Silentman's Blog

2005-02-01T15:34:00.000-07:00

Is Outsourcing Right for Your Business???

The media has reported a lot about the outsourcing of jobs to foreign companies. Although the opprobrious reports regard large company manufacture of products in foreign countries for sale in their domestic and foreign markets, Many small businesses have already had experience with outsourcing. Many small business owners and small companies are not specialists in all functions of business, like human resource and other specialized functions of the business. They, therefore may outsource these functions to other companies more capable of doing the tasks.

The outsourcing website, Firmbuilder.com, is a great resource to look at to determine if outsourcing may be right for your company. The website has a Small Business Guide to Successful Outsourcing with great tips on determining the benefits of outsourcing for your business. Here is a few do's and some mistakes to avoid for small businesses thinking about outsourcing from the website.

Five Do’s of Successful Small Business Outsourcing:

Outsource the bottlenecks, the things that are really keeping you from growing your business profitably.

Pick great partners. Check them out. Talk to their current customers.

Once you outsource, your provider is part of your company, treat them that way.

Demand excellence – this is what your provider does for a living. The way they do it should constantly amaze you.

Outsourcing can scare employees – get, and stay, ahead of the rumor mill through straightforward, honest communications.

Source: Michael F. Corbett & Associates, Ltd.

Six Worst Mistakes in Small Business Outsourcing:

Not clearly defining the desired results and how they'll be measured.

Not talking to a provider's current and former clients.

Failing to consider the long-term relationship dynamics.

Signing a standardized, multi-year contract.

Not planning up front for how the relationship might end.

Treating the provider as an outsider.

Source: Michael F. Corbett & Associates, Ltd.

2005-01-23T09:54:00.000-07:00

Have You Hugged Your Customers Today???

Know everything about your customers...you need to

Jack Mitchell, HugYourCustomers.com

I recently had a great couple of experiences with customer experience. I felt a great feeling about the exchange. On one part, I was given great customer service, more than I had expected. The other part, I had given cucstomer service to a customer and the customer was greatly satisfied. I had not gone too far out of my way to give special attention, but the cutomer was pleased and was very appreciative. At both of these instances, I had felt that a hug would not be inappropriate and even welcome. This is a big deal knowing that I am not a known hugger. I did refrain, but it was welcome to be appreciated for giving good customer service and doubly so to be appreciated as a customer.

The National Federation of Independent Business (NFIB) is a small business advocacy group. Part of their website is a business toolbox. A 2003 article in the toolbox, Hug Your Customers, highlights the need to personalize customer service and keep the customer "number one" in your mindset. The article presents a study guide for the Jack Mitchell's book, Hug Your Customers : The Proven Way to Personalize Sales and Achieve Astounding Results.

Jack Mitchell is the CEO of a couple of high-end clothing retailers in Connecticut. "The only way to stay in business is with customers, and Jack Mitchell knows how to attract them, and how to keep them. He has a deceptively simple but winning approach to customer service that a relationship is at the heart of every transaction. Jack's business philosophy is based on 'hugs.' Personal touches that impress and satisfy the customer. Below is a 'study guide' for this philosophy from his book, Hug Your Customers"

Excerpted from his book:

Huggers sell with passion so they develop long-term personal and loyal relationships with customers. This means seeing, listening, and caring about the customer, and treating the customer as your friend.

You have to develop extremely satisfied customers. In the new business landscape, it's no longer enough to have satisfied customers.

Customer-centric organizations are the best huggers. That's because they're always thinking about hugs; everyone, from top to bottom, focuses first on the customer, the center of the universe. Everyone hugs and everyone sells.

A hug is anything that exceeds a customer's expectations. It's a mindset. There is no one way to hug; it can be a smile, a high five, expedited service, or sending out 3-cent stamps.

Everyone on the floor. This is a Golden Principle, because it puts everyone where they can see, touch, and feel real live customers.

For more information about Jack Mitchell, be sure to visit hugyourcustomers.com.

2005-01-15T15:18:00.000-07:00

Businesses Urged to Adopt "Professional" Email Addresses

The UK small business resource website, Startups.co.uk, shared results of a consumer survey of English subjects by the web hosting firm, Easily.co.uk. The survey asked consumers of their prospects of procuring services from businesses with and without exclusive email addresses. While the survey was done half a world away, the results may still be relevent to US businesses.

"Small firms are being advised to adopt 'professional sounding' e-mail addresses if they want to benefit from hidden profitability, in a new report. The survey, by web hosting firm Easily.co.uk, asked over 1,500 consumers, if they preferred fictional email address sales@londonplumbing.com or londonplumbing@hotmail.com."

"The results show that a massive 88 per cent favoured the first option, as they felt that it suggested a more professional and trustworthy organisation. Younger consumers were more likely to have this attitude, with 95 per cent of 16-24 year olds more likely to trust a domain specific address. Jonathan Robinson, director of business development at Easily, said: 'Email is an extension of a company's online presence, so it is unsurprising to find that consumers expect a professional business website to be complemented by domain name specific email addresses.'"

While the exclusive email addresses do come at a cost, the benefits for your business may prove a profitable investment to get the edge over the competition. It might be best to use your new "gmail" account to impress your friends but not your customers.

2005-01-01T09:46:00.000-07:00

Personal and Entrepreneurial Prosperity in 2005

It is my sincere wish for you and yours to have personal and entrepreneurial prosperity for the New Year. The New Year is a time to reflect and act upon our postponed intentions for success and to evaluate our own current or future plans for small business success.

The authors of the 30 day business plan, bp30.com, propose 30 Golden Rules to Achieve Personal and Entrepreneurial Prosperity (.pdf format) for leading a healthier and more successful life. The .pdf library on the website is chock full of very useful information for the entrepreneur.

"Success in business requires training and discipline
and hard work. But if you're not
frightened by these things, the opportunities are
just as great today as they ever were."

David Rockefeller, US banker (1915 - )

2004-11-03T13:19:00.000-07:00

Every business decision has a financial impact

Intellexis.com, a provider of financial and business skills learning solutions, posts a
free financial awareness test to assess your business financial awareness.

