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Will Coronavirus Drive Permanent Shifts in Shopping Behavior?

By: US Chamber of Commerce

Will Coronavirus Drive Permanent Shifts in Shopping Behavior?
More online grocery orders, more buying in bulk, and more virtual store experiences are some of the likely changes.
By: Joan Verdon, Contributor

Grocery delivery platforms like Instacart are seeing dramatic spikes in sales from customers, many of whom are trying online grocery shopping for the first time. — Instacart
Retailers will be feeling the impact of the coronavirus crisis long after the quarantines, store closings, and social distancing rules have ended.
It is likely to create permanent shifts in consumer behavior that retailers need to start preparing for, experts told CO—.
Americans will change how and where they shop, and retailers will change how they interact with customers and how they plan for future pandemics. Here’s what retailers can expect:

An accelerated shift from stores to e-commerce, particularly in grocery
E-commerce sales, in general, are expected to surge, as shoppers stay home during the crisis, but grocery sales are where the biggest long-term impact could occur.
Grocery delivery platforms such as Instacart, Walmart Grocery, and Shipt are seeing dramatic spikes in sales, much of which likely is driven by new customers who are trying online grocery shopping for the first time, Keith Anderson, senior vice president of strategy and insights for e-commerce performance analytics company Profitero, told CO—.
“It could be a new population is being incentivized or encouraged to try shopping this way,” Anderson said.
Those first-time online grocery buyers have a high probability of converting to that way of shopping permanently.
“If you go to the trouble of loading your 20 or 30 items on any online grocery site, the likelihood that in a couple of weeks you’ll come back and order most of those things again is pretty high,” Anderson said. “So, when you look at the shift in consumption for that household, it really moves a lot of volume from brick and mortar to ordering online.”
“This really should be a strong signal for many to be better prepared should something similar happen [in the future].”
Ronen Lazar, CEO, and co-founder of INTURN

Coronavirus is introducing a new generation of shoppers to stock-up and buy-in-bulk shopping
Before, Gen Z and millennial consumers, who came of age with online shopping, were accustomed to getting anything they needed delivering to their homes within a day or two. They never needed to stock up in advance because they could get everything they needed, on-demand.
Now, even Amazon is telling them it could take two weeks or more to get a roll of toilet paper delivered, and, like their older generational cohorts who recall the brick-and-mortar-only shopping era, they are spending entire days searching sold out stores for it and other supplies.
Warehouse club Costco has already seen a coronavirus-related surge. Sales were up 13.8% year-over-year in February, the company reported in its second-quarter earnings release.

Retailers also will move away from on-demand buying
A surge in consumer demand isn’t the only reason shoppers are seeing so many empty shelves in the toilet paper and disinfectant aisles. Retailers, like millennial shoppers, have also grown accustomed to getting inventory they need on-demand from manufacturers.
Retailers have moved to keep far less inventory in stock, and manufacturers, who also are afraid of ending up with too much excess inventory on hand, are producing goods on more of an as-needed schedule, Ronen Lazar, CEO, and co-founder of INTURN, told CO—. INTURN is a New York-based enterprise solutions platform that lets manufacturers track and sell excess inventory.
The current crisis, Lazar said, highlights the need for retailers and manufacturers to improve their digital supply chain operations to better balance the desire for lean inventories with the need to be ready for surges in demand. “This really should be a strong signal for many to be better prepared should something similar happen [in the future],” he said.

Retailers will rethink in-store experiences
Joe Pine, author of “The Experience Economy,” told CO— he believes consumers will return to stores, malls, and social gathering places after the crisis passes. However, the crisis will make retailers look for more ways to deliver virtual experiences, and to interact with shoppers online, rather than focusing primarily on drawing crowds to their stores.
He expects stores will invest in virtual experiences like in-store demonstrations that can be viewed online or virtual salespeople who can engage with shoppers.
“Even if it dies down more quickly than expected, they’re going to recognize we have to be ready for the next thing,” Pine said.

