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The Business SCORE By Jim Frichette
The new business person faces many obstacles and uncertainties when trying to start a business. How do I incorporate? How do I get financing? Is my idea patentable? Can I register my tradename and trademark? What is a business plan? What is cash flow? Where can I get help? Many of these question can be perplexing to someone just starting a business and SCORE can provide answers and assistance to these and other problems.
There are useful Small Business Administration and SCORE publications available to aid new businesses and entrepreneurs. Many are available through your local SCORE office as well as on the Internet. Two very useful sites on the Internet are accessible through the following Internet addresses:
U.S. Patent Search Page provides an excellent search engine for existing
patents.
http://patents.uspto.gov/access/search-bool.html
U.S. Trademark Search Page allows you to determine if your trademark
is available.
http://www.uspto.gov/go/tac/doc/gsmanual/search.html
Assistance will be available weekly for persons interested in meeting with a SCORE counselor about business problems, including financing, cash flow, business plan, sales/marketing, personnel or starting a new business. Our Mission is to provide assistance to the Kittitas County area small business community with counseling, workshops and mentoring services for start-ups and existing businesses with particular problems/needs The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment.
SCORE is an Equal Opportunity Program without regard to race, color, religion, sex, marital status, national origin or handicap. Special arrangements for the handicapped will be made, if requested in advance. SCORE is a joint venture with SBA (Small Business Administration)
E-mail ---score@ellensburg.com SCORE Web Page--- http://www.ellensburg.com/~score
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When planning a new business venture, a primary consideration is to organize a "Business Plan" to formulate in your own mind the key issues and direction for your business. Once your focus and objectives are clear it than becomes much easier to convince others of your ideas and your grasp of the business opportunity. This is especially important when making presentations to bankers, venture capital investors, strategic partners or even potential customers.
A good "Business Plan" consists of at least 10 parts including 1/ Business description, 2/ Product or Service, 3/ Competition, 4/ Customers, 5/ Marketing Plan, 6/ Sales, 7/ Pricing, 8/ Operations and Production, 9/ Management and 10/ Financial Information. Understanding these elements and their relationship to a successful start in business is extremely important to you and to almost everyone with whom you inter-react. Further, they provide the rudder to guide the business towards the desired objective, help make decisions along the way to prioritize goals and use the limited resources in the most effective way.
This is frustrating. I want to start a business but I'm afraid to ask dumb questions or, if you are too shy, try e-mail. Send your business questions to — score@ellensburg.com --- and we will answer. This is part of many free services available from your local SCORE chapter serving Kittitas County.
There are useful Small Business Administration and SCORE publications available to aid new businesses and entrepreneurs. Many links are available on the Internet. Two SCORE sites on the Internet are accessible through the following Internet addresses:
Try the Mid-Columbia / Kittitas County SCORE page for useful local business
information:
http://www.ellensburg.com/~score
The National SCORE page is:
http://www.score.org
The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment.
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An important part of a new business startup is an in depth understanding of the market in which you hope to survive and prosper. It is vital that you have a clear conception of the customer, the sales environment and the competitive obstacles to achieving your sales success. An essential part of the "Business Plan" is a will researched and thought out "Marketing Plan" which will help you create the sales revenue necessary for your enterprise to flourish. A strong "Marketing Plan" is also vital when discussing your business enterprise with bankers, joint venture partners, venture capitalists or other investors.
There are ten key questions to consider in preparing a "Marketing Plan":
1. What is the product(s), or service(s), you intend to provide?
2. Who are my current and potential customers? (This will help determine
to whom your advertising should be targeted);
3. What benefits will my product or service offer those customers?
Why will the customer buy your products? (This will help determine the
content of your advertising);
4. What is my market area? City, County, State, Northwest, USA or Global
5. What is the growth history, size of market, projected future growth,
and your share of the market and growth?
6. Who are your competitors? List your competitors names, addresses,
strengths and weaknesses, market share, reputation, quality, promotion
and pricing.
7. What is your market development strategy? How will you promote your
product?( Advertise in various media, trade shows, brochures/catalogs,
direct mail, Internet, or word of mouth)
8. How do you plan to contact your customer? (Retail Sales, Internet
Sales, Wholesalers, Direct Sales, Agents)
9. What is your sales forecast? - Now that you have described your
products, customers, competition and marketing plans in detail, it
is time to attach some numbers to your plan. For the Sales Forecast prepare
a projection for the first year by doing your forecast month by month which
will help you focus on the details of your sales plan. An accurate sales
forecast is the key to determining whether your new venture idea is really
feasible. The forecast should be based on your market research and, when
available, upon industry averages.
10. How will you measure results in the following areas?: a - Quality
of product or services provided, b- Market share obtained, c- Customer
satisfaction, d- Profitability, e- Growth rate
There are two sites that are very useful in developing your "Marketing Plan" and other elements needed for a successful business plan.
A beneficial site for an expanded format for developing a strong "Marketing
Plan" link to
http://ellensburg.com/~score/market2.html
Washington Small Business Development Center, Washington State University
Pullman, WA 99164-4851 (Tel) (509) 335-1576. To help individuals
with knowledge for success in small business.
http://www.sbdc.wsu.edu
The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.
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There are about 23 million small businesses in the United States today. And, approximately 30% of the population is thinking about starting a small business. Are you an aspiring entrepreneur? Is small business ownership your dream? If your answer is yes, be prepared. The most common reason for small business failures is the lack of management skills. The good news is management skills can be obtained through training, work experience and the advice of a business counselor.
As you consider your personal and business goals, ask yourself tough
questions. Are you a self starter? Do you have the stamina to start a new
business? Many entrepreneurs say that there is no 40-hour work week,
much more like 50-70
hours. Do you have capital or access to capital? Can you plan the course
of your business for the first year? Are you ready to be both the company
thinker and doer?
Look at resources to help you prepare for business ownership. Opening
a small business is a big risk, which does offer the potential of a significant
payoff. Profit, personal control, pride of ownership and self reliance
are the potential wins of
entrepreneurship. Small businesses do succeed. In our country small
businesses generate more than half of all sales in America. If you are
a risk taker, small business ownership may be for you.
Plan and prepare to succeed in business. Small business success is not random; it is the result of a concentrated effort. Ask yourself the following questions. If you answer yes, you have the basic qualities of an entrepreneur. If you answer no to any of the questions, evaluate these as areas where you can build my skills?
- Is my product or service different from others on the market?
- Do I have adequate financial resources or access to capital?
- Do I have management experience to help me run a business?
- Am I ready to commit to the demands of owning a business?
- Can I take responsibility and make effective decisions?
- Am I in good health with the stamina for the job ahead?
- Do I have the encouragement and support of my family?
If you need to differentiate your product or service, gain management
experience, or gain access to capital, ask for help. Entrepreneurs are
often individualists who want to do it all on their own. Before you take
the plunge into entrepreneurship, take advantage of every resource that
can help you succeed. The savvy entrepreneur looks for ways to
succeed by tapping into existing resources, so his or her time can
be spent on crucial issues and not be spent working on getting past a steep
learning curve.
The best way to start a business is with forethought. In your mind you have a plan for success. Take the time before you invest in the business start-up to put your ideas in writing. Begin developing a business plan. SCORE is considering a Kittitas County workshop described as "The First Analysis of a New Business Venture," and is designed for people thinking about going into business and want to evaluate the viability of their idea, business skills and temperament. The plan is for a 2.5 to 3 hour course and the cost $20.00. If you would like to attend such a workshop e-mail or call SCORE.
The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.
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Does Owning Your Own Business Sound Like A Dream Come True? By Jim Frichette - SCORE Counselor
If you are thinking that being your own boss, running your own company, and earning your own way are great ideas, then explore the possibilities. More than 23 million Americans own small businesses. About 800,000 new businesses are opened each year. From engineering firms, to bake shops to home offices, small business is rapidly growing. You can become one of 23 million risk takers and success makers.
Small business accounts for 50% of all private sector innovations. Consider
this, if you are creative and have a bright idea-test it. Don't start a
small business without planning and forethought. But move forward. Opportunities
exist for the dedicated, innovative and motivated entrepreneur. Technology
continues to open up new avenues for success. There are fewer than 20 employees
at more than 40,000 high tech firms. High tech is an area of growth for
entrepreneurs. Whether you plan to open a high tech business or simply
utilize high technology in your operations - you are on the right
track.
Entrepreneurs are dreamers who see all the possibilities. Very quickly the successful dreamers translate those bright ideas into plans for profitable realities. Business ideas are exciting and right along with the ideas, bring your practical emphasis on making money. Small business is a livelihood and every. idea should run a litmus test for profitable viability. Can you make money with this business? The answer needs to be yes, before you go any further. If you are considering entrepreneurship, gather information and obtain advice.
