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The Importance and Benefits of Small Business Certifications

The Importance and Benefits of Small Business Certifications

There are many important benefits and advantages available to businesses owned by women and/or minorities, but in order to qualify for them a business must become certified as a minority- or woman-owned enterprise. Connections, marketing assistance, and technical training are just some of the benefits that come with certification, says Susan Rittscher, president and CEO of the Center for Women & Enterprise, the New England affiliate of the Women’s Business Enterprise National Council, a leading certifier of women-owned businesses. (Others include the National Women Business Owners Corporation and the National Association of Women Business Owners.)

“First and foremost, if the diverse-owned business is interested in pursuing bids or contracts with a large corporation with a supplier diversity program, a state agency, or a federal agency, they must be certified in order to count toward supplier diversity goals,” Rittscher says. Another benefit of certification is connections to other certified businesses, which can be a powerful network of potential partners, clients, and advisors and mentors. “Certification is a strong marketing and selling tool for business owners when leveraged effectively,” she adds. Certified businesses may also have access to exclusive programs and services such as professional development workshops and networking and matchmaking events.

Tom Greco, vice president of ThomasNet.com, a free platform with a database of more than 610,000 companies, notes that there are many different ownership/diversity certifications that provide a competitive advantage to qualifying companies, and many businesses and government agencies are anxious to do business with them. “Indeed, 72 percent of buyers recently surveyed by CAPS, a research arm of the Institute for Supply Management, said they would be increasing their spending with diverse suppliers. Diverse businesses include Women-Owned Businesses and Minority-Owned Businesses as well as Veteran-Owned Businesses, Small Disadvantaged Businesses, HUBZone Businesses, and Service-Disabled Veteran Businesses,” he says.

While the process for obtaining various kinds of certification varies, Greco suggests that a business seeking any of the certifications mentioned above start by self-registering with the federal government’s System for Awards Management (SAM), since that is a requirement for most types of certification. Next, seek out one of the major certification organizations for your diversity group—such as WBENC for a women-owned business or the National Minority Supplier Development Council for a minority-owned firm. In most cases, minority-owned business certification falls under the purview of the individual states. Check out this useful list of certifying agencies by state to learn more.

It is important to note that in order to qualify for minority- or women-owned certification, the business must not only be owned by minorities or women but also controlled by them, says Dean dt ogilvie [ed. note: lack of capitalization is intentional and should be retained], the dean and a professor of business strategy at the Rochester Institute of Technology’s Saunders College of Business. “They have to be the ones making the decisions about strategy, business, and structure. They can’t just be figureheads to get the certification,” she warns. Owners must provide required documentation to prove ownership and control; they must have contributed capital and/or expertise to the business; they must be U.S. citizens (or, for some programs, resident aliens); and they must be independent in decision-making, Rittscher says.

Lisa Firestone is president and owner of Managed Care Advisors (MCA), a woman-owned employee benefits and disability management consulting and workers’ compensation case management firm based in Bethesda, Maryland, and she believes certifications and the set-asides to which they provide access play an important role in leveling the playing field for companies like hers. MCA is a certified minority business enterprise in Maryland and several other states and a WBENC-certified woman-owned business. In 2012 it also became certified as an Economically Disadvantaged Woman-Owned Small Business. “Honestly, before my business entered into government contracting, certifications and set-asides were unfamiliar concepts, and ones that made me a bit uncomfortable,” she says. “But what I have learned is that there really is no ‘special consideration,’ but just an opportunity to level the playing field and compete effectively. Certifications can get your business noticed, but they are not a direct conduit to a contract. You still have to get out there, compete for that business, and win it.”

May 15, 2014 Today's Business, , , , , , , , , , 0 Read more >

Using Your Benefits of Certification To Advance Your Business

Using Your Benefits of Certification To Advance Your Business

There are many important benefits and advantages available to businesses owned by women and/or minorities, but in order to qualify for them a business must become certified as a minority- or woman-owned enterprise. Connections, marketing assistance, and technical training are just some of the benefits that come with certification, says Susan Rittscher, president and CEO of the Center for Women & Enterprise, the New England affiliate of the Women’s Business Enterprise National Council, a leading certifier of women-owned businesses. (Others include the National Women Business Owners Corporation and the National Association of Women Business Owners.)

“First and foremost, if the diverse-owned business is interested in pursuing bids or contracts with a large corporation with a supplier diversity program, a state agency, or a federal agency, they must be certified in order to count toward supplier diversity goals,” Rittscher says. Another benefit of certification is connections to other certified businesses, which can be a powerful network of potential partners, clients, and advisors and mentors. “Certification is a strong marketing and selling tool for business owners when leveraged effectively,” she adds. Certified businesses may also have access to exclusive programs and services such as professional development workshops and networking and matchmaking events.

Tom Greco, vice president of ThomasNet.com, a free platform with a database of more than 610,000 companies, notes that there are many different ownership/diversity certifications that provide a competitive advantage to qualifying companies, and many businesses and government agencies are anxious to do business with them. “Indeed, 72 percent of buyers recently surveyed by CAPS, a research arm of the Institute for Supply Management, said they would be increasing their spending with diverse suppliers. Diverse businesses include Women-Owned Businesses and Minority-Owned Businesses as well as Veteran-Owned Businesses, Small Disadvantaged Businesses, HUBZone Businesses, and Service-Disabled Veteran Businesses,” he says.

While the process for obtaining various kinds of certification varies, Greco suggests that a business seeking any of the certifications mentioned above start by self-registering with the federal government’s System for Awards Management (SAM), since that is a requirement for most types of certification. Next, seek out one of the major certification organizations for your diversity group—such as WBENC for a women-owned business or the National Minority Supplier Development Council for a minority-owned firm. In most cases, minority-owned business certification falls under the purview of the individual states. Check out this useful list of certifying agencies by state to learn more.

