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Kobster Brings Office Supplies Online For Indian Corporates
Ecommerce in India is a growing phenomenon. With successful Indian eCommerce companies like Flipkart selling products across categories, other Indian online retailers have also found niche markets to capitalize on, such as Nirogam, an ayurvedic product eTailer.
One such niche eTailer is Kobster, an online “one stop shop†for the office supply needs of Indian corporates. By focusing on a specialty market that has seen, and is guaranteed to see, increasing demand in the upcoming years, Kobster has become one of India’s hot eCommerce startups. Customers include Freshdesk, inLogic, ArrayShield and many more. Chennai businesses constitute their first major focus.
With product categories ranging from quintessential office supplies to cleaning supplies, vending machines, furniture and customizable printed products, Kobster has positioned itself as the Staples of India.
Offering flexible payment options such as cash on delivery, net banking and 21 days of credit for corporations, Kobster accommodates all levels of customer needs. They even offer free shipping on certain purchases.
Behind Kobster
There are three musketeers, Vineet Neeraj, Karthik Ramaiah and Mohan Gayam, three college school chums from SRM University.
After knowing each other for over seven years and having worked together on college projects, Vineet, Karthik and Mohan Gayam launched Kobster. Each founder manages a different aspect of the business: Vineet watches over marketing and sales, Karthik manages the technical aspects along with customer support and Mohan strengthens their product catalogue, ensuring the best deals from suppliers.
Before launching in September of 2012, Karthik worked at Cognizant and Mohan at HCL Technologies. Vineet, on the other hand, is no stranger to the startup world. He launched his first startup, Yippie, providing event services, before switching to a product startup, ArrayShield, based out of Chennai.
Runway to Success
Barely nine months old, the company has been selected as one of the 27 companies for “Runway to Success,†an event sponsored by Luftansa and ET NOW, a reality TV program that recognizes startups with promising business plans.
With an annual growth rate of 15-20%, the Indian market for office supplies and services is an appealing niche. Vineet says:
A Google India Survey states that 71% of SMEs use the Internet to search for vendors and suppliers.  So far India has witnessed the rise of B2C eCommerce. Now, we believe that the next boom will happen in B2B eCommerce and we are excited to be in this space.
In the next five years, the company plans on expanding from Chennai, where they are headquartered, to ten different cities in India. They also plan to strengthen their product categories by extending their offerings to different customer marketplaces such as hospitals and hotels.
The American office supplies behemoths are not present India. There are other startups in the market though, and the category is becoming quite popular among entrepreneurs.
Also, now that foreign retailers are coming to India, the future of foreign eCommerce investment in the Indian marketplace is poised for change.
Meanwhile, Kobster has an opportunity to build upon its early entry, create compelling technology with which to develop customer stickiness. Also, in a business that is inherently low-margin, commercially viable supplier relationships are critical. In India, logistics are still rather messy. Small startups have to handle complex supply chain and delivery issues, without the support of robust logistics companies.
By 2020, I suspect many of these issues will get sorted out and a set of successful eCommerce brands will establish themselves and Kobster is working hard to be one of those.
4 Reasons Wix and Squarepace Beat WordPress For Simple Website Creation
While WordPress is great, there are several other do it yourself web site tools on the market - two of my favorites are Wix and Squarespace - that might be better for some business owners.
What’s nice about these “non-Wordpress†services is that they offer an integrated solution for non-technical business owners.
They offer support (without having to Google for an answer), they offer a customized and limited number of plug-ins (not 10 million confusing plug-ins) and they’re very simple to use.  While WordPress offers support as well, I’v found that often it’s easier to “Google†the answer.
Here’s why I think Wix might be better for some businesses than WordPress
- Hand pick plug-ins
- Better technical support
- Better help section
- Curated templates
Finally, Wix recently launched 15 Business Management Apps for its 37+ million customers to use - these apps include features for invoicing, file sharing, social engagement and more.
I don’t think these apps are going to massively benefit Wix in any significant way, except one. Those customers who are just starting out online and maybe even their businesses can continue to turn to Wix for more than just a web site but also to help them manage their business.
Docstoc Acquires BestVendor, Builds Small Biz Resource
Small business owners are always in need of resources. Maybe you’re looking for a sample operating or nondisclosure agreement you can use as a guide on how to craft your own. Or maybe you are hunting for recommendations on the latest Cloud-based software to improve your company’s efficiency.
Document subscription service Docstoc seeks to be a leading resource for all these needs with announcement today of its acquisition of software recommendation site BestVendor.
Financial details of the acquisition were Read More
The post Docstoc Acquires BestVendor, Builds Small Biz Resource appeared first on Small Business Trends.
Shutterstock Deal Gives You Free Images for Facebook Ads
Facebook has been actively courting small businesses for some time now. And three new features in particular should appeal to smaller companies with limited resources.
First, Facebook and Shutterstock have announced a deal that will give advertisers free access to Shutterstock’s huge library of images for use in their Facebook ads. This feature will be introduced over the next few weeks.
