Highlights of the October 2006 Issue of FSB: FORTUNE Small Business

The full stories are available at FSB.com.

COVER STORY

Mascot Makeover, by Carlye Adler, page 30

Chances are that unless you're in the advertising world, you've never heard of Character, a six-person company that launched in 2002. Walk down any supermarket aisle, though, and it becomes clear that the firm's work has already seeped into the collective conscious of U.S. consumers. Character, which takes in about $2 million in annual revenue, has a client list that includes Cadbury Schweppes, Kellogg's, and Procter & Gamble. Among its accomplishments: putting Chester the Cheetah, Lucky the Leprechaun, the Pillsbury Doughboy, Punchy from Hawaiian Punch, and the Hamburger Helper Helping Hand on the path to self-improvement. From the start, Character co-founder, David Altschul sought to differentiate it from other advertising and marketing shops, not only through its focus on creating and revitalizing brand characters but also through the process it uses.

PLUS: Would A Mascot Help Your Business?, page 40

Before you say yes, consider a few guidelines from the experts.

1. Understand the brand: What are you really selling?
2. Characters generally work best for consumer products, not services.
3. Don't envision the character as an ambassador; conflict and flaws make characters interesting and engaging.
4. Don't worry about making the character look like your typical customer, rather it should embody the brand.

 

PUBLICITY

PR For the Rest of Us, by Ron Stodghill, page 50

The PRstore is a growing national chain that aims to demystify marketing for small businesses. Founders, Mike and Kathy Butler both spent careers in advertising agencies and in public relations firms before they launched the PRstore in 2001, so they knew how those businesses worked and how they could be streamlined. Instead of the retainers or hourly billings that a typical marketing firm demands, the PRstore offers a menu of basic services to walk-in customers (almost all small business owners) and charges flat rates.

 

OTHER FEATURES

Sharing a Lobster The wacky visionary behind Lobster Gram, and online seafood merchant, finds new customers by splitting up revenue with websites that send traffic his way.

Owner Tested Will the latest Skype accessories help you slash high telecom bills? A tech-savvy consulting-firm owner puts five to the test.

Soda on Credit By upgrading its credit-card reader for vending machines, USA Technologies won a lucrative deal with Coca-Cola.

Product Samples that Save Money (and the Earth) Tri-cycle, based in Chattanooga, sells high-end optical technology that creates paper samples so lifelike that designers have a hard time distinguishing them from the fabric versions. The samples cut down on waste and reduce costs.

Caviar from the Heartland A Missouri fish farmer profits from the ban on beluga.

 

STARTUP

Protect Small Business From Big Health Risks, by Katherine Swartz, page 19

It's a familiar problem for small businesses: If insurers sense the smallest risk that even one employee might run up health-care charges, premiums skyrocket. Policymakers have begun examining a new tactic for coping with that instability. Known as "reinsurance," it provides a safety net for insurers, calling for federal or state governments to bear the brunt of the most expensive health-care costs. Senators Dick Durbin (D-Illinois) and Blanche Lincoln (D-Arkansas) have proposed a reinsurance provision as part of legislation to help small businesses obtain health care.

PLUS: Small companies find innovative ways to cut their electricity bills as energy costs continue to rise. ALSO: An armored-vehicle maker captures new contracts from Uncle Sam and watches sales explode.

 

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