Mary Popovich

During our feasibility discussion in the ISBDC’s “Launching Your Own Business” workshop, we stress the importance of having buy-in from a spouse or “significant other” when an individual is considering embarking on an entrepreneurial journey. We share with entrepreneurs the reality that if the spouse is not supportive of your idea, there’s a possibility that one big part of your life may fail—either your marriage or your business. Only you can decide if it’s worth taking the risk.

Risk-taking and the resulting consequences involve change, one of the contributing factors of marital stress. Starting a business can drain the family’s bank account, require working long hours away from home, and change your lifestyle when vacations and health insurance are temporarily lost to a start-up business.  Stress can lead to disagreements that can lead to separation and divorce. While there are no statistics tracking business start-ups as a direct cause of divorce, we all know that it can and does happen. Articles have been written about “Why So Many Entrepreneurs Get Divorced” and about “The Link Between Entrepreneurship and Divorce,” making the possibility seem even more real.

COMMUNICATION IS KEY

To better assess the situation and obtain practical suggestions for alleviating potential marital problems related to entrepreneurship, we asked some of our successful ISBDC clients to share memories and lessons learned from their pre-venture and early business days. One client, who prefers to remain anonymous, intimated that he invested most of his family’s retirement savings to become co-owner of a business while his wife was out of state on vacation and without consulting her first. Needless to say, his wife’s initial reaction was not pleasant; but luckily for him, she grew to accept the idea and even helped him out with the business once she got past the initial shock. In looking back, he believes communication is the key to resolving conflicts related to starting or growing a business, pointing out that “Growing a start-up business is a high risk requiring 24/7 attention and time away from the family.” But, he believes you can get through it as long as you, “Keep partners, spouses and others close and involved.” In other words, he recommends that you “Don’t do as I did, but do as I say.”

Other Hoosier entrepreneurs interviewed for this blog say that, unlike some of their friends, they were fortunate to have their spouses’ support when starting their businesses. “My husband was always onboard and positive about starting this business. When I would feel stressed about things or question if this was the right decision, he would motivate me to move forward. A lot of the times we would look at the big picture and the potential (for success) to see us through some difficult questions or situations,” said one entrepreneur whose husband got behind her and even partnered with her on the business after she shared her vision with him. She goes on to say that, “It’s almost impossible for me to imagine having this business on my own. My husband and I are a team and almost always on the same page, when it comes to business decisions.  We complement each other and are equally ready to take risks. We have worked hard and are starting to see the light at the end of the tunnel.”

COMMON PROBLEMS

Even with a supportive spouse or partner, most of the clients interviewed agreed that there are still problems to deal with. Some of the business owners mentioned the lack of health insurance or the high cost of purchasing their own health insurance as causes of distress. “Our health has been shaky due to no health insurance, but that’s not the worst of it,” stated a now-successful businesswoman who confided that she and her husband actually lost their house and their good credit standing due to putting all their personal resources into the business. But in looking back, she now believes it was all worth it, and that if you persevere, things can be made good again.  As her business grows, she said “It’s all turning around.” She noted that her company can now afford health insurance for her family and her employees and that she is working on re-building their credit score—something that will just take time, combined with continued business success—to restore.

In addition to problems related to health insurance (or the lack thereof), other stressors include time management and the great amount of energy required to run a business. One of the business owners mentioned the long hours involved and “sometimes not even taking time to sleep!” A couple of individuals talked about the sacrifices their families made for the good of the business, including skipping  vacations, scaling back on gifts, putting off making major purchases and even “making do” without the essential items from time to time. These sacrifices can create animosity with an unsympathetic spouse, and “the stress definitely trickles down to everyone,” one of the entrepreneurs observed.

SOUND ADVICE

To get down to the heart of the matter, we presented all the interviewed business owners with a hypothetical situation: “If a close friend confided he or she wanted to open a business, but that his or her spouse was not supportive of the idea, what would you recommend?” Not surprisingly, this question produced mixed responses. One businessman said he would advise his friend to go ahead and start the business, but be willing to compromise with the spouse. Another suggested the friend “take the risk (because) it’s worth it if you believe in yourself and your product and have done the research.” And a third entrepreneur advised proceeding with caution: “Starting a business is such a roller coaster—I think it would really doom a relationship without support. I wouldn’t say hang it up, but negotiate the idea and lay out your case.”

