small business connections: marketing meets microfinancing-san francisco
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Small Business Connections: Social Media & the World of Online Reviews
2
Darnell Holloway
Manager of Business Outreach
@darnelljustin
#NYSEBigStartupwww.yelp.com/contact
The Social Media Landscape
Page 3
•Why is it important to have a strong online presence?
•What are the basics you should know about each major social media platform?
•How can you engage with existing customers and attract new business?
Now more than ever, consumers rely on online
reviews
Source: Search Engine Land Local Consumer Review Survey (2012)
85% of Consumers Use The Internet to Find Local Businesses
5
LinkedIn is B2B Social Networking
Marketing Your Professional Skills
Page 6
Connecting With Other Professionals
Page 7
A Few Success Stories
Page 8
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Develop a Following on Twitter
Anatomy of A Tweet
Page 10
The Sprinkles Example
Page 11
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Get “Likes” on Facebook
Create a Facebook Page for Your Business
Page 13
Food Porn
Page 14
Demographic Information
Page 15
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Use HootSuite To Streamline Your Efforts
Create A Free Account At:
www.hootsuite.com
Page 17
Aggregate Your Information
Page 18
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Yelp is Transactional Social Media
$864
Yelp by the Numbers
$864
• Yelp mobile app is used on 8.2 million unique mobile devices (Q2 2012)• Approximately 45% of all searches on Yelp come from our mobile apps.
• Every second, a consumer generated directions to or called a business from a Yelp app.•A photo was uploaded at least every 30 seconds from the Yelp app.
Yelp Mobile
Consumers on Yelp are Affluent, Educated Adults
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Unlock Your Free Tools
Page 24
Biz.yelp.com
Claim your page here
Claim your page here
Log in hereLog in here
Understanding Yelp Metrics & Free Tools
Improve your business page. That’s FREE.
Page 27
Connect With Your Customers. It’s FREE too!
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Myth: Most Yelp Reviews are Negative
Page 29
80% of Yelp Reviews are Three Stars or Higher
Negative reviews play an important role too• A variety of experiences are consistent with real life• You can’t please 100% of your customers 100% of the time
Page 30
Quality Control: Why Some Reviews
Come Down
All businesses are equal in this regard.(Advertisers & non-advertisers treated equally; filtered reviews viewable.)
Keeping Our Content Useful For Consumers
Page 31
“Yelp runs its reviews through an anti-fraud filter, with impressive results; every fake review the Texan bought was flagged by Yelp’s algorithms, though his fraudulent reviews remain up on the seven other sites.”
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Engage Diplomatically
Page 33
Don’t: Freak Out
Don’t: Freak Out
Tip #1:
Post Public Comments You Can Be Proud Of…
Tip #2: Say ‘Thank You’, State Your Policy & Respond
Promptly
Initial Review: 1 Star
Review Update: 3 Stars
Public Comment from Business Owner
Paid Upgrades: Search Advertising and on Business
Page
Removal of Competitor’s AdsRemoval of Competitor’s Ads
Page 37
Summary
1. The most successful businesses on Yelp focus on providing
great customer service, not soliciting reviews. Word of
mouth will take care of itself.
2. Don’t over-focus on any single review.
3. Start using Yelp’s FREE tools today (biz.yelp.com). Your business page will look better, and this can drive new customers.
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Darnell Holloway
Manager of Business Outreach
@darnelljustin
#NYSEBigStartupwww.yelp.com/contact
Biz.Yelp.Com
November 2012
Access to Capital
Tips for Getting Funding
In
Today’s Environment
Ham’n ’Eggs
The Pig is
Committed
The Chicken is
Involved
• The minute you begin spending your capital – you are a Pig
• Get money squared away before you start
• Patience at the beginning will save a lot of pain later on
Raising Capital
• Entrepreneurs are motivated by “vision ”
– Spend their “free cash” early– Run up credit card balances– Miss a few payments when lack of cash
flow– Lower their FICO scores– Get stuck in the middle of the process
“But I’m passionate about this”
Then they go looking for capital
This is too late
Undercapitalization is the
Number 1 reason
new companies fail
Failure results from
a lack of understanding of the
total costs associated with launching and running your business
Understand Total Costs
Don’t run out of gas!
