Will State Lawmakers Heed New SBA Data, Small Business Concerns?

 

Jan. 26, 2012

There’s more evidence that small business plays a pivotal role in creating jobs in Washington and other states, according to the Office of Advocacy in the Small Business Administration (SBA). The Office of Advocacy released small business data for each of the 50 states.

SBA believes the new data is “an invaluable resource for small businesses, legislators, academics, government officials, and policymakers in each state.”

Why?

“Small businesses are the foundation of economic growth in Washington and in our nation” said Dr. Winslow Sargeant, Chief Counsel for Advocacy. “By supporting policies that promote innovation and entrepreneurship, we help small businesses tackle these challenging economic times. These statistics are a resource for a path to economic growth.”

As for Washington state, the report explains “small business employment; business starts and closings; bank lending; business ownership by minorities, women, and veterans; and firm and employment change by major industry and firm size.”

Salient data about small business:

• There were 532,162 small businesses in Washington in 2009. Of these, 142,854 were employers and they accounted for 53.3 percent of private sector jobs in the state. Small firms made up 98.1 percent of the state’s employers.
• Throughout 2010, the number of opening establishments was lower than closing establishments and the net employment change from this turnover was negative.
• Washington’s real gross state product increased 0.7 percent and private-sector employment decreased 1.8 percent in 2010. By comparison, real GDP in the United States decreased 1.3 percent and private sector employment declined by 0.8 percent.
• Self-employment in Washington surged over the last decade. Female self-employment fared the best compared with other demographic groups during the decade.

To promote entrepreneurship, this week the Washington Policy Center sent state lawmakers in the 2012 legislative session these recommendations:

1. Revisit the voluntary settlement agreement as passed by the state Senate in 2011 – $1.2 billion
2. Reform the displaced worker retraining program
3. Simplify sales taxes by using an ‘origin based’ tax (as opposed to a ‘destination based’ tax) and creating a flat rate for out-of-state businesses
4. Review regulations to ensure that Washington rules don’t exceed federal regulations
5. Enact Tort Reform
6. Do no harm in transportation policy – do not reduce road lane capacity
7. Do not follow Seattle in enacting statewide paid sick leave

In addition, Gov. Gregoire suggested her strategies to aid small business — business and occupation tax relief.

How has the Legislature responded? Lawmakers have ignored their $1.5 budget-deficit crisis.

Instead, lawmakers are considering other matters – mandating paid sick leave and safe leave, banning plastic bags, abolishing the death penalty and gay marriage.

When will Washington’s Legislature demonstrate wisdom?

From the Coach’s Corner, also read:

WPC Hits Target, but Will Washington State Legislature?

Washington: A Balanced Budget Is No Longer Enough

Does the Federal Reserve Understand Small Business?

Knowledge is knowing a tomato is a fruit.  Wisdom is not putting it in a fruit salad. 

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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

CES: Best Business Strategies to Get Tech Funding

 

Jan. 24, 2012

If you have a tech startup looking for funds, you already know the competition is intense. But there are strategies that will help you to get funded. Investors revealed their preferences for funding technology firms at the 2012 Consumer Electronics Show (CES) in Las Vegas.

On her blog, the chair of the CES venture capital panel, Joey Tamer, writes “each early stage fund planned to invest in a Series A for four or five new early stage companies during this year.”

When she’s not chairing venture panels, Ms. Tamer is an outstanding Los Angeles-based strategic consultant to technology and media (www.joeytamer.com).

“In the case of Jerusalem Venture Partners, Yoav Tzruya reported that this number represents no more than 1 percent of the 600 companies JVP reviews each year for its early stage fund,” says Ms. Tamer.

“Kevin Spain of Emergence Capital which has a focus on B2B applications, and Chris Petrovic of GameStop Digital which is a strategic investor/acquirer of game companies, as well as Habib Kairouz of Rho Capital agreed with the plan for four to five new deals this year,” she adds.

Improved environment

“We are in a boom period again, this time for the number of early stage companies in play in the market,” Ms. Tamer explains. “The continuing trend that allows for new technologies and applications to be built with many off-the-shelf tools, using world-wide technical expertise, for much less capital, has created many new companies competing for the funding resources available.

“The new trend of incubating companies in accelerators has added some seed capital to these concept-companies to get them through their initial product development,” she says. “But then these companies need to get some traction in the market, hopefully to significant revenue, before they can hope to move from seed capital to Series A.”

