The Future Face of Business

This year my good friend in the printing industry joined the ranks of nearly everyone I know:  he took a pay cut to save his job while his company flounders.  My friend in the auto repair industry reorganized, laid off his high-paid technicians, sold his shops and is now repairing cars in the garage behind his house.  My friend who designs automobile parts lost his job in the declining Midwest auto industry.  Fortunately, he returned to his roots as a design engineer in appliance manufacturing.  My friend in the computer industry hasn’t been so lucky; he is still looking for a job after more than 18 months of being unemployed or underemployed. 

Economists all agree that unemployment is a lag indicator:  it is more a result of where the economy has been than of where it’s going.  But those looking ahead wonder what chance they have to succeed in a declining market.  If that’s what the economy looks like, is there any hope for the entrepreneur wanting to start a new business, when even established companies are dropping like flies?

There is a method to this madness that we call economic recovery.  It may be complicated.  It may be more of an intelligent guess than an actual prediction.  But it is based on history and statistics.  We will recover; but the business world will look different than in did in the last century. 

The U. S. Bureau of Labor Statistics made such a prediction in its report on the “Top 10 Growing and Shrinking Industries” for the next 10 years.  A Marketing Charts article summarizes the report.  The article predicts the decline of U.S. manufacturing, likely a result of more companies outsourcing or moving overseas to cut costs.  It verifies, too, the aging population that demands more health care.  It also demonstrates the rise of high-tech industries, resulting in less demand for printed material and wired telecommunications.  A case-in-point:   the highly industrial cut-and-sew apparel manufacturing industry is expected to experience the highest overall percentage decline (57%).  It, too, has moved overseas, where labor costs are a fraction of what they are in the U.S.  Newspaper publishing will decline 25%, being replaced by the highly flexible, economical, Internet-based media.

The top 10 industries expected to experience the steepest employment declines:

1. Department stores
2. Semiconductor and other electronic component manufacturing
3. Motor vehicle parts manufacturing
4. Postal service
5. Printing and related support activities
6. Cut and sew apparel manufacturing
7. Newspaper publishers
8. Support activities for mining
9. Gasoline stations
10. Wired telecommunications carriers

The report also lists the top 10 growth industries:

1. Management, scientific and technical consulting services
2. Offices of physicians
3. Computer systems design and related services
4. Other general merchandise stores
5. Employment services
6. Local government, excluding education and hospitals
7. Home health care services
8. Services for the elderly and persons with disabilities
9. Nursing care facilities
10. Full-service restaurants

What does this mean for those entering the business market?  Success might just come to those who are looking more to fill a consumer need than to fulfill a personal dream.   The business winners in the next ten years will be the truly innovative, forward-looking, but pragmatic entrepreneur.  Don’t lose heart; for the budding business-owner that is willing to do the research and the hard work, there is still room at the top.

Sue. A. Evans

Recession-Proofing Your Business

850, Northwest Florida’s hot new business periodical, gives some valuable ideas for sustaining your business during tough economic times.  Highlighting several entrepreneurs that are finding success during an economy that is taking its toll on even the most stable players, the article focuses on methods that work in EVERY market.  The article, “Recession-Proof Ingenuity,” follows five area business owners as they work to build their business using a few tried-and-true techniques, as well as new approaches.  The capstone of the article is this list of no-nonsense hints to help you, too, thrive in difficult times:

Don’t Just Survive, Thrive!:  Tips for Small Business Owners During the Recession

• Ramp up your business development. Visibility, credibility, profitability. Get out there and keep hunting for business.
• Get clear on your niche markets. Don’t just assume because you have a business people will buy from you. You must define the markets you service and get in front of them consistently.
• Form strategic alliances. Who sells complementary products or services to your market? Look for ways to align yourselves to add value to your market.
• Build champions. Champions are people who know what you do, the type of client you service and refer business to you on a regular basis.
• Get creative. Use social media such as blogging and podcasts or social networking sites like LinkedIn, Facebook and Twitter to build strong networks in exchange only for your time.
• Check your mindset. Are you buying in to the fear or rising above it? There is a lot of low hanging fruit out there if you’re prepared to weather the storm.
• Use measurement tools to manage your business development. Sales funnels and profit models are great to keep you on track to reach your goals.
• Shed dead weight. If you have to let staff go because they don’t fit the business model, or you need to move away from colleagues who are getting dragged in to the ‘doom and gloom,’ do whatever you have to do to surround yourself with positive, opportunistic, hard-working people.
• Systemize all areas of the business that you can. Take all the guess work out of your business development. Use seamless, consistent processes that are measureable.
• Use your financial statements to assess the health of your business. Review them at least once a month.

