Today’s roundup starts with news that ‘cash mobs’ are helping small businesses and includes an article on how Rolex is suing a small deli in New York. Extra bonus: how to deal with shaky customer relationships.
Here’s a reason to fall in love with social media. As Emily Maltby of The Wall Street Journal writes, so-called ‘cash mobs’ are popping up all over the country for one reason: to help local, small businesses. How does it work? Random people in various cities recruit others to spend at a singular small business all on the same day. The result: a great influx of cash for one business and a boost to a local economy. So far, ‘cash mobs’ have been seen in more than 20 cities nationwide. Get on Facebook and Twitter and start a ‘cash mob’ in your city today.
Starting this Sunday, small business owners will need to watch their pennies regarding new purchases. That’s because, as Cyndia Zwahlen of Los Angeles Times writes, businesses will be only allowed to deduct $125,000 in new equipment—a major drop from this year’s allowance of $500,000. In addition, SBOs in California will not be able to check credit reports on employees.
Here’s a lesson: never name your business after an established brand. As Janean Chun of The Huffington Post writes, Sawqu Ali is learning this the hard way. Ali is owner of Rolex Deli, a sandwich shop in Fort Greene, New York, and is being sued by Rolex (the watch brand) for trademark infringement. He’s absolutely crestfallen about it. He says he will go into more debt because of the suit and is enlisting a lawyer for help in the matter.
Think all the talk about the Postal Service cutting business (and Saturday deliveries) won’t affect your small business? Think again. As Karen E. Klein of Bloomberg Businessweek writes, cuts are slated to hurt solopreneurs the most—specially those that use flat-rate shipping and bulk shipping as big parts of their business. If that’s you, build a cushion into order delivery estimates.
Jimmy Stewart’s portrayal of George Bailey in It’s A Wonderful Life didn’t just make for good TV. As written on Small Business Trends, the iconic film also embedded many small business lessons in its storyline. Among them: focus on your priorities, accept some failure and make sure your business has heart.
Forget the 2007 glory days of effortlessly high sales and spend-happy clients. As Patricia Sigmon writes on Small Business Daily, today business owners need to acclimate to the ‘new normal’ of a post-recession economy. How can you do this? First, fire your worst clients—they’re weighing you down. Next, reward your best clients. Third, make sure to pay yourself (regardless of your profit margin).
What if you work with a client for years and all of sudden the relationship turns sour? As Michael Kaleihini writes on Entrepreneur, small business owners need to evaluate whether or not a client is worth keeping in the first place. Try not to focus just on revenue coming in, but on the relationship and its long-term value to your business.