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Everything You Need to Know About Coronavirus Federal Small Business Stimulus Aid Programs

By U.S Chamber of Commerce https://www.uschamber.com/co/start/strategy/federal-small-business-stimulus-aid-programs-guide

Everything You Need to Know About Coronavirus Federal Small Business Stimulus Aid Programs
A breakdown of all the federal programs and aid for small business coronavirus assistance.
Three separate packages approved by Congress and signed by President Trump over the past weeks combined offer a variety of assistance to businesses. Here’s a breakdown of what’s in those packages and how your business can take advantage of these relief efforts. We will continue to update this story as we obtain more information.

Coronavirus Preparedness and Response Supplemental Appropriations Act         https://www.congress.gov/bill/116th-congress/house-bill/6074
What is it?
Signed into law on March 6, The Coronavirus Preparedness and Response Supplemental Appropriations Act provides $8.3 billion in emergency funding for federal agencies to respond to the coronavirus outbreak, enabling the U.S. Small Business Administration to offer $7 billion in disaster assistance loans to small businesses impacted by COVID-19.

What does it mean for small businesses?
The SBA is offering designated states and territories low-interest federal disaster loans to small businesses suffering substantial economic harm as a result of the coronavirus.

These loans may be used by small businesses to pay fixed debts, payroll, accounts payable and additional bills that can’t be paid because of COVID-19’s impact. The interest rate is 3.75% for small businesses without other available means of credit. The interest rate for non-profits is 2.75%. Businesses with a credit available elsewhere are not eligible.
The SBA loans come with long-term repayments, up to a maximum of 30 years, in an effort to keep payments affordable. Loan terms are determined on a case-by-case basis, according to individual borrower’s ability to repay.
The SBA has amended its disaster loan criteria to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through December 31, 2020, will be automatic. Hence, borrowers of home and business disaster loans do not have to contact SBA to request a deferment.

Where can I learn more?
You can apply for an SBA Economic Injury Disaster Loan here.       https://www.sba.gov/disaster-assistance/coronavirus-covid-19#/
Read our full story on SBA Disaster Assistance Loans.                        https://www.uschamber.com/co/run/business-financing/sba-disaster-assistance-loans-guide
SCORE is offering assistance in filling out SBA loan applications     https://www.score.org/coronavirus
Small Business Development Centers are also offering assistance    https://americassbdc.org/small-business-consulting-and-training/find-your-sbdc/
For everything, you need to know about applying for a small business loan, see the U.S. Chamber’s Small Business Loan Guide.                https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf

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SCORE eNews | April 2020

The following post is from the SCORE website.

 SCORE eNews
April 2020

Greetings! During these unprecedented times, SCORE is here for you. View our resources in this month’s issue to help your business during the COVID-19 crisis.

Plus, in honor of National Volunteer Month, we celebrate our volunteers who help make our work possible. We invite you to volunteer and aid our mission to foster vibrant small business communities.

While you may be facing uncertainty, there is one thing you can be certain of SCORE is here for you.

More than ever, challenging times call for trusted business guidance and resources. We offer practical advice and insightful tips based on years of experience.
Remote Mentoring
Our expert mentors offer free, personalized assistance to address the current crisis to help you adapt your business. Remote mentoring services are available via phone, email, video, and chat. Find a mentor today.
Local Chapter Workshops and Events
We continue to offer SCORE LIVE webinars and online workshops. In-person local chapter workshops may be hosted online or postponed. Please check with your local chapter for updates.
Please join us for these upcoming LIVE webinars on your coronavirus-related concerns.   https://www.score.org/content/take-workshop

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SCORE, Your Business Resource

SCORE

For over 50 years, SCORE has served as America’s premier source of free business mentoring and education.

As a resource partner of the U.S. Small Business Administration (SBA), SCORE has helped more than 11 million entrepreneurs through mentoring, workshops and educational resources since 1964.

With SCORE, you are not alone on your business journey.

