small business connections: marketing meets microfinancing-los angeles
DESCRIPTION
Yelp and Accion have teamed up with the NYSE Big Start-Up to host the first Small Business Connections event is Los Angeles. The workshop is free and will provide small business owners with resources to help finance their entrepreneurial dreams and increase their online marketing power by learning best practices for engaging with online review sites and other social media platforms. This presentation was delivered to over 40 business owners in Los Angeles on November 7.TRANSCRIPT
Small Business Connections: Social Media & the World of Online Reviews
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Darnell Holloway
Manager of Business Outreach
@darnelljustin
#NYSEBigStartupwww.yelp.com/contact
The Social Media Landscape
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•Why is it important to have a strong online presence?
•What are the basics you should know about each major social media platform?
•How can you engage with existing customers and attract new business?
Now more than ever, consumers rely on online
reviews
Source: Search Engine Land Local Consumer Review Survey (2012)
85% of Consumers Use The Internet to Find Local Businesses
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LinkedIn is B2B Social Networking
Marketing Your Professional Skills
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Connecting With Other Professionals
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A Few Success Stories
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Develop a Following on Twitter
Anatomy of A Tweet
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The Sprinkles Example
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Get “Likes” on Facebook
Create a Facebook Page for Your Business
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Food Porn
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Demographic Information
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Use HootSuite To Streamline Your Efforts
Create A Free Account At:
www.hootsuite.com
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Aggregate Your Information
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Yelp is Transactional Social Media
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Yelp by the Numbers
$864
• Yelp mobile app is used on 8.2 million unique mobile devices (Q2 2012)• Approximately 45% of all searches on Yelp come from our mobile apps.
• Every second, a consumer generated directions to or called a business from a Yelp app.•A photo was uploaded at least every 30 seconds from the Yelp app.
Yelp Mobile
Consumers on Yelp are Affluent, Educated Adults
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Unlock Your Free Tools
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Biz.yelp.com
Claim your page here
Claim your page here
Log in hereLog in here
Understanding Yelp Metrics & Free Tools
Improve your business page. That’s FREE.
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Connect With Your Customers. It’s FREE too!
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Myth: Most Yelp Reviews are Negative
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80% of Yelp Reviews are Three Stars or Higher
Negative reviews play an important role too• A variety of experiences are consistent with real life• You can’t please 100% of your customers 100% of the time
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Quality Control: Why Some Reviews
Come Down
All businesses are equal in this regard.(Advertisers & non-advertisers treated equally; filtered reviews viewable.)
Keeping Our Content Useful For Consumers
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“Yelp runs its reviews through an anti-fraud filter, with impressive results; every fake review the Texan bought was flagged by Yelp’s algorithms, though his fraudulent reviews remain up on the seven other sites.”
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Engage Diplomatically
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Don’t: Freak Out
Don’t: Freak Out
Tip #1:
Post Public Comments You Can Be Proud Of…
Tip #2: Say ‘Thank You’, State Your Policy & Respond
Promptly
Initial Review: 1 Star
Review Update: 3 Stars
Public Comment from Business Owner
Paid Upgrades: Search Advertising and on Business
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Removal of Competitor’s AdsRemoval of Competitor’s Ads
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Summary
1. The most successful businesses on Yelp focus on providing
great customer service, not soliciting reviews. Word of
mouth will take care of itself.
2. Don’t over-focus on any single review.
3. Start using Yelp’s FREE tools today (biz.yelp.com). Your business page will look better, and this can drive new customers.
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Darnell Holloway
Manager of Business Outreach
@darnelljustin
#NYSEBigStartupwww.yelp.com/contact
Biz.Yelp.Com
The C’s of Lending According to VEDC
Objectives of presentation
a) What are the C’s of lending ? (There are 7 not 3)
b) How are they defined?
c) How are the measured?
d) How are they used?
e) Relative importance of each?
