Chemeketa Blog

Guide Offers Business Financial Resource Listings

January 23rd, 2012 by Chemeketa SBDC

Have you been turned down for a business loan from the bank? Too scared to even ask for a loan from the bank? Looking for funding outside of the bank? You’re in luck; MERIT, a program of the SBDC, has recently published and distributed the free “Mid-Willamette Valley Guide to Small Business Financial Resources.” The guide is a comprehensive look at the funding opportunities for small business owners in Marion, Polk, and Yamhill counties. Here’s a glance:

Loans: Municipalities, the Oregon Business Development Department, and the Mid-Willamette Valley Council of Governments provide a range of business loans. Some of the loans are specific to certain industries or geographic areas.

Microloans: Microloans are loans that lend up to a certain amount. Smaller loans are not as profitable for banks so microloans fit the need of business owners who do not need a lot of funding.

Grants: We get asked about business grants at the SBDC all the time. The fact is they don’t really exist — at least not how people want them to exist. Some municipalities offer façade grant programs. These grants typically work on a match basis.

Individual Development Accounts: IDAs are a matched savings program. Typically, the match is 3 to 1. It can be used for a start-up business or business expansion. You must income qualify to be eligible for an IDA.

Tax Incentives: Oregon offers some tax incentives for eco-friendly businesses or businesses in particular geographic locations.

Venture Capital: Venture capitalists invest in high-potential companies and in return take an equity position in the company. The guide lists several Oregon-based venture capitalist firms and networks to join.

Alternate Funding: Crowdfunding is an alternate way to raise funds for a business venture by creating a campaign online and soliciting funds from friends, family, neighbors, and strangers around the world.

Credit Building Products: Your credit score is a vital component to any loan application. If you have no credit or bad credit, contact your bank or credit union to learn about the different products they have that can help build your credit score.

Loan Guarantee Programs: Loan guarantee programs get a lot of press, mainly the SBA loans. However, loan guarantee programs do not work directly with the borrower. Instead the programs work with the lender by insuring their position so they can take on riskier loans.

The USDA and the Department of the Interior: Indian Affairs also have loan guarantee programs that are not widely known.

Most of the resources listed in the “Mid-Willamette Valley Guide to Small Business Financial Resources” are underutilized. Stop by the SBDC to pick up your copy of this guide today.

Kristin Mozian is a resource development coordinator working with the MERIT Microenterprise Program at the Chemeketa Small Business Development Center. www.sbdc.chemeketa.edu.

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New Year Offers Chance to Improve

January 9th, 2012 by Chemeketa SBDC

The holidays have come and gone, a new year is here, and it’s a blank slate. A lot of people go through a slump in January and it’s hard to keep up the energy. Your business depends on your being motivated though, so you need to be playing to win every day. Here are a few tips on staying at the top of your game.

-Remember that you made the choice to be in business to begin with, and it’s still your choice (every day) to stay there. You are in control. You are the one who decides at the beginning of each day where you will go and what you will do. No matter what circumstances are swirling around you, you are ultimately the one who makes the decision to stay in or get out. Own it.

-Carefully limit the amount of media and economic news you watch and listen to. It seems that you just can’t read or hear a business story these days that doesn’t predict that the sky is falling and the world is coming to an end. Do you need to ingest those stressful messages on a regular basis? And will knowing how bad things are really help you run a more successful business? Do whatever minimum you need to in order to stay informed, and then spend the rest of the time filling your mind with motivational messages and helpful resource information.

-Pay attention to what triggers negative thoughts and emotions. Is it the economy? Unhappy customers? Bookkeeping duties? Maybe a couple dozen other things? When those things happen, what are your responses? And more importantly, what can you do to head off the negative responses at the pass? If you recognize the patterns you can change them.

-Choose to avoid negative people and spend more time with positive and supportive people. For the most part you control who you spend time with, so make choices to be with people who uplift you and make you glad to be alive. You know the ones, those who are pleased about your successes and wish the best for you. Resolve to stop complaining about things and hanging around people who complain. Don’t commiserate with negaholics. Who needs it?

-Practice gratitude and determine to thank at least one person in your life every day. Stop to appreciate how people are contributing to your life, and make sure they know you have noticed. Move on from there to spend a moment at the end of each day listing ten things you’re grateful for. Remind yourself why your life is good. This one tip alone can transform a dragging spirit into one that greets the day, motivated to be and give 100 percent.

