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marketing: Starting Up: Corporate America Offers Its Own 'Stimulus Package'

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Starting Up: Corporate America Offers Its Own 'Stimulus Package'

February 19, 2009
STRUGGLING BUSINESS OWNERS won’t need to wait for President Obama’s economic-stimulus package to kick in before they get a boost.

Many larger businesses are offering help to their smaller brethren through so-called "stimulus promotions" that promise everything from free software to tens of thousands of dollars in venture funding.

Dell (DELL) is offering zero percent financing for 36 months on some purchases, including some laptops and servers. Network Solutions is discounting its web site development-and-hosting service to $14.95 from $19.95 a month, while Apollo Hosting has agreed to waive set-up fees on all new hosting accounts — a cost that typically amounts to about $100 per account. “This is the first time we have ever waived setup fees on all accounts,” says Tamara Field, president of Apollo Hosting, a web site hosting service in Austin, Texas. “We really do want to help.”

Taking it one step further, companies like software maker Intuit (INTU) are even offering cold hard cash. As part of its "stimulus package," the company is hosting a competition that invites small business owners to offer their stories and advice. The grand prize winner will receive $25,000. (In addition to the contest, Intuit is also offering small business owners up to $1,000 in free software and services).

Of course, the companies offering all of these freebies and discounts hope to get something out of the deal. For some companies, it’s the free publicity. For others, it’s the hope of gaining a lasting customer, while for others it's about making a good investment.

Mark Cuban, a serial entrepreneur who sold his video-streaming company Broadcast.com to Yahoo (YHOO) in 1999 for $5.7 billion, and is more recently known for being the owner of the Dallas Mavericks, is doing just that with his stimulus package contest. He's invited entrepreneurs to submit their business plans to his blog. Those with the most interesting plans can potentially receive venture funding from Cuban himself.

“I will fund any and all companies that I think make sense for me to participate with,” he says. While Cuban hasn’t disclosed how much he’s willing to invest, he says he intends to take an ownership stake in the companies he funds.

“They all feed off each other,” says Perry Wong, senior managing economist at the Milken Institute, an independent economic think tank in Santa Monica, Calif. By helping small businesses during this downturn, he says, some companies are ensuring their own survival.

Other recent Starting Up columns:

Stand Out: Site Serves Niche By Helping People Relocate
And the Stimulus Winners Are... Small Businesses

("Starting Up," a weekly column written by Diana Ransom for smSmallBiz.com, follows entrepreneurs through the early stages of launching a business. Write to her at dransom@smartmoney.com.)
Last 2 Comments
Denise Sheehan Johnson Posted: 6:41 PM On March 13, 2009
I have allways wanted my own business, my parents allways talked about going into business, but my dad worked two jobs and my mom a nurse. There dream never came true. I want to make there dream and our family dream come true I will to work as mush and as long as it takes. I will have my business 'futher mores' come true, and I know that mean wroking hard I'm not detered from work and help from people that have been winners and smart business people. I just need the leg up to get this started, by the grace of god I will. sincerely; Denise Sheehan Johnson, West Bend, Wi
nirvana181 Posted: 4:21 AM On February 23, 2009
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