SmallBiz-Info

The Power of Partnerships for Green Initiatives

2010-01-18T04:11:00.000-08:00

There's power in numbers. Partnerships allow you to accomplish more together than you could ever do on your own. This is especially true for small businesses with limited staff, resources, and time. When it comes to sustainability, becoming partners with other companies up and down your supply chain can help your small business achieve its goals more quickly.
Here are a few suggestions to get started:

1. Expand your view. Look up and down your supply chain to see where you can come together

to advance both your goals.
2. Communicate your objectives. Understand your environmental footprint and impact and

make it clear where you are focused on making changes to reduce that impact. Ask for help

and offer to help. Voicing your objectives is the best avenue to finding mutually beneficial

partnerships.
3. Leverage the knowledge. Look to others for their expertise and for ways to put that expertise

to work for your business. Likewise, look at what expertise your organization can offer that

could help others advance their sustainability goals.
Article taken from : http://www.businessweek.com/smallbiz/tips/

Patty Calkins

Vice-President for Environment, Health, and Safety

Xerox

Norwalk, Conn.

How to Make Going Green Everybody's Business

2010-01-18T04:07:00.000-08:00

Small businesses are accustomed to coming together and doing whatever it takes to get the job done. As more and more small businesses work to become energy smart and preserve natural resources, looking to their employee base to help implement change is an obvious starting place.
Here are several ways you can get every employee to help make your small business greener:

1. Have them turn off their computers when they're not in use.
2. Ask them to set their computer monitors to low-power mode after 10 minutes of non-use.
3. Encourage them to turn off the lights and office appliances when they are not needed.
4. Have them wear comfortable, seasonal clothing appropriate for changes in building

temperature.
5. Ask them to share other energy savings ideas with their co-workers.

Article taken from : http://www.businessweek.com/smallbiz/tips/

Patty Calkins

Vice-President for Environment, Health, and Safety

XeroxNorwalk, Conn.

Build a "Green Team" for Your Business

2010-01-18T04:02:00.001-08:00

One of the best ways to get initiatives off the ground that are meant to benefit the environment is to empower your employees to lead the charge. You can harness the energy of your workforce to create a green team, a management-supported and self-empowered group of individuals who share a common goal of educating, supporting, and seeking changes that will reduce your environmental footprint—things that align with your company's sustainability goals and enable environmental improvements and cost savings or productivity improvements through their everyday practices.

Green teams can gain support and build momentum within your company. Start with these five simple steps:
1. Select a leader. This person should be committed to the program, passionate, and willing to

manage others.
2.Seek management support. Getting buy-in from the boss and setting a tone from top

management will ensure the team has access to the information and resources needed to

succeed. More importantly, it'll help make sure the team's efforts are forwarding the overall

goals of your company.
3. Recruit a small number of green team members. Send an open invitation or target people who

are outwardly enthusiastic about the program and able to commit time to help spearhead the

effort. Limit the number of green team members. Anything more than eight people might get

bureaucratic and make it hard to gain consensus on important decisions and courses of action.
4. Share roles and expectations early. Be sure everyone is in sync with the company's green

mission and the requirements to get there.
5. Set goals and measure results. Plan the next 12 months. Determine what you'll track in terms

of progress made. Start with low-hanging fruit, or easily attainable goals. The best way to

foster success is to demonstrate success early on, and usually the momentum will build from

there. Share your results with the larger community—the entire office, an extended group, or

the whole company. Your idea might become a program or process adopted by the entire

company.

Article taken from : http://www.businessweek.com/smallbiz/tips/

Patty Calkins

Vice-President for Environment, Health, and Safety

XeroxNorwalk, Conn.

The Time for Succession Planning was Yesterday

2010-01-03T06:59:00.000-08:00

Ever wonder why so many small businesses never survive the owner's death? Entrepreneurs often get so involved in day-to-day management of their baby that they never contemplate what would happen if they were no longer around. Planning for succession is a critical strategy for business owners who want to leave not only a lasting legacy for their years of hard work, but also financial security for themselves and their loved ones.

The key, of course, is to begin the succession process well before retirement is contemplated. It takes time to determine if the kids have the capability or desire to take over the family business—or if a key employee shares the vision and ethics the founder inspired. And it most certainly takes time to install a funding strategy that can provide the resources necessary to compensate the owner adequately when he or she is ready to sell.

Structuring a proper succession plan takes considerable thought, which is another reason why so many small business owners procrastinate. Does your plan address a catastrophic event, like the sudden death or long-term disability of the owner? Continuity planning is a key component to any sound succession plan. Does it provide a written formula for adequately valuing a business that would pass IRS scrutiny? Is a buy-sell agreement in place to lay out the parameters of any transition, and are all parties aware of the tax ramifications? If children are involved in taking over the business, how does the owner equitably deal with those kids who can't or don't want to be part of the business?

Like most things in life, there's no quick fix when it comes to an effective succession plan. So if you want to maximize the legacy your business leaves behind, the time to start planning was yesterday.

Article taken from : http://www.businessweek.com/smallbiz/tips/
Greg Merlino
President and Founder
Ameriway Financial Services
Voorhees, N.J.

Why Product Demonstrations Matter

2009-12-27T04:16:00.000-08:00

A key element in selling your product or service is demonstrating its capabilities. Potential customers expect company representatives to understand and know how to use the product and be able to show them how it works. Clients will also expect a company representative to be able to answer questions about the product and talk intelligently about its key differentiators, especially when compared with a competitor's product.

