Join us at America's Small Business Summit

Small business owners often ask us how Google Apps can help improve the way they work. We'll be sharing some answers in May when we join the U.S. Chamber of Commerce at this year's America's Small Business Summit.

Every day, thousands of businesses of all sizes sign up for Google Apps to help save money, reduce IT hassles, and improve collaboration. For small business owners, Google Apps provides a familiar set of easy-to-use Google business applications with minimal setup and maintenance costs, so that you can stay focused on more strategic elements of running your business.

We hope that you'll join us at this upcoming summit, and, in the meantime, we invite you to take a look at how a few small businesses are using Google Apps today to help improve they way they work.



Posted by Shaluinn Fullove, Google Apps team

'Tis the shopping season: introducing Google Commerce Search

As we approach the holidays, retailers are gearing up for the seasonal shopping traffic. While they can't, of course, control overall consumer spending, they can control the experience they provide to consumers – both in their brick-and-mortar stores and online.

To help accomplish this, today we're announcing a new product, Google Commerce Search, to power e-commerce and search for online stores.

In the online shopping world, search quality is a big factor in converting browsers to buyers, and in keeping customers happy. In fact, 43% of visitors to online retail sites say the very first thing they do is type the product name or product category into the search box (MarketingSherpa).

While most of the top retailers have a search engine on their websites, the speed and accuracy of search results can make a real difference in visitor engagement and conversion rates. Visitors spend an average of only 8 seconds before deciding whether or not to remain on a website (MarketingSherpa), so fast, accurate results can make a big difference in conversion.

That's why we're prioritizing speed and search quality for online stores with Google Commerce Search (GCS). GCS is a hosted, cloud-based offering that brings the relevancy, speed, and Google ease-of-use to e-commerce sites. Learn more here:

GCS also has a bunch of user-friendly features that make shopping on online stores easier, and search results more refined and accurate. Some of those features are:

• speed – GCS leverages Google's ultra fast platform, because it's hosted, providing sub-second response times to users.

• Google quality and ranking – GCS analyzes every item in the data feed using proprietary signals to determine its optimal placement in the result set, for more accurate query results for shoppers.

• parametric search and sorting – GCS allows users to refine or sort results by category, price, brand, or other attribute; this is fully-functional parametric search for e-stores.

• product boost and promotions – Retailers can boost the relevance of certain items, or highlight specific products during a sale, and cross-sell related products.

• spell check, stemming and synonyms – By leveraging the larger Google search engine, GCS can include these advanced search and synonym options, so the shopping experience is smoother for customers – even customers who mistype.

• fast deployment and scale – Since this is a cloud-based offering, GCS can be deployed in days and, because it's hosted on the Google platform, retailers can scale to meet their higher-demand periods like the holidays without worrying about slowdowns or spikes.

The hosted factor is a key feature in making GCS easy for administrators to use. Because there's no hardware (or software, servers, operating systems, cables, or any other equipment), admins can upload product information to Google Merchant Center and provide a few extra customization parameters – and Google Commerce Search utilizes that product feed to power their website store search.

Retailers can use the same feed to submit their products for indexing in Google Product Search as well, cutting down on time and tech costs.

With GCS, any e-commerce website can provide visitors with an improved shopping experience. That improvement can drive higher visitor-to-buyer conversion rates. While the conversion rates of most retailers is around 3% (Forrester), the best-performing sites have been able to achieve much higher conversion rates – even reaching double digits. For the top online retailers, improving the conversion rate from 3% to even 4% might actually mean improving online sales by 33% – a jump that can represent millions of extra dollars each month.

GCS frees online stores to do what they do best – create the product and promotional mix that their visitors need – and leaves Google to do what we do best: search. This helps retailers improve conversions and drive the sales that matter this holiday season – and, in fact, all year 'round.

Learn more about GCS at google.com/commercesearch.

Posted by Anna Bishop and Eric Larson, Google enterprise search team

Building your business around Google Docs

Editor's Note: Taylor McKnight is a co-founder of SCHED*, a web based scheduling and social networking application for conferences and festivals. He is currently a partner at The Hype Machine, a music blog aggregator and discovery tool for music fans and has worked extensively as a web developer at Gawker Media and The University of Florida. Taylor built SCHED* using Google Docs, part of the Google Apps suite of messaging and collaboration apps available in Education, Standard and Premier Editions.

We're sharing Taylor's story as an example of how Google Apps speeds innovation and makes it easy for good ideas to turn into real businesses, quickly, reliably, and without the need for investment in IT infrastructure.

I'm a rabid music fan, and friends often ask me for recommendations when it comes to festivals, bands, and other music-related events. SCHED* was born out of a desire to keep track of my favorite events.

SCHED* is a simple, social scheduling app that Chirag Mehta and I launched as an unofficial SXSW 2008 Schedule and which spread like wildfire among attendees. There were more than 4,000 bands, panels, films and parties going on during that week and I was obsessed with not missing a thing. I had grown weary of manually building a schedule of recommendations for friends and wanted to build an easy way that anybody could create and publicize a schedule themselves.

We soon expanded to support all kinds of events and new clients including music festivals like Lollapalooza, tech conferences like The Next Web, and political conventions like the UK Labour Conference. We've now handled 80+ new events.

We ran the original version of SCHED* at SXSW 2008 as a makeshift solution using an exported Microsoft Excel spreadsheet file. Once we began working with clients, we began looking for a more streamlined solution – ideally, an online spreadsheet that they could update on-the-go and didn't require programming knowledge. Google Apps Premier Edition provided the answer.

