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Credibly Financial News Roundup for the Week of June 6, 2016


Ben Goldstein

With the world of small business finance changing so quickly, who can stay on top of it all? Here at Credibly, we sift through hundreds of blogs, news alerts, and emerging Fintech trends every day, selecting the most important industry updates so you don’t have to. Here’s the financial news that caught our attention this week.

David vs. Goliath: How E-Commerce Companies Can Win Against Amazon by Pravin Vazirani, LinkedIn Pulse

“Physical retail is dying — a trend which has been ongoing for years and is now accelerating. According to the National Retail Federation, since the start of 2015, the top 10 physical retailers have lost nearly $85 billion dollars worth of market cap…Meanwhile, the US e-commerce market continues to grow quickly. The U.S. Commerce Department shows total online retail sales were over $340 billion in 2015, a 14% increase over the prior year.

“With these strong tailwinds behind the e-commerce market, why are VCs so wary of investing in the space? According to data from the NVCA, it remains a grossly under-invested category…A major reason for this apparent contradiction is the dominance of Amazon. Not only are they the largest pure-play online retailer, their lead is increasing. According to Macquarie Research, Amazon is capturing a shocking 51% of all incremental e-commerce spending. That means all other e-commerce companies — from Walmart.com to BestBuy.com to Target.com — are fighting for the remaining 49%.”

The 7 Secrets to Delegating Effectively by Larry Alton, Inc.

“You know delegation is a critical skill in the workplace, but how effective are you, really? Do you often find yourself with work piling up, even though you’ve committed to delegating more of the low-level tasks bringing you down? Do you find your delegated tasks unsatisfactorily completed? Are you just confused about where to start because you’ve never done it before?

“You’re not alone. Delegating isn’t the simple, straightforward process it masquerades as; it takes time and effort to master the art. But with these seven secrets, you’ll up your game and learn to delegate better than you ever hoped.”

Loyalty Programs Add a Twist to Small Business Marketing by Peter Krasilovsky, NextWaveSMB

“The old paper loyalty punch-cards have been widely upgraded to electronic loyalty programs. Taking off from the success of the Starbucks Gold loyalty program, a large number of these programs are now in the marketplace, including such national brands as Belly, FiveStars, Perka and Fishbowl, as well as many white label products. All tend to complement other promotional efforts, such as digital coupons and prepaid deals.

“Most loyalty programs not only reward returning customers with free items after a certain number of visits and/or spending, but they also help SMBs recognize customers, and to take the personalized data from transactions to spur further engagement with customers via immediate feedback and reviews. The goal, clearly, is to make the SMB engagement with customers more like Cheers than Minority Report.”

What the Best CEOs Can Teach Us About Starting a Small Business by Neil Patel, Forbes

“Rewind to 2008. Elon Musk stands on the edge of an abyss, his companies nearing total failure.

“SpaceX had yet to send a rocket to space. Without a single success, the company struggled to secure a contract or woo investors. They had just enough money to try one more launch.

“Tesla wasn’t faring any better. They had yet to sell any cars — a minor issue. To make matters worse, the world economy was crashing and investment in the auto industry along with it.

“If you’re like most people, you would probably give up at this point. But Elon Musk is not like most people.”

Lending Club’s Ousted CEO Is Plotting an Audacious Comeback Bid by Olivia Oran and Joy Wiltermuth, Reuters

“Ousted Lending Club CEO and cofounder Renaud Laplanche has been speaking to private equity firms and banks about financing a potential buyout of the online lender, according to people familiar with the matter.

“The French entrepreneur, one of the highest-profile names in the fledgling industry, left Lending Club in May after an internal probe found the company had falsified documentation when selling $22 million of loans to an investor.

“The scandal sent shock waves through a sector already dealing with investor nervousness about rising loan losses and cratered Lending Club’s stock, which has lost nearly 40% of its value in under a month.”

5 Ways to Promote Your Small Business Online [Infographic] by Nicole Dean, Trellis

“The first thing you want to do is build a website. Your website is your online storefront. A well designed website is essential for your business, whether you’re selling products or offering services. To get started on a website, you first need to decide on a domain name and a TLD, your top-level domain, such as .com, .net, or .biz.

“Once you decide on one, you will then purchase it through a domain registrar such as GoDaddy, Squarespace, Wix or Web.com. Your next step is to choose an established content management system to manage your website’s content. This will allow you to manage your website’s content without significant coding experience.”


Have you checked out our small business education blog, InCredibly?

Over at In.Credibly we’re helping small businesses evaluate their working capital needs, source the right funding, and put those dollars to use more efficiently. This week, franchise expert Joe Tagliente discussed the four things you need to do before investing in a franchise, and Misty Young explained why your business needs to make compliance a priority — or else.