At the start of this week, California workers will notice their paychecks are slightly smaller. In July, California legislature passed a plan to falsely increase state revenue until June by increasing the Personal Income Tax withholding by 10%. Technically this is not an increase in the personal income tax as any extra withholding will be returned in April, it is a matter of when personal income tax is paid. This increased withholding is being referred to as an “interest free loan” and will serve as a $1.7 billion cash advance for the government through next June. However, the timing matches right up with the holiday season. Will the withholding reduce holiday shopping?

The government argues that it will have a minimal impact on people’s income, with an income reduction of only about $10-$45 a month. The problem is, for California families living paycheck to paycheck, this “minimal” reduction is huge. CareerBuilder reports that 61% of US workers generally live paycheck to paycheck. However with this year’s Labor Day decline in sales and with Labor Day being considered a sales indicator for the upcoming holiday season, the withholding measure may lead to tighter wallets for California shoppers. California’s increased withholding, coupled with the other tax increases this year, makes Californian’s disposable income smaller and smaller. (Other impacts this year: sales tax increased by one percent, state income tax increased by .25 percent and dependent credit was reduced by two-thirds).

Who is affected most by this?

Local California business, particularly those in counties with higher unemployment rates, such as Riverside County with a September unemployment rate of 14.7%, might sharply feel the increased withholding tax. It is possible that people will use credit cards more this holiday season as an attempt to compensate for a lack of cash. Credit card processing capabilities may play a large factor in holiday shopping profits this year for areas with higher unemployment rates.

Companies who employ ecommerce web design for their websites and have developed their online marketing and search engine optimization efforts will be in a more comfortable place this holiday season. Websites with shopping carts will grant these businesses access to out-of-state customers unaffected by the increased personal tax withholding.

Get around the increased tax withholding measure:

People can change their personal withholding allowances through their employers or payroll services provider with the Employment Development Department’s DE4 form. The legislature is hoping most will not be wise to this technique.

Search engine Yahoo will end its paid inclusion program (similar to pay per click) at the end of the year after complaints that having paid advertisements included in organic search results could create biased results. The move is not a PR one though – Yahoo originally stated that its paid inclusion program was still up in the air at their July press conference that announced their merger with Microsoft.

Yahoo’s paid inclusion program, formally called Search Submit Pro, allowed users to pay for page inclusion but not page rank. Having guaranteed page inclusion for searches, however, did allow web designers to optimize their pages for specific search results. Complaints against paid inclusion focused on how Yahoo was spilling over into traditional search engine optimization practices, which include pay-per-click ads and keyword manipulation.

Perhaps the happiest to see the demise of paid inclusion are the smaller search engine developers. Many smaller search engines were onboard in early 2003 when Yahoo first started developing Search Submit Pro, with everyone eager to slow down Google.

However, paid inclusion quickly turned into a monopoly for Yahoo, with key searches for words like “home mortgage” turning up 80% of paid results. In one extreme case, a search for “refinance” came up with only Yahoo supported results on the first page, making it impossible for any other websites to break into the top 10 results.

Many web developers feel that the loss of paid inclusion will jumpstart pay-per-click ads and other smaller online marketing practices. Yahoo itself has kept the end date for paid inclusion at the end of this year, to allow their advertisers time to adjust.

The Yahoo/ Microsoft merger also caught a lot of media attention on its own. Some have called the partnership an effort to finally rein in Google’s stranglehold on the search engine market. Though, many industry talking heads maintain that the largest search engine on the market won’t see any competition for the next two years.

VoIP systems revolutionized office phone systems and phone system capabilities allowing more businesses on-the-go capabilities at a low cost. Just recently, cell phone providers realized this could revolutionize the mobile industry as well.

Last week the media networks went crazy covering the two major VoIP service and cell phone developments. First, Verizon announced that it will be working with Google’s Android software and will begin incorporating it into their new cell phones. Therein, new Verizon phones will be Google Voice compatible. Shortly after this announcement, AT&T made public that they would be amending their current policy which restricted usage of VoIP applications such as Skype on their Apple products to a plan which almost fully enables VoIP. Pressured from customers, VoIP providers and the Federal Communications Commission, AT & T lifted the ban because it was interpreted as obstructing competitors’ applications and features thus preventing net neutrality.

