New York State Tax Law Update and Changes

Recently, franchisEssentials Guest Author, Kathryn Rookes, submitted an article New York State Tax Law, which was posted on this site on July 23, 2009. The article was about a tax law passed by New York State that establishes specific reporting requirements for franchisors in the State of New York. Subsequently, Kathryn submitted a follow up article regarding updates to the state law. The update was posted on this site on August 6, 2009.

In her continuing efforts to keep the franchise community updated with additional changes to the New York State Law, Kathryn has detailed the recent changes accordingly.

New York Tax Law Changes
as submitted by Kathryn Rookes, Attorney, FSB Legal

The New York State Department of Taxation and Finance has made some changes to its new reporting requirements for franchisors.

First, the NYSDTF has implemented an extension procedure for franchisors that are unable to meet the deadline. The extension must be filed before the due date (first due date is September 20, 2009) and once filed, is automatic. The extension is for 90 days.

Next, the NYSDTF has waived some of the information that it previously required, including audited gross sales of a franchise if the franchisor has audited and found gross sales to be different from what the franchisee reported and the amount of sales that a designated supplier has made to a franchisee.

The NYSDTF also has made changes to reporting requirements if the royalties are not paid as a percentage of gross sales.

Finally, the NYSDTF will waive penalties in some situations, when the information filed is incorrect because the franchisee supplied incorrect information to the franchisor without the franchisor’s knowledge.

Kathryn is an experienced franchise attorney and a member of FSB Legal, a virtual law firm. She is one of the very few franchise attorneys in the United States with experience in a government regulatory practice (Maryland Division of Securities), private practice, and as in-house counsel. With this diversity of experience, Kathryn understands the issues that franchisors face on a daily basis.

Has LinkedIn Run Its Course?

LinkedIn logoIs LinkedIn missing the boat in keeping up with Facebook? Is it due to inability to utilize various applications, tools, etc. in making the social networking experience more enjoyable and less regimented. Hey, one can’t even make text “bold” in a discussion!

Would the ability to post actual audio and video within discussions enhance the experience? Has LinkedIn just become a social networking HR site and nothing more? If, and when, the economy turns around and unemployment falls to more respectable levels, will LinkedIn activity decrease significantly?

Personally, I do believe LinkedIn is missing the boat, but I would love to hear your opinion as well.

Please Note

Within 15 minutes of posting this discussion on a Linkedin group, I received the following response that I now feel compelled to share with my readers, along with my response to the same which should clarify that I am, in fact, a Linkedin proponent and only am looking for added enhancements and features to LinkedIn.

Owner of a Marketing Group responded: “Has LinkedIn run its course? Not even close. If you feel it has, move on, and stick to Facebook, period. We have had remarkable results, 20+ new clients in 2009 alone, due to LinkedIn. But, then again, we have a tangible service. How is the “Social Media Coach” biz treating you? If it were not for LinkedIn, I doubt you would even be brandishing that fancy title. Please keep that in mind when being negative about all the benefits that a 100% no-cost LinkedIn account can produce.”

I responded accordingly: “Just because I asked a question, does not mean I am negative. If anything, I utilize social media to encourage participation, which is an integral part of successful social networking.

Further, as much as I utilize LinkedIn, I would like to see more features and enhancements, just as I would with Facebook, Twitter, or any other social media. And, the best way to get LinkedIn to take a look at adding the same, is to discuss the same within the groups. More than likely they are already considering the features I mentioned. Maybe some more discussion would move them along.

I would highly recommend you consider adding Facebook, Twitter and other social media to your LinkedIn activity and your 20+ new clients might have been 40 or more. Integrating all types of social media together, and with traditional marketing, has proven quite successful for many businesses and is advocated by many leading social media experts.

Last, I’m a firm believer in the positive, and in developing and strengthening relationships with everyone and anyone I can help, or that can help me. That being said, I’m amazed you’re as successful as you claim with such a condescending attitude and your lack of ability to see beyond the obvious. So, please consider this social media coaching on the house and with my sincerest compliments.

Oh, and by the way, if you truly embrace LinkedIn and all it has to offer, I would think you would have followed a very common LinkedIn tip, and check an individual’s LinkedIn profile, including connections, group membership and discussion activity, before engaging that individual. In my case, you would have certainly realized I am a LinkedIn proponent by the number of my connections and extensive group participation both in posting discussions and responses alike.”

What is Your Biggest Business Frustration?