Raise all you need before you start
Questions to answer before you start
• How much money do you need?
• What will you use it for?
• How long will it take you to break even?
• What type of capital are you looking for?
• How much control are you willing to give up?
What might you need
Capital For?
• 1X Start-up expenses
• Ongoing costs until revenue comes
• Permanent working capital
• Stocking inventory
• Purchase of machinery and equipment
• Leasehold improvements
• Purchase of business or franchise
• Acquisition or construction of commercial business property
Capital Needs
What banks are looking for
What are the
5 C’s of Credit?
1. Coverage
2. Capital
3. Capacity
4. Character
5. Collateral
What banks are looking for
What is Coverage?
• The basic question is: Will the business earn enough revenue to pay all the bills and still have money left over to service the loan and leave profit for the owner
• Prepare a cash flow statement showing how the loan can be repaid from the operations of the business
Coverage
Coverage
What does this mean?
1.25 X Coverage Ratio
Coverage Calculation
(Revenue – Expense – Owner Salary) /
Interest Payment
Must be at least
1.25 or more
What is Capital?
• No lender will lend all of the money needed to operate the business
• The business owner is expected to contribute some of the money- this is called equity or owners capital
• Expect to provide approximately one-third of the funds needed to start a new business
Capital
What is Capacity?
• Lenders will always look to see if the business is in a position to succeed
• The will look at track record of the owner and the management team
Capacity
Direct Industry Experience
• Must demonstrate experience in the industry for which you desire a loan
• “Caterers” can no longer open restaurants
• Get a partner
• Get a committed advisory board
What is Character?
• Lenders are very interested in the type of person you are
• They are lending you money and, of course want to be repaid
• Do you honor your agreements?
• Credit reports are the major source of information on character
Character
FICO
Fair Isaac Corporation (FICO)
Industry standard for financial institutions
Know your FICO score before you start
www.myfico.com
Free trial is all you need
Work with a professional credit counselor if your FICO score is
below 640
What is the purpose of Collateral?
The Onion 04.30.08 | Issue 44•18
• While cash-flow is the primary source of loan repayment, lenders also want a “back-up” or secondary source of repayment should anything go wrong
• Collateral is anything of value used as security for a loan
• Examples: real estate, bonds, inventory, equipment, accounts receivables
Collateral
• Your Feasible Business & Marketing Plan
• Secondary Source of Income• Number of years in business• Loan size relative to the company’s
sales• Type of business
What else do banks evaluate?
Hmmm that is a REALLYgood Business Plan!
Shop Around
Find a lender that likes your type and stage of business
But remember
Fund Raising is Tough!
A referral Qualitative advice on your plan Quantitative advice on how to change the
numerical assumptions Information on the competition VALUE FOR YOUR BUSINESS
Don’t get a “No” but get:
Work with an Expert
For consulting services go to: o www.sfsbdc.org, acsbdc.org, or svsbdc.orgo Click Red Button and complete the online form:
Business Advisor assigned or referral madeQuality, one-to-one confidential consultationAction plan and scope of workOn-going relationshipFollow-up: milestone reporting & success stories
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Contact:Paula Groves
paula@acsbdc.org(510) 208-0411
Thank You!
November 2012
Opportunity Fund
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Finding the appropriate lender for your type and stage of businessTerm Loan
Line of Credit
AR or PO Financing
Equipment
Tenant Improvement
Product Development
Merchant Cash Advance
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Basic Loan PackageCredit: application
Cash-flow:
Profit and Loss Statements Bank Statements
Balance sheet
AR and AP Debt Schedule
Assets
Guarantee and collateral
Non-business income
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Presenting Your StoryDoes the paperwork reflect everything in the business
Are there hidden strengths that are not apparent?
How do you prove your story versus what your document says
Character Based Lending
Does your story make sense?
Can we work around the gaps, challenges, and contradictions?
How can I defend your loan request?
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Opportunity Fund
Business Term Loans: $1,000 - $100,000
EasyPay Loan for retail businesses
Rates: 8-12%
Terms: up to 60 months
Requirements
12 months in business
Credit must be on-time
Cash-flow to support loan amount
Alex@opportunityfund.org Phone: 408.516.4708
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