It is hard to recognize how the world has changed until we stop for a moment and think about how different it is from when you where a kid or perhaps even a few years ago. In recent weeks social media has significantly spread the will of the people in Egypt and shared it with the world. Without tools like Facebook and Twitter it would be difficult to have widespread conversations of this magnitude.

Social media communication tools have profoundly changed our lives and how we interact with one another and the world around us. Friends on social media are increasingly becoming people’s trusted sources of information, even more than search engines. More people are finding my blog from Linkedin, Twitter and Facebook referrals than from Google.

Conventional media is no longer always the driving influencer of public opinion. On Twitter, some individuals now have a million or more followers. Facebook pages can have hundreds of thousands of fans, and YouTube videos can get millions of views when they go viral. Most of this content is coming from regular people like you and me rather than mainstream media organizations.

Thanks to social media, it’s easier than ever to start and launch a business today. We can locate potential clients and employees through interest-focused Facebook groups, Twitter searches, and business social networks, but perhaps more importantly, social media gives businesses a new cost-effective advertising medium.  Who we do business with and how we promote that business has moved increasingly online, and for small business especially, social media has proved valuable.

Take a moment and look around you. Changes are happening everywhere and can be seen especially in social media. Television advertising is not likely to disappear anytime soon, nor will the need to communicate by phone or meet people in person, but social media is providing yet one more means of connecting with people all over this planet.  Social media can give all of us a greater choice in how we live and what happens in our personal and business world.

Predicting the economy today is like flipping a coin. Heads you win, tails you lose. There is an equal chance you’ll experience some good and bad economic impact over the next two years.

With GDP expected to be 3.4% and 3.8% respectively over the next two years, you will likely notice some improvement in the world around you. Auto sales, which have been almost non-existent over the past several years, are recovering nicely and will experience positive gains as consumers replace older automobiles for more fuel efficient ones. Interest rates may increase slightly but should remain near decade lows so those that do borrow will benefit.

Businesses can expense 100 percent of their new capital assets through 2011, plus claim a bonus depreciation allowance of 50 percent during 2012. This will allow businesses to write off their investments in one year, saving them taxes, instead of depreciating the investments over time. With U.S. companies sitting on $2 trillion, the tax cut should stimulate business expansion and spending.

But don’t get too excited. There will be plenty of struggles to offset the gains. Unemployment is expected to be around 9% when the next presidential election occurs. And the housing market will sputter along as many markets continue to see falling home values and foreclosures continue to mount.

State and local governments are facing significant shortfalls in their operating budgets and an underfunding of employee pension plans. Expect to see significant program cuts as well as a reduction of force in years to come.

For most of us, we just don’t know what’s real anymore. We want this to just go away and get back to the way things were. However, the reality is more like the coin flip. Expect good news tempered with bad. If you get down, just flip the coin again and something good is bound to come up. 

My daughter recently started a new career in financial sales and she called to ask me for some sales advice. I guess I should be flattered. We were discussing the merits of reaching a broad audience using social networking but we kept coming back to one thing that works the best. You and me! It’s the personal connection that still makes it or breaks it in this world.

The Internet, social networking, cloud computing and other technology advances are fundamentally changing the way we do business. New technology enables instant communications, messaging, and information access at super-sonic speed, and our customers expect immediate information and response.

The golden rule used to be that if contacted by a customer that you would get back to them within 24 hours. Today, the expectation is within a couple of hours or less. In fact, in just 2 hours, 25,000 new users join Twitter, 5.4 million tweets are sent, 5 million new status updates on Facebook are published, 1.6 million applications are installed, 167 million videos are viewed on Youtube and the list goes on.

The popularity of social media sites such as Facebook, Twitter, MySpace, YouTube, and LinkedIn have lured many sales pros into scaling back their personal cold calls and relying on social media to get more qualified leads. Some salespeople tell me they actually get new customers through social media. Well, maybe if you have a commodity business. I do make many contacts this way myself but it still requires personal connection and referrals to solidify the bond.