On the official Shutterstock Blog, Vice President David Fraga explained how the free images for Facebook ads feature will Read More
The post Shutterstock Deal Gives You Free Images for Facebook Ads appeared first on Small Business Trends.
Budget Friendly iPhone Could be Unveiled September 10
If you’re looking for a budget friendly smartphone but are more comfortable with one of the leading brands in the industry, a solution could be coming as early as September 10.
That’s the date scheduled for a big announcement by smartphone and tablet industry leader Apple Inc. Certainly Apple has not been known for affordable technology in the past.
After all, currently the Apple iPhone 5 without contract or subsidies retails for more than $600.00 on sites like Amazon.
However, Read More
The post Budget Friendly iPhone Could be Unveiled September 10 appeared first on Small Business Trends.
4 Reasons Wix and Squarepace Beat WordPress For Simple Website Creation
While WordPress is great, there are several other do it yourself web site tools on the market - two of my favorites are Wix and Squarespace - that might be better for some business owners.
What’s nice about these “non-Wordpress†services is that they offer an integrated solution for non-technical business owners.
They offer support (without having to Google for an answer), they offer a customized and limited number of plug-ins (not 10 million confusing plug-ins) and they’re very simple to use.  While WordPress offers support as well, I’v found that often it’s easier to “Google†the answer.
Here’s why I think Wix might be better for some businesses than WordPress
- Hand pick plug-ins
- Better technical support
- Better help section
- Curated templates
Finally, Wix recently launched 15 Business Management Apps for its 37+ million customers to use - these apps include features for invoicing, file sharing, social engagement and more.
I don’t think these apps are going to massively benefit Wix in any significant way, except one. Those customers who are just starting out online and maybe even their businesses can continue to turn to Wix for more than just a web site but also to help them manage their business.
4 Reasons Wix and Squarepace Beat WordPress For Simple Website Creation
While WordPress is great, there are several other do it yourself web site tools on the market - two of my favorites are Wix and Squarespace - that might be better for some business owners.
What’s nice about these “non-Wordpress†services is that they offer an integrated solution for non-technical business owners.
They offer support (without having to Google for an answer), they offer a customized and limited number of plug-ins (not 10 million confusing plug-ins) and they’re very simple to use.  While WordPress offers support as well, I’v found that often it’s easier to “Google†the answer.
Here’s why I think Wix might be better for some businesses than WordPress
- Hand pick plug-ins
- Better technical support
- Better help section
- Curated templates
Finally, Wix recently launched 15 Business Management Apps for its 37+ million customers to use - these apps include features for invoicing, file sharing, social engagement and more.
I don’t think these apps are going to massively benefit Wix in any significant way, except one. Those customers who are just starting out online and maybe even their businesses can continue to turn to Wix for more than just a web site but also to help them manage their business.
3 Big Payoffs with Facebook Hashtags
While Facebook hashtags are still in their infancy, they offer potential for significant payoffs in three basic areas:
- Increasing brand awareness
- Simplifying promotional efforts
- Understanding customers
We’ll take just a few moments hashing (sorry) these out. These three advantages relate to and interconnect somewhat with each other, so today instead of walking a straight path; we’re going to be linking together a chain of ideas.
Brand Awareness
I just did a Facebook search for #Applebee and #Applebees. It turns out that the corporate arm of the restaurant chain - although it has almost 4.5 million “likes†and right now more than 160,000 people are talking about it - has never used its logical brand hashtags.
Certainly, Applebee’s would love Facebook users to visit the restaurant’s page and perhaps comment on the big photo of their “Cowboy Burger†that they have posted. However, navigating to their page requires keyboarding. Had they said #Applebee’s new Cowboy Burger they would have immediately given Facebook users a “clickable†path to current posts about Applebee’s, including the photo of their succulent new burger.
When Jane Doe in Anywhere USA posts, “Had a great waitress at #Applebee’s last night,†users who click on the hashtag would likely see the restaurant’s posts as well. As Facebook users - and Applebee’s customers - get more tuned into using hashtags, the company is essentially unleashing hoards of promoters parading around in virtual sandwich boards. And this is where brand awareness links to our next topic.
Simplify Promotions
Advertising, marketing and promotions are all about “spreading the word†and with Facebook hashtags you have a very powerful tool that can dramatically increase your reach. If you have an interesting post, photo, or perhaps a contest of some kind, be sure to associate it with a hashtag. Make it easy for others to tell people about what you have going on.
Don’t we all lust for the web photo, video or post that goes viral and gives us our 15-minutes of fame? Hashtags are a step in that direction. And while they probably won’t get you 100,000 new fans on your Facebook page, they will amp up your acquisition rate if used well.
Associating a small number of hashtags with your business gives you the ability to focus, control and judge the effectiveness of promotional efforts quite easily and this is where we link to our final advantage of Facebook hashtags.
Understand Your Customers
Joe, proprietor of Joe’s Widgets, is making great use of #joeswidgets on Facebook. He has seen sales surge with the implementation of #bogowidgetfriday, but also his store’s general hashtag has become a clearing house for customer feedback and recommendations.