It is important to note that in order to qualify for minority- or women-owned certification, the business must not only be owned by minorities or women but also controlled by them, says Dean dt ogilvie [ed. note: lack of capitalization is intentional and should be retained], the dean and a professor of business strategy at the Rochester Institute of Technology’s Saunders College of Business. “They have to be the ones making the decisions about strategy, business, and structure. They can’t just be figureheads to get the certification,” she warns. Owners must provide required documentation to prove ownership and control; they must have contributed capital and/or expertise to the business; they must be U.S. citizens (or, for some programs, resident aliens); and they must be independent in decision-making, Rittscher says.

Lisa Firestone is president and owner of Managed Care Advisors (MCA), a woman-owned employee benefits and disability management consulting and workers’ compensation case management firm based in Bethesda, Maryland, and she believes certifications and the set-asides to which they provide access play an important role in leveling the playing field for companies like hers. MCA is a certified minority business enterprise in Maryland and several other states and a WBENC-certified woman-owned business. In 2012 it also became certified as an Economically Disadvantaged Woman-Owned Small Business. “Honestly, before my business entered into government contracting, certifications and set-asides were unfamiliar concepts, and ones that made me a bit uncomfortable,” she says. “But what I have learned is that there really is no ‘special consideration,’ but just an opportunity to level the playing field and compete effectively. Certifications can get your business noticed, but they are not a direct conduit to a contract. You still have to get out there, compete for that business, and win it.”

 

April 30, 2014 Today's Business, , , , , , , , , , 0 Read more >

Buying Equipment: Should You Lease or Get A Loan

Buying Equipment: Should You Lease or Get A Loan

One of the most common cash-flow considerations business owners face is making the right choice between leasing or buying equipment. There are plenty of good tools available to help you analyze the decision on a dollars-and-cents basis—such as this Excel template and this online calculator, but often there are non-financial factors that must be considered as well.

 

Making the right buy-vs.-lease decision requires an understanding of some basic characteristics and how they affect cash flow and asset management, says Tim Lemmons, a business consultant and educator at the University of Nebraska-Lincoln. Leasing generally entails a smaller initial outlay of capital than buying does, and lease payments are often lower than traditional installment loan payments, resulting in less liability on the balance sheet. However, when you buy a piece of equipment you gain asset value on the balance sheet, and that value may be used as collateral against other loans. Owned equipment does not require a security deposit as leased equipment often does, so capital that would have been tied up for the duration of the lease is available for other purposes.

 

There are three major kinds of leases: financial, operating, and sale/leaseback.

  • Financial leases
  • Operating leases
  • In a sale/leaseback scenario, often used for buildings and other commercial property, you sell an asset you own to another party and immediately lease it back for a set period of time. The capital that would otherwise have been encumbered by the asset is freed up for use elsewhere in your business.

 

In most head-to-head scenarios, buying equipment usually ends up costing less than leasing it, as long as you can take advantage of associated tax benefits, particularly the Section 179 deduction, which essentially allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. However, two of the most attractive aspects of Section 179 expired at the end of 2013. Unless Congress acts to change the law, the limit on capital purchases eligible for the 179 deduction and the maximum deduction allowed drop from $2 million and $500,000, respectively, in 2013 to $200,000 and $25,000 (plus an adjustment for inflation) in the current tax year. In addition, the 50 percent bonus depreciation allowed for tax year 2013 has also expired.

 

The least-vs.-buy decision is one that can only be made on a case-by-case basis, and making that choice is only the start of the process. If you decide leasing makes the most sense, you need to choose your leasing company carefully. Choosing the right financial partner if you decide buying is the best option is just as important.

April 10, 2014 Today's Business, , , , , 0 Read more >

Think Before You Leap: Seven questions to ask before making a big decision

Think Before You Leap: Seven questions to ask before making a big decision
by Heather Chaet.

When deciding to use a beautiful photo of Mount Fuji or that funny cat picture as your screensaver or to have the Cobb salad or a turkey sandwich for lunch, a simple coin flip will do. But, for big decisions that affect the direction and success of your company, navigating which way to head when you reach that fork in the proverbial road means you need something more than the quarter in your pocket.

LookBeforeLeap_PQ.jpgWhat is your decision-making GPS system? Small business owners are confronted perhaps daily with large dilemmas or issues to resolve—having a method to make a smart choice streamlines and focuses those often daunting determinations you need to make. Here’s a checklist of seven questions to ask before making that big decision.

1. What is best in the long term?

When making a big decision, thinking beyond the “right here, right now” is a vital first step toward avoiding a big stumble. “It’s easy to make decisions based on what’s [simple] at the moment or what makes my ego feel good. But those are rarely the right decisions,” says Ian Ippolito, founder and CEO of vWorker.com, which connects employers and entrepreneurs with virtual workers. Sometimes it helps to add a specific time frame on that question, as Paige Arnof-Fenn, 
founder and CEO
 of Mavens & Moguls, a global marketing strategy consulting firm, suggests. “[One of] the main things I think about is
 will it matter six months down the road,” says Arnof-Fenn. Thinking in terms of a finite time horizon often provides better insight to the right solution.

2. What is the return on investment?

For any small business owner, evaluating how this choice will impact your bottom line is essential. Christy Cook, president and founder of Teach My, the maker of award-winning learning kits for children, agrees. “I am not a ‘numbers’ girl, but over the years, I have trained myself to ask 
the same question every time: What is the return on investment? If small business owners don’t measure
the ROI, decisions will be made that could put the business into serious
 financial jeopardy.” Fred Deblasi, cofounder and CEO of HooplaDoopla.com, the online money saving site, says ROI goes beyond just finances, “I think this is a very common question for business at any stage, as it can cost money and time to not get a return on something—[whether it is] a marketing decision or even hiring a new employee.”