These two announcements are just the beginning.  A VoIP service can now save a company money both in the office and on the go. Here’s a quick explanation on major VoIP options for cell phones:

• Skype is one of the more basic VoIP applications allowing calls, instant messaging and less expensive international calls. Most smart phones allow Skype including AT & T products now after the announcement last week (before AT&T restricted Skype calls on Apple products to be available only in Wi-Fi zones). The application is free to download at the ITunes store or from the Skype website. International calls are relatively inexpensive but the fee per minute is dependent upon the country being called. Theoretically, AT&T customers could significantly lower their monthly allotted minutes if they were to use Skype for both local and international calls.

• Google Voice: AT&T has blocked Google Voice in the past but is now reconsidering it; this is probably in light of the FCC’s investigation and Verizon’s new contract with Google. Google Voice is different than other VoIP applications because of how it routes calls - through a new phone number that is assigned to the user to an existing number the user assigns - and the features it offers. Users create one number to accept all of their phone calls and then the user decides which calls should go where. For example, mother in-law calls always go to the house while office calls always go to the cell phone. This streamlines all of communications while still offering voice mail. Much like how Google launched Gmail, Google Voice is currently accessible by invitation.

• Vonage Mobile: Vonage offers free and inexpensive international calling (60 countries are free). Vonage Mobile is now available via a free application to IPhone, IPod Touch and BlackBerry users and operates much like Skype but the billing structure is different. With Apple products, calls made over a Wi-Fi connection are free while those outside of Wi-Fi will count toward monthly minutes used. AT&T customers will also pay a $25/monthly World Rate Plan to have access to the international calling benefits. BlackBerry’s will be charged for minutes used and the calls will not be made through Wi-Fi.

VoIP applications on cell phones with inexpensive long distance and international calling available on cell phones seems too good to be true but it is true… at least for now. The introduction of VoIP to cell phones could dramatically reduce any profits related to international calling and depending on service and application, VoIP could cut down on the monthly minutes used by callers. The huge profit losses associated with this will require a restructuring of the current US cell phone billing practices. It is probable that to compensate for these losses, the cell phone companies will increase data transfer charges or have a fee like Vonage for participating in the service. Until then, call all of your international contacts and celebrate, it could be free!

Some questions to consider that has not been widely discussed are: How will the cell phone providers deal with this increase in data transfers on their networks? Have they planned for this? How will this impact how VoIP services are provided in general? Comments?

The US Chamber of Commerce, which proclaims itself to be “the world’s largest business federation representing more than three million businesses and organizations of every size,” has a big problem on its hand.

High-profile companies have been quitting the Chamber, a virtual Who’s Who of top businesses, including Apple, PG&E, Nike, and Exelon.

The reason: the US Chamber’s opposition to the Waxman-Markey climate change bill.

The US Chamber points out that “ore than 96% of U.S. Chamber members are small businesses with 100 employees or fewer” and that “As the voice of business, the Chamber’s core purpose is to fight for free enterprise before Congress, the White House, regulatory agencies, the courts, the court of public opinion, and governments around the world.”

But its members seem to feel that the U.S. Chamber is not listening.

And, as a member of my local Chamber of Commerce, I’ve been upset about some of the positions staked out by the US Chamber: they didn’t truly seem to help small businesses.

I had mentioned something to my local chamber, but it turns out that local chambers of commerce are not necessarily members of the US Chamber — which is a branding problem.

For both the US Chamber and local chambers.

I’m a member of a local chamber, but have no input on what the US Chamber’s policy making function. Yet I was upset enough to consider quitting my local chamber, which has nothing to do with the US Chamber.

Meanwhile, the US Chamber seems to be responding to the news that more big-name members are quitting, seemingly each day, by sticking to its guns.

I’m sure that the US Chamber is losing smaller companies, too.

Yet as a call-to-action for prospective members, the Chamber says, “The Chamber understands your needs and protects your livelihood as if they are our own.”

It’s not a matter of them being “as if they are our own.” As a membership-based organization whose mission is “to fight for free enterprise,” its members’ needs and livelihood are their own.

