The small business sector also makes a large contribution to federal government activities, capturing about one third of all prime and subcontract dollars.
In Texas the story is much the same. There are almost 400,000 employer businesses and over 98% have fewer than 500 employees. Small business employment represented 47.6% of the states total employment according to the U. S. Department of Commerce. In 2000, the non-farmers proprietors' share of small business income totaled $68.1 billion and increase of 7.2% over 1999, a remarkable performance indeed.
In June of 1998, the office of Advocacy for the Small Business Administration issued a report entitled; "The New American Evolution -The Role and Impact of Small Firms." In it they state that in addition to statistics on income and employment, the small business sector contributes mightily in two major ways.
"They are sources of constant experimentation and innovation, they are an integral part of the renewal process that defines market economics" and secondly "by creating opportunities for women, minorities and immigrants, they are an essential mechanism by which millions enter the economic and social mainstream."
Nowhere is this more evident than in the Houston Metropolitan area.
All of you, sole proprietors, home based business owners, LLC's and sub-S corporations, retailers, wholesalers, manufactures, importers and exporters, professionals, tradesmen and all others engaged in small business; this is your opportunity, during this period of business malaise, to stand tall with full appreciation for the tremendous contribution you are making to your country, the economy and your employees as well as yourselves.
Never has the small business sector been more important and each of you should take pride in your contribution |
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| Posted by Small business consultant at | | | |
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1. Always be honest and open. A lot of our business is referral business, and if Joe is going to tell Mary at a different company to use our services, then the story that I tell to Mary needs to be the same one that Joe heard.
2. Along with being honest and open, be consistent. With referral and relationship-based selling, you are often not the first person telling your story. If you change your rates, for example, depending upon whom you are talking to, you'll stop getting referrals. You need to be the same to the Inc. 500 company as you are to the Fortune 100 company.
3. Listen. And then listen some more. A sales call is all about careful listening. I listen, write down what I heard, summarize what I heard, and let the person know what I will do based on the information that I heard.
4. Follow-up. This means deliver accurately and on time. If you do what you say you are going to do, when you say you will get something done, you start building trust from the beginning of a sale.
5. Take pride in what you have to sell. If you know what you have to sell, inside out, and you also know background information about your client, you'll close a sale faster. Be educated. Take the time to know both your service and your client's needs. Then practice what you have to say. And remember, the worst that can happen is that someone will say "no."
6. Know when not to sell and whom to refer a sale to. Sometimes you aren't the right fit for a sale. Nothing is better than being able to tell a prospective client that you aren't the right fit, but you know someone who is the perfect fit. That client will call you time and time again if you always "do right" by them.
7. Care about your clients. Respect your clients' time. Always ask if they have the time to meet or talk, and always (always!) be on time. If a client has an urgent need, a vexing problem, feels lost and intimidated, help out! No problem is too small to get help. If you are genuine about what you want to do for your client, you will have a lifelong client.
8. Never make a client feel like "just a sale." You are there first, to take away your client's pain, and second, to add the client to your quota list. At the same time, you are in business to make money. Explain to your client what comprises your costs and fees so that the client understands your business, too. If asked to compromise value for cost, take the high road and let the client know that you pride yourself on your values and can't compromise them even for the biggest sale.
9. Stay focused. To be consistent and timely and reliable, you need to be organized and focused. Manage your time, allocate the right amount of time to making a sale so that you are able to be on time and not rushed.
10. Have fun! If you don't have fun doing your job, you'll sell less! Selling isn't about pulling one over on someone. It's about problem-solving and working with a client toward a solution. A client needs something from you. You have a service (or product) that solves a problem that the client has. The client has something you want—a problem that the client will pay you to solve. Remember that it's a two-way street. |
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| Posted by Small business consultant at | | | |
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Use of the internet, in general, and having a well designed web site, in particular, is now vital to the success of most small businesses. In addition to the good marketing practices that apply to all media, there are some things specific to good Web site design that are essential to achieving the marketing and sales results you are aiming for.
