April 24, 2012

City of Santa Monica joins the Small Business Development Center (SBDC) and Santa Monica College (SMC) to ramp up the growing demand from consumers for transparency in validating local businesses as leaders in environmentally-friendly business practices.

On May 2, 2012, Santa Monica College’s Small Business Development Center will launch a partnering platform fostering the integration of environmentally-friendly business operations, promoting sound business practices, and cost-effective strategies that lead to increased profit generation around modeling sustainability.   The combined forces joining this expansion venture are evoking and inspiring businesses in the local community to leverage green business certification opportunities.

Studies on business growth, demonstrate that the green economy is growing ten times faster than the general economy.  Today, 55% of consumers look for labeling that indicates whether a company or individual product exhibits environmental sensitivity.  Currently, 20% of consumer’s endorse green businesses.  This speaks volumes to more staggering statistics that show by 2015, 60% of consumers will buy from businesses that are certified as green.

Sustainability is not exclusive to the environment alone.  It takes a finance expert, like Steve Sedlic, with a background in cultural and social anthropology, to reveal the bottom-line approach on sustainable entrepreneurship.  As a Business Advisor, at Santa Monica College’s Small Business Development Center, Sedlic helps local community businesses evaluate their marketplace viability and resources available to implement sustainability as their business model.  According to Sedlic, “Flourishing societies are created under the concept of sustainability where the economy, environment and culture are strengthened through joint efforts and patronage.  These businesses deserve to be celebrated and recognized, since they are truly inspiring success stories of local businesses, doing the right thing, sourcing from conscious suppliers, and running their business to minimize environmental impact while giving back to the community.”

“Green practices define smarter business, where operational costs are leaner and profit margins are higher,” affirms Sedlic.  Businesses experience incentives with cost savings through the green business program with learning effective methods for lowering utility bills and resource usage.  The direct impact for businesses awarded green business certifications leads to an increase in company value and net revenue.  Sedlic warns, “Businesses wishing to market and promote themselves as green face an increasingly skeptical consumer that looks for third party validation of improved environmentally-friendly operational efficiencies. That is why developing an expansion for green business certifications has been in the forefront of local city planning officials.” Certified green businesses are recognized as transparent in their policies and procedures of day-to-day operations.  Essentially, these businesses protect the environment and public health, prevent pollution, improve the wellness and productivity of employees, and build a motivated community around the success of their company as a brand leader.

“These are lofty goals that we are undertaking, and we’re just getting started” states Sedlic enthusiastically.  “Give your business some time and patience and you won’t believe the possibilities of what your business can accomplish.”  Through collaboration with existing certifications from City of Santa Monica Sustainable Works and their Green Business Certification team, Sedlic has identified ways of making the green business certification simple for businesses.  Due to the impact that this certification has for the overall health of Santa Monica’s constituency and business community, the first ease of accessing the green certification is that local businesses gain free assistance from start to finish.  This includes rebate information, hands-on training from a team of sustainability experts, marketing assistance to help promote the business, and advertising the awarded validation logo of Santa Monica City’s and SBDC’s Green Business Certification decal.

The groundbreaking event on May 2nd will include presentations from Sustainable Works Green Business Certification founder and Director of Business Greening, Susy Borlido, as well as Founder of Sustain L.A, Leslie VanKeuren Campbell around the topic of “Greening Your Restaurant and Food Service Business,” at Santa Monica College’s Bundy Campus located at 3171 S. Bundy Drive, Los Angeles, CA 90066.

For more information contact 310-434-3566 or visit www.smcsbdcgreen.org.

Written by: Monica Rayes, Sales and Marketing Business Advisor, Small Business Development Center: Santa Monica College

Santa Monica College, Small Business Development Center (SBDC) provides individualized consulting and training to new and growing businesses.  The Green Business Certification of the SBDC helps businesses integrate environmentally-friendly business operations in fostering sound and cost-effective sustainable business practices.