So, the lessons learned:

1. You need to listen to your members. It certainly doesn’t seem like the US Chamber is doing this. I’m sure the US Chamber conducts surveys of its membership to help determine the direction and policies to support. But when even energy companies are quitting because they have deep concerns regarding the US Chamber’s position on climate change, that’s a problem.
2. You need to respond to your members. The lack of response to the companies leaving seems to indicate that the US Chamber doesn’t truly care about what its members think. In fact, according to Fast Company, “Why Did Apple Quit the U.S. Chamber of Commerce?” “Apple’s move probably won’t change any minds in the Chamber of Commerce–Eric Wohlschegel, a spokesman for the organization, shrugged off the mass exodus by explaining that some companies have more to gain from the Chamber’s stance than others.” Seems like that’s not acting as if members’ needs and livelihoods are “our own.”
3. You need to realize that, whether you think it’s one or not, there’s a crisis. Shrugging off “a mass exodus” is not a way to manage a crisis. There is a message from the president of the US Chamber about its climate control policy, but it’s dated Sept. 29, and a lot of the high profile membership resignations have occurred in Oct. They haven’t even issued a press release this month, as of this morning, Oct. 7, to present their side of the issue. And there are no current op-eds on the site with data that supports a controversial policy.
4. You need to engage your members. The first step could be to say, we realize that our current stance on climate control may be unpopular but we think it’s the right one, but we’re willing to meet with members to explain our reasons. Town Hall meetings have a bad tone these days, but why not set up events to talk to and hear from members? Why not show the level of membership support for the current policy? Yet we have no idea of how many members surveyed agree with the policy. So far the US Chamber has not done a good job here.
5. You need to reach out to prospective members. Considering that the US Chamber needs to continue to recruit members, they need to use policy positions that will encourage prospective members to join. Doesn’t seem like fighting against climate change would generate new members.

Meanwhile, I’d have to say that the local chambers seem to be ignoring the matter, too. They may operate independently, but a lot of people may not realize that. There’s bound to be a lot of people and local businesses upset, and that could leave them with negative feelings about all chambers of commerce — which is not what you want right before renewal season. I know it’s not the local chambers’ battle, but they need to let their local members know they’re not part of the US Chamber.

Think your sales department is doing all it can to convert credit card processing sales leads or VoIP sales leads into paying customers? Think again. When it comes to maximizing lead generation efforts, perceived success rates are much higher than real statistics indicate, according to our recent study. (more…)

Is Canada the newest entrepreneurial frontier? Maybe. Globally, the country has the highest population of entrepreneurs within its working population (15.9% compared to 10.1% in the U.S.*). By some measures, it’s easier to start a business in Canada than in almost any other large-economy country: Canada ranks #1 among the G-7 and OECD countries for fewest number of procedures required to start a business and for the fewest number of days required get a new business off the ground. (more…)

Ever wondered whether you could put your iPhone to work for practical business purposes, like, say, credit card processing or tracking product shipments? The competition for the best iPhone Application (App, for short) has heated up since we cataloged our 10 favorites last year. In honor of Apple’s super-secret big announcement this week, here are our top picks for the best business iPhone apps:

EverNote: EverNote works like your brain would- if its contents were exported to your iPhone. This app takes any form of information- photos, written notes, voice recordings- and makes it searchable using technologies like optical character recognition. For example, you can take pictures of posters, magazine covers, business cards, or anything else and search the photo based on the content of the text.

WhatTasks: Quite possibly the easiest-to-use task manager in existence, WhatTasks allows you to group tasks (by client, location, etc) and prioritize them using a simple, uncomplicated interface. If your main complaint about task management apps is that it’s a task in itself to use them, look no further- this one’s actually worth it to use.

SugarSync: SugarSync is the iPhone app that accompanies Sharpcast’s Sync service. For $50/yearly, you’ll have access to 30GB of storage that is accessible and searchable on your phone. Changes to files on your computer (document revisions, etc.) are also reflected on your mobile device instantly.

PageOnce: PageOnce lets users view many different accounts (Facebook, Twitter, different email accounts, bank accounts, etc.) on one page. Sign up for the free account and then download the iPhone version, which allows you to access bank account, credit account, and invoicing account pages easily, no matter where you are.

iProcrastinate: If you work best on a deadline, this appropriately-named application is for you. You can group your tasks by due date, allowing you to prioritize your work. Tasks can be easily searched and can be identified by color coding (if you’re looking for something to do while putting off actually getting to work…) And yes, there is an “overdue” category for those that really procrastinate.

BeamME: The “greenest” business card is a virtual one. BeamMe is one of the better contact information transfer apps out there, allowing you to sent information via text or (more conveniently) via email from your phone in a few simple clicks.