Unfortunately this expectation is not always met, as more often than not company representatives are ill-equipped and uneducated in terms of how to demo their own product. This inability will kill a deal quicker than just about any other individual or corporate weakness.
I've found that by following a few simple guidelines, a business can be prepared to really wow a potential customer and blow them out of the water with how cool its product is. I've listed these tips below.

1. Prior to selling the product to a customer, make sure the product development team is meeting with the entire company to provide an explanation and demo. Make them satisfy each individual in the company's curiosity and answer each team member's questions.

2. Develop a simple Frequently Asked Questions document that everybody in the company can have access to and use as a ready reference. Make sure to update this FAQ regularly as new questions come up.

3. Make sure everybody in the organization has practiced demonstrating the product and is comfortable doing so on a minute's notice. Advise your team to speak out loud when they practice, as that provides a completely different perspective on how their presentations sound.

4. Advise the team not to guess if they don't know the answer to a question. Nothing is wrong with telling potential customers you want to provide them with accurate information. They'll appreciate the honesty as well as the fact that you place a high level of importance on providing the right information.

5. If you a need to follow up with an answer, make sure to do it in the time frame specified. In addition, following up with an answer provides another reason to make contact after the initial demo. Doing it within the specified time frame demonstrates to the client a high level of professionalism and commitment.

6. When demonstrating the product, have your team explain the steps they're going through and why. They should point out features and specific reasons why the product is designed the way it is. Often a client may not know that certain features are cool or answer a specific need unless told so.

7. Don't be afraid to let clients try the products themselves. If they choose to do so, be ready to answer their questions and walk them through the right way to work the product.
A product demo sounds simple but is a critical process in closing a sales deal. If done properly, your company's chance of closing the deal increases exponentially. On the flip side, if not taken seriously, you can kiss the sale goodbye.

Article taken from : http://www.businessweek.com/smallbiz/tips/
Steve Jones

General Manager and Vice-President of the Codec

Sys DivisionBroadcast International

Salt Lake City

Put an Information Management Policy in Place

2009-12-18T01:24:00.000-08:00

Effectively using technology to implement an information management and archiving strategy is imperative to the efficiency and overall well-being of your small business. Not only can such solutions dramatically reduce storage costs and increase control of and visibility into information, but they can also reduce server procurement and administration costs and provide a means of cost-effective information retention and compliance.

Step 1: Create an information governance policy. Good information governance integrates business objectives with information management policies to address corporate mandates, regulatory compliance, electronic discovery, and privacy requirements throughout the life cycle of information. By ensuring that information is managed (archived, deleted, etc.) according to business value and policy, companies can improve business operations, gain a greater return on investment, and assume a competitive advantage.

Step 2: Find the right technology. An information governance strategy is most effective when policies can be carried forward consistently with enabling technologies. According to a recent study by AIIM, 54% of organizations with more than 10 employees have yet to implement e-mail management and 46% rely on basic mail-server functionality. Today, e-mail management and archiving technologies can be implemented as a standalone system or as part of a companywide enterprise content management or records management solution. Whichever you choose, be sure to find a technology solution that addresses your pain points today, while being flexible enough to address future requirements and help your information work for you.

Article taken from : http://www.businessweek.com/smallbiz/tips/
Whitney Tidmarsh
Chief Marketing Officer for Content Management & Archiving
EMCHopkinton, Mass.

Security Evaluation of Remote Users

2009-12-16T06:10:00.000-08:00

Laptops are now the norm—making your risk of data loss significant even with the best of security intentions. Therefore, it makes sense to periodically review your security measures for remote users, taking steps to ensure that you are doing everything possible to secure your network from your greatest threat—your own users. Here are a few security measures to get you started:
1. Require that all remote users outside your perimeter firewall connect using a virtual private network.
2. Require all employees to use an antivirus solution on their laptop. This policy is easier to implement if you have issued company laptops. You should also maintain a written corporate policy that requires all remote users to verify that they are using AV/AS software on their personal hardware. Many AV vendors offer considerable discounts on software purchased through the employer for the home-user employee. Ask your AV vendor if it offers such a program.
3. Ensure that all laptops are regularly patched and updated. Many companies use patch and remediation software to ensure that their devices are frequently patched. In the long run, managed automation in the deployment of patches is really the best approach so you can carefully test patches before deployment.
4. Require that users change their passwords on a regular basis. We know it's a tedious task, but it's one step that will help increase your network's level of security.
5. Create/maintain a remote-access usage policy and set clear expectations. The remote usage policy should outline patching expectations of personal hardware and specify applications that are off limits when connected to the network.

Articles taken from : http://www.businessweek.com/smallbiz/tips/

Jeff Hughes
Director of Solutions Marketing
Lumension
Scottsdale, Ariz.

Establish a Telecommuting Policy

2009-12-11T17:24:00.000-08:00

More than 25% of small businesses use telecommuting. And while there are clear benefits to telecommuting, it's not necessarily right for every business. If you are thinking of establishing a telecommuting policy for your business, you should consider the following questions:

1. Does telecommuting help you achieve your operational business goals? Telecommuting can help reduce operational costs and improve employee productivity. Additionally, it allows businesses to expand employee searches beyond immediate geographical confines to find the most appropriate set of skills for each job.

2. Does telecommuting fit into your corporate values? Telecommuting can be used to help employees achieve work-life balance and, in some studies, even improves employee health by reducing the commuting-related stresses. For some businesses, it is also a way to reduce their carbon footprint.