The understanding of basic business finance concepts is now an essential skill required by all business owners. Every business decision has a financial impact. Are you able to quantify this? Intellexis asks:

Can you compare the effects of different strategies?
Can you present a business case that justifies the approach you would like to take?
Do you understand how your customers and suppliers view your business?

The test was a great resource to identify where your knowledge gaps are. Personally, I did well on the margins and cash flow portions, but I sure will have concentrate on the assets and costs portions of the assessment.

2004-10-07T14:47:00.000-06:00

"What went wrong at Schlotzskys?"

In a recent AdAge artice, What Schlotzskys' Bankruptcy Teaches Marketers, Madison Avenue Guru, Al Reis, expands on his 1982 book, Positioning: The Battle for Your Mind.

Al Reis gives excellent examples of poor brand names. Did Schlotzkys have a badly chosen name??? It has been a couple of months since I have eaten at the deli. I guess I will need to make a visit to Quizno's instead. What's the deal with naming these delis, anyhow??? There is genuine simplicity in a name like Moab's Deli for a deli in Moab. The article made me rethink my own choice for a name, but not really.

2004-09-30T13:20:00.000-06:00

NEBS Business Plan Tool

NEBS.com is an online resource for custom branded business forms and stationary. NEBS is a cool resource for any small business. The website contains a lot of information and resources about business branding and business management.

Most recently, I have discovered a nice tool to complete a business plan, a business plan template. The business plan tool is on one page. This could be problematic if you are not used to backing up the information you enter into the template. This aside, the template is a great place to start and it is totally free. The template is a great place to start on your business plan.

2004-09-23T15:01:00.000-06:00

2004 - 23rd Annual Small Business Capital Formation Forum

The Securities and Exchange Commission hosted its Annual SEC Small Business Capital Formation Forum on Monday, Sept. 20, 2004, at its headquarters in Washington, D.C. The SEC has hosted the forum annually for 23 years under the mandate of Section 503 of the Omnibus Small Business Capital Formation Act of 1980. The forum offers an opportunity for representatives of smaller companies to meet with senior government officials and communicate their views on small business capital formation.

2004-08-27T13:38:00.000-06:00

Some of the Best Places are Near Here

The recent Forbes' list, Telecommuting Heavens, lists the best places in America to work without the office. Rich Karlgaard, author of Life 2.0: How People Across America Are Transforming Their Lives by Finding the Where of Their Happiness, Forbes publisher and Digital Rules columnist, lists his best places to telecommute.

Albuquerque, Durango and Moab all made the list. I am not surprised. They are all great places. I am a total fan of Moab. What a great place to be.

2004-08-07T08:33:00.000-06:00

Other Options for Small Business Financing

The online business magazine, Canadian Business.com, discusses the recent brainchild of the private equity firms for small business investing, the Business Development Company (BDC).

The article, Privates on parade, claims the development of this investing vehicle for investors to invest in a portfolio of small businesses is off to a shaky start because of the high fee structures that would diminish the high returns that attract investors to these startup firms in the first place.

For the small business, the BDC is not the shrewdest option for fnancing a startup company. "In fact, small and mid-size companies looking for capital will go to banks first, says Clyde Harrison, founder of Beeland Management Co. LLC in Chicago. That suggests to him that the companies in BDC funds have already been passed over by the banks. 'If you're a private company and you're going for financing, you are going to the bank first. That's the easy way to get money. It's only companies that can't do that that are going to go to a fund for money,' says Harrison." There are cheaper ways to finance a business than through a private equity firm. Debt financing is still the best financing for your business. And because of the historically low rates, now, more so than ever.

2004-07-15T11:38:00.000-06:00

"Life is a Long Lesson in Humility."
James Matthew Barrie, Creator of Peter Pan
Mark Paul, president of New York-based MGP & Associates PR. and adjunct professor of Reputation Management discusses a need for humility in business leadership to avoid the resulting clouded judgement, alienation of clients and employees and most importantly an inflated false sense of self worth.

Here are Paul's four tips to a healthy (and accurate) sense of self-worth:

Define truth. What are your core beliefs? What do you value as important? "Even if [you] are stretching the truth, deep down [you] know what the truth is," says Paul. Take time to reflect on the path you are headed and evaluate it against your moral compass.

Have an accountability structure. CEOs who surround themselves with yes-men or yes-women are never going to reach their full potential. If you silence constructive criticism and encourage flattery, then you'll never get the clear picture. Surround yourself with people who you trust to be completely truthful; these are your accountability partners. "There might be some things you need to send over to them and say I'm about to make this decision, what do you think?" says Paul. "That's where the honesty comes in, that's where the ethics comes in."

Create a framework for decision-making. What Paul uses is OSTA (objective, strategy, tactics and audiences). Your objective should be singular and outline your ultimate goal. The strategy is your plan to reach this goal and tactics are your tools in the strategy. Your audiences are the people who will be affected by your decision-making. Define each one of these elements carefully and never stray from this model of decision-making. "I use that for everything I do," says Paul. "Not only as a consultant and a professor, but also in my own life."

Seek out examples of success. Unless you've seen another person achieve a balance of humility and self-esteem, achieving the goal for yourself will be very difficult.

2004-06-17T19:32:00.000-06:00

Solving Cash Flow Problems
An Article by Pete Cooper

The small business webhosting website, iBoost.com, offers a small tutorial about cashflow definition and management. The article is a great little piece about one of the most critical componants of business management.

"If any single term can define what it is that makes or breaks a business, it must surely be 'cash flow'. Even if you have the best staff, greatest investors and wildest ideas, with a bad cash flow situation your business is likely to go bankrupt rather quickly."

"Cash flow is an important topic because it affects all businesses, no matter what industry they're in, their size or even their expertise."

The website suggests a "General Cash Flow Strategy:"

Have a good accountant. Whether you have a large group of accountants working on your books or just your mother preparing the figures to pass on to a lone chartered account, make sure they're good at their job. If your company has more than a couple of employees, having a good accountant should save you more money than the accountant will cost. They will also be more qualified to give you advice on tax loopholes and ways to avoid cash flow problems.