Marcia Bagnall is Director of the Chemeketa Small Business Development Center and instructor of Small Business Management Program. The Small-Business Adviser column is produced by the center and appears each Sunday. Questions can be submitted to SBDC@chemeketa.edu. Visit the SBDC at 626 High Street NE. in downtown Salem or call (503) 399-5088.

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New Year is a Good Time for Changes

January 3rd, 2012 by Chemeketa SBDC

Another new year – another opportunity to focus on a strategic area of your business and make some good forward progress. If you have a sense that your company has had inconsistent results from your product lines or types of services, then you might want to consider working out a plan to correct and strengthen your company’s position.

Smart business owners continually are updating their processes after taking a hard look at their current situation. What difference might some of these action steps make in your business?

1 Conduct an operational analysis by type of business and/or type of customer, and determine where profits or losses are derived. Don’t be surprised if you isolate an area that is draining your cash reserves. Next, consider all the implications of any actions you might take to correct the problem. Is the service or product actually a draw to customers because once they are in, they purchase goods from you that carry a healthy profit? If this is the case, then your loss might be, in reality, an advertising cost rather than a loss. Analyze.

2 Spend your time, money and energy on those areas of your business that bring in the best return. Advertise and sell the products that make the profits you need. You do not need to “slash prices.” You must learn to go after your best customer, not just anyone who happens by. Identify and sell to the customers who are truly the key to the future of your company.

3 Consider contracting out the business that shows borderline or no profits. A business that specializes in your unprofitable product or services might be happy to act as your subcontractor and you might both be able to see profits from the venture. You can increase cash flow simply by selling out inventory and equipment of an unprofitable line in order to concentrate on what you do well.

4 If you must terminate a phase of your business, do it over time and help your customers find alternative vendors. Good customer service requires advance notice. Don’t just take action abruptly; you don’t want to undermine your customer’s faith in the ability of your company to provide support for those lines you do keep.

5 Promote what your business does well. Your company has a story to tell. It includes who you are, how you came to be where you are now (a strong, profitable company) and what you do well. Consider your business story and make sure that your public image is consistent with these facts. Accentuate the positive. Tell your story in words and actions. Brand yourself.

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Buying Locally Boosts Community

December 19th, 2011 by Chemeketa SBDC

Are you still shopping for the holidays? What a ridiculous question! Of course you are! And no doubt you have heard the “buy-local” messages that have been so prevalent this year. So, as if you needed them, here are a few reasons to do your shopping with local merchants. Make everyone’s holiday season a little brighter, right here at home!

-Practicality and convenience. First, you usually can see the item before you buy it to make sure it’s perfect. And then consider that your time and car expense can be saved by shopping locally. If you need to return it, you can avoid the hassle of packaging and shipping it to get it back to the store. You save time by not having to drive long distances to exchange or facilitate the return. Need to make a special request? In a small business, the decisions are made locally; no waiting for “management” in some other location to decide if your concern warrants attention.

-Environmental reasons. Not driving all over the place saves fuel and cuts down on air pollution. You also eliminate the wasteful packaging (Styrofoam peanuts, plastic wrap, etc.) that comes with items you order online and have sent to you.

-Community support. I have to admit, this is my favorite reason. It has been reported that a locally owned business returns approximately 80 percent of each dollar spent back to the community, and your dollars spent in locally owned businesses have three times the effect on our community as dollars spent at national chains. Your dollars are kept in your community. This creates more commerce and more jobs here. Likewise, local stores pay taxes and in doing so help support a stronger infrastructure in the area. Many local merchants support your fundraisers and community events, but they need your consumer support in order to continue to do so. Remember that you shouldn’t complain about the schools, the roads, and local services if you don’t support your local businesses.

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Entrepreneurship 101 Series – January and Febuary

December 13th, 2011 by Chemeketa SBDC

Entrepreneurship 101 Series

Developing your business idea and need more information on how to start? You’re not alone! This series covers all the essential information you need to make an informed decision about moving forward with your business idea.

1st Tuesday: Self-Employment — Am I cut out for the life of an entrepreneur?
We’ll explore what it’s really like to be self-employed and how to know your weak spots to ensure your business’ success.

2nd Tuesday: Economic Feasibility – How do I know my idea will fly?
Most business owners are confident their idea will work, but don’t know why. This class will give you more certainty.

3rd Tuesday: Rules and Regulations – How to keep the government happy?
With business comes oversight. Learn where to find out what rules and regulations apply to your business idea and keep yourself out of trouble.