3. Do you have the infrastructure to support telecommuters? For telecommuting to be successful, employees need access to the applications and files that are critical to their jobs. And they need access that mimics their experience in the office. Without the ability to provide that rapid access, the telecommuting experience will be unpleasant for employees. Additionally, businesses need to be able to protect their telecommuting employees from Web-based threats when they are outside the secured corporate network.

By answering the above questions, you will have a solid understanding of the benefits telecommuting could bring and whether it makes sense for your business.

Article taken from : http://www.businessweek.com/smallbiz/tips/

Dave Asprey

Vice-President for Technology

Blue Coat Systems

Sunnyvale, Calif.

Go Global to Increase Sales

2009-12-05T18:31:00.000-08:00

Companies are looking overseas to tap into global trade for a number of reasons. Among these are avoiding the risks associated with focusing on a single market, capitalizing on new growth in emerging markets, and taking advantage of lower foreign costs as compared with domestic costs. If you are thinking of going global, consider the following tips:

1. Determine appropriate targets. Focus on one country at first. After things are happening there, then move to the next hot spot. Don't try and expand internationally too fast as some businesses make the mistake of spreading themselves too thin in their global expansion.

2. Make friends with the locals. Determine whether there are individuals and companies who you can align with to help pave the road ahead. Each market is different in regards to business culture. For example, what works in Japan may not necessarily work in the Philippines.

3. Leverage local currencies to drive the cash. Leverage the appropriate foreign exchange (FX) strategies that can take advantage of currency fluctuations. Don't view FX strategies as an operation function. When businesses simply look at FX as an operations function, often international transactions get treated by the accounts payable or accounts receivables department as just another payment that needs to be processed. This is dangerous as the foreign currency markets are volatile and if exposure is not actively managed, it can have a negative consequence for your firm.

Though your company may have many reasons to go global, the main motivation is usually to make more money. If your global business strategy is implemented properly, the benefits can be yours for the taking.

Article taken from : www.businessweek.com

Ryan Gibbons
Managing Partner
GPS Capital Markets
Salt Lake City

How to Repel Customers from Your Web Site

2009-12-05T18:26:00.000-08:00

Having an online presence is imperative for small businesses to both attract and retain customers. But if you don't pay close attention to the design and upkeep of your site, you may end up repelling, rather than attracting, new customers. Here's how:

1. Hide your site. Sure, you've built your Web site, but let's make sure no one finds it! Not listing your business and site with GoogleMaps, Yahoo Local, and many others will make sure local customers can't find you.

2. Don't rush it. A Web site load time of 30 seconds or more leaves your customers wanting more. You don't want them to think you're desperate by providing too much content too quickly, do you?

3. Bury the treasure. Your customers come to your Web site seeking information on your company and products or services—make them hunt for it! Simple navigation and a clean layout makes it way too easy on them.

4. More is better. Clutter your Web site with pictures and lots of different colors and designs. Don't bother thinking about what kind of image you want to project or how you want your company brand to be perceived. It's not like your Web site will ever be the first impression you make on a customer.

5. Be shy. So what if you have something that customers want—make it difficult for them to purchase items or contact you. Making it easy to engage with your business and site with an obvious shopping cart button or an easily accessible phone number would turns lookers into customers.

6. Keep it stale. I know, getting your Web site up and running alone is a huge accomplishment. So updating it on a regular basis with your latest deals or new menu items to keep customers coming back is just too much to ask. Besides, fresh, relevant content will keep search engines interested in your site... and we know where that leads.

As you can see, repelling customers is easy—it's keeping them coming back to your Web site that is more challenging. Here are the top three ways to use your Web site to keep customers engaged and excited about your business:
1. Keep customers engaged. Make your Web site speak with them and not at them.

2. Get your Web site out there. Search engine listings like GoogleMaps and Yahoo Local, optimization, and advertising help make sure you are reaching the right customers.

3. Make it special. Give your customers content, coupons, and information that they can't get anywhere else.

Article taken from www.businessweek.com

Angus Thomson
Vice-President and General Manager,
Grow Your Business Division
IntuitMountain View, Calif.

Social Media: Listening is Not Enough

2009-11-30T04:51:00.000-08:00

Small businesses can gain tremendous branding and sales benefits from launching social media marketing programs—and it's not even that hard or costly. After all, the first step to get in on the social media game is to launch a Facebook page and a Twitter account, and maybe a company blog, right? The only problem is, many small businesses stop there. They get on Facebook and Twitter, then monitor the conversations taking place either just by looking at the posts and tweets, or by using a free buzz tracking tool to get an overall picture of what customers think of their brand, products, or services.

But, unfortunately, to gain real value from the social channel, companies don't just need to listen, but also to act. Use social media measurement tools to find out exactly what people are saying about your products and services, who is sharing this information with whom, and what impact this word-of-mouth traffic is having on bottom-line sales. You need to measure your social media marketing program with the same precision as you do your paid media programs—finding out with certainty which social media content is driving sales. Then, you can nurture those conversations, create new content, and target key influencers to drive a continued boost in sales.

Article taken from: http://www.businessweek.com/smallbiz/tips/

Ben Straley

CEOMeteor Solutions

Seattle

Launch an Online Contest

2009-11-26T23:32:00.000-08:00

Your business may already have a Facebook Page or a Twitter account. Perhaps you've even posted some videos to YouTube and launched a company blog. But few small businesses have experimented with another social marketing strategy: contests. Launching a contest online can be fairly simple—and cost you only your time. The best contests are fun, exchange value for participation (such as a gift certificate or discount), and can result in positive reviews, new customer leads, or other beneficial content for your company.