Google Docs spreadsheets, included in Google Apps, was the clear front runner because a majority of conference organizers already had Google accounts and were familiar with the interface. Additionally, the API made it easy for organizers to retrieve data from their spreadsheets. Here's what it looks like when it's up and running:

The idea of driving our entire admin interface from within a Google spreadsheet was exciting. Little to no learning curve, no server overhead, and Google's redundancy made this decision a big payoff. After setting up a simple data template, we used the Google Docs API to give the organizers a way to update the live site. In a single day it was integrated so that a simple click of a button would trigger an XML export of the Google Docs spreadsheet to our servers, instantly updating both our database and the live schedule that users would see.

The benefits of creatively using a Google Docs spreadsheet as a database entry point also gave us additional features we didn't have to build.

Document sharing was an easy way to provide access to all those involved as well as troubleshoot any difficulties live with the built in chat room. If a client needed help with formatting or suggestions for their event types we could give them live suggestions within the spreadsheet. Revision history gave us instant rollback in case there were any accidental overwrites, which are bound to happen.

Having these support features and safety nets built in to Google Docs spreadsheets let us spend more time improving the product itself (like an iPhone compatible version!) instead of reinventing the wheel.

We also use the Google Talk chatback badges embedded into every page of our new marketing site to provide always-on, live chat access to our team. We're excited to give our current and potential clients a new, simple way of communicating with us (even without logging into anything!).

Posted by Serena Satyasai, Google Apps team

Have a story to share about how you use Google Apps? Tell us here and we may follow up with you.

Social networking for business: What works and what doesn't

Social Media sites like Twitter, Facebook, Linkedin and YouTube are changing the way the world does business. I think this is in response to our desire to connect with others. Relationship Marketing is all about connecting with people first as human beings and then as customers later. For a real business relationship to work, both parties must receive value. If only one or neither does, that relationship won't continue for long.

It is the same with Social Networking. You have to provide value consistently for people to want to follow you (as in Twitter) or be your "friend" (as in Facebook). This value means something that helps them in their business or their personal lives.
Recent Articles

* Social networking for business: What works and what doesn't
* A setback is just a setup for a comeback
* Five steps to get more business
* Cheap (but effective) market research
* Advice for today -- from Benjamin Franklin
* Social media: You have to be there
* Social networking is about people, not technology
* Relationship marketing and the 'little things'
* Relationship farming and the 'WOW' factor
* Eliminate the asterisks in your marketing

Go to full archivesGo to full archives

So, what works in Social Media and Social Networking?

What to do in Social Networking -- Provide solid value first

Provide tips that are valuable to your followers. If you talk about a special that is with a third party --- where you have no benefit from your followers purchasing --- you gain points.

Retweet

This means you copy something that was said by one person and send it to your followers. You are helping in three ways here: 1) You help the person who sent the initial tweet and they will remember that, 2) You help your followers by providing value and 3) You help yourself two ways. First you strengthen the relationship with the person you are retweeting (don't you love these new words we come up with today?) and secondly you help yourself as others see you as a resource. Make sure it is value when you retweet otherwise it comes off as TweetSpam and that can only hurt you.

Link with URL shorteners

This sounds a bit technical but it's quite easy. If you have a really long name for a website (URL) it can eat up your 140 character limit fast. A better way is to use one of the free URL shorteners available. Bit.ly is good for generating statistics on how many are coming to the site. Tinyurl and snipurl have been around for years and are quite reliable.

Always points to more value on your blog or Web site

Let your Facebook postings, your tweets and Linkedin messages always point to your Blog or website (they can be the same) where your followers or friends will find more value on the subject. This is the methodology you want to deploy in your marketing today. Generate value on your Blog and point to it with your notices on all the various social networking sites.

What to avoid in Social Networking -- It's all about me

Ugh! How many times do we need to hear that the world doesn't keep spinning around YOU? We all want to hear about ourselves and how what you have to say will make our lives better. Make all your communications about how others will benefit from being involved with you. Frankly, we don't care that you're "standing in line to get a hamburger." What will help is if you found that hamburgers are available at half price today from 12:00 to 3:00 at 4th and Main and they are the best you've ever had. That information would be valuable. Make it about others and you will succeed.

Spam city

We hated spam on email (still do). We don't like it any more in the era of social networking. So stop it already! Yes, we know you have a "great way to make money on Twitter" on your site but frankly, we're tired of hearing it! Instead, promote serious ways people can solve problems in their business. You add to your credibility and avoid being seen as a spammer.

Too much "unfollowing" or "de-friending"

When you stop following someone (and there are times it is appropriate) make sure it is because of serious problems (like spamming --- see above). When we see someone has "unfollowed" us (more of those clever new words we get today), it can hurt. I remember one person who I admired and had purchased a lot of her materials. However, when she unsubscribed to my email I was hurt. Was I logical? Of course not. However, that person has already lost thousands of dollars as I spent the money with someone else --- and she doesn't even know it! Careful on what you do and who it can offend. Hear more about this story in my podcast at www.TerryBrock.com.

Social Networking is really very much like good ole networking has been since human beings started gathering in groups. Treat people with honesty and dignity. Relationship Marketing principles work today on these new media. Avoid the "hot new ways to increase traffic" that smack of hucksterism and chicanery.

If it doesn't come from a genuine, real desire to help other humans beings, it should probably be avoided. This is true in Relationship Marketing, Social Networking and life.

How Google tackles IT security – and what you can learn from it

Providers of cloud computing services like Google are equipped to protect millions of users' data every day – it's core to how we run our business. Our users enjoy our economies of scale at minimal expense. We also employ some of the world's best security experts to help to make sure that your data stays safe.


On October 1, join us for a live webcast with some of our top security experts who are on the front lines of fighting spam, malware, and phishing for Google Apps users, designing identity management systems for hosted web apps, and monitoring the Google network for potential threats. Register for this live webcast, “How Google Tackles IT Security – and What You Can Learn From It,” to learn about security in the cloud and get your questions answered by members of Google's Security team. Participants include:

Eran Feigenbaum – As the Director of Security for Google Apps, Eran Feigenbaum defines and implements security strategy for Google's suite of solutions for enterprises. Prior to joining Google in 2007, Eran was the US Chief Information Security Officer for PricewaterhouseCoopers.