I’m all for making things simple and being able to take the pulse of customers on one Facebook page is a social media marriage made in heaven. How valuable is it to hear what customers are saying about you when you’re out of the room? A hashtag of your brand makes it possible.
Â
As I said at the top, Facebook hashtags are still the new kid on the block. And while they will eventually develop into their own beast, some of the advice that applies to Twitter also applies on Facebook, with the number one rule being: Don’t abuse hashtags.
I would also advise you to strictly limit the number of Facebook hashtags you use and spend some time planning them and developing your strategy before you commit to their use.
Photo Credit: http://www.flickr.com/photos/melenita/9404358648 â€Hashtags on Facebook,†© 2013 Maria Elena, used under a Creative Commons Attribution-ShareAlike license: http://creativecommons.org/licenses/by-sa/2.0/ ÂMegan Totka is the Chief Editor for ChamberofCommerce.com. She specializes on the topic of small business tips and resources. ChamberofCommerce.com helps small businesses grow their business on the web and facilitates connectivity between local businesses and more than 7,000 Chambers of Commerce worldwide.
3 Big Payoffs with Facebook Hashtags
While Facebook hashtags are still in their infancy, they offer potential for significant payoffs in three basic areas:
- Increasing brand awareness
- Simplifying promotional efforts
- Understanding customers
We’ll take just a few moments hashing (sorry) these out. These three advantages relate to and interconnect somewhat with each other, so today instead of walking a straight path; we’re going to be linking together a chain of ideas.
Brand Awareness
I just did a Facebook search for #Applebee and #Applebees. It turns out that the corporate arm of the restaurant chain - although it has almost 4.5 million “likes†and right now more than 160,000 people are talking about it - has never used its logical brand hashtags.
Certainly, Applebee’s would love Facebook users to visit the restaurant’s page and perhaps comment on the big photo of their “Cowboy Burger†that they have posted. However, navigating to their page requires keyboarding. Had they said #Applebee’s new Cowboy Burger they would have immediately given Facebook users a “clickable†path to current posts about Applebee’s, including the photo of their succulent new burger.
When Jane Doe in Anywhere USA posts, “Had a great waitress at #Applebee’s last night,†users who click on the hashtag would likely see the restaurant’s posts as well. As Facebook users - and Applebee’s customers - get more tuned into using hashtags, the company is essentially unleashing hoards of promoters parading around in virtual sandwich boards. And this is where brand awareness links to our next topic.
Simplify Promotions
Advertising, marketing and promotions are all about “spreading the word†and with Facebook hashtags you have a very powerful tool that can dramatically increase your reach. If you have an interesting post, photo, or perhaps a contest of some kind, be sure to associate it with a hashtag. Make it easy for others to tell people about what you have going on.
Don’t we all lust for the web photo, video or post that goes viral and gives us our 15-minutes of fame? Hashtags are a step in that direction. And while they probably won’t get you 100,000 new fans on your Facebook page, they will amp up your acquisition rate if used well.
Associating a small number of hashtags with your business gives you the ability to focus, control and judge the effectiveness of promotional efforts quite easily and this is where we link to our final advantage of Facebook hashtags.
Understand Your Customers
Joe, proprietor of Joe’s Widgets, is making great use of #joeswidgets on Facebook. He has seen sales surge with the implementation of #bogowidgetfriday, but also his store’s general hashtag has become a clearing house for customer feedback and recommendations.
I’m all for making things simple and being able to take the pulse of customers on one Facebook page is a social media marriage made in heaven. How valuable is it to hear what customers are saying about you when you’re out of the room? A hashtag of your brand makes it possible.
Â
As I said at the top, Facebook hashtags are still the new kid on the block. And while they will eventually develop into their own beast, some of the advice that applies to Twitter also applies on Facebook, with the number one rule being: Don’t abuse hashtags.
I would also advise you to strictly limit the number of Facebook hashtags you use and spend some time planning them and developing your strategy before you commit to their use.
Photo Credit: http://www.flickr.com/photos/melenita/9404358648 â€Hashtags on Facebook,†© 2013 Maria Elena, used under a Creative Commons Attribution-ShareAlike license: http://creativecommons.org/licenses/by-sa/2.0/ ÂMegan Totka is the Chief Editor for ChamberofCommerce.com. She specializes on the topic of small business tips and resources. ChamberofCommerce.com helps small businesses grow their business on the web and facilitates connectivity between local businesses and more than 7,000 Chambers of Commerce worldwide.
Roam the Planet with a WiFi Hotspot from GlobalGig
Traveling for business today is a bit different than it used to be. In addition to making sure you have all your power supplies for laptop, tablet, cell phone, you need to make sure you can get connected to the Internet. That is not always easy, or affordable, but if you travel a lot (or even a little), this review of the Globalgig mobile Wifi hotspot is for you.
This little mobile WiFi hotspot is a gem.