Right here in your community you can access a free and confidential
resource--small business counseling. The SCORE Association (Service Corps
of Retired Executives) offers small business counseling and mentoring to
aspiring entrepreneurs and business owners absolutely free-of charge. SCORE
is a nonprofit organization dedicated to the
formation, growth and success of small business.
Meetings are generally held in SCORE offices because of the amount of reference material on file for your use. During your first counseling session, ask about the free small business planning workbook "Small Business Start-Up Information Package. " SCORE offers this workbook as a free resources to any aspiring entrepreneur who commits to three counseling sessions. During these pre-business counseling sessions, the counselor and the aspiring entrepreneur discuss the elements of the business plan and begin putting those ideas in writing. You are the decision maker in your new enterprise. SCORE counselors act as guides, advisors and information resources. You are the captain of your ship. SCORE offers a navigator to help you determine the course you will set as a business owner. - SCORE is comprised of more than 12,000 volunteer business counselors. All small business counseling is provided at no charge. Local SCORE chapters also offer small business workshops and seminars, which do charge modest fees. Since 1964, SCORE has provided counseling to more than 3.5 million Americans.
SCORE is considering a Kittitas County workshop described as "The First Analysis of a New Business Venture," and is designed for people thinking about going into business and want to evaluate the viability of their idea, business skills and temperament. The plan is for a 2.5 to 3 hour course and the cost $20.00. If you would like to attend such a workshop e-mail or call SCORE.
The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.
TOP### Does Franchise Ownership Interest You? by Jim FrichetteFranchising is often described as a business or industry. It is not. Franchising is a method of doing business. You can
become a business owner under a franchise agreement. Franchising has been adopted and used by a wide variety of
industries and businesses as a means of efficient expansion. Under a franchise system, an individually owned business is
operated as though it were part of a large company. The parent company acts as the umbrella organization. This company
authorizes the franchise outlets to use its trademark and benefit from the image of a larger organization.Generally, the franchisor or umbrella organization will dictate standard design for business facilities; specify the use of
certain equipment, products or services; and provide instruction on operating the franchise in accordance with the
standards set forth for all franchisee operations. While most people think of a franchise as being product or service
oriented, such as the case with fast food, restaurant or hotel businesses, franchises may also be found in the wholesale
and manufacturing industries.Franchising offers many advantages to an entrepreneur. As a small business person you can "buy into" a well-established
venture, with a proven formula for success. This offers you significant odds for success, when the franchise formula is
carefully followed. The franchisor should provide solid advice (often mandates), site selection, management, advertising,
accounting and product research and development to aid the overall franchise organization's success. Greater efficiency
and profitability result from uniform coordination.Is the concept of a franchise right for you? To make your business a success, you must be willing to accept the orders,
vision and procedures set forth by the franchisor. Any ideas you have for customizing the proven formula must typically
be approved by the franchisor. In a sense, you forgo some of the independence you may have sought as an entrepreneur.
Of course, the trade off in autonomy for the support system must be weighed against the increased chances for success.As in any small business, long hours and hard work are required. There is usually a long payout period in the business.
With many franchises, it's likely to be three or more years before you can begin to take money, other than your salary,
from the business. However, there is no guarantee that you will earn a profit any sooner than if you started a small
business on your own, rather than going for franchising. Carefully evaluate whether a particular franchise is right for you.
To request a free copy of the pamphlet "A Consumer Guide To Buying A Franchise," call the Federal Trade
Commission; Public Reference Branch at (202) 326-2222, stay on the line for an information specialist-do not enter the
voice mail selection system for this item.The following factors should be considered when evaluating franchise opportunities.
* How much money can you invest? Before you invest in a franchise, make sure you can afford any fees charged by
the franchisor. The initial investment may require anywhere from a few thousand to several hundred thousand
dollars.* Do you have the background necessary to make the business a success? Do you have experience in whatever field
you are going to venture into? The franchisor will want to be assured that its good name and reputation will be placed '
in good hands with you as the franchisee.* What are the terms of the franchise agreement? It is in your best interest to have your lawyer, accountant and a
business counselor examine the franchise agreement carefully. Don't be hasty. Fully evaluate the agreement before
committing to the business endeavor.The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.
###Prepare A Complete Loan Application by Jim Frichette
It seems simple, if you want a bank to loan you money, then you want to present complete information and a strong case for your business as a safe investment for the bank. Small business owners are indeed turned down for much needed loans. Often the bank's decline can be traced back to an incomplete or inaccurate loan application, business plan and/or financial statements.
Loans are often turned down because the loan application or supporting documents are poorly prepared. If you find yourself in a cash crunch, you want to obtain a loan quickly and efficiently. To gain the confidence of the lender, you must demonstrate both your seriousness and preparedness. Loan officers look for red flags in packages. A well prepared package that accurately reflects the business and provides all of the information requested, helps to indicate your seriousness about receiving the loan and being both willing and able to repay the debt.
Make bank contacts long before you need them. If you're starting a business, get to know the loan officers at your bank. They will be more comfortable making a loan to a person they know. Early meetings give you a chance to tell loan officers about your business and its aspirations. You begin laying a foundation for a business relationship. A good, long-term banking relationship brings valuable goodwill, which can improve you ability to do business. Prepare for the loan process early. Start by obtaining a loan application. Know what the bank will expect of you, before you plan to ask for money. Several common elements of a loan application package appear below.
* The Company's Business Plan. This plan is a complete description of the nature and type of your business. The plan includes resources available to you and how you plan to put resources to use, in order to meet your goals. Specific goals, time lines and financial objectives should be included in the plan. In addition, the plan should include
a one-page executive summary that provides a synopsis of the overall plan. Your business plan may average three to thirty pages in length, depending on the complexity of the business. Your plan should include an assessment of your competition and your role and strategy in the marketplace.* The Company's Balance Sheet. The balance sheet is a listing of the assets and liabilities of the firm. This statement gives the bank an idea of the stability of your firm. If the business is a start-up, include a statement of assets and start-up capital that will be brought to the firm. This statement may include your own financial contribution, as well as that of a partner or investor.
* The Company's Cash Flow Statement. This statement will show how much liquid cash is available within the business. It provides a snapshot of how sales and expenses affect your operating cash on a monthly basis. The cash flow statement provides the bank with a picture of how much cash you have on hand and whether you will be able to assume an additional monthly expense in the form of a loan payment. A start-up company will often be asked to prepare a cash flow projection. This start-up projection will take into account the tendency for sales to begin slowly at first and build over time.
* Your Resume. If the loan officer does not feel you have the experience necessary to make a success of your business, you may have to provide a statement of your personal assets and pledge some of those assets as collateral for the loan. A lack of management experience is often cited as the main reason for small business failures. If you can demonstrate management skills that encompass: financial, operational and employee issues in your resume, then you build the bank's confidence in the amount of knowledge and skill you can bring to operating a business effectively. This resume is most often requested of start-up businesses; however, a business owner should be
prepared with his or her resume as well.Whether you are currently in business or planning to start a new company, begin planning now. Even if you don't need a loan today, it is good business to prepare a business plan that outlines the goals and outcomes you expect from the business. The business plan takes your ideas and puts them in writing, so they remain tangible to you and become tangible to potential lenders.
If you would like to discuss loan application preparation or business planning, contact the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.
Business Valuation Critical Before Purchasing A Small Business by Jim Frichette
###Before you buy a small business determine its worth. This is a crucial business activity. If you purchase a business that is
overvalued, you paid more money than the business was worth. If you purchase a business that is undervalued, you may
have saved money up front, but is the business weak? Value is important; you want to look at assets, accounts receivable,
sales and balance sheets. Do not value intangible assets such as goodwill and reputation, while important you do not want
to pay cash for such items. The valuation of the business should also be agreed upon by the seller and potential buyer or
further negotiations are pointless.There are two basic methods of evaluating a business: the appraised value of the assets at the time of negotiation and
future expectations of profits and return on investment. Appraisal of assets is the more common method of setting the
value of a business. The present value of the business is based solely on the value of its current assets. This method is
probably used so often because it is the simpler and more tangible method.Since valuation of assets is more common, here is a bit more information about those assets, which are being valued. As
an asset the value of inventory carried on the books for merchandise is the price paid rather than the current value. This
can lead to assets being dangerously overvalued. Base inventory valuation on current value not purchase price. The total
inventory value could be grossly overstated, if the inventory is loaded with items no longer in demand or items whose
price has dropped. Establish the actual business inventory and it's current real value, not original purchase price.Another area to give special attention is accounts receivable. Examine these accounts carefully to make sure that there
are not many overdue accounts, which may be uncollectible. Ask for a report showing the age of receivables, accounts
which are not due yet, due now at 30 days, overdue by 30, 45, 60, 90 and 120 days. The older the accounts receivable the
less likely the money will ever be collected. If the business has a large number of accounts at 45 days or 60 days, check
the payment history of the clients in question. Do those overdue accounts get paid by clients who routinely pay slowly?