Tips courtesy Heather White, ghost adviser for Ghost CEO

Sue A. Evans

Creating a Website For Your Company, Part 3: Can I Build My Own Website?

This month we’re interviewing Hannah Evans, freelance web designer and contributor to last month’s article. 

Hannah, I know you do web design, so give us a little advice:  When is it appropriate for a business owner to design their own website?

Most websites are designed by using advanced programs such as Adobe Photoshop and Dreamweaver, or Microsoft FrontPage. If you have a good handle on how design, html, and css works, than you can handle designing your own website–but most people leave that to the experts.

(Note:  if you are still interested in designing your site from scratch, check out the article, “Introduction to Web Design.”)

You can also purchase website templates (both html and flash) online, but again – you will either need to know how to make personalized edits yourself, or hire someone to help you out.  Some web services can help you set up your site completely online without outside help.

Ok, well, assuming I don’t want to learn advanced web design, and just want to use a web service, first, how do I find one?

There are both free and paid web building services online. The difference will be in how many extra features are made available for your use. For example, Google Web Page Creator is free and functions well for posting a clean site that is information heavy, but isn’t very visually interesting.  Network Solutions is a monthly paid service that offers a variety of stylish layouts and more advanced features. Do a basic web search for “website builder” and decide which builder works best for your current needs.

So if I decide to go ahead with using a web building service, will I get a decent value?  Or will I be just wasting my money?

If you’re worried about your budget at this point, try a free website builder to at least get your business name out in the web world. Start small and build up gradually as you discover how useful your web presence is.  Consider your audience – if most of your potential customers are web savvy, you may want to spend some money to create a relevant and stylish site.  If you just want basic contact information accessible, a free site may be a better option.

Thanks again, Hannah, for getting us starting in designing our own website.  For more information about getting your business on the web, the BIC website has a number of articles on Building and Running a Website.  

Sue A. Evans

Creating a Website for Your Company, Part 2: Website Planning for a Site that Sizzles

Well, if last month’s article convinced you to build a website for your company, this month’s article is going to get you started!  Building a quality website that represents your business well takes thought and planning.  Hannah Evans, a freelance web designer, has a few suggestions:

 Before you meet with a web designer, think about the following:

•  Who are you trying to reach: young or old, businesses or consumers, etc.
• How much do you want to spend?
• What do you need your website to do?  Does it need to simply convey information, or are you looking to build an on-line store?
• What is the “culture” of your business, and how can the graphics on the web page represent that?

When you’ve answered these questions, get online and look at a number of websites in your industry.  Make a note (copying the URL of the site) of things you like and don’t like about those sites.  If you are particularly attracted to a site, what is it that attracts you?  The colors?  The simplicity? The flashy extras?  Be prepared to pass this information on to your web designer.

Finally, decide on a timeline for completion of the site.  Is there an event that will require the site to be finished by a certain time?  If not, then realize a single page can be online in as little as a week, but a multi-layer website with purchasing capabilities can take months.  Likewise, a simple one-page site can cost a few hundred dollars or less; a complicated site can cost thousands.   Know your timeline and check some prices before you make unreasonable demands of your web designer! 

 I hope Hannah’s advice will get you on the right track.  Next month:  “Can I build my own website?”

Sue A. Evans

Creating a Website for your company; Part 1: Why?

Last week I needed to find a company that sells cash registers, now confusingly referred to as POS (Point of Sale) devices.  Amazingly, the POS company that was located closest to me did not have a website.  I am surprised to find how often businesses and community organizations are not represented on the web, even at the least with those free web pages provided by telephone service companies. 

Does your business have a website?  I hope so!  But if not, you are in good company.  Recent research by Watershed and Nielsen reports that less than 44% of small businesses have a web site.   It may be difficult for you to see the reason for creating a website, especially if you aren’t particularly computer savvy.  If, in fact, it takes a whole support staff to get you on your computer every day, it’s hard to imagine why you would consider spending your money on a billboard in cyberspace.

 But, believe it or not, most of the rest of the world is using their computer to search for almost everything they buy.  Considering that 63% of consumers turn to the Internet first when searching for local companies, you may be missing out on a lot of business.  The Internet is a versatile search tool, providing users with the ability to search for and find products at the click of a mouse…even easier than ‘letting your fingers do the walking through the yellow pages’ as consumers did in the 1970’s and 80’s.

