Small Business Center 5/15/2013
The latest concerns facing small business owners, from e-commerce to bricks-and-mortar: how a small business financer is expanding its reach and two y...
May 15, 2013
The latest concerns facing small business owners, from e-commerce to bricks-and-mortar: how a small business financer is expanding its reach and two y...
May 15, 2013
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Again for joining us for small business Wednesday let's go straight down to Miami we have Sam -- -- with the sales huddled group.
A sports training and advisory.
Company joining us now hi Sam good morning.
-- it good good you have some advice for the president to to really help small business owners what is that nice.
Well you know I think that today in today's landscape -- so many small business owners that there's so many different things on their mind overall and you know I'm I'm down here working with a client we have.
Everything from tax reform on their minds to you know the ever changing market with regard to Health Care Reform.
You know I think that overall.
You know small business owners maybe not advice for the president -- small business over -- overall small business owners have to get better focused.
To move forward with all the different jobs that are facing them today.
Right you know yesterday we got a report from the National Federation of Independent Businesses called the small business optimism index -- -- looks like small businesses are finally.
Turning a little bit optimistic that level -- six month high do you think that's the case are you or small businesses -- you know optimistic.
I think that you know most of whom are.
Getting more optimistic I think that.
With -- on 11 hand you have small business owners and have a choice that they're being faced with that in very critical choice.
And the choices on one hand to either -- Find a way to increase sales and better train their staff.
And find ways to offset these rising cost -- are facing every day.
By investing in our people and increasing sales the other side of the coin which is the more dangerous decision to make.
Is to try to become more efficient by cutting operating cost cutting payroll.
Finding ways to outsource and move these expenses off their balance sheet so to very important choice I would say overall you're seeing more businesses that are putting their head down to finding ways to -- and if that.
To -- so option want.
Option one and at that overall more companies today are finding a way they got to start you know again we're starting to see the issue of health insurance costs are -- kind -- become real for owners today right especially with when he fourteen right around the corner.
That business owners or -- are having to make that decision with are we going to.
Worry about sales are we gonna sit around and and complain about what's happening in Washington.
And it's -- it's okay for certain amount of time but it's time for small business owners to begin to move forward and find ways to increase sales.
In the things in Washington -- major issues but -- some point we have to figure out how to move forward.
ML a lot of small business owners and small businesses in general complain that they can't find.
Educated are qualified staff with the skills that they need to to really help their business.
Do -- I would absolutely agree I think there's a major.
I think there's a major problem with it I think it's it you know.
Fingers being pointed both ways from both the universities and small businesses as a small business owner in working with small business owners.
That quality of talent coming out of universities are not.
Built to the specifications of our economy today.
And it's a hard thing to say but from I would say that we have a very lazy.
Fat university infrastructure.
That is educating students for -- market that was in the seventies and eighties and with business is trying to find ways to do what I said first option one generate more sales what we need students coming into the market that are prepared to do that are built to do that.
And more often than not we're seeing that student to get 15% unemployment or underemployment with students between the age where Americans between the ages of twenty and 25.
We have to find ways for universities to better prepare candidates for the industry in the economy today.
And at the same time companies -- -- find a way to better trained these these team members want to get a monarchy.
-- -- an example of Powell perhaps a recent interview we did not have the skills that they should've gotten in college when they were on that interview.
You know we we do.
Being that being in the -- space we do with a lot of teams from the professional sports side and health and fitness clubs and whatnot.
Yeah we do we do a tremendous.
Amount of interviews in ticket sales and again sports being kind of a sexy industry -- -- a major the there were 400 universities that sports management programs today.
And again from an interview perspective we -- -- I -- a student the other day who were hiring for sales position.
And first interview.
Left follow up steps had to happen.
And I just don't think that yet we're not follow through on -- kind of summarize that example there's a lot of missing links with how.
From a sense of entitlement how students today are supposed to act and perform to two.
Actually capture the jobs that are -- So you're saying it.
Your saying that college is in preparing its students.
For that instant interpersonal skills needed on the job interview not necessarily -- skill set to do that -- I would say it's both I would say that universities I would say.
A -- believe -- -- a case a perfect example it in the in this with the universities today obviously one of the number one profit centers on university campus.
Our sports right generating ticket sales sponsorship and whatnot.
And one of the big movements you've seen in the last few years.
These universities that have hired or outsource their sales programs to outside firms coming in to sell tickets for them.
And it's an interest -- it's an interesting point because if you're -- center of excellence as an academic institution.
Wouldn't you think that the business programs in the students on their campus would have the ability to be able to step in and sell tickets for a -- a collegiate program why is it that you.