View upcoming live webinars
SCORE hosts free, LIVE webinars every week on small business tips and strategies. See our upcoming offerings.
Live Webinars                   https://www.score.org/live-webinars
Recorded Webinars         https://www.score.org/recorded-webinars

Browse Library If you’re looking for free business templates, e-guides, checklists, blogs, infographics, videos, and other helpful resources, SCORE is your destination.
https://www.score.org/content/browse-library

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How to get Federal Contracts for Your Small Business

Below is a posting by the SBA four days ago.

How to get Federal Contracts

for Your Small Business

When: Thurs. Feb. 27, 2020

Time:   8:30 am – 1:00 pm

Where: Liberty Hall Corporate Center

            1085 Morris Avenue

            Union, NJ 07083

Fee:     No Cost

Info:     Rogers Ramsey 908-527-1166

Each year, the federal government spends over $100 billion on goods and services from small business owners like you.

This seminar will provide small business owners with a general understanding of government contracting and the federal procurement process. Janett Peralta from the U.S. Small Business Administration and Maryanne Williams from the

UCEDC Procurement Technical Assistance Center will discuss:

How to conduct thorough market research to find opportunities

Techniques and strategies to market more effectively to win federal business

Subcontracting Opportunities

Contract types

Contracting Certifications

Federal Business Opportunities

System for Award Management (SAM)

Forecast

Don’t miss this free seminar and learn how to increase your chances of winning  contracts from the federal government.

REGISTER HERE

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Small Business Expo 2020 – PHILADELPHIA

The Small Business Expo 2020 is coming to Philadelphia on Wednesday, April 29, 2020, from 10:00 AM to 5:30 PM. Attendees of this expo will have an opportunity to network with thousands of businesses, entrepreneurs & start-ups

*Fast-paced speed-networking sessions to build your network.
*Establish hundreds of new & valuable contacts.
*Interact with the movers and shakers of small businesses.
*Leave the show with qualified and targeted sales leads.
*Surround yourself with passionate business owners.

These are the 5 different levels of registration.
1. BRONZE, Exhibitor Hall, Workshops, Keynote Speakers, Business Card Exchange. Free.
2. SILVER, BRONZE PERKS, PLUS: Access to Speed Networking Sessions. Cost of $28.16.
3. GOLD, BRONZE & SILVER PERKS, PLUS: Access to Networking Happy Hour with Open Bar & VIP Express Check-In (skip the check-in line). Cost $54.67
4. VIP (Most Popular!) BRONZE, SILVER & GOLD PERKS, PLUS: Lead Scanner App (scan badges & collect contact info) & Priority Seating in Workshops & Speed Networking (skip the line) Cost $107.72
5. VIP + Eblast (Best Value!) BRONZE, SILVER, GOLD & VIP PERKS, PLUS: We will include your company’s advertisement in our post-show email to the attendees. Cost $266.85.

My colleagues at Keystone Business Brokers look forward to meeting you at the Expo.

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Traditional Marketing Techniques

Traditional Marketing Techniques

Recently, I spoke to two entrepreneurs about possible ways of marketing their business. I sensed from our conversation that they were not fond of online promotion. They were not knowledgeable about online marketing and they were looking for an alternative way to promote their business. Therefore, I did not suggest any digital marketing media such as websites, blogs or social media. My suggestions were time-tested old school techniques.

Get involved with the community by joining the Chamber of Commerce or Rotary. These organizations will help you get connected with the local community. You can participate in charity fundraising events, donate your time and services, or do public speaking engagements that demonstrate your expertise on a particular topic.

Mail/email marketing is a strategy to connect with your customers and prospects. You can use mail/email to send out routine information like appointment reminders, but you can also use mail/email to send out marketing materials like newsletters

Newsletters are a means of keeping your consumers informed. Your newsletter may include news articles related to different topics ranging from industry news to current promotions. Giving out tips is a customer service technique of reassuring customers that you care about their satisfaction, even when they don’t need to come into your office or store.