Nothing will drive customers away faster than confusing or complicated navigation! Your customers should be able to know where they are on your site at all times, and should easily be able to find pages they've already visited. >>
Consistency is the key to navigation. Make sure your navigation bar or menu is clearly accessible and easy to understand. Your menu should have clear and logical categories. Its location and appearance should be exactly the same on every page.>>
Attractive product photos can really boost your sales. If you have a lot of products for sale, use "thumbnails" that link to larger images. This will make your pages load more quickly. If you're selling electronically delivered products such as e-books or software, you may want to create simulated product shots to represent them. This makes your product more tangible to your visitors.>>
People are often hesitant to buy things online because they miss the personal interaction of doing business face to face. The best way to overcome their reluctance is to include an "About Us" page that provides information about you, your staff and your business. Include pictures of yourself and your staff members. This shows your customers they're doing business with real people and will help ease any worries they might have.>>
And while the Web's almost unlimited space gives you the choice of drowning customers with product details, you may want to exercise some restraint. Make a fast-loading site a top priority. Give visitors the option of clicking to more information if they wish, but don't force it on them. Coax customers by stages. Filling out forms is often necessary, but keep them simple and break them into bite-sized parts.>>
In order to close sales and establish your credibility, you have to provide full contact information on your site. This includes your mailing address as well as fax and phone numbers. Businesses that only post e-mail addresses on their sites come across as unprofessional and possibly even disreputable.>>
Don't neglect your site. If your products, services, prices, location, hours, contact information and marketing messages change, make the updates immediately. Outdated information frustrates customers. |
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| Posted by Small business consultant at | | | |
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While there can be numerous contributing factors why a business may fail, a new owner's lack of experience in or knowledge of that business would certainly rank high among the reasons for failure. Except for a franchise operation, where the franchiser should provide the "know how" for running the business, a new owner, like yourself, is going to need a great deal of help overcoming the barriers created by your lack of experience. As a result the loan officer at the bank in looking beyond just the financial aspects of the proposal and in weighing all the risks of your overall proposal will likely view your lack of experience in the convenience store business as representing too great a risk.
When you consider all the various products sold at a convenience store, you get a sense of the magnitude of the number of suppliers involved and each of them will have special requirements i.e., possible special terms, minimum size orders, minimum amount of notice for deliveries to be made, methods of payment, quantity discounts, etc., etc. After learning about all of these aspects of building your inventory, you must then learn all the nuances regarding pricing merchandise at a convenience store. If your store will sell gasoline, normally prices at the pump are very competitive to help draw customers into your store while prices inside the store may be somewhat higher to compensate you for the convenience factor. How do you learn how to approach these issues without some background in the business?
Setting operating hours, number and type of employees, types of customer payments you will accept, check cashing policy, inventory control and restocking, managing the cash register, loitering policy, etc., etc. are all major considerations and require some special knowledge of the business involved to make the right decisions.
Then there are extensive considerations regarding potential day-to-day pilferage and, the more serious, threat of robbery. What actions can and must be taken to attempt to minimize these risks as well as provide maximum security for your employees?
There are numerous other considerations required for intelligent, effective decisions to be made, and some knowledge of the business is needed. This is true for any business, not just this convenience store venture. However, there are steps you can take to overcome most of these issues and help to reduce the level of concern of the bank loan officer. They include:
* Attempt to get the seller of the business to remain on premise for some 3 to 6 months to provide knowledge and assistance. During that time he can be your mentor and serve to bridge the relationship he has established with suppliers, the landlord of your location, local law enforcement officers, neighboring property owners, and perhaps some special customers. You can also have the chance to review all of his operating policies and gain insight into why they were established, how effective they have been, and whether you want to retain them "as is' or make some adjustments.
* If the seller won't stay, attempt to make arrangements with someone with extensive experience in this business to join you on a permanent basis or work with you for 3 to 6 months. If such an individual is currently on the payroll and has extensive knowledge of this particular operation, so much the better. He/she can perform basically the same service for you as the prior owner. If, however, such an experienced, existing employee is not available, you can try to gain the services of an individual with considerable convenience store experience to come in and fill that need. This person can perform similar services for you except he/she would not have the existing relationship with suppliers, et al as the seller would. However, with the help of this experienced individual you will gain some important insight into what is required and how to address the areas needed to make this a successful venture.
Should you determine that you can bridge your lack of experience problem through one of the aforementioned means, then apprise the loan officer of what actions you are in a position to take to resolve his/her concern. However, keep in mind the bank is going to have concerns about the level of expertise of an unknown individual who could leave at any time so be prepared to address these issues in a convincing manner.