Q & ARecently, the question, “What’s your biggest business frustration?” was posted on Linkedin. The question was posted in the small business / franchising Q & A section. Below please find several of the responses from a cross-section of small business professionals . As I have done in the past, the names of the responding individuals will be kept confidential. Instead, they will only identified by their Linkedin statement or profile.

A small business owner provided a brief response:

Three in order….
1) government paperwork
2) employees that do not work while at work
3) taxes…really…tax the rich? Don’t you know it is the rich that pay your paychecks?

An individual that describes himself as a “Marketing Visionary” responded:

a) workers that want a job, not an opportunity
b) prospects thinking your NOT capable because your an SMB
c) vendors offering solutions – a don’t know my business
d) Clients thinking 15 days means 30 days payable in 45

Another small business owner chimed in:

Being a small business owner myself I find it frustrating that clients continually will get ripped off and not get the most for their money because they feel more comfortable going to a ‘big name’ company.

A small business owner in the graphics design business added:

My biggest frustration is clients not taking my advise. My designs are not there to look pretty, I design marketing pieces to accomplish my client’s goals. Many times, clients have a set thing they want to say. Really, they need to think about what the customer wants to hear and how they can help them. Do you want to read a mission statement on a website or do you want to see if the company you are looking at offers the service you are looking for? I get frustrated when clients waste my time and their money. I want them to get something out of their marketing.

Really? Are these really our biggest business frustrations?

Let’s keep the conversation going and get some response from the franchise community. Franchisors, franchise executives, franchisees, franchise brokers, franchise consultants and franchise suppliers, let’s hear what YOU have to say. So, what is YOUR biggest business frustration?

New York Tax Law Update

The following article was submitted by Guest Author, Kathryn Rookes, as a follow up to her previously submitted article, New York State Tax Law, which was posted on this site on July 23, 2009.

Kathryn is an experienced franchise attorney and a member of FSB Legal, a virtual law firm. She is one of the very few franchise attorneys in the United States with experience in a government regulatory practice (Maryland Division of Securities), private practice, and as in-house counsel. With this diversity of experience, Kathryn understands the issues that franchisors face on a daily basis.

New York Tax Law Update
as submitted by Kathryn Rookes, Attorney, FSB Legal

The IFA has received a response from the New York State Department of Taxation and Finance to its July 20 letter.

Reporting Deadlines: The Department is creating an automatic 90-day extension process for the initial as well as all future reporting deadlines. Prior to the initial deadline (set by the Legislature for September 20) the Department will post on its website instructions to request an automatic 90-day extension to December 20, 2009. All future annual deadlines, which were to be due March 20, will be given similar treatment, meaning that if a franchisor requests the extension all annual reports will be due June 20. Permanently moving these deadlines, rather than creating an extension process, would have required an act of the New York State Legislature.

Forms: In the coming days, the Department will post on its website the standardized form franchisors must use to report the required information.

Supplier Sales: The Department has dropped the requirement that franchisors report to the state sales made by “designated” or approved suppliers to New York franchisees. However, sales of supplies from a franchisor or its affiliates directly to a New York franchisee must still be reported.

Franchisee Gross Sales: If the franchisee currently reports gross sales to the franchisor, this information must be supplied to the state in the required reports. If a different performance measure is used (such as room-nights in lodging or cents-per-gallon of product in food service) that calculation must be explained and, where possible, the quantitative data for the relevant reporting period supplied to the state.

Franchisee Identifying Information: The requirement that franchisors report to the state the name, address and New York certificate of authority or federal tax identification number of the franchise remains in effect.

Franchise Failure: A Dose of Reality

success or failureThe other day, Donald Cranford, Editor at Franchise Direct, posted an article about the benefits and risks of multi-unit ownership. Subsequently, he followed it up with the post, “Considering Franchise Failure” and referenced one of my articles that related to my own experience of franchise failure, and the fear and consequences thereof. I cannot thank Donald enough for posting these articles as they may assist franchisees that are experiencing difficulties, explore their options and keep their heads out of the sand.

Considering Franchise Failure
by Donald Cranford
as posted July 30, 2009 (Franchise Direct)

Yesterday we wrote about the benefits and risks of multi-unit franchise ownership. With a bit of research and pragmatism, multi-unit ownership can work for you. That said, business can be difficult sometimes and sometimes franchises fail.

Especially given the state of the economy at the present, failure is something that every franchisee and franchisor must confront. There’s no point in tip-toeing over the truth. Times are tough in the small business world. Only by acknowledging the chance of failure can we overcome it.