The C’s of Lending According to VEDC
What are they?
a) Character
b) Credit
c) Cash Flow
d) Collateral
e) Capacity
f) Capital
g) Conditions
The C’s of Credit According to VEDC
Character (credit report critical info source)
a) Ethical profile of the borrower, as related to willingness to repay debt.
b) Key Factors (often subjective)
i. Loan purpose
ii. Repayment history
iii. Operating performance – ethical, paying taxes
iv. References check
v. Provision of requested information
The C’s of Credit According to VEDC
Credit
a) Financial profile of person/company, indicating ability to repay loan.
b) Key Factors
i. Credit history (D&B, credit references) of borrower and guarantors.
ii. Supplier credit terms.
iii. Seasonality issues that create temporary issues.
iv. Organization structure – easy to understand.
v. Industry comparisons.
The C’s of Credit According to VEDC
Cash Flow
a) Inflow and outflow of cash
b) Key Factors
i. Generating positive cash flow.
ii. Cash flow adequate to service debt.
iii. Need for cash to pay balloon payments, subordinated debt, insurance/tax payments, new equipment.
iv. Consistent cash flow.
The C’s of Credit According to VEDC
Cash Flow (cont)
c) Measurement of.. (over a period of time)
i. Net income plus non-cash charges less capital expenditures and dividends.
ii. Cash earnings plus changes to working capital (operational cash flow).
iii. Cash receipts minus cash payments.
iv. Income in excess of expenses.
The C’s of Credit According to VEDC
Cash Flow (cont)
d) How to increase
i. Sell more goods and/or services
ii. Sell an asset
iii. Reduce costs
iv. Increase prices
v. Collect accounts receivable faster
vi. Pay suppliers slower
vii. Bring in more equity
viii. Take out a loan
The C’s of Credit According to VEDC
Collateral
a) Assets pledged to secure a loan.
b) A guarantee is not collateral; contract to pay.
c) Key Factors
i. Value of the collateral.
ii. How was value determined?
iii. Could value change over life of loan?
iv. Location of collateral.
v. Ownership of collateral.
vi. Sale of collateral.
vii. Cost to liquidate.
The C’s of Lending According to VEDC
Collateral (cont)
d) Measurements
i. A/R’s @ 75% - less customer credits, over 90 days past due.
ii. Inventory @ 25% - less work in process, old stuff.
iii. Equipment @ 25% - saleable only.
iv. Real estate @ 75% - considering time to sell and cost to liquidate margin.
e) Margin basis consideration – ability to repay debt after value reductions.
The C’s of Lending According to VEDC
Capacity
a) Ability of business to generate financial resources to repay debt.
b) Factors
i. Existing level of cash flow adequate to cover debt payments.
ii. Borrower history regarding debt repayment.
iii. Business model able to change operations, with intent of increasing cash.
iv. Guarantor has cash flow/assets to pay debt if need be.
The C’s of Lending According to VEDC
Capacity (cont)
c) Measurements of..
i. DCR = 1.25
ii. Full margined collateral covers full debt = 1:1.
iii. Guarantor has liquid assets and/or margined real estate equity more than 2 x’s debt.
iv. Guarantor has secondary source of cash flow which can service the debt.
v. Repayment history.
The C’s of Lending According to VEDC
Capital
a) Equity in the business assets.
b) Key Factors
i. Equity invested in, and retained in, the business.
ii. Excess value of assets over cost or book value.
iii. Excess financial resources available to service the debt.
c) Measurement = net worth of the business.
The C’s of Lending According to VEDC
Conditions
a) External and internal conditions impacting ability to repay debt.
b) External
i. Economic conditions
ii. Government regulations
iii. Foreign conditions
c) Internal
i. Adequacy of funding
ii. Operations
The C’s of Lending According to VEDC
Lending Evaluation
a) Meet owners, managers and see location.
b) Review operations.
c) Review tax returns and financial statements.
d) Research industry.
e) Risk mitigation plan.
f) Develop loan structure.
g) Issue LOI.
h) Fund at level commensurate with ability to repay.
i) Monitor and communicate.