First, let’s talk about the importance of small business to the nation. I’ve heard you speak at several events in the past year, and you seem to be adamant that without the contributions of small businesses, our economy would be in even worse shape.

Small businesses cannot be more important to the nation. President Obama has been very clear that he believes small businesses are the foundation of the economy. Small business owners are the job creators — 67 percent of new private sector jobs over the last 20 years were created by small businesses. And 50 percent of people in the workforce today are employed by a small business. assist you with preparation of a plan and access to research information.”

We’re here at Loyola Marymount University in Los Angeles for the Urban Economic Forum, which is a series of events the SBA is putting on all across the country. Can you tell me more about these events?

The Urban Economic Forum is a multi-city series [taking place in New York City; Birmingham, Alabama; Los Angeles; Columbus, Ohio; Detroit; Chicago; Kansas City; Las Vegas; and Phoenix] designed to help urban business owners create an economy built to last. The purpose is to create a bridge connecting the SBA and local communities, and to raise awareness of the SBA among the people in these communities. Through the Forums, we’re connecting entrepreneurs to local resources, and connecting entrepreneurs to one another. We want to create stronger, deeper relationships across the board. Mentoring is an important part of that. It’s exciting to see young people coming to events like this and being so focused on learning. We’re helping create the next generation of entrepreneurs, and we’re tapping into the energy these young people have. It’s heartening to see young people doing such incredible things. Theirs is a generation of digital kids; they’re comfortable with the [technology] infrastructure, and at ease in digital platforms.

You just talked about mentoring. How important do you think is it to find a mentor and maintain that relationship?

The importance of mentoring cannot be measured. When starting a business, most [entrepreneurs] think about “What should I do to get money?” Don’t think about the money first. Your first thought should be “Where can I find a good mentor?” The answer, and an important first step, is to start with the SBA and our resource partners—the Small Business Development Centers, SCORE and the Women’s Business Centers. Mentoring is not just about teaching. It’s about showing [entrepreneurs] the tools that will boost their business efforts and teaching them how crucial it is to look at the big picture first, before they go granular.

The Forum events are geared toward helping minority entrepreneurs. You spoke today about how important minority and urban business owners are as we emerge from the recession, so I know that’s an important issue to you.

Small businesses are leading the way out of the recession, and minority-owned businesses are among the fastest-growing businesses in the country. But we [at the SBA] noticed that though a recovery was underway, it was uneven. We realized we needed to focus on underserved markets like urban communities, rural communities, veterans and minority-owned businesses, which include the African American community, the Hispanic community, woman-owned small businesses and young entrepreneurs.

In addition to mentoring, what do these business owners need to help them succeed? I was at an event last year where you were speaking, and you mentioned the “three C’s.” Can you explain the “three C’s?”

The “three C’s” are vital to a small business owner’s success. They are access to capital, helping businesses learn more about federal government contracting, and access to the counseling and technical assistance that, as we talked about earlier, businesses need in order to be successful.

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit her blog, SmallBizDaily.com, to get the scoop on business trends and sign up for free TrendCast reports.

1. Consult a professional. The CROWDFUND Act seeks to lower the cost of raising capital by exempting companies raising $1 million or less from registering their offering with the SEC. But although you are exempt from registration, you’re not exempt from regulation. Always consult with a professional investment consultant or attorney versed in securities law before embarking on any crowdfunding venture.

2. Understand the two types of crowdfunding. Previously, crowdfunding sites could be used only to get donations (or pledges). The CROWDFUND Act expands the options by allowing entrepreneurs to solicit investments of up to $1 million annually via crowdfunding websites. Unlike donors, these investors actually own a piece of the company and can realize a return on their investment if the company succeeds.