In this world of iPads and iPods, business decisions are still based on personal relationships. Customers make their purchase decision the old-fashioned way: it’s because they trust the salesperson and their company. Think about it. We are selling products, services, investments, systems, etc. and asking people for their time and money. Why would they work with someone who they don’t know or hasn’t been referred?

There is an old saying in sales: People buy on emotion and justify with logic. If your customers don’t like you, they won’t buy from you. You can try to impress your customers with your new iPad but to win them over; you’ll have to prove that you’re honest and reliable. The reality is you need people to start liking you within the first few seconds of your relationship. New gadgets won’t make it happen, but a trusted referral and a personal connection will.

It seemed to me that people were looking forward to starting the New Year this year more than ever. As we peer ahead, we are anticipating changes that will set us on a course for renewed hopes and dreams. But for a large group of us, the Baby Boomers, this New Year had special significance.

Starting at the stroke of midnight on New Years day, the first baby boomers turned 65 years old. This special birthday will repeat itself each and every day for 10,000 more of us for the next 19 years. By the sheer force of its numbers, the boomers are a demographic bulge that will remodel society as it passes through it.

Most immediately, the boomers will begin to draw government benefits such as Social Security and Medicare. Both entitlement programs will be exceedingly costly and both administrations have stated, “projected long-run growth rates are not sustainable under current financing arrangements.” What does this mean? Either long-term benefits must decrease, or taxes must increase if benefits are to continue at their current levels.

Given the political clout that seniors have and are likely to retain in the future, an increase in payroll taxes to support their needs seems entirely likely. For taxpayers, the boomers’ retirement means that younger workers will have to bear a much larger burden in order to support the mushrooming number of retirees. Currently, there are 3.3 U.S. workers to support each retiree, but by 2030, this number will fall to only two.

In addition, the baby boomer group makes up approximately 25% of the American population, considerably more than any other age group. This imbalance in the age ratio of the overall population will create serious gaps causing a strain on the future economy. As the baby boomer generation retires, then there will be a huge workforce shortage. Companies will find it difficult to bridge the gap. The overall population is going to remain the same but the available workforce is going to decrease.

In the next couple decades, there will be a significant drag on U.S. economic growth. While increases in technology, medicine, worker productivity and taxes may offset some of this burden, it remains to be seen how the U.S. will deal with what will be arguably one of the most difficult social and financial burdens it has ever faced.

2010 wasn’t a bad year, especially if you compare it to 2009, which was a really bad one. Unless you like roller coasters, then you’ve had the ride of your life. Most of us have seen better days and the economy continues to make headlines for all the wrong reasons. But does 2010 make it to the list of years we wish to forget?

I know what your thinking. In 2010 we’ve endured many hardships like the BP oil spill, the sick housing market, high unemployment and rising budget deficits. Let's also remember, however, that 2010 was a year that brought better business conditions across the country. It's clear now that while the recovery may not be as robust as we would have liked, it sure beats a depression which was a very real prospect a couple of years ago.

According to economists the recession ended in the summer of 2009. In fact, the Commerce Department reported that the U.S. economy grew at 2.6% in the third quarter, slightly ahead of the 2.5% increase that had been announced. The upward revision signals an improving recovery boosted by higher consumer spending, business investment and increased exports. Some analysts predict economic growth of 3.5% for the fourth quarter.

As far as Uncle Sam is concerned, the numbers indicate that the U.S. economy grew throughout 2010. But they aren't telling the whole story, either. According to Sageworks, a company that specializes in analyzing financial data from thousands of U.S. firms, sales revenue at publicly traded companies did rise more than 2.6 percent in 2010. At the same time, however, sales at privately held companies, a group that includes virtually all of the nation's small businesses, dropped by nearly five percent this year.

Did you realize that small businesses employ half of all Americans and have traditionally generated the majority of the country's new jobs? Until the recovery reaches beyond the corporations and graces our small businesses, too many of us will continue to wonder why this economic recovery hasn’t reached us yet. But we are a hardy soul. While small businesses are still feeling the brunt of the recession, we enter 2011 motivated to grow and with realistic expectations for a better year ahead. 

