Small Business Ideas

This is a massive topic - many businesses are not aware of the changes happening around them and continue to do business in the same old way. It is working for them after a fashion - but it is also limiting their future.

But the internet is not just causing changes to business practices - it is also fundamentally changing management, marketing and leadership.

The web and the rise of social media and Web 2.0 has meant a blurring between personal and business. Many of our business contacts are now "friends" on Facebook who mingle sometimes uncomfortably with our social friends. This has an impact on the workforce as managers try and manage the productivity of work vs. recreational interaction.

The rise of the maven or star vs. company branding. With web 2.0 there is the rise of the cult hero - individuals gain a following, where their thoughts and opinions sway results. People follow people - not companies. It is now much harder to brand a company than it is to brand a leader. We saw this in the last election - with Kevin 07 vs. the Labor party reflecting the change in society.

The total reversal of product development. In the past companies had a "great idea" then created a product before taking it to market to see if it will work. With Web 2.0 that is a recipe for disaster. Now you find a niche that is not being served effectively, test the market to see if people are willing to pay for a product in that niche by selling someone else's product and using free web media and gain proof of concept. Only once the test is proven with guaranteed results you then invest in product creation in your own right.

Impact on traditional advertising - web "direct mail" is now a science, where every element is tested, results measured and tweaked for maximum return on investment. It is very easy to now prove ROI on a web advertising campaign. Traditional forms of advertising don't have similar speed and data availability so are losing out in terms of expenditure from savvy businesses.

Information silos are busted wide open (think Wikis). The web has meant people value instant access to information (often in an organic way vs. a structured way). Businesses are struggling to keep pace with sharing information within and across parts of the business. Many knowledge management tools where they impose unnecessary structure are not stepping up to the mark in terms of useability.

It is not uncommon for parts of businesses looking for info on the wider web because an internal silo will not share, only to find someone in that area had posted that info for all to see on a blog post etc.

The use of social media such as You Tube as a major way to communicate. People are turning away from traditional TV, magazines and newspapers. More people use Facebook, Myspace and YouTube each day than Google! Even Oprah now streams via You Tube on the You Tube Oprah Channel - that is telling you something!

I am an avid trend-watcher - every person I have worked with in the past knows that this is one of my areas of passion. Businesses need to be aware of trends building momentum and get on board before they are left behind.

The good part is that small businesses are the best placed to capitalise on these latest trends. It doesn't cost a lot of money to reach the world with your niche product. You just need the desire, the knowledge or someone with the knowledge.

Until next time

Ingrid Cliff