1. Make it easy to participate. Consider a customer review contest, where you invite people to create written or video reviews of your products or services and post them to a YouTube channel you create. If you have an established Twitter account with a solid follower base, consider running the contest via Twitter and inviting retweets. Or invite them to create a new logo or jingle for your company and share them through a Facebook page.

2. Promote your contest. If you have a retail site, invite visitors to participate via signs, send an email to your customer list explaining the contest, promote the contest on your Web site, blog, Twitter account, and Facebook page. Clearly explain the rules and communicate the incentive. [Note: Some states have sweepstakes and give-away promotion rules which must be followed if something of value is being given away free.]

3. Measure the results. Identify the winner, and reward the prize, but also follow up with all participants to thank them for their participation and ideally provide them all with a special gift, discount, or public recognition.

Clay McDanielCo-Founder and principal

Spring Creek GroupSeattle

Cultivate a Culture of Innovation

2009-11-26T23:29:00.000-08:00

Innovate. Innovation. Innovative. These words get thrown around a lot these days. As far as our organization's self-image is concerned, we'd all like to think of ourselves as innovative. After all, it implies a progressive, forward-thinking view of the world and a willingness to challenge the status quo and embrace evolution (and the occasional revolution).

Reality, however, often tells a different story. While it's convenient to tack on the word "innovative" to our marketing materials, actually cultivating a culture and value system of innovation is easier said than done. Every company with even a semblance of success faces a harsh reality: the gravitational pull of success tends to make us change less and not more. Oddly, companies often need to be in serious trouble to start to think innovatively.

What can you do to cultivate and spawn innovation within your company? There are many approaches, but one is deceptively obvious: put in place and institutionalize real mechanisms for cultivating, measuring, and rewarding innovation. Innovation is an amorphous, easily-abused concept. By laying down real avenues for sharing, discussing, and recognizing ideas, your company can elevate innovation from catchphrase to a bona-fide company trait.
Rich Ziade

PartnerArc90
New York

Sijori Resort Batam is Natural Beauty of Indonesia

2009-11-26T23:13:00.000-08:00

Just south of Singapore lies the perfect Balinese-style retreat. The Sijori Resort Batam, with its spacious, private hillside chalets overlooking lush, sprawling gardens, captures a distinct environment where the culture, history, and natural beauty of Indonesia all come together. Only 20 minutes away by car from downtown Nagoya, the hotel is only 30 minutes from the Hang Nadim International Airport, 10 minutes away from the Waterfront International Ferry Terminal and 5 minutes away Sekupang Ferry Terminal, guests at this Batam resort are afforded the convenience of being ideally located while enjoying all the benefits of an idyllic seaside retreat.

Batam accommodations are unrivalled at the Sijori. This Batam resort boasts of 30 rooms spread over a five-block radius, that are suitable for both leisure and business travelers. Guests are afforded the luxury of spacious, tastefully designed interiors that serve as the perfect location to relax and unwind after a long, tiring day.Facilities at this prime Batam resort are unrivalled, with its comprehensive range of amenities and facilities that cater to businessmen, families, and leisure lovers. Businessmen will find that our function rooms and business centre will have whatever they require, while those traveling for leisure can enjoy the wide array of facilities and attractions that the Sijori Resort Batam has laid in place.
For more information pls visit http://www.sijoriresort.com.sg.

Measure Current Performance

2009-11-22T02:45:00.000-08:00

In today’s tough economy, every dollar counts. Yet do you know how your business is really performing? How your company might compare to the norms for your industry?

Many entrepreneurs tend to operate by instinct, with no measurements in place. Establishing productivity standards, with performance metrics by product group and by customer, is a first step to track actual performance. To get started, you should evaluate every client account and define the minimal number of distinct tasks it takes to service the business. The key to being effective is not to get caught in creating too many tasks. Even with highly complex operations, the task count should be as small as possible.

Through observation and logs, you can determine over a two-week period the actual time and labor it takes to complete the total tasks. Your current average productivity measurements could be represented as units per man-hour.

The key is to keep it simple. But the creation of performance metrics will help establish predictability and give you better control. You’ll have a way to gauge how well your business is doing today and how you can improve it for the future.

Article taken from : www.businessweek.com
Chris Carey
President
Chris Carey Advisors
New York

The 'ABCs' of Password Management

2009-11-20T03:57:00.000-08:00

Today's typical user has about a dozen systems they need to access with a user name and password. While passwords are an important and almost inevitable part of our everyday lives, they can put your organization at risk of financial and reputational damage if they are mishandled or compromised. Thus, it is important to be careful when choosing a password and logging in. Here are the "ABCs" of password management, with advice on how best to protect yourself when accessing your small business’ information—and your own:

1. Always be confidential. You should never share your password with others, period. Anyone else who has your passwords can impersonate you—accessing information and making transactions without your knowledge and leaving you to deal with the resulting problems. If employees want your password to access a given service, have them contact your IT department and get their own accounts. Nor should you reveal existing passwords when getting computer service; your help desk should be able to change your password for you or log on with its own account. And always be aware of your environment, watching out for ‘shoulder surfers’ who might watch you access your systems.

