closely connected. It’s also a great way to get the word out about your business.

3. Consider Starting Part Time and Building Into Full Time Work
I wrote about this with regards to massage therapy but it’s also true of other practitioners. Start by working part time in spas, hospitals, physical therapy centers, hotels, yoga studios, and chiropractors. From there, you can refer business and build a clientele. If you charge less working independently and do a really good job, you’re sure to gain a following of clients that will become your repeat customers.

4. Separate Yourself From the Crowd

There are a lot of individuals trying to do exactly what you’re doing so you need to find your niche. What makes your work so effective? Why should I go to you rather than another Reiki specialist? Find a treatment that you do that others don’t. Be the best deep tissue massage therapist for sports injuries. Be the holistic pet specialist that cures anxiety- ridden adopted pets. You can choose any number of avenues but the important thing is that you find a niche and be the best at it in your field.

5. Become a Social Media Guru

I’ve written before about the use of social media especially with regards to yoga, but this also holds true for any form of alternative medicine. Word of mouth has always been the most valuable asset for a successful business, and now thanks to modern technologies, more specifically, social media, word of mouth has expanded to the click of a button. Twitter and Facebook can be truly effective tools for spreading positive words about your work if used correctly.

While most of the developed countries are struggling to cope with large-scale layoffs, Germany has been actually busy creating more jobs for its people. An NYT blog puts this near-miraculous drop in Germany’s unemployment rate largely down to Kurzarbeit or short work.

Basically, what this means is that when business is slow, companies cut workers’ hours instead of firing them straightaway and the government makes up for some of the lost hours’ wages. Thus, it actually creates a sort of a win-win situation for everyone involved: the employees don’t lose their jobs and the company doesn’t have to go looking for skilled workers when the economy bounces back. Of course, it’s not as ideal a situation as full employment, but you know what I mean.

This got me thinking about whether such a practice could be adapted to the US small business scene at all and how it would work out. Small businesses were long thought to be more self-sustaining than their larger counterparts and though this is still largely true, they haven’t been spared of the bad times, either. Increasingly, they have had to let people go, too.

So, would Kurzarbeit work for smaller companies? What can it mean for them and their employees? Some thoughts:

Time-off for an overworked country: Americans are a notoriously overworked people and they could perhaps do with some extra hours to catch up with family and friends and also on the things generally squeezed out of busy work days. They could use the extra time to do some stress-busting activities like yoga, learn music, or read.

Time enough for another job: This directly contradicts what I have said above. But both of them do translate positively. If you are lucky enough to get another job, you have the chance to make up for the lost income from the first job; else you already know what you can do with your free time.

Need to plan ahead and come clean: Though Kurzarbeit sounds neat, actually implementing it may be dicey for small business owners. Unlike big corporations that have the resources to help them predict when the next surge in business may come (not that their predictions come true all the time), small businesses may have times when there’s some increase in activity followed immediately by a lull. How do employers cope with such volatility? Can they tell their employees that they will be needed for 20 hours this week and for 30 hours the next? Nah, we didn’t think so either: it’s quite guaranteed to rub staff the wrong way.

Will Uncle Sam pay? The concept of Kurzarbeit comes from a country with a much wider social security net than that of the US. One big reason why it worked in Germany is that the government made up for the lost wages. So, it follows that the success of Kurzarbeit in the US depends largely on whether we can hope for similar generosity from the government.

And, there’s no reason why the government won’t bite. After all, it already doles out unemployment benefits, doesn’t it? Bearing part-time wages may, in fact, be profitable to the government than paying for total unemployment.

Letting people go is often the last resort and if Kurzarbeit can at all be implemented, it will help entrepreneurs from burning a lot of bridges that they may find difficult to build later.