A couple of other entrepreneurs, however, were not so encouraging. “I would tell the person not to start the business. . . . My hunch is that if one spouse discourages the other from starting a business, desired support is supplanted by indifference at best and antagonism and sabotage at worst.  When that occurs, the business and the relationship suffer,” said one.  Another pointed out that “Starting a business requires dedication, drive, determination, planning, sacrifice, and money,” and warned that “If you are serious about your marriage and you don’t have both parties on board and supportive, the marriage and/or the business will fail.”

IMPACT ON FAMILY

So, now that you’ve heard both sides of the discussion— the pluses and minuses of starting a business with or without the support of your spouse, how will you make your decision? If you are still confused, you are not alone.  In 2003, Howard E. Aldrich from the Department of Sociology at the University of North Carolina, and Jennifer E. Clift, a member of the business faculty for the University of Alberta in Edmonton, wrote an abstract about The Pervasive Effects of Family on Entrepreneurship. Their contention is that whereas “Families and businesses have often been treated as naturally separate institutions . . . we argue that they are inextricably intertwined,” and they suggest that “entrepreneurship scholars would benefit from a family embeddedness perspective on new venture creation.” They raise some pertinent questions not only about the family’s influence on a start-up business, but also about the impact of new ventures on the family unit.  One of the questions they raise is whether or not “new venture failure or success play(s) a role in family system transitions such as divorce.” They recommend that rigorous studies be undertaken to address these questions; but until then, there are no scholarly answers that we are aware of.

THE DECISION IS YOURS

Which way to go, which way to turn— should you pursue that business dream or hang it up?  We recommend that before you take the plunge to start your business, it may be worth reading a few online articles that offer suggestions on improving the dynamics between the spouse, the family and the entrepreneur:

• Fresh Ideas: 10 Ways to Win Over an Unsupportive Family as a Young Entrepreneur
• Family Support is Paramount
• Your Marriage IS Your Business
• Help! I’m an Entrepreneur and My Family Doesn’t Support Me

Making a decision to start a business is never easy, but it helps to have all the information in front of you so you can make an educated decision. Visit the Indiana Small Business Development Center in your region and enroll in a workshop on “Launching Your Own Business.” Take a look at your available resources and your qualifications to operate the business, and do a lot of soul searching. Evaluate the pluses and minuses of having your own company, write a business plan, and then reach out to your spouse to get his or her feedback and buy-in. Your spouse’s support can mean the difference between success and failure . . . not only in your business, but also in your life.

Mary Popovich is a Business Advisor and Marketing Coordinator for the Northeast ISBDC. Mary can be reached at mpopovich@isbdc.org.

Kathy Davis

Most of the time, the owner in question says something along the lines of “No, its just me. I don’t need that.”

The other common scenario I hear, over and over again, is “I just downloaded my contracts from the internet when I started. Do you think it covers __________?”

With the availability of many online legal services, prepaid legal plans and a number of self-help sites, it’s easy to think that you can do it all yourself. But what if you need a more customized approach? How do you know?

Here are five things a lawyer can tell you, that you might or might not find the right answer to on the Internet:

1. If your corporation or LLC has all of the paperwork and agreements in place to protect you from personal liability for actions of the business
2. If your corporation or LLC is the recommended structure for your business
3. Are your contracts binding in your state?
4. Do your contracts protect or even enhance your cash flow?
5. Are your ideas properly protected?  Or can a competitor sweep in a steal your catchy slogan, graphics, process or technology?

Finding the right person to help you can be daunting. Ask for referrals – from the ISBDC, from your banker, from your real estate agent or leasing agent, from your professional association, from a trusted colleague or mentor.

Decide if you want to work with the lawyer. These are some good questions to ask:

1. How are you going to take care of my case?  

You aren’t looking for a guarantee of an outcome. What you are looking for is a definitive understanding of what your questions and needs are and what the attorney’s plan is to address it.

2. What is the best way to reach you?

Phone? Cell Phone? Email?

3.  Who returns your calls?  How long does it usually take?

This lets you know if you will mainly be talking to an assistant, junior associate or paralegal, or the attorney personally. The time question lets you know if you should expect a call the same business day, or the next, or just within the same week.

4. How do you charge?

You need to know up front on this one: hourly? flat fee? contingency? Is there a retainer? The attorney needs to address the details of payment with you in the first meeting. The last thing you want is to form a relationship with a $500/hour attorney — and then realize there is no way on this earth you will ever be able to afford him.

5. Why did you decide to become a lawyer?

This one will tell you a lot about the person you are hiring to help you in your business. The lawyer’s reasons don’t need to resonate with you as the client. But they do give you insight in to the motivations of your attorney, why they do what they do, and possibly even some of the best ways to communicate with them.