Again education programs are having to turn to the private sector.
To find companies to take over the sale of their most prized inventory so the movement in that one regard has been uninteresting because.
With over you know without enormous amount -- universities that are you know available are out there today in the cost -- charge and incurred by students.
There's still a very limited amount of programs are focused on sales are very wanted to not a programs focused on negotiation and these -- the entry level jobs that students are finding the finding entry level Linford ships.
The findings jobs that require them to move inventory for companies -- but they're coming out with an expectation -- -- market.
And Sam you are very eloquently answering the question that so many of us are asking how is it that the class of 2013.
Some two million graduates.
Are going to be not only ill prepared for the job market but some 40% of them are likely to do jobs -- -- -- kind of jobs baby sitting -- Doing.
Jobs that they did not get their degree and so they paid for a degree they're not even using and you just provided us.
With some reason as to why that's happening I also talk about the other option that you brought up.
Earlier cutting costs were -- a lot of the big companies do this they're not really growing their revenue but they're meeting their profit expectations because they're.
They're sucking all the life that everything that they can.
Judy small businesses are following in the -- is big business out footsteps and if they are when you reach the point we really can't do anymore with -- I think it's a very good point you're making a -- I see every day small businesses try to look at their their balance sheet and say how do we cut.
Marketing expenses how we further cut.
Payroll you see a lot of organs I've seen a lot of small businesses moved to 1099 in a lot of employees to get around some of the existing.
Issues with regard to health care and other items but I don't.
The challenge comes in when you're cutting so many cost that you're getting to the point where you're impacting the customers experience today.
And I think we have a more educated consumer.
Speaking from somebody who -- who our company does training and sales and we deal with the the curve of consumer intelligence when they're approaching.
Any any product or retail or service experience customers -- more intelligent.
And -- you know -- be where the companies in the small businesses are making the decision to cut cost and impact.
Though most valuable asset they have which is their product service experience.
-- is great you really raised some strong points their Sam Clay HE with the sales -- group thank you for coming -- Thank you all right have a great day way to go to break we'll be back right after this.
Welcome back as we continue small business Wednesday.
Big problem for many small businesses is.
Access to the thing they need capital and money and we had a co-founder of cabbage.
Joining us from San Francisco mark -- hi good morning.
Lauren good morning how are -- OK okay -- not nice to see you -- -- -- which provides alternatives.
For small businesses -- do that and then you also have a huge expansion you're gonna tell us about.
Absolutely so what cabbage does we provide working capital to small businesses the millions of businesses out there that are involved lifeblood of the economy 28 million out there.
And we do it in a different way we don't just look at a credit score we look at.
You know truly their business performance we start looking at eBay Amazon how much money they they sell through PayPal.
And it's interesting information about them on FaceBook and Twitter how they ship we can take up from landing on our -- underwrite them.
And have them funded seven minutes from the moment they -- -- our site and we do it we do it that fast.
From amounts from 550000.
Mark our previous guest Sam was saying that the college system was so antiquated.
Not in touch with the reality of the business and the commercial world right now it seems like your in touch with what's going on.
You're looking at social media you're not using an old system like a credit score to provide financing.
What's the reception that you're getting from the public when you do that from -- customers.
We're getting fantastic reception I enjoyed listening the other segment that you asked the question about.
You know are you optimistic it can are small business is optimistic I don't think you can -- -- business without being an optimist.
I mean you simply have to do it to do -- you have to do to get him we we did the same thing ourselves -- cabbage so where we're hearing we're hearing great things from customers especially the ones.
There'll we're looking at a whole new way.
I mean back in the database and even today banks have to walk into the stores and see what's going on and what cabbage can do is virtually walked as wooden -- see the product mix on the shelves.
If the customers are happy or not so happy in the front.
We can do it electronically and that's why we can deliver cash and seven minutes -- last.
And business you -- appreciate -- to deliver the seven minute.
And under cash sell online businesses only there is that presence on Amazon and -- -- eccentric but now you're doing it for the offline store that physical brick and mortar stores well.
That is correct we announced yesterday -- in partnership with into it in quick books specifically.
That we can now look.
With a customer's permission they give us access to their -- account.
And we can underwrite business and deliver them cash based on the data within their quick -- account that which is huge for us because.
We here today as you said we've historically were little odd more with online business and that there's more than four million businesses that use quick books to run their business.
And now we can help all -- -- city year.
Essentially targeting four million more businesses right now.
Absolutely we're we're seeing how many businesses that we can help within an actor and I mean an -- to -- -- Perfect partner for this they're trying to save small businesses time and money and they build something called the intuit partner platform.