3. Don’t jump the gun. The process for crowdfunding donations hasn’t changed, but the SEC regulations regarding crowdfunding investments and nonaccredited investors won’t be set until January 2013. You will be able to crowdfund from accredited investors (those whose net worth, excluding the value of their primary residence, is over $1 million) beginning July 4, 2012, but you will have to wait until after January 2013 to solicit nonaccredited investors.

4. Research your options. Make sure the crowdfunding site you choose meets the requirements of the CROWDFUND Act. Crowdfunding investments must be solicited through sites that are registered with the SEC, conduct background checks on companies seeking investments, and screen investors to confirm that they understand the risks involved.

5. Beware of scams. Interest in crowdfunding is high, and the CROWDFUND Act is not yet implemented, which means the market is ripe for scam artists. Be very cautious about anyone claiming they can help you raise capital online for a fee.

6. Create a compelling pitch. If you’re crowdfunding donations, your fund-raising pitch should focus on emotions and get donors excited about your business, your product or service and your entrepreneurial passion. If you’re crowdfunding investments, your approach should focus on the bottom line and the potential for investors to make money.

7. Offer rewards. For investors, the reward is the profit they make from your company, but for donors, you’ll need to offer rewards such as product samples, T-shirts or promotional items, or discounts. Develop different rewards for donors depending on how much they contribute.

8. Spread the word using social media, marketing and PR. Don’t limit your search for funds to the people who frequent the crowdfunding site you choose. Create an integrated marketing campaign that tells everyone you are looking for financing—and makes it simple for them to tell others.

9. Create a video. Make your company stand out from the pack by creating compelling pitch videos—one for donors and one for investors. Post them on your website, the crowdfunding site and YouTube—and increase your chances of going viral.

10. Share information. If you crowdfund investments, the SEC regulates how you communicate with investors. Even if you crowdfund donations, you’ll want to regularly update donors on how your company is doing, the progress of your product or service, and any other news that makes them feel part of your success.

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit her website SmallBizDaily.com to get the scoop on business trends and sign up for free TrendCast reports.

1. Give a speech. Find organizations that your target customers belong to—whether the local marathon runners’ training group, PTA or Rotary club—and offer to speak at their meetings.Create a relevant handout to leave behind, and bring business cards and brochures, too.

2. Start a blog. Adding a blog to your business website is a smart tactic for companies that provide information and expertise, such as accounting or consulting firms. Blog about industry news, timely advice for your customers, or new developments in your business.

3. Comment on other blogs. If you don’t have the time or skill to blog, build your reputation by commenting on your industry’s leading blogs. Make sure your comments are thoughtful and add to the conversation. Don’t be overly promotional, but do include your name and business name.

4. Use Twitter. Use Twitter not just to promote your business, but also to share interesting links and retweet useful information. Focus on quality, not quantity. By consistently sharing good information, you’ll build a reputation as a knowledgeable source.

5. Get LinkedIn. If you own a business-to-business company, LinkedIn Groups and Answers are great ways to share your expertise. Join Groups related to your industry and participate in discussions. Look for LinkedIn Questions related to your business and answer them.

6. Write articles. Blogs and online publications are influential, but print media still carries more weight with most people. Contact trade publications and local newspapers and ask if you can contribute articles related to your industry, or even write a regular column.

7. Become a trusted source. Being quoted in print or online cements your reputation as an expert. Seek out journalists who cover your industry, then make yourself a resource by commenting on their articles and sending them information related to their “beat”…and your business.

8. Lead the way. To become an industry expert, you’ve got to be active in your industry. But don’t just attend industry events and conferences—take a leadership role by offering to head committees, speak at events or develop programs.

9. Network. Be an active networker, both online and offline. Focus not on what you can gain, but on how you can help others by connecting them and sharing valuable information. People will come to view you as a reliable and trustworthy resource.

10. Get involved in your community. Keep a high profile in your community by participating in local events. For instance, if you own a health club, you could sponsor a fitness fair or get a booth. The more active you are in your community, the more business will come your way.