John Flynn – John “Four” Flynn has an extensive background in network monitoring, intrusion detection, and incident response. John currently leads Google's Security Monitoring program and is a founder of Google's Security Metrics group.

Bradley Taylor – Gmail's “Spam Czar,” Brad Taylor leads Gmail's technical anti-spam, anti-abuse, and email delivery engineering efforts. Brad has played a key role in the development of Gmail's spam filter since Gmail launched in April, 2004.

Eric Sachs – Eric Sachs has over 15 years of experience with user identity and security for hosted web applications. During his years at Google, he has worked as a Product Manager for many services including Google Accounts, Google Apps, orkut, Google Health, Google Security, and Internal Systems.

While circumstances may vary, most IT departments face similar security challenges. Find out more from the people who confront these issues every day here at Google.

Join us for our live webcast to learn about the people, best practices, and technologies that we have in place to minimize security threats.

How Google Tackles IT Security – and What You Can Learn From It
Thursday, October 1, 2009
11:00 a.m. PDT / 2:00 p.m. EDT / 6:00 p.m. GMT

We hope to see you there.

Posted by Serena Satyasai, Google Apps team

Find customer stories and product information on our resource sites for current users of Microsoft Exchange and Lotus Notes/Domino.

Can Twitter Rake in the Ads to Justify $1 Billion Valuation?

The question about Twitter used to be, "Is it a business?" Now, the question becomes "How big can it be?"

And the answer is: It better be big. CEO Evan Williams confirmed last week that the microblogging service had finalized its new funding, reported to be $100 million, giving Twitter -- which now has no monetization program in place -- a whopping $1 billion valuation. Prior investors Spark Capital, Benchmark Capital and Institutional Venture Partners doubled down, and late-stage investors T. Rowe Price and Insight Venture Partners joined up.

With the funding, Silicon Valley and the venture community are once again setting their sites on the marketing budgets of American business to support another free "cloud" web service, in this case 140-word bursts of text. Indeed, they're counting on the exponential growth of advertising revenue in a flat market for a company that -- while certainly useful to marketers -- has yet to earn its first dollar.

"I think they can build some kind of ad business, but the more relevant question is can they build an ad business worth a billion plus dollars," said Warren Lee, VC at Canaan Partners. "That would require tremendous volumes of impressions and reasonable conversions. Lots of execution will be needed. Not impossible but unlikely."

The cash infusion (on top of $55 million already raised and the estimated $25 million Twitter has left in the tank), puts the pressure on Twitter to earn its first $100 million within the next year or two, and sparked cries of "bubble!" from the cheap seats, but that was true of AOL, Netscape, Google and Facebook.

'No precedent'
Yet Twitter is quite different. "It's the first one that's not a destination -- it's a distributed service," said Seth Goldstein, CEO of SocialMedia and investor in early Twitter backer Union Square Ventures. "There is no precedent for how to monetize it. "

Like Facebook, businesses already use Twitter to communicate with their fans and don't need to pay Twitter a thing to build followers or communicate with them. "What we see is a move away from brands using broadcast media to more engagement media," said Zephrin Lasker, CEO of sales-lead exchange Pontiflex. "If you have engagement on a one-to-one basis, extremely scalable, that's valuable."

Valuable to marketers, but is it valuable to Twitter? With the money comes an expectation of corresponding revenue, and while verified accounts, corporate services and analytics are interesting, advertising is the business that scales. While co-founder Biz Stone said there are no plans to start an ad business this year, it seems inevitable Twitter will be going toe-to-toe with Facebook in the ad market.

"What is interesting from an advertising perspective is the same thing that is interesting about Facebook: It is one of the only platforms of scale that has two-way messaging potential," said Michael Lazerow, CEO of Buddy Media, which sells ads on Facebook widgets. "But are they a $50 mil or a $1 bil business?"

Twitter could turn on revenue immediately, but appears to be in no rush to do so. Observers have, for example, long wondered why Twitter didn't start running contextual or keyword ads next to tweets, like Google. Twitter could run the ads based on the content of tweets combined with what Twitter knows about the user from their profile and registration details.

Outside factors
The problem with that is that more and more users access Twitter from third-party apps like TweetDeck or Tweetie not owned by Twitter, and those services, too, need a business model and may also incorporate advertising.

Mr. Stone said that ads won't come before 2010 and Twitter's early-stage venture backers have told Ad Age the ad business, narrowly defined, isn't that interesting to them. On its site, Twitter touts marketing success stories from Pepsi, Jetblue and Dell, which consist of the brands using the service to connect with fans.

The cash could allow Twitter to make some acquisitions; perhaps one of the URL shorteners like Bit.ly, one or more of the Twitter applications, or one of the many, many firms now making dashboards to manage Twitter for corporate clients.

With a valuation of $1 billion, Twitter's investors believe one or more of the following outcomes are likely: an IPO or an acquisition at a healthy price. Already Twitter has reportedly turned down bids from Facebook, Google and Microsoft.

Small Business and Health

“Bristling at Health Plan to Cover Early Retirees” (“The Work-Up” series, news article, Sept. 9) pegs health care coverage for early retirees as exclusively a labor issue. In fact, this is an issue for all Americans.

Small Business Majority, a national nonprofit, is working for America’s 27 million small businesses and small-business owners.

Today, small businesses provide 75 percent of all net new jobs and employ 52 percent of the private-sector work force. What hurts small businesses hurts America’s economy. Not only are the majority of small-business owners between 55 and 64 years old — a precarious window for personal health care coverage — but they also face skyrocketing health care costs, which is hindering their ability to provide high-quality coverage to their employees.