3. Are there any other decisions that need to be made before this one?

All too often when running a small business, many issues must be dealt with at the same time. Prioritizing which one needs your immediate attention is as tough and as important as figuring out the right answers to those decisions. “For the last year, we’ve been implementing a raft of changes, and we
 always need to weigh the pros (and any cons) of the change and see if
 anything else is needed more urgently,” says Sandip Singh, CEO and founder of the fundraising website GoGetFunding.com.

4. What’s the worst thing that can
happen if I make a mistake (and can I live with it)?

Just as fundamental as exploring the benefits to any change, looking at the worst-case scenario can provide a prime perspective. “We use the same advice in running our [own] business as we give to the business
owners we work with,”
offers 
Jim Stewart, founder and CEO of ProfitPATH, a strategy consulting firm, “For them and us the main question is ‘What’s the worst thing that can 
happen if this goes wrong?’”
 Being able to evaluate how your company will handle a situation if projections are incorrect or unexpected additional funds are needed to complete an expansion is crucial.

5. What will happen if I don’t do this?

Stewart often asks this after tackling the doomsday situation. Envisioning the alternative—doing nothing—can lead to a more definite outlook on the issue, perhaps even providing alternative choices not considered before or a totally new path your company could take to achieve a similar result.

http://smallbusinessonlinecommunity.bankofamerica.com/community/running-your-business/generalbusiness/blog/2012/10/04/think-before-you-leap-seven-questions-to-ask-before-making-a-big-decision

January 2, 2014 Today's Business, , , , , , , , 0 Read more >

Small Business Thinking Out of Crisis-Mode

Small Business Thinking Out of Crisis-ModSmall Business Thinking Out of Crisis-Mode

by Erin McDermott.

 

Small Business Thinking Out of Crisis-Mode. Your business has weathered a tough and challenging cycle. Now it’s time to start breaking out of crisis mode. How do you do it?  As with any kind of upheaval, it’s difficult to get past fears born out of a bad experience. A brush with the demise of a business falls into its own traumatic category, with your professional, financial, legal, and personal life seemingly on the line. But how you deal with the aftermath of that tough situation is important, too. Afraid of committing to an expansion or new segment of customers? Lingering resentments over what went wrong and who’s to blame? Unable to lead staffers in a clear direction?

 

Troy Hazard compares it to what he’s learned from racing cars. The serial entrepreneur, business consultant, and author has been taking classes at tracks for years. But one instructor’s advice resonated with both of his passions. The lesson: Don’t obsess over the first turn, or getting into an accident. Think about what you intend to do to attack the curve that’s two turns ahead, because that’s what will help you win the race. Small Business Thinking Out of Crisis-Mode

 

“The biggest challenge most businesses have now is the hit they took back in 2008,” he says. “There’s such a fear about ‘What if it happens again?’ And the answer is: It’s going to happen again. It’s happened every seven to 10 years for the last 70 years. The problem is we’re so reactive to things that are drama today instead of focusing on a strategy for tomorrow.”

 

His advice to clients: Take time every day—“walking the dog, even that 15 minutes in the shower”—to think about where you want to be in five years or 10 years, and what changes you might make now to reach that goal. Small Business Thinking Out of Crisis-Mode

 

Jeffrey Kadlic works with companies in the wake of a crisis. His small business private equity fund, Evolution Capital Partners, based in Cleveland, uses a system of five “pillars” to take a company out of what he calls “no man’s land.” Small Business Thinking Out of Crisis-Mode

 

Kadlic’s five steps to getting back to business:

1. Get timely and accurate financials

“You can’t have any sense of what you’re doing or where you’re going until you measure where you’re at and what your performance has been,” Kadlic says. Some important questions: Where do you stand compared to your peer group? How profitable are you really?

 

2. Create a plan

Most companies start with a short-term plan, going out at least a few pay periods to evaluate their cash cycles. Kadlic suggests a 100-day plan, which should be enough time to see tangible results from the changes you’re implementing.

 

3. Put the right people in the right seats

Kadlic equates it to football: How can you create a roster if you don’t yet have a playbook? Once you know the market you’re about to attack, then it’s time to put the right specialists in your lineup to get it done.

 

4. Be transparent

This part can be difficult for a small business owner who’s used to making most of the decisions. But to have your key staff understand where they fit in this new plan is essential, Kadlic explains. “Show them the big picture and how they’re contributing to the results as a whole,” he says. He recommends monthly meetings to show where everyone stands in proximity to their goal. “It gives people a sense of ownership in what’s going on,” he adds.

 

5. Be accountable

Give employees a realistic goal against which they can be measured, he says. It sets expectations for old and new staffers. Plus, if someone isn’t working out as you’re trying to get back on track, those benchmarks make a dismissal less of a surprise to the employee and an easier way to define what a successor will need to do, Kadlic says.

At all of the businesses he’s bought over the years—most of which he’s entered during crisis mode, “because that’s where the opportunity is”—Hazard says he’s implemented not only a routine of not-to-miss Monday morning meetings, but also a “daily huddle” that keeps the focus on what’s down the road. In that 10-minute meet-up, teams from finance to operations come together to answer the question: What are the things you see that are strategic roadblocks for you right now? “It brings up the things that are going to affect the business long-term,” he says, “but it also gives everyone a chance to help overcome these obstacles and collaborate on a solution.” Small Business Thinking Out of Crisis-Mode

 

Hazard likens it to what he’s learned on the racetrack. “It takes the day-to-day issues and turns them into longer-term strategies,” he says. “That’s what changes the culture.” Small Business Thinking Out of Crisis-Mode

November 19, 2013 Today's Business, , , , , , , 0 Read more >

Turning Down a Customer: When Is It Smart!

Turning Down a Customer When Is It Smart!Turning Down a Customer: When Is It Smart!

by Erin McDermott.

 

Yoga is supposed to be an escape to mindfulness and physical rejuvenation.