4th Tuesday: Financing & Loans — How do I fund my start-up?
There’s a lot of misinformation about grants and loans out there. Come get the complete scoop so you can plan your start up finances with confidence.

Time: 2 - 3 pm
Instructor: Jennifer Hofmann
Location: Chemeketa Center for Business & Industry, 626 High Street NE, Downtown Salem
Cost: FREE
Registration and Information: 503.399.5088

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Think Before Buying a Business

December 12th, 2011 by Chemeketa SBDC

Have you been considering buying a business recently? Perhaps someone you know is selling theirs and you would like to try your hand at running it? There are several important considerations before you jump on the opportunity. Think them through and make an informed decision before proceeding.

First, what is your experience and background in running a small business and in this particular industry? If you have never owned a business before it is very helpful to look for one in your particular field of expertise. And, generally, a bank would never consider loaning you money for a business in which you have no experience.

Next, look at the business itself. Why is it for sale? If it is as great as the seller claims it to be, why sell? Why not hire a manager, keep it in the family, or even lease it out? The reasons are rarely simple. The sale requires more research than just the seller’s explanation. There will be both personal and professional reasons. You job is to understand and to make your risk decisions accordingly.

What are you actually buying? How does the price tag spread across the assets of the business? What is the condition of the equipment? What is the true replacement value of the furniture, fixtures and equipment? What would you need to pay for similar assets on the used market? What assets are not staying with the business? Are any of these departing assets critical to success of the business?

Make certain that you are not (unintentionally) buying the business debt. At times the owner will sell accounts receivables along with the accounts payables. How old are these receivables? Are any actual bad debts that you can never collect? How old are the accounts payables? Has the business not paid their suppliers and therefore are on cash on delivery? Check the amounts and ages of the accounts receivables and payables — even it you are not “buying” them.

Look at the financial statements and summaries for trends in income. Does this business have the ability to keep its current market share and remain competitive? What will keep the customer-base coming back? Can they be easily lured away by your competitors? How many existing customers will the business actually lose with a change in ownership?

How much additional money must be invested in the business in order to make the changes you think are necessary?

This business may be running profitably now and yet still not be able to sustain the debt load (bank loan) if you have to borrow money to purchase and run the business.

The last three to five years of financial statements and tax returns (ask to see both!) can be an indicator of whether the business has been well run.

If you are told that the financial statements don’t really reflect the true value of the business — that, in fact, much of the profit is “hidden” — walk away.

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Strive to be Active, Engaging Online

December 5th, 2011 by Chemeketa SBDC

Everyone has a Facebook page for their business, right?

Sure, many business owners have created a page in an attempt to take advantage of the more than 800 million active users on Facebook — and hopefully engage someone from this enormous crowd as customers. The problem is that many business owners don’t do much beyond the creation phase. They expect that once the page is in place, it can be a self-sustaining space that will not require their continued attention and efforts.

This couldn’t be further from what is required in order to have a successful business page on Facebook. It’s hard to blame people for thinking this way considering that marketing schemes before the Internet (and especially before the rise of social media sites) were all linear and required little or no feedback. Whether it was a newspaper ad, poster, TV commercial or billboard, the message came in a top-down fashion from organization to potential customer and was not able to accommodate public discussion on the spot.

The beauty, and the risk, of social media and the Internet is that people can engage with you and your product or services in real-time. Social media appeals to our basic social instincts as humans. Humans arguably are the most communicative, cooperative and culturally-competent species. It is for these reasons that people engage with social media sites like Facebook. It excites people and draws us in because of the potential to connect with, be understood by, develop relationships with and learn more about other people. It is important to keep this in mind when creating and managing your Facebook business page.

Facebook users are engaged and willing to invest significant time on the site but don’t have a clear goal in mind other than to connect. If you aren’t trying to actively engage people with your page, you’re doing it wrong. Ask yourself “Would this information actually benefit someone?” before your next Facebook post. Even better, think of people you know and ask yourself if the information would be beneficial to them. Then frame the information in a personal way as if you were offering advice to a friend who needed it. The people who are interested in your business are people you want to help, anyway.

If you change your mindset from thinking of people as potential customers and instead think of them as people in a community to engage, you probably will notice that people want to engage with you and start to build trust and loyalty in your brand. Create a few simple rules by which to live, such as replying to every single wall or photo comment and posting an interesting link, video or photo every day. Build a community around your business and don’t forget that it isn’t all about you — your customers can help each other with tips and advice and they also can help you! They just need the space that you can provide with your social media sites.