2. Be current. Make sure the computer you are using is up-to-date with the latest security software from one of today’s main vendors. Be sure, too, that you have an active subscription to updates and have regularly scheduled automatic scans of your system. Antivirus software alone is not enough, so look for a complete client-protection package from the leading vendors, including anti-spyware, anti-malware, host-intrusion prevention, and a desktop firewall. Unless you are properly protected, software can be installed on your system to watch keyboard input and easily steal your passwords without you noticing anything,

3. Consistently break consistency. Don’t use the same password for all systems. If your Gmail password is the same as your Chase Online Banking password, someone who compromises one system would logically and successfully attempt to use that password on all of your other systems. Separate any work passwords from personal banking passwords, and keep these distinct from your personal e-mail and social networking accounts. This limits your risk exposure.

Article taken from : http://www.businessweek.com/
Jared Beck
Senior Security Architect
Dimension Data
New York

Reducing Data Center Power Usage

2009-11-19T03:58:00.000-08:00

IT managers today are looking to curb the energy hogs in their data centers in order to limit spiraling energy costs by reducing power consumption, as well as cut overall environmental impact. Reducing data center power usage is a twofold process—the product of actually reducing power consumption by removing elements from the environment, as well as introducing more efficient components that can handle greater workloads, using the same or less power. To get started, your organization might reduce power usage by retiring older systems and consolidating them onto virtualized platforms. This would enable you to more efficiently pool physical resources and improve network management capabilities. At the onset of consolidation, there is typically an immediate drop in the amount of power used, but the practice of consolidation and virtualization must continue in order to keep the power growth curve moving in the right direction. Occasionally an organization might see a brief rise in power usage when virtualizing for the first time, due to the need to install the new physical servers on which the virtual servers will eventually run. This spike in growth will reverse as older servers are virtualized and their former physical counterparts decommissioned.

Eventually, your organization may return to the same amount of power consumed pre-virtualization. By the time this happens, however, you should be realizing much higher workloads than previously possible, and thus increasing the overall efficiency of data center power usage.

As you look for additional avenues to reduce power consumption, also consider these quick tips:

Monitor the "lifecycle of usefulness" of your power and distribution systems. Inefficient equipment—often seven years old or older—can cause up to 50% of the energy you pay for to be dissipated as heat.
Look for ways to optimize your current cooling strategy, especially for modern, high-density equipment. Consider adopting "in-row" or "in-cabinet" cooling strategies that use less energy in heat removal.
Make sure your data center instrumentation includes sensors that enable you to monitor heat generation, power consumption, and overall cooling effectiveness.

Article taken from : http://www.businessweek.com/smallbiz/tips/

Kris Domich, Principal ConsultantDimension Data, New York

Establish Daily Forecasting

2009-11-19T03:48:00.000-08:00

With just about every business now under pressure to lower prices, it is more important than ever for business owners to know their real costs. What are the daily forecasts for your customers and what will you need to satisfy each order? By developing a system of receiving forecasts and then applying needed labor and materials, you will determine your exact costs each day.

To get started, you should ascertain your next-day activity from your customers. Then determine the number of man-hours required for the next day to meet client demand. In allocating labor, you should have just enough employees to get the job done for each customer without overtime. Add the daily cost of materials needed to complete the work.

At the end of each day, look at the number of tasks actually accomplished and compare it to the actual labor employed. If you see discrepancies in productivity, you can adjust as needed.
This daily forecast will give you a more concrete and accurate picture of your business. It will help you identify ways to save money, boost productivity, improve operations, and ultimately compete more effectively.

Article taken from : http://www.businessweek.com/smallbiz/tips/

Chris Carey

President

Chris Carey AdvisorsNew York

If You're Making Money, Do You Need a Business Plan?

2006-12-17T23:41:00.000-08:00

From AllBusiness.com *
Tom Sherburne
FounderShred Ready
Auburn, Alabama

When Tom Sherburne started manufacturing composite kayaking helmets, he didn't think he needed a business plan. His Auburn, Alabama-based helmet business, Shred Ready, began as an offshoot of his kayaking school, the Southern Outdoors Center, which had done just fine without a business plan since opening its doors in the summer of 1996.

When it came to writing a business plan, "I didn't really feel like I knew what I was doing," Sherburne says. "I thought if we were making money and the checkbook was fine, then we didn't need one."

Sherburne quickly found that he couldn't take the service concept of the kayaking school and apply it to the manufacturing-based operations of Shred Ready. Cash-flow problems were a recurring issue: During the company's first year of business, Sherburne dipped into his personal checking account more than once to help his fledgling company through rough spots.

So in Shred Ready's second year of operations, Sherburne, despite his doubts about the usefulness of or need for a business plan, sat down and wrote one. The plan helped Sherburne immensely, and he has stuck with it ever since. Sherburne says by putting everything in writing he pays closer attention to the company coffers and doesn't have to worry as much about whether he'll have enough money to purchase supplies or complete production.

Now Sherburne says he's not 100 percent sure why Shred Ready didn't have a plan from the start. One possibility: numbers. Sherburne has always avoided running the numbers, even when he was finally sitting down to write the plan. "I avoided the budget parts," he says.

"Things are always changing," he says. "That's the really frustrating thing about a business plan." To address the constant change inherent in running a business, Sherburne said he updates Shred Ready's business plan almost on a weekly basis. While he doesn't change the structure or mission of the company, he tweaks the numbers frequently to adjust for things such as late customer payments or unexpected manufacturing delays.

With a business plan under his belt, Sherburne doesn't have to fly by the seat of his pants that much these days. By doing the numbers, Sherburne says, he's almost eliminated cash-flow problems. He also says he has a much better grasp of what needs to be done when: "I just feel like I know what's going on now.