 

But running a yoga studio is like any business, and Patrice Simon has had to refuse some customers. Once, she even had to summon police to her busy Costa Mesa, California, spot, Bikram Yoga Studio, when a student became alarmingly verbally abusive.

 

“It’s been a lesson in psychology for me. There are individuals who intentionally raise their voice at the desk or become insulting—and they do it so an audience can hear them,” explains Simon “I don’t let it get that far. I say, ‘You need to leave, and now.’ I get a vibe from dealing with people at this point. This individual went far over the line.” Turning Down a Customer: When Is It Smart!

 

It may seem counter-intuitive, but sometimes it’s best to turn down a customer. Many business owners say it’s rarely as straightforward as encountering an unruly person at the other side of the counter. It could be that the limits of your own enterprise are overstretched, or their deadline is impossible to meet. Mostly, it’s just one of those things that only your gut can tell you. Turning Down a Customer: When Is It Smart!

 

Everyone’s in business to make money, but when are those dollars just not worth it? Here are four situations that small business owners say they’ve encountered on the road to saying “no thanks” to new customers. Turning Down a Customer: When Is It Smart!

 

1)  It’s never going to be profitable

 

Some projects require an investment to keep relationships with big potential growing. And there are times when you have to hold your nose and say yes in order to keep your doors open. But those numbers need to add up somewhere on the horizon.

 

Michael Bremmer is founder and CEO of TelecomQuotes.com, a Marino Valley, California telecommunications-solutions provider for small and midsize businesses. He says 20 years of trial and error have led him to ask three questions of himself for any new customer: 1) What’s his gut feeling about the individual or business? (“Every time I’ve ignored my gut, I’ve paid the price,” he says.) 2) How reasonable are their requests? and 3) Is the amount of profit worth the time and effort?  “Even if you’re struggling to start your business, you have to choose so wisely because your time is your most valuable asset,” Bremmer says. Turning Down a Customer: When Is It Smart!

 

For example, Bremmer has had to send some customers to competitors or outright “fire” others. He says he recently had to cut off a longtime family friend who became unreasonable about pricing. He struggled with the decision because he could see how stress had made her irrational, but “the client who keeps you awake at 3 a.m.—that’s the one you’ve got to fire.” Turning Down a Customer: When Is It Smart!

 

2)  Haggling over price

 

John Olson calls them “the price hunters” and he’s learned to turn them away over his 20 years in business. They’re the people who call or email GrayStone Industries, his pond and fountain-supply company in Cleveland, Georgia,, with eyes only on the price tag. He says his staff gets calls from people who say they’ve contacted them and their competitors, and will buy from whoever has the lowest price.

 

In those cases, Olson says “we will not even provide a quote, which would force some other poor seller into beating it by sacrificing their own profit. That’s not the way we want to do business.”  His products and these projects, he says, require a “modicum of intelligence” from customers, and his staff is constantly trained to assist anyone with questions before or after a sale. So forget about a retail race to the bottom, he explains. “Anyone who cares more about the price than the company selling these type of products is setting themselves up for failure—it will come back to haunt any company who caters to this type of customer.”

 

3) Negative or abusive comments

 

The customer is always right? Let’s hope not, judging by the unprecedented abuse that business owners say they’re experiencing via the Internet. Melinda West, founder and CEO of SwagsGalore.com, a curtain and window-treatment ecommerce site based in Lakeville, Pennsylvania., says she has a greatest-hits collection of the crude, angry, or wacky messages she’s seen from the site’s order-comments box since she opened in 1999.

 

“People seem to have no problem leaving messages, but in person they likely wouldn’t be that crass,” West says. “The comments are so rude or bizarre that you don’t know whether to take them seriously.” So she’s had to block some users’ IP numbers from the site, canceled orders with a brief note, or told the pushiest ones that their goods were out of stock—just to make them go away. Though West says the overwhelming majority of the company’s orders are pleasant or at least uneventful, cutting off negative new customers no longer keeps her up at night. “Sometimes people are nasty and they don’t even order anything—how can they be so irate over curtains?” Turning Down a Customer: When Is It Smart!

 

4) A bad fit

 

Maybe the work is too outside your specialty, the budget is a tough stretch, or ethical or personal lines are crossed. Don’t ignore the red flags. Frank Ebysen, a founder of Santa Monica, California-based OnClick Marketing, an SEO and social media services company, says he’s adopted a “serious person” test, a concept his business partner learned from co-workers at a company overseas. For example, there are clients who have good ideas, but the lack of a sound game plan makes them problematic, he says. Now when they discuss whether to take on a client or turn them away, it comes down to whether the person is genuine and worth their expertise, or if they come off as “not a serious person.”

 

Or you could turn the tables. One PR agency executive says her small agency has started asking potential clients for a list of their references before they agree to do business. “They’ll get the feeling that you are selective and not just looking to make a buck. You’ll appear to be the leader in the situation—but mostly it helps to ward off the ones who will be a headache,” she says.

Perhaps turning away someone’s business could possibly help make that customer look within, to see that they were —gasp!—wrong. Simon says that yoga client who sparked the police call came back to her studio a year later, seeking forgiveness and promising to behave. He’s been a regular on the mats there for years now.

 

She says it’s added to the meaning of her business. “You never know what’s going on in someone’s life. There are students I see that are in such despair and in a heightened state of anxiety. They are coming to me to take care of that,” Simon says. “When you can understand that, then you’re doing your job.”

November 17, 2013 Today's Business, , , , , , , , , 0 Read more >

Breaking Out of Crisis-Mode Thinking

Breaking Out of Crisis-Mode Thinking

Breaking Out of Crisis-Mode Thinkingby Erin McDermott.

Breaking Out of Crisis-Mode Thinking. Your business has weathered a tough and challenging cycle. Now it’s time to start breaking out of crisis mode. How do you do it?