Griffin iTalk: There are quite a few voice recording apps available, but iTalk gets our vote for its simple interface and easy compatibility with other Apple products. Use iTalk to record conversations (reporters like it for on-the-spot interviewing) or simple notes and to-do-list tasks.

MWare Mobile: MerchantWARE Mobile acts as a virtual credit card terminal, allowing you to process credit card transactions using only your phone and a connection to a WiFi or 3g network. MWare mobile gets our recommendation because no 3^rd party merchant account gateways are required, it’s easy, to use, it’s secure, and (best of all) it’s free.

FedEx Mobile: This easy-to-use application allows you full access to the range of FedEx services. You can arrange pickups, find a FedEx drop off location, or track outgoing product shipments directly from your phone.

mBox Fax: Faxing (strangely, to some) is still a very common method of transmitting information. Some companies that don’t want to invest in a machine can use this application to accept incoming faxes.

PointerRemote: The next time you need to make a presentation, use your phone as a remote. This tool works with both Microsoft’s PowerPoint and Apple’s Keynote. It also lets you view notes on your phone screen so you can discreetly navigate between slides and topics without craning your neck to read the large screen.

FreshBooks: FreshBooks, an invoicing and time monitoring software program, offers up some of its best features in this mobile application. You can track the time spent to complete specific projects and tasks for later invoicing, keep notes on entries, and monitor job costs when you’re working out of the office.

Any we missed? Share your finds with other business owners and entrepreneurs in the comments section.

For some services, going local can make all the difference.  Not only are you able to get the personalized service that comes with face-to-face contact, but local service vendors often understand your concerns a little better. That’s why we’ve launched our local directory for phone systems and VoIP phone systems.  Ever wanted to make sure you could have a face-to-face meeting with your payroll processing company, or meet your phone system installer in person?  Now you can make sure you get the best price estimates from local vendors in your state, city, or neighborhood. (more…)

It’s that time of year again- Comic-Con descends on Southern California this week for it’s 40th Anniversary Convention.  Why all the fuss about trade show displays?  For one, Comic-Con is fun- from sneak television and movie previews to presentations by award winning authors, the show doesn’t have the feel of your typical industry convention.  So in the spirit of Comic-Con week, here are a few tips to make the most of your big trade show event:

Plan ahead for sales. Are you planning to sell products or take orders at the show?  If you already have a merchant account, make sure you have a mobile credit card terminal, or if your display is equipped with a computer and monitor, an online payment mechanism that customers can use.  At the last minute, you can always download a credit card processing application to your iPhone to accept payments.

Prepare a press release. Create buzz before the event by announcing a new product, a new partnership, a new strategy…you can submit press releases to media sources directly or use a paid service like PR newswire to get the word out.

Send e-mail blasts. If you can get a list of registered attendees or industry professionals that will be attending the show, send an email a few weeks ahead of time about your exhibit.  A general flier is okay, but personalized emails with an attached flier are better- especially for bloggers (who might write about your business) or current customers (who you want to build a relationship with).  Keep e-mail marketing materials compelling by including a special offer or discount if a recipient visits your display booth.

Put social media tools to work. This one is pretty obvious: Twitter, Facebook, and your business blog are all free and easy ways to publicize your show appearance.

Use old-school tactics, too. Sure, e-mail blasts and social media are great for building brand awareness, but old-fashioned strategies like direct mail marketing still work wonders.  Make sure you send mailers out well in advance (at least 4 weeks before the event) especially if you plan to offer special deals or product samples at the show.  Mailers should encourage attendees to visit your booth to redeem a special offer, check out a new product, register for a discount offering, etc.

Re-think promotional materials. Don’t just pay someone to hand out fliers without carefully considering their content and message.  At a trade show, everyone is handing out promotional materials- your goal is to stand out among the crowd by encouraging interaction at your display and conversation with potential sales leads, customers, vendors, and industry taste-makers.  Make sure anything you’re distributing is worth the cost to produce.

Plan your display. Whether you’re attending a nationally prominent event like Comic-Con or a smaller, regional show, you’ll need an exhibit that stands out to visitors.  If you’ve never attended a trade show before, this can be tough- check out our Buyer Guide to trade show exhibits to start, and then work with vendors to prepare your exhibit based on your requirements.  Once you’ve got all equipment, do a “test run” putting up and taking down a pop-up display, or do a run-through with your exhibit staff before the show if you have a larger, more complex display.