April Simmons is an Americorps VISTA volunteer serving with the Merit Program at Chemeketa’s Small Business Development Center. Questions can be submitted to sbdc@chemeketa.edu. Visit the SBDC at 626 High Street NE in downtown Salem, or call 503-399-5088.

Posted in Marketing Ideas, Small Biz Management | Comments Off

Negotiations – Getting to YES

November 29th, 2011 by Chemeketa SBDC

David Landis, former Nebraska State Senator, award winning teacher, and skilled negotiator will present this workshop that will provide experiential learning to develop your negotiating skills.

Crafting agreement
Creating mutual gain
It’s not about winning, it’s about reaching objectives

Date/Time: January 4, 9 am to 4 pm
Location: Chemeketa Center for Business & Industry, 626 High Street NE, Downtown Salem
Cost: $125
Registration and Information: www.thechinookinstitute.org or 503.304.9401

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Year-End Numbers Can Aid Plans

November 28th, 2011 by Chemeketa SBDC

Preparing for the end-of-year wrap-up (or frankly any time, but why not now?) is a great time to take stock of your business. Naturally, you want to do everything you possibly can to ensure the survival and growth of your company. One of the greatest skills you bring to the table is the understanding, tracking, and use of numbers to manage your business.

Although you may feel you aren’t good at math, or don’t know accounting, or can’t figure out the computer — you are probably selling yourself short. Anybody can work with numbers and the kind of number tracking you need to do here is not magic. And you are the expert on your business. Nobody else is as motivated or informed as you are to get the numbers working for your business.

First, get a financial snapshot of your business.

This should be simple. It is meant to be easy to prepare and able to be digested by you in no more than five minutes. The point is to get the quickest possible handle on key aspects of your operations. You may decide that a monthly snapshot is adequate; some owners want to see this on a weekly basis. It is used to determine your cash reserves, your accounts receivable status, inventory levels and to compare trends. The financial snapshot should include the following categories: Current Assets, Inventory, Current Liabilities, Fixed Monthly Expenses, Loans Outstanding, Monthly Sales to date, and Yearly Sales to date.

Second, cash flow statements that are regularly updated.

Projecting cash flow is one of the most important ways you can use numbers to manage and grow your business. As you begin this exercise, keep an Assumptions Sheet on which you list all the assumptions you used to develop your numbers. This way the numbers will have meaning and you will know how you got them.

Next, project your monthly sales for a full year. From these projections, deduct your monthly expenses. You can divide expenses between fixed (same every month) and variable (those that change with volume of sales). The balance is the monthly operations. To that you will add the monthly cumulative cash position (it looks very much like your checkbook) adding last month’s balance and determining the next month’s beginning balance. To this projected cash flow, you will compare actual numbers and determine where you stand in relationship to your plan.

Third, conduct a cost analysis of your product/service.

Understanding the cost of selling your product/service is critical to understanding the cash position of your business. There are many different opinions of what should go into cost of goods sold, and each business will vary — the important thing is to be consistent and to include those costs that are directly related to the expense of selling. What is “left over” is the contribution margin to pay the fixed cost of doing business, and after that your profit.

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Are you a Target? Prevent Crime In and Around Your Business

November 23rd, 2011 by Chemeketa SBDC

Today’s business owner must be knowledgeable about how to start, run and lead a successful business. This includes the daily business operations, but also a long term plan in the prevention of crime on your property.

Join the Salem Police Department to find out how to reduce crime in and around your business through proven concepts to “design-out” crime. Come and learn about:

Physical environment (landscaping, fencing, locks and lighting)
Behavior of people (influencing behavior before something happens)
Productive use of space (creating a workplace that is designed for its use)
Crime/loss prevention

Date/Time: February 9, 11:30 am – 1 pm
Location: Chemeketa Center for Business & Industry, 626 High Street NE, Downtown Salem
Cost: FREE
Registration and Information: 503.399.5088
Instructor: Officer Mark Jantz

Officer Jantz is a ten year law enforcement veteran with certification in Crime Prevention through Environmental Design. His expertise in applying those techniques range from residential to park projects and business to non-traditional commercial spaces. Officer Jantz is a certified instructor through the Oregon Department of Public Safety Standards & Training and is currently assigned to the Investigation Division’s Crime Prevention Unit.

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