As with any kind of upheaval, it’s difficult to get past fears born out of a bad experience. A brush with the demise of a business falls into its own traumatic category, with your professional, financial, legal, and personal life seemingly on the line. But how you deal with the aftermath of that tough situation is important, too. Afraid of committing to an expansion or new segment of customers? Lingering resentments over what went wrong and who’s to blame? Unable to lead staffers in a clear direction? Breaking Out of Crisis-Mode Thinking

Troy Hazard compares it to what he’s learned from racing cars. The serial entrepreneur, business consultant, and author has been taking classes at tracks for years. But one instructor’s advice resonated with both of his passions. The lesson: Don’t obsess over the first turn, or getting into an accident. Think about what you intend to do to attack the curve that’s two turns ahead, because that’s what will help you win the race. Breaking Out of Crisis-Mode Thinking

“The biggest challenge most businesses have now is the hit they took back in 2008,” he says. “There’s such a fear about ‘What if it happens again?’ And the answer is: It’s going to happen again. It’s happened every seven to 10 years for the last 70 years. The problem is we’re so reactive to things that are drama today instead of focusing on a strategy for tomorrow.” Breaking Out of Crisis-Mode Thinking

His advice to clients: Take time every day—“walking the dog, even that 15 minutes in the shower”—to think about where you want to be in five years or 10 years, and what changes you might make now to reach that goal.

Jeffrey Kadlic works with companies in the wake of a crisis. His small business private equity fund, Evolution Capital Partners, based in Cleveland, uses a system of five “pillars” to take a company out of what he calls “no man’s land.” Breaking Out of Crisis-Mode Thinking

Kadlic’s five steps to getting back to business:

CrisisMode_PQ.jpg1. Get timely and accurate financials
“You can’t have any sense of what you’re doing or where you’re going until you measure where you’re at and what your performance has been,” Kadlic says. Some important questions: Where do you stand compared to your peer group? How profitable are you really?

2. Create a plan
Most companies start with a short-term plan, going out at least a few pay periods to evaluate their cash cycles. Kadlic suggests a 100-day plan, which should be enough time to see tangible results from the changes you’re implementing.

3. Put the right people in the right seats
Kadlic equates it to football: How can you create a roster if you don’t yet have a playbook? Once you know the market you’re about to attack, then it’s time to put the right specialists in your lineup to get it done. Breaking Out of Crisis-Mode Thinking

4. Be transparent
This part can be difficult for a small business owner who’s used to making most of the decisions. But to have your key staff understand where they fit in this new plan is essential, Kadlic explains. “Show them the big picture and how they’re contributing to the results as a whole,” he says. He recommends monthly meetings to show where everyone stands in proximity to their goal. “It gives people a sense of ownership in what’s going on,” he adds.

5. Be accountable
Give employees a realistic goal against which they can be measured, he says. It sets expectations for old and new staffers. Plus, if someone isn’t working out as you’re trying to get back on track, those benchmarks make a dismissal less of a surprise to the employee and an easier way to define what a successor will need to do, Kadlic says.

SBC newsletter logo.gifAt all of the businesses he’s bought over the years—most of which he’s entered during crisis mode, “because that’s where the opportunity is”—Hazard says he’s implemented not only a routine of not-to-miss Monday morning meetings, but also a “daily huddle” that keeps the focus on what’s down the road. In that 10-minute meet-up, teams from finance to operations come together to answer the question: What are the things you see that are strategic roadblocks for you right now? “It brings up the things that are going to affect the business long-term,” he says, “but it also gives everyone a chance to help overcome these obstacles and collaborate on a solution.” Breaking Out of Crisis-Mode Thinking

Hazard likens it to what he’s learned on the racetrack. “It takes the day-to-day issues and turns them into longer-term strategies,” he says. “That’s what changes the culture.” Breaking Out of Crisis-Mode Thinking

November 4, 2013 Today's Business, , , , , , , 0 Read more >

Creating a Living Business Plan

Creating a Living Business Plan

To strengthen your focus and prospects for growth, commit your strategy to paper—and let it live off the page.Creating a Living Business Plan

1. Introduction: Plan Because You Need To

Staff members at the Shenandoah Valley Small Business Development Center (SBDC) receive frequent calls for help in creating a business plan. The trouble is, the entrepreneurs who seek this assistance often aren’t launching new companies. They’ve been running existing companies without a business plan and sit down to write one only when forced to by banks or other lenders who need that document to process a financing application.

That approach deprives the company of a resource that can play an important role in driving and guiding growth. “The plan is really a management tool for the business owner,” says Joyce Krech, the SBDC’s director. “It’s a great piece of the lending package, as well, but we would prefer that they be doing it for their own purposes and not because they’re being asked to do it.”Creating a Living Business Plan

2. Stay On Course and On Target

Capturing your business planning process in writing gives you a solid analysis of the company’s mission, income, financial obligations, and paths to growth. Companies that operate without a written plan run the risk of getting distracted and thrown off course by opportunities that may seem interesting but aren’t really germane to their core business and function.

“They lose their focus, which just deters them from growth,” says Gwen Moran, founder of Biziversity, an online information resource for small businesses, and co-author of The Complete Idiot’s Guide to Business Plans (second edition, Alpha). “A business plan acts as your touchstone to keep you on track, to make sure that your business is performing in the way that you expected it to perform. Without a business plan, it’s very difficult to gauge those metrics and to know exactly what your business needs are at any given time.” Creating a Living Business Plan

Once the plan is written, how do you keep it in play and optimize its value to your business? Experts recommend that you revisit your plan each time you review the company’s performance—whether that means at annual or quarterly meetings or in regularly scheduled conferences with your financial advisor. That helps business owners to hold themselves accountable to their plans and look objectively at whether the company is on course in terms of liquidity, credit, human resources, pay scales, production capabilities, distribution and logistics systems, risk management, and marketing.