Be diplomatic and don't lie. If you can be diplomatic with your customers and those who you owe money to, you're half way there with solving your cash flow problems. Be honest with people you owe money to. If you can't pay back an installment on a loan within the time required, organize a deal and show them that you're definitely going to have money available to pay the installment at a later date. Most companies will deal with you if you're honest with them. After all, it's not in their interests for you to go bankrupt and be unable to pay off the debt.

Cut down your expenditures anyway. If you can cut down your expenditures just by a little each month, you can save up money to prevent future cash flow problems. Even if you're flush with cash in one month doesn't mean you will be the next. Try not to work on the brink of bankruptcy all the time.

2004-05-31T19:49:00.000-06:00

Helpful Business Planning Tool On-Line

BizPlanIt is a professional business plan consulting firm that helps companies develop investor-grade business plans to move down the road towards a successful capital or strategic transaction.

BizPlanIt provides a 14-part virtual business plan tool to help entrepreneurs develop their own business plan. The virtual business plan provides helpful information on each section of the business plan. A great tool.

The BizPlanIt 14-Part Virtual BizPlan

2004-05-28T10:21:00.000-06:00

GOOGLE6035a72514a73594

2004-03-29T13:27:00.000-07:00

What do Russians Think About Their Bosses?"

"Horoshe otnashnya mezhdu rukavaditelyami i podchinyennimi pomogayut uspehu dela."
"Good relations between employers and employees increase people's work ethic
and help in the successful development of any business."
"A ‘good boss’ is, first and foremost, a caring and compassionate person, say 38% of working Russians. At times, emotions shown by the superior matter even more than what he actually does," according to a survey of the Russian people. The Russian Public Opinion Foundation also reported that 15% of those polled think training, experience and competence are crucial for a good boss. Interpersonal relations in leadership win out over leader competency when evaluating leaders.

Psychologist of Moscow's Socio-Psychological Center, "Vera" Valentina Morozova, claims that "such high percentage of "personal" characteristics in the portraits of 'the perfect' and 'the worst' boss has to do with the fact that Russians tend to put their work relationships before work itself! Not everybody realizes that a person can, in fact, be a good leader while lacking decent interpersonal qualities."

2004-03-29T12:44:00.000-07:00

'Cheeky' Techniques for Motivating Your Employees

Joan Lloyd, a management consultant, gives some tongue-in-cheek advice for motivating your employees in a recent bizjournals.com article.

Don't give too much praise -- it will go to their heads.

Be quick to point out faults and mistakes.

"Do you recognize someone? Just make sure it's not you."

2004-03-22T06:51:00.000-07:00

There is no Financing Without a Proper Business Plan

Euroventures is a venture capital firm that manages private investment in Hungary and Eastern Europe. It manages over $30 milion in 20 funds. In a survey of its investments, it found a need for a proper business plan and proper business modeling for companies to compete for an anticipated $300 million–$500 million in new venture capital investment in Hungary to come with EU enlargement.

Euroventures’ research showed that 70% of the companies overestimated revenue, 80% overestimated the necessary profit margin, 90% overestimated profit, and 100% underestimated the working capital necessary for the company.

"A minimum business plan would define strategic goals, lay out a business model and provide a profit and loss forecast, explained Péter Tánczos, investment manager at Euroventures. A really high-quality plan would also include a market analysis, a strategic plan including marketing and exit strategy, and balance-sheet and cash-flow forecasts, he added. Tánczos also said it is useful to include the results of sensitivity tests, showing the effects of certain variables on the company's profitability. These might include variations in the number of products sold, pricing, or the punctuality of clients' payments, he said.

István Préda, owner of corporate finance advisory firm Magánbankár Kft, suggested, “The best management teams are well skilled in putting together an ambitious business plan and executing it. But even in such cases, financial advisors can add value by helping sellers build a credible model, which at the same time maximizes the value of the company,” Préda maintained. “In fact, business modeling is a perfect tool for experimenting with various strategic options with a view to maximizing the long-term value creation of a company.”

Sound business planning is necessary in the constant competition for limited capital in all markets. What can be said about Budapest companies, can be true for our own local businesses.

2004-03-14T13:21:00.000-07:00

Successful Entrepreneurs Make More Mistakes

Eric Sink, the founder of the Independent Software Vendor (ISV) company, SourceGear.com, gives some excellent advice in a recent article for the Microsoft developer Network (MSDN) for avoiding the wrong type of mistakes in running your business. While mistakes are inevitable, Mr. Sink gives sound advice to differentiate your mistakes into two different types of mistakes:

Clueless Errors - Clueless errors are the worst mistakes to make. They are the errors where you can't see the bad result coming. According to Sink, these error types will become less frequent over time and as you get more experience in your business. He suggests reading more about your business. Reading will give you more answers to the different problems you might encounter in your new venture.

When you are starting your own business, you will want to ensure you make as few clueless errors as possible. As an entrepreneur, you are responsible for every aspect of your business and it behooves you to become aware of disciplines your venture requires to mitigate the negative effects of these inevitable clueless errors.

Bad Bets - A bad bet is a mistake where you understand the risks involved in your business decision. You are aware of the risks involved, you decide and you are betting on a desired outcome, full-aware of the possibility of adverse results. Mistakes can happen and "you placed a bet that the bad outcome wouldn't happen, and your were wrong."

You are in business and risks are inevitable. As an entrepreneur, you are a natural risk-taker. When you make your business decisions, you want to make calculated risks that will improve your business. Eric Sink suggests making more "non-fatal" mistakes as these mistakes will set you along on your entrepreneurial learning curve and you will learn valuable lessons from your mistakes and help you gain experience to not make the same mistakes in the future.

Challenge your resistance to risk-taking as you may hinder your soul's evolution as an successful entrepreneur.

2004-03-09T20:06:00.000-07:00

A Welcome for New Businesses

The Senior Corps of Retired Executives (SCORE) has an affiliation with an interesting and information-packed website for new business ventures,welcomebusiness.com. The website will usually direct you to the usual service providers but it also allows you to sign up for email counseling with your local SCORE chapter. Nice.

Some of the links aren't updated but the site has a lot of great articles and information for new businesses to make up for the outdated links.