This is crucial information, money you can't collect offers no value to the business.Using future expectations as a valuation tool is risky. This method establishes a value for the business based upon the
future expectations of its profits and return on investment. The buyer looking at the business history and projections for
the future may opt for obtaining financial statements, business trends and forecasting of the businesses future based upon
its past performance. To obtain a clear picture of the business, both the potential buyer and the seller need to consider
factors such as trends in sales and profits, the capitalized value of the business and the expected return on inventory. Such
projections are not easy, but can begin with the preparation of projected profit and loss statements.The buyer should always remember that the seller's own statements are likely to be overly optimistic and even overstated. The buyer must be wary of the business that looks too good to be true. For how long should these statements be projected? One year? Three? The best ways to decide is in terms of the expected return on investment. If it's estimated that the business should return 20 percent on the investment, then the investment capital should be returned in five years. On this basis, the projected statements should cover five years.
The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.
Attitude And Adrenaline Impact Business Growth by Jim Frichette
###Small business is about success. The success of the American dream. The success of the entrepreneur who believes he or
she can make a new business idea a thriving reality. Sure, there is power in positive thinking. Don't discount it. Whether
a solo entrepreneur or a small business owner with a staff of 50, your attitude toward business will affect the success of
your business. The moment you become a business owner, you represent yourself, the business and expectations for
success. Your attitude and manner convey your confidence and commitment to small business. Be sure both embody a
can do outlook.So many entrepreneurs have told me they get a charge from the challenge. They have that adrenaline rush that keeps
them going. The inner desire to succeed combined with the hard work of the real world makes all the difference. As an
entrepreneur, you never underestimate the competition and you never underestimate your ability to rise to the occasion.
Small business is dynamic and your energy level both real and perceived by others, influences how successful you will
be in the marketplace. In the small business world of modest profit margins, fierce competition and time constraints-
don't be guilty of the four cardinal can't do it ways of thinking.* I can't. I have no time - I'm busy handling what I have now.
* I can't. There is just not enough money to do everything.
* I can't. My competitors are making the market too tough.
* I can't. Technology will only complicate my business.Successful entrepreneurs are people of endless possibilities. Not every opportunity is seized. No, an unending supply of
funds are not available. No, competitors don't go away. And no, technology doesn't arrive without a learning curve. Yet,
those people you most admire in business, look not at obstacles but at opportunities. That spirit of can d~what can we
do today, what will we do tomorrow and how we will succeed is the essence of success.Successful business people know where their businesses are going. They have a plan that they are willing to follow to the
letter, in order to achieve their clear goals. Mentally prepare for success. Develop the can do outlook. Be the motivator,
the dreamer and the real world implementer. Commit yourself to the balancing act of the world of possibilities and the
business realities. You set the tone for your business. Customers, colleagues, employees and lenders all look to you to
gauge the value and strength of your business. Your positive attitude and energy signal the vitality of this small business.Every entrepreneur should have a sounding board outside the business-be it a colleague, friend or business counselor.
All three would be just fine. Get different perspectives. Gain energy from other's ideas, as well as your own. Contact the
SCORE Association (Service Corps of Retired Executives) and request free and confidential small business counseling.
SCORE is a nonprofit organization with 12,400 volunteer, business counselors who donate their time and talent to help
entrepreneurs. SCORE counselors help entrepreneurs develop business strategies, prepare business plans and brainstorm
new ideas.The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County with the assistance and cooperative effort of the Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.
Know Your Market ###
Market research is a systematic and objective way of determining who your potential and actual customers are and
gaining information to understand their needs, desires and most importantly- their behavior. Market research often helps define who wants to buy a product or service, who can afford to buy a product or service and who actually spends the money on a product or service.You may find in a survey that nearly everyone may want a trip to Hawaii, for example. But, who can afford the trip? That
question narrows the field considerably. Next, who actually spends money on such trips? Again, the field of potential
buyers vs. real spenders is funneled down to a smaller pool of individuals. You need to know how large your potential
pool of customers will be, their ability to pay for your product or service and the history of spending that indicates the
likeliness that your product or service will sell in the marketplace.Big corporations spend millions of dollars annually to study the marketplace. The small business has an edge. As a small
business owner, you are closer to the customer. The small business is often able to detect buying patterns and customer
desires (as indicated by special requests) more quickly and react almost immediately. Market research informal as with
in-store observances or formal via a survey or focus group can provide valuable information.Market research gathers, focuses and organizes information about your market. It reduces your business risks by making
your business more responsive to the market, so you can keep them coming back to your store. Market research can also
help identify particular sales and profit opportunities, as well as indicating waning interest in a product line. You already
conduct some research as a part of doing business. For example, you use merchandise returns as a guide of products not
to restock. You watch what your competition is doing. And, you gather trade information from your professional or trade
association.There is probably a great deal of published information available on your particular type of business. The Census Bureau
has a wealth of employment, income and demographic data available. You can download pages of information from the
Census Bureau's web site at http://www.census.gov. You can also call the Census Bureau's customer service center at
(301) 457-4100 to find out what publications and reports are available; the bureau may charge a fee for publications.You can also conduct a focus group or survey yourself. If you have a slim marketing budget, this can provide some
valuable information. Remember that although helpful, self organized market research will not be as objective as outside
research. For added confidence in research results, consider hiring a advertising agency or market research company to
create, implement and report specific market research to you.If you would like some free and confidential advice on market research contact SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County with the assistance and through cooperative efforts with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.
Your Time Is Money, Spend It Well
###As a small business owner, you usually have more to do than time permits. Depending on the size of your business, you
may function as personnel director, purchasing agent, sales manager, accountant, advertising director and chief
operations officer. Your time is the most valuable commodity in the business, because you are the visionary that sets the
direction for the company's operation and growth.You always need to be sure that you are using each hour as productively as possible. Hours of valuable time can be
frittered away on insignificant chores. The time you spend on things you enjoy may be the less important or productive
tasks. Find it within yourself to avoid simple, repetitive tasks that may be comforting, but don't utilize your full
expertise. As the owner, your vision, energy and expertise need to be focused on the product or service, market, sales and
profitable results. Those above mentioned goals alone are big time takers. Keep your energy focused on making the
money, which fuels the business and your income.To use your time more efficiently begin to organize your thoughts, plans, files and activities. Start by keeping a daily log
of how you spend your time during a one week period. Note the amount of time you spend on small tasks or
interruptions, which take you away from important work. These distractions may be crises of the moment or an
unproductive phone call. After a week, you should see a pattern of effective activities, ineffective activities, time of day
for the most accomplishments, time of day for the least accomplishments, and the overall time commitment to high
priority vs. low priority items.Once you have identified your time usage, evaluate each type of activity and the time spent on each. You should be able
to define which activities are important to operations and which activities are time stealers. Begin to decide what tasks
can be eliminated or minimized. Second, decide how these tasks can be better managed. Does more effective time
management mean omitting a task, streamlining a process or bringing on short-term help to handle specific duties.After you realign non-productive or less productive tasks, plan to use your new found time. Block the time for analyzing
major operational decisions, future planning, or sales calls, etc. The time you have freed up will become busy again.
Make sure you identify the tasks you want to accomplish in that time period. Your time is money. When you are
planning, marketing, selling or delivering your product or service you are making money. When you are administering
the business, you are simply keeping the engine running. Your business should be driving down the road, full speed
ahead. Your energy is the driving force in the business; focus that energy so your time means more money.If you would like to discuss effective time management for the busy entrepreneur, contact the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.
Include Public Relations In Your Marketing Mix
###Good public relations is essential for any small business. It's an inexpensive way for your business to get noticed, create an
impression and be remembered by consumers. It's one of the best tools for making a positive impression and projecting your image. While large corporations may employ specialists in public relations to enhance their corporate image, small firms take a more do it yourself approach with a few basic guidelines.Determine your desired image. Unless you know what impression you want to create with the public, you cannot design a good public relations program. Is there something unique about your business? Is your product line more complete than that of your competitors? Are your employees better trained or more customer service oriented? Have you been in business longer or had more experience than your competitors ? Are you more dependable than they are? All these questions should be considered when defining your public image.