“A good accountant will be able to help you fine-tune your plan and see opportunities and pitfalls that you might not even see because you’re so in the day-to-day of your business,” Moran says. Other options include SBDCs, the Service Corps of Retired Executives (SCORE), or non-competing business owners who are interested in providing mutual support. “You’ll get insights from different industries and new ways of thinking about doing things.” Whichever option you choose, make sure you select advisors who are willing to stand up to you and make sure you engage in all the critical thinking necessary to maximize the company’s potential for success. Creating a Living Business Plan

3. Know How to Answer, “What If?”

These reviews will help you to assess not only how well your company is performing, but how thorough the plan is in anticipating what could go wrong and how you’ll handle those scenarios. “It could be a resource issue. It could be a competitive issue. The law could change,” says management consultant and business planning specialist Jenifer Grant. “There should always be a risk section in the business plan. And then you can assess, what happens if a key person goes away? What happens if the costs of our main ingredients go up? What if I need to hire people, and I can’t find them? You need to assess all the different risks that could have an impact on your business.”

And those if-then analyses aren’t limited to worst-case scenarios. You should also consider what you’ll do if, for example, your product takes off so much faster than anticipated that you suddenly need to ramp up production and contend with cash flow issues and staffing shortages. “Fast growth can be as much of a stressor as slow growth, or even more so,” Moran says. “You have demands placed on your business, and if you can’t meet the demands of your customers, you’re ultimately going to disappoint them, and they’re going to turn elsewhere.” Creating a Living Business Plan

Comparing what’s written in the plan with what’s happening day to day can even produce insights about entry into new markets or expansion of your customer base. “Then you start thinking, as one of my clients did, ‘I never thought about this particular type of customer for my product before, because I had one vision in mind, one road on my roadmap. I didn’t see this other parallel customer base that I can tap into at very little cost,’” Krech says. In that scenario, too, a business plan is an invaluable resource in helping the company to modify its course and take advantage of those additional opportunities. Creating a Living Business Plan

4. Bring the Whole Team on Board

But the business plan is not just a resource for entrepreneurs and executives. It’s a big challenge, but to get the biggest return on your investment in the plan, you’ve got to look for ways to make it live throughout the organization and ensure that it is supported by every employee. “On a day- to-day basis, you come in, you do your job, whatever it is,” Grant says. “It has to resonate with what you do—you, the individual employee.”

As a business owner, part of your job is to communicate the plan’s importance through your actions and behavior. “As you begin to fulfill your plan, it’s your job to talk to your employees, to talk to your team members, to get them as excited about your business as you are,” Moran says. She advises business owners to make sure their employees understand the solution that the company offers in its market and also the strategy you’re pursuing to achieve your market share. In addition, all employees should know their roles in the business and how they are important to the overall corporate vision. “That’s how you get buy-in. You need to be excited about your plan. If you’re not, then you need to go back to the drawing board until you find what makes you excited about your business, something that you can communicate to the people in your organization to get them excited about the difference that they’ll make in this process.” Creating a Living Business Plan

Moran offers the example of the CEO of a mid-sized manufacturing company who each month invites a small group of employees to his office for coffee, donuts, and conversation about the business. Giving employees that kind of access to a business owner who knows their names and asks after their families is a morale booster. It also gives staff members a chance to see how committed the boss is to the company. “When you see someone who’s truly excited or truly passionate about something, it’s hard not to care about that,” she says. “You get that great one-on-one face time. You get that opportunity to convey excitement, to convey enthusiasm, to let people know that they’re part of a winning team. And everybody wants to be part of a winning team.”

5. A Plan for Top Performance

Once you’ve integrated the plan into your company’s day-to-day operations, how often do you need to revisit and re-evaluate it? That depends on your business and its rate of growth. During periods of rapid growth or cash flow crisis, some entrepreneurs and venture capitalists find it necessary to review the business plan weekly to make sure the numbers are on track. And any time you pass a major milestone or hit a certain revenue target, it’s good practice to re-evaluate the plan and make sure that it’s still serving you well. At a minimum, experts say, you must review the plan annually, and a quarterly review is preferable. Creating a Living Business Plan

“When you keep a microscope on those numbers, they’re going to tell the story of your business. And too many business owners don’t,” Moran says. “They let a few financial statement periods go by before they actually look at the numbers. Then they realize that their expenses are far too high and their incoming revenue is far too low, and they start getting into trouble. But when you start following the numbers monthly and then doing a very serious dive into what’s happening in your business according to the metrics on a quarterly basis, that’s when your business plan starts to become a living, breathing document.” Creating a Living Business Plan

Ultimately, that shouldn’t come at the expense of a huge investment of your time. You can achieve these goals without creating a massive document; a few pages can suffice. The objective is to be equipped to compare current operations and numbers with a written projection or benchmark that points out any divide—positive or negative—between the company’s projected and actual performance. And over the long run, a resource that accomplishes that should save you time, keep your company on track, and help ensure that the business delivers on its potential for sustained profitability and growth. Creating a Living Business Plan

August 20, 2013 Today's Business, , , , , , , 0 Read more >

Facebook’s New Look: What the changes mean for your small business

FacebookFacebook’s New Look: What the changes mean for your small business

by Jennifer Shaheen.

 

Have you noticed lately that Facebook looks different? If your News Feed hasn’t changed yet, don’t worry, it soon will. Since early March, Facebook has slowly been rolling out its new News Feed design, giving users the first meaningful remodel of the site since 2006. What does this mean for you, the small business owner? Facebook’s New Look: What the changes mean for your small business

Facebook’s New Look: What the changes mean for your small business

 

Image is everything

The first thing you’ll notice about the new Facebook News Feed is how much larger and more prominent the pictures are. People can continue to upload photos directly to Facebook, or share their images from other social media sites, such as Instagram or Pinterest. Photos are so central to the new design that Facebook allows users to choose a “Photos Only” view (more about that later). Facebook’s New Look: What the changes mean for your small business

For the small business owner, the new Facebook News Feed means it’s time to embrace visual marketing. “Selecting the right images is key—images get behind our conscious thinking and connect with our emotions,” says Joe Decker, of Rock Slide Photography. “Images of owners or employees at a small business help create a sense of connection with that business, and make it easier for customers to make the first call.” Facebook’s New Look: What the changes mean for your small business

Share your own original images on your business’s Facebook page, but don’t stop there. Your visual marketing strategy can include using photos from your manufacturers or suppliers, buying stock images, sharing existing memes, infographics, and more.