2004-03-02T10:41:00.000-07:00

A Great Opportunity for Native Entrepreneurs

The SIPI Small Business Administration Project is getting underway with two series of small business development workshops in The Jemez Pueblo, today and tomorrow (March 2 and 3), and at the UNM-Gallup campus on March 9 an 10. SIPI is providing basic training on small business development to native entrepreneurs. Under the auspice of the Office of Native American Affairs – SBA National Office, The Southwest Indian Polytechnical Institute (SIPI) is working closely with 5 other partners for this national SBA initiative, including Nth-Degree Analytics, G&G Advertising, Arviso Business Consulting, Kauffman & Associates, and Mandaree. Under a one-year grant, each partner has a unique objective to help address economic development in Indian Country.

The training module, Empowering Tribal Communities: One Entrepreneur At A Time, is a four-module training:

Module 1: Creating A Dream: Small Business Basics

Module 2: Envisioning A Dream: Strategic Planning

Module 3: Selling the Dream: Marketing

Module 4: Protecting the Dream: Financial and Legal

The program schedule in Gallup will certainly include representation from the Navajo Nation Regional Business Development Offices. It would be a great time to get an overview of the business planning process and have some questions answered. The program is set to deliver business trainings to some 100 tribes across the nation. What a great opportunity for natives want to start their own businesses. Don't miss it.

2004-02-26T16:21:00.000-07:00

How Important is Your Personality to Your Everyday Life?

Victoria Pao and Steve Lawrence, writing for Strategy + Business, explains in an article why branding is critical for both internal and external customers. "(Branding) gives us a competitive advantage in challenging economic times. And, internally, it reinforces our strategy and motivates our people to be focused on clear, shared goals." A comprehensive branding strategy has the ability to communicate the strategy to the internal stakeholders, as well as, communicate its product aims to the customers.

Branding is one of the most important parts of the marketing strategy. LogoBob.com defines a logo design as a graphic representation of your company's identity. The logo can preposition your product or service in the customer's mind or leave you in the clutter of today's overcommnicated markets.

CreativeBusiness.com suggests the use of design professionals. According to their rationale, creating a strong and distinct identity for your business is too important to leave to chance or to the lowest bidder. The value of the skill of a specialist of graphic design lies in four approaches to his client's problems and opportunities:

Communication
Image
Value
Flexibility

How important is your brand to your business? David Ogilvy, marketing mega guru, referred to a brand as a “product’s personality…its name, its packaging, its price, the style of its advertising, and above all, the nature of the product itself.” So, how important is your personality to your everyday life? That’s how important your brand is to your business.

2004-02-15T21:14:00.000-07:00

The European ENRON

I have grown fond of the taste of Parmalat milk. Parmalat is the leading producer of shelf-stable milk in North America. I think the different taste comes from the higher pasteurization temperatures for shelf-stable milk. It was certainly a tough holiday season for the milk producer from Parma, Italy (In Italian, Parma + Milk = Parma + Latte).

The recent scandal is bound to have a large impact on the new European Union. It would seem problematic for the European Union to now have to deal with a crisis like this. The European Union is set to admit new members and incorporate the national products of the entering countries into the larger EU market. Recent policy has been to limit state aid for agriculture products and place trade quotas for new member countries. According to an EU commissioner, "' the Parmalat scandal will have a significant impact on a range of EU policies for years to come,' "

The scandal is sure to require political wrangling. The scandal will bring in regulations for the financial industry and business, in general. It will be interesting what types of regulations will be put in place to guard against accounting irregularities. It is definitely an issue the EU politicians will have to deal with. I wonder if the governance to come from this scandal will resemble anything like the US Sarbanes-Oxley Act. I have a suggestion for a name, the "Ahern-Tremonti Act."

On the downside of this type of scandal are the regulations that are enacted to codify good business practice. The regulations make barriers of entry for small businesses. It is another cost of doing business for companies to factor. I think the regulations will be taken is stride in the EU because of the high amount of regulation on business in the EU.

2004-02-09T19:28:00.000-07:00

Marketing for Smarties Workshop

In the latest schedule of workshops at the SBDC, the latest series of workshops is a series designed by the entrepreneur/marketing coach, Don Warner who is author of the book, Marketing for Smarties.

The series of four workshops across three months will help small business owners and entrepreneurs evaluate their marketing and sales process to help them understand their markets for their products and services. The workshops will help small businesses design and implement a usable marketing plan for their business through a 14 step process. For more information about the Marketing for Smarties series, visit Don Warner's website at www.marketingforsmarties.com.

Marketing is one of the most important part of a business because it is analyses the existing and potential customers for the business's products and services. According to the syllabus for the workshop series, positioning and creating a sales process will be reviewed to help businesses get the new customers and to have a process in place to help businesses deal with the increase in sales. Sounds like a pretty comprehensive series. I can't wait!!!

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2004-02-05T20:06:00.000-07:00

Gallup SBDC's 2003 Client Business of the Year

The New Mexico Business Development Center network presented its 6th annual awards at a dinner honoring the businesses and at a ceremony during the New Mexico state legislature recognition day for the network of 18 SBDC centers in Santa Fe on February 4th and 5th. The event honored businesses around the state that are clients of the NMSBDC.

Redhouse Consulting Services was named UNM-Gallup SBDC's Success Client of the Year for 2003. Red House Consulting is an substance abuse counseling service business. Mr. Ricardo Spencer started the consulting business in 2002 as a New Year's resolution. The business now offers drug and alcohol abuse counseling. Congratulations goes to Mr. Spencer and the 17 other client businesses for their initiative and perseverance that made their businesses an asset to their communities. Great job!!!