Our research has shown that an average of 86 percent of small-business owners cite affordability as the reason they do not offer health care to their employees, while an average of 68 percent of small-business owners believe that health care reform is needed to help fix the economy.

The biggest problem facing America’s small businesses and America’s economy is unavailable, unaffordable health care. Emphasis on health care coverage for people between 55 and 64 is not just good for labor, it’s good for the economy.

SBA offer small-business help

Wowwww... They can be sobering statistics for those who are thinking of leaving an employer to start a small business of their own: Nearly one-third of small businesses fail before their second anniversary. And half of them close their doors before their fifth year.

After years of collecting such data, the United States Small Business Administration has learned a lot about what makes some new business thrive while others collapse under the pressures that are so prevalent during the first months and years of operation.

On Tuesdays in October, SBA officials will team up once again with the Suffolk Economic Development Department to share some of those lessons.

The “Start and Grow Your Suffolk Business” seminar series begins Oct 6 and will be held from 6 p.m. to 8 p.m. each Tuesday of the month, with a focus on different topics each week.

This is the fourth or fifth such series in Suffolk, according to Kevin Hughes, the city’s economic development manager, who said some topics change from one series to another.

But some of those topics — like Business Plan Development (Oct. 13) — stay pretty constant because of their value to business owners.

“Obviously, there are some that are very important for every business,” he explained.

Hughes’ department and the SBA consider a solid business plan to be foundational to the success of a new or growing business. In fact, it’s almost impossible to get a loan for a new business without one.

Even so, Hughes said, “You see a lot of startups … who haven’t even done a business plan.”

The two-hour seminar Oct. 13 will cover some of the techniques for writing a winning business plan. It will be led by Jim Carroll of the Small Business Development Center, which specializes in helping small businesses get off the ground.

“It’s a great resource for small businesses, really, at any stage,” Hughes said of the SBDC.

The information that Carroll and other presenters will provide participants is a benefit of the series, Hughes said, but the access to resources like the SBDC is even better.

“Knowing that an organization of people is out there — a lot of them free — that can assist” small business owners can make a huge difference, he said. “The best thing is that we’re able to get those resources in front of people.”

Past seminars have attracted 15 to 25 participants at a time, Hughes said, and they range from the merely curious to the already-established small business owner looking to broaden his awareness of the help that’s available.

“They range from the dreamer to folks who are already up and running,” he said.

Those who would like to participate in the programs are encouraged to call in advance so that organizers can ensure they have enough materials. But Hughes said even walk-ins will be welcome.

The following seminar topics are planned:

4Oct. 6: Do you know how to read and respond to an opportunity with the federal government? This presentation will provide a section-by-section understanding as to what the government asks for in a solicitation. Insights on how to prepare a response to the proposal will be shared.

4Oct. 13: Business Plan Development. Learn about some of the techniques to writing a winning business plan.

4Oct. 20: Pricing to win federal contracts. A follow-up to the first session, focusing on the financial requirements that come along with the pursuit of federal contracts, from the preparation of a cost submission to having the necessary financial resources to invoicing requirements.

4Oct. 27: Finance. Hear what the bank is looking for and the things that impact your loan package. There will be an overview of the Small Business Administration Loan Guaranty Program.

Lilly says David Ricks will lead US business

INDIANAPOLIS -- Drugmaker Eli Lilly and Co. said Tuesday that David Ricks, who is now in charge of its Chinese business, will become president of the U.S. division on Nov. 1.

Ricks has worked at Lilly for 13 years, including managing operations in Canada and China, Lilly said. He will take over for Enrique Conterno as president of Lilly USA. Conterno will become head of the company's diabetes business as part of a reorganization announced earlier in September.

Lilly USA will be part of the established-markets business, which will be lead by Bryce Carmine. The established-markets business will focus on developed markets like the U.S., European Union, and Japan, and will handle marketing of heart and neurological drugs, among other products.

Eric Baclet, vice president of marketing over global neuroscience brands, will succeed Ricks to lead Lilly China.

The company is reorganizing into five business units: cancer, diabetes, established markets, emerging markets, and the Elanco animal-health business. The reorganization includes about 5,500 job cuts, or about 14 percent of Eli Lilly ( LLY - news - people )'s work force, by the end of 2011.

$350M-$500M Price Tag For Yahoo Small Business

Yahoo Small Business isn't going to sell for a particularly tiny sum if Yahoo has its way. A fresh report indicates that Yahoo, which has been trying to unload the unit for some time now, would like to receive around $500 million by way of payment.

Yahoo Small Business is, as you probably guessed, a property that caters to small businesses. It deals in things like Web hosting, ecommerce solutions, domain names, and business email. And even if you haven't heard of Yahoo Small Business before, it's not bad, having won an editors' choice award from PC Magazine last year.

The question is whether Yahoo can get a full $500 million - or even 70 percent of that amount - for the unit.

An unnamed source told Reuters that, although Yahoo might accept $350 million, "Yahoo's price expectations are higher than what buyers were willing to pay. People would like to own this asset, but not at the asking price."

We'll see what happens. Considering that Yahoo's trying to sell so much stuff - HotJobs, Yahoo Games, Yahoo Small Business, and Zimbra at last count, with the sale of its Alibaba.com stake under its belt - it's not hard to imagine that the company will compromise just for the sake of closing more deals.

Google at SMB Nation Fall Conference

As part of our continued outreach to find leading solution providers and MSPs for our Google Apps Authorized Reseller program, the Google Apps Partner team will head to Las Vegas on October 2, 3, and 4 for "SMB Nation Fall 2009." This conference, focused on technologies for small and medium businesses, is designed for consultants, channel partners and VARs, and offers the community a chance to engage in conversations around hosted, cloud-based solutions. It's targeted at both technical and business audiences, with an emphasis on managed services.