Exercise your emotional intelligence when choosing images for your Facebook page. “Having people smiling, interacting, making eye contact, either with each other or with the viewer help give a sense of happiness for the perfection they seek in their lives,” says Dov Friedmann, of Photography by Dov, who specializes in corporate events photography. “You want to have an eye-catching image or photograph that attracts the viewer and also captures the essence or tells the story of what your company is about.”

How your customers will find you now

Central to Facebook’s new design is an easy to use navigation system that allows users to pick and choose what content they view. Content is sorted into Feeds, only one of which will be displayed at any given time. Switching from Feed to Feed is simple and easy, just like changing the TV channel.

There are six standard Feeds: All Friends, Close Friends, Music, Photos, Following, and Games. Your business page posts will appear on the Following Feed, and the images you post will appear on the Photos Feed as well.

Facebook has always had limited navigation. The redesign makes the navigation more prominent and easier to use. There will be an adjustment period as Facebook users become acclimated to the new system, but in the long term, the revamp may serve small business owners well. The organization of business pages into a centralized stream filters out distractions that compete for your customer’s attention.

Make the most of metrics

Facebook Insights tell page administrators how many people saw a post, how many people liked it, and how many people shared the post with their friends. Use this information to gauge how relevant and meaningful your customers find the images and updates you post.

“Our goal is to engage our fans and sometimes that might be a serious photo of a re-breather diver and other times it could be a scuba diver riding a bike underwater,” says Darren Pace, Director of Marketing for SDI, TDI and ERDI, a dive training organization. “Regardless of what type of images are assumed to work best, always check your insights to make sure your fans feel the same way.”

Move toward mobile

One of the most important changes in Facebook’s new design is one that many small business owners might not even notice. The new site design is responsive, which means Facebook’s appearance and layout will always be consistent, no matter what type of device users choose to use to view the site. Facebook’s New Look: What the changes mean for your small business

 Why did Facebook do this?

Take a look around as you go through the course of your day. How many people do you see that are ‘unplugged’—not actively engaging with any type of mobile device at all? Chances are the number won’t be too high. The reason it looks like everyone is using a smartphone or tablet computer is pretty simple: almost everyone is. Cisco’s Visual Networking Index has projected that there will be more Internet-connected devices than there are people by the end of this year.

A recent Google study found 90 percent of Americans move sequentially across multiple screens in one day to access information and entertainment. Facebook’s adoption of responsive design provides their customers with a satisfying experience no matter where they are. Facebook’s New Look: What the changes mean for your small business

Impact of responsive design

What happens if a customer who is using Facebook on their smartphone or tablet decides to follow one of your links and goes to your website? This is where website design becomes really important. If your business website is responsive, it will adapt automatically to look good on your customer’s viewing device, and they’ll have an optimized experience.

If your business website is not responsive, it may not look good or function well on your customer’s viewing device. The website that looks great on a desktop computer may not render properly on a smartphone. Customers are impatient. They’re not going to try to figure out how your website is supposed to look. They’ll just see that things are out of alignment or too hard to read and move on—and there goes your potential sale. Facebook’s New Look: What the changes mean for your small business

May 30, 2013 Today's Business, , , , , , , , , 0 Read more >

New Year’s Resolutions for Entrepreneurs

New Year’s Resolutions for Entrepreneurs New Year’s Resolutions for Entrepreneurs

New Year’s Resolutions for Entrepreneurs.  Like many business owners, Patty Moreno-Fletcher has a few major year-end deadlines. Hers are a bit more unpredictable and life changing than most: She’s a doula—a non-medical coach who supports people through the labor, birth, and new-parent process, or as she calls it “mothering the new mother.” Three of her clients have due dates around the holidays. New Year’s Resolutions for Entrepreneurs

She’s setting a deadline for herself, too: In 2009, she purchased the domain name for her practice, Butterfly Babies NYC, but has procrastinated ever since. After relying for years on just positive word-of-mouth among New York families, she’s now made this her primary New Year’s resolution: Develop the website and start a blog to reach out to more potential clients. New Year’s Resolutions for Entrepreneurs

“Being a doula—it’s very hands-on work. But when it comes to the Internet or a Web presence or even managing an office or billing, it just give me a headache thinking about it,” she says, laughing. With 2013 just days away, business owners can celebrate the end of another year of hard work and look ahead at what’s to come—and what they might do differently based on what they’ve learned. While one notable study found the track record for successfully maintaining attempts at change wasn’t all that great, the dawn of every new year brings optimism for starting anew and becoming a little wiser and maybe a bit more efficient. Here’s a look at what a few business owners are saying they are hoping for, possibly with some inspiration for your own next 12 months. New Year’s Resolutions for Entrepreneurs

Hire new staff John Kwan, chief executive of VeriPic, says he’s resolving to increase hiring in 2013. With the economy still sluggish, “there are plenty of talented people available and many just want moderate pay,” he says. “This is the perfect environment for expansion as labor costs are low and this is also an excellent way to help the economy by hiring people.” New Year’s Resolutions for Entrepreneurs