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| Posted by Small business consultant at | | | |
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Selecting and developing identity materials depends on the type of business and its target market. You’ll need to do some research about your customers, where and how they get their information about comparable services. Also learn as much as you can about tactics employed by other businesses in your field. Then, decide on how much you can spend on sales promotion. While you shouldn’t scrimp on identity materials, spending extra money for elaborate pieces doesn’t always guarantee results. Many commercial printers and copy centers offer designs that are both economical and effective. You may also be able to create some identity materials yourself using desktop publishing software, preprinted paper products and high-quality home printers.
Here are some considerations for common types of identity materials:
BUSINESS CARDS: The most versatile tool in an entrepreneur’s marketing arsenal, business cards may be handed to prospective clients, attached to mailings, posted on community bulletin boards, and converted into print advertisements. While creative designs and quality paper will help your cards stand out, restrict the content to the essentials: your name and title, your company name and logo (if any), address, phone number, e-mail address, and web site, if applicable. A brief, professional slogan or a few words describing your services may also be helpful.
BROCHURES. A simple, well-designed brochure is a convenient way to tell customers about what you do, your qualifications and resources, and – if appropriate – a price and delivery schedule. Keep the information brief and to the point. Brochures are intended to pique the customer’s interest, not tell the whole story.
STATIONARY/ENVELOPES. This is an often overlooked element of an entrepreneur’s identity materials. Nearly every type of business needs stationary to communicate with customers, employees, suppliers, consultants, colleagues, etc. You’ll also need some kind of letterhead for your quoted and invoices and other administrative filings. As with business cards, your stationary should include the essential information about your company.
WEB PAGES. If you plan to market your services on the Internet, layout your electronic pages in much the same way as your printed materials. Organizing material in 8½" x 11" format makes it easier for customers to download and print key data. Again, you need to be certain that your company’s essential information appears on every page.
CD-ROMs. With CD burners practically standard equipment on today’s computers, many entrepreneurs are providing potential customers with electronic samples of their work/product. The contents may be a simple as copies of sample policies or as elaborate as interactive introductions to the business. It is also possible to manufacture small, rectangular CDs that double as business cards. While certainly attention-getters, these cards can be expensive and therefore not suitable for all types of businesses. |
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| Posted by Small business consultant at | | | |
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GOVERNMENT.Gov
www.SBA.gov, This is the site of the Small Business Administration, an extensive site covering information on starting, financing and managing your business, including free guides that can be downloaded. Information on buying a business or a franchise as well as business planning, marketing, financing and information on taxes and regulations affecting small business is included. The site provides links to other sites covering such things as patents, copyrights, business insurance and much more. Spending some time with this site will be of much value.
www.Firstgov.gov. Much of the site's information is for individuals, but it has a section for small businesses and non-profits. Click on "more on-line services" for an extensive section on taxes. Included is information on consumer protection, public safety and the law plus instructions on how to contact various government offices. There is a link to the Citizens Information Center. One very important section is the resource center, which contains valuable data and statistics; FirstGov is a site worth visiting.
www.ustreas.gov The site for the Dept of the Treasury contains much information about income taxes, tax forms, and information on business and investors with a section for small business. If you have an interest or a need to know more about financial markets, accounting and the federal budget, taxes and international business issues this is the site for you.
www.dol.gov/esa The U.S Department of Labor has two sites, which have important information for the small business owners. The first covers all you need to know about wages and hours, the minimum wage, and the recent change in the overtime pay procedures with a link to FairPay, a one stop center for the new white collar rules for overtime. The site also covers employment of immigrants, rules on employees vs. contract workers and other data of real importance to many small businesses. www.osha.gov. The second Department of Labor site covers OSHA standards and everything you need to know and must know. There is a list of posters available for posting in the workplace, which may be ordered or downloaded.
www.census.gov, This sites contains information that may be of interest containing all the data from the 2000 census and more.
www.ffeic.gov, This is a geocoding mapsystem which locates demographics around your location.
www.GSA.gov, The General Services Administration site services all other government agencies.
www.state.tx.us. Every state has it's own website and the address. For other states substitute the abbreviation of the state in place of TX.