Optional strategies

Ms. Tamer indicates you have options to consider if you can’t get from seed to Series A or from Series A to Series B.

“Early stage companies not attracting that critical Series A or Series B funding should consider connecting strategically or through acquisition or merger with other similar-stage companies to create a stronger offering for funding,” she advises. “Aligning with other early companies that would enhance your market position or extend your product offerings or brand, you might attract that essential next stage of funding.”

She explains a developing trend.

“Kevin Spain added a new point, that he sees a strong emerging trend in B2B and enterprise applications using the new technologies that are mostly focused on the consumer market now,” she writes. “He advised companies to look for those B2B market opportunities for their current B2C products and applications. A doubling of your target markets, which rise and fall under different economic conditions, may present a strong offering to investors.”

She explains the motivation of two investors.

“Scott English from Hearst and Chris Petrovic of GameStop approach their investments as strategic additions to their portfolios, rather than as pure venture investments –even though each has a different priority for these investments,” she explains.

“The first point made was to conduct your due diligence about how strategic investors value their target companies,” Ms. Tamer says. “Hearst, for example, is a later stage investor focused on financial ROI to Hearst first, and strategic value to the portfolio second. GameStop, focused on early stage game companies, values its acquisition targets first as an operational addition to its portfolio plan (does the company add to GameStop’s infrastructure, product mix, learning about new markets, or strategy) before financial and ROI considerations.”

She explains some lessons:

1. Do your homework about your company’s “fit” with what an investment group might be seeking.
2. Talk with other companies in the investor’s portfolio.
3. Narrow down your list and your efforts to those investors that prefer your company’s stage, market sector, and your possible enhancement of their portfolio’s current companies.
4. Some strategic and corporate investors function very much like venture capitalists, and others have different priorities. So, after your due diligence, and as you enter discussions, read the deal’s restrictions and the detailed legal conditions before negotiating or accepting any investment.

Critical factors to help you win

“Norm Fogelsong of Institutional Venture Partners, a later-stage venture fund, insisted that your company’s vision must be big, very big, to attract the rounds of capital needed to become a major player,” she points out.

“The panelists agreed that they are very focused on execution, in particular execution on market penetration,” Ms. Tamer advises. “After you have been funded on your product’s unique value, it is time to turn your attention to your market, especially your customer acquisition and retention strategies, tactics and results.”

She provides another insight: “Yoav related that he looked for CEOs with deep market savvy, a founder who knows his or her product and its market realities, and has a strong go-to-market strategy.”

Ms. Tamer shares the insights of Sharon Wienbar of Scale Venture Partners, a later stage investor, who wants to minimize risk three ways:

• Proof of market responsiveness: Does your customer commit to your vision of your product’s value, price and use?
• A business model that prioritizes customer acquisition and retention: Do you have a plan that acquires each new customer quickly and for less and less cost of acquisition?
• Compelling metrics: are your projections for market penetration, growth and profitability backed up by proven metrics?

“So, amid the growing competition for capital we are seeing this year, particularly in the consumer market, investors’ focus seems to move quickly from unique technologies and applications to strong execution,” concludes Ms. Tamer. “Early stage companies need strategies to present compelling offerings to investors, and an increasing focus on market execution that leads to growing a big company and taking significant market share.”

Hope you enjoyed these insights. As usual, Ms. Tamer speaks and writes with authority.

(Note: I’m very familiar with Ms. Tamer’s expertise. She is a fellow member of Consultants West, www.consultantswest.com, a roundtable of veteran consultants in the Los Angeles area.)

From the Coach’s Corner, here are more of Ms. Tamer’s valuable insights:

How To Get More Opportunities As A Guest Speaker

How To Obtain The Most Profit From Speaking Opportunities

6 Values for Financial Protection

Options to Navigate This Marketplace Bedlam

What Should You Divulge When Asking for Investment Capital?

Downturn Survival

Leadership

Eight Strategies to Consider Before Starting A Tech Business

What No One Tells You about Raising Investment Capital

“If you can dream it, you can do it.”

-Walt Disney

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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

RIM Provides 9 Lessons in Best Turnaround Strategies

 

Updated – Nov. 5, 2012

RIM, Research in Motion, needs more than just advertising and marketing strategies. Companies – from big to small – can learn business turnaround lessons from RIM’s predicament. RIM has failed to respond to marketplace changes.