Value your time “What entrepreneur doesn’t want to focus more?” asks Will Mitchell, a founder of the Startup Bros. business consultancy as well as owner of online marketer Clear Presence Media and reputation manager RepAssured in Tampa, Fla. He resolves to concentrate on one task at a time in order to see it to completion. “Once you start taking the initiative on this, it’s pretty impossible to ignore, particularly if you set up time-tracking software on your computer,” he says. He uses RescueTime, which tracks how much time you spend online and, importantly, shows where those stolen moments on Facebook or fantasy football sites are adding up, and detracting from more important tasks. New Year’s Resolutions for Entrepreneurs

Get better rest Mitchell says his family is full of entrepreneurs (he’s been doing business online since he was 14) and all have struggled with being able to tune out and get to sleep. “Most entrepreneurs will tell you the one thing they can do to improve their performance is get more rest,” he says. “But it’s rare that they’ll actually put down the computer and go to bed.”. How long have his resolutions lasted? “With sleep, historically I can get two to three months into that before the first crisis comes up and kind of ruins that,” he admits, chuckling. New Year’s Resolutions for Entrepreneurs

Be able to “glide” That’s what Heddi Cundle aimed to do after a hectic year of starting up myTab.co, a travel gift-card system she’s founded. After months of 18-hour days getting her start-up off the ground and chasing venture capital from Silicon Valley, Cundle says she and her team in San Francisco recently altered course and decided to license out myTab to e-commerce sites—a move that she said has been received with great enthusiasm. It’s also changed the company’s outlook going into 2013. “Things are falling into place,” Cundle says. “In the next 12 months at least, we can glide a lot easier because we’re not trying to push and strive to fit into a specific mold that we thought we needed to be in to generate revenue. We just found a different sort. Now we’re gliding into 2013. By licensing our technology to verticals, we can use revenue to invest back into myTab.co travel.” New Year’s Resolutions for Entrepreneurs

Get ready to market online New Year’s Resolutions for Entrepreneurs

Business Planning Harness the power of planning your time well, taking care to allocate your schedule according to priorities. Wait when it’s appropriate, hurry when it’s appropriate, and apply patience, vision and common sense. — Tim Berry, Business Plans

Social Media Do whatever it takes to get out of your comfort zone and into your “power place” to grow your business. Embrace change and new technologies, including social sites. Choose what works best for reaching your target market, and run with it. Most important: Have fun. — Starr Hall, Social Media

New Year’s Resolutions for Entrepreneurs Sales In 2011, show up to the meetings that you would have passed on previously. Never underestimate the power of face-to-face meetings for building stronger relationships and connections with your prospects and customers. Activity creates opportunity. — Barry Farber, Make the Sale

E-Commerce Develop and implement systems that will free up time that you can spend on other pursuits. What really matters most is making a measurable amount of progress in a reasonable amount of time and spending time with loved ones. Do the only things about which you’re passionate and work with only your ideal clients. — Lena West, Ask Entrepreneur

New Year’s Resolutions for Entrepreneurs Technology Take the security of your business seriously. Change all your passwords. Close down old unused accounts for emails, business software and social networks. And set up a password for your mobile phone. — Jonathan Blum, Office Technology

Managing Resolve to invest heavily in the people and technology necessary to meet client demands and seize market opportunity. — Paul Spiegelman, Corporate Culture

Online Marketing Understand your customers’ experience with your business. It’s essential for businesses to look at what they do from their customers’ point of view and then smooth out any rough edges. Customers have so many options. You can’t afford a single reason for one to choose a competitor’s business over yours. — Gail Goodman, E-Mail Marketing

Communications The new year will see an acceleration of the reinvention of media. With so many ways to reach so many different types of consumers, reaching out to a variety of outlets through diverse media is critical. Craft customized content and send it via multiple platforms engage customers wherever they may be. — Rachel Meranus, Public Relations

Productivity It’s critical to get absorbed in your business niche to achieve mastery. But, most importantly, laugh, love and live more fully. — Scott Halford, Brainy Business

Starting Young Forget the mantra of “work hard, get good grades and go to school to get a job.” For too long, young people have been force-fed this nonsense from their parents and mentors. It’s stifling their income generating potential. Gen Y needs to become the most entrepreneurial generation in history. — Scott Gerber, Never Get a “Real” Job

New Year’s Resolutions for Entrepreneurs Video Marketing Create at least one professionally-produced video for the homepage of your website and social media sites. It should show y why your business is the best choice among the competition and include a compelling incentive to make an immediate purchase and share the video with others. — John Arnold, Marketing Tools & Technologies

Selling a Business Prepare yourself psychologically. Make sure you’re emotionally committed and ready for the sale, or you may turn buyers off to your business. — Domenic Rinaldi, Buying & Selling a Business New Year’s Resolutions for Entrepreneurs

Buying a Business Making a concrete plan to pursue your entrepreneurial dreams, and take at least one action every day that will help you achieve your goal. Set a realistic timeline for when you will reach the major milestones on your path to entrepreneurial success. — Mike Handelsman, Buying & Selling a Business

Real Estate Question the experts in your field and find out who the real experts are. Hint: If they’re in Washington or on television, they might not be experts. — Greg Rand, Real Estate Realities

Growing Turn your small mom-and-pop business into a bigger opportunity this year by launching the projects you never got around to in 2010. — Lisa Druxman,Mompreneur

New Year’s Resolutions for Entrepreneurs Prioritizing Ask yourself, “What can I stop doing?” Begin to put stronger accountability practices into place to create a better business foundation. — Nina Kaufman, Making It Legal

Mobile Marketing Make mobile marketing a high priority. Capture mobile shoppers by updating your website to load quickly in a variety of browsers and making them Facebook and Twitter interactive. Offer competitive pricing and tap into the soaring popularity of coupons by texting them to your customers’ mobile phones. — Kim T. Gordon, Marketing Read more: http://www.entrepreneur.com/article/217806#ixzz2mVpdpnAB New Year’s Resolutions for Entrepreneurs

December 31, 2012 Today's Business, , , , , , 1 Read more >