Businesses need to interact with customers to grow

One historic California hotel is trying to boost revenue and business by taking advantage of Web 2.0.

Owner Andy Layman of the Venice Beach Suites and Hotel believes social media to be a cost- and effort-effective measure to attract new clients and increase sales, but because he was unable to articulate the contradictions of what Venice is all about, he turned to Rosalie Morton, an account executive for marketing agency CRT/tanaka, the Los Angeles Times reports.

Morton suggests that businesses understand social networking sites are about interaction - the more an owner interacts online with potential clients by tweeting or updating Facebook, the more likely a business is to attract consumers and attention - the paper writes.

Businesses should encourage users to create content as well. For example, Layman can ask for customer feedback, photos, videos and suggestions. Customer content can serve as an additional method for bring in business.

In many cities, organizations and companies offer sessions on how to market a small business online. Washington, D.C. offers a one-time seminar called “Small Business CEO Roundtable,” which will bring small business leaders together to discuss cash-flow strategy.