Rim has been losing market share in the private and public sectors.

Despite installing a new CEO, Thorsten Heins, and hiring a vaunted crisis management firm, Sitrick and Company, RIM’s comeback attempt got off to a poor start.

Analysts, investors and customers were troubled by the headline: “New RIM CEO says drastic change not needed.”

Numerous published reports quoted Mr. Heins: “I don’t think that there is some drastic change needed. We are evolving … but this is not a seismic change.”

To the contrary, my sense is that drastic changes are needed – externally and internally. Unless the company can upgrade its products, solve its product delays, and fix its reputation, the company will go under unless it’s sold. (Note: To be clear, I’m a long-time Blackberry user.)

Yes, RIM has marketing challenges. But as any savvy salesperson knows, it’s difficult to sell a product that’s considered inferior to competitors. Apple’s iPhone and iPad, and Google’s Android operating system have taken market share from RIM, which is why the once-proud company has also lost market value.

RIM’s demise provides these turnaround lessons:

1. Understand first things first. It’s important to move current product inventory, but simultaneously make long-term product development a priority. The company needs effective decisions. There are nine dos and don’ts for best decision-making. RIM will earn praise if it can unveil a strategic plan to publicize successful development of software for its Blackberry 10. So strategically plan and implement management strategies for a successful turnaround.
2. Develop a strategic marketing plan and align it with sales. Notably, RIM is looking for a new marketing director. Hopefully, innovation will result. Consider tips to get strong marketing plan results, and the 14 reasons why major marketing campaigns fail. And for profits, don’t forget to align marketing with sales.
3. Attract visionary product-creation relationships. It’s important to stay atop marketplace volatility. Hire or partner with visionary innovators. RIM lost ground because it didn’t have enough developer support, which opened the door for competitors. Think about nine key questions before you form a partnership and here the nine steps for strategic alliance success.
4. Create an iconic product. Innovation is key to be a Ninja innovator. In RIM’s case, the company should create excitement by intensifying its research and development for a blockbuster smartphone – bigger screen, 4G, and better camera.
5. In view of the economy, remember Henry Ford’s success. A salient reason Mr. Ford was successful: He manufactured an everyday car – the Model A – a car the average American could afford. Think 1930s for business success. Consumer attitudes are changing. RIM used to own the corporate market and didn’t create a consumer niche. It needs regain corporate market share and its own version of the Model A for the digital phone age.
6. Restructure the team. If Mr. Heins really believes drastic change isn’t necessary, he better wake up quickly and reverse course. He should make certain he employs a lot of thought leaders who serve as devils’ advocates. RIM needs to earn marketplace confidence by exploring and communicating all its strategic options. Unfortunately, it appears RIM needs to take the six steps to implement a cultural change for profits.
7. Operate profitably. Develop a laser focus on profitability. Understand in any economy, what drives your profit. Here are 10 basic tips — leadership for business profit.
8. Continue to focus and promote security. Daily, the media is filled with headlines about identity theft and security. Blackberry is known for its security, but the message has been diluted. Android is successful despite its security weaknesses. After all, who profits from Android’s security issues? Not users.
9. Manage your reputation. The key is to create positive images. But RIM is suffering in reputation management.  Here are the best practices to optimize your brand and manage your Web reputation. It’s also vital to know how to leverage the news media for publicity, and to implement PR  crisis management tips.

From the Coach’s Corner, here are developing trends and solutions for manufacturing success.

“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”

– Peter F. Drucker

 

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

Tips To Get Top Results From Your Marketing Plan

 

Why do seemingly great marketing plans fail to yield the desired results?

Well, one reason: Such plans don’t turn the ideas into reality because they’re not action-oriented. What counts is the scheduled specific footwork, and then tracking the results.

There’s a second reason, quality of execution, but more on that later.

Four action-oriented keys to success

Action key No. 1: Develop specific action items for each key piece of your plan with specific target dates to take action. In other words, if 12 big customers will largely solve your revenue issues, set a goal for each monthly interval. For example, write: “We will get one major client each month.”

Action key No. 2: List specific footwork to achieve your monthly goal of one new client. For example, write: “To get a major new client each month, we’ll have to look for new opportunities to network with our existing Centers of Influence and to create new Centers of Influence.”

