Tuesday, June 30, 2009

What are the best time management technques?

Time is the one resource that most small business owners wish they had more of. But until someone figures out how to make days last longer than 24 hours, entrepreneurs must be content with learning how to sharpen their time management skills.

Fortunately, one of the most effective time management tools is also the simplest—the basic “To-Do” list. Each day, jot down all of the things that need to get done, all on one sheet of paper.

You can also number or check the ones that are highest priority “must-do” items. As tasks are completed, cross them off. This can help you focus on getting them done one at a time, and also gives you a sense of accomplishment. To add a technology flavor to tracking your tasks, TimeTiger.com provides a web-based to-do list that helps you monitor your project and non-project activities.

Delegating more work can also help ease your time crunch. Many business owners accustomed to “doing it all” find this exceedingly difficult. But even if you are a sole operator, you can pass off tasks to others, via outsourcing, for example, to free up time for yourself.

Periodically analyze how time is spent at your business—and not just your time, but everyone’s. Divide the day into small time blocks and record what you, or others, were doing in each block. Now compare this real use of time to your goals, expectations and mission priorities. If they do not align, you’ll need to take action. And remember that growing, successful businesses don’t put things off. Even a simple “no” response to something on your to-do list can extinguish that item and let you move on.

A variety of technology solutions are also helping small businesses track and manage time. For example, Workarea.com is an Internet-based time tracking system that can provide billing information up to the second. The system includes a time clock, time sheet, expense tracking, address book and the ability to access it all via cell phone or PDA.

For businesses with employees, the TimeClock Plus Small Business Edition at www.timeclockplus.com lets you turn any PC into a time clock. Employees can sign in or out with the keyboard or mouse, and easily allocate hours and costs to specific jobs.

Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties

Tuesday, June 23, 2009

Is venture capital financing right for my business?

In assessing options for financing a new small business, many entrepreneurs look to venture capital. This approach can benefit a relatively unproven enterprise that appears to have a promising future. Securing this type of funding is not easy, however. Venture capital firms expect a business to return their investment with interest plus a large profit. And after the disappointments with many tech-sector companies in recent years, venture capital providers are particularly wary about where they invest.

Many venture capital firms are affiliated with banks, insurance companies, other financial institutions and large corporations. Some are owned by individuals or private groups of investors; others are publicly held. The minimum investment is generally from $50,000 to $500,000, but investment ceilings are almost unlimited.

The interest of a venture capital firm in a small business usually depends on the stage of the new firm’s development. An investor may be interested only after the new firm has established itself and has a working organizational structure, a viable business plan and start-up arrangement. However, some firms prefer to come in at a later stage—perhaps when the new company is in its second or third round growth stage and needs more capital either to carry out expansion plans or to tide it over until a merger or public offering takes place.

A company’s business plan serves as the primary analytical tool for the interested venture capital investor. In analyzing the plan, investors have three specific concerns:
1) The product or service. Investors seek product or service innovations that give the company a strong competitive advantage. A new idea, backed by market surveys (measuring the appeal of the product or service and its potential market), may be appealing to investors.
2) Management capability. No matter how good the product or how innovative the service, the quality and experience of the management are key factors in the success of the business. The astute investor looks for solid evidence of such management skill.
3) The industry’s growth potential. Investors also want to be sure that the product or service is in a growth field. A significant or revolutionary product improvement may nevertheless lack luster in a declining product or service category.

Most venture capital investors purchase common or convertible stock rather than burden the fledgling enterprise with interest payments on debt or debentures. They may want more than 50 percent ownership. Additionally, while investors may insist on a position on the board of directors or expect to give management and technical advice, they are rarely interested in day-to-day management issues unless the survival of the business and their investment are at stake.

Before taking the next step for obtaining venture capital, get outside advice. Talk with your accountant and tax advisor.

Richard Strug

Tuesday, June 16, 2009

How can I make my business more efficient?

Gerald Bose, SCORE counselor and past vice president, shares his expertise in the area of Process Improvement.

Many organizations are seeking ways to reduce waste and become more efficient. The automotive and financial industries in the U.S., in particular, have realized significant process improvements throughout the 1990s. However, they grew complacent in the 21st Century and curtailed their improvement efforts. Today, companies like GM, Chrysler and Citibank face acquisition by competitors or bankruptcy.

Now, a variety of small businesses are successfully improving their processes and becoming more productive, agile and competitive.

A process is simply a series of steps and decisions performed in a way to accomplish a work product. Virtually everything we do in life involves processes. Examples of processes that can be found anywhere are: producing invoices, taking an order, preparing a lunch order or confirming customer appointments.