Get visitor information. At the show, make sure you have a method for collecting contact information from exhibit visitors.  Then extend your marketing efforts beyond the show itself: take pictures at the show and post them on your website, send follow up emails- re-connecting is easy if you plan for it ahead of time.

The best exhibits are those that aren’t overly focused on selling, collecting lead information, or following a specific script or procedure.  Be welcoming- make your exhibit a fun place to hang out.  Some shows- especially those like Comic-Con- have a large audience that’s just there for fun.  Planning ahead for your show efforts will ensure that you’re able to relax and have a great time.

Even if you missed Google’s official announcement last week you’ve probably heard by now: Google Chrome, an operating system designed to work seamlessly with the Google Chrome browser, will roll out in 2010.  Chrome is the company’s attempt to “re-think what operating systems should be-” it relies on cloud computing, and will be targeted at net books- inexpensive laptop computers purchased mostly for internet use.

It’s been a big year for Google.  In addition to announcing Chrome, they also unveiled Google Voice- by invite only, naturally- after purchasing the GrandCentral online phone service.  Google Voice isn’t quite as revolutionary as Chrome, though it has plenty of fans already.  Both Google Voice and Chrome are free, and provide most-if not more- of the features of competitors who charge for services.  A small business owner’s dream, right?  Cutting-edge services that offers professional functionality and easy user interface…for free?  Did Google just become your business’ new best friend?

Here’s an overview of these products and how they can have a big impact on your business:

Chrome- What Makes An Operating System So Important?
The operating system is one of the most basic components of your computer- chances are, you use a Microsoft OS if you’re using a PC (most business owners do).  The cost of the operating software alone can send the cost of a new computer into the thousands- you need to pay for the software itself, plus a license for each user.  Google Chrome, which uses cloud-computing technology, is free.

This means you can purchase net books, used, or refurbished computers- saving big on hardware costs.  Research company DisplaySearch has already reported a large surge in net books to retail outlets, anticipating that around 32.7 million will be sold next year- up from 16.4 million this year.

Using a cloud computing based OS (Operating System) is not only less expensive; it also allows more flexibility for business owners that travel or that work from the field.  You’ll have more data storage available at a less expensive cost, and are not tied to licensed products.  Ever tried to open a document that someone stored in WordPerfect?  A seamless OS/Browser experience eliminates this problem.  You can’t download WordPerfect or other Microsoft programs immediately, but you can install Google Docs or Open Office - two completely free office applications that create documents, spreadsheets, and presentations as easily as the Microsoft programs many of us are used to- in seconds.

Chrome isn’t available yet- it’s set to roll out at some point next year.  If you’re holding off making a computer purchase or upgrading operating software, waiting until then could be a good idea.

Voice- The Future of Phone Systems?
Voice is the new, Google-branded version of the GrandCentral technology the company purchased two years ago.  Google Voice works similarly to GrandCentral’s service model- you choose a phone number (the example on the Google blog shows how you can choose a number that spells out words) and program your own mobile devices or IP-enabled phones to ring when it is called, similar to most basic VoIP phone systems.

Voice has a host of cool features that are ideal for business owners: You can store voice messages and make calls using your computer, automatically transcribe voicemails for viewing as an email (enabling you to search emails and voicemails based on certain key words), and program certain phones to ring (office, home) based on who is calling.  Business owners who want a “mobile office” will be served well.  You’ll still need to pay for cell phone service in order to have your calls, texts, and data routed to your mobile device, similar to the way most other VoIP telephone systems operate.  Google Voice is currently available to past GrandCentral users and the general population by invitation only.

The New “Empire”?
Google’s motto, “Don’t be evil,” is often seen as sarcastic reference to Microsoft’s (the “evil empire”) industry domination.  A recent article in the Los Angeles Times pointed out this irony as Google introduces more and more products that are designed to work with other Google offerings.  Many worry about the security risks involved when one source is relied upon for every key business operation- especially when data is stored using cloud computing.  Time will tell if Google has plans to usurp Microsoft or even follow their established model for obtaining a customer monopoly over certain segments.  For now, enjoy the competition between the two- it seems to be producing better options for all small business owners.