Attending trade shows and fairs will create brand awareness in the community for your business. This gives potential new customers and suppliers a chance to view your brand. Something as simple as a free sample of your product or service can be a stimulus in creating interest.

Hopefully, you found some of these suggestions helpful.

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Social Media Advertising vs Traditional Advertising

Social Media Advertising vs Traditional Advertising

Advertising media in America had its inception almost three hundred years ago when Benjamin Franklin published the Pennsylvania Gazette which included print advertising. In 1922 WEAF NY offered ten minutes broadcast radio time for $100.00. In the late 1940s television was the new addition. About a decade ago we saw the emergence of a new medium online marketing.

I’ve read many articles online extolling the superiority of social media marketing over traditional advertising. There are strengths and benefits to each form of advertising. The one major benefit to small business owners is the low cost and flexibility of social media. Choose a comprehensive strategy that works for you.
When creating ad copy there are certain elements that are basic to different forms of advertising media whether using print advertising, direct mail, email or an online landing page. The fundamentals remain the same.

1. Make the offer, give the prospect a reason to learn more about the product or service.
2. The headline explaining the key benefit or offer you are making.
3. Include an image, one or two striking pictures that illustrate the offer.
4. The body of the ad includes details about the offer, details about the store or product and any other information you want to highlight.
5. A call to action. Set a time limit, clear and concise instructions for what the readers should do.
6. Include contact information with the logo.

Please leave comments on topics would be interested in reading.

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Social Media Marketing for Small Business

Social Media Marketing for Small Business

Modern advertising has traditionally been the domain of print, broadcast and direct mail media. These forms of advertising have required large financial expenditures that were out of reach for most small businesses. Print promotions required an advertising agency to create artwork, and write copy adding to the cost of the ad. Television advertising requires scriptwriters, artists, film crews and other support personnel again, a major expense.

The internet has ushered in a new dawn with the advent of social media marketing which has no financial expense, just the cost of your time. This democratization of advertising and sales promotion had given small businesses the ability to reach a large audience. Software to create graphics, photos and video are available at very reasonable prices. An example is an ad created by my former students who were marketing management majors at Penn State. They had limited experience with camcorders, editing software, and scriptwriting, but they created a commercial for a small business.
https://www.dropbox.com/s/6aaptd5ean0x5i8/Our%20Family%20Cafe.mp4?dl=0
With some effort, you can do the same.

Here is a list of the top social media marketing sites.
1. Facebook (www.facebook.com) Best for B2C (business to consumer)
2. Twitter (www.twitter.com)
3. LinkedIn (www.linkedin.com) Best for B2B (business to business)
4. Instagram (www.instagram.com) Best for selling visually-oriented products.
5. Pinterest (www.pinterest.com) An image curation website
6. Youtube (www.youtube.com) video-hosting website
7. Yelp (www.yelp.com) Crowd-sourced review forum
8. MailChimp (www.mailchimp.com) email marketing service

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Buy a Business or Start a Business

Should You Buy a Business or Start a Business

The big dilemma most entrepreneurs face when deciding to go into a business is the decision to buy an existing business or start a new venture. There are pros and cons to both which we will discuss in this article.

If you have limited financial resources starting a home-based service business may be your best choice. The upside to this type of start-up is low overhead, and tax deductions for using a portion of your home and vehicle. Beware, home-based businesses are scrutinized by the IRS.

When starting a new business you will need a comprehensive business plan to guide this venture in the early stages.
A new business requires a real estate location, developing a supplier network and intense marketing to build your customer base. Since your new business has no performance record, it stands to reason that financing will be difficult. One last caveat, 50% of new businesses fail within five years.

If you’re serious about going into business and you have the financial resources your best strategy is buying an existing business. The advantages to buying an existing business are financial records that you can check before making the purchase. Established supplier alliances, a customer base, a physical location, and most important a company identity. Buying an established business is your best bet for success.