That allows with a -- for permission.
To give us the right to pull in that data so we can instantly make those decisions you said before when -- do it fast and we say yes more than almost.
Do you ever make that mistake by saying yes.
Has it ever come back said.
To bite you in the -- who.
It could expect that yes our our our are its people or by laughing -- -- -- you have to.
They're -- get sore from time to time.
The -- absolutely I mean you don't you're not in the business of helping provide capital are doing anything without making some mistakes we make our share of them as well.
I would rather make those mistakes in a world where.
You know we can.
We can look at this data differently and learn from it and over time when you add day.
EBay Amazon and all -- kind of data along with quick books and UPS.
You're eventually going to be making better decisions than you -- with just a single data source which is what traditionally it's been used in -- credit score.
What's the average financing they provide.
I'm so we start anywhere from 500 dollars to 50000 dollars and we've been testing north of a 100000 dollars OPEC.
All right and I I had here the average is about 181000 dollars that about right.
The act in the average that one customer think that's correct I sort of gave you the min Max of what -- it is an 181000 is about right the cool thing is our customers.
Are very engagements they come back.
It really eight to twelve times a year to take cash from -- so if you wonder whether how the economy's doing and how small businesses doing.
Look at that as a leading indicator they're out there they're seeing deals -- taking cash and buying and really trying to get out there and grow their business and hopefully that help solve some of the problems for -- here.
Here earlier and again to help really good economy going it's a small businesses that are gonna do this not so if they need the money that signifies that there -- more positive on the outlook that they can grow their sales and their business and -- need money to get.
Absolutely because they don't want them by a bunch of stuff to put in a warehouse.
And all of a sudden let it sit there and wait I mean a great example.
Is we have a customer in this is this is ties in a while to the -- folks announcement and -- like she's blossomed from Kansas and she has a wedding business.
And she had a wedding coming up and needed cash to -- things to help run her business but banks -- tried banks and credit cards and everything else and she couldn't get the -- -- came to cabbage.
Got to quickly that -- bought you know centerpieces and table linens and chairs and was really able to rapidly expand her business I mean.
If folks don't get that and small businesses don't get that kind of serves as big companies -- and it's about time small businesses got it and that people like Randy didn't -- -- -- Are they ran I think it's you know a little not practical it's unsafe what do they say.
First to scratch that has met and then there entry because we're not we're not we're not the enemy to any.
Of traditional businesses out there we.
The banks have a problem that they can't help that mean they don't know we're all this data is may have a hard time pulling it and understanding it.
But most importantly it's just not economical for banks to put outlines.
And -- -- 250000 dollars to what we can do is -- with them.
-- -- as a white label solution of the banks and allow them to help all the small businesses that they currently have checking account when they can't do anything else -- so we can come and and allow them to use our platform to actually help parents while businesses and that's what we're talking the number thanks.
Mark they need you -- some of our chatters questions right now isn't anyone listening asks what -- your interest rates.
Well we provide.
We provide cash -- Or anywhere from one to six months and it's gonna depend on their independent business and -- and there are their individual credit information as well.
But they'll pay anywhere from two to 18% depending on whether they keep it for one month or six months to 18% but -- -- -- -- credit today tapers.
-- to 18% of the of the advancement.
No we did check credit scores but you know like any business when we started out the credit score unfortunately was too high of of a requirement in overtime.
We've gradually been able to take the -- -- if you will which is really business performance and make it.
But I mean checking credit scores I mean you can make sure that you're not lending to -- to dead people or pets which believe -- -- not actually come through from time to time.
And finally hundred pay better than their businesses.
It's another story.
And finally mark -- questioning -- giving it 152 answer small businesses had two major problems first government policies second Obama care.
They'd have many more problems than that I agree.
I mean the federal government had thirty billion dollars to about small businesses and could do because they did have an automated process to do it.
So in some sense that the government wants to help they need help -- Galloway Atlanta.
Private industry get out there and help small businesses and give them in the same light up that they've given that as.
OK mark -- thank you so much the founder I was Lauren cabbage will put your website on the screen we really appreciate it.
And one final chat here -- is in anyone listening sounds like common sense things say don't expect.
To be taught in college vote learned at home yet -- basic interpersonal skills who.
Thanks for chatting and everybody that was a few that we -- -- -- our overhead to a quick break we'll be back insect.
Welcome back everybody okay finally lets us turn the spotlight on a small business -- two ladies on set to co founders of zine pack.
Can count in yellow and bringing back both under thirty and he turned two years ago.