Define your public. Unless you know who your actual and potential customers are in terms of location demographics, and interests there's no way of planning an effective public relations program. You must know the right media to use and the proper appeals to make in order to convey you message. Select your media. Local newspapers, for example, offer many more opportunities for exposure beyond paid advertisements. Newspapers often look for feature stories about small business, especially those offering a unique or unusual product or service. These articles can sometimes be devoted to a single firm, but more often they report on several businesses built around a common theme. get to know the business editor or small business reporter who covers such stories in your community.
The business section of the newspaper also offers many opportunities for exposure. Report news of personnel changes" such as appointments and promotions. Announce office expansions or news of an additional location. Feel free to send news releases about professional or industry awards you or your firm may earn. Encourage media coverage of special events. Don't expect automatic media coverage of an event simply because you write or telephone a reporter. There must be a community, news or business element to the story that would give it a broad appeal to readers in the local community.
Work closely with your local Chamber of Commerce and any other relevant local business, trade or civic group. Members of these organizations may be your prime market. A "how to" demonstration may be welcomed by one of these groups. If you have particular expertise in an area of business, you may be able to serve as a guest speaker on a business topic for a local professional group's meeting.
Participate in community events. A big part of public relations centers around interacting with the public. Be an active participant in your community. As time permits, make an effort to serve on local community boards. Be an active participant in the community. Part of being well respected centers around being someone who gives back to the local community. In the meantime, keep in mind that the bulk of your time should be dedicated to running a profitable business.
If you would like to discuss public relations, marketing or community relations, contact SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.
Y2K & Small Business
###The clock is ticking and small business owners need to be aware of the mounting Y2K problem. Known by several names—the Y2K Bug, the Millennium Bug and the Y2K problem, it is poised to affect more than 5 million small businesses deemed at risk according to a recent Gallup survey sponsored by Wells Fargo Bank and the National Federation of Independent Businesses. According to the survey, few small businesses have taken care of the problem and 81 percent of the businesses surveyed plan to take no action to correct a Y2K-related problem before January 1, 2000. Find out what you can do to prepare for January 1, 2000.
What is the Y2K Bug?
The problem arises from the fact that millions of electronic devises have been programmed—in order to save memory—only to recognize the last two digits of a year, the "19" has been dropped. Therefore, on January 1, 2000, computers interpreting only the "00" will understand the year as 1900 not 2000—unless the problem is fixed. It is important because data processing systems used in all types of businesses rely heavily on dates and date processing. If the computer code does not recognize that one date is greater than another, it may not be able to process properly and may produce erroneous results. For example, if a loan is entered into a program with a start date of 1998 and a payoff date of 2005 (98 and 05), the program may subtract 98 from 05 resulting in a term of -93 years, rather than 7 years. This problem may put a business at risk because it could effect its cash flow, inventory, taxes, interest calculations, financial forecasting, customer relations, and many other areas.Who is Affected?
Whether you call it the Y2K problem, the Y2K Bug or the Millennium Bug, its affects reach from companies using large mainframe computers to hospital intensive care units. Federal and state government, banking, insurance and manufacturing industries will all be affected by the Y2K program. Small businesses without Y2K compliant computer hardware or software are also at risk. Additionally, small firms with manufacturing, inventory and accounting systems where data dated after January 1, 2000 has already been entered. Equipment with time-dependent embedded computer chips may be vulnerable, as well. This includes cash registers, telephones, elevators, refrigeration systems, gas and water facilities and security systems. Also, a wide range of manufacturing and production equipment. Small business owners should not forget their dependence on suppliers, customers, building managers and financial institutions. Be aware that a business that has addressed its own Y2K problem may still suffer consequences or fail because a key outside firm with its own Y2K problem fails to perform.What Should Your Business Be Doing to Protect Itself?
Self-assessment. Find out whether or not you or your small business has a Y2K problem. No small business should assume that it is exempt from the Millennium Bug without proper testing. There is a Y2K Check List available on the U.S. Small Business Administration's Web site to help you determine the extent of your vulnerability and if you need assistance.Take Action Immediately. Fixing most Y2K problems is not necessarily complicated, but it can be time consuming and labor intensive. Everyone is facing a deadline on this problem that cannot truly be moved—January 1, 2000. Be certain to act quickly if you determine you have a Y2K problem.
Stay Informed. Keep up-to-date on new developments related to the Y2K problem. Make realistic assessments based on what is central to your company's operations. Don't be stampeded into paying for remedies you don't need. Alternately, you may find it more cost-effective to purchase entirely new equipment than to repair what you currently have. Logging on to various Y2K Internet Sites is an excellent way to stay current.
Make Sure Your Vendors are Compliant. It is also important to ensure that your suppliers and those organizations that you rely on for continued business operations have addressed their Y2K issues. For suppliers, banks, credit card verification systems, landlords, service companies and others critical to your business, insist that they provide you with a letter certifying that they are on op of their Y2K program. Be sensitive to press reports of problems with banks, utilities, telephone and communication services; if you are concerned, with change companies or develop work- around strategies.
Tips on Contracting with a Y2K Specialist.
If you believe that you need to contract with a Y2K specialist, start now. These specialists are in short supply and the demand and cost will rise dramatically as we approach January 1, 2000. We are very fortunate to have such capabilities in Kittitas County with InfraData Y2K Specialist. You can contact Ken Boettger of InfraData at e-mail alpine@ellensburg.com or call 933-3063 for advise, consulting or service on your Y2K concerns. SCORE web site has some hints, Y2K Self-Assessment and Checklists for Small Business at: http://www.ellensburg.com/~score/y2k.htmlThe Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962- 7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.
Surf The Net For Small Business Information At Any Time
###As an entrepreneur your time is limited. You are busy planning to open a business or managing the day-to-day operation
of your business. Even so, new regulations, business practices, trade association information, and Small Business
Administration (SBA) guaranteed loan information are all available with the click of a button. Technology provides easy
access to a wealth of information via the Internet.Before you spend countless hours surfing for that useful piece of information, review the list of small business resources
below-all reachable on the Internet. Common small business questions often arise about how to protect products; how
to declare employee wages; how to file tax returns; and where to go for general small business information. Look no
further. The resources listed below can be very helpful and are available 24 hours a day via the Internet.Patent & Trademark - Patents for inventions are vital to your business success. You should consider registering a
company trademark to protect that mark for your company. To find out more visit the U.S. Patent & Trademark
Office at http://www.uspto.gov. Easy-to-access information is available on a topic by topic basis. Forms can be
downloaded directly from the site, if you have Adobe Acrobat software. Access to the U.S. Copyright office is
available via a hotlink.Wage Reporting - If you are an employer, you are required to report employee wages and taxes to the Social
Security Administration. For more information on accurate filing and year-end wage reporting, visit the web site
for the Social Security Administration at http://www.ssa.gov. Or call 1-800-772-1213 for a free copy of "The
Employer's Guide," a pamphlet with information on timely and accurate W-2 Wage reports.Tax Filing - Both personal and corporate taxes are collected by the federal government. Be sure you are in
compliance with tax law. Consult with your accountant as appropriate. For quick, easy access to Tax Forms and
Information, visit the Internal Revenue Service Web Site at http://www.irs.ustreas.gov. Extensive information
and downloadable publications, tax forms and regulations are available.Small Business Information - The SBA provides publications, business tips, SBA-guaranteed loan information and
abundant small business hotlinks on its web site. Information about women's business ownership, minority business
ownership, the Service Corps of Retired Executives and other resources are described on the site. The site is divided
into easy to use sections for starting your business, financing your business, and expanding your business. Visit this
web site at http://www.sba.gov.Small Business Counseling - The SCORE Association (Service Corps of Retired Executives) has a nationwide
network of 12,400 volunteers in 389 chapters throughout the United States. These volunteers donate their time as
business counselors. Small business tips, success stories, access to counseling via email, and hotlinks to local
SCORE chapter web pages are on this site. Visit http://www.smallbusiness.apple.com. This web site, sponsored by
Apple Computer, Inc., provides a wide variety of small business resources and hotlinks to other web sites.The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a
cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.