Early website design was prohibitively expensive, costing a business or organization thousands of dollars for a site that looked like a page from a tool catalog.  Today’s web designers can work for companies anywhere in the world, providing custom-designed sites for hundreds, not thousands of dollars.  Websites can do as little as show shoppers where to find a product or can do as much as allow them to purchase the product on-line and have it delivered to their door.  What you do with your company website is up to you.  What is important is that you take advantage of this valuable, cost-effective marketing tool that will, at the least, help your customers find you.  Who knows?  A website may be just the boost your business needs to make you an equal player in today’s technology- driven market.

Sue A. Evans

Note:  

Don’t miss Part 2 next month:   Website Planning for a Site that Sizzles.

Stimulus Money for Small Businesses? We Hope So!

Business owners are waiting with bated breath to see if any of the stimulus money actually goes to help stimulate the economy in the place where many believe the economy begins:  small business.  The business owners I know personally are calling me and saying, “We’re dying here.  Is there any emergency money available yet?”  The problem seems to be that the money is reserved for those companies that don’t really need it and who don’t really want it.  Struggling companies that portray any degree of risk are pretty much out of luck.  That means if they are a start up (less than two years old) or are financially on shaky ground (like substantially behind on payments) then they are not eligible for the current $35,000 ARC loans.

So who does qualify?  Well, if you have been profitable one of the last three years and are able to demonstrate enough income to make payments AND meet current costs over the next two years, it is likely you qualify.  But banks currently are limited on the number of ARC loans they can extend to their customers.  At a 0% interest rate and with no payments due the first year, however,  this loan is well worth pursuing if you need a boost to make it through this economic crisis.

There is good news, though.  According to the  Washington Post, the government is considering reaching out to small businesses through access to the $700-billion Troubled Asset Relief Program (TARP), originally earmarked for rescuing the banking system. According to the article, the Obama Administration is looking at expanding the 7 (a) program that “helps small companies borrow from banks at low rates to keep their businesses going.”  These loans, differing from conventional SBA 504 loans in that they can be used for working capital, would have fewer restrictions than the ARC loan and “could be used to buy inventory, hold on to employees and pay off short-term debt., increasing credit lines and making more businesses eligible for financing.”  Making these loans more appealing to lenders is the fact that, in the event the business fails, the government would cover most of the losses on the federal loan, possibly as much as 90 per cent.

The article says, too, that proponents of the proposal understand the role of small business in economic recovery.  “Small business is the backbone of American jobs and innovation,” said Matthew Vogel, a White House spokesman. “We are deeply committed to continuing to work every single day to devise and implement policies that will help small businesses through these challenging economic times.”

In a nutshell:  more money available to struggling small businesses?  It is not likely that businesses will see any of the TARP money until fall, but ultimately, we hope so.

Sue A. Evans

Florida PTAC: A Business Cure for Hard Times

A couple weeks ago I sat at a meeting of IT professionals next to a man named Richard.  Richard is an IT specialist who presently works as a civilian for the military.  Richard’s dream is to eventually start his own business, contracting government work.  I will tell you what I told him:  Richard!  You are in a perfect position to go into business for yourself…what is stopping you?  Richard explained that he just doesn’t know how to get started and finds the whole procurement process a bit intimidating.

Down the hall from my office is the office of Laura Subel, Program Manager for Florida PTAC.  PTAC, loosely translated, stands for Office of Doing Business with the Government.  Laura is the one who will lead you down the path.   The Florida PTAC Office educates businesses on what the government requires to be a government supplier of goods or services.  It takes jumping through a few hoops, but considering that the government is one of the few customers buying in this economy, it is well worth it.

Laura has this sage advice to small businesses:  “We don’t care what you call us, just call us!  The acronym we want you to remember is HELP.  The PTAC is here to HELP you do business with the government. “

Laura said that the PTAC (which really stands for Procurement Technical Assistance Center) provides the following services at no charge:

• One-on-one counseling sessions such as Bid/Proposal Preparation, Marketing, and more
• Assistance with 8A and HUBZONE certification applications
• Free access to resources
• Referrals to the HAAS Center for Business Research
• Training Events on related topics

Laura promises that selling to the government can be  easy IF you follow the rules and work with the PTAC office to learn the rules.  They will provide guidance through the maze of rules and procedures.  Just one phone call is separating you from a client who spends over $40 billion a year doing business with small businesses, and who is in the market for every service or product that you can imagine.  Make the call.