This years 18 honored clients are:

Mary Alice Higbie, The St. James Tearoom, Albuquerque

Dawn Sanchez, New Dawn Creations, Albuquerque

Tim Montoya, Aztec Machine & Repair Inc., Aztec

Kara Caselman, Casel Land Fund Center Inc., Clovis

Terry Steir & Yvonne Davis, ShoBiz, Clayton

Kathy Caddell-Crisp & Lori Orosco, Krystal Clear Optical, Carlsbad

Scott & Vanessa Gray, Gray Enterprises LLC, Grants

Robbie Robinson Jr., American Transmission, Hobbs

Ricardo Spencer, Redhouse Consulting Services, Mentmore

Cesar Beltran & Valerie Beltran, Beltran's Carniceria Inc., Mesquite

Phil Archuletta, P & M Signs Inc., Mountainair

Giovanna Paponetti, Captured Moment, Rancho de Taos

Isabel Gonzales, Zeller's Cleaners, Raton

Bonnie Snyder, Savories PCS, Ruidoso

Bruce W. Klinekole & Terry McEntire, White Mountain Chiropractic, Ruidoso

Gordon West, Gila WoodNet, Santa Clara

Gloria J. Correa, Indulge-A Beauty Euphoria, Santa Fe

Jerome Martinez, Jerome Martinez Enterprises, Santa Fe

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2004-01-27T20:43:00.000-07:00

A List for the Small Business Owner's Informational Quest

In November 2003, entrepreneur.com put together a fairly comprehensive list of "40 government resource sites you can't live without." The list is grouped into 6 catagories:

Business Basics

Business Opportunities

Government Branches and Agencies

Legal Aid and Information

Money Matters

Research and Business Development

I would say that it's at least two months worth of blog material, :o) but that's just me. FYI - The Small Business Development Center's website is listed under the Business Basics section. The local New Mexico network for the SBDC can be viewed at www.nmsbdc.org.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2004-01-27T18:18:00.000-07:00

Gallup COC "Person of the Year"

"I think Prakash ... has a very bright future ahead of him."

Congratulations to Prakash for being selected as the Gallup Chamber of Commerce "Person of the year." According to an Independent report, the "(Chamber) board felt that (Prakash) Sundaram best met the qualifications set up by the selection committee - leadership, success, volunteerism, admiration (from peers and family) and his value of contribution to the community as a whole."

Stay tuned for the UNM-Gallup SBDC's "2004 Business of the year" award, next week.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2004-01-24T18:44:00.000-07:00

Viral Marketing

What explains the success of a lot of internet companies now and in the beginning of the internet, i.e. hotmail, yahoo, blogs, etc.? The companies make use of a well thought out viral marketing program. The company will design features to make their product or service seem indespensible to users and their acquaintances. The users will become evengelists for the product. MarketingSherpa.com says that "Viral marketing is the ability to get consumers to tell each other about your product, service or Web site … so you can spend less money on advertising. It's also known as 'pass-along', 'friend-tell-a-friend', and 'evangelism' marketing."

I admit to having been caught up in the pandemic, from the indespensable Treos to the classic IKEA. Who can totally explain what make somethings uber chic, like cabbage patch dolls or web-based email? According to Reid Walker of reid-on.com, the viral marketing program, also known as a "replication strategy," had become a core strategy for internet companies to develop their markets. The strategy is making great use of the techniques of internet design to hook users and their "converts." What Mr. Wallker believed was marketing professionals would be asking "What is your 'replication strategy?'"

What has infected you?

2004-01-21T17:43:00.000-07:00

Venture Capital Grade Business Plan

According to Pratt's Guide to Venture Capital Sources, "if the (business) plan is done properly and completely, it will probably take 150 to 300 hours of intense work." This might sound like a lot of work but the business plan does need to be thorough. The venture capitalist wants to know if the business is viable taking into account every aspect of the business from a thoroughness of the market analysis and stratagy to the competency and strength of the management. "Before committing their funds for what will probably be at least five years, most venture capital investors will want to be certain the (business) plan has been carefully thought through..."

With the high level of competition for the scarcer venture capital, the venture capitalist will spend little time on a business plan. He will most likely read only the executive summary portion of the business plan. In addition, as a rule of thumb, a company should have the potential to be worth at least $30 million within three to five years to be of interest to the venture capital investor.

Because there are many reasons for doing a business plan, there are different types of business plans. A business plan should help put your business ideas to paper. The business plan will help identify problems and issues with a venture. The "venture capital" busines plan is the highest level to which any entrepreneur's business plan should strive to attain. The venture capitalists have set base standards of profitability, performance, competency for their venture capital dollars. While these standards my not be relavant to every entrepreneurs business, the standards are available to entrepreneurs to benchmark their business' performance.

2004-01-19T18:50:00.000-07:00

The Challenge of Self-Employment

The ultimate challenge of self-employment is managing yourself.

*How effectively & efficiently you use your time
*Focus
*Determination, persistence and vision
*Self-confidence and how you come across with those you interact with
*Energy
*Knowledge
*Wearing many, many hats

I relish the challenge, and the freedom, and the opportunity. But, it isn't easy, and at times, it seems frightfully impossible. It takes immense faith and persistence to stay the course. And sacrifice.

And yet, I recommend it highly - if you have the stomach for it. The rewards can be immense.

Ian Christie, www.boldcareer.com

2004-01-17T19:51:00.000-07:00

Global Entrepreneurship Monitor Conceptual Model

In the Global Entrepreneurship Monitor's conceptual model for enterprise development shows the relationships between nine conditions of the national entrepreneurial framework and the national economy. There are nine conditions that are measured. The United States have rated well in many categories according to the 2002 report. The Global Entrepreneurship Monitor (GEM) offered several conclusions for the rating for the US.

Entrepreneurship Education Needs to Target Women

Entrepreneurship Education Over-emphasizes Venture Capital - A very small amount of businesses are funded by venture capital. Less than three percent of a new businesses are funded by venture capital. Despite the reality, a lot the entrepreneurial education available in the US stresses the venture capital component of entrepreneurship.

Development of the Informal Investment Education - In Europe, the emphasis in entrepreneurial development is the development of a network of informal investors. The potential entrepreneur has the better potential to access angel investors (strangers, friends and family) than accessing venture capital

Unrealistic Portrayal of entrepreneurial Culture in the Media

2004-01-14T20:37:00.000-07:00

Bureau of Indian Affairs (BIA) Information Workshop

Today, The BIA held an informational seminar about the programs they have available to assist in business creation for Native Americans. The Katasse Consulting Group from Alaska is going throughout the country giving seminars to lenders and business support professionals about the different BIA programs available.

The BIA has three programs Loan Guarantee, Loan Insurance and Insurance Subsidy. The BIA program is an alternative to the SBA loan guaranty programs and they should be considered when trying to obtain a commercial loan.