###Plan For Success, Implement For Results
It seems so simple, decide where you want to go and then follow the map to get there. This simple concept is the
cornerstone of small business success. Small business is a risky opportunity, one which has the potential for great
dividends. Small business ownership is a thinking endeavor that requires you as the entrepreneurs to know not only that
you want to own a business, but what the business will be, how it will operate, and what results you expect short term and
long term.The bottom line about small business ownership is this is your livelihood. For many entrepreneurs business ownership is
a dream. A dream that millions of Americans have made a reality. To take the step from dream to reality, begin with the
basics. A business plan and start-up capital are two basic elements of a small business start-up. The business idea needs
to be stated in clear terms, in writing. This clarifies the purpose of your business for you and for potential investors or
lenders.If you plan to obtain a bank loan or Small Business Administration guaranteed loan to help start your business, you will
need a business plan. The business plan addresses your plan for doing business and exactly how money will be used to
finance the business, operate the business, provide an owner's salary and define the net profit resulting from the business
enterprise. Banks will generally require the business plan and information about start-up capital you - the entrepreneur - are bringing to the business. The more clear and thorough your plan, the better your chances for obtaining credit.About 30 percent of the population is thinking about opening a business. Of those individuals about 4 percent actually go
into business for themselves. If you want to make a commitment to being your own boss, begin by investing your time in
developing a business plan. Through the business plan you are testing your idea, calculating how much you will have to
sell and at what price to break even and to make your enterprise profitable. This is information you want well in hand
before you take the risk and hold that grand opening.A business plan describes the business, its product or service, marketing strategy, operating expenses, expected income
and a projection for future growth. A business plan may average 10 pages. Your idea and summary of the business will
be one page. This one page snapshot is the map that gets you started on your path to success. The details described in the
plan answer the questions about tangibles such as product/service, price and the cost of doing business.The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.
Choosing A Location For Your Store
###The choice of your retail location can mean the life or death of your business. Many different factors need to be
considered before you commit yourself to a location. If you are in a business-to-business market, mail order business or
commercial operation-your location may not seek heavy foot traffic. However, if you are in a retail business, visibility,
easy access and community presence are important. Consider the following questions as you ask yourself what do you
need for a location that will bring more business to your doors?1/ Define the type of retail business you want to operate. What sort of business do you want and what target market do
you intend to appeal to? Unless you have these basic questions answered in your mind, you will not be able to make a
solid decision about the appropriate location for generating revenue for the business.2/ Obtain location demographics. You can visit your local library, chamber of commerce or city hall to gather
information about the neighborhood demographics, such as population level, age and income. You can also obtain
this type of information from the Census Bureau; visit their web site at http://www.census.gov or call the customer
service line at (301) 457-4100 to order reports that interest you-you may be charged a fee for reports.3/ Is your potential location and store compatible with other stores already in the area? Neighborhood business can help
your store or hurt it. You've got to understand what types of businesses generally cluster together and which are
incompatible. Auto dealers tend to cluster and generate traffic for one another. A good restaurant in a small shopping
center may generate more visitors for other stores. However, an upscale boutique may not fare well next to a super
store or discounter.After you evaluate the above questions, you will move on to detail questions that help you move from selecting a
desirable location and building to working out the details that make the decision a reasonable business arrangement. It is
important that the building itself provides the conveniences you need including parking, lighting and delivery access.
You want to have preliminary meetings with the landlord, you may be dealing with a large leasing company or an owner-
leasor. Find out how accessible the landlord or building manager will be for repairs, concerns and routine maintenance.
Landlord and tenant responsibilities should be reflected in the lease.Is the lease right for you? The lease should reflect the length of time you expect to be at a particular location and provide
an escape clause, as well as a clause for continuing the lease. Cover all the bases before you put pen to paper and commit
to a lease. Be sure that your attorney carefully reviews and comments on the lease agreement before you sign this legally
binding document. The lease should spell out who pays for insurance, if you can sub-lease and any site improvements to
be made before you move into the space.There are many factors to be considered when choosing your store's location. To review your options and evaluate the
aspects of your ideal business site vs. the real-world sites available, seek outside advice. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.Delegation Delivers Results
###You are an entrepreneur. You create the company vision, manage operations and handle details. Whether you are a solo
entrepreneur or small business owner with a number of employees, plan to delegate. The solo entrepreneur may not have
the funds to hire a full time staffer. Consider a part-time employee, contract employee or intern to help with specific
tasks. Free your time from mundane activities, so you can concentrate on delivering a quality product or service, as well
as making those all important sales.When you are running a business, you have to depend on other people to handle some of the task you don't have time to
do yourself. Delegation is one of the toughest jobs to learn. Entrepreneurs are take charge individuals. Many an
entrepreneur has said " I can do that better myself." Beware of such words. If all you had to do was that one item,
chances are you could do it better yourself. However, you have a long to do list already; some projects are best delegated
and supervised. It takes discipline to let go of tasks both simple and complex. Consider delegation as part of your overall
plan for the business, even the owner needs a break. You need to plan for contingencies, such as an illness or time to take
a vacation.Select the right people to undertake delegated duties. Evaluate interns, part-time employees and contractors carefully.
Provide time for orientation and training. If you have a staff of employees, begin cross-training so there are back-up
systems for your absence or the absence of a key employees. From your employees, choose competent employees with
an interest in new tasks. Delegation can be an opportunity to learn new skills and/or take on added responsibility. Don't
hand off tasks without discussion and training if needed.Employees should be valued. Delegation should provide an opportunity for you to ease your workload and communicate
to the employee that you are entrusting him or her with the tasks because of your confidence in the employee's abilities.
Clearly define responsibilities and the authority that accompanies the task. Be sure to plan on recognizing and rewarding
employees, who assume additional duties. If employees step up to the plate, you want to be sure and demonstrate
appreciation for the extra effort.The team of people to whom you delegate responsibility must be responsible for their own actions and results, as well as
for those they may supervise. Request periodic written reports and staff meetings to provide a forum for comments on
activities, accomplishments and challenges. Become the communicator and facilitator for the work of company. Bring
the big picture into focus. When it makes sense delegate. Free your time to be the president. Create an environment that
allows for the company and its workload to grow, without overburdening you. As the owner, your vision and
management ability are best served, when details are managed rather than when you complete tasks yourself.If you would like to discuss workload, delegation and effective leadership, contact (SCORE). The Service Corps of Retired Executives is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.
Focus Group Research Provides Marketing Insight
###Market research is about gathering information --- reliable information. As an entrepreneur, you have gathered a great deal
of information in order to establish a business. Market research is just one more way to gather information about the
marketplace and consumers.Most small business owners can easily define their market, based upon the target audience for their products or services.
Basic characteristics such as gender, age, income, etc. define the demographics of your consumers. Since most small
businesses are doing business within a defined geographic area, another avenue of information is available. The U.S.
Census Bureau has a wealth of information about the number of households, family size, income and age of the local
populous. Much of the information can be accessed directly from the bureau's Internet web site at
http://www.census.gov Your local library is also a likely source of such data.Keep tabs on consumer opinions. Find out what your current customers think about your goods and services. A popular
and relatively inexpensive way to gather information about how your customers feel about your business and how deeply
committed they are to your store or brands is through a focus group. A focus group is an informal way of researching
consumer opinions. In this scenario, you organize the questions you want to ask and bring together a group of 8-12
customers, which represent the demographic range of your consumer base.Participants should be selected randomly within the demographic framework, so you don't tend to pick your most loyal
customers. Normally, potential participants are invited to participate in the focus group and are offered an incentive for
donating their time. The incentive might be a store discount coupon or a popular or limited edition item from the store.
Once the date, time, place and participants are ready, bring the group together. Hire a moderator or invite in an industry
colleague to conduct the focus group. Be sure to have a staff member attend meeting to listen to the feedback and take
notes. Don't attend the focus group yourself. As the owner, your presence may inhibit discussion.Once the focus group is concluded, you may ask yourself what have I gained? The report from the focus group should
give you several important pieces of data such as: to what degree are clients satisfied with your products and services:
suggestions customers have made for products they would like to purchase; opinions about competitors and how you fare
in comparison. This is valuable information, information that you receive directly from your own customers. The only
way you can improve and be a more competitive small business is by understanding your customers.Focus group results can help you shape business decisions. Maybe all the participants felt more staff was needed to be
available on the sales floor. Perhaps you learned that consumers liked a particular product line and would buy more items
if you carried more products within that line. This kind of information can help you make more informed decisions as an
entrepreneur. Now a word of caution, the information you just gathered is valuable, but since it is qualitative (not a
numerical, statistically valid survey ) you can not project the group's perceptions as representative of all your customers.
What you can do is evaluate the results and see how the feedback makes sense within your business.If you would like to discuss demographics, market research or focus group research, contact SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.
Advertising Is An Investment In Retail Results by Jim Frichette
###Advertising is one of the most important tools a retailer has. A sound understanding of its use and elements will result in
more effective advertising. For some businesses seasonal ads are the most effective. For others, ongoing print ads for
special sales work best. Still others will utilize radio to capture the attention of the market for that limited time only sale.