Kathy Davis is an attorney, and owner of KJD Legal LLC in Brownsburg.  Kathy focuses her practice in the areas of business and real estate.  She operates a virtual law office, which is accessible through her website, kjdlegal.com.  Kathy can be reached at 317-721-5290 or at kathy@kjdlegal.com.

First, you should evaluate your own business. Determine if your business has the capabilities to handle additional work.  Many times suppliers want to do government contracting, but when they get involved in the process, they realize that maybe their business is not ready to take on a new contract.

Also, you need to determine if your company is financially sound. Do you have cash flow issues? Does your company have enough money to sustain a contract, in the event that it requires you to purchase materials up front to start the contract? If your business is struggling financially, it is not recommended to get involved in government contracting at this time.

If you are able to answer yes to both of those questions, then you can move forward in the government contracting process. Next, you will want to decide who you want to market your business to, whether it is federal, state, or local government contracting, or all three. Each type of government can purchase differently than the other. When you decide which agency(s) that you want to market your business, you will need to register your company in their respective websites. Federal and state have their own separate websites, but local government can be several different websites, depending on which agencies you are interested in marketing your business.

Doing business with the federal government requires that you register in the Systems for Award Management (SAM) website – www.sam.gov. This website does require that you have a Dun & Bradstreet number, also known as a DUNS number, before registering. You can request a DUNs number from the Dun & Bradstreet website – http://fedgov.dnb.com/webform. Make sure that you request a DUNs number for doing business with the government, so that it is free to your business.

If you decide to market to the State of Indiana, you will need to register your business at the Indiana website – http://www.in.gov/idoa/2464.htm. There is a list of information on this website that you will need prior to registering.  It is recommended to have this information available when you begin your registration.

Also, on the Indiana website, if you meet the criteria, you may be able apply for certification as a Woman Business Enterprise (WBE), or Minority Business Enterprise (MBE), or as a Disadvantaged Business Enterprise (DBE) with the Indiana Department of Transportation. All of the certification information is located at http://www.in.gov/idoa/2489.htm.

As I stated, local government contracting may require multiple registrations, depending on which agencies you are interested in marketing, but here is a link to a list of a few different agencies and how they do business – http://www.in.gov/idoa/2488.htm.

There is also a link for becoming a subcontractor for the Kentucky-Indiana Bridges Project – http://www.kyinbridges.com/.

One last tip for getting involved in government contracting is to contact the Indiana Procurement Technical Assistance Center (PTAC). They provide a bid match service that searches federal, state, and local websites for bid opportunities and compiles the bids into one email that can be sent to you daily. Their contact information is listed below.

Indiana PTAC

http://www.piccorp.org
5209 Hohman Avenue
Hammond, IN 46320
Phone: (219) 750-1200

For additional help with working through the government contracting process, feel free to email southeast@isbdc.org.

Earlier this year, while preparing to facilitate a “Launching Your Own Business” workshop, I thought I would do some exploration of the word entrepreneur. I googled “entrepreneur”…and got more than 14 million results. No, I’m not still reading them all, but I did decide to limit my search, perhaps, by searching the words “successful entrepreneur.” More than 15 million results this time.  I noticed lots of lists:

• “8 Traits of Successful Entrepreneurs – Do You Have What It Takes?”
• “9 Qualities of Remarkable Entrepreneurs.”
• “7 Traits of the Most Successful Entrepreneurs.”
• “12 Characteristics of Highly Successful Entrepreneurs.”
• “10 Secrets of Becoming a Successful Entrepreneur.”
• “25 Common Characteristics of Successful Entrepreneurs.
• “5 Signs that you’re an Entrepreneur at Heart.”

Realizing that our workshop had its own list of characteristics of successful entrepreneurs, I decided to read through some of the googled lists and find out what others thought as well. Blog borrowing shamelessly from many, here are some qualities/traits/characteristics that appeared most often.

Passionate appears at the top of our list, and it is the most consistent quality or trait I found in all the lists. Here’s how some describe this important quality:

• A successful entrepreneur loves what she does. Whether she loves what her business does or just the idea of business itself does not matter, but a good entrepreneur must enjoy and be fulfilled by her work.

• You must be passionate about what you are trying to achieve. This means you’re willing to sacrifice a large part of your waking hours to the idea you’ve come up with. Passion will ignite the same intensity in others who join you as you build a team to succeed…and with passion, both your team and your customers are more likely to truly believe in what you are trying to do.