For a thoughtful meditation on the causes of failure in franchising and ways of overcome the stigma of watching your business collapse, we’d like to recommend the writing of Paul Segreto, who has a run multi-unit franchise and now blogs at franchiseEssentials.

We recently came across Paul’s thoughts on the subject of franchise failure and thought they were illuminating.

In this blog post, Paul frankly discusses how his franchise failed, and does not avoid pointing the blame at himself.

“Let me clarify something. I failed as a franchisee. Not because of anything the franchisor did or didn’t do but because I put and kept my head in the sand and did not face reality. I could go on and make excuses about things that happened around me but at the end of the day I could have turned things around if I got my own head out of the sand, made some difficult decisions and took full, immediate responsibility.”

Ultimately, though, having experienced the ups and downs of franchise ownership, Paul states that failure is something that he has learned from and the experience has inspired him in business.

“Yes, it was a tremendous learning experience but not one I would bestow or wish on anyone. Now, all I can do is to offer my experience to anyone in the franchise industry that needs assistance. As we’ve entered 2009 in the realms of economic uncertainty, I’m certain already difficult situations have been compounded but I’m confident a snap back to reality could only help. If just one franchise business is saved from the consequences of failure, then we’ve made progress. Progress we’ll continue to build upon.”

A dose of reality can prove quite beneficial when considering buying a franchise.

Social Media Tip: High Cost of Complacency

The following is an excerpt from Online Social Networking blog (Larry Brauner, author)

Companies that neglect their social media presence will suffer in several ways:

* They’ll have no influence over their online reputation.
* Their customers will view them as backward.
* They won’t receive traffic from social media sites.
* They’ll receive less search engine traffic too.

New York State Passes Tax Law For Franchisors

The following article was submitted by Guest Author, Kathryn Rookes. Kathryn is an experienced franchise attorney and a member of FSB Legal, a virtual law firm. She is one of the very few franchise attorneys in the United States with experience in a government regulatory practice (Maryland Division of Securities), private practice, and as in-house counsel. With this diversity of experience, Kathryn understands the issues that franchisors face on a daily basis.

New York State Tax Law
as submitted by Kathryn Rookes, Attorney, FSB Legal

NY TaxNew York state has become the first state to pass a law that requires franchisors to provide detailed information on their franchisees and their franchisees’ operations to the state, so that the state can compare the submitted information to the tax returns that the franchisees file with the state. Complying with this new law can be quite burdensome and many franchisors do not even collect some of the information that must be submitted to the state of New York.

Who Must File?

The New York law applies to every franchisor that has at least one franchise in New York state that is required to be registered as a sales tax vendor. The law does not require that the franchisor itself be physically present in New York and applies even if the franchisor does not conduct any business in New York, other than having New York franchises.

The actual franchisees have no reporting responsibility under this new law, however, each reporting franchisor should let its franchisees know that it will be providing information on its New York franchises in its annual report.

What Must Be Reported?

The information that franchisors must report on their New York franchises includes:

· Each franchisee’s legal name
· Each franchisee’s phone number
· Each franchisee’s d/b/a name, if different from its legal name
· The owners’ names of each franchisee (e.g., principal shareholder, LLC member)
· Each franchisee’s Federal Employer Identification number (for an individual franchisee, this will be each franchisee’s social security number)
· Each franchisee’s New York Sales Tax Certificate of Authority number
· The beginning date of each franchisee’s unit
· Each franchise unit’s physical address
· Each franchise unit’s mailing address, if different
· Each franchisee’s gross sales, as reported under each franchise agreement
· Any discrepancies between each franchisee’s reported gross sales and gross sales of any audit that the franchisor conducted
· If known, the amount of New York state and local sales tax that each franchisee collected at each franchised unit
· The amount of royalty payments each franchisee paid to its franchisor
· The percentage of royalty that each franchisee pays to its franchisor
· The amount of sales the franchisor or its affiliates made to each franchisee
· The amount of sales each of the franchisor’s designated suppliers made to each franchisee

As you can see, the information required is quite extensive. Many franchisors will have to amend the manner in which they capture data on each New York franchise, as they may not currently be gathering all of the required information.

When Are Reports Due?

The first report under this new law is due September 20, 2009 and must contain information from March 1, 2009 to August 31, 2009. After that, franchisors must file by March 20 of each year, and each report must contain information from the end of the previous report to February 28 of that year.