And now more than ever, companies are advertising with their own Internet web site or "renting" space on commercial
sites that offer storefronts for their product promotion and ordering.Whatever form advertising takes, the financial commitment to advertise is a very basic business decision. Advertising
expenses should be planned with a return on investment in mind. For every advertising dollar, the business must recoup a
percentage as part of every sale. When you set discounted promotional pricing that must be considered as well. Does a
discounted promotional price and the advertising expense mean a loss on a particular sale item? Is that a calculated loss
to bring business in the door in anticipation of a multi-item sale? Does that technique work?Advertising is a fundamental business question. The answer is yes- if you are a retailer you should advertise. The
question now becomes how to budget and implement an effective advertising program. Plan your expected highs and
lows for foot traffic and sales volume. Develop a one-year advertising plan. In your own mind, you need to know when to
emphasis advertising in your marketing mix. You can't advertise everywhere all the time. Be selective before you ever
spend that first dollar. Think first and spend later.As part of your advertising plan, budget for the creative concept, layout and production of an advertising theme. If at all
possible, hire someone specializing in advertising to develop a campaign for you. This does not have to be expensive.
You can choose between advertising agencies, graphic design firms and freelance marketing pros. This expertise can help
provide you with the savvy copy that attracts customers interest, attention and action. If you can't afford to invest in a
campaign theme. Carefully plan your messages and goals for the ads and get production support from the television
station, radio station, newspaper or magazine running the ads.An advertisement should generate a buying response. The potential consumer should become interested in the product
and understand the benefit of the product or service. How will your product or service make life easier or more
enjoyable? The creative aspect of a clever and intriguing ad should help elicit interest. Invest wisely. A poorly conceived
or executed advertising campaign can harm your business. Advertising is an investment and the time and money invested
should add value to the bottom line. You want foot traffic and you want increase sales volume-advertising can help
make it happen.To review your advertising plans, contact a SCORE business counselor. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.
Business Figures Provide Valuable Information
###Become very familiar with your balance sheet. A balance sheet shows where your business stands at any particular
moment. A profit and loss statement (also called an operating statement) totals the result of operations over a selected
time period. Each statement is merely a collection of figures. However, with proper interpretation and evaluation, this
collection of figures becomes an important indicator of how financially successful the business is at this time. Financial
success is the end result entrepreneurs seek. Understanding the balance sheet and the implication of the financial results it
reveals are valuable tools in making operating decisions that will impact sales, expenses and profit.The single balance sheet is like a snapshot. It measures the condition of the company at a single moment in time. The
balance will show how the capital within your business is distributed. The amount of capital distributed over the various
accounts in the business and the surplus of assets over liabilities shows profitability. If the snapshot shows that liabilities
are greater than assets, you then see a loss position for the company at that time. Even more important are trends over
time. A company may have a month with high expenses that result in a loss. However, the trends may show five months
of profitability. The net effect of the six months may be profitable, even though one month showed a loss. The concern is
if three months show a loss, then the owner must decide how to overcome the negative cash position.Compare balance sheets over a period of time to gain an understanding of your assets and liabilities. Let's say you review
your quarterly balance sheets over several years. By comparing these on an item-by-item basis, you can spot trends. You
are now gaining a real understanding of the overall financial structure of the firm. For example, larger quantities of
merchandise on hand from one period to another may be a reflection of that decision to buy ahead because of continuing
inflation. Receivables may show a continuing upward trend when collection of outstanding accounts is not pushed for
collection within 30 days. Debts may run higher when the firm expands or makes capital improvements. This information
provides management information, to help the owner make decisions about the prudent and fiscally sound operation of
the business.The profit and loss statement is another valuable tool in ascertaining the company's performance for a given period of
time. The statement will show sales volume, cost incurred and the amount or profit or loss. Comparing the profit and loss
statements of success periods monthly or quarterly can be very revealing. Why was there a lower gross profit for each of
several quarters? Did price cuts decrease per sale profitability? Was a higher proportion of sales spent on operating costs
such as personnel, rent or insurance? Are overhead costs increasing routinely?Although, your accountant should be able to give you advice and guidance, you should also have a clear understanding of
how to read, interpret and act on financial information. As the decision maker, you need to know what effect decisions
have exerted on profit in the past and what decisions need to be made to control costs, increase profitability and improve
cash flow. The flow and use of money in your business is critical. Your salary and the continued profitability of the
business depend upon you and your ability to make sound financial decisions.If you would like information on how to read and interpret financial data, contact the SCORE Association. The Service Corps
of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix
Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.Is Venture Capital Good For Your Business? by Jim Frichette
###Venture capital is a possible source of funding for new, relatively unproven enterprises that appear to have promising
futures. However, such money is often hard to come by. Be realistic in your quest for venture capital. Venture capital
firms expect a business to be able to return their investment not only with interest, but with a large profit. Many venture
capital firms are affiliated with banks, insurance companies, other financial institutions and large corporations. Some are
owned by individuals or private groups of investors and a few are publicly held. Once you accept venture capital, you
have relinquished some of your autonomy and accepted the understanding that the venture capital firm will take a large
share of the profits you earn.As the entrepreneur, you should understand the nature of a vendor firm, before pursuing this as a financing source. This
type of investor expects a projected return on investment that is directly related to risk. The greater the risk, the greater
the return expected. Typically, however, an investment firm will not be interested in getting involved with a new firm
until the business has established itself in some way, so the risk factor can be determined.The venture capital firm and its interest usually depends upon the stage of the new firm's development. Once the new
firm has established itself and has a working organizational structure, a viable business plan and start-up arrangement a
venture capital firm may be interested. However, some firms prefer a later stage of new business development, perhaps
when the new company is in its second or third round growth state and needs more capital either to carry out expansion
plans or to tide it over until a merger or public offering carries it to the next stage of corporate growth.A company's business plan serves as the primary analytical tool for the venture capitalist. In analyzing the plan, a venture
capital firm would most likely focus on three features.1- The product or service. Investors seek product or service innovations that give the company a strong competitive
advantage. A new idea, backed by market surveys (measuring the appeal of the product or service and its potential
market) may be tempting to such investors.2- Management capability. No matter how good the product or how innovative the service, the quality and experience
of the management is a key factor in the success of the business. The astute investor is well aware of this and looks
for solid evidence of such skill.3- The industry's growth. Investors also want to be sure that the product or service is in a growth field. A significant or
revolutionary product improvement, by itself, may not have appeal in a declining product or service category.Most venture capitalists purchase common or convertible stock rather than burden the fledgling enterprise with interest
payments on debt or debentures. They may possibly want more than 50 percent ownership. Additionally, while the
venture capitalists may insist on sitting on the Board of Directors or offering management and technical advice, they are
rarely interested in the day-to-day management of the enterprise, unless its survival and their investment is at stake.
Keep in mind that the minimum investment is generally from $50,000-$500,000, but investment ceilings are almost
unlimited.Lead By Example To Grow Your Business
###What makes a business grow? Leadership. The leadership and vision of the entrepreneur light the way for business
success. You and your employees follow the course you have set for the business. Be sure that you lead by example when
it comes to working hard, valuing lifelong learning and appreciating employees contributions. Your personal attitudes and
actions influence those around you.Some people just love their chosen occupation and nothing makes them happier than doing a good job. They enjoy
meeting and helping people. They're enthusiastic. These owners are enthusiastic and positive around everyone,
especially customers and employees. People want to be surrounded by positive people. A leader who may not be
charismatic, but is positive draws a positive response from those he or she interacts. A positive outlook can help
develop a can do attitude among employees and can generate a feeling of goodwill among customers.Many successful business people participate in lifelong learning through personal and professional activities and studies.