1. Power To The People

Your customers will be putting more time and energy into finding good values, researching your company, understanding the service agreement and will be more informed on product performance facts, environmental impact, safety concerns and ethical business practices more than ever before.

2. Back To The Basics

Your customers are looking for value and simpler alternatives to existing choices. People from every demographic are finding their way to Wal-Mart, Target and COSTCO and it’s no different for other businesses. The financial pressures reached far and wide during the past few years causing people and businesses to embrace “less is more”.

3. Green Is Good

As the ecological influence increases, companies will pay more attention to the environmental costs, and will increasingly switch to bottles, boxes and other solutions that reduce waste. The trend will be to reuse, recycle, remove and renew.

4. Respect My Privacy

While adoption of online business transactions are under way in many enterprises, organizations will need to address concerns around data privacy, identity management, system security and the rising impact of social interactions.

5. Tell Me The Truth

Legal requirements and competitive pressures will force companies to increase disclosure about everything from parts origins to carbon footprints and sourcing. Customers want honest, open communication and they will reward businesses with their loyalty as long as they can trust them and feel they embrace similar values.

6. The Time Is Now

The Web is evolving into a constantly updating stream of real-time information, conversation, statistics and images. Businesses must be diligent monitoring all forms of social and digital media and be prepared to react to any negatives associated with their company or brand.

7. Senior Moments

As the world’s largest demographic segment grows older, we should be ready for a proliferation of products and services that cater to boomers as they struggle to live independently for as long as they can. 

Does someone have to be born a salesperson or can they be taught? How do you know if someone will make a good salesperson? It’s an age-old question for many companies and I believe salespeople can be taught the art of sales. You can teach someone selling skills, but the learning curve is shorter for people with key character traits.

The two most important core traits are understanding and drive. The best salespeople believe they are fulfilling a customer need rather than pushing product down someone’s throat. They have a natural ability to identify a prospect’s need by asking probing questions, to affirm or better yet, relate to that need and to demonstrate how their product or service can uniquely address it.

If a salesperson doesn’t listen well or ask good questions, they haven’t yet mastered the art of understanding. An understanding salesperson shows their customers that they care, understand and connect with the person. Good salespeople can form a relationship with a prospect by the end of the first call in many cases.

The drive to succeed is equally important. Driven salespeople have no fear of rejection, always ask for the business, and are persistent at overcoming a prospect’s objections. They are self-motivated to reach financial targets and won’t stop until they succeed. But if they have drive without understanding, it can result in lost customers and prospects because they feel you pushed a product upon them regardless of how it fit their needs.

There are other traits to watch out for when looking for sales talent or assessing the abilities of your existing sales team. The must have the ability to quickly connect with strangers. They must be organized territory managers and follow-through. They plan before making each sales call, familiarizing themselves with their prospect, mapping out a game plan ahead of time. They listen more than talk. They concentrate on what the prospect is saying, catching important buying cues and uncovering a need they can solve. These salespeople ask thoughtful follow-up questions and are respectful of other opinions. The best salespeople make time to prospect. They approach selling with discipline, setting a schedule they can commit to every day. Despite the freedom that comes with a sales job, they have figured out how to stay focused and generate results.

Equipping your sales team with these skills will produce significant performance improvement for your organization. Review your sales team often, identify skill gaps and address deficiencies immediately. You can’t afford a weak link in your sales force. Provide the training and one-on-one coaching your team needs. Rather than looking at it as an extra cost, consider it a smart investment. 

The mad rush is in full swing for most people and companies as they try to capitalize on holiday shopping, last minute orders and capital purchases placed before the end of the year.  This includes non-profit organizations that receive as much as 40% of their annual donations during the month of December.

Even during these times of economic uncertainty, Americans give over $300 billion to charities each year. Smart givers generally don't give reactively in a knee-jerk reaction. They don't respond to the first organization that appeals for help. They take the time to identify which causes are most important to them and their families. And they are specific about the change they want to affect.

I came across one such organization called Skip1.org. They are a very small non-profit organization focused on helping fight homelessness in the U.S. According to the Census Bureau, 43.6 million people lived in poverty in 2009, which was up from 39.8 million in 2008.