If you belong to your local chamber of commerce or Rotary Club, ask your friendly chamber peers or Rotarians for two referrals: “What are the names of two people with your qualities who might need our product?” Then, while dropping the name of your friend, make the contact.

Consider other ways to enlarge your prospect list, and write something like this: “We will also get a list of business leads via…”

Action key No. 3: Benchmark your action items that can lead to the desired results. For example, write: “From our list of prospects, we will meet with three new prospects each week.”

It’s a numbers game, but rest assured referrals are usually the strongest leads – especially, if you use the right networking strategies.

So don’t worry about the results. Focus on taking steps. The results will take care of themselves.

Action key No. 4: Define your list of specific actions to meet your targets. For example, write: “I will telephone or visit 15 prospects a day asking for an appointment.”

Focus on making the contacts, but again, don’t worry about which doors will open. It might be a lost art, but here’s how and why to use cold-calling for higher sales. Here are eight tips for cold calling by e-mail and telephone.

Quality of execution

Despite all the hype about the benefits of social media, face time works best. If you have good branding, elevator pitch, and use the right sales steps, you will be successful.

Here’s more:

Branding: Here’s a checklist to build your brand on a budget.

Elevator pitch: Here are the top 11 tips for a great elevator pitch.

Sales Steps: Here are the seven steps to higher sales.

You might also want to review the eight best practices in small business marketing.

From the Coach’s Corner, here are two advertising resource links:

• What are the Secrets for Success from Advertising?
• Checklist for Branding, Selling Your Biz as Green

“A clear vision, backed by definite plans, gives you a tremendous feeling of confidence and personal power.”

-Brian Tracy

  

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Author Terry Corbell has written innumerable online business-enhancement articles, and is also a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

New Cyber Attacks: Tips For Internet Security

 

Updated April 7, 2013

Do you need more evidence to be diligent in using best practices for security on the Internet?

Christmas and Hanukah don’t matter to cybercriminals, as they don’t observe holidays. They’re working hard to disrupt lives and steal money.

Consider four examples:

1. According to a Web security study in 2013, Internet attacks are impacting businesses, with the majority of them reporting significant effects in the form of increased help desk time, reduced employee productivity and disruption of business activities.

2. As much as $1 million was reportedly stolen and given to charity after thousands of credit card numbers and other personal information were hacked from security think tank Stratfor by the furtive cyber group calling itself Anonymous. (Of course, all it did was hurt the charities because they had to expend valuable resources – time and money – in refunding money to the credit card holders.)

3. Bloomberg reported that commerce is active on criminal trading sites – as much as $3.50 is paid for each stolen credit card.

4. US-CERT reports that spear-phishing attacks have been launched on members of the United States Automobile Association (USAA). Cybercriminals are trying to trick USAA members into opening e-mails by using “Deposit Posted” in the subject line. The e-mails are designed to trick USAA members into opening attachments that contain malware. Once unleashed, the activated malware invades the victims’ computers searching for their sensitive personal information.

“Readers should remain on alert to keep safe from attacks by following the following three basic rules,” writes nationally recognized security expert, Dr. Stan Stahl of Citadel Information Group in Los Angeles.

His basic rules:

1. Do not open attachments in emails unless the email is expected. Do not click on links in unexpected emails. Attachments and links can be booby-trapped. When in doubt check with the sender.
2. Keep systems updated with the latest software versions.
3. Keep anti-malware solutions up-to-date. Consider moving to advanced host-based intrusion prevention.

You can sign up for his “Weekly Patch and Vulnerability Report” and his blog at Citadel-information.com.

Actually, Most Small Businesses Make You Vulnerable to Credit Card Fraud, ID Theft – Study. So businesses need to be diligent, too. Is Your Business Prepared with Precautions and Response Philosophy?

(Note: I’m very familiar with Dr. Stahl’s expertise. He is a fellow member of Consultants West, Consultantswest.com, a roundtable of veteran consultants in the Los Angeles area.)

From the Coach’s Corner, here are more resource links:

Security Precautions to Take Following Citibank’s Second Reported Online Breach

Why Many Healthcare Workers Are Responsible for Alarming Trend: Medical ID Theft

Lesson about Passwords after Theft of 16,000+ UCLA Patient Records 

“You can’t hold firewalls and intrusion detection systems accountable. You can only hold people accountable.”