Franchisees Must Be Notified

By March 20 of each year, the franchisor must provide each New York franchisee with a statement that includes all of the information that the franchisor submitted as part of its report. The statement may be in summary form, as long as certain of the required information is included. Each franchisor should send this statement to its franchisees in such a manner as to be able to verify that each statement was sent in a proper and timely manner.

Where Do You File?

Franchisors must file their information return electronically with the New York State Department of Taxation and Finance. To file a return and for additional information go to the Tax Department’s Web site. Information on how to file will be available at this site after September 1, 2009.

What Happens If You Don’t File?

Violations of the law can result in a penalty of $500 for 10 or fewer failures and up to $50 for each additional failure. If a franchisor fails to timely file an information return under the new law, additional penalties of not less than $500 but up to $2000, will apply to each failure. The total penalties assessed for each reporting period may not exceed $10,000.

Social Media Training For Employees

Yesterday, I read an informative article by Ben Parr (Mashable) about training new employees in social media. The article, “How to Train New Employees in Social Media” was posted on the American Express Open Small Business site and included the following seven tips to social media training:

1. Consider writing guidelines or a social media policy: A policy can clear up confusion and help you keep employee focus away from what they shouldn’t do and towards what they should be doing. We wrote great guides on whether you should have a policy and 10 must-haves for any social media policy over at Mashable.

2. Make it clear you aren’t policing: The focus is on ways to use social media to promote the business, rather than ways to avoid embarrassment. Make that clear to new recruits and stress that you won’t be policing. Rather, you’ll be trusting in their good judgment and their ability to control privacy settings. The Associated Press quickly learned what happens when you become overbearing.

3. Test their social media knowledge: You’re going to have to individualize each employee’s social media training. While one may have 10,000 followers on Twitter, the other may have no idea what a blog even is. Don’t assume everyone’s at the same level.

4. Have them start their own blog: If your employees have writing-specific duties, give them a homework assignment: start your own blog. The practice of setting up a WordPress account, writing posts, and promoting them is real-world education.

5. Give them required reading: Give them a good book or two on using Twitter or pitching to blogs. Give them a set of blogs (don’t forget Mashable!) that they need to read. Have them subscribe via RSS for efficiency’s sake. Finally, encourage them to subscribe to other blogs and explore their interests.

6. Hand them the reigns: They can read and learn, but you have to trust them eventually with the reigns. Once your new employees are getting comfortable, have them tweeting, making videos, and coming up with initiatives. The more they submerge themselves, the faster they’ll learn.

7. Impress upon them the importance of social media: Yes, some employees simply won’t get it unless you put it into context. Explain how far your reach goes with a single tweet, or provide examples of how businesses were hurt by an inability to understand Facebook.

Expansion Plan Includes Services To Independent Small Businesses

Small businesses operate in a variety of industries and under an assortment of business models. Franchising just happens to be a very popular business model that has been embraced worldwide. The difference, outside franchising, is the small business owner’s sole responsibility and efforts to market the business to consumers (B2C) or to other businesses (B2B).

RelationshipMarketingIn a franchise environment, franchisees are often involved in the brand’s local cooperatives where economy of scale prevails, making marketing much more cost-effective than for one location. Further, as many franchise organizations have internal marketing departments, or the luxury of a marketing agency, a great deal of professional experience is available to assist franchisees in developing effective marketing strategies and exploring new tools and technology that enhance otherwise mundane marketing efforts. Outside the franchise arena, small business owners must fend for themselves when developing strategies that must be innovative, just to compete. Often, trial and error becomes the norm, rather than the exception.

Well, the answer for the small business community is close at hand. Due to increasing popular demand, franchisEssentials is proud to expand its marketing and business development services outside the franchise industry. Initially, we will offer our proven services, including social media marketing, to independent small businesses within the State of Texas.

Our brand in this venture will be known as SmallBusinEssentials, and similar to franchisEssentials, is dedicated to small business success at all levels. In the near future, we will create an interactive site, similar to franchisEssentials site, with information and breaking news, relevant to the small business community.

Our services and resources, that have proven extremely effective for franchise businesses throughout the United States, in Canada and in several other international markets, will be available to small businesses across various industry segments including retail and service businesses, professional agencies, network marketing and more. Initially to be rolled out in Texas, services to be provided by staff, strategic partners and independent consultants to include:

  • Integrated Marketing
  • Web Development
  • Search Engine Optimization (SEO)
  • Content Development & Management
  • Blog Development
  • Local Business Listings Management
  • Mobile Marketing
  • Email Marketing
  • Graphic Design
  • Online Brand Management
  • Online Public Relations
  • Social Media Marketing & Management
  • Social Networking
  • Personal Branding
  • Virtual and In-person Training in Technology & Sales

For more information please contact Paul Segreto by email at segreto.paul@gmail.com or submit your comments or questions below.

Top Five Social Media Tips For Small Business

The following article was written by Guest Author, Linda Daichendt. Linda is Founder, CEO and Managing Consultant at Strategic Growth Concepts, a consulting firm specializing in start-up, small and mid-sized businesses, and a Strategic Partner of franchisEssentials. She is a recognized expert with 20+ years experience in providing Marketing, Operations, HR, and Strategic planning services to start-up, small and mid-sized businesses. Linda can be contacted at linda@strategicgrowthconcepts.com and the company website at www.strategicgrowthconcepts.com.

Top 5 Social Media Tips for Small Business
by Linda Daichendt
as posted on Marketing With New Technology July 16, 2009
(Please Note: some content in this posting is from an article by Mya Frazier for Bankrate.com)

A few years ago, using the Internet to market a small business simply meant to create a presence online with a simple, informational Web site. Then came the demands of search engine optimization to ensure Google and Yahoo searches yielded top-ranked results for your company. Was your business’s Web site chock full of the key search terms that would bring it to the attention of customers?

social-media-trendsToday, social media is transforming the small-business marketing landscape. Social media are Web- or mobile-based tools for sharing and discussing information. It’s not just for seeing who your high school sweetheart married. Businesses can tap into powerful networking sites and other social media to drive customers to their shops or companies.

If done right, small-business owners might even be able to slash their traditional marketing spending to zero. Writing blogs (short for “Web logs”) or on-going online commentary using social-networking sites, such as Facebook, MySpace, LinkedIn, Twitter and YouTube, can provide inexpensive but powerful online marketing.

Because it’s free, people think it’s easy to create a social media presence. But this attitude can lead to missteps. So before you dive headlong into social media, take some time to observe the customs and social norms of these new forms of communications, says David Spark, founder of Spark Media Solutions, a San Francisco-based firm that helps companies tell their story through social media. “Also think about your strategy for effectively utilizing social media before you jump in,” says Linda Daichendt, CEO/Managing Consultant of Strategic Growth Concepts. “It’s easier to avoid costly mistakes before you begin than to correct them after they’ve done damage to your company’s reputation.”

New_rules_of_marketing_and_PR“Think of social media as a cocktail party,” says, David Meerman Scott, author of “The New Rules of Marketing and PR” and “World Wide Rave,” books about how to create buzz online. “You don’t go into the cocktail party and go into the middle room and scream at the top of your lungs and say, ‘Buy my products.’ … What works is you have some meaningful conversation first. And that’s just how social media works.”

If you decide to take the social-networking plunge, here are five ways to harness social media to help your business.

1. Use free sites. Use free online services, such as the mobile short-message site Twitter, and popular networking sites Facebook and MySpace, to post significant news, specials or events. For example, you run a small Italian restaurant with a loyal following. You could create a Twitter account and upload the lunch or dinner specials via “tweets,” or short messages of up to 140 characters, daily to customers’ smart phones or to other Web sites.

“All you have to do is give a (Twitter) handle and start a conversation. You could put the Twitter handle on the menu or in the restaurant,” says Chris Abraham, Abraham Harrison LLC, a Washington, D.C.-based digital public relations agency. Granted, social networking sites are still for early adopters. “You aren’t going to get Aunt Matilda to tweet about the experience she had at dinner,” Abraham says.

Abraham considers Twitter one of the easiest ways for a newbie to social media to get started. “It’s more challenging to do Facebook,” Abraham says. “You have to create a personal profile, create a page and so on. With Twitter, if you’re Joe Smith with Motorcycle Emporium, you don’t have to create a page. And you can create Twitter updates via a phone or mobile device easily.”

“Don’t try to reinvent the wheel,” he says. “There are lots of people sold on really expensive solutions, but two of the best investments for reaching out to people and engaging with them are free on Twitter and Facebook.”

2. Shift marketing costs to social media. After learning how social networking operates, use social media to free up traditional marketing dollars for your small business by putting it online. You can quickly learn which of your Facebook or MySpace “friends” or online “group” members received and responded to your message.

Stanya Doty has cut her print marketing budget to zero. As owner of Simple Indulgences, a wine and high-end gift shop in Delaware, Ohio, she began using Facebook in December 2008 to communicate with her brother but quickly realized the online marketing possibilities.