• Whatever they immerse themselves in, entrepreneurs typically invest fully & passionately. This extends beyond business building into many aspects of life outside the workplace.

• Line your business up with your passions.

Ryan Holmes, CEO of HootSuite calls it True Grit. He says, “You need to have passion. There is no specific DNA that makes up a specific role in a startup or to be an entrepreneur. If you’re passionate about what you’re doing, there shouldn’t be anything that can get in your way.”

Hard worker shows up on most lists, often accompanied by such traits as dedication, persistence, action orientation, overcoming obstacles:

• Success comes only from hard work. ..Behind every overnight success lies years of hard work and sweat. People with luck will tell you there’s no easy way to achieve success – and that luck comes to those who work hard.

• Entrepreneurs with a quitter mentality give up easily when they encounter resistance or setbacks. They lack the tenacity to keep going in the face of hardship. This is a primary characteristic that separates those who fail from those who succeed.

• Regardless of what the effort might involve, an entrepreneur brings a single-minded dedication to the task by being committed to a positive outcome and ready and willing to do the needful. No matter what that might mean in terms of rising to meet a challenge or acting above and beyond the call of duty, the entrepreneur shows steadfast dedication.

• Remarkable entrepreneurs simply work harder. That’s the real secret of their success.

• Entrepreneurs are action oriented. They are always working on version 1 point something.  They also know if they do not do anything, nothing will happen.

• Two abilities of entrepreneurs – dedication and doggedness.

Dan Schawbel, founder of Millennial Branding, and Robert Sofia, Co-Founder & COO of Platinum Advisor Marketing Strategies, say dedication is the key. “Startup life is only for those with the right mixture of perseverance, initiative, resiliency, and vision. If you have a glamorized view that you’ll spend a few months building a website and then strike it rich, you’ll soon be handed a reality check. Be prepared for the fact that the hours are going to be long and your social life will be nonexistent for a while.  Be ready to commit 100 percent.”

Risk taking and being able to manage failure show up on most lists and are described in many ways:

• Be willing to live with fear, risk and occasional failure.

• Successful entrepreneurs are risk takers who have all gotten over one very significant hurdle: they are not afraid of failure. That’s not to say that they rush in with reckless abandon…entrepreneurs are often successful because they are calculating and able to make the best decisions even in the worst of cases.  There’s not one successful entrepreneur out there sitting on his couch asking, “what if?”

• Many people could be successful if they only took chances….Entrepreneurs are not immune to fear. But they prioritize their approach to life so that the fear of failure, frustration, boredom, drudgery, and dissatisfaction far outweighs the lingering fear of success.

• Entrepreneurs are able to differentiate between dumb mistakes and sensible mistakes. They value the lessons from mistakes.

• You must have the ability to absorb failure as a learning experience without getting discouraged.

• Take risks and make mistakes. Successful entrepreneurs know that a certain amount of risk in business is healthy because it provides growth opportunities and useful information for future decisions.

• Award winning founders are willing and able to take a risk. They understand the cost/benefits of engaging in what’s unknown.  They have a peculiar faith to try, no matter the odds.

Finally…my favorite! Colin Wright, CEO of Exile Lifestyle, says that “Love of Circus” is important. “A startup is like a travelling circus, where everyone has a specialty but everyone is also willing to do what needs to be done to get the show unloaded, running smoothly, and then packed up again at the end of the day. Being involved in a startup requires being equally willing to manage, code, consult or empty the trash cans. Be willing, and you’ll be golden.”

Bill Gregory is a Business Advisor for the Northwest ISBDC. Bill can be reached at bgregory@isbdc.org.

*Image via iStockphoto.com

“It’s my business.  I should know how to do everything and fix my own problems.”

I once read that only 12% of the adult population has the complete skill set required to own and operate an independent business. For those who have started their own business, you know that there is no test or exam required to start a business. Consequently, people can often get in over their head quickly. There is no shame in acknowledging that there are areas outside of an owner’s strengths. In our business advisor training, we are counseled to capitalize on our strengths, improve (where we can) on our weaknesses, and find work-arounds in the areas where we have too much ground to make up. While it’s reasonable to think that an owner should have some aptitude in many areas, it is unreasonable to think that he/she would be good at everything.

“My business (and therefore, my problem) is unique.”