Rieva Lesonsky is founder CEO and President of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit SmallBizDaily.com to sign up for her free TrendCast reports.

http://finance.yahoo.com/news/job-growth-client-sales-soar-221600534.html

SACRAMENTO, Calif.–(BUSINESS WIRE)–

According to a recently completed annual report, California Small Business Development Centers are reporting substantial small business growth in 2011 – helping entrepreneurs create 5,900 new jobs and retain an additional 3,200 jobs that were previously slated for elimination.

Every year, through its 38 individual centers in the state, the California SBDC provides free one-on-one consulting to more than 27,500 entrepreneurs and low-cost training to 38,000 of California’s 1.3 million business owners.

According to the annual report, one key growth area in 2011 was a 55 percent increase in new jobs created in California over 2010. Capital investments also increased to more than $211 million, up from $129.3 million in 2010, resulting in a nearly 40 percent increase in loans and equity for small business clients.

“California Small Business Development Centers are programmed to produce positive economic impacts,” said Priscilla Lopez, state chair of the California SBDC. “The changes from 2010 to 2011, however, were substantial, and primarily attributable to the commitment and investments made by the State of California. We listened to the legislature and were laser-focused on job creation by assisting business owners obtain capital and to increase their sales because that is where job creation originates.”

She added that the state financial assistance was a one-time contribution to the Small Business Development Centers and anticipates that without new resources those reported economic growth areas are likely to decrease next year. For now, she said, the California SBDC is focused on keeping the momentum going and pacing services with client needs. Lopez said additional funding from the Federal Jobs Bill through the U.S. Small Business Administration, and an improving economy also contributed to the 2011 increases.

“At a time when job creation is the highest priority, the Small Business Jobs Act helped the California Small Business Development Center Network (CA SBDC) maximize the number of jobs they created or retained in 2011,” said U.S. SBA District 9 Regional Administrator Elizabeth Echols. “As an important SBA partner, we are proud of the role the California SBDC is playing in our state’s economic recovery.”

Individual centers reported spending more than 100,000 hours assisting small businesses with business plans, loan applications, cash-flow management, government contracting and other needs. As a result of SBDC services, small business clients increased sales by $243.9 million, which resulted in the creation of $37 in new taxable revenue for every $1 invested by the state. Further, clients attributed 815 new business starts to the assistance they received by the California SBDC in 2011.

For more information on the California SBDC or to find a Small Business Development Center near you, go to www.californiasbc.org.

Contact:

NorCal Small Business Development Center Network
Ann Johnson-Stromberg, 707-599-6146
Manager, Communications & Marketing
or
California Small Business Development Centers
Michele Gault, 916-319-9947
Director, Outreach & Partnerships

1. Create a personal Google+ profile. Google+ offers business profiles too, but you need a personal profile first. Signing up is free. Fill in your personal page with as much information as you can about yourself, your business and what you do.
2. Create a Google+ business page. Provide as much information as you can about your business. Consider what potential customers might want to know, including your business address, directions, hours and phone number, photos of your location or product photos.
3. Create circles. Google+ allows you to categorize different people into “circles” and specify which information you share with a particular circle. You can create circles for clients, potential clients, employees, business associates and more; you can also include people in more than one circle.
4. Go public. In addition to posting content to specific circles, you can also post it to the public. This means it will show up when someone does a Google search. Public posts are a great way to expand your audience by exposing your business to people who may never have heard of you.
5. Be engaging. Before posting anything to Google+, consider how it will benefit your audience. Content that gets attention usually includes questions, calls to action, photos or videos, or thought-provoking comments. Try to limit directly promotional posts about your business to about 10 or 20 percent of what you post.
6. Interact. The more you interact on Google+, the faster you build connections and increase your audience. In addition to posting your own content, share and comment on others’ posts (you’ll see them in your Stream). When you share something, credit the originator and add your own thoughts to spark further conversation.
7. Add video. Since Google+ is integrated with YouTube (which is owned by Google), putting video on Google+ can attract more followers. Post how-to videos explaining how to use your product or service, or interview someone on your team about a current industry trend.
8. Promote it. Use the Google+ logo and/or the +1 icon on your website, signage and marketing materials to help people find you on Google+. Download Google+ logos and icons and learn how to use them at http://www.google.com/+/business/brand-guidelines.html.
9. Measure results. The free Google Analytics tool can help you measure engagement on your Google+ page. See who is following your business, what information they like best and what they’re sharing.
10. Use third-party tools. Looking for tools to help integrate your Google+ account into the rest of your social media plan? Currently, only a few tools exist, but more are being developed all the time. Visit http://www.google.com/+/business/3rdpartytools.html to find third-party tools and get updates.