“I thought, ‘Oh, my gosh, there are so many people here,’ ” she says. Indeed, Facebook boasts 200 million users worldwide. In April 2009, she began promoting monthly wine tastings via a Facebook page for the shop that quickly attracted 100 members. Combined with an e-newsletter created using the do-it-yourself, e-mail marketing Web site Constant Contact, she keeps enough buzz going about her shop that her advertising budget for local print ads no longer seemed necessary. She usually sends out about 700 e-mails, with the response rate sometimes reaching nearly 50 percent. It sure beats a postal mailing. “If I sent out a postcard with postage and paid for all that, I’d still have no idea who read it and who threw it away,” she says.

Indeed, unlike a print ad, Doty gets instant, measurable results. “On Facebook, you can see who has responded to invites,” she says. “It’s easy, it’s cheap and I’m actually appealing to people that at first know me from the store and then hopefully … pass the word along throughout their networks.”

google-yahoo-thumb23. Do your own social-media optimization project. Learn about the competition in your industry and geographic region that are tapping social networking. Spark recommends starting by researching the competition in the major search engines — Google and Yahoo.

“Type in keywords and phrases that people would use to find you, like ‘plumber’ and ‘San Francisco.’ If you don’t appear in the top percentage of pages, take a look at the Website of those plumbers that do show up,” says Spark. “Look at their pages, and usually they will have a lot of content on their sites.”

To increase a business’s presence on the Internet, Spark advocates companies create blogs, newsletters and other articles on their sites to bolster the number of keywords — terms that search engines recognize — to boost their ranking in all-important Web searches.

“That’s the way people discover you,” he says. “Take that plumber in San Francisco. The right search terms might just be ‘clogged toilet and San Francisco.’” “That tells me I should write … in my blog about how to fix a clogged toilet and mention that I am a plumber in San Francisco,” he says.

4. Take social-network marketing to the next level. Create and post richer content about what your customers would expect from someone in your business. Don’t view social media sites as a place to simply hype your wares. It’s a place for conversation.

“Social media is about earning attention,” says David Meerman Scott, author of “The New Rules of Marketing and PR” and “World Wide Rave,” books about how to create buzz online. “What’s most important is to forget about what your company does. Instead, think about the people who are buying your products. Simply hyping products and services online and in social media sites completely backfires. People are not looking for products but for something fun. They are looking to make connections,” Scott says.

So it’s all about having something interesting to say or show. It could be a blog, or a video on the video-sharing Website YouTube.

For example, if you’re a caterer, instead of talking about your service, create engaging culinary content. Imagine positioning yourself as a gourmet magazine on the Web, complete with links to a video you uploaded to YouTube.

“A caterer could create a blog with information about how to create a fantastic party, and each blog post or YouTube video could be another installment,” Scott says. “On the Web, you are what you publish and being on the Web is about publishing information.”

So back to that plumber faced with the prospect of dropping an expensive Yellow Pages listing but worried about customers not finding him if they have a burst pipe or a misfiring shower head. Scott recommends the plumber post a list of “the 100 home fixes for common plumbing problems.”

“All of a sudden you are going to get indexed very highly in the search engines, and people are going to share that content with their friends,” he says. “When someone puts an update on Facebook asking if anyone knows a good plumber in Boston, a friend might point to your content.”

blogging5. Use blogging to drive search results and help new customers find you. Lately, blogging has gained greater attention, with the advent of “micro-blogging” on Twitter. But consider the time commitment and strategy before launching an account.

Even with the spread of micro-blogging, Abraham remains a big fan of traditional blogs, which are lengthier and show up on Web sites. In general, no matter what form the blog takes, it should be consistent over time.

“If you can’t keep up one (blog) post a day or 12 tweets a day, do one tweet every Thursday. Consistency in blogging or tweeting will create a relationship of trust with your followers or readers. Do it once a week, but for the next two years,” Abraham says.

And don’t spend extra money on blogging software, technical help, or a ghost writer for your blog. To get started, sign up with WordPress.com or Blogger – both are free blogging platforms which are easy to use for beginners.

Additional opportunities within the social media environment include: online radio shows on platforms such as BlogTalkRadio, social networking sites such as LinkedIN, Plaxo, and FriendFeed, and a wide variety of additional tools as well depending on your type of business.

Following these social media basics for small business will get your company started on the right road to gaining new customers and increased revenue via social media.