As most readers know, I test a fair number of devices. So at any one point in time, I probably have four cell phones in my shop. I can tell you that in my travels even I get stuck with no cell phone signal, unable to make a call. But I have used this Globalgig mobile WiFi hotspot to connect my laptop or Nexus 10 tablet and fire off an email or hook into Google Voice and send a text message.
It has worked when all other devices failed. Now, connectivity by cell phone and wireless devices in one place is never the same, but I have been impressed with this handheld gadget.
On a 12-month contract, you can get up to 1 gigabyte of data for $30/month. The device is free when you commit to that plan. If you want the device for only 30 days, for example, if  you are heading to Europe for a two week vacation, you can buy the device for $79 and the plan is $60. You can play with their plan calculator to work out what’s best for you.
Without evaluating various wireless carriers, I am pretty sure you can’t touch the rates, in all the different countries, that Globalgig offers. $30/month and it works in 40 countries, for that same price. You can connect up to 5 devices at one time. It is a 3G signal, which is pretty fast.
The company sent me a media loaner and I have appreciated it immensely. Depending on my upcoming travel schedule, I may just sign up for the paid option.
What I Really Like:
- Small - As you see in the photo, it fits in my hand. It is small enough not to take up much space, but big enough that I won’t lose it.
- Battery life - On standby, it lasts for days, but fully on I think I had at least three to four hours of intense downloading and uploading on one charge.
- You can get a SIM-only version - Plug it into your iPad or Android tablet. Unfortunately for US users, the SIM is not available here yet, it’s only in the UK.
What I’d Like to See:
- I have a model that may be one generation old and it sometimes won’t turn off without repeated efforts. Having a lot of hardware pass through my hands, this sort of thing happens so if it was my unit, I would have returned it for a new unit.
- Online access to how much data has been used for the month. Since the device doesn’t have any sort of display, you don’t know. The website says this is coming soon.
Overall, if you travel a lot or need a mobile WiFi hotspot so you are not stuck paying extra fees at hotels, airports or cafes, then this mobile broadband device is for you. I would encourage anyone who wants affordable and secure wireless access at a low cost to try Globalgig.
Yes, it is one more device you have to account for. But I have found it worthwhile and when compared to my other data plan options, the price is right.
Roam the Planet with a WiFi Hotspot from GlobalGig
Traveling for business today is a bit different than it used to be. In addition to making sure you have all your power supplies for laptop, tablet, cell phone, you need to make sure you can get connected to the Internet. That is not always easy, or affordable, but if you travel a lot (or even a little), this review of the Globalgig mobile Wifi hotspot is for you.
This little mobile WiFi hotspot is a gem.
As most readers know, I test a fair number of devices. So at any one point in time, I probably have four cell phones in my shop. I can tell you that in my travels even I get stuck with no cell phone signal, unable to make a call. But I have used this Globalgig mobile WiFi hotspot to connect my laptop or Nexus 10 tablet and fire off an email or hook into Google Voice and send a text message.
It has worked when all other devices failed. Now, connectivity by cell phone and wireless devices in one place is never the same, but I have been impressed with this handheld gadget.
On a 12-month contract, you can get up to 1 gigabyte of data for $30/month. The device is free when you commit to that plan. If you want the device for only 30 days, for example, if  you are heading to Europe for a two week vacation, you can buy the device for $79 and the plan is $60. You can play with their plan calculator to work out what’s best for you.
Without evaluating various wireless carriers, I am pretty sure you can’t touch the rates, in all the different countries, that Globalgig offers. $30/month and it works in 40 countries, for that same price. You can connect up to 5 devices at one time. It is a 3G signal, which is pretty fast.
The company sent me a media loaner and I have appreciated it immensely. Depending on my upcoming travel schedule, I may just sign up for the paid option.
What I Really Like:
- Small - As you see in the photo, it fits in my hand. It is small enough not to take up much space, but big enough that I won’t lose it.
- Battery life - On standby, it lasts for days, but fully on I think I had at least three to four hours of intense downloading and uploading on one charge.
- You can get a SIM-only version - Plug it into your iPad or Android tablet. Unfortunately for US users, the SIM is not available here yet, it’s only in the UK.
What I’d Like to See:
- I have a model that may be one generation old and it sometimes won’t turn off without repeated efforts. Having a lot of hardware pass through my hands, this sort of thing happens so if it was my unit, I would have returned it for a new unit.
- Online access to how much data has been used for the month. Since the device doesn’t have any sort of display, you don’t know. The website says this is coming soon.
Overall, if you travel a lot or need a mobile WiFi hotspot so you are not stuck paying extra fees at hotels, airports or cafes, then this mobile broadband device is for you. I would encourage anyone who wants affordable and secure wireless access at a low cost to try Globalgig.
Yes, it is one more device you have to account for. But I have found it worthwhile and when compared to my other data plan options, the price is right.
5 Things Every Online Business Can Learn from Amazon.com
This technology is not new and in fact I’d first seen this technology with SitePal many years ago.