Using 60000 dollars of your own money into nearly three million dollar company so congratulations to you can you tell us cleansing -- yes.
-- -- -- -- Is -- -- configuration of entertainment for super fans so we take entertainers celebrities and brands and create packages for their fans.
With custom magazines that we put together an exclusive -- -- that we make.
It had to be that you know your advisors and mentors and peers were telling you print is dead why are you doing this.
Absolutely my background is in publishing and -- is is -- music and both industries word and seeing a hard time.
So we decided to combined and we really thought you know the industry is not dead you just have to give somebody -- -- really cool to go out by.
-- -- which is disease which is moving -- campaign and at whatever price is pretty fun and give us some more information.
The consumer standpoint -- so Augustine -- DC area available while -- And typically the price of -- little -- is three or four dollars more than the standard.
At December CD so for example are George street -- -- they -- yesterday is available Wal-Mart for fourteen.
And I mean is there -- way how what's the hottest selling the path that you've done and then how do you do it -- -- compile it.
And we've done that haven't heard Justin Bieber Taylor -- obviously losing it's superstar and it's that that do really well but.
All of our theme packs have sold really well and again like pretty sad with George -- these are some diehard fans out there right.
What is the celebrity and the music artists reaction to.
It's still fun to see their reaction to an artist every one -- -- of -- friend but we love an artist get involved and every time we -- written out of project we have a meeting with yardage and decide.
What's gonna go inside and -- we're gonna build -- and it's it's so exciting as the process comes together.
What an artist in particular that we've done too easy packs for now is the 2011 American Idol winner Scotty mccreery and we did -- for his debut album and that first Christmas record.
And with the Christmas record.
His mom saying -- she box of photos of all of his Christmas pictures spent his entire life.
But all of these notes and hand written memories and you know crafts that -- it -- when he was in second grader third period and so we got the on the phone get on Thelma -- an Islamic -- through.
All this Christmas memories of him -- it's kind of a great way for.
The stars to share what they want to share with public I'm having -- little keepsake.
Package as well.
-- -- company from here.
We're really expanding into other verticals so movies fashion video games obviously -- sweet spot has been music but we really see the configuration being applicable and a lot of other -- I recommend anybody now -- can tell -- -- Probably not yeah.
I'm happy I actually really really exciting except we're excited that our first -- -- packs will be coming out later this year Culpepper sports scene packs will be coming out later this year as well -- -- very nice I'm excited for some -- -- -- Especially.
And I knew I was saying this earlier but you really have grown into a two point six million.
Dollar company in terms of sales last year that was growth of 400%.
Do have that right.
Having been really fortunate last year consumers spent almost ten million dollars buying -- acts and this year we're expecting consumer spending -- close to twenty million dollars.
So would -- people when they say it's all digital media right now the CD is dead.
You know we don't think that tangible entertainment as -- going to go way because I mean you read as many iBooks as everybody else and we love digital entertainment here.
But they're always going to be fans that you won something tangible conduct artist that your blood -- the properties that you -- it's never gonna be enough to just how to turn your phone -- have an iPad you're always count on something you feel can act states that -- and that experience put into their college for.
I went to college for business marketing campaign -- I think.
Okay are using your degree and -- -- diseases a hot topic in the news these days especially the graduation upon us.
That things that you really -- from -- -- -- interpersonal skills that you warning call agent negotiating and working with people that not -- -- the you know this is how you write a business plan in the -- your finances but.
Those are the things that I think we've found we've been -- -- a lot but they'll lessons that you learn in college that.
Serbia every day are are the ones dealing with people and working -- -- -- so colleges but in general wake up in the morning and say wow way.
Found my own company and I employees other people.
And just angry that -- even thirty.
Think every day -- -- constantly surprised by you know the success we've had it worse so thankful and you know we love working with all of our partner isn't really excited about the coming months and occurring -- other vertical.
What advice would you give to other entrepreneur is out there.
I'd see just believing yourself we had so many people tell us magazine -- was a terrible idea and -- it would never Wear.
And we -- so you know what made -- -- right but we're gonna give it a shot and I'd rather trying failed and not try at all and you have a block.
We do we have a blog called the -- -- -- stock con -- In all these meetings in various outings people would ask us but it was -- to start a company being two females so young and the obstacles that we face.
So we decided to write it all down and and share with everybody else.
And -- sharing it with us great segment what a wonderful idea I didn't know about it so I'm glad to have learned and maybe.
See you on the rest of this journey tin cup and Britney.
-- -- co founders of zine Pak thank you so much and thank you to everybody for Westinghouse the small business -- Sam lines in the naval -- that in my house.
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