"-- Kevin Casey

What to Consider Before Choosing a Location

2006-12-17T23:24:00.000-08:00

Choosing the right location for your small business is an important step for success. Here are some things to keep in mind when selecting your spot:

• Find out if local zoning laws permit your kind of business at the site that you desire.

• Make sure the site has adequate public services—such as water and sewer services, trash collection, sufficient drainage, and police and fire protection.

• Determine if there's enough affordable transportation available. Can your employees get to work? If you're a manufacturer, are trucking services available?

• Consider the surrounding community. If you're a high-end retailer, for example, are there sufficient high-income households nearby to support your business?

• Look at the other businesses in the area. Decide whether or not having direct competitors will be helpful.

Ken Yancey

CEOSCORE

Washington, D.C.

Traction: The First Goal When Getting Started

2006-12-09T02:15:00.000-08:00

When starting a new business, the entrepreneur's excitement and energy are often aimed at grand and lofty goals. Often the siren of starting a new company is the potential riches of an IPO or an M&A as well as the independence these potential successes bring to the founders.

This thinking, while bold, is a bit like asking a mountain climber on what part of the summit he intends to plant his flag. I think a better question might be where he intends to start his assault on the mountain and why.

That same practical approach holds true for an entrepreneur starting a new business. New small-business owners should take their product or service and focus on getting traction. So many things start to become clearer when customers actually begin pulling out their wallets.
When that begins to happen, your confidence in yourself and your business begin to take hold and the mountain doesn't seem quite so high anymore.

Bow Rodgers

President and CEOSquareHit TennisPalo Alto, Calif.

When Selling Abroad, Start Slowly

2006-12-09T02:04:00.000-08:00

American companies are aggressive—sometimes too aggressive. Meetings are often brief, to the point, and focused on a particular problem or agenda item.

While this approach may work well back at home, we've found that it is not the way to do business when you go abroad. In places like China and Eastern Europe, expect several dinner meetings before you even begin to start talking about business. People there want to know about you, your family, and your business. They are evaluating you, just as much as your product, to see how trustworthy you are.

Expect sales cycles that are about 50% to 100% longer than what Western companies are accustomed to. I've seen many American companies fall short of their goals because they get disgruntled by the time and money they are putting into making a deal and end up dropping out of the process altogether. Take your time and be patient!

The most important thing to remember is that each country is different. Don't go abroad looking for a one-and-done or a quick sell—it's all about developing long-term relationships. If you stay open-minded, patient, and flexible, you won't be labeled the "ugly Westerner" but the successful one!

Xavier Herve

PresidentMechtronix SystemsMontreal

Family Business Indecision

2006-12-02T20:19:00.000-08:00

Families often put off business decisions such as leadership succession and sale or transfer of ownership. Even when decisions are made, implementation is often slow. But the costs of indecision are enormous: Businesses fail and opportunities are forever lost. Below are five factors that lead to family business indecision to be aware of and address.

1. Families are emotional. People avoid situations that make them feel anxious. Scheduling regular family meetings, using an agenda, and reviewing the undecided issues in a businesslike manner will create a calmer atmosphere.

2. Families are closed systems. Closed systems do not like change. Here are strategies that may invite change: First, ask many questions because questions introduce new information. Second, expand the number of people involved in a decision process because new points of view challenge family members to take action.

3. Families lack clearly defined roles and responsibilities. Specific roles and responsibilities, with tasks spread across generations and feedback required through regular family meetings, help minimize "diffusion of responsibility," where, in the presence of others, people do not feel they must make a decision.

4. Families have emotional imperatives. Decisions may be delayed or abandoned because family loyalties and commitments can hopelessly complicate the task. An effective strategy is to put alternative choices on the table, clarify priorities, and to address costs and benefits one step at a time.

5. Family leaders can have education/skill deficits. Many business owners are faced with important decisions without adequate preparation or education. The final strategy, then, is to ensure that all parties have the information and education necessary to make a decision.

David Lansky, PhD

FounderFamily Business InnovationsHighland Park, Ill.

Five Small Business Grant Resources

2006-12-02T20:09:00.000-08:00

Five Small Business Grant Resources

From AllBusiness.com *
Sometimes even the best business concepts don't come to fruition due to lack of funding. Lending sources may refuse funding for multiple reasons. For example, you could have a strong business plan but can't qualify for traditional bank financing because you lack sufficient collateral. Or maybe you can't come up with a sizable down payment, or your business doesn't have a long enough track record. See How Can You Increase Your Chances of Getting a Business Loan? for more information.

Fortunately, there are grant programs available through government agencies and private organizations. Here are five of the top sources of small business grants:
1. The Small Business Administration. While the SBA does not offer grants to start or expand small businesses, it can help connect you with government resources for business grants. Visit its Federal Grant Resources page for more information.

2. Grants.gov. You can find and apply for more than 900 different grants from 26 government agencies.

3. State economic development agencies. Each state has an agency that administers business grants. Agency names vary by state, but usually the Department of Commerce or Economic Development Agency is responsible for disbursing business grants. About.com has assembled a list of links to these agencies’ Web sites here. Find out about Minority Business Loan Programs.

4. Economic Development Directory. This site hosts an extensive directory of more than 2,000 economic development agencies, consultants, and associations worldwide. Links are constantly being updated, providing access to economic development information for business people, real estate departments, consultants, and brokers.

5. The Foundation Center. This subscription service also offers an extensive amount of free information. It also offers a helpful online orientation to grant seeking, which will take you through the funding research process step by step. The subscription fee entitles you to access its directory of more than 80,000 grant makers.