Program managers from Google will speak about opportunities for Google Apps Authorized Resellers. They'll also be listening to feedback from the community on areas for further improvement to the program. Google's partners often play a critical role in helping customers get the most out of Google Apps, and building a strong partner network will be key to keeping up with the accelerating adoption of Google Apps.

Learn more and register at smbnation.com, and be sure to find members of the Google team when you're there.

Posted by Jeff Ragusa, Google Apps Partner team

Get timely updates on new features in Google Apps by subscribing to our RSS feed or email alerts.

The Court and Campaign Finance

In the Supreme Court this week, Elena Kagan, the new solicitor general, eloquently defended the longstanding ban on corporate spending in political campaigns. But the conservative justices who spoke showed a disdain for both Congress’s laws and for the court’s own prior rulings. If the ban is struck down, as we fear, elections could be swamped by special-interest money.

Conservative jurists talk about judicial modesty and deferring to the elected branches. But in the questioning, Justice Antonin Scalia made clear that he considers Congress to be a self-interested actor when it writes campaign finance laws. Chief Justice John Roberts and Justice Samuel Alito seemed to put little weight on the fact that the court has repeatedly upheld a ban on corporate campaign expenditures.

What the conservatives seemed most concerned about was protecting the interests of corporations. The chief justice and Justice Scalia seemed especially perturbed that what they see as the inviolable right of these legal constructs to speak might be infringed upon.

The conservatives also seemed incredulous that vast amounts of corporate money flooding into campaigns could be seen as corrupting the system. We agree with Senator John McCain, who told reporters after the argument that he was troubled by the “extreme naïveté” some of the justices showed about the role of special-interest money in Congressional lawmaking.

The more liberal justices — including Justice Sonia Sotomayor, who was participating in her first argument — were far more sympathetic to the ban on corporate expenditures, but they have only four votes.

There is still some hope that Chief Justice Roberts may decide his affection for corporations is less important than the reputation of the Roberts court. If he does, there is a chance for a limited, and relatively undamaging, ruling that hews closely to the facts of this case.

The underlying dispute is a narrow First Amendment challenge brought by Citizens United, a nonprofit group that wanted to show an anti-Hillary Clinton movie on a video-on-demand service during the primary season. The court could uphold its right to show the movie without opening the door to a new era of political corruption.

Vectra Bank's small-business index for Colorado rises

The Vectra Bank Colorado Small Business Index for Colorado climbed to 79.8 in August 2009, up from a revised 78.1 in July, mostly because high unemployment rates have expanded the labor pool for employers.

"The last time Colorado's unemployment reached current levels was the spring of 1987, over 22 years ago. There's no question it's a painful time for the state's labor force," said Jeff Thredgold, Vectra Bank Colorado's corporate economist, in a statement.

"The return to employment strength is going to be a slow process. But positive U.S. economic growth expected this quarter should bode well for Colorado moving forward," Thredgold said.

Colorado's unemployment rate was estimated at 7.8 percent in July, up from 7.6 percent in June. August employment data will be reported on Sept. 18.

The index measures business conditions from the viewpoint of the Colorado small business owner or manager. A higher index number is associated with more favorable business conditions for Colorado's small businesses.

The index uses 100.0 for calendar year 1997 as its base year.

Vectra Bank is a unit of Salt Lake City-based Zions Bancorp.

Source: Bizjournals

Love a local business? Buy a share

HASTINGS-ON-HUDSON, N.Y. (Fortune Small Business) -- John Halko was halfway through renovating an expanded space for Comfort, his mostly organic eatery in Hastings-on-Hudson, N.Y., when the credit crisis hit. His source of funding -- a home-equity line -- ran out, so he applied for a loan at a local bank. He was turned down.

Halko wasn't ready to throw in the dish towel. His solution? The modern equivalent of an old-fashioned barn raising. Instead of soliciting neighbors to lift timbers, he asked them to open their wallets. For every $500 they purchased in "Comfort Dollars," his patrons received a $600 credit toward meals at the restaurant. As the community rallied around Comfort, Halko says, "it gave us hope." He raised $25,000 in six months, and the new, larger space - now called Comfort Lounge -- opened for business in May.

Plenty of entrepreneurs are turning to their communities for support in these tricky times. As the recession wreaks havoc on America's economy, finding the money to launch, expand or even just sustain a small business is often a struggle. In the second quarter of 2009, venture capital funds raised the smallest amount since the third quarter of 2003, according to the National Venture Capital Association in Arlington, Va. Banks continue to pull credit lines and credit cards from many small businesses. Even proprietors who are willing to extract capital from their homes -- often their biggest personal asset - can't always do so, because the declining housing market has left so many homeowners underwater.

But entrepreneurs are resourceful, and as the economic crisis forces them to seek new sources of capital, a growing number appear to be finding money in their own backyards. After all, local customers have a personal incentive to invest in their favorite businesses. And while no one is officially tracking the trend, anecdotal evidence suggests that the practice is growing.

"There are no secure returns out there right now," says David Lavinsky, co-founder of Growthink, a venture investment firm headquartered in Los Angeles. "People are very willing to invest in their local community, especially if there is the possibility of return."

High hopes: Small business is becoming optimistic

Small business owners are joining consumers and investors in showing some cautious optimism about the economy.

An index that measures owners' optimism rose last month, boosted by expectations that business conditions will improve in the future. And there's anecdotal evidence from owners in a variety of industries who say they have reasons to feel a little more upbeat.

The National Federation of Independent Business, which surveys its members each month, said its index of business owner optimism rose 2.1 points to 88.6 in August, an increase that NFIB chief economist William Dunkelberg called "a big gain." The optimism, though, is about the future, as owners still have a dim view of current economic conditions. Dunkelberg noted that small businesses generally aren't planning big capital expenditures or to start hiring again.

"First you have to feel better before you'll spend your money," Dunkelberg said.