Many companies tell us that their business, company or industry is unique – too unique to be understood by outsiders. While there are variations in companies, most have very similar challenges – understanding financials, managing people, managing cash flow. Whether you are a manufacturer, restaurant, service provider, high-tech company or small, one-person shop, we consistently help owners find the same problems in the same areas. The potential bad news is that you are not unique. The good news is that you are not alone.

“Who am I going to ask for help?  No one around here has experience in my industry.” 

In a couple of books I have been reading recently – one being Frank Partnoy’s Wait: The Art and Science of Delay – the authors have discussed the benefits of bringing diverse groups together to solve problems. Because the outsiders are not steeped in the problem, the culture and the history of the company, they can take a fresh look at the problem. They aren’t emotionally tied to the company (like most owners are); they can look at the situation through an unbiased, objective lens. Because they may have a diverse or, at least, a different, background, they can often bring lessons learned in other industries to the problems at hand. Sometimes squeezing the problem too hard by yourself just leaves you frustrated, worn out, and at a loss for a new solution. A fresh perspective can often come from the most unlikely of sources.

“What if someone finds out we are struggling?  I may lose my standing in . . .”

I can’t really help you with this one, except to say that admitting a problem early and fixing it is usually preferable to prolonging it to its sometimes inevitable end. It’s easier to bail out a boat while it’s still floating than it is to raise it from the bottom. If you don’t want people to know that you are struggling, think about how you will feel when you are closed, bankrupt, or in far worse shape.

Let us help.

At the ISBDC, I believe that one of our most under-utilized resources is our consulting. Whether we act as a sounding board, an idea generator, a subject matter expert, a connector to another mentor/expert, or just a support mechanism, our consulting services can be invaluable to a struggling owner who doesn’t have anyone to talk to about his/her business. Without being cliché, there is nothing new under the sun. We have seen it all before and can usually suggest possible solutions to turn your business in a new direction. Whether you use our services and implement the solutions we might discover together is up to you.

 Scott Underwood is a Business Advisor for the East Central ISBDC. Scott can be reached at sunderwood@isbdc.org.

*Image via iStockphoto.com

A less skilled, less educated labor force was once able to fill entry- to mid-level positions, but the recession and economic uncertainty has forced companies to do away with jobs or combine them with others to cut down on costs. The incumbent worker training programs companies once relied on to help support employee training and development were reduced or eliminated. Technological advances over the past several years have compounded the issue by changing the job market to require a higher skill level.

This skills mismatch poses a problem for employers and employees alike. While there is no such thing as a “free lunch,” there is free assistance for Hoosier employers looking to improve their workforces. Many, however, are not aware of the programs available. Ready Indiana, the workforce development concierge of the Indiana Chamber of Commerce, serves as one way for employers to find out about programs and incentives that can help develop a skilled workforce.

An assessment and training program aligned with occupational, job-specific skills can be particularly beneficial. That’s one reason the Indiana Department of Workforce Development (DWD) offers WIN Career Readiness Courseware, which is a skills-based, online training tool used nationwide alongside the WorkKeys job profiling and assessment system.

All Hoosier employers can access the WIN courseware through their local WorkOne center – and it doesn’t cost them a dime. Employees can access WIN training at work, at home or anywhere the Internet is available to improve their skills and proficiency in 10 job-related areas:

The first three WIN modules (Reading for Information, Applied Mathematics and Locating Information) are commonly referred to as the three core assessments that make up a WorkKeys certification. While WorkKeys assessments are available for all of the modules, the three core assessments are typically what employers use to identify the skill levels (i.e. scores) a candidate needs to be successful in a particular occupation.

So how do employers know which scores are appropriate for specific occupations at their company?  A second complimentary program offered through WorkOne is the WorkOne Job Opportunities and Business Services (JOBS) program, which is also free to employers. Through the JOBS Program, employers can have up to five positions “profiled” to define the job duties and scores (in the three core assessments) needed for that position at their company. Stipulations for using the service include a one-page application for employers, a hiring need and a position that pays at least $10 per hour. Utilizing the job profile in combination with the WorkKeys assessment yields a tool that is EEOC (Equal Employment Opportunity Commission) compliant, reducing concerns for human resource professionals.

Another important tool offered through DWD and WorkOne is on-the-job training, a program that reimburses employers up to 50% of new hires’ wages during the first weeks (or months) of job-related training. On-the-job training is not a tax credit but an actual check sent to your company. The training/job must pay at least $10 per hour.