Those entrepreneurs who are open to new ideas and new ways of doing things have the best chance for success. The
willingness and ability to respond to change are a competitive advantage in business large or small. For the adept
entrepreneur this speed means quicker adjustments to products and services, so the company is delivering exactly what
the consumers want just in time.Owners have a personal and professional interest vested in the success of their business. Extend that interest to the
employees who help you get the job done. The company's success depends upon its leadership and part of leadership is
valuing employees, so they work not for just a paycheck but for job satisfaction. Offering fair wages, good working
conditions and opportunities for improvement help you attain and retain qualified employees.Successful business owners are optimistic about where their business is going and have a clear picture of the results they
seek. The business leader is able to "paint the picture" for employees, so they can share in the company vision and
become more vested in the company's success. That same business owner projects his or her sense of confidence, which
reassures both employees and customers that this is a stable and successful business.There is power in positive thinking. And, there is power in leading by example and motivating those around you. If you
would like to discuss strategic planning, lifelong learning programs, employee benefits or customer service issues,
contact the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.Review Effort And Reward Performance
###Performance reviews and merit raises are a part of your role as employer. Once you hire employees, it is your
responsibility to train and motivate them. In addition, you should routinely review performance and offer merit increases
as appropriate. As an entrepreneur, the business is your livelihood, as employees, your staff consider their jobs their
livelihood. Reward excellent performance, so you can retain trained and qualified employees. It is generally less costly to
keep a good employee, than to regularly hire, train and hire again if good employees leave because of low compensation.Often a personal regard and camaraderie develops between the small business owner and his or her employees. Such
personal contexts can result in subjective decisions, when it comes to promotions and pay raises. To safeguard your
decisions as relevant to work performance, maintain clear guidelines for employee performance. Measure employees
against standards that have been set and are communicated from employer to employee. Such standards place job
evaluations and merit increases on firm footing in terms of clear expectations for work to be performed and performance
results. A performance review provides a forum for you to review an employee's performance and share your
observations with the employee. The employee should be able to share his or her perspective and feedback as well.Be sure that you have clear job descriptions in place. More often than not performance problems can be traced back to
unclear expectations or expectations that were not understood by the employee. A written job description provides a clear
description of the skills and abilities required to effectively complete the job you need done at your company. The
description should be written for the position and work to be performed, not to accommodate someone who may
currently be filling the position. The more objective the standards, the more effective you can be in matching
performance and skill to the job, rather than focusing on personality and people you may like to a greater or lesser
degree.A merit rating system, with grades or levels for positions within the company, can help you establish a reasonable pay
scale for each job. Merit ratings determine what salary within a salary range an employee should be paid. Your industry's
trade association will often have a listing of average and median salaries for positions within your industry. The
advantage of ranges and average salary information is that you can avoid setting salary ranges too high or too low for a
given position. A part of your merit system, may be specific percentage raises for specific performance levels. An
employee who performs his or her duties at the level of "excellent" would receive a larger increase than someone who
performs "good" or "average." Factors beyond fulfillment of job duties are often considered as part of merit and
performance reviews. Dependability, initiative and teamwork are common areas for employee evaluation.If you would like to discuss employee reviews and merit pay, contact the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.
Staff Selection Is Critical To Success
###A business is only as good as the people who manage it. You and your employees are the source of customer satisfaction.
Products and services are wares you distribute. Customer service throughout the organization is the culture that contributes
to both employee and customer morale. As an employer, you want to hire and retain the employees most qualified for the positions within your company.Important policy standards should be in place before you begin hiring employees. Develop a personnel policy and
manual. This can be a brief document of only a few pages for a business with few employees. The manual should include
your policy for hours, overtime, fringe benefits sick leave, annual leave, training, dress code, personnel reviews,
grievance procedures, termination and retirement policy. This manual provides an overview of the work environment from expected work times to time off and employee reviews. This manual covers operating policies and general benefits. A job applicant should be given a copy before a final offer of employment is granted. In addition, each company employee should have his or her own copy of the manual, which serves as a guide for his or her conduct and benefits.Before you advertise a job with your local newspaper or with a personnel recruitment firm, prepare a job description.
Each position within the company, including your own, should have a job description that outlines responsibilities and
duties. Each description should include reporting relationships, which describe who the employee's supervisor will be.
Add to each job description a list of the position's objectives with specific and measurable goals. The job description
provides you and the employee a clear road map for the expectations of the position from both the standpoint of
workload and expertise required to accomplish the job.Develop an application form. You can buy standard forms or computer software for employment applications or create
your own. Ideally, the form will be simple and should focus on relevant employment history including names of
supervisors and references you can contact. This application should allow some space for the applicant to add a narrative
summary of his or her career accomplishments. This section gives you a chance to see what the applicant viewed as
important successes and milestones in his or her career. Interview qualified candidates. During the interview, you want to
learn as much as possible about the person's job skills, work ethic and personality. Ask specific questions that require
more than a "yes" or "no" answer. The more dialogue, the more you learn about the applicant. More information will
help you make an informed decision.Check references. This can not be stressed enough. Your business is important to you and the right employees make a
positive statement about your business to customers. An applicant who interviews well and has a sterling resume, may be
the ideal fit for the job. Call references to confirm your belief and to ascertain if pervious employers' accounts of the
person's job responsibilities and performance match what you heard in the interview. Also gather opinions about
personality, work style and strengths from references. Both what references say and leave unsaid can give you clues to
the character and skill of potential employees. A good question to ask a previous employer is whether or not they would
re-hire the applicant. Take this information and form your final opinions.Hiring the right people for the right positions can mean the difference between top performance and profitability and
weak performance and operating difficulties. Choose wisely. If you would like assistance in developing an employee
manual, job descriptions or interview questions, contact the SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.Set Up Records For Tax Documentation
###You need not face tax time worrying about your various tax claims and exemptions If you dedicate time and effort to
record keeping, you can avoid last-minute worries about having proper documentation in support of your tax filing. The
key is to create a record keeping system that is consistent, organized and maintains receipts and other documentation.Keep a tax calendar. Your tax calendar should show all deadlines for filing returns and making payments. If you refer to
that calendar weekly, you'll be able to take action promptly in order to avoid financial penalties. You want to pay your
fair share of taxes, without either overpaying or owing additional funds to the Internal Revenue Service.Your checkbook or general ledger should be your major financial documentation. All funds passing through the business
should be documented in your checkbook and logged into the general ledger. This is the master record of the financial
transactions of the company. This record of cash flow may be needed for verifying information to the IRS.Even if you are a solo entrepreneur, you should still set up a separate bank account for all business transactions. This
ensures that all incoming and outgoing funds associated with the business are properly documented. If you do not have a
business name, open the account in your name as a business account. This account is a master record of the financial
history of your business. Don't use it for any personal expenses. Deposit and enter all cash and check receipts into this
. business account. Post all expenditures through the account. You may keep a separate cash box and records for expenses
that you draw from petty cash.You can set up petty cash as a cash box or as a subsidiary of your bank account. With a petty cash account you can obtain
advances for certain expenses. Whatever the amount, the business needs to have petty cash for small day-today expenses,
such as parking or postage stamps. A limited number of people should be authorized to disperse such funds, and signed
receipts should be required for any use of petty cash.You will need additional information from the IRS for tax planning purposes. Information such as depreciation and
allowances for interest should be gathered from the IRS or your tax consultant or accountant. You can access tax forms
and information on the Internet at the IRS Web Site at 6ttp://www.irs.ustreas.gov. The site has a wealth of information
and can provide insights to help make your tax preparations less complicated. Downloadable publications are available
on the web site.If you would like to discuss how taxes affect small business or business record keeping, contact the SCORE Association.
The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.Find A New Product For Your Manufacturing Firm
###All products have a life span. Some mature products can be rejuvenated through an updated promotional campaign or
packaging. In some cases, a small manufacturer can expand sales in new or existing markets with product enhancements.
In other cases, the only way a small manufacturer can maintain market share and expand sales is to introduce a new
product.To find the right product, you need to do some research and answer some basic questions about the suitability of new
products in relation to your current production resources. Set some minimum standards that a new product must meet for
you to even be interested in the venture. And, before you invest too much time and effort into the endeavor find out what
the market trends are for products. Keep in mind that a new product must be in response to consumer demand.You may have a particular product in mind already or you may be searching for a new product that has never been
brought to the marketplace. Begin researching product possibilities. Sources of information that can provide leads are
information on government owned patents, privately owned patents, the U.S. department of Commerce, inventors trade
shows and licensing brokers. Take time to get a perspective on the range of available products. Then begin to narrow
your search to the handful of products that may fit into your marketing and manufacturing mix.Ask yourself the following questions. Can you introduce a new product that would be an add-on to an existing.product
line? Are there market indications that a particular product is in demand within your general product category? Do you
see the potential to use existing resource in the production of the product? Can your current manufacturing operation be
readily modified to bring a new product to the market? Will this new product be targeted to your current customer base or
do you need to target new customers?Pay particular attention to your physical capabilities within the manufacturing context. You will need to modify existing
equipment or purchase new equipment to handle product on the new product. Also consider personnel training and the
complexity or simplicity in the manufacturing of the new product. In addition, you must consider your in-house resources
for the storage and shipping of the new product. Can this product be distributed through existing channels? Ideally, you
want to incur as little expense and make as few changes to overall operations as possible. Part of your goal is to maximize
manufacturing capability and allow the structure of your firm to support the distribution of a new product.