How to Prepare to Apply for a Small Business Loan

2006-11-22T02:13:00.000-08:00

Before lenders will grant a small business loan, they want to be sure that the loan will be repaid. Every loan is a risk, but banks and brokers want to take as little risk as possible. They look for businesses that show promise, and they award loans to businesses that have solid personal and business backgrounds and are committed to the success of their businesses.

(u)(b)What are the first things the lender will look at? (/u)(/b) The following are the five basic items that all lenders look at before they will approve your business loan:

1. (u)Credit history(/u) One of the primary factors lenders look at is the condition of your personal and business credit. This is generally reflected in your credit score that is obtained from the three credit reporting agencies. Your personal credit score is associated with your Social Security number, but business credit reports are tied to your tax ID number. Before you even start shopping for a loan, request a copy of your credit report from all three major reporting agencies: Equifax, Experian, and TransUnion. Review it carefully and correct any mistakes before you start the application process.

2. (u)Your Investment(/u) Business loan applicants should have a reasonable amount of their own money invested in their business. Lenders want to know that you will be motivated to work hard to make your business a success. When they see that you have invested a substantial amount of your own money in your venture, they will assume that you will work hard to make it a success. The amount of your required investment may vary, but it should be at least 20% of the amount you need for the business venture.

3. (u)Working capital(/u) Working capital consists of your current assets minus your current liabilities. Working capital can also be thought of as cash on hand or what is available to pay current debts and keep your business running. A lack of adequate working capital increases the risk that your business will fail and makes lenders much less likely to approve your loan.

4. (u)Ability to repay(/u) Banks want to see two sources of repayment: (b)cash flow from your business(/b) and a secondary source which is typically (b)collateral(/b). Lenders will look at your past and projected financial statements. They will want to see your personal financial statements, personal tax returns for the past two-three years, business financial statements for the past three years or for three projected years, and accounts receivables and payable aging. If your business has consistently made a profit or you can reasonably project a profit, you are more likely to get approved. If your business has not been consistently profitable, you can increase your chances of getting a loan by including detailed information of new opportunities, new contracts, or other information showing that your company’s future will be profitable.

Most lenders require collateral to secure the loan. Collateral is required for all SBA loans. Collateral can be business assets and personal assets. If you plan to purchase equipment and other assets with borrowed funds, these assets will be used as collateral for the loan. Lenders will also require you to personally guarantee the loan.

5. (u)Experience and character(/u) Lenders will expect you to have experience in the type of business that you plan to run. If you do not have that experience, lenders will expect you to hire people who have experience. Even if you do not have experience in this type of business, you should at least be able to show experience in other businesses and managerial experience.

(u)(b)What documents will lenders require?(/u)(/b) In order to expedite the process, the following four documents should be available for the lender to review:

1. (u)Business plan(/u) A business plan is particularly important for new businesses, as they lack a track record for lenders to review. Your plan should convey all important facts about your business in a concise manner. A professional business plan will be at least 20 pages long, plus financial projections. The business plan will include:

(b)Balance sheets, Profit and loss statements, and Cash flow projections(/b) from the last three years or for three years’ projections. (b)Accounts receivable and payables aging(/b) breaking your receivables and payables in to 30-, 60-, 90- and past 90-day old categories. (b)Market data(/b) showing demand for your type of business (b)Research on competitors(/b) including their customer base and price points

2.(u)Loan request(/u) This can be included with the business plan and should detail the amount of money requested, how the loan funds will be used, the type of loan, the amount of working capital you have, the collateral that will secure the loan, the personal guarantees of the loan, and how the loan will be repaid.

3.(u)Personal financial statements(/u) You will need to provide personal financial statements for anyone who owns 20 percent or more of the business. The financial statements must include a complete schedule of assets, debts with balances due, payment schedules, maturity dates, and collateral used to secure other loans.

4.(u)Other documents(/u) Lenders may also require articles of incorporation, taxpayer ID number, legal descriptions of real property, leases, equipment inventories with serial numbers, proof of insurance for collateralized items, and letters of intent showing that commercial accounts intend to do business with you.

(u)(b)What is the loan process?(/u)(/b) Some lenders like to prequalify potential borrowers to determine how much they can afford. This also gives you and your lender an opportunity to see which loan program would be most appropriate for your needs. After the lender gathers basic information and your application is received, a loan officer or processor will review your credit reports, the amount of available collateral, and your income.

The loan officer will determine if any additional documentation is required. If you are purchasing real estate, you may also need to submit preliminary environmental reports, area maps, title reports, property appraisals, and lease summaries. Next, your commercial loan package is submitted to the decision makers -- either a loan committee or underwriter. During the underwriting process, you may need to furnish additional documentation.

After the underwriting process, you will receive a letter of intent or term sheet. A letter of intent or term sheet is a formal document intended to put all parties (the lender and your company) on the same page. The letter of intent will include the names of all parties, amount of financing, type of collateral, and other key terms. After all underwriting conditions are satisfied, the final loan package is resubmitted to the loan committee for final approval.

At this point, the lender will issue a final full loan commitment. If your loan is approved, you will receive closing documents and they may be handled by a title company. The title company will record deeds and mortgages, order title insurance, coordinate the exchange of funds, and arrange for you to sign the loan documents. At the closing, the lender funds the loan with a cashier’s check, draft, or electronic wire transfer.

Being prepared and organized can save time and help your loan get approved. Be prepared to have all required information ready to submit if your lender requests it.

