Tag: small business

  • Facebook goes places

    Facebook goes places

    The relaunch of local discovery service Facebook Places was low key and remained un-noted until picked up by a German blogger this week.

    Facebook’s local service is, on first look, quite impressive with it pulling together various features and data sources to give a quick guide to what’s on and what’s attractive in a city based on a user’s history.

    In that respect it’s a clear threat to Yelp!, Tripadvisor and Google; particularly given the convenience of using a single app and getting recommendations based on the service most people spend the bulk of their online time upon.

    At this stage it doesn’t appear the service is doing too much with the local business feature but it’s only a matter of time before those details start being fed into the algorithm as well.

    Once again it shows why listings are important for local businesses. It may also be that Facebook is cracking the largely untapped local business market.

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  • When the virtual mob comes calling

    When the virtual mob comes calling

    In China, the human flesh search engines track down people who have offended the herd sensibility.

    As Australia becomes more conservative and reactionary, the same phenomena is developing Down Under. Aussie businesses now have to be prepared for when they come to the attention of an online lynch mob.

    Last weekend a South Australian dairy company, the Fleurieu Milk and Yoghurt Company, announced it would not be seeking Halal certification for its yoghurts following concerted harassment from bigots, a decision that will cost it a $50,000 contract with Emirates Airlines.

    Fleurieu was not the first company to be targeted by groups of online bigots, a few weeks earlier Maleny Dairies from the Queensland Sunshine Coast announced it would not seek Halal certification for after being deluged with queries from similar groups.

    For a company of any size, a wave of abuse from online hate groups is difficult to handle but for smaller businesses like rural dairy companies it’s particularly hard as there’s little training for dealing with obnoxious and ill informed virtual lynch mobs and the resulting drop in morale can affect the entire workforce.

    Many managers would draw the conclusion that social media is a dangerous place that only exposes staff and the business to these vile individuals, however withdrawing totally from online channels might actually magnify the effects of being targeted as companies don’t see the internet campaigns developing.

    Reacting to a hate campaign is difficult however and much of how a company deals with being the target of one comes down to the owners’ and managers’ appetite for dealing with such a crisis.

    Submit to the mob

    The quickest way of defusing the situation is to agree to the mob’s demands, as Maleny and Fleurieu did, which has the advantage of relieving the stress on staff and management distractions.

    Submission though is not without its risks; the mob may not be happy or agreeing to their demands may upset other customers who actually spend money with the business.

    This latter point is something Australia’s agricultural industry and governments should be paying attention to as Middle East nations takes over ten percent of the nation’s food exports.

    Agreeing to one group’s demands may also irritate other equally other vocal groups which could actually make the problem worse. Ultimately though it comes down to what a company’s management is most comfortable doing.

    Should you decide to go along with the mob, don’t equivocate. Be absolutely clear about what you are doing and why you are doing it. This is something both Fleurieu and Maleny diaries have done.

    Don’t engage

    If the choice is not to submit, either on principle or for commercial reasons, then it’s necessary to be prepared for continued criticism with staff and management coming under further stress. It’s important everyone is supported by the team in the face of often vile and crude behaviour.

    One of the key tenants of online marketing and community management is to engage with your critics, however there is a point where trying to engage with irrational people is pointless and possibly even counterproductive.

    When that point has been reached, then there is no need to reply to them and any inflammatory or provocative posts should be deleted. The saying of “don’t feed the trolls” applies.

    Should commenters become too strident or silly then they should be blocked and, if they are misbehaving on a social media site, their actions reported to the service’s management. Any threats of violence should be immediately documented and a complaint made to the police.

    Don’t provoke

    Provoking these groups is also a mistake, descending to their level of behaviour will only encourage them and their friends along with risking alienating your own supporters. Keep things professional and straight forward.

    Not being a dill yourself is something that could have heeded by one of the other businesses that found itself on the receiving end of an online lynch mob this week. Mark Clews, the proprietor of Tuk Tuk Hunter Valley, was on the receiving end of an online campaign after a snarky post about a vegetarian who visited his hamburger bar in the wine country north of Sydney.

    Reading the Tuk Tuk Facebook page quickly gives one the impression Clews enjoys an online fight and he certainly got one which led to his business receiving dozens of poor reviews and at least one critic set up a Facebook page, later taken down after legal threats, highlighting the business’ poor reviews.

    In a heated environment — be it vegetarianism, Halal certification or any sort of politics — it’s worthwhile business owners keeping their own personal views separate from their company’s online presence.

    The moral of all three of these stories is the internet is a tough place and in today’s increasingly intolerant society one not without its risks. While every business needs to have an online presence, it’s necessary to be prepared for when the online mob appears with virtual torches at your door.

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  • Googling your business

    Googling your business

    Google’s small business services have been a constant irritation of this site, with the view that local listings have been a missed opportunity for the service.

    Overnight, the search engine giant has launched their new Google My Business site to bring together the disparate services offered to local enterprises.

    At first look it’s a fairly slick way to get new businesses signed up, albeit dependent upon Google+ for the initial login. For businesses with existing Google small business accounts, the site directs you to the revamped Google Places administrator screen.

    The immediate observation is that Google+ integration is a weakness as it relies on one ‘real person’ account to administer the listing; this will create problems for business as staff leave and founders retire.

    Black Box Verification

    Another problem is the black box verification process still remains – it’s hard for businesses to keep their listings fresh and up to date when there’s a risk doing so will see their entries might be suspended for violating some vague rules.

    For local businesses it’s essential to have the search engine listing and the Google My Business site makes it easier to get it running, however the problems with Google’s local business strategy remain.

    With Google, Facebook and the other online empires neglecting small business, this market is still a great opportunity for a disruptive players.

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  • Solving a global capital crisis

    Solving a global capital crisis

    “We face a global capital crisis,” states Julia Hanna, the chair of crowdfunding platform Kiva.

    In a story written with Kiva board member and LinkedIn founder Reid Hoffman, Hanna discusses how crowdfunding platforms are replacing banks as the source for businesses around the world.

    Throughout world  banks have effectively stepped out of the small business market, despite the world being flooded with cash to keep the global economy afloat over the last five years. Hanna writes about the US experience;

    big banks currently reject more than 8 out of 10 loan applicants, and small banks reject 5 out of 10. Some estimates suggest that investment in small businesses has dropped as much as 44 percent since the Great Recession in 2008.

    While the Great Recession had a lot to do with the collapse in small business lending in the US and Europe, the decline in bank support for main street dates back to the first Basel Accords established in 1988.

    Basel judged banks’ risks on the classification on their assets – government bonds were the safest and domestic property was the preferred private sector asset with small business lending being a long way down the risk.

    Following the cues from regulators, banks favoured mortgages which they could them securitize and onsell to investors; this gave rise to the sub-prime lending markets, Collateral Debt Obligations and eventually the Great Recession itself.

    Six years after the great recession started and despite massive amounts of capital being injected into the banking system, the small business sector is still being capital starved.

    As Hanna and Hoffmann state in their article, crowdfunding sites like Kiva and community initiatives are changing the banking system and it could well be that today’s trading banks.

    Having neglected their core purpose of funding business and industry, are now as vulnerable to disruption as other industries as small businesses, entrepreneurs and communities look elsewhere for their capital needs.

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