Sue A. Evans

Peer-to-peer lending: borrowing and lending for every man

I had the following conversation with Janet Etheridge, Certified Business Analyst at the University of West Florida Small Business Development Center.  The subject:  peer-to-peer lending. Business owners are frantically searching for ways to finance in these lean times.

Sue:  I can see you’re excited about Kiva, Janet!  Tell me more.

Janet:  I was watching the evening news and a story featuring web-based micro-loans caught my attention. As a Certified Business Analyst at the SBDC, I am barraged daily with clients who are in need of funding in some way or another to either keep their businesses afloat, or to start a new business. The news story was about a website called KIVA.org. Their tag line is “Loans That Save Lives”.

Sue:  Considering business loans are few and far between right now, I can see that would stir interest in the business community!

Janet:  Kiva’s mission is to connect people through lending for the sake of alleviating poverty in the world. This website is the first ever person-to-person micro-lending entity, empowering individuals to lend directly to unique entrepreneurs around the globe.

The people are real. They are screened through the KIVA network of partners for qualification and then their story is posted on the website. People can view and choose whomever they would like to lend to as little as $25. The terms of the loan are up to a year, and repayment is at a 98% rate. Wow! This is a really neat example of how innovative we can be in times of huge financial crisis and it shows that socially-minded people are out there making a difference $25 at a time.

Sue:  Janet, this is exciting!  Even I can be a venture capitalist with Kiva!  Thanks, Janet, for the insight.

Sue A. Evans

Making your voice heard: The Florida Office of the Small Business Advocate

The rewards of entrepreneurship are great; in this current economy many people who have never considered running their own businesses are doing so. As much as the State of Florida is encouraging entrepreneurship and thus promoting economic development, sometimes the regulations that help protect the citizens, the environment, or special interest groups create undue hardships on small businesses.

Well, now you have someone to go to when you feel the state has enacted a regulation that makes it hard for you to do business. Last year the state approved funding for a new office which will look at bills and regulations that affect small businesses in the state and make recommendations to the state legislature. The Florida Office of the Small Business Advocate (FOSBA) is a program of the Florida Small Business Development Center (SBDC) Network, and is co-located with the state SBDC office in Pensacola.

The bill that established the office also established the Florida Small Business Regulatory Advisory Council (SBRAC) to hear complaints submitted by the FOSBA and make recommendations to the Governor. The nine-member council, appointed by the Governor, Speaker of the House and President of the senate, are current or former small business owners and meet regularly to review any laws under question.

What should you do, then, to make a complaint? Write a letter to the FOSBA, incorporating the following information:

• The bill (or current regulation), including the bill number
• How the bill impacts your business
• How many other businesses, in your estimation, the bill impacts
• What the impact will be on the state of Florida, in dollars and cents, if the bill remains in effect

If it sounds like you have to do your homework to have your voice heard, you’re right. The new FOSBA office has a skeleton staff and currently can only review information that is well presented and complete. You may have to contact your state industry association (Click here for a link to a live Yahoo list of trade associations) to get the information or make the contacts you need; but you can rest assured that, at the least, every legitimate complaint will be presented for review.

Sue A. Evans

Catch the Vision, Part 3

“We raise our kids here, love living here, and then feel we have to send them away to get a real job.”  This is the sentiment of John Peacock in a Blab TV interview about Escambia All for One (http://escambiaallforone.com/).  Escambia All for One is a citizen-led effort to create a unified government in the Pensacola Metropolitan Area.  According to Peacock, unifying the city and county would create a community that will rank 65^th in the nation in population size.  The purpose?  This community already exists and acts as a single community.  But some citizens complain that the government process here is hampered by the bureaucracy of the government system of each local jurisdiction.  According to supporters, not only will the unification streamline the government process to help get things done quickly and save taxpayer dollars, but can also help the community attract state and federal monies for the purpose of economic development.

Peacock continued, “When other leaders of major cities come here, they say, ‘You guys are willfully poor.’”  Although the large city mayors lament over their wish to have the undeveloped waterfront that we have here, they say they couldn’t make the progress that they have made in their cities (Charleston, Jacksonville) with our present form of government.

Supporters of the effort said that a unified government gives local citizens an opportunity to not only get involved but to make their vote count for change.  Read more about the Escambia All for One project and decide for yourself.  A few concerned citizens are making an effort to improve our community; let’s follow their lead.

Sue A. Evans