Based on over 6 months of research, we were able to determine almost a dozen trends and market shifts that were negatively affecting small businesses. We took the TOP 5, and compiled them for you here in our latest Executive Briefing. These are the 5 most dangerous trends facing small businesses in 2009, and we hope you'll take the information and use it to prepare your business. Feel free to share with others who are Sales Professionals, Business Owners or Executives of their company - they'll Thank You for it! To Your Success, ~ Stephen

1. The 5 Most DANGEROUS Trends Facing Small Businesses in 2009 A comprehensive research study by Empire Research Team © 2008 GrowthStrategies.us

4. © 2008 GrowthStrategies.us DANGEROUS Trend #1 Fighting the Clutter Factor

5. © 2008 GrowthStrategies.us DANGEROUS Trend #1 - Fighting the Clutter Factor In 1992, the average consumer was presented with 3,000 commercial messages per day. In 2006 – that number has reached 30,000 ! * The number is even HIGHER for business owners . Pacific Bell study Attention has become the scarce resource of the information economy. – Wired Magazine

6. © 2008 GrowthStrategies.us DANGEROUS Trend #1 - Fighting the Clutter Factor The advertising and information clutter only worsens when it comes to your Inbox. According to Ferris Research, in 2008 we'll waste 21 hours per year deleting spam e-mail , compared to 2.2 hours in the year 2000. Even though we’re already overwhelmed, buried in information and deafened by constant voices pleading for our attention – and already unable to discern what’s valuable and what’s waste – more and more information is being presented to you daily. – Rich Schefren

8. © 2008 GrowthStrategies.us DANGEROUS Trend #1 - Fighting the Clutter Factor

10. © 2008 GrowthStrategies.us DANGEROUS Trend #2 Customers Leaving You for Perceived Indifference

11. © 2008 GrowthStrategies.us DANGEROUS Trend #2 Customers Leaving You for Perceived Indifference Why customers leave you… 1% Death 3% Move 5% Buy from a friend 9% Sold by a Competitor 14% Product Price 68% Perceived Indifference The “US News and World Report”

16. © 2008 GrowthStrategies.us DANGEROUS Trend #3 Lagging Behind Web 2.0 Technology on the Internet

18. © 2008 GrowthStrategies.us DANGEROUS Trend #3 Lagging Behind Web 2.0 Technology on the Internet

19. © 2008 GrowthStrategies.us DANGEROUS Trend #3 Lagging Behind Web 2.0 Technology on the Internet Emerging Channels Can Complicate Matters Forrester’s Q4 2006 Marketing Benchmark Survey Over 50% of internet marketers surveyed, are now utilizing or expect to pilot the following marketing channels because of recent market shifts: - RSS - Podcasts - Interactive Banners - Ads Within Online Video - User-Generated Content - Blogs - Social Networks

20. © 2008 GrowthStrategies.us DANGEROUS Trend #3 Lagging Behind Web 2.0 Technology on the Internet Most Small Businesses are racing to play catch-up with companies that are prospering with Web applications that establish interaction, dialogue and deep connections with their Customers, Prospects, Employees and Partners. Adapted from IBM e-magazine article, Feb. 1 st 2007 The Internet has shifted the balance of power to the customer, and companies that fail to empower customers – risk losing them to competitors who are only a short click away. - island data 2008

22. © 2008 GrowthStrategies.us DANGEROUS Trend #4 Increasing Marketing Costs with Decreasing Effectiveness

23. © 2008 GrowthStrategies.us DANGEROUS Trend #4 Increasing Marketing Costs with Decreasing Effectiveness Pacific Bell study It now costs 3 X more in 2008 than it did in 1992 to reach your prospective buyers. In 1992 – it took an average of 4 attempts to reach your buyer. In 2008, it now takes 8.4 attempts . Therefore, ½ the results from the previous same efforts are commonplace.

24. © 2008 GrowthStrategies.us DANGEROUS Trend #4 Increasing Marketing Costs with Decreasing Effectiveness Pacific Bell study As the popularity of Search Engine Marketing has increased, so have the costs of playing the game. Pay-per-click advertisements are being driven up in costs as the demand for online advertising space increases . Organic search engine marketing is a long-term, uncertain and often costly endeavor. – Implied By Design, LLC. The recent postal rate increase is inflicting HIGHER COSTS on small publishers, and no business that uses the mail to reach its customers is escaping unscathed. – LA Bsn Journal 2007

25. © 2008 GrowthStrategies.us DANGEROUS Trend #4 Increasing Marketing Costs with Decreasing Effectiveness Nonprofits were hit with increases in expenses last year that were 2 and 3 TIMES the rate of inflation, driven by a hike in the federal minimum wage and the ever increasing cost to raise a dollar . – Jan 1, 2008 Entrepreneur.com Newspaper advertising rates GREW and average of 18% between 2005 and 2007. - NewspaperMedia.com

26. © 2008 GrowthStrategies.us DANGEROUS Trend #4 Increasing Marketing Costs with Decreasing Effectiveness Adapted from Strike Fish Market Study Brand Loyalty is continually DECREASING… Surveys in 2002: 56% of consumers demonstrated brand loyalty. By 2003: 53% May of 2005: 46% As of 2007: approximately 39% of surveyed consumers felt loyal to their current product or service provider.

28. © 2008 GrowthStrategies.us DANGEROUS Trend #5 Increasing Competition & Increasing Business Failures

29. © 2008 GrowthStrategies.us DANGEROUS Trend #5 Increasing Competition & Increasing Business Failures Did You Know…? That there are over 60,000 new businesses started EVERY YEAR? – SBA Training Network The Hispanic Market: In 2007, there were approximately 2 million Hispanic-owned businesses in the country. By 2010, there will be 3.2 million Hispanic firms. - Sources: Small Business Administration, HispanicTelligence®

30. © 2008 GrowthStrategies.us We are in the midst of the largest entrepreneurial surge this country has ever seen. – FORTUNE: March 2007 Nearly 672,000 new companies with employees were created in 2005. That is the biggest business birthrate in U.S. history! 30,000 more startups than in 2004, and 12% more than at the height of dot-com hysteria in 1996. - Small Business Administration projections DANGEROUS Trend #5 Increasing Competition & Increasing Business Failures

31. © 2008 GrowthStrategies.us 96% of ALL businesses Fail within the first 10 years… 80% of those Fail within the first 2 years . Empire Research Group study DANGEROUS Trend #5 Increasing Competition & Increasing Business Failures

34. © 2008 GrowthStrategies.us ONE LAST IMPORTANT NOTE With all of this in mind, understand that, of your prospects…

36. © 2008 GrowthStrategies.us The information contained in this Executive Briefing is brought to you by: Growth Strategies and Empire Research Team www.GrowthStrategies.us [email_address] 800.261.5034 ● 770.601.0949