By the way, the BIA does not have a website because of litigation. This is a great disservice to people who want to know more about the programs. Hopefully, the situation will be settled soon.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

Sirolli Institute Enterprise Facilitation

On the other side of town, the Sirolli Institute gave an informational workshop to the community. The Sirolli Institute is working with the New Mexico Economic Development Department to host a pilot "Enterprise Facilitation" project in New Mexico. Gallup is a potential location. According to this week's Journal article, the communities must commit resources to the demonstration project. The community is "required to recruit a widely representative local management board of at least 50 volunteers who are passionately committed to the community, believe in the intelligence of the local population, believe in private enterprise, and are willing to share their networks and resources to assist local entrepreneurs with developing business ideas." Sirolli's requirements aside, a community must be large enough for to have enough of these type of people to commit to the effort to make a real difference.

The Sirolli process seems basically like a program of network development for communities who have trouble with networking already for whatever reasons. I won't say catch twenty-two, but didn't President Clinton have kind of the same idea with the USDA AmeriCorps program in the mid 90's?

I admit that networking is totally important for the development of entrepreneurs and their small businesses. According to the Global Entrepreneurship Monitor 2002 report, in a survey of over 7,000 American households, 28 percent of low income respondents said they knew entrepreneurs. Of the respondents who identified themselves low income and as entrepreneurs themselves, 58 percent said they knew entrepreneurs. Compared to the 68 percent of both middle income and high income entrepreneurs who responded that they knew entrepreneurs.
This suggests that the low income entrepreneurs are making their own inroads into the network of entrepreneurs. The low income entrepreneur will know other entrepreneurs at a comparable rate to his middle and high income counterparts

The Sirolli program could make networking easier and better quality. A program could help the nascent entrepreneurs (people who are in the process of business planning) have access to a quality mentoring system. Back to Gallup -- a lot of the business planning we do is for micro businesses. These businesses do not generate many jobs at the outset and the operations are small. An ambitious program like Sirolli might leave these "less sexy" entrepreneurs to the wayside in search for larger enterprises.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2004-01-10T10:06:00.000-07:00

Powerpoint's Limitations on Creativity

I suppose January is the month to look back at the past year check yourself for things you would want to do better and resolve to become better.

I have seen quite a bit of discussion on the web about how presentation software is limiting the creativity of the presenter. I admit to using templates for past presentations. The templates are bulleted lists. The slides are pretty much the same. I understand the frustration with presentation software limitations. In the past, i have used flipcharts and whiteboards to enhance my presentations.

In 1998, writer, Doc Searls, demonstrated the limitations of architectual design software by comparing it to the creative process of an architect in an article, It's the Story, Stupid.

Previous presentations of mine went well and I am confident that the content was substantial and terrific. I could definitely include more features in my PowerPoint presentation using HTML. Everything said. One resolution for 2004 is absolutely to improve presentation material when possible.

2004-01-08T18:53:00.000-07:00

Web-Based Business Planning Program from Canada

The Canada Business Service Center provides a web-based Interactive Business Planner to help you complete a business plan for virtually any business, on-line.

The program will ask you to fill in fields to complete the different parts of the business plan. The program is similar to most other business plan software programs but it is on-line. You are able to edit and store the information in cyberspace until you are ready to print. It is a really neat program and it is also available in the French language (oui, oui).

2004-01-07T18:07:00.000-07:00

eProBiz.com - A Small Business Virtual Resource Center

In 2001, the Small Business Innovation Research (SBIR) Program awarded a $70,000 grant to a Montana entrepreneur to do a feasibility study to determine the best way to provide small business counseling services to rural businesses. This "interactive, web-based resource center would have not only been able to assist small business owners in creating a detailed business plan, but would also have automatically completed all forms necessary for submittal to a federally guaranteed loan program."

The results of the feasibilty study and subsquent SBIR funding yielded the ItsSimple.biz website.

Some of the information on the website is still specific to the State of Nevada, but there is a lot of good business templates from the different organizations like the SBA, SCORE and the Women's Business Information Center ("standardized issues," I don't know). The website is basically a web portal to access the different content from other providers. I was so hoping for a web interface to help me not only "create a detailed business plan, but also automatically complete all forms necessary for submittal to a federally guaranteed loan program." :-)

I don't know how feasible such a project would be. I do know that there are all types of businesses with different requirements and a one-size-fits-all approach would attenuate the effectiveness of the business plan because of the unique circumstances of each business.

2004-01-01T00:00:00.000-07:00

---HAPPY NEW YEAR!!!---

2003 was a great year, my first year at the SBDC. It has been a great experience. I am totally psyched for the new year.

I wish you all the best for 2004 with abundant prosperity, health and happiness.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2003-12-25T00:00:00.000-07:00

I wish everyone a very Happy Christmas Holiday. Tis, the season to be jolly. Have a great holiday.

Je vous embrasses tous pour cette féte de Noel 2003.

2003-12-15T18:59:00.000-07:00

The Congressman's visit was short and sweet. My impression is that he does this type of thing often. It seems very hard to get a minute of his time. There are so many people vying for it. The turn-out for the breakfast wasn't all that great. That is too bad to miss an opportunity like that.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2003-12-12T20:46:00.000-07:00

It was a crazy week. I am so glad it's over.

We are busy getting ready for the Congressman's visit, next week. The painting of the offices went off well but the cleaning up part is a real drag. The office is a lot brighter and my office seems bigger after some clever rearranging of the furniture (if i might say so, myself :o) ). It seems the office renovation is being done in three phases; painting, cleaning and Christmas decorating. I still have some stuff to do yet. I will have to come in during the weekend (ugh).

To top the whole deal off, the Congressman's legislative aid called to change the date of the breakfast, early this morning. The director had to call all of the guests. She took it in stride though. The breakfast is now scheduled for Monday morning (bad day and time for a meeting --- especially for me........double ugh).

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2003-12-04T21:17:00.000-07:00

My "Managing Your Credit" workshop went off quite well. There were many lively discussions and the participation from the group was great. Navajo housing Authority had sent a couple of mortgage specialists who really contributed to the training and kept me on my toes (honestly, what else can you expect from NHA, anyhow ;-) ).