One main push behind on-the-job training is getting dislocated workers back into the workforce. Job openings must be posted on the state’s free employment service, Indiana Career Connect. WorkOne will recruit and screen applicants and then provide employers with qualified candidates to evaluate. Employers determine the training plan and commit to retaining the employee for at least six months upon successful completion of training.

Another specific focus of on-the-job is funding for “green” on-the-job training. Manufacturing companies that produce energy efficient products and components, or those that engage in energy efficient or environmentally-friendly processes that use fewer natural resources may qualify.

These are just a few examples of how employers can benefit from available programs and do a better job of finding or developing the employees they need so that more Hoosiers can get back into the workforce. WorkOne business service representatives are the first point of contact for employers in each region of the state. Ready Indiana helps employers connect to these and other workforce-related resources through a toll-free hotline at 866-444-1082.  Ready Indiana also offers an interactive, county-by-county map tool that delivers provider contact information statewide for workforce, economic development and community college programs available at readyindiana.org.

Kris Deckard is the executive director of Ready Indiana, the workforce development concierge service offered by the Indiana Chamber of Commerce. Visit readyindiana.org for more information about Ready Indiana activities and initiatives aimed at providing useful, actionable information and research employers can use to improve hiring and training of employees. Kris can be reached at kdeckard@indianachamber.com. 

Everyone who wants to start their own business has a list of reasons why they want to do it. According to Inc. Magazine, these are the top ten reasons to run your own business:

1. You Control Your Own Destiny
2. You Can Find Your Own Work/Life Balance
3. You Choose the People You Work With
4. You Take on the Risk – And Reap the Rewards
5. You Can Challenge Yourself
6. You Can Follow Your Passion
7. You Can Get Things Done – Faster
8. You Can Connect With Your Clients
9. You Can Give Back to Your Community
10. You Feel Pride in Building Something of Your Own

Though these are great and noble reasons to start a business, this list and just about every other list on the internet does not mention the number one reason why anybody should start a business. In fact most of the articles about starting a business never mention the biggest reason to go into business.

Tom’s Secret Number 1

The first reason anybody should go into business is to make money.

It is OK to make money. A noble heart can have all the good intentions in the world. However, they cannot go very far if they don’t have the resources to keep their business going. Without money, you cannot make your own schedule, give back to the community, connect with your clients, etc. All the good intentions in the world will not replace money when it comes to running your business.

Job one is to make your business sustainable. Once you are sustainable, that is have a positive cash flow and a strong net income, then you can think about the altruistic reasons you started your business. Simply put, you need to make money and enough of it.

Tom’s Secret Number 2

85% of running a business is common sense. The rest should be in your business plan.

From the moment you decide to start a business to the grand opening to the hiring and firing of employees and beyond, you will be faced with having to make decisions. Making the right decision is often hard to do. You are often faced with having to make decisions on the fly or at the most inopportune time. Under the best of circumstances, some decisions about your business are hard to make. Making a rash decision can have an impact that could affect your business for a long time, especially if it damages your reputation, image, or your credit.

When it comes to making decisions about your business you should stop and think about the following questions:

• Is this good for my business?
• What impact will this decision have on my overall business?
• What are the short and long term effects?
• How much will it cost?
• If it costs money, where will it come from?
• If there is not money in the budget, what will I give up that is in the budget and how will that affect my business?
• Does this decision fit in with my plans?
• Why am I doing this?

There are a lot more questions you might want to ask yourself about the decision you have to make. Making choices under pressure can lead to disaster. Not following your plan or being pressured to make a decision can also lead to disaster.

As a business person, you will meet people everyday that will want you to make one decision or another. Some of these people will try to pressure you into making an immediate decision with out time to think things through. If this is the case, just ask yourself, do I want to do business with a person like this? Anyone that does not respect your need for time to make a decision about the well being of your business really doesn’t deserve your business.

Common sense may even dictate that you seek outside help in the way of your accountant, lawyer, or other trusted person, like your regional ISBDC counselor, to make the proper decision. Take advantage of the experts in your corner. That is why you hired them. I have always felt that a good lawyer and accountant that are well versed in the needs of a small business are worth their fees in gold.

Tom’s Secret Number 3

Think of money is a tool. Take care of it.

Every industry has its set of tools. Every business has one tool in common, money. Taking care of your tools is an important part of running your business. A good example of this would be a carpenter. They use and rely on their tools being sharp, square, straight and properly set up. If their tools are not in good working order, it makes their job harder if not impossible. Using tools that are not in good working order, or using them improperly can cause damage, injury, and unprofessional results.