Rieva Lesonsky is founder CEO and President of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva and visit SmallBizDaily.com to sign up for her free TrendCast reports.

1. Understand their expectations. Know what Millennial employees hope to gain from working for you. Chances are, Millennials will make that clear during the job interview—but if they don’t, ask them.
2. Challenge them. Millennials want to make a difference in their jobs from the get-go. Encourage that enthusiasm by assigning them challenging projects from the start, and adding more responsibility as they learn.
3. Define tasks and goals. It may seem contradictory, but while Millennials enjoy independence, they also grew up with “helicopter parents,” teachers and coaches micromanaging their lives. Be crystal clear when assigning tasks. Set incremental deadlines and check in regularly to review progress.
4. Provide ongoing feedback. An annual performance review isn’t enough for Millennials, who want to hear how they’re doing—both good and bad—on an ongoing basis. This may be a more hands-on approach than you’re used to with older employees, but it’s essential for Millennials to thrive.
5. Offer flexibility. Millennials expect work-life balance, and view working remotely and flexible hours as essentials, not extras. Bonus: Offering these options not only attracts and retains Millennials, but pleases older employees, too.
6. Provide continuing education. Millennials want to improve at their jobs. Sign them up for webinars or seminars in their areas of interest; send them to conferences and events to learn from more experienced peers; or simply provide on-the-job training and education.
7. Match them with a mentor. Millennials welcome mentorships, and pairing a Millennial employee with an older, more experienced worker benefits both of them. It also cements bonds, which can help eliminate generational misunderstandings at work.
8. Tailor benefits and rewards to their interests. Millennials may be less interested in benefits like dental insurance and more interested in perks like continuing education. In a 2011 PriceWaterhouse Coopers survey, the majority of Millennials said they would like to customize their benefits.
9. Let them BYOD. (That means “bring your own device.”) Tech-savvy Millennials often prefer to use their own laptops, cellphones or tablets for work instead of a company-issued device. This can save you money; just make sure devices are secure and sensitive information isn’t compromised.
10. Use their social skills. In the 2011 Cisco Connected World Technology Report, 56 percent of Millennials said they wouldn’t work for a company that banned social media in the workplace—or they’d sneak around the policy. Instead of shutting down Facebook or Twitter on the job, enlist Millennials’ social media expertise to enhance your company’s online presence.

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast to get the scoop on business trends and sign up for free TrendCast reports.