I was a bit afraid that I wouldn't have enough content for the full four hours scheduled. But the timing was a godsend. One thing I hope that I brought home was to remember what ramifications filling out a credit application can mean to your credit rating, long after the two-liter of soda pop is gone. It is just not worth it.

In the future, I would like to have my workshops on the internet. I am not sure of the format yet. I hope to have that up during the spring or summer schedules.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2003-11-14T17:42:00.000-07:00

Congressman Udall is going to be paying Gallup and the SBDC a visit between house sessions on December 16. Appararently, he does this every year. It's only an hour-long breakfast. We are going to be inviting our clients who are in business. It will be cool to have the ear of a ranking member of the U.S. House of Representative's Small Business Committee even for an hour.

But, why does it have to be at 8:00 in the morning.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2003-11-02T12:10:00.000-07:00

Tips to Lower Risks of Failure for Start-Up Businesses

Get experience in management and in the business you plan to start. Take an accounting course to brush up on business fundamentals and make sure you have experiences to have the best product and service possible. The best way to get experience is to work for someone, at first.

Follow your strengths and interests. You will have much better chance for success if your business centers around what you like to do and what you are good at. Plus, you are happier.

Know your weaknesses. Not all people can know all things about running a business. Identify your weaknesses and seek assistance from a qualified professional.

Plan ahead. One of the biggest reason small businesses fail is because they fail to plan. A business plan will help you identify potential problems encountered during the start of your business

Make sure you have your family’s support. A new business wil take its toll on the family. Your family must understand that you will have limited time and limited finances until the business gets going.

Be prepared to be tired and discouraged. Along with your family, you must be ready to be discouraged by unforeseen problems. As the owner of the business you will be expected to work non-stop to make your business a success

Use facts to substantiate your insights and hunches before acting on them. Too many times, we will make a business decision that is based on our un-objective impulses. Try to avoid emotion when making business decisions.

Don’t be too proud to quit. Incorporate exit strategies into your business planning process. Many factors may make the venture unviable for the time being.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2003-10-26T15:21:00.000-07:00

Your Business Presence on the Internet - Part 3

Having a presence on the internet is essential for your business in the 21st century. NEBS.com has a few ideas about starting your small business and formulating marketing strategies for the web. Here are some of their suggestions:

To fully leverage your Internet investment, your goal should be to get users to come back to your Web site again and again--or to increase stickiness. How do you get your audience to return to your Web site?

Publish a Newsletter. Develop a newsletter that your visitors can really use, whether it covers current sales promotions or news related to your industry.

Add an Internet Resources Page to Your Site. Your site is rarely going to be a one-stop resource for users in itself. Think of other categories that would interest your audience and find quality sites that offer information on that topic.

Fill Your Site with Useful Tools Enable customers to track their orders, e-mail customer service, or view account status. Also, think of interactive tools--related to your company's product or line--that will help users.

Sponsor Contests. Web-based contests usually generate a lot of response. There are lots of low-cost ideas, and all will bring traffic to your site.

Update Content Frequently. Fresh content will keep users coming back to your site, and will help to brand your company.

2003-10-22T19:08:00.000-06:00

Your Business Presence on the Internet - Part 2

Having a presence on the internet is essential for your business in the 21st century. NEBS.com has a few ideas about starting your small business and formulating marketing strategies for the web. Here are some of their suggestions:

How to maximize the effectiveness of your Web site:

Give Visitors a Reason to Return. Visitors are more likely to stick around if useful information or other interesting content is provided besides product facts or sales material. The kind of content you add will depend on your business and your customer base.

Add an Internet Resources Page to Your Site. Your site is rarely going to be a one-stop resource for users in itself. Think of other categories that would interest your audience and find quality sites that offer information on that topic.

Promote Your Site. To achieve maximum visibility for your site, be sure to include your web address on business cards, letterhead, sales brochures, flyers and newspaper ads.

Communicate with Prospects and Customers via e-mail. The most effective way to obtain contact information is the promise of a weekly or monthly newsletter with information about new products or services, and tips for using them more effectively.

2003-10-21T20:16:00.000-06:00

Your Business Presence on the Internet - Part 1

Having a presence on the internet is essential for your business in the 21st century. NEBS.com has a few ideas about starting your small business and formulating marketing strategies for the web. Here are some of their suggestions:

One of the first steps to creating your business presence is to determine your online business objectives:

Information - No-frills home page may just provide basic information - for example, a description of what you sell, your business hours, telephone and fax numbers, address and directions

Promotion - Create online sales brochures giving customers good reasons for doing business with you rather than your competitors.

Interactive Communication – To provide online customer service. Going beyond just product promotion, these sites offer e-mail and other interactive features.

E-commerce - Finally, some sites allow customers to transact business directly online with E-commerce applications. Post your catalog online, let customers browse through your product offerings, select what they want, put selected items into an online "shopping carts," and then check out , making payment by credit card.

2003-10-18T13:08:00.000-06:00

Great Branding for Your Business (What's Your Brand?) - Part 2

Creating a brand for your business is very important for the survival of your product or service in the marketplace. NEBS.com has a series of informational articles about starting a small business, and formulating marketing strategies. Here are some of the highlights from the articles:

Steps to help you map out a branding strategy:

Consider the Intangibles. Intangibles, such as the special way you handle customer service, should be a part of your brand.

Make the Brand Match the Business. Know your company. Make sure your brand identity is parallel to your company identity. The connection between a company and its branding should be immediate.

Speak to Your Target Audience. Make sure your brand speaks to your different audiences. Don't leave out potential customers by branding your product or service to one or two customer groups.

Brand for the long term. Don't be short-sighted about your company’s branding! Great branding lasts over a long period of time and its messages don't fade after only a few months.

2003-10-17T17:31:00.000-06:00

Great Branding for Your Business (What's Your Brand?) - Part 1

Creating a brand for your business is very important for the survival of your product or service in the marketplace. NEBS.com has a series of informational articles about starting a small business, and formulating marketing strategies. Here are some of the highlights from the articles:

Branding isn't just about having a catchy slogan or a unique company logo. Those are important, yet even more important is creating a relationship between a brand and a consumer with an aggressive branding strategy.