The point is, if you sell online it makes sens to be a careful observer of Amazon.com and how they sell and their tactics and strategies.  A few things they’re doing very well:
- Fast and extensive search
- Easy buying process
- Personalized recommendations
- Great customer support
- Fast delivery
The Holiday’s will be here VERY soon - are you ready?
5 Things Every Online Business Can Learn from Amazon.com
This technology is not new and in fact I’d first seen this technology with SitePal many years ago.
The point is, if you sell online it makes sens to be a careful observer of Amazon.com and how they sell and their tactics and strategies.  A few things they’re doing very well:
- Fast and extensive search
- Easy buying process
- Personalized recommendations
- Great customer support
- Fast delivery
The Holiday’s will be here VERY soon - are you ready?
Video Conference Etiquette: The Simple Do’s and Dont’s
And although video conferences are often the next best thing to meeting in person, it’s important to follow some simple etiquette rules in order to maintain business productivity. According to Cenero, an audio and visual conferencing provider based in Pennsylvania, there are some rules of etiquette that should be followed in order to get the most out of your time in conference.
Multi-point Conferences: When there are a large number of people or various locations involved, it is best to identify yourself and your location before speaking. And if possible, put up a banner or identifier in the camera’s view so it is easy to determine where you are or what group you are with.
Sound: Microphones are highly sensitive and pick up even the smallest of noises. So if it is not your group’s turn to speak, it’s best to remain as quiet as possible. Video conferencing systems have now become advanced enough that even the sound of someone whispering in the background can cause a microphone to switch it’s main focus point, which can immediately take the attention away from the current speaker.  This also means to avoid shuffling papers or coughing during the event if possible.
Other General Considerations: Just like anytime a camera is rolling, it is best to remember that you are always on camera even if you are not the main focus point at that time. Keep your actions as simple as possible as to not distract from the current discussion taking place.  And although the conversations and activities at other locations in the conference may be very interesting, remember to not ignore the local group you are a part of. And lastly, remember when getting dressed the morning before a big video conference, that whites, blacks, plaids or busy prints on your clothing may interfere with the transmission compression on the screen.
And although conferencing is often seen as the next best solution to meeting in person, it is not nearly as easy or seamless as those face-to-face encounters, so remember to practice patience when dealing with any tech-related issues or concerns that may arise during video conferencing events.Â
Video Conference Etiquette: The Simple Do’s and Dont’s
And although video conferences are often the next best thing to meeting in person, it’s important to follow some simple etiquette rules in order to maintain business productivity. According to Cenero, an audio and visual conferencing provider based in Pennsylvania, there are some rules of etiquette that should be followed in order to get the most out of your time in conference.
Multi-point Conferences: When there are a large number of people or various locations involved, it is best to identify yourself and your location before speaking. And if possible, put up a banner or identifier in the camera’s view so it is easy to determine where you are or what group you are with.
Sound: Microphones are highly sensitive and pick up even the smallest of noises. So if it is not your group’s turn to speak, it’s best to remain as quiet as possible. Video conferencing systems have now become advanced enough that even the sound of someone whispering in the background can cause a microphone to switch it’s main focus point, which can immediately take the attention away from the current speaker.  This also means to avoid shuffling papers or coughing during the event if possible.
Other General Considerations: Just like anytime a camera is rolling, it is best to remember that you are always on camera even if you are not the main focus point at that time. Keep your actions as simple as possible as to not distract from the current discussion taking place.  And although the conversations and activities at other locations in the conference may be very interesting, remember to not ignore the local group you are a part of. And lastly, remember when getting dressed the morning before a big video conference, that whites, blacks, plaids or busy prints on your clothing may interfere with the transmission compression on the screen.
And although conferencing is often seen as the next best solution to meeting in person, it is not nearly as easy or seamless as those face-to-face encounters, so remember to practice patience when dealing with any tech-related issues or concerns that may arise during video conferencing events.Â
IRS Business Data in Pictures
Below are six charts I created from Internal Revenue Service (IRS) data that show patterns in American business over time.
From 1945 to 2005, the number of American businesses grew faster than the population. From the end of World War II until 1980, average revenues and net income at American corporations declined significantly, but have since remained largely constant. Since 1980, net income as a percentage of revenues at American businesses has increased. From 1990 to 2011, business income has declined as a fraction of total income of individual taxpayers.
Over the Past 60 Years, the Number of American Corporations has Risen Substantially
As Figure 1 indicates, from 1945 to 2005 the number of corporation tax returns per capita rose steadily. But then, the period from 2005 to 2010 marked the first five-year decline in the per capita number of corporations since the end of World War II.
Source: Created from Internal Revenue Service data
Over the Past 30 Years, the Number of Businesses has Risen Dramatically
As Figure 2 shows, the per capita number of all business tax returns - which combine sole proprietorships and partnerships with corporations - grew substantially over the 1980 to 2006 period. Then between 2006 and 2010 the number of business tax returns per thousand people declined slightly for the first time since data have been collected (1980).