1. Tighten your belt. Running lean and mean is essential for small businesses hoping to stay competitive. Look for ways to trim costs whenever you can. Eliminate unnecessary expenses like redundant subscriptions, phone lines or memberships. Review agreements with key vendors annually.
2. Adjust prices. Don’t let rising costs for inventory, materials or supplies take you by surprise. Monitor trends and be ready to increase prices as needed to stay profitable.
3. Find new customers. In tough economic times, keeping a steady supply of new prospects in your sales pipeline is more important than ever. Don’t skimp on marketing activities that help your business generate leads. Consider expanding to new markets or targeting a different subset of customers.
4. Get creative with hiring. You probably need more manpower, but hiring full-time employees is not the only option. Look for lower-cost solutions that also offer flexibility, such as retaining temporary employees, part-time workers or interns, or outsourcing to independent contractors.
5. Maximize productivity. Make sure your staff has the tools they need to be productive. Create systems and processes that streamline operations, and provide training so employees know how to use them.
6. Harness technology. Technology tools like tablet computers and smartphones for your team can quickly pay for themselves in increased productivity. Assess what IT changes make sense for your business. A small outlay to upgrade technology is worth the cost if it helps you stay ahead of the competition.
7. Use social media. Social media is a buzzword for a reason. As more and more Americans join social networking sites, social media is influencing everything from the stores and restaurants customers visit to the services they use and the products they buy. If you haven’t yet explored this marketing tool, make 2012 the year you do so.
8. Monitor your cash flow. Slow-paying customers can put your business at risk. Get accounting software and learn how to use it. Then track your cash flow on a weekly, even daily, basis, and take action to speed income and delay outflows.
9. Keep up with trends. Now more than ever, you need to know the trends brewing in your city, your industry and your market. The needs and wants of both consumers and business-to-business customers are changing rapidly, and if you don’t keep pace, you’ll get left behind.
10. Think strategically. To succeed in business today, you must stay one step ahead of the game. Consider how the trends you’re monitoring will affect your business and your competitors in the years to come. Develop a plan for dealing with threats and taking advantage of opportunities.

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast to get the scoop on business trends and sign up for free TrendCast reports.

1. Ask for referrals. Many entrepreneurs fail to benefit from referrals because they’re simply too shy to ask. Most satisfied customers are happy to give you referrals–but they won’t think of it if you don’t ask them.
2. Know the right time to ask. Aim to gather referrals at the completion of a project or upon delivery of a product. The goal is to approach the customer when they are happy with the purchase and the transaction is still fresh in their minds.
3. Create a system. Set up a procedure for capturing referrals. This can vary depending on your industry. A business-to-business company might ask for referrals during a post-sale phone call or email. A retailer could enclose a card with each purchase that customers can fill out to refer a friend.
4. Offer a reward. Encourage customers to give referrals by offering incentives, such as a discount on their next purchase, a free month of service or a small gift. Making rewards contingent on whether the referral makes a purchase can encourage higher-quality referrals who are more likely to buy.
5. Build trust. Customers don’t want their friends bombarded with marketing messages. Make them comfortable providing referrals by explaining how you will use the contact information they provide. Will you send direct mail? Will you contact the person by phone?
6. Follow up in a timely fashion. If you let referrals languish for months, their value can fade as the relationship between your customer and the prospect changes or your customer becomes less enthusiastic about your business.  Set up a system to contact referrals within two weeks of obtaining them.
7. Mention the connection, but don’t rely on it. When you contact a referral, be sure to let them know who referred them to you. However, don’t assume that this connection alone will spur the prospect to buy. You need to put forth as much effort as you would with any sale.
8. Get to know them. Don’t give a “hard sell.” Lay the groundwork for a relationship by offering the referral something useful as an introduction to your business. This could be a whitepaper related to their industry, a free consultation, or a discount on their first purchase.
9. Provide great service. When you win business from a referral, always provide outstanding service to the new customer. Otherwise, you will make the referring customer look bad for having recommended you, and you might lose not only the new customer’s business, but the old one’s as well.
10. Repeat the cycle. Be sure to ask your new customer for a referral when the time is right—and watch your business grow exponentially!

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast to get the scoop on business trends and sign up for free TrendCast reports.

Do your business’s marketing efforts target Hispanic customers? If not, you could be making a costly mistake. With $1.2 trillion in spending power in 2011, Hispanics are one-sixth of the U.S. population and the nation’s fastest-growing ethnic group. In California, Hispanics account for at least one-third of the population in every county and make $246 billion in consumer purchases annually. “The statistics speak for themselves as to the value of the Hispanic customer,” says SBDC Business Advisor Monica Rayes.