The State of Texas site is an all-inclusive site providing pages or links to all aspects of State government. Of particular interest to small business is information on state employment and labor laws, licenses and permits, on line services, taxes and taxing authorities and occupational and professional licenses.
www.sos.state.tx.us/A second state site is the Texas Secretary of State office which is responsible for most matters pertaining to corporations, as well as business start up information and selecting a business structure. |
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| Posted by Small business consultant at | | | |
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The first areas you need to consider are those applying to you as an individual. Not everyone is cut out to be an entrepreneur, and you need to be reasonably sure that it is what you can handle. To start with, answer the following questions and in doing this, be honest with yourself -- don't hedge on any answer, rather come up with a definite yes or no.
- Are you a self-starter? In your current position, someone has defined your areas of responsibility and established what has to be done and when. Can you do these things on your own or do you perform best when someone gets you started?
- Can you lead others? Assume your business requires you to have one or more employees. Will you b able to get the most out of them and still retain a good professional relationship?
- Can you take full responsibility? When you own a business you can delegate authority, assignments and certain other activities. The one thing you cannot delegate is responsibility. If something goes wrong, regardless who in your organization caused it, the client looks to you for the remedy, answer or whatever is appropriate corrective action.
- How good of an organizer are you? As a business owner you have many matters to take care of, either by you or someone to whom you have assigned the task.
- How good of a worker are you? Regardless of how hard you think you have worked in your current job, you probably have not scratched the surface of what's required as an entrepreneur.
- Can you make decisions? Will you be able to make decisions and then move on to whatever is next or do you tend to revisit or worry about what's been done?
- Can people trust what you say? Do you address matters in an honest, forthright manner or, at times, say whatever is the easiest?
- Can you stick with it? If you start something, will you continue with it and not allow other things to stop you? Do you become discouraged easily, or can you face adversity with a positive attitude and move ahead?
- What does your family think? Assuming you have a family, are they behind you completely? Do they really understand the many sacrifices they will be required to make for you to succeed in this venture?
- How good is your health? Do you have the energy and stamina to see all of this through? Is there any reason to think that your personal health cannot stand up to the mental and physical stress you will be undergoing?
If your answers are positive and strong in nature, then you probably have what it takes to run your own business. If not, then you should reconsider taking any immediate steps simply for your own personal good. Note, we have not even addressed capital requirements, customer base, location, competition, etc.
All we are looking at is you because, if there are concerns in this area, then it makes little sense to move ahead and risk doing damage to yourself, your family and your financial well-being. |
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| Posted by Small business consultant at | | | |
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Here are a few basic steps that will help you identify your goals and objectives, and how to achieve them:
- Develop an overall goal, as outlined above.
- Define two to three short term, key objectives.
- Develop criteria for measuring the firm’s progress.
- Refine these objectives with implementation and measurement strategies.
- Develop timetables and action plans to support your business objectives.
- Document everything – don’t leave it to memory. Establish a frame of reference for the work ahead.
An effective way to go about putting this in a workable format is in the development of your Business Plan. The plan will serve to provide the documentation needed as well as force you to do some critical, objective analysis of your overall plan. Once completed it will also be the basis for you to conduct a thorough comparison of planned versus actual results so you can make needed adjustments in a timely fashion.
These steps can help you set forth the organizational framework for your success. Remember that nothing is chiseled in stone. Things change, and you may find the need to update, adapt, or revise your goals over time. In the meantime, you at least set a clear course for your business and perform in accordance with your plans for success. You will have a standard by which to evaluate your progress. But also be constantly alert to the need for organizational change to meet objectives. Part of doing it right the first time is giving yourself time to reflect and adjust your plans as needed.
Whether it is done while you are opening your business for the first time or later after you have operated successfully for some time, consider getting an outside opinion. A sounding board from outside the company can often offer insights that help you be a more effective entrepreneur. In this activity a SCORE counselor can often be of significant help. |
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| Posted by Small business consultant at | | | |
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A. The "Golden Rule" –treat others as you would want them to treat you – is a must for small businesses. You want to provide the highest quality service and responsiveness because that’s what you expect when you buy a product or service.
The largely casual setting of a home office is no exception. Even if you work out of a spare bedroom and wear shorts while you work, you want clients to perceive you as a first-class operation. That means making sure you have the resources and approach to your business as good as your competitors in that shiny office downtown.
Here are some ways to make your home office as professional as possible:
Get connected. Make sure your computer has the processing speed and capacity to meet your business needs. You cannot be efficient or provide fast answers if your system is slow and constantly crashing. The same goes for your Internet access. Faster modems and phone lines may cost a little more, but the added expense will be more than offset by the time saved waiting for web pages and long documents to download.