Source: Created from Internal Revenue Service data
Over the Past 60 Years, Revenues of the Average Business First Fell and then Flattened Out
As Figure 3 shows, average revenue of corporations fell steadily between 1945 and 1980, when measured in inflation adjusted terms. Between 1980 and 2010, however, the average revenue per corporation has remained largely constant in real terms.
Source: Created from Internal Revenue Service data
Over the Past 60 Years, Net Income of the Average Business First Fell and then Flattened Out
As Figure 4 shows, net income of the average corporation largely declined between 1945 and 1980 when measured in 2010 dollars. However, between 1980 and 2010, it has been mostly steady.
Source: Created from Internal Revenue Service data
Over the Past 30 Years, Margins Have Risen Significantly
As Figure 5 shows, net income as a fraction of revenues was substantially higher in 2010 (9.5 percent) than in 1980 (6 percent). While the rise is far from linear, and the 2010 numbers are off their 2005 peak, the pattern does appear to be one of rising margins. (The thin black line in the figure indicates the linear trend and the r-squared indicates how well a straight line fits the data.)
Source: Created from Internal Revenue Service data
The Business Share of Income has Fallen Significantly Over the Past Two Decades
As Figure 6 shows, business income has declined gradually, and linearly, from 4.1 percent of total income in 1990 to 3.2 percent in 2011. (The narrow black line in the chart shows the trend and the r-squared shows the accuracy of a straight line as a representation of the data pattern.)
Source: Created from Internal Revenue Service data
IRS Business Data in Pictures
Below are six charts I created from Internal Revenue Service (IRS) data that show patterns in American business over time.
From 1945 to 2005, the number of American businesses grew faster than the population. From the end of World War II until 1980, average revenues and net income at American corporations declined significantly, but have since remained largely constant. Since 1980, net income as a percentage of revenues at American businesses has increased. From 1990 to 2011, business income has declined as a fraction of total income of individual taxpayers.
Over the Past 60 Years, the Number of American Corporations has Risen Substantially
As Figure 1 indicates, from 1945 to 2005 the number of corporation tax returns per capita rose steadily. But then, the period from 2005 to 2010 marked the first five-year decline in the per capita number of corporations since the end of World War II.
Source: Created from Internal Revenue Service data
Over the Past 30 Years, the Number of Businesses has Risen Dramatically
As Figure 2 shows, the per capita number of all business tax returns - which combine sole proprietorships and partnerships with corporations - grew substantially over the 1980 to 2006 period. Then between 2006 and 2010 the number of business tax returns per thousand people declined slightly for the first time since data have been collected (1980).
Source: Created from Internal Revenue Service data
Over the Past 60 Years, Revenues of the Average Business First Fell and then Flattened Out
As Figure 3 shows, average revenue of corporations fell steadily between 1945 and 1980, when measured in inflation adjusted terms. Between 1980 and 2010, however, the average revenue per corporation has remained largely constant in real terms.
Source: Created from Internal Revenue Service data
Over the Past 60 Years, Net Income of the Average Business First Fell and then Flattened Out
As Figure 4 shows, net income of the average corporation largely declined between 1945 and 1980 when measured in 2010 dollars. However, between 1980 and 2010, it has been mostly steady.
Source: Created from Internal Revenue Service data
Over the Past 30 Years, Margins Have Risen Significantly
As Figure 5 shows, net income as a fraction of revenues was substantially higher in 2010 (9.5 percent) than in 1980 (6 percent). While the rise is far from linear, and the 2010 numbers are off their 2005 peak, the pattern does appear to be one of rising margins. (The thin black line in the figure indicates the linear trend and the r-squared indicates how well a straight line fits the data.)
Source: Created from Internal Revenue Service data
The Business Share of Income has Fallen Significantly Over the Past Two Decades
As Figure 6 shows, business income has declined gradually, and linearly, from 4.1 percent of total income in 1990 to 3.2 percent in 2011. (The narrow black line in the chart shows the trend and the r-squared shows the accuracy of a straight line as a representation of the data pattern.)
Source: Created from Internal Revenue Service data
What Is “Owned, Earned and Paid Media�
If you work in a marketing agency, or are a marketer in-house in a larger company, you probably know the answer to “what is owned, earned and paid media?â€.
But we small business owners wear many hats. Marketing may be one of 6 or 7 responsibilities you have.  In fact, you may have so many responsibilities that you’ve run out of hats (see cartoon above).
That being the case you may not be as familiar with certain marketing concepts, such as owned, earned and paid media.
So let’s dive in and see what it’s all about.  We’ll also look at how to employ owned, earned and paid media as part of your marketing strategy in a small business.
Definition: Owned Earned Paid Media
This phrase is simply a framework for how to organize and execute your marketing:
Owned media is when you leverage a channel you create and control.  This could be your company blog, YouTube channel, your website, or even your Facebook page.  Even though you don’t strictly “own’ your YouTube channel or your Facebook page, you do control them and don’t have to pay for basic usage.
