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The Business SCORE     By Jim Frichette

The new business person faces many obstacles and uncertainties when trying to start a business. How do I incorporate? How do I get financing? Is my idea patentable? Can I register my tradename and trademark? What is a business plan? What is cash flow? Where can I get help? Many of these question can be perplexing to someone just starting a business and SCORE can provide answers and assistance to these and other problems.

There are useful Small Business Administration and SCORE publications available to aid new businesses and entrepreneurs. Many are available through your local SCORE office as well as on the Internet. Two very useful sites on the Internet are accessible through the following Internet  addresses:

U.S. Patent Search Page provides an excellent search engine for existing patents.
http://patents.uspto.gov/access/search-bool.html

U.S. Trademark Search Page allows you to determine if your trademark is available.
http://www.uspto.gov/go/tac/doc/gsmanual/search.html

Assistance will be available weekly for persons interested in meeting with a SCORE counselor about business problems, including financing, cash flow, business plan, sales/marketing, personnel or starting a new business. Our Mission is to provide assistance to the Kittitas County area small business community with counseling, workshops and mentoring services for start-ups and existing businesses with particular problems/needs The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment.

SCORE is an Equal Opportunity Program without regard to race, color, religion, sex, marital status, national origin or handicap. Special arrangements for the handicapped will be made, if requested in advance. SCORE is a joint venture with SBA (Small Business Administration)

E-mail ---score@ellensburg.com         SCORE Web Page--- http://www.ellensburg.com/~score

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The Business Plan     By Jim Frichette

When planning a new business venture, a primary consideration is to organize a "Business Plan" to formulate in your own mind the key issues and direction for your business. Once your focus and objectives are clear it than becomes much easier to convince others of your ideas and your grasp of the business opportunity.  This is especially important when making presentations to bankers, venture capital investors, strategic partners or even potential customers.

A good "Business Plan" consists of at least 10 parts including 1/ Business description, 2/ Product or Service,  3/ Competition, 4/ Customers, 5/ Marketing Plan, 6/ Sales, 7/ Pricing, 8/ Operations and Production, 9/ Management and 10/ Financial Information. Understanding these elements and their relationship to a successful start in business is extremely important to you and to almost everyone with whom you inter-react. Further, they provide the rudder to guide the business towards the desired objective,  help make decisions along the way to prioritize goals and use the limited resources in the most effective way.

This is frustrating. I want to start a business but I'm afraid to ask dumb questions or, if you are too shy,  try e-mail. Send your business questions to — score@ellensburg.com --- and we will answer. This is part of many free services available from your local SCORE chapter serving Kittitas County.

There are useful Small Business Administration and SCORE publications available to aid new businesses and entrepreneurs. Many links are available on the Internet. Two SCORE sites on the Internet are accessible through the following Internet  addresses:

Try the Mid-Columbia / Kittitas County SCORE page for useful local business information:
http://www.ellensburg.com/~score
The National SCORE page is:
http://www.score.org

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment.

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The Importance of a Marketing Plan    By Jim Frichette

An important part of a new business startup is an in depth understanding of the market in which you hope to survive and prosper. It is vital that you have a clear conception of the customer, the sales environment and the competitive obstacles to achieving your sales success. An essential part of the "Business Plan" is a will researched and thought out "Marketing Plan" which will help you create the sales revenue necessary for your enterprise to flourish. A strong "Marketing Plan" is also vital when discussing your business enterprise with bankers,  joint venture partners, venture capitalists or other investors.

There are ten key questions to consider in preparing a "Marketing Plan":
1. What is the product(s), or service(s), you intend to provide?
2. Who are my current and potential customers? (This will help determine to whom your advertising should be targeted);
3. What benefits will my product or service offer those customers? Why will the customer buy your products? (This will help determine the content of your advertising);
4. What is my market area? City, County, State, Northwest, USA or Global
5. What is the growth history, size of market, projected future growth, and your share of the market and growth?
6. Who are your competitors? List your competitors names, addresses, strengths and weaknesses, market share, reputation, quality, promotion and pricing.
7. What is your market development strategy? How will you promote your product?( Advertise in various media, trade shows, brochures/catalogs, direct mail, Internet, or word of mouth)
8. How do you plan to contact your customer? (Retail Sales, Internet Sales, Wholesalers, Direct Sales, Agents)
9. What is your sales forecast? - Now that you have described your products,  customers, competition and marketing plans in detail, it is time to attach some numbers to your plan. For the Sales Forecast prepare a projection for the first year by doing your forecast month by month which will help you focus on the details of your sales plan. An accurate sales forecast is the key to determining whether your new venture idea is really feasible. The forecast should be based on your market research and, when available, upon industry averages.
10. How will you measure results in the following areas?: a - Quality of product or services provided, b- Market share obtained, c- Customer satisfaction, d- Profitability, e- Growth rate

There are two sites that are very useful in developing your "Marketing Plan" and other elements needed for a successful business plan.

A beneficial site for an expanded format for developing a strong "Marketing Plan" link to
http://ellensburg.com/~score/market2.html

Washington Small Business Development Center, Washington State University Pullman, WA 99164-4851 (Tel) (509) 335-1576.  To help individuals with knowledge for  success in small business.
http://www.sbdc.wsu.edu

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.

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Are You Ready To Be Your Own Boss?  By Jim Frichette   SCORE Counselor

There are about 23 million small businesses in the United States today. And,  approximately 30% of the population is thinking about starting a small business. Are you an aspiring entrepreneur? Is small business ownership your dream? If your answer is yes, be prepared. The most common reason for small business failures is the lack of management skills. The good news is management skills can be obtained through training, work experience and the advice of a business counselor.

As you consider your personal and business goals, ask yourself tough questions. Are you a self starter? Do you have the stamina to start a new business? Many  entrepreneurs say that there is no 40-hour work week, much more like 50-70
hours. Do you have capital or access to capital? Can you plan the course of your business for the first year? Are you ready to be both the company thinker and doer?

Look at resources to help you prepare for business ownership. Opening a small business is a big risk, which does offer the potential of a significant payoff. Profit, personal control, pride of ownership and self reliance are the potential wins of
entrepreneurship. Small businesses do succeed. In our country small businesses generate more than half of all sales in America. If you are a risk taker, small business ownership may be for you.

Plan and prepare to succeed in business. Small business success is not random; it is the result of a concentrated effort. Ask yourself the following questions. If you answer yes, you have the basic qualities of an entrepreneur. If you answer no to any of the questions, evaluate these as areas where you can build my skills?

 - Is my product or service different from others on the market?
 - Do I have adequate financial resources or access to capital?
 - Do I have management experience to help me run a business?
 - Am I ready to commit to the demands of owning a business?
 - Can I take responsibility and make effective decisions?
 - Am I in good health with the stamina for the job ahead?
 - Do I have the encouragement and support of my family?

If you need to differentiate your product or service, gain management experience, or gain access to capital, ask for help. Entrepreneurs are often individualists who want to do it all on their own. Before you take the plunge into entrepreneurship, take advantage of every resource that can help you succeed. The savvy entrepreneur looks for ways to
succeed by tapping into existing resources, so his or her time can be spent on crucial issues and not be spent working on getting past a steep learning curve.

The best way to start a business is with forethought. In your mind you have a plan for success. Take the time before you invest in the business start-up to put your ideas in writing. Begin developing a business plan. SCORE is considering a Kittitas County workshop described as "The First Analysis of a New Business Venture," and is designed for people thinking about going into business and want to evaluate the viability of their idea, business skills and temperament. The plan is for a 2.5 to 3 hour course and the cost $20.00.  If you would like to attend such a workshop e-mail or call SCORE.

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.

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Does Owning Your Own Business Sound Like A Dream Come True?    By Jim Frichette - SCORE Counselor

If you are thinking that being your own boss, running your own company, and earning your own way are great ideas, then explore the possibilities. More than 23 million Americans own small businesses. About 800,000 new businesses are opened each year. From engineering firms, to bake shops to home offices, small business is rapidly growing. You can become one of 23 million risk takers and success makers.

Small business accounts for 50% of all private sector innovations. Consider this, if you are creative and have a bright idea-test it. Don't start a small business without planning and forethought. But move forward. Opportunities exist for the dedicated, innovative and motivated entrepreneur. Technology continues to open up new avenues for success. There are fewer than 20 employees at more than 40,000 high tech firms. High tech is an area of growth for entrepreneurs. Whether you plan to open a high tech business or simply utilize high technology in your operations - you are on the right
track.

Entrepreneurs are dreamers who see all the possibilities. Very quickly the successful dreamers translate those bright ideas into plans for profitable realities. Business ideas are exciting and right along with the ideas, bring your practical emphasis on making money. Small business is a livelihood and every. idea should run a litmus test for profitable viability. Can you make money with this business? The answer needs to be yes, before you go any further. If you are considering entrepreneurship, gather information and obtain advice.

Right here in your community you can access a free and confidential resource--small business counseling. The SCORE Association (Service Corps of Retired Executives) offers small business counseling and mentoring to aspiring entrepreneurs and business owners absolutely free-of charge. SCORE is a nonprofit organization dedicated to the
formation, growth and success of small business.

Meetings are generally held in SCORE offices because of the amount of reference material on file for your use. During your first counseling session, ask about the free small business planning workbook "Small Business Start-Up Information Package. " SCORE offers this workbook as a free resources to any aspiring entrepreneur who commits to three counseling sessions. During these pre-business counseling sessions, the counselor and the aspiring entrepreneur discuss the elements of the business plan and begin putting those ideas in writing. You are the decision maker in your new enterprise. SCORE counselors act as guides, advisors and information resources. You are the captain of your ship. SCORE offers a navigator to help you determine the course you will set as a business owner. - SCORE is comprised of more than 12,000 volunteer business counselors. All small business counseling is provided at no charge. Local SCORE chapters also offer small business workshops and seminars, which do charge modest fees. Since 1964, SCORE has provided counseling to more than 3.5 million Americans.

SCORE is considering a Kittitas County workshop described as "The First Analysis of a New Business Venture," and is designed for people thinking about going into business and want to evaluate the viability of their idea, business skills and temperament. The plan is for a 2.5 to 3 hour course and the cost $20.00.  If you would like to attend such a workshop e-mail or call SCORE.

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244  for appointment or email questions to score@ellensburg.com.

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Does Franchise Ownership Interest You?                                          by Jim Frichette

Franchising is often described as a business or industry. It is not. Franchising is a method of doing business. You can
become a business owner under a franchise agreement. Franchising has been adopted and used by a wide variety of
industries and businesses as a means of efficient expansion. Under a franchise system, an individually owned business is
operated as though it were part of a large company. The parent company acts as the umbrella organization. This company
authorizes the franchise outlets to use its trademark and benefit from the image of a larger organization.

Generally, the franchisor or umbrella organization will dictate standard design for business facilities; specify the use of
certain equipment, products or services; and provide instruction on operating the franchise in accordance with the
standards set forth for all franchisee operations. While most people think of a franchise as being product or service
oriented, such as the case with fast food, restaurant or hotel businesses, franchises may also be found in the wholesale
and manufacturing industries.

Franchising offers many advantages to an entrepreneur. As a small business person you can "buy into" a well-established
venture, with a proven formula for success. This offers you significant odds for success, when the franchise formula is
carefully followed. The franchisor should provide solid advice (often mandates), site selection, management, advertising,
accounting and product research and development to aid the overall franchise organization's success. Greater efficiency
and profitability result from uniform coordination.

Is the concept of a franchise right for you? To make your business a success, you must be willing to accept the orders,
vision and procedures set forth by the franchisor. Any ideas you have for customizing the proven formula must typically
be approved by the franchisor. In a sense, you forgo some of the independence you may have sought as an entrepreneur.
Of course, the trade off in autonomy for the support system must be weighed against the increased chances for success.

As in any small business, long hours and hard work are required. There is usually a long payout period in the business.
With many franchises, it's likely to be three or more years before you can begin to take money, other than your salary,
from the business. However, there is no guarantee that you will earn a profit any sooner than if you started a small
business on your own, rather than going for franchising. Carefully evaluate whether a particular franchise is right for you.
To request a free copy of the pamphlet "A Consumer Guide To Buying A Franchise," call the Federal Trade
Commission; Public Reference Branch at (202) 326-2222, stay on the line for an information specialist-do not enter the
voice mail selection system for this item.

The following factors should be considered when evaluating franchise opportunities.

* How much money can you invest? Before you invest in a franchise, make sure you can afford any fees charged by
the franchisor. The initial investment may require anywhere from a few thousand to several hundred thousand
dollars.

* Do you have the background necessary to make the business a success? Do you have experience in whatever field
you are going to venture into? The franchisor will want to be assured that its good name and reputation will be placed '
in good hands with you as the franchisee.

* What are the terms of the franchise agreement? It is in your best interest to have your lawyer, accountant and a
business counselor examine the franchise agreement carefully. Don't be hasty. Fully evaluate the agreement before
committing to the business endeavor.

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.

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Prepare A Complete Loan Application     by Jim Frichette

It seems simple, if you want a bank to loan you money, then you want to present complete information and a strong case for your business as a safe investment for the bank. Small business owners are indeed turned down for much needed loans. Often the bank's decline can be traced back to an incomplete or inaccurate loan application, business plan and/or financial statements.

Loans are often turned down because the loan application or supporting documents are poorly prepared. If you find yourself in a cash crunch, you want to obtain a loan quickly and efficiently. To gain the confidence of the lender, you must demonstrate both your seriousness and preparedness. Loan officers look for red flags in packages. A well prepared package that accurately reflects the business and provides all of the information requested, helps to indicate your seriousness about receiving the loan and being both willing and able to repay the debt.

Make bank contacts long before you need them. If you're starting a business, get to know the loan officers at your bank. They will be more comfortable making a loan to a person they know. Early meetings give you a chance to tell loan officers about your business and its aspirations. You begin laying a foundation for a business relationship. A good, long-term banking relationship brings valuable goodwill, which can improve you ability to do business. Prepare for the loan process early. Start by obtaining a loan application. Know what the bank will expect of you, before you plan to ask for money. Several common elements of a loan application package appear below.

* The Company's Business Plan. This plan is a complete description of the nature and type of your business. The plan includes resources available to you and how you plan to put resources to use, in order to meet your goals. Specific goals, time lines and financial objectives should be included in the plan. In addition, the plan should include
a one-page executive summary that provides a synopsis of the overall plan. Your business plan may average three to thirty pages in length, depending on the complexity of the business. Your plan should include an assessment of your competition and your role and strategy in the marketplace.

* The Company's Balance Sheet. The balance sheet is a listing of the assets and liabilities of the firm. This statement gives the bank an idea of the stability of your firm. If the business is a start-up, include a statement of assets and start-up capital that will be brought to the firm. This statement may include your own financial contribution, as well as that of a partner or investor.

* The Company's Cash Flow Statement. This statement will show how much liquid cash is available within the business. It provides a snapshot of how sales and expenses affect your operating cash on a monthly basis. The cash flow statement provides the bank with a picture of how much cash you have on hand and whether you will be able to assume an additional monthly expense in the form of a loan payment. A start-up company will often be asked to prepare a cash flow projection. This start-up projection will take into account the tendency for sales to begin slowly at first and build over time.

* Your Resume. If the loan officer does not feel you have the experience necessary to make a success of your business, you may have to provide a statement of your personal assets and pledge some of those assets as collateral for the loan. A lack of management experience is often cited as the main reason for small business failures. If you can demonstrate management skills that encompass: financial, operational and employee issues in your resume, then you build the bank's confidence in the amount of knowledge and skill you can bring to operating a business effectively. This resume is most often requested of start-up businesses; however, a business owner should be
prepared with his or her resume as well.

Whether you are currently in business or planning to start a new company, begin planning now. Even if you don't need a loan today, it is good business to prepare a business plan that outlines the goals and outcomes you expect from the business. The business plan takes your ideas and puts them in writing, so they remain tangible to you and become tangible to potential lenders.

If you would like to discuss loan application preparation or business planning, contact the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.

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Business Valuation Critical Before Purchasing A Small Business                  by Jim Frichette

Before you buy a small business determine its worth. This is a crucial business activity. If you purchase a business that is
overvalued, you paid more money than the business was worth. If you purchase a business that is undervalued, you may
have saved money up front, but is the business weak? Value is important; you want to look at assets, accounts receivable,
sales and balance sheets. Do not value intangible assets such as goodwill and reputation, while important you do not want
to pay cash for such items. The valuation of the business should also be agreed upon by the seller and potential buyer or
further negotiations are pointless.

There are two basic methods of evaluating a business: the appraised value of the assets at the time of negotiation and
future expectations of profits and return on investment. Appraisal of assets is the more common method of setting the
value of a business. The present value of the business is based solely on the value of its current assets. This method is
probably used so often because it is the simpler and more tangible method.

Since valuation of assets is more common, here is a bit more information about those assets, which are being valued. As
an asset the value of inventory carried on the books for merchandise is the price paid rather than the current value. This
can lead to assets being dangerously overvalued. Base inventory valuation on current value not purchase price. The total
inventory value could be grossly overstated, if the inventory is loaded with items no longer in demand or items whose
price has dropped. Establish the actual business inventory and it's current real value, not original purchase price.

Another area to give special attention is accounts receivable. Examine these accounts carefully to make sure that there
are not many overdue accounts, which may be uncollectible. Ask for a report showing the age of receivables, accounts
which are not due yet, due now at 30 days, overdue by 30, 45, 60, 90 and 120 days. The older the accounts receivable the
less likely the money will ever be collected. If the business has a large number of accounts at 45 days or 60 days, check
the payment history of the clients in question. Do those overdue accounts get paid by clients who routinely pay slowly?
This is crucial information, money you can't collect offers no value to the business.

Using future expectations as a valuation tool is risky. This method establishes a value for the business based upon the
future expectations of its profits and return on investment. The buyer looking at the business history and projections for
the future may opt for obtaining financial statements, business trends and forecasting of the businesses future based upon
its past performance. To obtain a clear picture of the business, both the potential buyer and the seller need to consider
factors such as trends in sales and profits, the capitalized value of the business and the expected return on inventory. Such
projections are not easy, but can begin with the preparation of projected profit and loss statements.

The buyer should always remember that the seller's own statements are likely to be overly optimistic and even overstated. The buyer must be wary of the business that looks too good to be true. For how long should these statements be projected? One year? Three? The best ways to decide is in terms of the expected return on investment. If it's estimated that the business should return 20 percent on the investment, then the investment capital should be returned in five years. On this basis, the projected statements should cover five years.
 
 

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County at the Ellensburg Business Development Authority - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.

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Attitude And Adrenaline Impact Business Growth                           by Jim Frichette

Small business is about success. The success of the American dream. The success of the entrepreneur who believes he or
she can make a new business idea a thriving reality. Sure, there is power in positive thinking. Don't discount it. Whether
a solo entrepreneur or a small business owner with a staff of 50, your attitude toward business will affect the success of
your business. The moment you become a business owner, you represent yourself, the business and expectations for
success. Your attitude and manner convey your confidence and commitment to small business. Be sure both embody a
can do outlook.

So many entrepreneurs have told me they get a charge from the challenge. They have that adrenaline rush that keeps
them going. The inner desire to succeed combined with the hard work of the real world makes all the difference. As an
entrepreneur, you never underestimate the competition and you never underestimate your ability to rise to the occasion.
Small business is dynamic and your energy level both real and perceived by others, influences how successful you will
be in the marketplace. In the small business world of modest profit margins, fierce competition and time constraints-
don't be guilty of the four cardinal can't do it ways of thinking.

 * I can't. I have no time - I'm busy handling what I have now.
 * I can't. There is just not enough money to do everything.
 * I can't. My competitors are making the market too tough.
 * I can't. Technology will only complicate my business.

Successful entrepreneurs are people of endless possibilities. Not every opportunity is seized. No, an unending supply of
funds are not available. No, competitors don't go away. And no, technology doesn't arrive without a learning curve. Yet,
those people you most admire in business, look not at obstacles but at opportunities. That spirit of can d~what can we
do today, what will we do tomorrow and how we will succeed is the essence of success.

Successful business people know where their businesses are going. They have a plan that they are willing to follow to the
letter, in order to achieve their clear goals. Mentally prepare for success. Develop the can do outlook. Be the motivator,
the dreamer and the real world implementer. Commit yourself to the balancing act of the world of possibilities and the
business realities. You set the tone for your business. Customers, colleagues, employees and lenders all look to you to
gauge the value and strength of your business. Your positive attitude and energy signal the vitality of this small business.