Dunkelberg makes the same caveats that other economists do: If consumer spending doesn't pick up, the budding optimism is likely to wither. But, he said, having watched decades of economic cycles, "every recovery begins with an improvement in the feel good stuff, and that's followed by an improvement in the hard spending numbers."

Several small business owners interviewed by The Associated Press reported that their own optimism, as well as that of their clients and customers, has started to improve recently.

"It's still tough, but people are at least starting to speak in normal terms again," said Michael Frenkel, president of New York-based M Frenkel Communications Inc.

Like many other public relations firms, Frenkel's business was hurt when clients slashed their marketing budgets, often the first casualties when companies cut costs. Now, he said, with his hotel and real estate clients putting their budgets together, "things are looking a bit looser for the fourth quarter and they're looking even looser for the beginning of 2010."

But Frenkel said business owners have been forced to adapt to a new reality: The booming economy of two and three years ago, when a company like his could find business almost anywhere, isn't likely to return soon. So, he said, "you just try to go out there and make it happen."

Ian Ford, whose company sells discount tickets to Orlando, Fla., tourist attractions, has become more optimistic as his sales, which dropped off last September and fell as much as 20 percent, started to rebound this summer. Part of the improvement followed Walt Disney World's discontinuing some of its deep discounts, which in turn lifted demand for the tickets sold by Ford's company, Undercover Tourist. Also, more people are willing to travel now.

Big target on small business - Now !

Small-business owners are sweating this summer — and it's not necessarily because of the weather.

Many worry that a form of nationalized health care could soon become law, and that this would cost jobs.

"I give my employees health insurance but I can't afford to meet the government mandates," one owner told the National Federation of Independent Business. "I will have to eliminate several employees to reduce my payroll expense."

(NFIB is a trade organization that helps businesses).

"I don't believe we'll be able to comply. We will have to eliminate pay increases and Christmas bonuses. Full-timers will be eliminated and all staff will be part-timers, and that will likely be insufficient," another added.

"In general, H.R.3200 will hurt my business due to increasing my costs. Ultimately that may mean letting people go. How is that helping the economy or small business?" wondered a third owner.

No wonder NFIB has come out in opposition to the "reforms" proposed in the House of Representatives.

Many politicians insist they can add a government-run "public option" health insurance plan on top of the trillions of dollars in obligations our federal government is already facing. But small business owners know better.

The government plans have a big problem: The extra taxation and spending would destroy many small businesses, the very foundation of the American economy.

Half of all private workers in the U.S. are employed in firms with fewer than 500 workers. These small firms have also created somewhere between 60 and 80 percent of all new jobs in the last decade.

But some politicians are willing to endanger that growth.

Rep. Charlie Rangel, D-N.Y., chairs the crucial Ways and Means Committee. To pay for health-care "reform," he wants to slap a surtax on roughly 2 million tax filers.

Some 60 percent of these returns reflect money made by a small business or partnership.

While 400,000 of people affected by the surtax derive most of their adjusted gross income from a small business, these taxpayers already shell out one quarter of all income taxes. They represent our economic foundation.

The proposed extra tax would be on a sliding scale: 1 percent for joint filers with more than $350,000, 1.5 percent for joint filers with more than $500,000, and 5.4 percent for joint filers with more than $1 million in adjusted gross income.

In addition to higher taxes, the House health care bill would force small businesses with at least $250,000 in payroll to provide health insurance or pay a tax penalty up to 8 percent of payroll.

And as if the initial proposed tax rate wasn't high enough, there's every chance it could go up.

The House bill would empower the Office of Management and Budget to jack the tax rates up to 2 percent for those making $350,000 and 3 percent for those making less than $1 million, if bureaucrats decide that's necessary.

Businesses would have an even harder time preparing for the future, because they'll never be able to know when their taxes may increase or how high they'll eventually go. Few business owners would hire new workers under those conditions.

The national unemployment rate in July reached 9.4 percent, and of course we all want to bring that number down by creating as many jobs as possible, as quickly as possible.

To do so we need to shore up small businesses, not chip away at them with higher taxes and expensive mandates.

As summer winds down, Obamacare seems to be on life support.

Small-business owners have spoken. We ought to pull the plug, and start over again with an effective reform plan that won't hammer our nation's economy.

Future Financing For Small Business Clouded, Hurting Recovery

Even as the economy improves, financing may continue to be elusive for small businesses that drive job creation in the U.S.

Battered banks have cut back on loans and lines of credit. While smaller banks and credit unions have jumped in, they don't have the capacity to fully make up the financing needs.

It's unclear how small businesses, which account for half the U.S. economy, will find the funds to invest and propel the fragile recovery.

"We have to figure out how to get to the institutions and avenues small businesses actually use," said William Dennis, senior research fellow at the National Federation of Independent Business Research Foundation.

Despite government efforts to shore up the banking system, credit remains tight. The Federal Deposit Insurance Corp. last week said loans to small firms declined 1.9% in the past year. A Federal Reserve survey showed a third of banks tightened lending to businesses in the three months ended in July.

While the recession depresses demand for funds and hurts credit quality for small businesses, lines of credit are being cut for even solid firms, say advocates.

Meanwhile, community development financial institutions, such as credit unions and microloan funds, are making more loans, and larger ones, this year compared with last, according to a Philadelphia Federal Reserve Bank report on its region.

When it comes to number of loans made under the U.S. Small Business Administration's primary loan program, National Penn Bank and Susquehanna Bank have moved up in the Philadelphia area. They rank seventh and sixth respectively in the nine months ended July, from eighth and 12th during October 2006 through September 2007. In contrast, Bank of America Corp. (BAC) in the same period has gone from ranking fifth in number of loans - 118 - to 29th, with just four loans.