Earned media is when customers, the press and the public share your content, speak about your brand via word of mouth, and otherwise discuss your  brand.  In other words, the mentions are “earned,†meaning they are voluntarily given by others.
Paid media is when you pay to leverage a third-party channel, such as sponsorships and advertising on third-party sites.
Forrester Research created a chart that lays it out pretty well, including the advantages and disadvantages:
Discussions about owned, earned and paid media tend to be in the enterprise context. Â Case studies and advice focus on Fortune 1000 companies with boo-koo bucks for their marketing.
But the concept is just as relevant to small businesses.
The concept of owned, earned and paid media has content at the center. Â Luckily, small businesses are getting savvier at creating and curating content.
Avoid These 2 Myths
The key to understanding the “owned, earned, paid media†concept is not to buy into these two myths:
Myth #1: All you need is owned media. Â
It’s important to have channels and content you own - for sure. But they alone are not enough.
What many small businesses lack with their owned channels is reach and scale.  You have a website with excellent case studies and resources on it, but could use more traffic.  You have a Google+ page, but don’t have a lot of followers and shares of your content through it yet.  You have a company blog, but don’t have time to regularly create content. And when you do, with so much content floating around online today, it’s hard to get eyeballs to your blog to read it.
That’s where earned and paid media come in.  They extend your reach.  To be successful, you need to amplify and scale your owned media channels.
Myth #2: Paid media is more expensive than any other kind of media. Â
Recognize that there’s a cost to every channel â€" time, money or both.
Let’s take owned media.  Whether it’s the time your people spend in improving your website, writing blog posts for your blog, commissioning expensive infographics to get people talking, editing videos to share on YouTube â€" or paying for SEO services to get more traffic to your website â€" you still have to invest time, money or both.
It’s the same when it comes to earned media.  Earned media takes effort to develop and leverage at any scale.  If you want to your content to spread through social media and for social discussions to spring up around your products, it means you have to put effort into developing your social media channels. You must build your social media profiles, engage with customers, curate content. You must also do it consistently, week in and week out.  You must stick with it.  Paying attention to the your Twitter account once every 5 months won’t do much.
If you want to earn blogger mentions, you may have to reach out to bloggers via email to share that new infographic. Or you may need to engage in guest blogging on third party blogs to get more people to pay attention to you and your brand.  Here again, you have to do it consistently over time.  One guest blog post may help.  But it’s hardly enough to move the needle.
So before assuming that advertising is more expensive than the other two forms of media, consider ALL the expenses. Consider the value of your time and your team’s time, too.
Most small business owners underestimate the cost of marketing, especially when they do it in-house and invest precious time.
Combine Two or More Types
The best practice today is to use a combination of “owned earned paid media.† Use one media channel to amplify or extend another type.  They need to work hand in hand.
Jeremiah Owyang and Rebecca Lieb, analysts with the Altimeter Group, use the phrase “Converged Mediaâ€Â (see image above) to describe the combination.
They write, “Advertising, or ‘paid’ media has traditionally led marketing initiatives, both online and off, but advertising no longer works as effectively as it did unless bolstered by additional marketing channels.  Owned and earned media are vital to campaigns, helping to amplify and spread brand messages across a myriad of complex paths that consumers follow across devices, screens, and media.  Earned and owned media have become so integral to successful marketing initiatives that they are now commingling with paid to create new media hybrids.  Paid + Earned;  Earned + Owned;  Owned + Paid;  and even Paid + Owned + Earned media models are now emerging.â€
There is one difference in that description as it applies to small businesses. Â Smaller entities have always relied on owned and earned media to a large degree. Compared with their larger enterprise counterparts, they have had less of a single-minded focus on paid advertising traditionally.
And that’s a good thing.
It means that convergence comes naturally. Â We small business types never got over-reliant on advertising. We are used to doing more with owned and earned media.
Here are four examples of ways to combine owned, earned and paid media, in a small business context â€" and make for more powerful marketing:
3.) Pay some influencers [paid] to create interesting and shareable content for your company blog [owned]. Then amplify it heavily through social media [to generate earned mentions].
4.)Â Create special Facebook-only discounts [paid]. To take advantage of them, people must Like your page. Â Studies show that discounts are a primary reason people follow and interact with brands on social media. Â When they Like your page, you have their attention. That also means you now have a relationship with them [leading potentially to earned media].
When you combine owned, earned and paid media it expands your reach â€" more than from a single channel alone.
So don’t think about a single marketing technique in isolation, such as blogging. Or being active on Twitter.  Think instead about how you can combine techniques.
What Is “Owned, Earned and Paid Media�
If you work in a marketing agency, or are a marketer in-house in a larger company, you probably know the answer to “what is owned, earned and paid media?â€.
But we small business owners wear many hats. Marketing may be one of 6 or 7 responsibilities you have.  In fact, you may have so many responsibilities that you’ve run out of hats (see cartoon above).
That being the case you may not be as familiar with certain marketing concepts, such as owned, earned and paid media.