Every entrepreneur should have a sounding board outside the business-be it a colleague, friend or business counselor.
All three would be just fine. Get different perspectives. Gain energy from other's ideas, as well as your own. Contact the
SCORE Association (Service Corps of Retired Executives) and request free and confidential small business counseling.
SCORE is a nonprofit organization with 12,400 volunteer, business counselors who donate their time and talent to help
entrepreneurs. SCORE counselors help entrepreneurs develop business strategies, prepare business plans and brainstorm
new ideas.

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County with the assistance and cooperative effort of the Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com.

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Know Your Market

Market research is a systematic and objective way of determining who your potential and actual customers are and
gaining information to understand their needs, desires and most importantly- their behavior. Market research often helps define who wants to buy a product or service, who can afford to buy a product or service and who actually spends the money on a product or service.

You may find in a survey that nearly everyone may want a trip to Hawaii, for example. But, who can afford the trip? That
question narrows the field considerably. Next, who actually spends money on such trips? Again, the field of potential
buyers vs. real spenders is funneled down to a smaller pool of individuals. You need to know how large your potential
pool of customers will be, their ability to pay for your product or service and the history of spending that indicates the
likeliness that your product or service will sell in the marketplace.

Big corporations spend millions of dollars annually to study the marketplace. The small business has an edge. As a small
business owner, you are closer to the customer. The small business is often able to detect buying patterns and customer
desires (as indicated by special requests) more quickly and react almost immediately. Market research informal as with
in-store observances or formal via a survey or focus group can provide valuable information.

Market research gathers, focuses and organizes information about your market. It reduces your business risks by making
your business more responsive to the market, so you can keep them coming back to your store. Market research can also
help identify particular sales and profit opportunities, as well as indicating waning interest in a product line. You already
conduct some research as a part of doing business. For example, you use merchandise returns as a guide of products not
to restock. You watch what your competition is doing. And, you gather trade information from your professional or trade
association.

There is probably a great deal of published information available on your particular type of business. The Census Bureau
has a wealth of employment, income and demographic data available. You can download pages of information from the
Census Bureau's web site at http://www.census.gov. You can also call the Census Bureau's customer service center at
(301) 457-4100 to find out what publications and reports are available; the bureau may charge a fee for publications.

You can also conduct a focus group or survey yourself. If you have a slim marketing budget, this can provide some
valuable information. Remember that although helpful, self organized market research will not be as objective as outside
research. For added confidence in research results, consider hiring a advertising agency or market research company to
create, implement and report specific market research to you.

If you would like some free and confidential advice on market research contact SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County with the assistance and through cooperative efforts with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Your Time Is Money, Spend It Well

As a small business owner, you usually have more to do than time permits. Depending on the size of your business, you
may function as personnel director, purchasing agent, sales manager, accountant, advertising director and chief
operations officer. Your time is the most valuable commodity in the business, because you are the visionary that sets the
direction for the company's operation and growth.

You always need to be sure that you are using each hour as productively as possible. Hours of valuable time can be
frittered away on insignificant chores. The time you spend on things you enjoy may be the less important or productive
tasks. Find it within yourself to avoid simple, repetitive tasks that may be comforting, but don't utilize your full
expertise. As the owner, your vision, energy and expertise need to be focused on the product or service, market, sales and
profitable results. Those above mentioned goals alone are big time takers. Keep your energy focused on making the
money, which fuels the business and your income.

To use your time more efficiently begin to organize your thoughts, plans, files and activities. Start by keeping a daily log
of how you spend your time during a one week period. Note the amount of time you spend on small tasks or
interruptions, which take you away from important work. These distractions may be crises of the moment or an
unproductive phone call. After a week, you should see a pattern of effective activities, ineffective activities, time of day
for the most accomplishments, time of day for the least accomplishments, and the overall time commitment to high
priority vs. low priority items.

Once you have identified your time usage, evaluate each type of activity and the time spent on each. You should be able
to define which activities are important to operations and which activities are time stealers. Begin to decide what tasks
can be eliminated or minimized. Second, decide how these tasks can be better managed. Does more effective time
management mean omitting a task, streamlining a process or bringing on short-term help to handle specific duties.

After you realign non-productive or less productive tasks, plan to use your new found time. Block the time for analyzing
major operational decisions, future planning, or sales calls, etc. The time you have freed up will become busy again.
Make sure you identify the tasks you want to accomplish in that time period. Your time is money. When you are
planning, marketing, selling or delivering your product or service you are making money. When you are administering
the business, you are simply keeping the engine running. Your business should be driving down the road, full speed
ahead. Your energy is the driving force in the business; focus that energy so your time means more money.

If you would like to discuss effective time management for the busy entrepreneur, contact the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Include Public Relations In Your Marketing Mix

Good public relations is essential for any small business. It's an inexpensive way for your business to get noticed, create an
impression and be remembered by consumers. It's one of the best tools for making a positive impression and projecting your image. While large corporations may employ specialists in public relations to enhance their corporate image, small firms take a more do it yourself approach with a few basic guidelines.

Determine your desired image. Unless you know what impression you want to create with the public, you cannot design a good public relations program. Is there something unique about your business? Is your product line more complete than that of your competitors? Are your employees better trained or more customer service oriented? Have you been in business longer or had more experience than your competitors ? Are you more dependable than they are? All these questions should be considered when defining your public image.

Define your public. Unless you know who your actual and potential customers are in terms of location demographics, and interests there's no way of planning an effective public relations program. You must know the right media to use and the proper appeals to make in order to convey you message. Select your media. Local newspapers, for example, offer many more opportunities for exposure beyond paid advertisements. Newspapers often look for feature stories about small business, especially those offering a unique or unusual product or service. These articles can sometimes be devoted to a single firm, but more often they report on several businesses built around a common theme. get to know the business editor or small business reporter who covers such stories in your community.

The business section of the newspaper also offers many opportunities for exposure. Report news of personnel changes" such as appointments and promotions. Announce office expansions or news of an additional location. Feel free to send news releases about professional or industry awards you or your firm may earn. Encourage media coverage of special events. Don't expect automatic media coverage of an event simply because you write or telephone a reporter. There must be a community, news or business element to the story that would give it a broad appeal to readers in the local community.

Work closely with your local Chamber of Commerce and any other relevant local business, trade or civic group. Members of these organizations may be your prime market. A "how to" demonstration may be welcomed by one of these groups. If you have particular expertise in an area of business, you may be able to serve as a guest speaker on a business topic for a local professional group's meeting.

Participate in community events. A big part of public relations centers around interacting with the public. Be an active participant in your community. As time permits, make an effort to serve on local community boards. Be an active participant in the community. Part of being well respected centers around being someone who gives back to the local community. In the meantime, keep in mind that the bulk of your time should be dedicated to running a profitable business.

If you would like to discuss public relations, marketing or community relations, contact SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Y2K & Small Business

The clock is ticking and small business owners need to be aware of the mounting Y2K problem. Known by several names—the Y2K Bug, the Millennium Bug and the Y2K problem, it is poised to affect more than 5 million small businesses deemed at risk according to a recent Gallup survey sponsored by Wells Fargo Bank and the National Federation of Independent Businesses. According to the survey, few small businesses have taken care of the problem and 81 percent of the businesses surveyed plan to take no action to correct a Y2K-related problem before January 1, 2000. Find out what you can do to prepare for January 1, 2000.

What is the Y2K Bug?
The problem arises from the fact that millions of electronic devises have been programmed—in order to save memory—only to recognize the last two digits of a year, the "19" has been dropped. Therefore, on January 1, 2000, computers interpreting only the "00" will understand the year as 1900 not 2000—unless the problem is fixed. It is important because data processing systems used in all types of businesses rely heavily on dates and date processing. If the computer code does not recognize that one date is greater than another, it may not be able to process properly and may produce erroneous results. For example, if a loan is entered into a program with a start date of 1998 and a payoff date of 2005 (98 and 05), the program may subtract 98 from 05 resulting in a term of -93 years, rather than 7 years. This problem may put a business at risk because it could effect its cash flow, inventory, taxes, interest calculations, financial forecasting, customer relations, and many other areas.

Who is Affected?
Whether you call it the Y2K problem, the Y2K Bug or the Millennium Bug, its affects reach from companies using large mainframe computers to hospital intensive care units. Federal and state government, banking, insurance and manufacturing industries will all be affected by the Y2K program. Small businesses without Y2K compliant computer hardware or software are also at risk. Additionally, small firms with manufacturing, inventory and accounting systems where data dated after January 1, 2000 has already been entered.    Equipment with time-dependent embedded computer chips may be vulnerable, as well. This includes cash registers, telephones, elevators, refrigeration systems, gas and water facilities and security systems. Also, a wide range of manufacturing and production equipment. Small business owners should not forget their dependence on suppliers, customers, building managers and financial institutions. Be aware that a business that has addressed its own Y2K problem may still suffer consequences or fail because a key outside firm with its own Y2K problem fails to perform.

What Should Your Business Be Doing to Protect Itself?
Self-assessment. Find out whether or not you or your small business has a Y2K problem. No small business should assume that it is exempt from the Millennium Bug without proper testing. There is a Y2K Check List available on the U.S. Small Business Administration's Web site to help you determine the extent of your vulnerability and if you need assistance.

Take Action Immediately. Fixing most Y2K problems is not necessarily complicated, but it can be time consuming and labor intensive. Everyone is facing a deadline on this problem that cannot truly be moved—January 1, 2000. Be certain to act quickly if you determine you have a Y2K problem.

Stay Informed. Keep up-to-date on new developments related to the Y2K problem. Make realistic assessments based on what is central to your company's operations. Don't be stampeded into paying for remedies you don't need. Alternately, you may find it more cost-effective to purchase entirely new equipment than to repair what you currently have. Logging on to various Y2K Internet Sites is an excellent way to stay current.

Make Sure Your Vendors are Compliant. It is also important to ensure that your suppliers and those organizations that you rely on for continued business operations have addressed their Y2K issues. For suppliers, banks, credit card verification systems, landlords, service companies and others critical to your business, insist that they provide you with a letter certifying that they are on op of their Y2K program. Be sensitive to press reports of problems with banks, utilities, telephone and communication services; if you are concerned, with change companies or develop work- around strategies.

Tips on Contracting with a Y2K Specialist.
 If you believe that you need to contract with a Y2K specialist, start now. These specialists are in short supply and the demand and cost will rise dramatically as we approach January 1, 2000. We are very fortunate to have such capabilities in Kittitas County with InfraData Y2K Specialist. You can contact Ken Boettger of InfraData at e-mail  alpine@ellensburg.com or call 933-3063 for advise, consulting or service on your Y2K concerns. SCORE web site has some hints, Y2K Self-Assessment and Checklists for Small Business at: http://www.ellensburg.com/~score/y2k.html

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962- 7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Surf The Net For Small Business Information At Any Time

As an entrepreneur your time is limited. You are busy planning to open a business or managing the day-to-day operation
of your business. Even so, new regulations, business practices, trade association information, and Small Business
Administration (SBA) guaranteed loan information are all available with the click of a button. Technology provides easy
access to a wealth of information via the Internet.

Before you spend countless hours surfing for that useful piece of information, review the list of small business resources
below-all reachable on the Internet. Common small business questions often arise about how to protect products; how
to declare employee wages; how to file tax returns; and where to go for general small business information. Look no
further. The resources listed below can be very helpful and are available 24 hours a day via the Internet.

Patent & Trademark - Patents for inventions are vital to your business success. You should consider registering a
company trademark to protect that mark for your company. To find out more visit the U.S. Patent & Trademark
Office at http://www.uspto.gov. Easy-to-access information is available on a topic by topic basis. Forms can be
downloaded directly from the site, if you have Adobe Acrobat software. Access to the U.S. Copyright office is
available via a hotlink.

Wage Reporting - If you are an employer, you are required to report employee wages and taxes to the Social
Security Administration. For more information on accurate filing and year-end wage reporting, visit the web site
for the Social Security Administration at http://www.ssa.gov. Or call 1-800-772-1213 for a free copy of "The
Employer's Guide," a pamphlet with information on timely and accurate W-2 Wage reports.

Tax Filing - Both personal and corporate taxes are collected by the federal government. Be sure you are in
compliance with tax law. Consult with your accountant as appropriate. For quick, easy access to Tax Forms and
Information, visit the Internal Revenue Service Web Site at http://www.irs.ustreas.gov. Extensive information
and downloadable publications, tax forms and regulations are available.

Small Business Information - The SBA provides publications, business tips, SBA-guaranteed loan information and
abundant small business hotlinks on its web site. Information about women's business ownership, minority business
ownership, the Service Corps of Retired Executives and other resources are described on the site. The site is divided
into easy to use sections for starting your business, financing your business, and expanding your business. Visit this
web site at http://www.sba.gov.

Small Business Counseling - The SCORE Association (Service Corps of Retired Executives) has a nationwide
network of 12,400 volunteers in 389 chapters throughout the United States. These volunteers donate their time as
business counselors. Small business tips, success stories, access to counseling via email, and hotlinks to local
SCORE chapter web pages are on this site. Visit http://www.smallbusiness.apple.com. This web site, sponsored by
Apple Computer, Inc., provides a wide variety of small business resources and hotlinks to other web sites.

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a
cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Plan For Success,  Implement For Results

It seems so simple, decide where you want to go and then follow the map to get there. This simple concept is the
cornerstone of small business success. Small business is a risky opportunity, one which has the potential for great
dividends. Small business ownership is a thinking endeavor that requires you as the entrepreneurs to know not only that
you want to own a business, but what the business will be, how it will operate, and what results you expect short term and
long term.

The bottom line about small business ownership is this is your livelihood. For many entrepreneurs business ownership is
a dream. A dream that millions of Americans have made a reality. To take the step from dream to reality, begin with the
basics. A business plan and start-up capital are two basic elements of a small business start-up. The business idea needs
to be stated in clear terms, in writing. This clarifies the purpose of your business for you and for potential investors or
lenders.

If you plan to obtain a bank loan or Small Business Administration guaranteed loan to help start your business, you will
need a business plan. The business plan addresses your plan for doing business and exactly how money will be used to
finance the business, operate the business, provide an owner's salary and define the net profit resulting from the business
enterprise. Banks will generally require the business plan and information about start-up capital you - the entrepreneur - are bringing to the business. The more clear and thorough your plan, the better your chances for obtaining credit.

About 30 percent of the population is thinking about opening a business. Of those individuals about 4 percent actually go
into business for themselves. If you want to make a commitment to being your own boss, begin by investing your time in
developing a business plan. Through the business plan you are testing your idea, calculating how much you will have to
sell and at what price to break even and to make your enterprise profitable. This is information you want well in hand
before you take the risk and hold that grand opening.

A business plan describes the business, its product or service, marketing strategy, operating expenses, expected income
and a projection for future growth. A business plan may average 10 pages. Your idea and summary of the business will
be one page. This one page snapshot is the map that gets you started on your path to success. The details described in the
plan answer the questions about tangibles such as product/service, price and the cost of doing business.

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Choosing A Location For Your Store

The choice of your retail location can mean the life or death of your business. Many different factors need to be
considered before you commit yourself to a location. If you are in a business-to-business market, mail order business or
commercial operation-your location may not seek heavy foot traffic. However, if you are in a retail business, visibility,
easy access and community presence are important. Consider the following questions as you ask yourself what do you
need for a location that will bring more business to your doors?

1/ Define the type of retail business you want to operate. What sort of business do you want and what target market do
you intend to appeal to? Unless you have these basic questions answered in your mind, you will not be able to make a
solid decision about the appropriate location for generating revenue for the business.

2/ Obtain location demographics. You can visit your local library, chamber of commerce or city hall to gather
information about the neighborhood demographics, such as population level, age and income. You can also obtain
this type of information from the Census Bureau; visit their web site at http://www.census.gov or call the customer
service line at (301) 457-4100 to order reports that interest you-you may be charged a fee for reports.

3/ Is your potential location and store compatible with other stores already in the area? Neighborhood business can help
your store or hurt it. You've got to understand what types of businesses generally cluster together and which are
incompatible. Auto dealers tend to cluster and generate traffic for one another. A good restaurant in a small shopping
center may generate more visitors for other stores. However, an upscale boutique may not fare well next to a super
store or discounter.

After you evaluate the above questions, you will move on to detail questions that help you move from selecting a
desirable location and building to working out the details that make the decision a reasonable business arrangement. It is
important that the building itself provides the conveniences you need including parking, lighting and delivery access.
You want to have preliminary meetings with the landlord, you may be dealing with a large leasing company or an owner-
leasor. Find out how accessible the landlord or building manager will be for repairs, concerns and routine maintenance.
Landlord and tenant responsibilities should be reflected in the lease.

Is the lease right for you? The lease should reflect the length of time you expect to be at a particular location and provide
an escape clause, as well as a clause for continuing the lease. Cover all the bases before you put pen to paper and commit
to a lease. Be sure that your attorney carefully reviews and comments on the lease agreement before you sign this legally
binding document. The lease should spell out who pays for insurance, if you can sub-lease and any site improvements to
be made before you move into the space.

There are many factors to be considered when choosing your store's location. To review your options and evaluate the
aspects of your ideal business site vs. the real-world sites available, seek outside advice. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Delegation Delivers Results

You are an entrepreneur. You create the company vision, manage operations and handle details. Whether you are a solo
entrepreneur or small business owner with a number of employees, plan to delegate. The solo entrepreneur may not have
the funds to hire a full time staffer. Consider a part-time employee, contract employee or intern to help with specific
tasks. Free your time from mundane activities, so you can concentrate on delivering a quality product or service, as well
as making those all important sales.

When you are running a business, you have to depend on other people to handle some of the task you don't have time to
do yourself. Delegation is one of the toughest jobs to learn. Entrepreneurs are take charge individuals. Many an
entrepreneur has said " I can do that better myself." Beware of such words. If all you had to do was that one item,
chances are you could do it better yourself. However, you have a long to do list already; some projects are best delegated
and supervised. It takes discipline to let go of tasks both simple and complex. Consider delegation as part of your overall
plan for the business, even the owner needs a break. You need to plan for contingencies, such as an illness or time to take
a vacation.

Select the right people to undertake delegated duties. Evaluate interns, part-time employees and contractors carefully.
Provide time for orientation and training. If you have a staff of employees, begin cross-training so there are back-up
systems for your absence or the absence of a key employees. From your employees, choose competent employees with
an interest in new tasks. Delegation can be an opportunity to learn new skills and/or take on added responsibility. Don't
hand off tasks without discussion and training if needed.

Employees should be valued. Delegation should provide an opportunity for you to ease your workload and communicate
to the employee that you are entrusting him or her with the tasks because of your confidence in the employee's abilities.
Clearly define responsibilities and the authority that accompanies the task. Be sure to plan on recognizing and rewarding
employees, who assume additional duties. If employees step up to the plate, you want to be sure and demonstrate
appreciation for the extra effort.

The team of people to whom you delegate responsibility must be responsible for their own actions and results, as well as
for those they may supervise. Request periodic written reports and staff meetings to provide a forum for comments on
activities, accomplishments and challenges. Become the communicator and facilitator for the work of company. Bring
the big picture into focus. When it makes sense delegate. Free your time to be the president. Create an environment that
allows for the company and its workload to grow, without overburdening you. As the owner, your vision and
management ability are best served, when details are managed rather than when you complete tasks yourself.

If you would like to discuss workload, delegation and effective leadership, contact (SCORE). The Service Corps of Retired Executives  is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Focus Group Research Provides Marketing Insight

Market research is about gathering information --- reliable information. As an entrepreneur, you have gathered a great deal
of information in order to establish a business. Market research is just one more way to gather information about the
marketplace and consumers.

Most small business owners can easily define their market, based upon the target audience for their products or services.
Basic characteristics such as gender, age, income, etc. define the demographics of your consumers. Since most small
businesses are doing business within a defined geographic area, another avenue of information is available. The U.S.
Census Bureau has a wealth of information about the number of households, family size, income and age of the local
populous. Much of the information can be accessed directly from the bureau's Internet web site at
http://www.census.gov Your local library is also a likely source of such data.

Keep tabs on consumer opinions. Find out what your current customers think about your goods and services. A popular
and relatively inexpensive way to gather information about how your customers feel about your business and how deeply
committed they are to your store or brands is through a focus group. A focus group is an informal way of researching
consumer opinions. In this scenario, you organize the questions you want to ask and bring together a group of 8-12
customers, which represent the demographic range of your consumer base.

Participants should be selected randomly within the demographic framework, so you don't tend to pick your most loyal
customers. Normally, potential participants are invited to participate in the focus group and are offered an incentive for
donating their time. The incentive might be a store discount coupon or a popular or limited edition item from the store.
Once the date, time, place and participants are ready, bring the group together. Hire a moderator or invite in an industry
colleague to conduct the focus group. Be sure to have a staff member attend meeting to listen to the feedback and take
notes. Don't attend the focus group yourself. As the owner, your presence may inhibit discussion.

Once the focus group is concluded, you may ask yourself what have I gained? The report from the focus group should
give you several important pieces of data such as: to what degree are clients satisfied with your products and services:
suggestions customers have made for products they would like to purchase; opinions about competitors and how you fare
in comparison. This is valuable information, information that you receive directly from your own customers. The only
way you can improve and be a more competitive small business is by understanding your customers.

Focus group results can help you shape business decisions. Maybe all the participants felt more staff was needed to be
available on the sales floor. Perhaps you learned that consumers liked a particular product line and would buy more items
if you carried more products within that line. This kind of information can help you make more informed decisions as an
entrepreneur. Now a word of caution, the information you just gathered is valuable, but since it is qualitative (not a
numerical, statistically valid survey ) you can not project the group's perceptions as representative of all your customers.
What you can do is evaluate the results and see how the feedback makes sense within your business.

If you would like to discuss demographics, market research or focus group research, contact SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Advertising Is An Investment In Retail Results                                             by Jim Frichette

Advertising is one of the most important tools a retailer has. A sound understanding of its use and elements will result in
more effective advertising. For some businesses seasonal ads are the most effective. For others, ongoing print ads for
special sales work best. Still others will utilize radio to capture the attention of the market for that limited time only sale.
And now more than ever, companies are advertising with their own Internet web site or "renting" space on commercial
sites that offer storefronts for their product promotion and ordering.

Whatever form advertising takes, the financial commitment to advertise is a very basic business decision. Advertising
expenses should be planned with a return on investment in mind. For every advertising dollar, the business must recoup a
percentage as part of every sale. When you set discounted promotional pricing that must be considered as well. Does a
discounted promotional price and the advertising expense mean a loss on a particular sale item? Is that a calculated loss
to bring business in the door in anticipation of a multi-item sale? Does that technique work?

Advertising is a fundamental business question. The answer is yes- if you are a retailer you should advertise. The
question now becomes how to budget and implement an effective advertising program. Plan your expected highs and
lows for foot traffic and sales volume. Develop a one-year advertising plan. In your own mind, you need to know when to
emphasis advertising in your marketing mix. You can't advertise everywhere all the time. Be selective before you ever
spend that first dollar. Think first and spend later.

As part of your advertising plan, budget for the creative concept, layout and production of an advertising theme. If at all
possible, hire someone specializing in advertising to develop a campaign for you. This does not have to be expensive.
You can choose between advertising agencies, graphic design firms and freelance marketing pros. This expertise can help
provide you with the savvy copy that attracts customers interest, attention and action. If you can't afford to invest in a
campaign theme. Carefully plan your messages and goals for the ads and get production support from the television
station, radio station, newspaper or magazine running the ads.

An advertisement should generate a buying response. The potential consumer should become interested in the product
and understand the benefit of the product or service. How will your product or service make life easier or more
enjoyable? The creative aspect of a clever and intriguing ad should help elicit interest. Invest wisely. A poorly conceived
or executed advertising campaign can harm your business. Advertising is an investment and the time and money invested
should add value to the bottom line. You want foot traffic and you want increase sales volume-advertising can help
make it happen.

To review your advertising plans, contact a SCORE business counselor. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Business Figures Provide Valuable Information

Become very familiar with your balance sheet. A balance sheet shows where your business stands at any particular
moment. A profit and loss statement (also called an operating statement) totals the result of operations over a selected
time period. Each statement is merely a collection of figures. However, with proper interpretation and evaluation, this
collection of figures becomes an important indicator of how financially successful the business is at this time. Financial
success is the end result entrepreneurs seek. Understanding the balance sheet and the implication of the financial results it
reveals are valuable tools in making operating decisions that will impact sales, expenses and profit.

The single balance sheet is like a snapshot. It measures the condition of the company at a single moment in time. The
balance will show how the capital within your business is distributed. The amount of capital distributed over the various
accounts in the business and the surplus of assets over liabilities shows profitability. If the snapshot shows that liabilities
are greater than assets, you then see a loss position for the company at that time. Even more important are trends over
time. A company may have a month with high expenses that result in a loss. However, the trends may show five months
of profitability. The net effect of the six months may be profitable, even though one month showed a loss. The concern is
if three months show a loss, then the owner must decide how to overcome the negative cash position.

Compare balance sheets over a period of time to gain an understanding of your assets and liabilities. Let's say you review
your quarterly balance sheets over several years. By comparing these on an item-by-item basis, you can spot trends. You
are now gaining a real understanding of the overall financial structure of the firm. For example, larger quantities of
merchandise on hand from one period to another may be a reflection of that decision to buy ahead because of continuing
inflation. Receivables may show a continuing upward trend when collection of outstanding accounts is not pushed for
collection within 30 days. Debts may run higher when the firm expands or makes capital improvements. This information
provides management information, to help the owner make decisions about the prudent and fiscally sound operation of
the business.

The profit and loss statement is another valuable tool in ascertaining the company's performance for a given period of
time. The statement will show sales volume, cost incurred and the amount or profit or loss. Comparing the profit and loss
statements of success periods monthly or quarterly can be very revealing. Why was there a lower gross profit for each of
several quarters? Did price cuts decrease per sale profitability? Was a higher proportion of sales spent on operating costs
such as personnel, rent or insurance? Are overhead costs increasing routinely?

Although, your accountant should be able to give you advice and guidance, you should also have a clear understanding of
how to read, interpret and act on financial information. As the decision maker, you need to know what effect decisions
have exerted on profit in the past and what decisions need to be made to control costs, increase profitability and improve
cash flow. The flow and use of money in your business is critical. Your salary and the continued profitability of the
business depend upon you and your ability to make sound financial decisions.

If you would like information on how to read and interpret financial data, contact the SCORE Association. The Service Corps
of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix
Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Is Venture Capital Good For Your Business?      by Jim Frichette

Venture capital is a possible source of funding for new, relatively unproven enterprises that appear to have promising
futures. However, such money is often hard to come by. Be realistic in your quest for venture capital. Venture capital
firms expect a business to be able to return their investment not only with interest, but with a large profit. 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 and a few are publicly held. Once you accept venture capital, you
have relinquished some of your autonomy and accepted the understanding that the venture capital firm will take a large
share of the profits you earn.

As the entrepreneur, you should understand the nature of a vendor firm, before pursuing this as a financing source. This
type of investor expects a projected return on investment that is directly related to risk. The greater the risk, the greater
the return expected. Typically, however, an investment firm will not be interested in getting involved with a new firm
until the business has established itself in some way, so the risk factor can be determined.

The venture capital firm and its interest usually depends upon the stage of the new firm's development. Once the new
firm has established itself and has a working organizational structure, a viable business plan and start-up arrangement a
venture capital firm may be interested. However, some firms prefer a later stage of new business development, perhaps
when the new company is in its second or third round growth state and needs more capital either to carry out expansion
plans or to tide it over until a merger or public offering carries it to the next stage of corporate growth.

A company's business plan serves as the primary analytical tool for the venture capitalist. In analyzing the plan, a venture
capital firm would most likely focus on three features.

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 tempting to such investors.

2-  Management capability. No matter how good the product or how innovative the service, the quality and experience
of the management is a key factor in the success of the business. The astute investor is well aware of this and looks
for solid evidence of such skill.

3- The industry's growth. Investors also want to be sure that the product or service is in a growth field. A significant or
revolutionary product improvement, by itself, may not have appeal in a declining product or service category.

Most venture capitalists purchase common or convertible stock rather than burden the fledgling enterprise with interest
payments on debt or debentures. They may possibly want more than 50 percent ownership. Additionally, while the
venture capitalists may insist on sitting on the Board of Directors or offering management and technical advice, they are
rarely interested in the day-to-day management of the enterprise, unless its survival and their investment is at stake.
Keep in mind that the minimum investment is generally from $50,000-$500,000, but investment ceilings are almost
unlimited.

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Lead By Example To Grow Your Business

What makes a business grow? Leadership. The leadership and vision of the entrepreneur light the way for business
success. You and your employees follow the course you have set for the business. Be sure that you lead by example when
it comes to working hard, valuing lifelong learning and appreciating employees contributions. Your personal attitudes and
actions influence those around you.

Some people just love their chosen occupation and nothing makes them happier than doing a good job. They enjoy
meeting and helping people. They're enthusiastic. These owners are enthusiastic and positive around everyone,
especially customers and employees. People want to be surrounded by positive people. A leader who may not be
charismatic, but is positive draws a positive response from those he or she interacts. A positive outlook can help
develop a can do attitude among employees and can generate a feeling of goodwill among customers.

Many successful business people participate in lifelong learning through personal and professional activities and studies.
Those entrepreneurs who are open to new ideas and new ways of doing things have the best chance for success. The
willingness and ability to respond to change are a competitive advantage in business large or small. For the adept
entrepreneur this speed means quicker adjustments to products and services, so the company is delivering exactly what
the consumers want just in time.

Owners have a personal and professional interest vested in the success of their business. Extend that interest to the
employees who help you get the job done. The company's success depends upon its leadership and part of leadership is
valuing employees, so they work not for just a paycheck but for job satisfaction. Offering fair wages, good working
conditions and opportunities for improvement help you attain and retain qualified employees.

Successful business owners are optimistic about where their business is going and have a clear picture of the results they
seek. The business leader is able to "paint the picture" for employees, so they can share in the company vision and
become more vested in the company's success. That same business owner projects his or her sense of confidence, which
reassures both employees and customers that this is a stable and successful business.

There is power in positive thinking. And, there is power in leading by example and motivating those around you. If you
would like to discuss strategic planning, lifelong learning programs, employee benefits or customer service issues,
contact the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Review Effort And Reward Performance

Performance reviews and merit raises are a part of your role as employer. Once you hire employees, it is your
responsibility to train and motivate them. In addition, you should routinely review performance and offer merit increases
as appropriate. As an entrepreneur, the business is your livelihood, as employees, your staff consider their jobs their
livelihood. Reward excellent performance, so you can retain trained and qualified employees. It is generally less costly to
keep a good employee, than to regularly hire, train and hire again if good employees leave because of low compensation.

Often a personal regard and camaraderie develops between the small business owner and his or her employees. Such
personal contexts can result in subjective decisions, when it comes to promotions and pay raises. To safeguard your
decisions as relevant to work performance, maintain clear guidelines for employee performance. Measure employees
against standards that have been set and are communicated from employer to employee. Such standards place job
evaluations and merit increases on firm footing in terms of clear expectations for work to be performed and performance
results. A performance review provides a forum for you to review an employee's performance and share your
observations with the employee. The employee should be able to share his or her perspective and feedback as well.

Be sure that you have clear job descriptions in place. More often than not performance problems can be traced back to
unclear expectations or expectations that were not understood by the employee. A written job description provides a clear
description of the skills and abilities required to effectively complete the job you need done at your company. The
description should be written for the position and work to be performed, not to accommodate someone who may
currently be filling the position. The more objective the standards, the more effective you can be in matching
performance and skill to the job, rather than focusing on personality and people you may like to a greater or lesser
degree.

A merit rating system, with grades or levels for positions within the company, can help you establish a reasonable pay
scale for each job. Merit ratings determine what salary within a salary range an employee should be paid. Your industry's
trade association will often have a listing of average and median salaries for positions within your industry. The
advantage of ranges and average salary information is that you can avoid setting salary ranges too high or too low for a
given position. A part of your merit system, may be specific percentage raises for specific performance levels. An
employee who performs his or her duties at the level of "excellent" would receive a larger increase than someone who
performs "good" or "average." Factors beyond fulfillment of job duties are often considered as part of merit and
performance reviews. Dependability, initiative and teamwork are common areas for employee evaluation.

If you would like to discuss employee reviews and merit pay, contact the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Staff Selection Is Critical To Success

A business is only as good as the people who manage it. You and your employees are the source of customer satisfaction.
Products and services are wares you distribute. Customer service throughout the organization is the culture that  contributes
to both employee and customer morale. As an employer, you want to hire and retain the employees most qualified for the positions within your company.

Important policy standards should be in place before you begin hiring employees. Develop a personnel policy and
manual. This can be a brief document of only a few pages for a business with few employees. The manual should include
your policy for hours, overtime, fringe benefits sick leave, annual leave, training, dress code, personnel reviews,
grievance procedures, termination and retirement policy. This manual provides an overview of the work environment from expected work times to time off and employee reviews. This manual covers operating policies and general benefits. A job applicant should be given a copy before a final offer of employment is granted. In addition, each company employee should have his or her own copy of the manual, which serves as a guide for his or her conduct and benefits.

Before you advertise a job with your local newspaper or with a personnel recruitment firm, prepare a job description.
Each position within the company, including your own, should have a job description that outlines responsibilities and
duties. Each description should include reporting relationships, which describe who the employee's supervisor will be.
Add to each job description a list of the position's objectives with specific and measurable goals. The job description
provides you and the employee a clear road map for the expectations of the position from both the standpoint of
workload and expertise required to accomplish the job.

Develop an application form. You can buy standard forms or computer software for employment applications or create
your own. Ideally, the form will be simple and should focus on relevant employment history including names of
supervisors and references you can contact. This application should allow some space for the applicant to add a narrative
summary of his or her career accomplishments. This section gives you a chance to see what the applicant viewed as
important successes and milestones in his or her career. Interview qualified candidates. During the interview, you want to
learn as much as possible about the person's job skills, work ethic and personality. Ask specific questions that require
more than a "yes" or "no" answer. The more dialogue, the more you learn about the applicant. More information will
help you make an informed decision.

Check references. This can not be stressed enough. Your business is important to you and the right employees make a
positive statement about your business to customers. An applicant who interviews well and has a sterling resume, may be
the ideal fit for the job. Call references to confirm your belief and to ascertain if pervious employers' accounts of the
person's job responsibilities and performance match what you heard in the interview. Also gather opinions about
personality, work style and strengths from references. Both what references say and leave unsaid can give you clues to
the character and skill of potential employees. A good question to ask a previous employer is whether or not they would
re-hire the applicant. Take this information and form your final opinions.

Hiring the right people for the right positions can mean the difference between top performance and profitability and
weak performance and operating difficulties. Choose wisely. If you would like assistance in developing an employee
manual, job descriptions or interview questions, contact the SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Set Up Records For Tax Documentation

You need not face tax time worrying about your various tax claims and exemptions If you dedicate time and effort to
record keeping, you can avoid last-minute worries about having proper documentation in support of your tax filing. The
key is to create a record keeping system that is consistent, organized and maintains receipts and other documentation.

Keep a tax calendar. Your tax calendar should show all deadlines for filing returns and making payments. If you refer to
that calendar weekly, you'll be able to take action promptly in order to avoid financial penalties. You want to pay your
fair share of taxes, without either overpaying or owing additional funds to the Internal Revenue Service.

Your checkbook or general ledger should be your major financial documentation. All funds passing through the business
should be documented in your checkbook and logged into the general ledger. This is the master record of the financial
transactions of the company. This record of cash flow may be needed for verifying information to the IRS.

Even if you are a solo entrepreneur, you should still set up a separate bank account for all business transactions. This
ensures that all incoming and outgoing funds associated with the business are properly documented. If you do not have a
business name, open the account in your name as a business account. This account is a master record of the financial
history of your business. Don't use it for any personal expenses. Deposit and enter all cash and check receipts into this
. business account. Post all expenditures through the account. You may keep a separate cash box and records for expenses
that you draw from petty cash.

You can set up petty cash as a cash box or as a subsidiary of your bank account. With a petty cash account you can obtain
advances for certain expenses. Whatever the amount, the business needs to have petty cash for small day-today expenses,
such as parking or postage stamps. A limited number of people should be authorized to disperse such funds, and signed
receipts should be required for any use of petty cash.

You will need additional information from the IRS for tax planning purposes. Information such as depreciation and
allowances for interest should be gathered from the IRS or your tax consultant or accountant. You can access tax forms
and information on the Internet at the IRS Web Site at 6ttp://www.irs.ustreas.gov. The site has a wealth of information
and can provide insights to help make your tax preparations less complicated. Downloadable publications are available
on the web site.

If you would like to discuss how taxes affect small business or business record keeping, contact the SCORE Association.
The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Find A New Product For Your Manufacturing Firm

All products have a life span. Some mature products can be rejuvenated through an updated promotional campaign or
packaging. In some cases, a small manufacturer can expand sales in new or existing markets with product enhancements.
In other cases, the only way a small manufacturer can maintain market share and expand sales is to introduce a new
product.

To find the right product, you need to do some research and answer some basic questions about the suitability of new
products in relation to your current production resources. Set some minimum standards that a new product must meet for
you to even be interested in the venture. And, before you invest too much time and effort into the endeavor find out what
the market trends are for products. Keep in mind that a new product must be in response to consumer demand.

You may have a particular product in mind already or you may be searching for a new product that has never been
brought to the marketplace. Begin researching product possibilities. Sources of information that can provide leads are
information on government owned patents, privately owned patents, the U.S. department of Commerce, inventors trade
shows and licensing brokers. Take time to get a perspective on the range of available products. Then begin to narrow
your search to the handful of products that may fit into your marketing and manufacturing mix.

Ask yourself the following questions. Can you introduce a new product that would be an add-on to an existing.product
line? Are there market indications that a particular product is in demand within your general product category? Do you
see the potential to use existing resource in the production of the product? Can your current manufacturing operation be
readily modified to bring a new product to the market? Will this new product be targeted to your current customer base or
do you need to target new customers?

Pay particular attention to your physical capabilities within the manufacturing context. You will need to modify existing
equipment or purchase new equipment to handle product on the new product. Also consider personnel training and the
complexity or simplicity in the manufacturing of the new product. In addition, you must consider your in-house resources
for the storage and shipping of the new product. Can this product be distributed through existing channels? Ideally, you
want to incur as little expense and make as few changes to overall operations as possible. Part of your goal is to maximize
manufacturing capability and allow the structure of your firm to support the distribution of a new product.
Take these three tangible steps in your quest to launch a new product: decide on a product; gathered information about
market demand; and define manufacturing requirements. Once completed, you can move on to the competition. Who are
your potential competitors? Has a similar product already been introduced? Can you improve on the product to
effectively compete.? Could a larger competitor step in and capture the market? Identify competition obstacles and plan
sales strategies. You and your sales team need to carefully plan the product launch, sales goals and customer service
levels related to the new product.

If you would like to discuss new product development, manufacturing reorganization or a new product launch, contact the
SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Build Consumer Confidence In The Small Service Shop

Customer confidence is important to every entrepreneur's success; perhaps none more so than a service business. In this
business, the customer rules and his or her satisfaction with service will determine whether you receive repeat business
and a referral or complaints and unfavorable word-of mouth.

In today's busy work world, consumers have to fit visits to any service business into a schedule already crammed full of
appointments. Look at the operational structure of your business. Do you offer extended hours to accommodate the work
schedules of your customers? Consider how long your customers have to wait for service. How long does the average
customers have to wait before receiving assistance? Here are three tenets to live by as the owner of a service business:
offer quality work at reasonable prices; make customers feel comfortable and be honest.

Provide Quality Work At A Reasonable Price
Quality is your foundation. As a service company provide a quality service. This is your foundation. Without this base,
nothing else is going to make your shop successful at attracting and keeping customers. The typical customer doesn't
know that much about the technical side of your business. The customer will judge you on the results. Regarding price,
many service businesses are competing in markets with numerous other vendors who offer similar services. Evaluate the
market's price range. Don't under or over charge for your services. Keep your prices along the average. Price competition
can be fierce. You need to get clients in the door to provide that quality service that keeps them coming back. Often price
and word-of mouth determine which service shop the customer will choose.

Make Customers Feel Comfortable
Be helpful and pleasant. Train your employees to be patient with consumer questions that to your trained technical staff
seem simple. A comfort level and trust is built upon the foundation of the relationship your customers develop with front
line service personnel. Be sure there are systems in place to manage the production side of the business. You want your
front line service employees to have time to dedicate to the customers not production. The bottom line for the customer is
the service provided and customer service factors heavily into the equation. Do you have a policy on how to address
service errors? Do you know how to handle a disgruntled customer or a customer pushing for special discounts? Your
employees need to know how you want them to handle such situations. And, you as the owner need to establish
parameters for dealing with the small percentage of customers who are difficult to serve.

Be Honest
In all business dealings, honesty is the best policy. No one likes to hear that a service problem has not been solved or that
the resolution will take longer than expected. If there will be a service delay for any reason tell customers right away.
This is a frequent complaint in a service setting "no one told me the job would not be done." Be proactive, while the
customer wants work completed quickly, he or she will be more willing to accept a delay when told before returning to
the service shop, only to find that the work is not yet completed. You must continually gain consumers' trust. Provide the
consumer with all details for the service and offer a detailed bill to show specific charges.

If you would like to discuss customer service policies, employee training or processes for delivering quality service, call
the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for
Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or
email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Gather Information Before Investing In A Franchise

Franchising is a very popular method of doing business. Franchisees generated $803.2 billion in the sale of retail goods
and services in 1992. According to an industry newspaper Franchise Times 76 percent of franchisees are satisfied and 73
percent would recommend franchising to others. As a small business venture, franchising offers the entrepreneur an
opportunity to follow a formula for what has demonstrated itself to be a tried and true business.

While no business is without risk, franchising provides entrepreneurs with a business option that offers trademark,
guidelines and a business format. There are advantages to the foundation provided in a franchise business. However, the
owner does relinquish some autonomy by agreeing to follow guidelines established in the franchise agreement which is
a legally binding document.

The most common type of franchising is business format franchising, which in effect provides a blueprint for the
building, promotion, operation and products and services of the business. The franchise investment may range be tens of
thousands to hundreds of thousands of dollars. An up-front fee and a continuing royalty, based on percent of sales, are
usually required as part of a franchise agreement. Product and tradename franchises are available, such as auto
dealerships.

Before you decide to make your mark as an entrepreneur, learn more about franchising. Sources of information on
franchising are abundant. The sources described below can help you make an informed decision about franchising as
your avenue toward entrepreneurship. If you are on the Internet, you can go direct to many information sources and
simply download and print information of interest to you. Take a look at http://www.smallbusiness.apple.com and visit
the SCORE Hot Page where you can find the article "A Look At Franchise Business."

The Federal Trade Commission is a source of information, forms and regulations that affect franchising. Call the
Federal Trade Commission, Public Reference Branch (202) 326-2222, stay on the line for an information specialist-do
not enter the information menu system for this item-request a free copy of the pamphlet "A Consumer Guide To Buying
A Franchise." Use the information menu system for consumer credit information, copies of consumer education
brochures and information about franchising. Franchising information available includes: access to federal disclosure
requirements for franchises, a copy of a federal disclosure for a specific franchise, information on complaints on file, as
well as information about filing a complaint. You can also access the commission's web site at http://www.ftc.gov.

The International Franchise Association is a trade association for both franchisors and franchisees. They have
franchise resource books that are sold to the public for fees ranging from $15-$95 dollars. The association offers
franchisees' seminars, networking opportunities and "how to" information. You can access franchise information, as well
as information about the association itself at http://www.entremkt.com/ifa or call (202) 628-8000.

The American Association of Franchisees & Dealers is another trade organization available to you. Formed in 1992,
the organization has Trademark Chapters, which represent all of the franchised systems in which they have significant
membership. The organization offers members publications, discounts and a professional referral network. You can
access franchise information and association information at http://www.gateads.com/aafd.

Once you have gathered information about franchising, you need to evaluate the information and form opinions. For a
free and confidential source for information review, discussion and business counseling, contact the SCORE Association
The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative
effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com
or go to our web site at http://www.ellensburg.com/~score.

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How To Avoid Trouble When Managing A Family-Owned Business

There are many benefits to running a family business. You and your family derive pride, fellowship, loyalty, continuity
and shared success through the business. It also means everyone's financial stability and success rest with this primary
source of income. Because of the shared finacial risk, managing a family-owned business presents unique challenges.
When close relatives work together, emotions can often cloud business decisions. Whatever the purpose of the business,
the special relationship between members of a family can get in the way of effective business decisions upon occasion.
To help manage the business, prepare a written plan. A plan can guide operations and create an objective standard for
everyone to measure performance and results.

When you invest your own money and operate your own business, you have accepted the independence that comes with
being your own boss. And as the manager, you are rightly concerned with the economic realities of running a business.
However, if other family members have also invested in the business, they may rightly feel that they should have a strong
say in the business' operations. Family considerations and disagreements can get in the way of what should be purely
fact-based decisions. In the real world, emotions come into play. Plan for professional procedures to help navigate
disputes, so the business can operate effectively.

Problems associated with managing a family-owned business usually result from the dual relationship between members
of the firm. For example, when the current general manager steps down, choosing among many qualified members of the
family who want the job, may be more difficult than choosing a pool of unrelated candidates. Another problem arises
when there is pressure to hire an unqualified member of the family. It is easier to turn down a colleague, than it is
someone who will be sitting across from you at dinner.

One solution may be to hire a general manager or chief operating officer, who is not a member of the family. This works
only if all members of the family agree and discipline themselves to abide by the decisions and recommendations made
by this executive. When decisions are in favor of or in opposition to positions held by various family members, there
must be a clear method to allow this person decision making power. You decide how much latitude your executive has
and clarify when you want the final review in a decision. Give authority with the responsibility.

Consider outside advice in developing a management plan to bridge family differences. A volunteer business counselor
can offer insights, procedures and assistance in preparing a conflict resolution plan or a succession plan to bring an
outside executive to the table as a manager and facilitator. The Service Corps of Retired Executives (SCORE) is
providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect
 - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at
http://www.ellensburg.com/~score.

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Spend Money On Advertising To Boost Retail Sales This Month

Advertising is one of the most important tools a retailer has. A sound understanding of its use and elements will result in more effective advertising. For some businesses seasonal ads are the most effective. For others, ongoing print ads for special sales work best. Still others will utilize radio to capture the attention of the market for that limited time only sale. And now more than ever, companies are advertising with their own Internet Web site or "renting" space on commercial sites that offer storefronts for their product promotion and ordering.

Whatever form advertising takes, the financial commitment to advertise is a very basic business decision. Advertising expenses should be planned with a return on investment in mind. For every advertising dollar, the business must recoup a
percentage as part of every sale. When you set discounted promotional pricing that must be considered as well. Does a discounted promotional price and the advertising expense mean a loss on a particular sale item? Is that a calculated loss
to bring business in the door in anticipation of a multi-item sale? Does that technique work?

Advertising is a fundamental business question. The answer is yes- if you are a retailer you should advertise. The question now becomes how to budget and implement an effective advertising program. Plan your expected highs and lows for foot traffic and sales volume. Develop a one-year advertising plan. You need to know when to emphasis advertising in your marketing mix. You can't advertise everywhere all the time. Be selective before you ever spend that first dollar.

As part of your advertising plan, budget for the creative concept, layout and production of an advertising theme. If at all possible, hire someone specializing in advertising to develop a campaign for you. This does not have to be expensive.
You can choose between advertising agencies, graphic design firms and freelance marketing pros. This expertise can help provide you with the savvy copy that attracts customers interest, attention and action. If you can't afford to invest in a
campaign theme. Carefully plan your messages and goals for the ads and get production support from the television station, radio station, newspaper or magazine running the ads.

An advertisement should generate a buying response. The potential consumer should become interested in the product and understand the benefit of the product r service. How will your product or service make life easier or more enjoyable?
The creative aspect of a clever and intriguing ad should help elicit interest. Invest wisely. A poorly conceived or executed advertising campaign can harm your business. Advertising is an investment and the time and money invested should
add value to the bottom line. You want foot traffic and you want increased sales volume-advertising can help make it happen.

To review your advertising plans, contact a SCORE business counselor. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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SCORE Recognized at a White House Event During  National Volunteer Week

The SCORE Association was  recognized by the White House for 35 years of outstanding service to the small business community, during  National Volunteer Week. Each year,  SCORE volunteers donate more than 1 million volunteer hours to help small  businesses succeed. This means that each year SCORE volunteers dedicate as much time to volunteering to help
small businesses, as the average 500-person corporation dedicates to running its business.

A White House reception hosted by the White House Office of Public Liaison honored SCORE volunteers for their contribution to the American economy. The Administration recognized SCORE as volunteers who donate time and talent to advise America's small business community. Aida Alvarez, the Administrator of the U.S. Small Business Administration and a member of the President's Cabinet, presided at the event.

SCORE and Edward Jones Partner To Bring 12,400 SCORE Members Together  For Training

Thanks to the local Edward Jones, Bob & Marty Stewart, SCORE and Edward Jones Partner to bring 12,400 SCORE members together for training.  SCORE and Edward Jones, the leading financial service firm in the U.S., have put their resources together to benefit the small business community. Nationwide, SCORE members tuned into a live, satellite
broadcast in one of more than 900 Edward Jones locations.

The one-hour and 15-minute "Skills for the Millennium—Counseling Clients and Marketing Your Chapter" presentation took place on July 29, 1999 at 1:00 p.m. PDT at Edward Jones Offices. This landmark training event marks the first  time SCORE has been able to provide live information and education to improve counseling skills and boost SCORE local marketing efforts to its cadre of 12,400 members.

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - 1000 Prospect - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Incorporating Can Open Up Sources Of Capital

Incorporating your business may be preferable to operating it as a partnership or sole proprietorship because of available
corporate tax benefits and the limitations placed on personal financial liability. Generally, corporate stockholders are not
liable for claims against the corporation beyond the amount of their original investment.

A small firm that incorporates issues common stock. Typically this stock is privately held by a limited number of
stockholders. Purchasers of common stock become partners in the firm and may, if they wish help determine the firm's
operating policies. A significant benefit of incorporating is that it can also open up other avenues of capital for your
business.

Corporations: One of the best-known and most widely used business entity forms is the corporation. Traditionally, corporations are viewed as having four identifying characteristics. The four corporate characteristics are: continuity of life, centralization of management, limited liability, and free transferability of interests. The main advantage of a corporation is the liability protection it  provides its owners or shareholders. Liability is limited because the corporation is a legal entity that separate from its shareholder owners. As a separate legal entity, the corporation has a perpetual life. Also, as a separate legal entity, the corporation is liable for its own debts and can only be held liable to the extent of the corporation's assets.
 

Beyond issuing common stock, corporation have other built-in investment vehicles they can use to attract capital. One is
to offer preferred stock. This type of stock gives its holders a claim on repayment over holders of common stock, in the
event the business fails. Those who hold shares of preferred stock are usually limited to receiving fixed dividends and
may lack voting privileges.

Another investment opportunity for the small company is the offer of convertible debentures. These are debt instruments
that offer the option of paying interest in the form of issuing common stock. Warrants, similar to convertible debentures,
allow investors to buy a set amount of stock prior to the warrant expiration.

Because debentures and warrants are both debt, in case of business failure, they must be paid before holders of common
stock and preferred shareholders are reimbursed. It's crucial for small business owners to consult an attorney, banker or
accountant before making such offerings. Before you incorporate look at the tax implications of structuring your firm as a
corporation. Access to capital is an area of concern for most entrepreneurs, incorporation and the issuance of debentures
and warrants can provide ready capital to the small business.

If you would like to discuss incorporation, access to capital or debentures and warrants, contact SCORE. The Service Corps
of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com
or go to our web site at http://www.ellensburg.com/~score.

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How To Prepare For Business Ownership

At any given time 30 percent of the population is thinking about starting a business. If you are thinking that you would
like to open your own business, then prepare for success. Entrepreneurs succeed because of hard work and preparation.
Don't underestimate the importance or time commitment involved in preparing for small business ownership.

While an employee may lose a job as a result of a reorganization, a business owner can lose his or her life savings. You
want to protect your investment, if you own a business. The best protection for your business is to be prepared for
entrepreneurship. There are five ways in which you can prepare for business ownership, before you actually take the
plunge and open your own company. Five pre-business preparation tips appear below:

 · Define Your Professional And Personal Goals
 · Take A Course On Business Management
 · Prepare A Complete Business Plan
 · Complete A Loan Application
 · Test Market Your Idea

You may want to own your own business in order to be your own boss and set your own schedule. You may want to own
your own business to get rich. You may want to own your own business to pursue a self directed career in a field you
love. All three are valid reasons for wanting to own a business. The critical aspect after you answer the initial question of
why be an entrepreneur becomes what do you want to achieve in the long term professionally and personally.

You need to look at your work and personal life based upon a 10 year span. Most small businesses are considered start-
ups or growth firms through their first five years in operation. The company only begins to mature after the five year
mark. Does this time investment suit your goals? What do you want out of life? Many entrepreneurs tell me they now
work harder than ever, usually 50-70 hours a week. Can you make that commitment?

As you begin to answer these fundamental questions, you are mapping out the course, profitability and role you want a
small business to have in your life. One of the reasons often cited as why a small business fails is the lack of management
experience. Do you have management experience? If yes, great what else do you need to know. If no, are you willing to
learn about business management before going into business?

Preparation helps protect your investment both in time and money. Since most entrepreneurs need some capital financing
to start a business, preparation is necessary to develop the business plan and loan application package required in order
to secure a bank loan. Along with that preparation, a lender will expect you to have capital or assets to invest in the
business. Whether or not you receive a loan will depend upon your credit history, your ability to repay debt and the
soundness of your business idea and business plan.

If you make it this far in the process, you are serious about entrepreneurship. Next, test market your product or service.
Find out if consumers are willing and able to purchase what you want to offer the marketplace. You may find that
adjustments are needed, the idea is right or that there isn't a market after all. This testing phase allows you to invest a
small amount of money in order to find out if this business can work in the marketplace. You may gather your results and
change the business idea or decide against entrepreneurship.

Make well informed decisions based upon fact and preparation. If you would like to learn more about starting a business,
preparing a business plan or test marketing, contact the SCORE. The Service Corps of Retired Executives (SCORE) is
providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce
and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web
site at http://www.ellensburg.com/~score.

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Obtain Business Insurance As A Safeguard

If your insurance policy omits important elements of business protection, a lifetime of hard work can be lost in a few
minutes. Sound insurance management for your business is fully as important as good financing, marketing, personnel
management or any other key aspect of operations. Like all these other business issues, appropriate insurance for your
business doesn't just happen.

A good insurance plan guards against the unexpected. Some business risks are obvious: fire, theft and liability, for
example. But your checklist for business protection should not be limited to the obvious. If you use special tools or
equipment in your business, you may need special insurance covering them. If you need to close down your business for
a period of time, you may also need business interruption insurance. Business interruption is perceived by many
entrepreneurs as an unlikely event, but a natural disaster can cause tremendous damage to a business and its surrounding
economy. Be sensitive to the impacts of a catastrophic event on the potential of your business to remain viable.

Bring a professional into the picture early. Analyze your needs. You don't want to spend money on needless insurance or
insurance for situations that are highly unlikely. Insurance is a fixed expense. Make wise choices before adding an
additional expense to the business. Insurance is a complex and detailed subject. Seek out a reputable and qualified broker
agent or consultant to explain insurance options. A qualified professional will recommend coverage options and help you
avoid financial loss. Insurance is a protection. Evaluate what kind of protection and what level of insurance coverage is
needed for your business.

Before purchasing insurance, consider all the possible ways of holding down the costs. Maybe it's not reasonable to
cover all perils. Cover the most risky and largest peril first, then work down your list of priorities. Don't get needless
coverage, but don't try to save money by under-insuring or by not covering risks that could cause significant loss. If the
probability is small the premium will be also. Use a deductible as high as you feel your cash flow will allow, given the
need to use insurance in the event of an unexpected occurrence.

Many package policies are suitable for small businesses that they are designed to services, and usually it is less expensive
to add riders than it is to get a separate policy for some risk not covered in the package. This generally means you should
buy all of your coverage from a single agency or broker. If you do opt to purchase more than one policy, avoid
duplications of coverage. Make sure the same risk is not covered under two different policies.

If you have questions about fixed expenses, risk and purchasing insurance for your business, call the SCORE Association
The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Develop A Succession Plan For Business Leadership      by Jim Frichette

The loss of a business owner through death, retirement or disability is a major blow to a small business under any
circumstances. If there is not a small business succession plan in place, particularly in a family business the death can be
devastating to the company and the heirs to the estate. Estate taxes alone can deplete crucial cash from the business.
Voting control may be scattered among heirs and conflicts in points of view can impede the company's operation and
growth. Without a plan, there may not be anyone available who is readily able to take on the responsibilities of running
the company. A successful company, the result of hard work and financial investment can be damaged or destroyed by
the lack of a succession plan.

Although a succession plan, may be an uncomfortable topic, it is a serious business issue that must be discussed and
planned. Whether the transition is an unexpected one or a planned transition, such as the owner's retirement there is
trauma to the business. Your goal as the business owner is to plan ahead, so any business disruption is minimized and the
equity you hold in the business is preserved for you and your heirs.

Evaluate your current employees' potential to assume additional responsibility, particularly as senior leaders of the
company. Consider, employees, relatives or associates, who would be willing and able to take over the business. If you
can successfully identify a chief executive officer and chief operating officer, you are well on your way to planning for
the future. Often in a family-owned business, a family member will be appointed chief executive of the company. If that
individual's strength will not be in daily operations, hire a chief operating officer as the decision maker who manages
business operations. Carefully spell out the range of authority and responsibility for both positions.

Early selection provides time to train upcoming leaders, as you approach retirement. Your plan should consider the
possibility of an untimely demise as well. If no one is available for your key leadership roles, you must decide whether to
have the business liquidated, sold to outsiders, continued by executors or trustees or inherited by your heirs. These are
decisions you should make for the business. Three crucial elements in a succession plan are as follows:

*A will covering disposition of the business.

*A buy-sell agreement to outline the disposal or continuation of the business.

* Funding arrangements, such as life insurance, to carry out detail of management success.

Because of the complex tax and legal aspects of transferring ownership of a business, you should seek professional, legal
and financial advice when putting the plan together. You have a responsibility to yourself and your heirs, to ensure that
the financial gains from your hard work are distributed, as you designate. Tax planning and inheritance planning are
important aspects for consideration as an entrepreneur. Seek out professional advice and establish the legal documents
that will govern the disposition of your estate.

If you would like to discuss leadership succession, succession planning or buy-sell agreements, contact the SCORE
Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Cooperative Advertising Is A Retailer's Choice

Cooperative advertising is simply shared advertising. The most obvious advantage to the retailer is that much of the
advertising cost is paid by an outside source such as a manufacturer or wholesaler. These parties interested in the sale of
their goods will often pay up to 50 percent of the advertising expenses, if you as the retailer feature a particular product
or brand in your advertisement. This is your choice.

Decide if cooperative advertising can help improve your sales and profit. Such advertising publicizes a close relationship
with a well-regarded brand. Brand identification with your store can draw customers. Consumers look to trusted brands.
By promoting your association with well reputed products you create a sense of reliability and confidence in the mind of
the consumer.

If a brand you're selling has consumer appeal, cooperative advertising is a good investment. If you get a 50 percent share
as a dollar-for-dollar match-you in effect save 50 percent on your advertising costs. That's an offer that's hard to beat,
when you are trying to gain visibility in a market made on repeat advertising. Keep in mind that the manufacturer or
wholesaler will generally reimburse you after you have incurred and paid for the expense. Be sure you have budgeted for
the cash flow of the advertising expense.

Cooperative advertising is a way to stretch your advertising dollars. By pooling your resources you will be able to buy
substantially more space or time in the advertising medium of your choice. Or you may choose to run the same volume of
advertisements and simply utilize the 50 percent reimbursement as a cost savings. More often than not a retailer will use
cooperative advertising to pump up the size and frequency of advertising during a promotion or peak season. The
manufacturer often supplies recommended layout and copy for cooperative ads. In some cases, specific elements will be
required in order to receive the cooperative support.

Cooperative advertising can be a real benefit to a retailer. However, you need to make this decision carefully. There are a
few constraints on cooperative advertising. First, you will have to make some compromises in the advertisement to
accommodate your ideas and the manufacturer's or wholesaler's messages. In some cases, this will mean pre-approval of
your ads. Most of the time it will mean your invoice and advertisement are reviewed after-the-fact. If your advertisement
met the criteria set forth by the manufacturer or wholesaler you will be reimbursed.

Cooperative advertising should be integrated in your planning for an overall advertising budget that covers each season.
Be wary of committing to unplanned expenses that add to your overhead costs. Cooperative advertising should be
considered a component of your efforts, not a license to increase overall advertising spending by 50 percent. Also
evaluate the return on cooperative advertising. Do the ads increase consumer spending, foot traffic and awareness? If yes,
then you have found that cooperative ads are a benefit to the success of your small business advertising campaign.
If you would like to discuss advertising strategies, including cooperative advertising, call SCORE. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Establish Business Controls To Focus On Goals

It can be a challenge to remain focused on the goals of the business during the hurried pace of the business day. Much like a football team in the midst of a key play, trying to look at the next part of the game strategy - it's a tall order. To stay on target, create a game plan that covers the big picture, so you can focus on the "play of the day." Business controls are as important to the small office with two employees as they are to the small business with 200 employees.

A control system establishes specific policies and procedures for tasks to be handled on a planned basis. The system measure, controls and provides feedback to the owner about what is happening in various parts of the business. This system
should be as simple as possible to provide information quickly, so the owner can make reasonable business decisions based upon current information. Avoid complicated procedures that lead to confusion, expenses and wasted staff time.

Controls place accountability within the business. Some employees may feel that controls are restrictions. However, the success of the company and the employees' pay depends on the business success. The controls are not meant to be a trap, but rather a quick check to allow everyone to do the job right. A control system is objective and can provide a systematic and routine measure of performance on an ongoing basis. Trends and ongoing employee, manufacturing and service
performance are vital to customer satisfaction and business success.

Getting employees to accept and follow the system is absolutely necessary. Take time to explain why controls are being put into place and the affect you expect a control system to have on the processes of your business. The focus is not on
controlling employees, but rather on controlling processes and quality to the business is better for everyone. You need employee compliance with the new system and their understanding and acceptance is important in creating a reliable
system.

Every business needs policies and procedures that place a measure of control in their processes. Product and service quality means customers and repeat customers. Business is gained because the company is using the most effective
and efficient methods to accomplish tasks.

You may develop guidelines and control systems yourself or bring in a team of employees to help define a system that is useful in their job success, as well as the company's success. A control system should be a part of making the work
smoother not more cumbersome.

If you would like to institute a control system in your business, contact the SCORE Association. The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Develop A Plan Now And Count On Profits Later

A good business plan provides the small business owner with a plan of action to build a successful small business. The business plan examines the environment in which a business operates, describes how the business will function and
anticipates potential problems and opportunities. The plan suggests solutions to problems and responses to opportunities.

It's worth your time to write a business plan. Planning helps you guarantee that you have defined and described business objects such as sales, expenses and the goals of your business. The more accurate your plan, the better able you will be to
follow this business plan as a true operating guide for business. The plan should identify your target customers and how you will gain their business. The business plan is the definitive document that showcases your clear thinking about the
business. If you plan to seek financing, a copy of your business plan will generally be required as a way to substantiate that you have a valid business idea and realistic plans for business success.

From a financing and operational perspective, the business plan should address future contingencies. You should answer the following questions. What will competitors do to offset your presence in the market? What are the new trends developing in your field and how will you accommodate them? After your business is established, how will your make the business grow? Putting your ideas in writing forces you to think realistically about what the business can achieve.

Start-up and existing businesses can both benefit from a written business plan. A free workbook, How To Really Start Your Own Business is available through the SCORE Association. (This workbook provides a framework for developing a business plan and answering key questions that will influence how the business operates. A SCORE counselor can meet with you confidentially to discuss your business plan and how to improve an existing plan or write that first business plan. All business counseling is free and confidential.

If you would like to discuss business planning, business start-up or business expansion, contact SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Save On Small Costs To Win Big At The End Of The Day

The reduction of specific fixed and variable expenses can improve your profit picture. First a word of caution. Do not needlessly cut costs. Legitimate expenses provide the framework for your business and you don't want to cut your operating
budget too deeply. However, you must be ever vigilant when it comes to controlling expenses. Each year, expenses have a way of creeping skywards. It is up to you, to evaluate if those funds are being spent for their maximum effect.

You can reduce costs without cutting specific expenses by increasing the average sale per customer. If you can increase the overall value of a sale to each customer, you then spread the same expense across a larger income. This gives you a better
sales vs. expense ratio. If you operate in a retail store, you may measure sales per square foot. Your goal may be to increase the sales per square foot by certain percentage. Look to sales as a way to improve the success of your business. Beyond offering quality products and services, it is the sale of those goods and
services that keep you in business.

Keep in mind that you need to build in a solid profit margin on sales. A big sales volume with a thin profit margin is not the solution you seek. A part of your product or service line may have a smaller profit margin simply because of competition and market pressure. If that is the case, then you must add a higher profit margin to other goods, so you can obtain an average profit margin, which meets your business goals.

Your goal is to pay the right price for prosperity. Evaluate expenses and look at areas that may be high or rising at a rapid rate. Look at how expenses are distributed from year to year and identify areas for review. Review each segment
of your operating budget. Can you negotiate a better lease? Can you renegotiate a long-term debt at a better rate? Can you earn discounts by meeting accounts payable earlier in the payment cycle? Can you cut specific costs for specific time
frames in order to reduce overall expenses? Ask yourself these and other questions.

Before you can determine if cost cutting will increase profits, you need more information about your business operation. Proper record keeping is the start. Your business records provide the financial data to prepare a budget, profit and
loss statement, break-even calculations and operating ratios. This information can be compare with similar types of businesses to evaluate if your business is operating within industry norms. A break-even analysis will show you the volume
point at which your gross profit equals expenses. From that point on, you begin to move from a loss into a profit situation. The break-even point is a very important piece of information to you as a business owner.

To learn more about controlling costs, increasing sells, improving profit margins and managing profitably, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Is E-Commerce Your Pot of Gold? Visit the FREE Ellensburg NetFair October 9th!

E-Commerce (Electronic Commerce) is hot. More and more small businesses and entrepreneurs are selling on-line.  Do you think your product or service has what it takes to meet the world  market head on and build a bigger, better, more profitable customer base? If you can answer yes to the following  questions than setting up your own Web site with E-Commerce capability could lead to your pot of gold.

1) Can you showcase your product or service on-line?
2) Can you offer faster, 24 hour customer service on-line?
3) Do you have the means of distribution nationally?
4) Are you prepared to invest in a E-Commerce Web site?
5) Are you able to offer payment options?
6) Is E-Commerce a strategic business direction for your firm or home grown business?
7) Can you visit the Ellensburg NetFair October 9, 1999? * This free conference and workshop can arm you with the services, techniques and education needed to propel your company into the 21st Century E-Commerce capabilities.

* The Ellensburg NetFair will be held October 9th from 11:00 AM to 4:30 PM Saturday , in the Vantage Room of Central Washington University 's Munson Retreat Center.

If you answered yes to all of the above you can see the end of the rainbow and the E-Commerce pot of gold! With the Ellensburg  NetFair experience you will have the right knowledge and access to the infrastructure to help you achieve your sales and marketing goals and to put you business on the World Wide Web of Electronic Commerce. At the Workshops learn from the greatest experts such as Amazon .com.  See the multitude of service, development and equipment exhibitors demonstrating and providing the nuts and bolts to launch your E-Commerce business.

All this is free.

The  conference and workshop sponsored by the Ellensburg Chamber of Commerce, Ellensburg Daily Record and the Ellensburg Electronic Community Foundation (www.ellensburg-wa.com).

With your E-Commerce you can be open all the time, worldwide, without bricks or mortar or extra sales people. Be prepared to provide customer service and keep that site fresh and up-to-date. Be your own boss, set your own hours,  feel the pride of owning and operating your own business! These incentives have now become more than  just "wishful thinking" to many American families and recent college grads. Owning and operating your own home-based business,  whether it be a small landscaping company, accounting firm or direct mail order operation, has never been easier or more lucrative. Home computers and the Internet are making it much simpler to download, fill out, and understand the multiple forms needed to begin a small company, and software programs and on-line services make business management and accounting a breeze for just about anyone. Armed with a willingness to "go it alone", some help from the Internet and a home PC, Americans are giving up their "9 to 5" jobs and creating a multitude of home-based businesses dealing with everything from transcription services to catering and beyond.

The Service Corps of Retired Executives (SCORE) is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Keep Records To Keep Your Sanity At Tax Time

You need not face tax time worrying about your various tax claims and exemptions. If you dedicate time and effort to record keeping, you can avoid last-minute worries about having proper documentation in support of your tax filing. The key is to create a record keeping system that is consistent, organized and maintains receipts and other documentation.

Keep a tax calendar. Your tax calendar should show all deadlines for filing returns and making payments. If you refer to that calendar weekly, you'll be able to take action promptly in order to avoid financial penalties. You want to pay your fair share of taxes, without overpaying or owing additional funds to the Internal Revenue Service.

Your checkbook or general ledger should be your major financial documentation. All funds passing through the business should be documented in your checkbook and logged into the general ledger. This is the master record of the financial
transactions of the company. This record of cash flow may be needed for verifying information to the IRS.

Even if you are a solo entrepreneur, you should still set up a separate bank account for all business transactions. This ensures that all incoming and outgoing funds associated with the business are properly documented. If you do not have a business name, open the account in your name as a business account. This account is a master record of the financial history of your business. Don't use it for any personal expenses. Deposit and enter all cash and check receipts into this business account. Post all expenditures through the account. You may keep a separate cash box and records for expenses that you draw from petty cash.

You can set up petty cash as a cash box or as a subsidiary of your bank account. With a petty cash account you can obtain advances for certain expenses. Whatever the amount, the business needs to have petty cash for small day-today expenses,
such as parking or postage stamps. A limited number of people should be authorized to disperse such funds, and signed receipts should be required for any use of petty cash.

You will need additional information from the IRS for tax planning purposes. Information such as depreciation and allowances for interest should be gathered from the IRS or your tax consultant or accountant. You can access tax forms and information on the Internet at the IRS Web site at http://www.irs.ustreas.gov. The site has a wealth of information and can provide insights to help make your tax preparations less complicated. Downloadable publications are available on the Web site.

If you would like to discuss how taxes affect small business or business record keeping, contact the SCORE Association. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Establish Effective Inventory Controls

Inventory control is probably second only to lack of capital as the greatest cause for financial difficulty for most small businesses who sell products. A good system of stock control is essential to offer customers a good variety of
merchandise and a balanced assortment of merchandise. An important aspect of inventory control is stocking and monitoring inventory, based upon seasonal variances.

A year-round calendar should be maintained to detail the overall merchandise-ordering plan for the year. A detailed list of potential merchandise should be prepared and available a few weeks before orders are placed - sometimes months in advance depending on the industry and vendors. January is the time to pick and order your line of Easter merchandise. June is the time to plan orders for Christmas merchandise.

Stock control also means having the right varieties of merchandise when demand is at its peak. While some lines have colors popular all year-round, demand for colors of some items will vary by time of year. Red candles may be on your shelves year-round, but seasonal sales peaks around Valentine's Day and Christmas may demand a larger supply.

Other items show seasonal demand by the product type. Meats for barbecuing sell better over the warm summer months. Sales for pool maintenance products peak during the swimming season. The automobile service garage is sure to have
antifreeze on hand in time for the winter season. Whatever your product line, you will want to consider product trends with consumers, as well as the seasonal conditions that drive consumer demand.

A seasonal calendar for buying and stock control is common to many retailers. If your competitors have seasonal merchandise in stock that you did not order, visit their stores. Find out if their merchandise selection is moving quickly or sitting on the shelf. What merchandise is being heavily discounted by your competitors? Compare that to your own shelves. Gather information that indicates what is happening in the market beyond your sales floor.

Competitive analysis can help you plan your own merchandise selection better for upcoming seasons. If you would like to discuss inventory control, purchasing or merchandising, contact the SCORE.The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Are You Prepared To Ask For A Business Loan?

Access to capital is important to a small business. Many small businesses are undercapitalized and need additional cash to expand operation, upgrade equipment or engage in research and development. More often than not the entrepreneurs
funds are tied up in assets that are not particularly liquid. Ready cash is usually is short supply. Banks are a reliable source of funding for small businesses. SBA-guaranteed loans and commercial bank loans are available to help both the start-up business and the small business that needs more capital to succeed.

Generally, loan officers require the most information from a first-time borrower. Banks may offer an unsecured loan, although that is less likely. Unsecured loans are made based upon assets, credit history and ability to repay. However, these loans do not require you to personally secure the loan with personal or business collateral. The more common secured loan requires that you guarantee your willingness and ability to repay the debt with an asset such as real estate, stocks or securities. Loan packages become more detailed as the size of the loan increases or the length of the repayment timetable is extended.

As part of a loan application you will generally be required to provide: a business plan, a resume, a credit history with references and specific loan documents required by the bank. For both new and existing businesses, banks will want to
know your level of education and practical business experience; management experience is something the loan officer will look for in your work history. In addition, the bank will review your personal credit history.

For existing businesses, the credit history and an accounts payable balance sheet may be requested. A business plan is typically requested by the loan officer. The business plan should clearly describe the business, its goals and objectives, as well as the financial details supporting the tangible goals set for the business. A well-conceived and thorough business plan will have an impact on the bank's perception of your commitment to the business and its financial success.

If you would like to discuss loan application processes, building a loan request package or preparing a business plan, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Improve Your Networking Know-How

The most effective form of advertising is also the oldest: word-of mouth. Bright ads and slick brochures don't compare to an informed recommendation (or warning!) from someone trusted and respected by potential customers.

Word-of mouth can be just as effective when the information comes directly from you. By networking with colleagues, allied businesses, and potential customers, people can learn more about who you are and what you do. Networking is also a
great way to become more attuned to the issues that affect your customers their needs, concerns, and preferences-giving you a better chance of being in that proverbial "right place" at the right time.

Networking is no different than attending a social gathering. In fact, it's better because you already have something in common with nearly everyone you meet. Of course, you should never adopt a "who are you and what can you do for me" attitude. Networking works best when there's no pressure to make a sale. Ask questions and always listen. First impressions are important, but they also can be enhanced or changed over time.

To begin building your business network, consider the following:

Professional societies. Nearly every type of business has a national association meetings and activities. Along with providing a great source of contacts, professional societies offer volunteer opportunities where you can demonstrate your initiative, cooperative spirit, and leadership qualities.

Customers' professional societies. If you really want to know what your customers are thinking, get involved in organizations that represent their interests. Do some research before you sign up, however. Some groups may have restrictions on membership, while others may have fees that exceed your expected returns. On the other hand, many groups may encourage businesses such as yours to advertise in their publications or participate in special programs.

Chambers of Commerce Business Roundtables. These groups offer valuable exposure within a particular community or region. While other members may not be in your target market, they can provide valuable leads and referrals (there's that word-of mouth advertising again! ). Many also provide opportunities for small businesses to "show their stuff' via trade fairs, demonstrations, and media features.

Community service organizations. This is a great way to combine a personal interest with your business. Many groups may have a need for your type of service, giving the opportunity to do pro bono work in return for free visibility. What's more, your fellow volunteers may also be potential customers.

You can plug into a wealth of business know-how by contacting your local chapter of the Service Corps of Retired Executives.
The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Define Home Office Technology Needs Before You Buy

For years, one of the biggest obstacles to setting up a home-based business was the cost and availability of office equipment. Now, there is a wide range of affordable products designed specifically for home offices. And best of all, you
don't have to wait in line to use them.

But before you go on a spending spree at the local electronics supply store, ask yourself a few questions about the kind of home office technology you need now, and in the future. Is the equipment essential for your business? Will you use it
often enough to justify the cost? If the answers are "yes," shop around, compare product reviews, and seek guidance from experts and other users. And keep in mind that in order to be claimed as business expenses, this equipment must be
used solely for your business.

Here are some guidelines for making decisions about home office technology tools:

Computers. While the rule of thumb -- buy as much as you can afford-still applies, don't make your decision on price alone. In this era when features and capabilities change on a seemingly daily basis, even the "top of the line" computers may be inadequate for your needs in a matter of years. Consider the type of work you do, your communication and networking needs, and any peripherals (e.g., printers, scanners, Zip drives). Look for equipment that has sufficient processing speed and memory for your immediate and mid-range needs, and can serve as a foundation for future upgrades and add-ons. Another plus is the computer's adaptability for other uses when a system upgrade is necessary.

Laptops. These devices are handy for taking your "office" to client meetings, presentations, or even on vacation. Some may double as your "main" computer, but many laptops' screens, keyboards, and processing speeds are not always suitable or comfortable for extended use. Weight and ruggedness are also important. And be sure that your laptop's software is  compatible with your home system.

Faxes. Although we're well on the way to becoming a paperless society, you'll still need to exchange documents via fax. A variety of compact, affordable fax machines double as copiers and scanners. Many computers have built-in fax capabilities, but be careful about tying too much of your home office to one system. What could be worse than to have your computer "crash" while receiving an important, time-sensitive fax!

Telephone. A cordless phone is particularly handy for the home office; it enables you stay on the line with your clients while you retrieve files, or check on orders. The new 900 MHz models provide excellent coverage, and can be used next to
your computer without interference. An answering machine and/or voice mail is also a must for catching calls while you're away. Your message should be brief, cheerful, and professional. And sign up for call waiting and call forwarding if your
telephone company offers these services; nobody likes to hear a busy signal or an endless series of rings.

If cost is a concern, or you don't expect to require certain types of equipment for a while, explore alternatives. It may be possible to efficiently share certain pieces of office technology with other home office entrepreneurs. Many apartment/condominium complexes and planned communities are incorporating business centers into their public facilities; others allow occasional use of their office faxes and copiers for little or no charge.

The best source of information about home office technology is your local chapter of the Service Corps of Retired Executives.
(SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Review Effort And Reward Performance

Performance reviews and merit raises are a part of your role as employer. Once you hire employees, it is your responsibility to train and motivate them. In addition, you should routinely review performance and offer merit increases as appropriate. As an entrepreneur, the business is your livelihood, as employees, your staff consider their jobs their livelihood. Reward excellent performance, so you can retain trained and qualified employees. It is generally less costly to keep a good employee, than to regularly hire, train and hire again if good employees leave because of low compensation.

Often a personal regard and camaraderie develops between the small business owner and his or her employees. Such personal contexts can result in subjective decisions, when it comes to promotions and pay raises. To safeguard your

decisions as relevant to work performance, maintain clear guidelines for employee performance. Measure employees against standards that have been set and are communicated from employer to employee. Such standards place job evaluations and merit increases on firm footing in terms of clear expectations for work to be performed and performance results. A performance review provides a forum for you to review an employee's performance and share your observations with the employee. The employee should be able to share his or her perspective and feedback as well.

Be sure that you have clear job descriptions in place. More often than not performance problems can be traced back to unclear expectations or expectations that were not understood by the employee. A written job description provides aclear description of the skills and abilities required to effectively complete the job you need done at your company. The description should be written for the position and work to be performed, not to accommodate someone who may currently be filling the position. The more objective the standards, the more effective you can be in matching performance and skill to the job, rather than focusing on personality and people you may like to a greater or lesser degree.

A merit rating system, with grades or levels for positions within the company, can help you establish a reasonable pay scale for each job. Merit ratings determine what salary within a salary range an employee should be paid. Your industry's trade association will often have a listing of average and median salaries for positions within your industry. The advantage of ranges and average salary information is that you can avoid setting salary ranges too high or too low for a given position. A part of your merit system, may be specific percentage raises for specific performance levels. An employee who performs his or her duties at the level of "excellent" would receive a larger increase than someone who performs "good" or "average." Factors beyond fulfillment of job duties are often considered as part of merit and performance reviews. Dependability, initiative and teamwork are common areas for employee evaluation.

If you would like to discuss employee reviews and merit pay, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effortwith The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Are You Ready To Be A Millennium Entrepreneur?

It's all about small business. These days the words, entrepreneur, innovation and millennium signal the way of the world. There are 23.5 million small business owners in the U.S. and you can be one of them today and tomorrow in the year 2000. The question --- entrepreneurship right for you?

You say yes. Okay, then take time to prepare because the most common reason for a small business to fail is lack of management skills. Bulk up now on management knowledge and skill, before you test yourself in the small business world. The good news is management skills can be obtained through training & work experience and the advice of a business counselor.

As you consider your personal and business goals, ask yourself tough questions. Are you e self starter? Do you have the stamina to start a new business? Many entrepreneurs say that there is no 40-hour workweek much more like 50-70 hours. Do you have capital or access to capital? Can you plan the course of your business for the first year? Are you ready to be both the company thinker and doer?

Look at resources to help you prepare for business ownership. Opening a small business is a big risk, which does offer the potential of a significant payoff. Profit, personal control, pride of ownership and self reliance are the potential wins of entrepreneurship. Small businesses do succeed. In our country small businesses generate more than half of all sales in America. If you are a risk taker, small business ownership may be for you.

Plan and prepare to succeed in business. Small business success is not random; it is the result of a concentrated effort Ask yourself the following questions. if you answer yes, you have the basic qualities of an entrepreneur. If you answer no to any of the questions, evaluate these as areas where you can build your skills.

* Is my product or service different from others on the market?
* Do I have adequate financial resources or access to capital?
* Do I have management experience to help me run a business?
* Am I ready to commit to the demands of owning a business?
* Can I take responsibility and make effective decisions?
* Am I in good health with the stamina for the job ahead?
* Do I have the encouragement and support of my Family?

If you need to differentiate your product or service, gain management experience, or gain access to capital, ask for help. Entrepreneurs are often individualists who want to do it all on their own. Before you take the plunge into entrepreneurship, take advantage of every resource that can help you succeed. The savvy entrepreneur looks for ways to succeed by tapping into existing resources, so his or her time can be spent on crucial issues and not be spent working on getting past a steep learning curve.

Yon can call the SCORE Association (Service Corps of Retired Executives) and receive free and confidential business counseling, including information and assistance on the business planning process. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Let Your Ideas Take Flight

Have you decided to open your own business? If this is your dream, start planning to make it a reality. Research, planning, hard work and innovation can build your business success. As you get started, seek out advice. You are the one making the decisions, now be sure those are informed decisions.

There are many details that comprise business operations. Ask yourself, how should the business be organized? Answer-sole proprietorship, partnership or corporation. Do you know about the licenses, permits, inspections and taxes you face? The answer had better be yes. As an entrepreneur, managing the details is your business.

There is help available. The SCORE Association (Service Corps of Retired Executives) is one source of expert advice. SCORE is a nonprofit association, which seeks to aid the formation, growth and success of small business nationwide. Throughout the country 12,400 volunteer, business counselors donate their business skills to you. Their collective expertise as business owners, executives and managers can bring you answers to important business questions. SCORE offers small business counseling and mentoring as a confidential, no fee service.

SCORE's business counselors have worked for successful small businesses, as well as such noted companies as IBM, Xerox, Exxon, Citicorp/Citibank and Procter and Gamble, to mention a few. You can be mentored by bankers, accountants, marketing experts, computer programmers, line managers, human resources professionals or CEOs. SCORE brings expertise from numerous fields from the general issues every business must face, to specialized areas such as
defense contracting, direct mail marketing and toy making.

The SCORE Association was formed in 1964 as a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide.  As part of pre-business counseling, you can receive a free copy of the business-planning workbook How To Really Start Your Own Business. More than 12,000 volunteer members provide individual counseling and business workshops for aspiring entrepreneurs and small business owners. SCORE has assisted nearly 4 million Americans with small business counseling. Visit SCORE on the Web (www.score.org).

For information about starting or operating a small business, call the Service Corps of Retired Executives (SCORE). SCORE in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our local web site at http://www.ellensburg.com/~score.

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How Much Should I Charge?

Setting a fee schedule can be one of the most perplexing issues for new entrepreneurs, particularly those who work on a per-project basis. Your prices should reflect the value of your work, and produce a realistic profit margin. On the other hand, customers may have different opinions on what's "fair" based on their expectations, experience in contracting for such services, and knowledge about your capabilities.

Many trade journals and professional organizations publish baseline rates and fees on a national, regional, or local basis. Networking with other entrepreneurs can be helpful, though some consultants may be justifiably reluctant to discuss fees with potential competitors. Don't stop at simply learning the "going rate" for your services; learn the story behind those prices. Adopting another company's fee schedule may not be appropriate for your business or your customers.

A good starting point is to set an hourly rate. As you gain experience, you'll be able to set flat fees for projects based on their complexity, time and resource requirements, and other factors. Many rates can be based on what a company would pay someone with your skills to do the same kind of work in-house.

Say a comparable full-time position for your service pays $30,000 a year. Dividing by 2,000 (approximately 40 hours a week for 50 weeks) results in $15 per hour of straight pay. Next, add a percentage to cover the cost of fringe benefits that employers normally pay (e.g., Social Security, unemployment, hospitalization, etc.). Generally, fringe benefits equal one-third of an employee's pay. Then, figure a percentage for overhead costs: office space, equipment, supplies, vehicles, and time devoted to business development and research. Fifteen percent is a common premium.

You may also want to consider a profit percentage for funding capital investments or future growth, and surcharges for time-sensitive assignments that may require extra effort or rescheduling on your part. Many consultants also offer discounts for high-volume customers.

Other variables that influence your prices may not become apparent until after you've been in business for some time. Regardless of your method, make sure that you and your customer agree on a price up front, especially if expenses and surcharges are involved. If the customer wants to negotiate, weigh the pros and cons of a lower fee. Is this a one-time project, or will there be a steady stream of work to come? Does the client have a reputation for reliability? Will you still be able to cover your costs of doing business?

Above all, be consistent. You may be tempted to accept less money because you need the work, or you want to build a relationship with a particular client. Be careful; your clients may expect that rate all the time. Attempts to subtly "nudge" your prices up without warning could result in loss of both your customers and your good name.

For more help with setting a fee schedule, contact your local chapter of the Service Corps of Retired Executives (SCORE). SCORE in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Good Employee Attitudes Help You Make Money

Psychologists have long known that employees with good attitudes toward their employers produce better at work. Job performance is affected by how employees feel about themselves, their employers, their fellow workers and their customers. Your business success depends largely on the attitude of your employees. Employees with poor attitudes affect customers negatively, discourage other workers from doing their best and do not perform to their own level of capability:

When examining employee attitudes, start with yourself. Be genuinely interested in the other people you work with-not only employees, but also customers and suppliers. Respect your employees' dignity. Be patient, understanding and helpful. Let employees know that they are important to your and your business. Let them know that performance will be rewarded. Help employees identify what will make them feel fulfilled and happy within the job. While you want to be sensitive to the emotions of employees that doesn't mean you should ignore poor performance. mistake, meet with the employee in private to discuss the issue.

Include your employees as team members. Ask for their suggestions and respect their ideas, even if you do not always agree with them. When you use an employee's idea, remember to give the employee credit. Rewarding performance encourages other employees to speak up with their ideas.

Listen to your employees. For example, if your small business decided to conduct an employee survey, would you be willing to respond by making changes in the business? What if the survey revealed that all the executives' offices were air-conditioned and the workspaces for office workers were not air-conditioned, would you add air conditioning for office workers? It may seem like a small issue, but these are the kinds of topics that arise within companies and can bring about employee dissent.

If you would like to discuss employee surveys, team building or consensus building, contact the SCORE Association (Service Corps of Retired Executives). SCORE, in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Personal Service Is A Small Business Advantage

Good personal service in retail establishments is difficult for many firms to achieve. This is especially true in larger department stores and retail chains, where the overhead costs of adding sufficient service personnel can be prohibitive. Increasingly self service is the mode of service today.

The gap between full-service and self service provides entrepreneurs with the opportunity to deliver personalized service. Know you customers, their wants, needs, preferences and price point. Your knowledge can provide them with a better shopping experience and your store with more loyal customers. The small business owner has the opportunity to order a select line of merchandise or offer a customized line of services. The level of customization and targeting a small business can achieve will draw a specialized audience loyal to a particular product or service category. The personal service that accompany such offerings close provide value-added benefits to the consumer.

Keep in mind that exceptional customer service doesn't just happen. Your small sales force should walk in the door well skilled, well paid and well motivated to perform. If personalized service and strong product knowledge are part of your marketing and sales strategy, you may be paying a more premium price for your sales agents. If you are paying those key staffers above average wages, be sure that you incorporate sales and service goals into an incentive plan. Get a return on the staff investment that helps grow the business.

One aspect of good personal service is matching the customer's needs with the business's products or services. The better this match the better the personal service. Another aspect is customer relations. Each buyer should be made to feel important and valued. Only when both aspects of the relationship have been fulfilled can a profitable, long-term relationship be forged between the patron and the business. Conduct period role-playing or training sessions. Keep your skills and your employees skills keen in three areas: demonstrating a sincere interest in the customer; listening to the customer to ascertain his or her true needs; and building product and service knowledge to offer customers informed suggestions.

A sound sales program is based upon the sales people. Staff selection, staff training and staff compensation. The small retailer doesn't usually need a formal structured training program. However, routine sales meetings and informal training sessions can help employees perform better in their day-to-day activities. As the business owner, all these efforts are designed to help you draw more sales and build a solid bottom line for the business.

If you would like to discuss personalized customer service, personal selling or sales force training, contact the SCORE Association. The Service Corps of Retired Executives, in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a  cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group  - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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E-Business: Small Businesses Become Virtual Giants On The Internet

Small businesses on the Internet are creeping up behind large multi-national corporations and giving them quite a scare. On the Internet a small business like Amazon.com can compete with, and even surpass, large multi-nationals like Barnes and Nobles. According to Booz, Allen & Hamilton, there are 40 million shoppers on the Internet. In the last nine months, this number grew by 367%! With Internet traffic doubling every 10 days, it is expected that there will be 130 million consumers on line by year 2000. Sales on the Internet are expected to reach $600 Billion by 2002. But can all businesses profit on line? The best selling products on line appeal to the technology savvy or to a wide geographic audience. These are computer-related items, specialty items difficult to locate elsewhere or items that can be purchased less expensively over the Internet.

E-Business Lowers Business Costs

A global business on the Internet does not require bricks and mortar or a staff around the world, just a Web Site and perhaps one central warehouse. An e-commerce (electronic commerce) Web site can cost from $50 to $600 a month depending on the complexity and size of the web site. Generally, the cost of the site is about 8% of that businesses' revenues. Because business transactions are primarily handled electronically, there is no need for a sales staff and personnel. The virtual storefront also minimizes thefts, damage, or breakage of the inventory.

E-Businesses Are Accessible Anywhere, Anytime

The audience on the Internet is global. Consumers all over the world are shopping on line. A Web site can be multi-lingual, allowing visitors to choose their language upon entering a site. When it is 3:00 am here, a customer in Sweden, where it is 10:00 am, can make a purchase. A business on-line is open seven days a week, 24 hours a day. Customers can shop at their convenience. The cash register is open all day and night, even while the business owner is sleeping.

E-Business Strengthens Customer Service

A Web site allows a business to address its customers on a personal level. The computer can recognize and greet repeat shoppers. For example, when Mr. Smith, a frequent buyer of books on the Civil War, logs onto "booksale.com" a message could read, " Welcome back Mr.Smith! Check out our new book on The Civil War." The business owner can also follow up with Mr. Smith by sending him a catalogue of Civil War books. The computer can track customer's buying trends so the business owner can market accordingly.

E-business Develops Customer Loyalty

How often do you learn all about a business upon entering a store? How often do you walk away with a free sample? A Web site allows businesses the opportunity to give customers information about their company while offering something of value. For example, a company selling cooking utensils could offer the visitor recipes, a software company could provide interesting articles about the industry, a music store could offer sound bites of new music. By reading about the history and background of a company, the customer feels they have chatted with the owner. Personalizing a company creates customer loyalty. A Web site is soft sell. It gives the business an opportunity to market itself while gently leading the audience to purchase its products.

To learn more about developing an e-business, contact the SCORE Association. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Base Your Organization On Business Goals And Objectives

The structure of a business should be based upon both long-term goals and short-term objectives. An organization built on any other basis will have an unsound structure. Structure is important in a small business. You have little room for error. Whether you follow a specific quality program or not believe in the concept of doing it right the first time. Make that concept your mantra and your daily habit. Your success depends upon it.

The starting point for your success plan should focus on long-range goals. Decide what you want from your business. Do you want to be a leader in the field? Or do you want to be a dominant player in your own local community? Are you content to make a good living for you and your family? Or do you want to make a million before you're 50? Be honest with yourself. Your goals will guide you in setting your overall direction, as well as the short-term objectives to help you achieve

those goals.

* Here are a few basic steps you can follow to allow you to meet your objectives and achieve your goals.

* Develop an overall goal.

* Define two to three key objectives.

* Develop criteria for measuring the firm's progress.

* Refine these objectives with implementation and measurement strategies.

* Develop timetables and action plans to support your business objectives.

* Get everything in writing. Establish a frame of reference for the work ahead.

The six steps above can help you set forth the organizational framework for your success. These are the goals you have set forth and you can adapt them, as they may need to be updated over time. In the meantime, you can set a clear course for your business and act in accordance with your plans for success. You should be constantly alert to the need for organizational change to meet objectives. Part of doing it right the first time is giving yourself time to reflect and adjust your plans as needed.

Whether you are opening a business for the first time or have operated a successful company for years, consider obtaining an outside opinion. A sounding board from outside the company can often offer insights that help you be a more effective entrepreneur. You can call upon the SCORE for free and confidential business advice and mentoring.The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Small Businesses Offer Credit To Customers

Offering credit is essential to the success of many businesses. While many firms could not exist without extending credit, it is a high-risk venture for the business owner. The reason this is such a risk for the entrepreneur is the limited amount of ready cash that remains in the business at any one time. The more outstanding debt, the less cash in hand. If you plan to offer credit, mange the process carefully.

Credit must be managed with firm controls. The objective should be to achieve the greatest sales with the least amount of loss. Every business that offers credit needs a written credit policy. That policy should be communicated to employees, so they understand their obligations in accepting credit. The policy should state specific standards under which credit will be extended, such as a good credit history from a credit bureau or Dun & Bradstreet report and good bank references.

Unfortunately, many small businesses are lax in their investigation of credit histories. They may take evidence of one credit card as evidence of low risk. In fact, many consumers who are overextended have more than a single card and would refer only to those cards where they are up-to-date with their payments. If your firm is selling to other businesses, make sure you obtain good credit references from their suppliers.

Make credit checks a routine process. You may be accepting credit cards from consumers, but in the case of business customers you may be issuing credit in the form of payment terms for a 30-day period. A periodic review of each account is essential in order to control the age of your receivables. The longer money has been outstanding, the more difficult it becomes to collect that money. If you find that an account is consistently overdue, reduce the credit limit or cut off credit entirely. Credit means someone is using your product and/or service and your money in order to do their business. Your obligation is to ensuring that your customers pay their debts.

You will need a system for following up on overdue accounts. It may be first by a notice on the next bill, accounting the late account. The second notice may be a letter followed by a personal phone call. The final step, if required, may be to turn the account over to a collection agency or attorney for action. The key is to manage the process before you ever reach the point where the debt is either so old or large that you have to take extreme measure to collect the money owed to your business.

If you would like to discuss credit policies, accounts receivables or managing in-house collections, contact the SCORE Association. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Financial Management Of Small Firms Is Different

The opportunities and challenges encountered managing a small firm are different from those of a large corporation. The owner of a small company must depend primarily on trade credit, bank financing, lease financing and personal equity to finance the firm. Some financial management problems are similar in the large and small firm.

The analysis required for a long-term investment decision is much the same. The decision as to whether to purchase heavy machinery requires similar considerations, though of course, the financing alternatives available to the large and small firm are different.

Working capital (sometimes referred to as "circulating capital") is the difference between current assets and current liabilities. Lack of close control on working capital is one cause of business failure. The small business owner must be constantly alert to changes in working capital, the cause of these changes and their business implications. It is helpful for the owner to think of working capital in terms of its components:

Cash and equivalents: This most liquid form of working capital requires constant supervision. A good cash budgeting systems provides answers to key questions such as: Is the cash level adequate to meet current expenses as they come due?

What is the timing relationship between cash inflow and outflow? When will peak cash needs occur? When and how much bank borrowing will be needed to meet any cash shortfalls? When will repayment be expected and will the cash inflow cover it?

Accounts receivable: Almost all businesses extend credit to their customers. Is the amount of accounts receivable reasonable relative to sales? How rapidly are receivables being collected? Which customers are slow to pay and what should be done about them?

Inventory: Inventory is often as much as 50 percent of a firm's current assets, so it's workshop sharp and continued scrutiny. Is the inventory level reasonable compared with sales and the nature of the business? What's the rate of inventory turnover compared with other companies in your type of business?

Accounts Payable: Financing by trade is common in small business; it is one of the major sources of funds for entrepreneurs. Is the amount of money owed suppliers reasonable relative to purchase? What is your firm's payment policy doing to enhance or detract from your credit rating? What's the timing pattern between payment of accounts payable and collections of accounts receivable?

Notes Payable: Notes payable to banks or other financial sources are a secondary financing source for small businesses. Is the amount of bank borrowing reasonable relative to the equity financing of the firm? When are payments due? Will funds

be available to make these payments on schedule?

Accrued Expenses and Taxes Payable: These are obligations of the firm at any given time and represent expenses already obligated, even in payment is not yet issued.

If you would like to discuss business financing, understanding financial statements or budgeting, contact the SCORE Association. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Learn To Project Cash Flow To Avoid Financial Trouble

Sound financial management means knowing the firm's cash flow, forecasting cash needs, planning to borrow at the appropriate time and substantiating the firm's payback ability. Even a business with respectable sales volume is not protected against financial disaster, and it's often due to poor financial planning.

Too often small business owners feel that their knowledge of the line of business is sufficient to ensure their business is a success. However, it's not good enough to have $ 15,000 in capital and a good idea for a business. You must figure cash flow over many months to construct a reasonable cash flow projection. One of the common failings of start-up companies is the lack of capital. Cash constantly flows into and out of a business. A certain amount of the owner's investment in the business should help provide the liquid assets for cash flow.

Without a floating supply of cash, almost every business will experience problems associated with the lack of liquid cash. A lack of cash to meet debts or maintain product supply can threaten a business. Bankruptcy can and does occur with otherwise profitable businesses, when there's insufficient capital to carry the business through a cash crunch. If you don't know how to develop a cash flow plan, ask for help.

As an entrepreneur, you want to minimize the risks and maximize your chances for business success. By seeking advice and assistance when it comes to financial planning, you are taking responsibility for the operational details that can make or break a business. Before you enter into contracts, have your attorney review the language to be sure that the contract works in your favor and that you understand how you are bound by the agreement. Consult with your accountant regarding financial and financial planning issues.

You can also call upon the SCORE Association (Service Corps of Retired Executives) for free and confidential business advice. SCORE, in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Successful Entrepreneurs Know When To Ask For Help

Entrepreneurs are independent by nature. Business owners take the risk of entrepreneurship because they have bright ideas and the skill and determination to get the job done. Often entrepreneurial beginnings can be traced to starting out alone. But, there is no need to go it alone. Resources are available to help entrepreneurs succeed and succeed more quickly. It is admirable to go it alone, but it may make sense to call upon others for some help if it means greater success for your business.

There is an insurance policy available to help you succeed and there is no premium to pay. The business back-up we're speaking of is SCORE. More than 12,000 working and retired business managers and business owners donate their time and talent to help entrepreneurs. SCORE volunteers provide business counseling and mentoring to entrepreneurs as a free and confidential service. Experts in accounting, finance, human resources, law and marketing are available to give advice and counsel you on business issues. These volunteers serve in one of 389 SCORE chapters throughout the United States. SCORE counseling is free and only a phone call away.

SCORE counselors bring extensive business backgrounds to the table. Their expertise is donated to help you bring more resources to your business, without adding expenses. If you want to discuss business planning, a SCORE counselor can help. If you want to discuss the tax implications of changing your business from sole proprietorship to corporations, SCORE can help. And, when needed a SCORE counselor may suggest that you consult with your attorney or accountant for specialized guidance regarding current laws. In addition to counseling, SCORE offers low-cost workshops and seminars on a variety of business topics ranging from how to start a business to developing a succession plan.

As the business owner, you make the critical decisions that affect your business. Sometimes you will pay for the advice of consultants and experts. Perhaps you will now call on SCORE for business advice and mentoring that doesn't cost you anything. SCORE can offer this service free of charge, because so many professionals around the country have succeeded in business and want to share their real-world knowledge with others.

If you would like to discuss business planning, business growth strategies or a specific business issue, contact SCORE.

The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Marketing Is An Important Element of Business Success

If you are in business, you want to stay in business and see your company grow. Marketing is an important effort in gaining prospect attention, building product or service demand and winning customers. Your marketing effort is the sum total of the sales, pricing, promotional and advertising efforts implemented to promote the flow of goods or services from your business to the consumer. Marketing includes having the right merchandise or service, selecting the right location, enacting effective sales programs and promoting your company and its wares to the buying public.

It's easy for the small business owner to find excuses for neglecting marketing. Most small businesses operate on a no-frills budget and many owners consider marketing as something they can't afford or a soft expense. Owners have said to me "I have to pay the bills. Marketing I can cut." True marketing is an expense that can be reduced or cut. The question that then arises is how, without marketing, do you propose to gain those much-needed customers that mean sales.

It's cliche to say you have to spend money to make money, but it is absolutely true. If you do not effectively market your company, brand, image and products or services, you won't be in business for long.

Marketing is an investment in future sales. As an entrepreneur, you must always be looking into the future and to the next sale. Customers need to be aware of your company and what it offers. Marketing is the way in which you gain those customers. Keep in mind the four P's of marketing - product, promotion, price and place. These four elements need to work in tandem to generate the consumer interest and trigger the buying response in your audience.

Develop an annual marketing plan within your overall business plan. Figure out when you need to expend resources on a special price promotion, new product launch or advertising awareness campaign. Other aspects of your promotion may be in-store signage, outdoor signs, direct mail pieces, joint promotions or product brochures. Be prepared to define the tools that will be most helpful in bringing you business. Once defined, invest money in marketing as part of your monthly operating expenses.

Don't spend needlessly, but don't try to undercut expenses in a way that directly affects your communication with potential, customers and those all-important repeat customers. If you would like to discuss marketing planning or developing a marketing budget, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Marketing Is An Important Element of Business Success

If you are in business, you want to stay in business and see your company grow. Marketing is an important effort in gaining prospect attention, building product or service demand and winning customers. Your marketing effort is the sum total of the sales, pricing, promotional and advertising efforts implemented to promote the flow of goods or services from your business to the consumer. Marketing includes having the right merchandise or service, selecting the right location, enacting effective sales programs and promoting your company and its wares to the buying public.

It's easy for the small business owner to find excuses for neglecting marketing. Most small businesses operate on a no-frills budget and many owners consider marketing as something they can't afford or a soft expense. Owners have said tome "I have to pay the bills. Marketing I can cut." True marketing is an expense that can be reduced or cut. The question that then arises is how, without marketing, do you propose to gain those much-needed customers that mean sales.

It's cliche to say you have to spend money to make money, but it is absolutely true. If you do not effectively market your company, brand, image and products or services, you won't be in business for long.

Marketing is an investment in future sales. As an entrepreneur, you must always be looking into the future and to the next sale. Customers need to be aware of your company and what it offers. Marketing is the way in which you gain those customers. Keep in mind the four P's of marketing - product, promotion, price and place. These four elements need to work in tandem to generate the consumer interest and trigger the buying response in your audience.

Develop an annual marketing plan within your overall business plan. Figure out when you need to expend resources on a special price promotion, new product launch or advertising awareness campaign. Other aspects of your promotion maybe in-store signage, outdoor signs, direct mail pieces, joint promotions or product brochures. Be prepared to define the tools that will be most helpful in bringing you business. Once defined, invest money in marketing as part of your monthly operating expenses.

Don't spend needlessly, but don't try to undercut expenses in a way that directly affects your communication with potential, customers and those all-important repeat customers. If you would like to discuss marketing planning or developing a marketing budget, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Prepare A Complete Loan Application

It seems simple. If you want a bank to loan you money, then you want to present a strong case for your business as a safe investment for the bank. Small business owners are indeed turned down for much needed loans. Often the bank's decline can be traced back to an incomplete or inaccurate loan application, business plan and/or financial statements.

Loans are often turned down because the loan application or supporting documents are poorly prepared. If you find yourself in a cash crunch, you want to obtain a loan quickly and efficiently. To gain the confidence of the lender, you must demonstrate both your seriousness and preparedness. Loan officers look for red flags in packages. A well-prepared package that accurately reflects the business and provides all of the information requested, helps to indicate your seriousness about receiving the loan and being both willing and able to repay the debt.

Make bank contacts long before you need them. If you're starting a business, get to know the loan officers at your bank. They will be more comfortable making a loan to a person they know. Early meetings give you a chance to tell loan officers about your business and its aspirations. You begin laying a foundation for a business relationship. A good, long-term banking relationship brings valuable goodwill, which can improve your ability to do business. Prepare for the loan process early. Start by obtaining a loan application. Know what the bank will expect of you, before you plan to ask for money. Several common elements of a loan application package appear below.

The Company's Business Plan.

This plan is a complete description of the nature and type of your business. The plan includes resources available to you and how you plan to put resources to use, in order to meet your goals. Specific goals, time lines and financial objectives should be included in the plan. In addition, the plan should include a one-page executive summary that provides a synopsis of the overall plan. Your business plan may average three to thirty pages in length, depending on the complexity of the business. Your plan should include an assessment of your competition and your role and strategy in the marketplace.

The Company's Balance Sheet.

The balance sheet is a listing of the assets and liabilities of the firm. This statement gives the bank an idea of the stability of your firm. If the business is a start-up, include a statement of assets and start-up capital that will be brought to the firm. This statement may include your own financial contribution, as well as that of a partner or investor.

The Company's Cash Flow Statement.

This statement will show how much liquid cash is available within the business. It provides a snapshot of how sales and expenses affect your operating cash on a monthly basis. The cash flow statement provides the bank with a picture of how much cash you have on hand and whether you will be able to assume an additional monthly expense in the form of a loan payment. A start-up company will often be asked to prepare a cash flow projection. This start-up projection will take into account the tendency for sales to begin slowly at first and build over time.

Your Resume.

If the loan officer does not feel you have the experience necessary to develop a successful business, you may have to provide a statement of your personal assets and pledge some of those assets as collateral for the loan. A lack of management experience is often cited as the main reason for small business failures. If you can demonstrate management skills that

encompass: financial, operational and employee issues in your resume, then you build the bank's confidence in the amount of knowledge and skill you can bring to operating a business effectively. This resume is most often requested of start-up businesses; however, a business owner should be prepared with his or her resume as well.

Whether you are currently in business or planning to start a new company, begin planning now. Even if you don't need a loan today, it is good business to prepare a business plan that outlines the goals and outcomes you expect from the business.

The business plan takes your ideas and puts them in writing, so they remain tangible to you and become tangible to potential lenders.

If you would like to discuss loan application preparation or business planning, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Make A Positive Impression with Presentations

A presentation can be an anxiety-ridden experience for a new entrepreneur, especially if you have little training or experience. When you're self employed, however, you can't pass the spotlight to someone else. A presentation may be needed to win a new assignment, secure financing, brief clients on a project's status, or address a group of potential customers.

While the mere thought of public speaking may be enough to bring on a case of laryngitis, you have more control over the situation than you may realize. All it takes is research and preparation-the same steps needed for every other business decision.

Here are a few pointers on presentations:

Understand the ground rules. What is the purpose of your presentation? What kind of information does your audience want? Is the format a stand-up address or a conference table discussion? How much time will you have for the presentation and follow-up questions? By getting answers to these basic questions, you'll have a head start on organizing your thoughts.

Get to the point. The first 30 seconds usually determines whether you capture your listeners' attention. The remaining time can last an eternity for unorganized speakers, and pass in a wink of an eye for those trying to say too much. Begin and end with your strongest points. Never start off with an obscure joke or anecdote that has no relevance to your topic.

Avoid "over preparing." A presentation that's too tightly scripted can be derailed in an instant by an unexpected question or distraction. Notes are fine, but a thorough understanding of your subject is better. You'll be better able to handle questions and keep your presentation on track.

Practice makes perfect. Perform some "dry runs" with people who can provide honest and fair feedback, and understand your intended audience's perspective. This will enable them to make a more informed evaluation and pose relevant questions.

Stay focused. Although you've rehearsed, you may still get the feeling that time is running out and quicken your pace. Or, you may want to ad-lib because you sense there's too much time remaining. Relax; if you're organized and provide good information, your listeners will be looking at you instead of their watches. An occasional built-in pause will also help you reset your pace, and add impact to what you just said.

If you don't know, say so. Never try to bluff your way through a difficult or unexpected question. Instead, admit that you don't have the information in hand, but offer to follow-up afterward. That's usually all it takes to get things back on track.

Need assistance with other business-related issues? The answers are as close as your local chapter of the Service Corps of Retired Executives. SCORE's experienced volunteer counselors are ready to help you create your own small business success story.

The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

 

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Sales Growth Helps You Grow The Business

You need new customers, repeat customers and more sales in order for your business to grow and profit. In most companies, even a five percent sales improvement will have a positive effect on the bottom line. If a business doesn't grow its sales volume, it will become stagnant. Rarely does a company that maintains the same sales volume year after year thrive. Some such companies go out of business because market share is captured by competitors.

Planning for sales growth should be an ongoing activity. Progress to reach sales goals should be measured monthly. A one-month drop in sales can be corrected; a three-month downturn is much more difficult to remedy before year-end. Examine

your sales records to identify sales trends. Do certain products and services sell particularly well? Are there other products or services that don't move at all. Do you see seasonal variations in sales? Your sales goals should be set based upon indicators of past performance. Do you get most of your sales at the beginning or end of the month? How does weather affect your customer traffic? Is your sales force pulling in sufficient sales to justify its cost? These considerations figure in to what your goals are and how you time the deadlines for achieving sales goals.

Study your customers. Identify the age, income level, education level and possible buying triggers of your clients. When you can clearly define your customer audience, you can develop marketing approaches that will be better able to reach those audiences. Can you increase market penetration among these customers? Are there other untapped demographics you can identify to build an additional customer base? Talk to your suppliers. They are involved in the industry and are often an excellent source of information and ideas. Also talk directly with your customers. Maintain a close enough relationship to day-to-day operations that you can interact with and ascertain what your customers value, because they tell you personally.

If you've done all your homework, then experience, judgment and imagination will help you focus on retaining existing customers; increasing the per customer sale; gaining new customers who add to your sales volume; and by identifying and gathering new customers that can help bridge gaps created by customer defections. Some customers are one-time buyers. Be prepared to constantly seek out new business that can help increase overall sales volume.

If you would like advice on sales trend evaluation, informal customer research, sales goal setting or sale force motivation, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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What Does It Take To Satisfy Customers?

As an entrepreneur, the answer to this question is your top priority. Today, customers have higher expectations than ever before and are less likely to tolerate poor service. It is not enough to meet customer's expectations, you must exceed them. Remember, service isn't just a policy or guidelines but a feeling that the customer responds to.

In order to exceed the customer's expectations, you must first know what they are. Basic service includes returning phone calls in a timely manner, making deliveries when scheduled and treating their problems as if they were your own-even if it costs you more money.

To go beyond the basics, however, use surveys to get constant feedback. Through surveys, you can learn the little things that mean a lot to your customer. Perhaps it's as simple as not giving enough condiments with lunch deliveries or a bigger problem to be addressed such as a rude employee.

Business owners need to take responsibility for the actions of their employees. Proper training on the importance of customer service is important. Employees should also be well-versed in proper phone etiquette. Go beyond your customer's expectations and you will create loyalty. Some key points to remember:

* Value. Give customers a little more value than they expected

* Information. Provide information about what your customer has purchased.

* Speed. Return all phone calls and emails in a timely manner. Always deliver on time.

* Personality. Promote a friendly image in your office. Ensure every customer is greeted when they walk in the door. Keep your office clean and inviting. Make sure employees are well groomed.

* Add on. Give customers a bonus like a coupon or a free gift.

* Convenience. Make it easy for customers to come to you. Analyze the inconveniences of your business: are there enough parking spaces? Could you offer delivery service? Should you stay open on weekends?

To learn more about achieving a professional home-based business, contact the SCORE Association. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Image Is (Almost) Everything

You may not always be able to judge a book by its cover, but identity materials can speak volumes about a business, and about you. Business cards, brochures, stationery, and other printed pieces can be permanent reminders that you're a qualified, dependable professional who can do the job for your customers.

Selecting and developing identity materials depends on the type of business and its target market. You'll need to do some research about your customers, where and how they get their information about comparable services, and tactics used by similar businesses. Then, decide how much you can afford. While you shouldn't scrimp on identity materials, spending extra money for elaborate pieces doesn't always guarantee results. Many commercial printers and copy centers offer designs that are both economical and effective. You may also be able to create some identity materials yourself using desktop publishing software, preprinted paper products, and high-quality home printers.

Here are some considerations for the most common types of identity materials:

Business cards. The most versatile tool in an entrepreneur's marketing arsenal, business cards may be handed to prospective clients, attached to mailings, posted on community bulletin boards, and converted into print advertisements. While creative designs and paper will help your cards stand out, restrict the content to the essentials: your name and title, your company name and logo (if any), address, phone numbers, e-mail, and Web site (if applicable). A brief, professional slogan or a few words describing your services may also be helpful.

Brochures. A simple, well-designed brochure is a convenient way to tell customers about what you do, your qualifications and resources, and-if appropriate-a price and delivery schedule. Keep the information brief and to the point. Brochures are intended to pique the customer's interest, not tell the whole story.

Stationery/Envelopes. This is an often-overlooked element of an entrepreneur's identity materials. Nearly every type of business needs stationery to communicate with customers, employees, suppliers, consultants, colleagues, and everybody else. You'll also need some kind of letterhead for your invoices, financial statements, and other administrative filings. As with business cards, your stationery should include the essential information about your company.

Web pages. If you plan to market your services on the Internet, lay out your electronic pages in much the same way as your printed materials. Organizing material in 8 1/2" x 11" format makes it easier for customers to download and print key data. And you'11 be certain that your company's essential information appears on every page.

Want to know more about creating the right image for your small business? Contact (SCORE). The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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My Web Site - What Do I Do First?

First, decide if you are going to develop your Web site on your own or find a web site developer. You may search the Web for possible Web site developers. Then, apply for a domain name - one service is Network Solutions (http://www.networksolutions.com/). Have three names prepared in case the name you want is already taken. Take time to choose your Web address - it will become your identifier. For search engine success, it is useful to have your product or service in your name.

Gather the material you want to place on your Web site. Decide on the arrangement of the information and the look of the Web site. Bright and flashy or conservative? It is a good idea to browse the Web for the styles you like the best. The purpose of your Web site is to present your business and the product or service that you are selling. Provide some useful information-give something to your audience and then gently lead your audience to what you are selling.

Design an easy-to-use Web site. If it is too confusing, the visitor will leave. Users will not wait long for your home page to load. Keep your message clear and direct. A visitor should immediately be presented with a description of your site, its purpose and its content. Keep the material on your site fresh. Update frequently so visitors will have a reason to return.

Once you have developed a great Web site, your next mission is to get traffic to your site. Get listed with all the major search engines. Many services such as SavvySubmit (http://submit.savvysearch.com/submit) do some of the work to ensure that your Web site will appear on many of the major search engines. The success of your site depends on the ability of customers seeking your products or services to find you web page in the vast universe of the Internet. Use traditional and Internet based press releases as well as newsletters, business cards and letterhead to spread the word about your new Web site. Form strategic mutual partnerships. You can promote a company's site on your site if they promote yours. A lot of Web traffic comes from other site referrals.

For more information about developing your company's Web site, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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The Internet Is An Information Tool For Business

You are a busy entrepreneur or you're a busy aspiring entrepreneur. In either case you want to gather information quickly, so you can move on to the business of planning your business success. Today, you don't have to necessarily go to the library or visit resource centers to gather information in person. You can log on to the Internet.

Before you spend a lot of time searching for business information, take a look at the list of small business Web sites described below. Begin by visiting general small business or business information areas to help you find what you need to know about business. You can also use a search engine to find the trade association that serves your industry. The resources listed below can be very helpful and are available 24 hours a day via the Internet.

Patent & Trademark - Patents for inventions are vital to your business success. You should consider registering a company trademark to protect that mark for your company. To find out more visit the U.S. Patent & Trademark Office at http://www.uspto.gov. Easy-to-access information is available on a topic by topic basis. Forms can be downloaded directly from the site, if you have Adobe Acrobat software.

Wage Reporting - If you are an employer, you are required to report employee wages and taxes to the Social Security Administration. For more information on accurate filing and year-end wage reporting, visit the Web site for the Social Security Administration at http://www.ssa.gov. Or call 1-800-772-1213 for a free copy of "The Employer's Guide," a pamphlet with information on timely and accurate W-2 Wage reports.

Tax Filing - Both personal and corporate taxes are collected by the federal government. Be sure you are in compliance with tax law. Consult with your accountant as appropriate. For quick, easy access to Tax Forms and Information, visit the Internal Revenue Service Web Site at http://www.irs.ustreas.gov. Extensive information and downloadable publications, tax forms and regulations are available.·

Small Business Information - The SBA provides publications, business tips, SBA-guaranteed loan information and abundant small business hot links on its Web site. Information about women's business ownership, minority business ownership, the Service Corps of Retired Executives and other resources are described on the site. The site is divided into easy to use sections for starting your business, financing your business, and expanding your business. Visit this Web site at http://www.sba.gov.

Small Business Counseling - The SCORE Association (Service Corps of Retired Executives) has a nationwide network of 12,400 volunteers in 389 chapters throughout the United States. These volunteers donate their time as business counselors. Visit the SCORE Web site at www.socre.org. Small business counseling via email, tips, success stories, and hot links to local SCORE chapter Web pages are on this site.

Go online for information gathering as one tool in your plan for success. Also feel free to call upon a SCORE counselor for a one-to-one business advising session to help you focus on key business issues and streamline the amount of time and effort dedicated to research. The SCORE Association was formed in 1964 as a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide.

For information about starting or operating a small business, contact SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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My Web Site - What Do I Do First?

First, decide if you are going to develop your Web site on your own or find a web site developer. You may search the Web for possible Web site developers. Then, apply for a domain name - one service is Network Solutions (http://www.networksolutions.com/). Have three names prepared in case the name you want

is already taken. Take time to choose your Web address - it will become your identifier. For search engine success, it is useful to have your product or service in your name.

Gather the material you want to place on your Web site. Decide on the arrangement of the information and the look of the Web site. Bright and flashy or conservative? It is a good idea to browse the Web for the styles you like the best. The purpose of your Web site is to present your business and the product or service that you are selling. Provide some useful information-give something to your audience and then gently lead your audience to what you are selling.

Design an easy-to-use Web site. If it is too confusing, the visitor will leave. Users will not wait long for your home page to load. Keep your message clear and direct. A visitor should immediately be presented with a description of your site, its purpose and its content. Keep the material on your site fresh. Update frequently so visitors will have a reason to return.

Once you have developed a great Web site, your next mission is to get traffic to your site. Get listed with all the major search engines. Many services such as SavvySubmit (http://submit.savvysearch.com/submit) do some of the work to ensure that your Web site will appear on many of the major search engines. The success of your site depends on the ability of customers seeking your products or services to find you web page in the vast universe of the Internet. Use traditional and Internet based press releases as well as newsletters, business cards and letterhead to spread the word about your new Web site. Form strategic mutual partnerships. You can promote a company's site on your site if they promote yours. A lot of Web traffic comes from other site referrals.

For more information about developing your company's Web site, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Hold Employee Meetings To Promote Communication

Good communication between management and employees is the hallmark of a well-run company. Poor communication between management and employees can be a source of concern and lost productivity. You may see each of your employees daily, but if you don't have regular, ongoing communication with employees as a group, those relationships will not live up to their potential. You want to make all employees feel that they have something important to offer the business. The feeling of team participation can be increased through employee meetings.

At employee meetings, you provide the big picture. Employees may deal with you daily regarding specific tasks. However, they may not be exposed to the larger goals for the company and progress toward those goals. An employee meeting provides a forum for sharing this information. Give employees an opportunity to ask questions or make suggestions. Gain employee buy-in by including employees as participants, not just as an employee meeting audience.

Encourage your employees to come up with new ways to operate or to improve current systems. Recognize and reward success publicly. Recognition in front of fellow employees at an all-employee meeting has value. Never underestimate the value of praise, thanks and public recognition. Even though employees do get paid for their labor, it's up to you to make sure they feel that their efforts are meaningful and appreciated. Take time to say thank you.

Upon occasion, you may wish to discuss or share news about challenges within the business. This open, honest discussion can help mobilize employees to take action. Be careful not to criticize anyone directly. You always want to end an employee meeting on a positive note, even if serious business issues were discussed during the meeting. You set the tone and course of the meeting from start to finish.

As the business owner, you should have definite policies about meetings. Meetings should always be on company time and an employee who comes in especially for an employee meeting should be paid for that time. A firm schedule should be established for employee meetings. Decide how often you want to conduct company wide meetings and prepare an advance schedule and agenda for those meetings.

If you would like to discuss employee meetings, employee communication or motivation, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Make Effective Decisions

Making decisions that affect your business is not an easy task. Business climates frequently change from one year to the next, even from season to season. You need to be able to predict with some certainty how a decision you make today will affect your business one two, or three years down the road. Good sources of information are the key to making good business decisions.