"Now, we're seeing more and more credit-worthy firms that are unable to get conventional financing," said Lynn Ozer, who manages Susquehanna's government guaranteed lending. She's seeing at least double the number of applicants for the SBA program than a year ago. Susquehanna Bancshares (SUSQ), based in Lititz, Pa., has $13.8 billion in assets.

Bank of America spokeswoman Tara Burke said the bank remains committed to small business. It lent more than $8 billion to companies with less than $20 million in annual revenue and modified payment structures for 32,000 small business credit-card customers so far this year, she said.

National Penn Bancshares Inc. (NPBC), based in Boyertown, Pa., with $9.7 billion in assets, didn't return a call for comment.

Groups that help small businesses are encouraging them to try regional banks. Philadelphia's Wharton Small Business Development Center is inviting more regional banks to attend its "meet the lenders" program in November and arranging its first-ever panel discussion with regional bank presidents in December.

But while regional banks didn't delve into the securitized products that bedeviled larger banks, they have exposure to commercial real estate - the next phase of the crisis. The National Association of Realtors recently said the market may only see meaningful recovery in the second half of 2010. Regional banks facing impending losses may cut back on credit even more.

Larger companies have the ability to bypass tight bank credit - they can sell bonds to investors, who lately have shown an insatiable appetite for the attractive assets. But small businesses have no such access. A long, protracted recovery may be the result.
Source: CNN

2nd UPDATE: Medtronic Consolidate Businesses Into Two Groups

Medical-devices giant Medtronic Inc. (MDT), which has been restructuring amid efforts to control costs and manage pressure on top businesses, said Monday it is moving its various business units into two main groups.

The moves include some changes among Medtronic's top managers, and Medtronic said it's searching outside the company for someone to run a new group covering its cardiology franchises. The other group includes businesses making orthopedic, diabetes, neurology and surgical devices, Medtronic said in a release.

"This new structure enables us to capitalize on existing synergies across our businesses," Chairman and Chief Executive William A. Hawkins said in a statement.

Shares of Medtronic recently traded down 55 cents, or 1.4%, at $38.12, although they've generally been on an upswing since March. The company, which is battling to stabilize its position in markets for key devices amid a slumping economy, has enacted job cuts and other moves in its restructuring efforts this year.

The "CRDM, CardioVascular and Physio-Control" group will contain Medtronic's big cardiac-rhythm business, which includes implantable defibrillators. It will also cover the business that makes stents to open heart arteries and Physio- Control, an external defibrillator business Medtronic would like to spin off once issues raised by the Food and Drug Administration are resolved.

Medtronic said it's currently conducting an external search for someone to run this new group. Segment leaders from the three businesses within the group - Pat Mackin, Scott R. Ward and Brian Webster - will report to that person.

Morgan Stanley analyst David Lewis called Medtronic's decision to search outside the company for this spot the "biggest surprise." Outside perspective has worked before, but the decision to not promote either Mackin or Ward "will come as a surprise to some investors," Lewis said.

"We are not convinced this sends any message regarding the outlook for these businesses," he added.

Christopher J. O'Connell, who had led Medtronic's diabetes franchise, was promoted to head the "Spinal and Biologics, Neuromodulation, Diabetes and Surgical Technologies" group. Catherine Szyman, formerly senior vice president of strategy and innovation, will now run the diabetes business.

Richard E. Kuntz, who had run Medtronic's Neuromodulation business, which includes "deep-brain stimulation" devices used to treat neurological disorders, was named chief scientific clinical and regulatory officer. Tom Tefft, formerly vice president and corporate controller, will take over the neuromodulation unit.

In addition, Jean-Luc Butel was promoted to a new position overseeing international operations.

Last week, the company reported its fiscal first-quarter profit dropped 38%, weighed down by charges from a recent legal deal, but core earnings and sales beat expectations with help from extra time on the fiscal calendar.
Source : cnn

Business Highlights - Disney Buy Marvel

Disney to buy comic book powerhouse Marvel for $4B

LOS ANGELES (AP) - The Walt Disney Co. is buying Marvel Entertainment Inc. for $4 billion in cash and stock, bringing such characters as Iron Man and Spider-Man into the family of Mickey Mouse and WALL-E.

Under the deal, which was announced Monday and is expected to close by the end of the year, Disney will acquire the rights to 5,000 Marvel characters. Many of them, including the Fantastic Four and the X-Men, were co-created by the comic book legend Stan Lee.

Stocks end strong month with a bout of selling

NEW YORK (AP) - After giving the stock market solid gains during August, investors still worried about the economy backtracked a bit during the final day of the month.

Stocks fell in light trading Monday after a plunge in China's main stock market sent a wave of selling around the world and added to concerns that stocks have rocketed too high, too fast. The Dow fell 47.92, or 0.5 percent, to 9,496.28.

The Standard & Poor's 500 index, which is the basis for many mutual funds, ended August higher to post its sixth straight monthly gain. It is up 50.9 percent since early March, the best run since 1938.

Baker Hughes to buy BJ Services in $5.5B deal

HOUSTON (AP) - Oilfield services company Baker Hughes Inc. said Monday that it will buy BJ Services Co. in a cash-and-stock deal valued at $5.5 billion to diversify the services it offers and compete better with industry leaders.

Baker Hughes customers will get a one-stop shop for a variety of services. Notably BJ Services' pressure pumping business will go to Baker Hughes, which will help clients with unconventional gas and deepwater fields, said Chad Deaton, Baker Hughes Chairman, President and CEO.

Southwest faces Tuesday deadline to replace parts

DALLAS (AP) - Southwest Airlines Co., facing a deadline of Tuesday for settling a dispute with regulators over the use of unapproved parts, said Monday the parts were installed on almost twice as many planes as it first believed.

The airline also has suspended the maintenance firm that got the parts from a subcontractor.

Southwest said Monday it has replaced the unapproved parts in more than 25 planes but needs more time to find parts for the remaining jets and an extension to avoid a disruption in its service to its customers.