So let’s dive in and see what it’s all about.  We’ll also look at how to employ owned, earned and paid media as part of your marketing strategy in a small business.
Definition: Owned Earned Paid Media
This phrase is simply a framework for how to organize and execute your marketing:
Owned media is when you leverage a channel you create and control.  This could be your company blog, YouTube channel, your website, or even your Facebook page.  Even though you don’t strictly “own’ your YouTube channel or your Facebook page, you do control them and don’t have to pay for basic usage.
Earned media is when customers, the press and the public share your content, speak about your brand via word of mouth, and otherwise discuss your  brand.  In other words, the mentions are “earned,†meaning they are voluntarily given by others.
Paid media is when you pay to leverage a third-party channel, such as sponsorships and advertising on third-party sites.
Forrester Research created a chart that lays it out pretty well, including the advantages and disadvantages:
Discussions about owned, earned and paid media tend to be in the enterprise context. Â Case studies and advice focus on Fortune 1000 companies with boo-koo bucks for their marketing.
But the concept is just as relevant to small businesses.
The concept of owned, earned and paid media has content at the center. Â Luckily, small businesses are getting savvier at creating and curating content.
Avoid These 2 Myths
The key to understanding the “owned, earned, paid media†concept is not to buy into these two myths:
Myth #1: All you need is owned media. Â
It’s important to have channels and content you own - for sure. But they alone are not enough.
What many small businesses lack with their owned channels is reach and scale.  You have a website with excellent case studies and resources on it, but could use more traffic.  You have a Google+ page, but don’t have a lot of followers and shares of your content through it yet.  You have a company blog, but don’t have time to regularly create content. And when you do, with so much content floating around online today, it’s hard to get eyeballs to your blog to read it.
That’s where earned and paid media come in.  They extend your reach.  To be successful, you need to amplify and scale your owned media channels.
Myth #2: Paid media is more expensive than any other kind of media. Â
Recognize that there’s a cost to every channel â€" time, money or both.
Let’s take owned media.  Whether it’s the time your people spend in improving your website, writing blog posts for your blog, commissioning expensive infographics to get people talking, editing videos to share on YouTube â€" or paying for SEO services to get more traffic to your website â€" you still have to invest time, money or both.
It’s the same when it comes to earned media.  Earned media takes effort to develop and leverage at any scale.  If you want to your content to spread through social media and for social discussions to spring up around your products, it means you have to put effort into developing your social media channels. You must build your social media profiles, engage with customers, curate content. You must also do it consistently, week in and week out.  You must stick with it.  Paying attention to the your Twitter account once every 5 months won’t do much.
If you want to earn blogger mentions, you may have to reach out to bloggers via email to share that new infographic. Or you may need to engage in guest blogging on third party blogs to get more people to pay attention to you and your brand.  Here again, you have to do it consistently over time.  One guest blog post may help.  But it’s hardly enough to move the needle.
So before assuming that advertising is more expensive than the other two forms of media, consider ALL the expenses. Consider the value of your time and your team’s time, too.
Most small business owners underestimate the cost of marketing, especially when they do it in-house and invest precious time.
Combine Two or More Types
The best practice today is to use a combination of “owned earned paid media.† Use one media channel to amplify or extend another type.  They need to work hand in hand.
Jeremiah Owyang and Rebecca Lieb, analysts with the Altimeter Group, use the phrase “Converged Mediaâ€Â (see image above) to describe the combination.
They write, “Advertising, or ‘paid’ media has traditionally led marketing initiatives, both online and off, but advertising no longer works as effectively as it did unless bolstered by additional marketing channels.  Owned and earned media are vital to campaigns, helping to amplify and spread brand messages across a myriad of complex paths that consumers follow across devices, screens, and media.  Earned and owned media have become so integral to successful marketing initiatives that they are now commingling with paid to create new media hybrids.  Paid + Earned;  Earned + Owned;  Owned + Paid;  and even Paid + Owned + Earned media models are now emerging.â€
There is one difference in that description as it applies to small businesses. Â Smaller entities have always relied on owned and earned media to a large degree. Compared with their larger enterprise counterparts, they have had less of a single-minded focus on paid advertising traditionally.
And that’s a good thing.
It means that convergence comes naturally. Â We small business types never got over-reliant on advertising. We are used to doing more with owned and earned media.
Here are four examples of ways to combine owned, earned and paid media, in a small business context â€" and make for more powerful marketing:
3.) Pay some influencers [paid] to create interesting and shareable content for your company blog [owned]. Then amplify it heavily through social media [to generate earned mentions].
4.)Â Create special Facebook-only discounts [paid]. To take advantage of them, people must Like your page. Â Studies show that discounts are a primary reason people follow and interact with brands on social media. Â When they Like your page, you have their attention. That also means you now have a relationship with them [leading potentially to earned media].
When you combine owned, earned and paid media it expands your reach â€" more than from a single channel alone.
So don’t think about a single marketing technique in isolation, such as blogging. Or being active on Twitter.  Think instead about how you can combine techniques.
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