The organization has come up with a clever idea to help people fund their charitable contribution called SkipDay™. Basically it’s asking people to “skip” something and donate the money they would have spent on a meal, a coffee, a magazine, a haircut or anything else to help support their cause. One hundred percent of the money donated to the organization goes to the charitable work it does.

Needless to say, there are many non-profits who would gladly accept your donations during this critical fundraising period. Do your research and choose an organization to support. People are counting on you and me to do our best. 

There is one thing you can expect after a Thanksgiving holiday. No, I’m not talking about Black Friday or Cyber Monday. I’m talking about leftovers. No matter how hard you try, it always happens. Your fridge has filled up with the leftovers of past days and week.  And I hope that you didn’t throw away perfectly good food. The turkey carcass or ham bones make for great soup, the mashed potatoes are repurposed into potato pancakes, and even the cranberry sauce can be mixed with cream cheese to make a great bagel spread.

Have you ever considered using leftovers in your business? Yes, I said leftovers. The abandoned equipment and forgotten things that often find their way to dark warehouse corner covered in cobwebs or lying dormant in some storage lot. There can be good life in the scraps or remnants of other people’s dreams.

Used equipment can be a viable choice for you if you’re planning on growing your business. Every piece of equipment that you now operate is used equipment. In an expansion, replacement, or new plant construction why not add more? With used equipment the return on investment can be substantially higher than with new. Growing your business during economic uncertain times may not be feasible because of high and rising costs of new equipment but purchasing used equipment may be an attractive solution.

If you’re not the leftover type, an alternative solution may be to rent the equipment you need. Many small businesses start out working almost entirely with rental equipment. As time goes on, some choose to expand their equipment fleet, while others stick to renting. Buying it is an investment that brings pride of ownership and tangible assets, and marks you as a going concern but renting it can make your life easier and your accounting simpler.

In the end, the decision to buy or rent can boil down to the kind of business you want to run. Is it a lean, almost virtual company where your biggest asset is your expertise, or a more traditional, large-scale company with the material assets to prove it?

As the Thanksgiving holiday approaches this week, I can’t help but to think about a simple but important business concept - the “Thank You”. These two words, when used regularly and with true sincerity, can create loyal customers who are willing to give you repeat business because they know they are valued. Have you ever gone through a check out at store and the person acted like they were doing you a favor? Ok, you get.

Be thankful for your customers because without them, you wouldn’t have a business or a job and perhaps no turkey on the table this week.  It’s never too late to tell your customers how you are thankful for them.  In fact, start today by making a list of your best customers. You can call them, send them an email or you can write a thank you note that says how important they are to you and your family. Think about it. When is the last time you received a letter thanking you for your business? And, this will bring you more business and build customer loyalty. No matter how crazy life becomes or however busy you are, don’t let yourself get like the cashier in the previous paragraph.

Be thankful for your employees. They are who and what your customers think of when they think about your business. Employees who are empowered and who feel great about where they work can turn that into positive experiences for customers.  Watch how your employees interact with your customers and when they treat your customers just the way you would, pull them aside and say thank you – great job! Let them know it's not an afterthought, and you are taking the time to look them in the eye and say it face to face. Like customers, employees who are satisfied in the workplace will tell others how great a company they work for and will attract other talent for you when you need to grow.

Be thankful for your business suppliers.  We rely on many other businesses and people to keep our business flowing smoothly each day. From the delivery service to the copy machines to the business supplies and yes, even the coffee barista, we could not run our business without them. Here’s an idea: pay your bills promptly. Especially in the small business arena, suppliers notice. These are your business partners, they play a vital role and it’s important to tell them how much you appreciate them and what they do for you.

To everyone, Happy Thanksgiving and I hope that you will think about all the people and things you are thankful for. I am very thankful for all of you, my readers.  Without you, I would be talking to myself so, thank you so much for your support and loyalty. And to all those who serve (or served and families) in the military to help preserve our beautiful country and way of life, thank you!