Within the overall Hispanic market, what are some important subcategories business owners should know about?
The U.S. Hispanic market is made up of over 20 Spanish-speaking countries spanning Central and South America, the Caribbean and Spain, with the majority (63 percent) of Hispanics of Mexican descent. In addition to heritage, Rayes notes, there are also generational differences to consider. Native-born Hispanics (born outside the U.S.) primarily speak Spanish and tend to patronize businesses that specifically cater to Hispanics with Spanish-speaking staff. First-generation Hispanics (the first generation in their families born in the U.S.) are usually bilingual, but still very much in tune with their heritage and strongly influenced by older generations. “Second- and third-generation Hispanics are typically bilingual and fully acculturated to the U.S.,” says Rayes. “However, their Hispanic roots still play an influential role in their lives.”

How can a small business owner assess the Hispanic population’s potential as a market for his or her product or service?
Use market analysis and research to assess the Hispanic population’s market potential and determine the marketing methods that will resonate with this audience, says SBDC Business Advisor Johanna Hulme. “Test your product or service with focus groups to evaluate demographic messaging recall, consumer association and brand connection with messaging,” Hulme suggests.

Once a small business owner decides to target Hispanic consumers, what are the first steps to take?
Understanding your target demographic is the most important first step. “For example, if the demographic you are targeting is primarily from Central America or South America, it would be wise to learn a bit about that particular culture and adapt your marketing strategy accordingly,” Hulme says.

How do the particular subcategories you are targeting influence your marketing tactics?
It’s important to identify your target market and the subcategory they belong to. “If your audience is native born, the ads should be in Spanish and include references to heritage and culture that are important to that demographic,” explains Hulme. A U.S.-born Latino, by contrast, will prefer bilingual or “Spanglish” ad campaigns. Regardless of generation or country of origin, says Hulme, “all Latinos share profound characteristics such as the importance of family, product value and consumer loyalty.”

What mistakes do small businesses make in marketing to Hispanic customers?
The most common error is underestimating the buying power of the Hispanic customer, says Rayes, adding that Hispanic household incomes average more than $100,000 and are growing at twice the rate of the general population’s incomes. “In addition, the Hispanic consumer is willing to try new products and services, with a tremendous level of loyalty and influence on their family members’ and friends’ purchasing decisions,” Rayes adds. Another common misconception is that Hispanics are only interested in “Latino” products or brands. In reality, they want to be offered both “Latino” and “American” products so that they can make an informed purchasing decision.

Which marketing or advertising channels work best in reaching the Hispanic consumer?
This depends on your specific target market, says Hulme. Native-born consumers respond to print ads, direct mail, in-store promotions and events where they can sample products or services and learn about them face-to-face. “Relationship building is vital with this audience,” Hulme explains. First-generation consumers prefer email, radio and TV, while second- and third-generation consumers respond to social media, email and TV. (Consider advertising on Spanish-speaking TV station Univision, the number-five network in the United States.)

Is marketing to Hispanic customers something small business owners can do on their own, or should they get professional help?
“If the business owner feels comfortable targeting this audience, or has direct input from the demographic they are targeting, hiring a professional may not be necessary,” says Rayes. However, she acknowledges that often, business owners feel intimidated and fear alienating consumers if they lack awareness of cultural nuances. If you don’t have a good understanding of the target market, Rayes says, consider seeking help from a resource such as the SBDC. With the right approach, “marketing to the Hispanic consumer is not as frightening or mysterious as one might think.”

Rieva Lesonsky is founder and President of GrowBiz Media, a media company that helps entrepreneurs start and grow their businesses. Before launching her business, she was Editorial Director of Entrepreneur Magazine. Follow Rieva at Twitter.com/Rieva, read her blog at SmallBizDaily.com, and visit her website SmallBizTrendCast.com to get the scoop on business trends and sign up for free TrendCast reports.