Neglecting the tools of the trade is probably one of the worse things that anyone can do. Imagine if the carpenter left his tools out in the rain and they rusted. How would he be able to effectively do his job with rusty tools? In your business you need to take care of one of your most important tools, money. If you don’t take care of it, no one else will.

So there you have it.

You need to make money to do the things you want to do and that is OK.

Common sense says that you should not rush into a decision and that you need to understand the ramifications of your decisions. Remember secret number 1 as one of the reasons for a decision.

Use your money wisely. Use secret number 2 to help you keep your tools in good shape and ready to work for you when you need it.

To bring it around full circle, common sense and using your money wisely will make the money you need so you can do the things you want to do.

Tom Steiner is a Business Advisor for the East Central ISBDC, an organization with the mission to create a positive and measurable impact on the formation, growth, and sustainability of Indiana’s small businesses by providing entrepreneurs expert guidance and a comprehensive network of resources. Tom can be reached at tsteiner@isbdc.org.

*Photo via iStockphoto.com

1)      Inability to Innovate

2)      Losing Your Competitive Advantage

3)      The High Cost of Reckless Hiring

4)      Poor Leadership & Communication

5)      Regulatory Nightmares

In a previous blog, we looked at the Inability to Innovate.  Another major threat is Losing Your Competitive Advantage. Unless your business has a first-mover advantage or you’ve managed to create a monopoly, then you undoubtedly will face competition.  Failing to engage your workforce to create and develop new products and services faster than the competitors means the business is losing its advantage. If you think about it, everything else in business can be replicated, except your most valuable asset – your employees. And in most cases, a truly engaged workforce is your biggest competitive advantage.

Workers who are fully invested and enthusiastic about their jobs are more likely to:

• Participate in strategy & big-pictures planning
• Play an active role in generating value for their company
• Remain with the company long-term or during difficult times

Watch out for sleepwalkers! The quit-and-stay phenomenon refers to those employees who show up to work every day, but have “checked out” mentally. Disengaged workers can be devastating to the bottom line and your future.

Did you know?

-67% of employees in most companies are not engaged in their work.

-Disengaged employees have lower productivity and more than 50% higher turnover rates than engaged employees.

-Engaged employees are 87% less likely to leave their companies than disengaged employees.

Think about your own business… 

In what areas does your company struggle to stay ahead of the competition?

What systems do you have in place to measure employee engagement?

How do you address engagement issues?

Scott Makinson is a local owner of Express Employment Professionals, an award-winning recruiting and staffing firm that is one of the largest privately-held staffing firms in North America. His mission is to recruit and place the “A players” at his client companies so that they may focus on their business and not on the challenges of hiring good people. Visit expressindyeast.com/ for more information or to refer top candidates for employment.  

*Photo via iStockphoto.com

1. Summarize - I find it incredibly frustrating when I am sent an email that has a huge thread attached and it says “See below.” Summarize the string when you send it to me, and I’ll determine if I need to read all of the pages or simply the summary.
2. High Importance – 99% of the emails that I receive that are marked “High Importance” are not.  Since you probably have no idea what’s going on in my world, your “High Importance” is probably not mine. And frankly, does anyone ever send anything of low importance?
3.  Reply to All – This should seldom be used unless you are in an online discussion.  If you are receiving a meeting notice (and therefore not the organizer), no one else on that list wants his/her email clogged with ”Can’t make it, Out of town, I’ll be there” responses. Notify the organizer only!
4. Include a Subject – If you get a lot of emails like most of us, it is important for the Subject line to be accurate.  Even though I use many folders to organize my emails, I regularly have to search to find one, so a good Subject line makes the search go much faster.
5. Abbreviations - “BTW, pls, thx” are not acceptable.  Email is an extension of business writing.  Would you write like that on your business letterhead?  No. Do not use these types of abbreviations; it only takes 2 seconds to complete the words.
6. Spell check – It only takes a moment to spell check your document.  Mine does it automatically. Take a minute before hitting “send” and look it over.
7. Timeliness – Email is designed to be a quick source of communication. If you can’t respond in a short amount of time (within 24 hours), at least acknowledge the receipt of the e-mail and indicate a timeframe so the sender will know when to expect your response. Ignoring email is not acceptable.
8. Contact information – While it is not critical to include on every message in a string, it should be included on the initial message. Many of us use email as a To Do list, so contact information should be displayed.
9. Brevity – If you are sending something that is more than 4 paragraphs, include it as an attachment or use bullet points.  If you need to provide more information, perhaps a telephone call would be better – or an email to schedule a call would be best.