Open the lines of communication. Consider having three separate phone lines – home, office and fax. Also install voice mail. Clients should never experience the frustration of getting a busy signal when trying to reach you or send a fax. If you receive another call while speaking on the business line, the caller can still leave a message. If you have call waiting, make sure you disable it if you expect the call to be lengthy. That persistent double click will be disrupting to you, the person you’re speaking with, and the third party trying to reach you.
Create a "real" office. Set up your home office professionally. Make it quite, comfortable and organized. Place what you use most close to you. Use bright colors or dark colors, face away from the window or toward the window – in short, whatever works best for you and helps you to concentrate.
Send it in style. Design your company’s letterhead either yourself or with the assistance of a professional designer. Use it for all business correspondence. It may be worthwhile to rent a Post Office Box for your incoming mail. Home street addresses don’t always convey the look of a professional organization.
Stay informed. Keep on top of all the latest trends in your business, as well as in your client’s fields. Join your trade association and subscribe to all the key magazines that cover your industry. These resources offer advice and information as well as discounts on business expenses. Also, join the local Chamber of Commerce and attend their monthly breakfast/networking sessions – a good way to stay in touch with the business world in general.
Self control. Now that you are on your own, it is easy to fall into a poor work pattern. Working from your home takes a lot of discipline. First, separate work time from personal time. Set hours for your workday and stick to them. After hours don’t sneak into the office to get work done unless you are up against a deadline. Likewise don’t sneak out to run errands during business hours. Think of time away from the office during the workday as money lost. |
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| Posted by Small business consultant at | | | |
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A. Yes, it ís an excellent idea to complete a loan application during the early stages of the planning process. On the surface it may seem simple but more often then not it turns out to be more of a challenge than you anticipated. Certainly, if you want the bank to loan you money, then you want to present a strong case for your business plus demonstrate that the proposal is a safe investment for the bank. Even though what you are seeking is a SBA guaranteed loan, you must first satisfy the bankís requirements before they are going to submit your application to the SBA for subsequent consideration. Frequently when small business owners are turned down for much needed loans, the bankís decline can be traced back to an incomplete or inaccurate loan application, business plan and/or financial statements.
Knowing in advance that some applications for loans are rejected because the loan application or supporting documents are poorly prepared helps you to appreciate the need to do a good job in making your application. If you find yourself in a cash crunch and want to obtain a loan quickly, you must gain the total confidence of the lender at the outset. To accomplish this requires that you demonstrate that you a serious business person and that you are fully prepared to seek and repay the loan. A well prepared package that accurately reflects your business and provides all the requested information, helps to prove your seriousness about the need for the loan plus shows you as being both responsible and able to repay this debt. Loan officers look for "red flags" in the loan application package that demonstrate a lack of preparation, competence or need. To the loan officer these are warning signs and you should make every effort to avoid them.
In all circumstances get to know the bankís loan officer(s) before you need them. These early contacts give you a chance to apprise these individuals of your business, your plans and your aspirations. By doing this you begin laying the foundation for a business relationship. Further, these relationships tend to remove the barrier of being a stranger and, as in most any situation, people are more comfortable dealing with a person they know. All of this pre-conditioning also serves you well in developing a good, long-term banking relationship. So, prepare for the loan process early-on by finding out what the bank will expect from you when the time comes for you to actually make you application for a loan. While every bank has got several items required that are specific to their process or needs, several common elements of a loan application are:
The Companyís 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 these resources to use in order to meet your goals. Specific goals, timelines and financial objectives should be included in the plan. Your plan should also include an assessment of your competition and your role and strategy in the marketplace. In addition, the plan should include a one-page executive summary that provides a synopsis of the overall plan.
The Companyís 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.
The Companyís 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.
Your Resume: A lack of management experience is often cited as the main reason for small business failures. If you can demonstrate that your management skills encompass: financial, operational and employee issues, then you build the bankís confidence as to the amount of knowledge and skill you bring to operating your business effectively. While this resume is most often requested of start-up businesses, as a business owner you should provide a resume as well.
Regardless of the fact that you are already in business begin this planning process now. Even if you donít need a loan today, it is good business to have a viable business plan that outlines the goals and outcomes you expect from your business.
Blog the Small Business Consultant at: www.Thefamilybusinessonline.com | ..> |
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| Posted by Small business consultant at | | | |
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