-Daryl White

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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?

8 Tips for Cold Calling By E-mail and Telephone

 

Since the advent of the digital age, cold calling went out of vogue. But in the lingering downturn – whether you’re in advertising or staffing services – cold calling has become the logical tool to use to generate clients or business customers.

For most businesspeople, cold calling isn’t the easiest route but it is a proven way of getting clients and customers. It gets easier and more fun with practice – using your value propositions.

Once you get some results, it will actually create a domino effect. A little bit of footwork leads to some business, which leads to even more business.

So it’s all about attitude – an attitude of gratitude and providing a valuable service to your prospects.

Here are eight tips:

1. Make certain all online references about you – social media, Web site and press releases – are professional. Once a prospect is interested in you, the person will search your name on the Internet. So do the footwork now.
2. Remember you’ll only get a brief moment to pique the person’s interest in a phone call. Develop a tantalizing phrase for your subject line, if you’re e-mailing. Know your elevator pitch before you start the sales process – benefits that differentiate you. Your initial goal is just to get face time to lay the foundation for a possible relationship. Don’t try to sell your products or services. Go for a single instead of a home run.
3. After you’ve identified the right prospects, also target centers of influence – people and organizations that can direct business your way. That means a business association, chamber of commerce or the news media using press releases.
4. The best time to make contact via e-mail or telephone is early in the morning. If you get the person’s assistant or receptionist, indicate you’d like to call back. Try to learn the best time to try again. But try never to allow an employee to forward a message to the person for you.
5. Engage the prospect by setting up a dialogue by asking open-ended questions. The best salespeople listen 90 percent in such conversations.
6. Demonstrate that you care about the person and her/his business, and that you listen. Follow up with a handwritten thank you note – or an e-mail, if you must. Include a restatement of the prospect’s concerns, an appropriate value proposition with additional information, and a statement to prevent buyer’s remorse.
7. Unless you are able to schedule an appointment in the initial contact, allow five business days before you follow up. Remember your image — you want to earn the business, but you don’t “need” it.
8. Be patient and persevering. Only a small percentage of the contacts will turn into prospects or sales. It often takes five positive contacts before a person buys. Make sure you’re not committing the seven deadly sins of selling. So use the best selling techniques, the seven steps to higher sales.

From the Coach’s Corner, here’s another article: The Lost Art – How and Why to Use Cold-Calling for Higher Sales.

“If you don’t take a chance, you won’t have one.”

 

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

 

IPO Guru: Why the Frantic IPO Pace Heading into the New Year

 

Dec. 14, 2011

Although 2011 has been a disappointing year for initial public offerings, several companies aim to go public this week making it the busiest IPO activity since 2007.

So what’s going on?

“There is a very large backlog of companies wanting to IPO and the November 4 Groupon IPO turned the light back on IPOs,” says expert IPO analyst Francis Gaskins. Google his name – he’s a widely quoted IPO guru online, on television and in newspapers.

“The IPO light was turned off by the market’s decline in August,” he explains.

You might recall the stock market took a nosedive over worries of the federal government’s debt. At this writing, Standard & Poor’s 500 increased by 8 percent in the last nine weeks.

Which companies stand to benefit?

“This week there are five energy-related IPOs, two social networking IPOs (Zynga & Jive Software), two industrial companies plus Michael Kors, which we like very much, and one IT company,” Mr. Gaskins explains.

In 2011 until now, $35 billion has been raised in 115 IPOs. That’s a decrease from 2010 — 154 IPOs netting an aggregate $39 billion.

Both years are considered to be subpar. Normally, you could expect 25 percent more dollars to be raised among about 250 IPOs.

“The IPO market is leaving 2011 with a decided bang,” he says.

So what about the New Year?

“As long as the averages don’t tank we’ll continue to have a healthy IPO market when it begins again sometime in January,” adds Mr. Gaskins.

(Note: I’m proud to say Mr. Gaskins and I are both members of a select roundtable of consultants, Consultants West, www.consultantswest.com.)

From the Coach’s Corner, Mr. Gaskins’ site: IPODesktop.com.

“In the business world, the rearview mirror is always clearer than the windshield.”
-Warren Buffett

 

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Columnist Terry Corbell is a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?