Take these three tangible steps in your quest to launch a new product: decide on a product; gathered information about
market demand; and define manufacturing requirements. Once completed, you can move on to the competition. Who are
your potential competitors? Has a similar product already been introduced? Can you improve on the product to
effectively compete.? Could a larger competitor step in and capture the market? Identify competition obstacles and plan
sales strategies. You and your sales team need to carefully plan the product launch, sales goals and customer service
levels related to the new product.If you would like to discuss new product development, manufacturing reorganization or a new product launch, contact the
SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.Build Consumer Confidence In The Small Service Shop
###Customer confidence is important to every entrepreneur's success; perhaps none more so than a service business. In this
business, the customer rules and his or her satisfaction with service will determine whether you receive repeat business
and a referral or complaints and unfavorable word-of mouth.In today's busy work world, consumers have to fit visits to any service business into a schedule already crammed full of
appointments. Look at the operational structure of your business. Do you offer extended hours to accommodate the work
schedules of your customers? Consider how long your customers have to wait for service. How long does the average
customers have to wait before receiving assistance? Here are three tenets to live by as the owner of a service business:
offer quality work at reasonable prices; make customers feel comfortable and be honest.Provide Quality Work At A Reasonable Price
Quality is your foundation. As a service company provide a quality service. This is your foundation. Without this base,
nothing else is going to make your shop successful at attracting and keeping customers. The typical customer doesn't
know that much about the technical side of your business. The customer will judge you on the results. Regarding price,
many service businesses are competing in markets with numerous other vendors who offer similar services. Evaluate the
market's price range. Don't under or over charge for your services. Keep your prices along the average. Price competition
can be fierce. You need to get clients in the door to provide that quality service that keeps them coming back. Often price
and word-of mouth determine which service shop the customer will choose.Make Customers Feel Comfortable
Be helpful and pleasant. Train your employees to be patient with consumer questions that to your trained technical staff
seem simple. A comfort level and trust is built upon the foundation of the relationship your customers develop with front
line service personnel. Be sure there are systems in place to manage the production side of the business. You want your
front line service employees to have time to dedicate to the customers not production. The bottom line for the customer is
the service provided and customer service factors heavily into the equation. Do you have a policy on how to address
service errors? Do you know how to handle a disgruntled customer or a customer pushing for special discounts? Your
employees need to know how you want them to handle such situations. And, you as the owner need to establish
parameters for dealing with the small percentage of customers who are difficult to serve.Be Honest
In all business dealings, honesty is the best policy. No one likes to hear that a service problem has not been solved or that
the resolution will take longer than expected. If there will be a service delay for any reason tell customers right away.
This is a frequent complaint in a service setting "no one told me the job would not be done." Be proactive, while the
customer wants work completed quickly, he or she will be more willing to accept a delay when told before returning to
the service shop, only to find that the work is not yet completed. You must continually gain consumers' trust. Provide the
consumer with all details for the service and offer a detailed bill to show specific charges.If you would like to discuss customer service policies, employee training or processes for delivering quality service, call
the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for
Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or
email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.Gather Information Before Investing In A Franchise
###Franchising is a very popular method of doing business. Franchisees generated $803.2 billion in the sale of retail goods
and services in 1992. According to an industry newspaper Franchise Times 76 percent of franchisees are satisfied and 73
percent would recommend franchising to others. As a small business venture, franchising offers the entrepreneur an
opportunity to follow a formula for what has demonstrated itself to be a tried and true business.While no business is without risk, franchising provides entrepreneurs with a business option that offers trademark,
guidelines and a business format. There are advantages to the foundation provided in a franchise business. However, the
owner does relinquish some autonomy by agreeing to follow guidelines established in the franchise agreement which is
a legally binding document.The most common type of franchising is business format franchising, which in effect provides a blueprint for the
building, promotion, operation and products and services of the business. The franchise investment may range be tens of
thousands to hundreds of thousands of dollars. An up-front fee and a continuing royalty, based on percent of sales, are
usually required as part of a franchise agreement. Product and tradename franchises are available, such as auto
dealerships.Before you decide to make your mark as an entrepreneur, learn more about franchising. Sources of information on
franchising are abundant. The sources described below can help you make an informed decision about franchising as
your avenue toward entrepreneurship. If you are on the Internet, you can go direct to many information sources and
simply download and print information of interest to you. Take a look at http://www.smallbusiness.apple.com and visit
the SCORE Hot Page where you can find the article "A Look At Franchise Business."The Federal Trade Commission is a source of information, forms and regulations that affect franchising. Call the
Federal Trade Commission, Public Reference Branch (202) 326-2222, stay on the line for an information specialist-do
not enter the information menu system for this item-request a free copy of the pamphlet "A Consumer Guide To Buying
A Franchise." Use the information menu system for consumer credit information, copies of consumer education
brochures and information about franchising. Franchising information available includes: access to federal disclosure
requirements for franchises, a copy of a federal disclosure for a specific franchise, information on complaints on file, as
well as information about filing a complaint. You can also access the commission's web site at http://www.ftc.gov.The International Franchise Association is a trade association for both franchisors and franchisees. They have
franchise resource books that are sold to the public for fees ranging from $15-$95 dollars. The association offers
franchisees' seminars, networking opportunities and "how to" information. You can access franchise information, as well
as information about the association itself at http://www.entremkt.com/ifa or call (202) 628-8000.The American Association of Franchisees & Dealers is another trade organization available to you. Formed in 1992,
the organization has Trademark Chapters, which represent all of the franchised systems in which they have significant
membership. The organization offers members publications, discounts and a professional referral network. You can
access franchise information and association information at http://www.gateads.com/aafd.Once you have gathered information about franchising, you need to evaluate the information and form opinions. For a
free and confidential source for information review, discussion and business counseling, contact the SCORE Association
The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a cooperative
effort with The Phoenix Group - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com
or go to our web site at http://www.ellensburg.com/~score.How To Avoid Trouble When Managing A Family-Owned Business
###There are many benefits to running a family business. You and your family derive pride, fellowship, loyalty, continuity
and shared success through the business. It also means everyone's financial stability and success rest with this primary
source of income. Because of the shared finacial risk, managing a family-owned business presents unique challenges.
When close relatives work together, emotions can often cloud business decisions. Whatever the purpose of the business,
the special relationship between members of a family can get in the way of effective business decisions upon occasion.
To help manage the business, prepare a written plan. A plan can guide operations and create an objective standard for
everyone to measure performance and results.When you invest your own money and operate your own business, you have accepted the independence that comes with
being your own boss. And as the manager, you are rightly concerned with the economic realities of running a business.
However, if other family members have also invested in the business, they may rightly feel that they should have a strong
say in the business' operations. Family considerations and disagreements can get in the way of what should be purely
fact-based decisions. In the real world, emotions come into play. Plan for professional procedures to help navigate
disputes, so the business can operate effectively.Problems associated with managing a family-owned business usually result from the dual relationship between members
of the firm. For example, when the current general manager steps down, choosing among many qualified members of the
family who want the job, may be more difficult than choosing a pool of unrelated candidates. Another problem arises
when there is pressure to hire an unqualified member of the family. It is easier to turn down a colleague, than it is
someone who will be sitting across from you at dinner.One solution may be to hire a general manager or chief operating officer, who is not a member of the family. This works
only if all members of the family agree and discipline themselves to abide by the decisions and recommendations made
by this executive. When decisions are in favor of or in opposition to positions held by various family members, there
must be a clear method to allow this person decision making power. You decide how much latitude your executive has
and clarify when you want the final review in a decision. Give authority with the responsibility.Consider outside advice in developing a management plan to bridge family differences. A volunteer business counselor
can offer insights, procedures and assistance in preparing a conflict resolution plan or a succession plan to bring an
outside executive to the table as a manager and facilitator. The Service Corps of Retired Executives (SCORE) is
providing free business counseling for Kittitas County in a cooperative effort with The Phoenix Group - 1000 Prospect
- Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at
http://www.ellensburg.com/~score.Spend Money On Advertising To Boost Retail Sales This Month
###Advertising is one of the most important tools a retailer has. A sound understanding of its use and elements will result in more effective advertising. For some businesses seasonal ads are the most effective. For others, ongoing print ads for special sales work best. Still others will utilize radio to capture the attention of the market for that limited time only sale. And now more than ever, companies are advertising with their own Internet Web site or "renting" space on commercial sites that offer storefronts for their product promotion and ordering.
Whatever form advertising takes, the financial commitment to advertise is a very basic business decision. Advertising expenses should be planned with a return on investment in mind. For every advertising dollar, the business must recoup a
percentage as part of every sale. When you set discounted promotional pricing that must be considered as well. Does a discounted promotional price and the advertising expense mean a loss on a particular sale item? Is that a calculated loss
to bring business in the door in anticipation of a multi-item sale? Does that technique work?Advertising is a fundamental business question. The answer is yes- if you are a retailer you should advertise. The question now becomes how to budget and implement an effective advertising program. Plan your expected h