Jo Ann Joy, Esq., MBA,
CEO The future of your business starts here!

Thoughtful Decision Making

2006-11-18T18:22:00.000-08:00

Decisions are at the heart of all organizations, and decisions are made by everyone at all levels. Some of these decisions are routine and inconsequential, while others can have a drastic impact on our lives, our work, and the people around us. In this increasingly complex world, the tasks of decision makers are becoming more challenging, perplexing, and just plain nerve-racking.
Research has shown, however, that you can be a better decision maker if you adhere to a structured decision-making process. Some things to consider are:

• What are the options and choices available to me; how might I discover others?

• What are the advantages and disadvantages and short- and long-term effects of the choices I am considering?

• Does this decision allow for appropriate and efficient resource management?

• Who else will be affected by this decision?

• What are the consequences of this decision for me and for others?

• Is this decision consistent with my beliefs and values?

When making a decision, a little attention goes a long way. A good decision is never an accident; it is the result of intention, sincere effort, intelligent direction, and skillful execution.

Mallary Tytel
President and FounderHealthy WorkplacesSioux Falls, S.D.

Are You Doing All You Can for Your Business?

2006-11-18T02:30:00.000-08:00

Internet advertising has mushroomed into a billion-dollar industry, and this means great things for scrappy small-business owners. The rise of new Internet advertising tools and technologies make it possible for small businesses and entrepreneurs to be front and center with potential new customers surfing the Web—without committing to large-scale marketing campaigns. The popularity of local search is also paving the way for small businesses to grow their local customer base—increasing both awareness and the bottom line.

All of this means great things for small businesses, but what else can companies do to increase their growth without expending a lot of capital?
1. Leverage existing assets. Most new businesses and smaller establishments don't have money to burn on mass-marketing campaigns or flashy Web pages. New technologies, like "Pay-Per-Call," help increase a company's presence and utilize the one tool they already have—the phone.

2. Pay for ads that actually deliver. Today's newest online ad systems allow businesses to only pay for an ad after it delivers a solid lead. This helps keep advertising costs low, while maximizing the amount of exposure online.

3. Utilize the Internet to connect live. Consumers are searching online all the time, but sometimes they actually need to speak with someone before they buy. New online advertising methods that put businesses in touch with a live potential customer are becoming more and more popular.

There are many new Internet advertising methods that small businesses can utilize to generate interest and create exposure to their target audience, regardless of how large or small their marketing budget is.

Marc Barach

Chief Marketing OfficerIngenio Inc.

Small-Business Security Options

2006-11-18T02:22:00.000-08:00

Security is a huge concern for businesses of any size. The biggest issue business owners come to me with is reliability. Everybody wants a security solution that allows them to lock down confidential information and ensure that they, and only they, can reliably access it when needed. Biometrics provides solutions that meet both of these needs.

In typical password security systems, if someone gains access to another user's password, he can become that person. If that user then does inappropriate things while posing as the other user, it can create serious problems.

That's where the addition of online-biometric security measures comes in.
With the addition of a fingerprint reader, for example, you can ensure that only authorized users are allowed on the WiFi network. Since every individual's fingerprint is unique and cannot be lost or shared, it is less prone to compromise than a password or PIN code.

Though in the past biometric measures have faced a number of reliability problems due to wet or dry fingers, small fingers, and even narrow fingerprint ridges and valleys, newer technologies are able to read deeper layers of skin so that surface abnormalities don't affect the scan.

Gary Bradt
Vice-President,
Biometrics DivisionSilex Technology AmericaSalt Lake City

For Small-Biz Owners, It's Tough To Let Go

2006-11-18T02:10:00.000-08:00

Expert advice for entrepreneurs contemplating a new life

Small-business owners, many of whom started their companies and nursed them for decades, often have a hard time living the life of a retiree. National Correspondent Mark Morrison spoke with Eric Sundstrom, co-founder of retirement-planning service My Next Phase and professor of psychology at the University of Tennessee, about the special challenges entrepreneurs confront as they near retirement age.

How is an entrepreneur different from a corporate employee in planning for retirement?
The main difference is in ego investment -- psychological involvement in the business. Small-business owners and entrepreneurs are involved and invested and personally identified with their businesses in ways that employees in large companies just aren't.

When should they start thinking about retirement?
It's hard to say when, because they don't feel the same pressure as an employee to retire by a certain age. They make the rules, and they don't have to retire if they don't want to. It's rare for a person to walk away from the business unless they want a child to take over.Otherwise, if they show up on our doorstep for retirement counseling, they are usually being forced to slow down by some kind of physical infirmity or other factor that makes it impossible to keep on doing what they've been doing.

When is the best time to plan an exit strategy?
I don't think you can start too soon. You need to look far forward: "When will I likely not be able to do everything I'm doing now, and who will take my place?"

Can you give us an example of a small-business person who made a successful transition to retirement?
A marketing executive, a member of a retailing family, decided to do a family genealogy. She went about it much the same way as she did her marketing job and replaced her career with a new pursuit that would take a lot of commitment and social engagement. The focus of this work was to satisfy the family's interest in its roots instead of the old focus on satisfying the customer.

And the opposite -- a plan that fails?
In one small food-processing company, the head of sales has envisioned sitting by the lake in a cabin he has built. He's about to flunk retirement because he's leaving a job in which he has contact with people 10 hours a day.I've tried to dissuade him, but this is his dream, and he thinks this is what retirement is.
courtesy : Business Week Online