Process improvement is a series of actions taken to identify, analyze and improve existing processes within an organization to meet goals and objectives. This means setting aside past practices of assigning blame or being reticent to change because “we’ve always done it this way”. Sometimes the biggest change is to stop fighting fires or managing crises and learn to find ways to do your work better.

We need to find the root causes of problems in order to fix what is broken. Occasionally, Murphy’s Law will rear its ugly head and our process improvement efforts may actually make things worse. Don’t despair because Rome wasn’t built in a day. Sometimes, we have to take a step back before we can take two steps forward.

The basic process improvement model follows the proven Plan-Do-Check-Act (PDCA) Cycle. First, identify the root causes of problems with the selected process. Plan how and what to do to improve the process. Often diagramming the steps and decisions involved can help visualize the problem better and pose viable solutions. Next, implement or Do the changes you planned in a pilot or on a smaller scale. Check to see that fixes are working and effective. Act to make the fixes standard and part of the revised work policy or repeat the previous steps to discover alternate solutions.

So, whether your business is in the start-up phase or has been an on-going entity for years, it can benefit from process improvement. Apply the key process improvement steps to a business function you believe needs tweaking to see what you learn. By continually improving your internal business processes your company will not only survive but it will thrive.

Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties

Tuesday, June 9, 2009

How can I revitalize my business?

Have those good ideas stopping coming? Do your employees appear to be doing little more than going through the motions? Are your competitors making splashes in the media that you can’t answer?

If so, a makeover could be just the thing to re-energize your business. It need not be a major overhaul; some minor tweaks may be enough. What’s important is that you recognize the need for action, and learn all you can to make informed decisions.

In order to identify where changes are most needed, you’ll have to dig for details about various aspects of your business. Remember to focus not just on the individual elements, but also how they all fit together.

For example, has your customer base changed since you first started? Is it broader or narrower? Older or younger? More upscale or less? You may need a new image, revved-up branding or perhaps just a rewrite of your marketing materials to address the needs of this changing customer base.

Take a hard look at whether your products or services are performing to customer expectations. Remember that your goal should be to exceed expectations, not simply meet them. Perhaps competitors are doing a better job, or maybe they’ve created add-on products and services that you haven’t. Your own customers can help with your makeover if you ask them for feedback.

If your marketing message has never changed, perhaps it’s time to reevaluate and devise a new one. Try revisiting your original business plan. You might be able to recapture some of the insight and enthusiasm you originally had from that document. Think back to your most successful promotions, presentations or sales efforts. Rather than reinventing the wheel, you might be able to update and expand an approach that has already worked for your business.

Don’t be afraid to seek out other perspectives. After all, you may be “too close” to the issues to understand the sources and solutions. Meet and brainstorm with your trusted advisors, mentors, friends, partners, employees, and outside consultants. Ask customers to give you a frank assessment of what you’re doing, how you’re doing it, and what you can do to better serve their needs. The more ideas you receive, the more options you’ll have for getting your business back on the fast-track.

Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties

Tuesday, June 2, 2009

Where can I find training for small business startups?

On Thursday, May 14, I had the privilege of attending the 1st Annual Awards & Entrepreneur Showcase Event of The Intersect Fund, an organization founded by Rutger’s seniors Rohan Mathews and Joe Shure. The Organization provides an opportunity for local communities new and existing small businesses to better educate themselves before entering the business world.

In the current economic downturn, many Americans who thought their jobs were secure now find themselves looking for work. The comfort of depending on one’s employer to provide stability and long-term financial success may be a thing of the past. Thousands are finding opportunity in the midst of crisis by striking out on their own to start small businesses in their communities.

The Intersect Fund, a non-profit organization based in New Brunswick, can help. The group offers seed capital, consulting services, and comprehensive training, all at affordable prices.
Entrepreneurs who wish to participate are invited to take a course that meets once a week for six weeks and covers the fundamentals of business that one should know before embarking on a new business venture. Topics include budgeting, managing cash flow, marketing, registering one’s business, and a host of other useful skills. When entrepreneurs complete the course, they have the tools necessary to create a viable business plan, a must for every new and existing business to succeed. They also become eligible to apply for a loan that helps them buy working capital or cover the cost of expansion. Courses are available in Spanish.

In addition to receiving quality business services at a reasonable price, The Intersect Fund entrepreneurs’ have available to them a myriad of networking opportunities and continued support from an attentive, competent staff. The Fund also provides low-cost logo creation and graphic design services, and can also help set up a web site.

Starting or expanding a business can seem like a daunting task. And, let’s face it: it is. With the right support system and training, the steps to business success become far easier to handle.

To learn more about The Intersect Fund, and to find out how to take advantage of the services the Group offers, send an e-mail to info@intersectfund.org.

Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties