PROFESSIONAL ASSISTANCE

The importance of professional assistance cannot be overstated.  There is no substitute for professional services to keep a business going and growing.  There are professionals available to assist with every aspect of a business and able to determine what will best serve specific business needs.  The costs incurred in hiring professional consultants often discourage business people from obtaining professional assistance, which can be a fatal business mistake.  The expense of using skilled professional consultants is insignificant when compared to the costly after effects of poorly prepared or incomplete documents.  Listed below s a “core group” of professionals most business people need.

RECORD KEEPING

Accurate and complete records help monitor the business and plan for the future based on factual financial knowledge rather than guesswork.  There are a variety of records and record keeping systems a business can maintain.  Trade associations can often provide guidelines or simple accounting records tailored to a particular business.

Professional accountants can be indispensable to a new or growing business.  An accountant not only provides a record keeping service for a business, but can also provide important advice on taxes, cash flow, credit and systems management.  Every business should have up-to-date records, which provide the following information:

• Accurate and thorough statements of sales and operating results, fixed and variable costs, profit or loss, inventory levels and credit and collection totals;
• Comparisons of current data with prior years’ operating results and budget goals;
• Financial statements suitable for use by management or submission to prospective creditors and investors;
• Tax returns and reports to regulatory agencies; and
• A method of uncovering employee theft, material waste or record keeping errors.

Have a formal accounting system that produces monthly reports.  Compare the reports to the finance plan and adjust the business activity accordingly.  If the business is more profitable than the business plan predicts, adjust the business plan.

The best product or service in the world will not guarantee success for your business.  Potential customers must purchase your product or service in order for you to survive and grow.  Developing and implementing a marketing strategy is a necessary process for a successful business.  This process begins as you start your business, and it must remain an ongoing process throughout the life of your business.

Marketing is neither sales nor advertising, although both of these may be part of a marketing strategy.  Instead, marketing is the thought process by which you:

• Identify the product or service you really sell
• Identify potential customers for your product or service
• Identify your competitors in selling to these customers
• Understand the basis on which those potential customers make buying decisions
• Know why customers will choose to purchase your product or service instead of your competitor’s
• Determine the most efficient and effective methods to reach these buyers before they make their purchasing decisions
• Identify methods to deliver your product or service
• Develop an action plan

IDENTIFY THE PRODUCT OR SERVICE

The key is to identify your “market niche,” not only in terms of the services provided, but in terms of needs fulfilled.  For instance, a residential lawn service provides lawn cutting, fertilization, etc.  One need this business fills is for convenience on the part of “time poor” homeowners.

IDENTIFY POTENTIAL CUSTOMERS

A potential customer is one whose needs may be filled by your product/service, and who may reasonably be expected to consider your business as a source of this product/service based on price, location and other factors.  Everyone in the world is not a potential customer; you must focus on an attainable and realistic portion of the market.

IDENTIFY YOUR COMPETITORS

A competitor is a business who does the same service, or sells the same product as your business; they may or may not have a similar business.  For instance, companies providing guard services to warehouses and those selling alarm systems to warehouses are to some extent competitors, even though they are not in the same industry.

UNDERSTAND WHY CUSTOMERS BUY YOUR PRODUCT OR SERVICE

Customers buy different products or services for several reasons, including:

• Price
• Quality
• Convenience
• Prestige

Also, understand the basis on which customers make buying decisions related to your type of product or service.

KNOW WHY CUSTOMERS WILL CHOOSE YOUR BUSINESS

Based on why customers buy your product or service, you must determine the nature of your competitive advantage.  If your potential customers buy solely on the basis of price, are your prices the lowest?  If not, how will you compete?  Be cautious in this analysis.  Your potential customers probably have established buying patterns which do not include your business.  You must give them sufficient reason to break these established patterns and buy from you if your business is to succeed.

DETERMINE THE MOST EFFICIENT METHODS TO REACH BUYERS

Having determined why potential customers buy your type of product or service and why they will choose you, you are in a position to identify how they make their buying decisions.  Do they typically buy because they’ve seen an advertisement in the telephone book or because they have driven by your place of business?  Is this type of product or service generally purchased on the recommendation of another individual?  Knowing how people “will” find you ensures that your marketing dollars are spent in the most productive way possible.

DETERMIN EFFECTIVE DELIVERY METHODS

The most enthusiastic purchaser is unlikely to become a repeat customer if the product or service does not live up to his/her expectations or if it is not delivered in a timely fashion.

DEVELOP AN ACTION PLAN

You know what you need to do.  Now you must develop specific, deliverable steps that will enable you to do it.  For assistance in developing your own marketing plan, contact your local Small Business Development Center.  You may wish to request a copy of the “Small Business Guide to Effective Marketing Communications.”

GETTING FREE PUBLICITY

Carefully read the publications in your area from front to back every day for a week.  (Don’t forget the magazines, newsletters, throwaway papers and other publications that cross your desk.)  After a while you will begin to see a pattern of reporting that repeats on some periodic basis.

For example, Internet on Monday, stocks on Tuesday, franchise information on Wednesday, staff promotions on Thursday and so on.  Select those sections in which you feel your business information might fit and start a collection.  Ask yourself questions like: “Why is this here?”  Or “For what audience is this written?”  Or “Why is this important to the reader?” (While doing this, note how much space is given to each section and the length of each article or bit of information.)

Write a submission:  Don’t try to write the article for the publication, you’re not in that business.  Write information that fits the publication and leave the rest to the editor of the publication.  Be sure you tell: who, what, when, why, where, how and how much.

Use a paragraph for each:  Include one or more quotes from you, the president of your company, the person you are writing about or an authority in the field.  Make sure their comment is relevant, and keep it short and simple.  This way, the editor can pick and choose.

Format:  Double space everything and leave at least a one-inch margin on both sides.  Number the pages, and center the word “more” at the bottom of each page.  Put “end” at the end.  At the top of the page write the name of the person from whom more information can be gathered, and be sure you let your staff know to notify that person immediately if they get a call.

If the information is time-dependent, put the date and time of the event at the top.  Write today’s date there as well.  Don’t forget the company name, address and phone.  When you meet with the editor for the first time ask how he/she would like the information presented, and follow their guidelines to the letter.

Newspapers have very tight deadlines, and if a critical bit of information is needed and you’re not available, your article may not get published.  Don’t bother to include photos unless they are dynamic action photos.  Most publications have a staff photographer that will visit your place of business if a photo is required.

SMALL BUSINESS ADMINISTRATION RESOURCES

The United States Small Business Administration (SBA) has a wealth of information and services for the small business owner.  The SBA website has the “Small Business Classroom” which has several classes on starting and managing a business available for free.  These classes are designed to be easy to use and available 24 hours a day with topics on most in demand by small business clients.  SBA’s On-Line Library provides nearly 60 downloadable publications covering a variety of business topics including starting a business and business plans.  The SBA website also maintains a “Calendar of Events” listing training and other programs by state with details and contact information.

SMALL BUSINESS DEVELOPMENT CENTERS (SBDC)

Located throughout Michigan, Small Business Development Centers (SBDC) assist new and existing business owners in a variety of areas.  Trained business counselors assist people interested in starting their own business with the development of a business plan, market planning, site selection, financial projections, and licensing requirements.  Resources including computer software, market-specific data, business books, and videos are available at each SBDC to help new entrepreneurs do research and plan for a new business.

Through SBDC staff and private sector consultants, businesses can receive free one-on-one individual counseling in accounting and record keeping, financial statements, problem solving, sources of capital, government procurement and many other areas.

SERVICE CORPS OF RETIRED EXECUTIVES (SCORE)

Both working and retired executives and business owners donate their time and expertise providing free business counseling and low-cost workshops.  An important part of the SCORE service is business start-up counseling.  SCORE volunteers also provide pre-business workshops and workshops targeted to growing businesses.  SCORE counselors are located throughout the state and are generally housed with the Chamber of Commerce.