You must first determine the nature of the problem you are trying to solve. It may be a loss of sales, a drop in profits or an increase in the age of your accounts receivable. Look closely: what may seem to be the obvious problem may only be a symptom of the real problem. The actual problem may not be the age of your accounts receivable, but rather that you don't have enough time to adequately review your financial reports, so quick action can be taken before a cash crisis emerges. What are the causes of a problem? If sales are down, what are the reasons? Only by examining the root of the problem, can you start to figure out viable solutions.

What are some possible solutions to your problem? Write down your ideas for solutions and talk to others in your field about other possibilities. Maybe someone you know has overcome a similar problem. Good ideas, whether from brainstorming or other sources, should not be killed because you don't know if new ideas will succeed. If possible, test out some of your ideas on a small scale before deciding on the approach that will best resolve the problem. There is no magic cure to the myriad details and time constraints you face as an entrepreneur. However, you can take control of major issues and address the elements of your business that impact your immediate survival. Next, you can take the time to plan for a successful future.

In communities throughout America, entrepreneurs who once thought they had to go it alone obtained some expert advice. Would free and confidential business advice help you save time and improve your decision making process? If the answer is yes, consider the SCORE Association to be your personal business information, guidance and mentoring source.

The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Small Business Owners Need New Accounts

A business cannot survive and prosper without attracting new customers. Any business no matter how well-run-loses customers every year. Not only must these customers be replaced, but if the firm is to grow, additional new customers are essential. Poor service, unsatisfactory merchandise, price and relocation are all reasons why customers no longer frequent your business. Some of these factors you can control and some you can't. It is always in the best interest of your business to continuously plan on how to attract new customers.

Plan to attract new business before you find that your sale numbers have dropped. Here are some steps to take to build your business:

Determine the demographics and buying patterns of customers.

Find the age, income level and tastes of retail customers. Discover business trends, buying patterns and public contracts among your commercial accounts.

Determine how many accounts you want to add in the upcoming quarter.

Your starting point for customer additions is based upon the percent of customers you lose annually. After accounting for annual sales lost, add the percent of sales gain you hope to achieve in the year ahead. Budget your sales goals quarterly.

Identify prospects for the upcoming quarter. Methodically identify potential customers. Commercial customers can be easily identified by trade groups, through notices of public contracts and in local business journals that often list the top firms in a given industry. Retail customers are a bit more difficult to identify. However, you can access Census Bureau data on the Internet and select parameters for your city and state to narrow the customer focus for your market. Visit http://www.census.gov.

If you would like to discuss marketing, prospecting or customer retention, contact SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Set Goals For Key Employees

How do you know whether your key employees are really producing? In many small businesses, the owner makes subjective decisions about performance or judges employees only by how well they perform the duties included in their job descriptions. A better way to judge performance is to measure how well employees are meeting objectives that are helping to further the company.

Traditionally people have worked according to job descriptions that list the job activities performed. Consider this example. Your job description for a credit manager may simply say "supervises credit operations for the company." You might get better results from that employee if your set five or six goals for that person. One goal may be to increase credit sales sufficiently to support a 15 percent increase in overall sales within the next 12 months.

Your employees' objectives should be written down for use as a continuing reference document. Goals should be related to each other and supporting objectives should be noted. For instance, the goals might cover problem solving, innovation and development. The goals must be time oriented, with specific dates when projects are to be completed and goals to be met. The goals must be measurable. The method for measuring those goals must be clear both for the owners and employees. You want to set your employees up to succeed. Goals should be reasonable and achievable. Nothing discourages employees more than not being able to perform well in their jobs.

Employees should contribute input to the statement of their goals. If they have a role in establishing their own long-range objectives, they have more commitment to achieving those goals. Be sure that such a program of goals and objectives also includes rewards. Employees should be able to see how the company and the employee both benefit from the achievement of goals.

If you would like to discuss goal setting, business planning or employee motivation, contact SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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How To Find Promising Job Applicants

Deciding what kind of skills are needed to perform each job in your company is the key to locating promising job applicants. Only after you have defined what is important to a particular job, can you begin the hiring process. The candidates you draw for interviews will depend upon the description of the job and skills required for the job. Everything centers on how you describe the job to potential applicants.

Here are some steps to follow in finding promising job applicants.

Describe the job. Suppose you, as the busy business owner, decide to hire someone to relieve you of some of your duties. Start by looking at the many functions you perform and decide where your own attention is crucial and what tasks you can delegate. Know what your strengths and weaknesses are and try to hire someone who can provide a balance to your skills. Prepare a written job description, so you can refer to it frequently.

Decide what skills are necessary to accomplish the job. What is the lowest level of skill you can accept? In this case, let's assume you've decided to hire a secretary, but you quickly learn that skilled secretaries are both scarce and expensive. Perhaps you really need only someone to do some typing. Hiring a typist may be both easier and cheaper than hiring a secretary. Many high school students are qualified typists, and many seek part-time work.

When you publicize your job opening, spell out exactly what you want. Suppose you're looking for a sales clerk. What should the applicant be able to do? Tally sales receipts accurately? Keep a customer list? Promote products to your customers? The job of sales clerk means different things to different people, and unless you spell out what you expect the employee to do, you're going to be receiving applications from people who are both over- and under-qualified.

Locate promising applicants. There are many sources of promising applicants. Your state has an employment service; find out where it is and use it. Private employment agencies can be helpful; however, they will charge either the employer or the employee a fee for its services. If your business has a display window, you may want to place a "help wanted" sign there. Of course there's a disadvantage to that method; you sign will draw a lot of non-qualified applicants with whom you' 11 have to spend time you can afford.

Advertise for job applicants. Newspaper advertising is another common method. This draws a large number of written applicants that you can screen on your own schedule, and select only the more promising applicants for interviews. Local

schools should not be overlooked. Your high school may offer courses in business subjects and have students who either want to work part-time during the school year or full-time after graduation. If you have a nearby community college, this is another good source of applicants. Finally, there are personal sources: friends, neighbors, suppliers customers and present employees.

If you would like to discuss preparing job descriptions, interviewing job applicants or hiring new employees, contact SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Manage Your Time Effectively

One of the major stress factors in owning a small business is that there simply isn't enough time to accomplish all that needs to be done to keep your business running smoothly. As an entrepreneur, you are constantly faced with choices about how to spend your time. Your time is a valuable commodity and you can only make it go so far. Keep in mind that it's not just how much time you have, but what you do with it that counts. Time management really means managing you and your job responsibilities effectively.

Small business owners typically get bogged down for two reasons: poor planning and poor communication. Unless you have a written business plan guiding your business, each decision requires too much time and you spend more time fixing past mistakes than planning for the future. Create a business plan to outline the fundamental goals and objectives of your business. With a plan in place, you can concentrate on implementation rather than rethinking each decision one decision at a time.

Regarding communication, maintain an open-door policy for employees. Create an atmosphere that encourages employees to keep you informed about what is going on in your business. Employees are on the front lines and know your business almost as well as you do. They may know your customers better than you do. Keep the lines of communication open, so you can benefit from the knowledge and insights of employees.

To make better use of your time, log appointments and major deadlines in a monthly calendar. Write down what must be done and the due dates for projects at key progress intervals. There are many time management systems available. Everything from pocket calendars to various types of day timers to electronic schedulers can help you control your time commitments and project obligations.

Start each day with a planned schedule. Try to arrive at your office 15 minutes early. You create an expectation that you have 15 extra minutes each day simply to organize before you begin addressing the business of the day. Make a checklist of priority items and the amount of time you can dedicate to each.

Integrate your daily appointments into this checklist. If you find that you are most productive in the morning, perhaps you want to work at your desk until noon and save sales calls for the afternoon. Adjust your calendar to your own personal style for maximum effectiveness.

Make it your common practice to establish firm deadlines and meet them. You also set deadlines for employees. They will look to you as an example of how things are accomplished within the business. If you routinely meet deadlines, employees will be more likely to meet their deadlines as well.

If you would like to discuss business planning, time management or delegation, contact SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Develop Systems To Prevent Cash Shortages

As a small business owner, you need a system to generate sound financial information about your firm. A good system provides a full picture of the firm's financial strengths and weaknesses and provides information vital for making daily business decisions. A list of some of the key elements in such a system appear below:

Income and profit and loss statements show the company's sales, cost of goods sold and gross and net profit. Such statements should be analyzed on a monthly, quarterly and annual basis. These statements indicate your profitability and the amount of cash you have available to the business.

Operating cost estimates project where a firm will be spending its money. The projection can be compared against actual expenses shown in the income statement on a monthly basis. When expenses are viewed by category, you can compare your own operating expenses to those that are the standard for your industry.

Balance sheets show what a business owner owns and owes at any given time. It is a snapshot of the financial status of the business. The snapshot shows the liquidity of the business by depicting how much cash is on hand to meet debts and how much cash would remain if all current payables were met at that time.

Aging statements summarize the age and due dates for both accounts payable and receivable. This information lets the business owner know if he or she is up-to-date on meeting debt obligations for the business and if customers are meeting their debt obligations to you.

Inventory control statements allow you to monitor inventory levels against the consumer demand. You should be able to monitor how many times an item or the entire inventory turns over during the course of a year. This turn indicates how often you are re-ordering merchandise. If well designed, they can also help you spot shortages that may result from theft.

These statements all provide information about the financial status of your business. This information can be used to determine if you should be collecting account receivable faster; paying your own invoices sooner or increasing sales or sale price to improve profit margin. To pay bills and make a profit, a business must sell a sufficient volume of goods or services and receive payment. The best way to control cash is to establish a firm credit policy and make your customers aware of the credit policy.

Delinquent accounts must be pressed at once for payment and further credit may be suspended until payment is received. An important tool is the accounts receivable aging statement. This statement shows the amount of credit each customer owes your business, as well as any amounts past due and the amount of time an account has been overdue.

Plan and control your accounts payable. Instead of making all your payments on the same monthly date, gain the maximum benefit of credit by paying invoices when they come due. Do not pay invoices early, unless you can earn a discount from the vendor, who is your supplier. If cash is tight, the accounts payable statement can indicate which accounts need to be paid right away and which accounts can be paid when you have more cash on hand.

If you would like to discuss, financial statements, accounts payable or accounts receivable, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Delegation Delivers Results

You are an entrepreneur. You create the company vision, manage operations and handle details. Whether you are a solo entrepreneur or small business owner with a number of employees, plan to delegate. The solo entrepreneur may not have the

funds to hire a full time staffer. Consider a part-time employee, contract employee or intern to help with specific tasks. Free your time from mundane activities, so you can concentrate on delivering a quality product or service, as well as making

those all-important sales.

When you are running a business, you have to depend on other people to handle some of the tasks you don't have time to do yourself. Delegation is one of the toughest jobs to learn. Entrepreneurs are take charge individuals. Many an entrepreneur has said, "I can do that better myself." Beware of such words. If all you had to do was that one item, chances are you could do it better yourself. However, you have a long to do list already; some projects are best delegated and supervised. It takes discipline to let go of tasks both simple and complex. Consider delegation as part of your overall plan for the business, even the owner needs a break. You need to plan for contingencies, such as an illness or time to take a vacation.

Select the right people to undertake delegated duties. Evaluate interns, part-time employees and contractors carefully. Provide time for orientation and training. If you have a staff of employees, begin cross training so there are back-up systems

for your absence or the absence of key employees. From your employees, choose competent employees with an interest in new tasks. Delegation can be an opportunity to learn new skills and/or take on added responsibilities. Don't hand off tasks without discussion and training if needed.

Employees should be valued. Delegation should provide an opportunity for you to ease your workload and communicate to the employee that you are entrusting him or her with the tasks because of your confidence in the employee's abilities. Clearly define responsibilities and the authority that accompanies the task. Be sure to plan on recognizing and rewarding employees, who assume additional duties. If employees step up to the plate, you want to be sure and demonstrate appreciation for the extra effort.

The team of people to whom you delegate responsibility must be responsible for their own actions and results, as well as for those they may supervise. Request periodic written reports and staff meetings to provide a forum for comments on activities, accomplishments and challenges. Become the communicator and facilitator for the work of company. Bring the big picture into focus. When it makes sense, delegate. Free your time to be the president. Create an environment that allows for the company and its workload to grow, without overburdening you. As the owner, your vision and management ability are best served when details are managed, rather than when you complete tasks yourself.

If you would like to discuss workload, delegation and effective leadership, contact SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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Learn More About The Geography Of Your Customers

The more small business owners know about their customers, the more they can focus their marketing efforts on those customers and their needs. Business owners can conduct their own market research at minimal cost. Some of that research is just basic fact finding.

Some methods for identifying customers' locations appear below. Location is important. Customers may shop only within a 15 mile radius to their homes, maybe its a 5-mile radius. You need to know where your customers live and where they shop. You want to identify shopping patterns, buying patterns and similarities between your customers. The better your understanding of your customers the better able you will be to respond to their needs.

Internal records. Sales slips, delivery orders and charge slips all offer a simple method of identifying where customers live. On the various forms you have on-hand the addresses and phone numbers of customers will appear. You can plot the location of customers on a map and determine where you have the highest density of customers.

Coded coupons. Another internal source of market area information is the coded coupon. When customers redeem a coupon specially coded in a newspaper or via a direct mailing, you can determine which coupons are redeemed from what sources. In addition, you can determine who redeems coupons among your customer base. Coupons are easily tracked and can provide you with a reliable source of information about the location of customers.

Prize drawings. If you host a drawing for a free item in your shop, customers must complete an entry form. This entry form gives you valuable information about foot traffic in your store. Try to get every shopper to register for the drawing, so you can get as much information as possible about as many people as possible. This identifies customers who are in the store and adds more information to your demographic base on customers.

You want to focus on the customer and gather as much information about him or her as possible. The better you target your customer base, the better you will target your sales and marketing efforts. If you would like to discuss market research, merchandises or marketing, contact the SCORE. The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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 Before You Say No To The Sale

When can you be confident that your new business is "established?" Some entrepreneurs believe it's when they can say "no" to a prospective client or project. They may be too busy with other assignments to take on more work. Or, they've built a reputation in one discipline, and are reluctant to venture "outside the lines" for something else.

Is there a right time to refuse a business opportunity? That depends on your type of service or product, and the business cycles that influence your customers' needs. You may feel overwhelmed today, but find yourself idle in just two weeks.

And even if you have to turn down potential customers, you don't want to close the door on the possibility of working with them in the future.

So before you say "no," take a moment to consider a few key issues:

Is project time-sensitive? Given the demands of your schedule, you may be able to handle the job at a later time. See if the customer is willing to wait, or if there's some preliminary work that you can do without compromising your current schedule. You can build and maintain a comfortable backlog of work that meets everybody's needs.

Can I get assistance from someone else? Arrange and maintain an informal cadre of back-ups: people and businesses you can call on to handle some of your overflow. (They may very well be other new entrepreneurs in the same position you were in not too long ago.) This gives you the capability to outsource part of the project, though you should advise the customer of your plans. And if you can't handle the assignment at all, you'll be able to refer the customer to someone else capable of doing the job.

Are some parts of the project outside my scope? You may feel qualified to do only a portion of a project, while other aspects are better suited for someone else. This is where networking really comes in handy. It may be possible to team up

with other businesses that specialize in the products or services that you need to complete the assignment. Naturally, this approach requires planning, coordination, and an understanding of each other's capabilities and limitations. However, you may well create a regular exchange of work among the members of your network.

Whatever you decide to do, be honest with your customers. Explain why you can't take on the project, provide realistic assessments of the alternatives, and be proactive about finding solutions. If you do refer them to another source, make

sure that business is as qualified as you are. Your customers will appreciate your good advice, and be more likely to solicit your help again in the future. Need help making tough decisions that effect your business? Contact the counselors at your local chapter of (SCORE). You'll receive expert assistance with a broad range of business issues and considerations-all for no charge.

The Service Corps of Retired Executives (SCORE), in association with the Small Business Administration (SBA), is providing free business counseling for Kittitas County in a cooperative effort with The Ellensburg Chamber of Commerce and The Phoenix Group - Phone- 962-7244 for appointment or email questions to score@ellensburg.com or go to our web site at http://www.ellensburg.com/~score.

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How-To Create A Mission Statement

Mission statement. Every company needs one. Many companies, both new and existing, sometimes struggle to write a mission statement. A mission statement can be a very strong motivational statement for staff and employees and can also be a strong marketing and branding tool to customers. Some excellent examples of mission statements that hit the mark immediately are:

Disney – "To make people happy"
Would anybody argue that Disney accomplishes this? Do you think it sets the tone and environment for its employees? Do you think that customers agree? I think the answers to all these questions would be a resounding yes!

Boeing – "To push the leading edge of aviation, taking huge challenges doing what others cannot do"
If anyone has seen the documentary or read the story of the Boeing 747 Jumbo Jet, would they doubt this mission statement? Do you think that Boeing's employees or customers doubt this statement? I don't think so.

3M – "To solve unsolved problems innovatively"
How many of you use Post-It Notes? Do you know how they were invented? NASA was looking for a product that would stick to surfaces indefinitely and still be easy to peel off. One 3M engineer spent quite a bit of time getting 3M to market this product commercially. Do you think his motivation was partly driven by this mission statement?

A company's mission statement can be something that is totally ignored by both its employees and its customers, or it can be something that drives the organization, attracts customers, and brands its products.

Companies that have created dynamic, thought-provoking, on-the-mark mission statements got everyone involved in the process, from the lowest ranking employee to the highest ranking executive, while at the same time keeping in mind the needs of all their customers, even the least important. They brainstormed, reviewed and rewrote their mission statement until everyone was satisfied. The employees and management agreed that the mission statement correctly identified what they hoped to accomplish, and the customers agreed that the mission statement defined what they wanted and needed.

What Is A Mission Statement?
A mission statement is a written, easy-to-remember sentence, short list of bullet points, or paragraph illustrating a business' goals and purpose. It has one common function: to guide you and your employees in making critical decisions that effect the direction of your company.

A mission statement identifies your company to its customers, vendors, the media and others that will be using or requiring its services or products. It is about providing solutions and adding value to your customers and market.

Where Should You Keep It?
Certainly not buried in some remote document that you bring out at Christmas time or some other event. Keep your mission statement in front of you, your management team and employees, and your customers. Include your mission statement in the executive summary of your business plan. Place it in large bold print in the front of your employee manual. Include it in as many advertisements, promotional materials, and other public documents as possible. Never lose sight of why you started your business and never compromise your ethics and values.

Creating A Mission Statement
First of all, as we mentioned earlier, you should get everyone involved in a productive manner and do the following:

1. Pick One Central Theme. The theme should be easy to understand, non-controversial, and translate into behavior that can gain support. Take Disney, mentioned earlier, for example. They wanted people to have fun. They wanted their employees to have fun. They wanted people to be able to escape, for just a moment, the grind and stresses of their day-to-day environment.

So what is your theme? Does it deal with a product, service or both? Can it be easily understood and interpreted by both your employees and customers? In some cases, it may have to be mildly controversial to provoke thought and discussion.

2. Communicate With Action. Demonstrate your commitment and follow through with conviction. Participate in the committees and work groups and help them build the excitement and determination to succeed.

3. Focus On A Few Key Attributes Of Your Service Or Product. Take the example of Boeing, mentioned earlier. Do you want to push the leading edge of your technology? Do you want to accept challenges that others won't or can't? Do you want to solve problems that are difficult and challenging to solve? Does this key attribute bring value to your customers?

4. Don't Rush The Process. Brainstorming and creativity take time. Be sensitive to the process as well as the end result. Participants want to see results of feedback. You and your employee's time are too valuable to just go through an exercise in frustration. I have been part of organizations that just wanted a rubber stamp on the result and didn't give a hoot about the process. This is a very unique opportunity to build commitment, trust and morale in your organization. Don't blow it by trying to rush the process!

Key Points To Include
This might be your most difficult decision. If you're writing a one-sentence or one-paragraph mission statement, your job will more likely be more complicated, not less. A bulleted mission statement is easier, but may not accomplish what you want. Key statements that can be used to build a mission statement are:

  • Statement of Purpose.What inspirational purpose appeals to higher values in both your employees and customers?
     
  • Statement of Strategy. What is your business strategy, and how does it appeal to your employees and customers?
     
  • Statement of Value. Identify values that form a link to the organization's strategy that employees can be proud of.
     
  • Statement of Behavioral Standards. How does employee behavior relate to customer perception and value?
     
  • Statement of Character. What is the organizational culture?

Certainly it is impossible to include all of these in a short mission statement, such as Disney's, but the perception of their mission statement certainly encompasses the ideas. If you do a bulleted mission statement, the above statements are easier to address individually. It's up to you!

 

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