Creating Character - Image is just as important as your product and service. Image is the reason why a customer is going to do business with you and not a larger competitor. What perception would you like your customers to have of your small business?

Tapping Emotions - The most successful branding is done by businesses that appeal to their customers' emotions. You may be selling a product that is very similar to one of your larger competitors. It's your job to reach out to customers on an emotional level to make them want to buy your product over your competitors.

Connecting to Customers - Customers patronize your store because they get the best quality product and superior customers service. Your customers refuse to go to your competitors because they don't get the attention you give them. And you stress this commitment to quality when you promote or advertise your store. That's good branding - it's an emotional connection between your store and your customers.

2003-10-13T19:31:00.000-06:00

The Public Perception of Small Business

Mr. William Dennis, a Senior Research Fellow for the National Foundation for Independent Business (NFIB) Research Foundation, did a study of how the public views small business in America in 1997. Here are some of the results:

The public thinks that it would be relatively difficult for them to start a successful small business. One in four, give themselves virtually no chance of being able to form a successful small business.

Fifty-three (53) percent believe that the opportunities to form a successful small business will be less in 20 years than they are today. Forty (40) percent feel that they will be greater.

Regarding the small business future, some see increased government interference as the primary threat. Others attribute stiffer competition from large firms as the principal reason for the views.

Over ninety (90) percent of Americans would approve if either a son or a daughter attempted to start a small business. Approval is higher in 1997 than it was in 1986.

A majority of the public (55 percent) feels that small business is the only influence out of the eight other choices evaluated which has "too little" influence. A majority of the public feels that the federal government, big business, and television and movies have "too much" influence.

Seventy-six (76) percent of the public say people usually form businesses because they really want to; Twenty-two (22) percent say it is because they usually have no other choice. Eighty-five (85) percent of small business owners say they form businesses because they really want to.

Eighty-four (84) percent of employed Americans think small business owners work harder than they (non-small business owners) do.

Seventy (70) percent of adult Americans feel that owning a small business is one of the best ways to "get ahead" in this country. Small business owners were also likely to agree.

Three of four members of the public believe that small business owners have more independence and control over their lives than do people who work for others.

Eighty-five (85) percent of the public believe that small business is a positive influence on the way things are going in this country.

Ninety-one (91) percent would approve of a daughter forming her own small business.

Ninety-three (93) percent would approve of a son forming his own small business.

and, a majority of the public correctly recognized small business

as creating most of the new jobs in the country

as more likely to offer a young person his/her first job

as an important source of innovation.

2003-10-09T20:01:00.000-06:00

McKinley County Business Fair

The second annual business fair was held today. The fair was sponsored by a local accounting firm, Newberry & Associates. It was a great fair and there was an excellent turn-out. It had a business2business theme. The fair created a great opportunity for local businesses to create relationships.

The Gallup SBDC had a booth at the fair. I came up with the idea of handing out small business tips to the participants. The idea went well. I have already posted a couple of the business tips and I will post the other tips here in the next few days.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2003-10-08T12:46:00.000-06:00

Quality - The Customer's Perception

The customer is looking to buy the most quality product they can. Your company can improve it's customer's perception of quality in the following ways:

Specialization - Consumers recognize that specialization leads to better products. If you are percieved as a specialist, you will be percieved as having a quality product.

Leadership - Consumers will buy the most well known product because they believe the better product will always win. Become a leader in your market and market your leadership.

Pricing - Don't under-price your product. You can't have "high quality at the lowest price."

Product "look" - Carefully select the name an packaging of your product. Make sure they are appropriate for the quality you want your customers to percieve.

2003-10-07T12:59:00.000-06:00

Brainstorming

Demands on businesses to be creative and entrepreneurial are greater than ever. Brainstorming is a great technique to get new ideas. Here are some basic rules of brainstorming:

Suspend Judgment - Refrain from judging and critiquing the ideas of others as they are articulated and shared.

Record all ideas - Transcribe every candidate solution exactly as it is expressed, however half-baked or far-fetched or ill informed it may seem at first sight.

Encourage "piggy-backing" - Let each idea spontaneously spark further ideas and build on the creativity of others.

Think "out of the box" - Encourage and pursue genuinely "unorthodox" lines of thought.

2003-09-24T05:34:00.000-06:00

I did get on the latest schedule of workshops at the SBDC. I will be providing a workshop to manage credit. Credit is one of the most important things, especially if you have your own business.

Good personal credit is an essential factor if you want to get a loan for your start-up business. Loan officers will generally use your personal credit to determine your business's creditworthiness. Loan officers can quickly access the client's credit history by computer and obtain a credit "score." This score represents the creditworthiness of a person or business as assigned by a software program that makes the evaluation.

Learn more about how you can stay vigilant and act proactively to maintain good credit and repair bad credit.

This is not an SBDC-sanctioned site. The content on this site does not reflect the opinion of the SBDC.

2003-09-16T23:15:00.000-06:00

It is always interesting to learn the ins and outs of the different distribution channels for the products. The infomercial has been on of the most recent channels. From what I understand, infomercials were invented to serve the content-starved cable companies looking to fill their low-rating television slots. Apparantly, they caught on and they can be very popular, notwithstanding how annoying and boring they can be. The Electronic Retailing Association (ERA) is the association that tracks the industry. The ERA has a great overview of the industry and its requirements to market products through direct tv marleting channels. Nice! Now, I need to find the client.

2003-09-15T20:38:00.000-06:00

There are few sites that I have see that have such a comprehensive listing of federal financing opportunities as the

Catalog of Federal Domestic Assistance. I remember when I was working for the USDA, I had colleagues who had joked about making their own positions through grant-writing.

I have heard many people who want to finance their business through a grant. I don't want to have the responsibility of a grant. The grants are for serious programs, for serious needs. In my business, I want to have fun doing what I want to be doing. It is not really an option for my business.

Grants should not be safety nets to train entrepreneurs to run programs and organizations. I would want a grant-funded programs have a responibility to provide efficient and competant service with my tax-funded grants.

2003-08-29T21:51:00.000-06:00

Not really my first post, just a test.