Extra, Extra! Small Biz is All About It

The first year in the new decade was packed with global events that broke news and shaped small business in unexpected ways.

Haiti Earthquake

When the 7.0 magnitude earthquake caused extreme damage to Haiti, business owners thousands of miles away responded by giving a lending hand to victims and their families. One company, Parsippany, NJ-based B&G Foods, a midsize manufacturer and distributor of shelf-stable foods donated a full truckload of canned meat, valued at $160,000.

Another manufacturing business, Seabox Inc., of East Riverton, NJ was inspired by one of the company’s engineers, Werner Guerrier, a Haitian native who lost his sister and nephew in the earthquake. They donated a 20-foot shipping container filled with food, water, and clothing for victims. Another company, CarusoApps.com of Staten Island donated 20 percent of their app sales for a month to Haiti victims.

Bed Bugs Take Over Manhattan

These creepy-crawlers infested NYC in near epidemic proportions, but for some business owners (e.g., exterminators) these little pests have caused a rise in profits. The Bug Stops Here, a Bohemia, NY-based pest control company saw a 60 percent increase in sales and services since the outbreak.

Company president Steve Free estimated that in 2010, they serviced 30 and 35 customers each month for bed bugs, this is up from 15 to 20 customers a month in 2009. To meet the growing demand, they’ve added a new division of their company dedicated to bed bugs. “The surge is nice from a financial aspect but it is sad to see so many people affected by this epidemic,” Free says.

The Eyjafjallajokull Vo lcano Eruptions

For business travelers attempting to return from or fly to Europe in late April through early May – the volcano ash cloud from the Eyiafjallajokull, Iceland volcano kept them grounded. While this caused many passengers to be stranded and irritated, TalkPoint, a small webcasting and internet broadcasting company based in NYC profited. Companies of all sizes turned to their live web casting service to maintain “face-to-face” communications and ensure business continuity. Clients who used webcasting as a result of travel restrictions caused by the volcano include on of the nation’s largest fast food restaurants and a global investment banking and securities firm.

Fluctuation of the Euro

The dollar was stronger this year compared to the fluctuating value of the Euro. Jordan Finger, CEO of Ardis Health, and Internet marketing company that develops health and beauty products stateside and internationally, benefited from the changing economic values. “I was able to do a currency arbitrage by using the stronger currency – the Euro - and convert it back to USD, which added 20 to 30 percent more value to my funds after conversion,” Finger said. “This is a huge benefit to my company since my core staff is based in the United States and get paid in USD.” Even though the Euro was weaker, Finger’s business in Europe did exceptionally well. “European e-commerce is growing by double-digits,” he said. “I’ve seen less competition in my European markets and I am able to buy media at a lower rate and I’ve found the lifetime value of my customers is stronger.”