Our world is so fast paced now that we forget that there is a person on the other end of your email. Common courtesy is still the name of the game and needs to show through on all of your business communications.

Susan Davis is the Regional Director for the Hoosier Heartland Indiana Small Business Development Center, an organization with the mission of having a positive and measurable impact on the formation, growth, and sustainability of Indiana’s small businesses by providing entrepreneurs expert guidance and a comprehensive network of resources. Susan can be reached at sdavis@isbdc.org.

*Photo via iStockphoto

A KPI report, sometimes referred to as a Dashboard, provides a snapshot of the important areas of a business’s operation. Think of the dashboard on a car. A car’s dashboard displays all of the vital information a driver needs right at his/her fingertips. To the small business owner every area seems important, but a properly established KPI report gives information on the make or break areas of a business. The small business owner should measure and report on the areas of the business that give it a competitive advantage over similar businesses and that will make it successful. Not every area warrants such scrutiny for every business. Determine those areas that hold the key to the success or failure of your business and provide vital decision-making information.

Develop Your KPI Dashboard

1. Choose the areas and numbers that indicate the health and trends of your business. These numbers will give you a Dashboard to track what is going well and what needs improvement. Many things are measurable. That does not make all of them key to the organization’s success. In selecting KPIs, it is critical to limit them to those factors that are essential to the company reaching its goals. It is also important to keep the number of KPIs small enough to keep everyone’s attention focused on them. Potential monthly (or weekly) KPIs to choose from for your Dashboard:

• Number of sales for each sales category
• Average dollars per sale for each sales category
• Sales dollars for each category and total sales of all categories
• Operating expenses as a percent of total sales dollars
• Number of new customers
• Number of repeat customers
• Number of FTE personnel
• Personnel hours
• Personnel expense as a percentage of sales
• Units produced
• Sales compared to Budget
• Expenses compared to Budget
• Profitability compared to Budget
• Product returns
• Cash flow analysis
• Cash in checking account
• Number of hits on the business’s website

2. Determine goals for each KPI.

• Start-up businesses should utilize the goals that are contained in the projected financials of their business plan.
• Established businesses should utilize the goals that are critical to achieving their monthly and yearly budgets.
• The goal for each KPI should be measurable and not subjective.

Monitor Your KPI Dashboard

1. Calculate and review your KPIs at least monthly.

• Track comparative numbers to determine trends; i.e., all months next to each other on a single sheet of paper for each KPI category. Without this type of comparison, you cannot see if you are improving or deteriorating in that category.
• Learn and utilize the tools in your accounting software such as QuickBooks that may automatically calculate some of the KPIs you want to track.
• It is important to stay with the same definition for each KPI category or the numbers will not be comparable. For example, will cash flow take into account capital expenditures or just operational cash flow?

2. Develop action plans for each area that needs improvement.

• Just tracking the numbers is not enough – you should develop an action plan for improving those areas that are not hitting their goal. Unless this is done, you are missing the power of having KPIs at all.
• If improvement is not being achieved or goals are not being met, review your action plans for possible adjustment.

Good KPIs versus Bad KPIs

Bad KPI:

• Title of KPI: Increase Sales
• Defined: Change in Sales volume from month to month
• Measured: Total Sales
• Target: Increase each month

What’s missing? Does this KPI measure increases in sales volume by dollars or units? If by dollars, does it measure list price or sales price? Are returns considered? How much, by percentage or dollars or units, do we want to increase sales volumes each month?

Good KPI:

• Title of KPI: Percent Monthly Increase in Total Gross (before returns) Sales Dollars. List prices are not considered.
• Defined: Month’s Total Gross Sales Dollars minus previous month’s Total Gross Sales Dollars, and that total divided by the previous month’s Total Gross Sales Dollars. The resulting number shall be expressed as a percentage.
• Measured: Total Sales combined for all Regions
• Target: 20% increase month over month for January through June, 10% increase July forward.

If the KPI Dashboard has been developed thoughtfully and strategies are developed for improvement where needed, it will help ensure the small business owner will be successful.

Richard Pittelkow is a Business Advisor for the West Central Indiana Small Business Development Center, an organization with the mission to create a positive and measurable impact on the formation, growth, and sustainability of Indiana’s small businesses by providing entrepreneurs expert guidance and a comprehensive network of resources. Richard can be reached at rpittelkow@isbdc.org.

*Photo via iStockphoto.com