Without an extension, the Federal Aviation Administration could force the airline to ground some planes.

Oil settles below $70 on China worries

UNDATED (AP) - Oil prices fell nearly 4 percent to below $70 a barrel Monday as a steep drop in China's stock market raised doubts about the strength of the U.S. and global economic recovery.

Benchmark crude for October delivery lost $2.78 to settle at $69.96 on the New York Mercantile Exchange, the first time oil has ended a trading day below $70 in about two weeks.

Major refiner China Petroleum & Chemical Corp. fell by the daily maximum 10 percent after the company said it does not expect to significantly boost production, while PetroChina, the Shanghai index's heaviest weighted share, fell 6.7 percent.

Head of Boeing's commercial jets to step down

CHICAGO (AP) - Boeing Co. said Monday that Scott Carson will step down as head of the company's commercial airplane division and retire at the end of the year.

The Chicago-based company said Carson will be succeeded on Tuesday by the head of its defense business, Jim Albaugh.

Boeing's commercial aircraft operation has struggled with sharply lower orders amid the global economic downturn, which has hurt demand for air travel and cargo services. It also has grappled with problems arising from its new 787, a next-generation aircraft that's been delayed five times. Boeing said last week the lightweight plane will fly for the first time by year's end.

Survey finds support for Fed, jitters on spending

NEW YORK (AP) - Economists are pleased with the Federal Reserve's policy on interest rates but skeptical of the government's ability to rein in spending, curb greenhouse gases or overhaul health care, a new survey finds.

The latest semiannual survey by the National Association for Business Economics, set to be released Monday, indicates almost 70 percent of the 266 economists surveyed earlier this month think the Fed's monetary policy is "about right," up from 63 percent in March and 56 percent a year ago.

The results come as indicators point to an improving economy, presenting policy makers with wrenching decisions over how quickly to roll back measures taken in the past year to avert a financial collapse.

Wal-Mart to sell goods from other vendors on Web

LITTLE ROCK, Ark. (AP) - Wal-Mart Stores Inc. has launched an addition to its online business that has outside retailers selling nearly 1 million new items through Walmart.com, a move that could help the world's largest retailer catch up in the online world.

The Walmart Marketplace has products from categories that include home, baby, toys, apparel, sporting goods and sports memorabilia. The company said it picked the retailers - including eBags, CSN Stores and Pro Team - because they have large product assortments and solid customer service track records.

Huntsman makes $415M bid for Tronox assets

NEW YORK (AP) - Chemical company Huntsman Inc. has offered to pay about $415 million for Tronox Inc.'s titanium dioxide and electrolytics businesses in a deal that would make Huntsman the world's second-biggest maker of a whitener used in products as diverse as food, plastics and paint.

Texas-based Huntsman Inc. said Monday that it signed a "stalking horse" agreement last Friday with Oklahoma City-based Tronox Inc., which filed for bankruptcy protection in January.

That means other companies may submit competing bids for Tronox's assets before a bankruptcy court auction, which will likely take place in the fourth quarter of this year.

Drugstores to start giving flu shots Tuesday

NEW YORK (AP) - Drugstore operators are beginning their seasonal flu shot campaigns several weeks early this year, saying they expect greater demand for the vaccine in a year when the swine flu strain has dominated the news.

CVS Caremark Corp. and Walgreen Co. are making flu shots available starting Tuesday, while Rite Aid Corp. said some of its pharmacists are already giving the shots. The vaccine is intended to prevent the seasonal flu and is separate from vaccines for swine flu. A swine flu vaccine could be ready by mid-October.

CVS said it was offering the shots three or four weeks earlier than usual. Walgreen said it started giving flu shots Oct. 1 last year.

By The Associated Press

The Dow fell 47.92, or 0.5 percent, to 9,496.28.

The S&P 500 index fell 8.31, or 0.8 percent, to 1,020.62, while the Nasdaq fell 19.71, or 1 percent, to 2,009.06.

Benchmark crude for October delivery lost $2.78 to settle at $69.96 on the New York Mercantile Exchange.

In other Nymex trading, gasoline for September delivery fell 7.59 cents to settle at $1.9859 a gallon and heating oil dropped 8.11 cents to settle at $1.7792 a gallon. Natural gas shed 5.6 cents to settle at $2.977 per 1,000 cubic feet.

In London, Brent crude settled down $3.14 at $69.65.

Business Activity Increases More Than Expected

Business activity in the United States rose more than forecast in August, adding to signs the economy is improving.

The Institute for Supply Management-Chicago said Monday that its business barometer increased to 50, the highest level since September 2008, from 43.4 in July. Fifty is the dividing line between contraction and expansion.

Automakers are likely to be at the epicenter of a rebound in manufacturing in coming months as assembly lines speed up after the government’s cash-for-clunkers plan left showrooms bare. Increasing demand from overseas and a record reduction in inventories mean that an increase in factory orders and production may last for much of the rest of the year.

It’s “a manufacturing-led recovery,” said Robert Stein, a senior economist at First Trust Advisors of Wheaton, Ill. “Much of this is probably related to the revival in auto production over the past month or so.”

Economists surveyed by Bloomberg News had forecast the index would rise to 48, according to the median of 53 projections. Estimates ranged from 46 to 52.5.

Economists watch the Chicago index for an early reading on the outlook for overall manufacturing, which makes up about 12 percent of the economy. The Institute for Supply Management is scheduled to release its August factory report on Tuesday. According to a Bloomberg survey, that measure will show expansion for the first time since January 2008.

The Chicago report’s orders gauge climbed to 52.5, the highest level in a year, from 48 in July, and the production index rose to 52.9, from 43.3.

The employment index increased to 38.7, from 35.3. A measure of prices paid for raw materials jumped to 50, from 35, while a gauge of delivery times increased to 54.6, from 49.6.

Source: NYTimes