Posted by Kaitlin King on Tue, Sep 07, 2010 @ 10:55 AM
The New York Times features Tolosa Press
This past spring, The New York Times launched How I Saved My Company to recognize small businesses that have survived near-death crises. Last week local community newspaper Tolosa Press was featured, and their story describing the challenges they faced and the steps they took to recover is in the spotlight! Click here to see the video.
Just how important is their survival to our economy? A 2009 study* found that small businesses:
• Represent 99.7% of all employer firms
• Employ just over half of all private sector employees
• Pay 44% of total U.S. private payroll
• Have generated 64% of net new jobs over the past 15 years
• Create more than half of the nonfarm private gross domestic product (GDP)
• Hire 40% of high tech workers (such as scientists, engineers, and computer programmers)
• Are 52% home-based and 2% franchises
• Produce 13 times more patents per employee than large patenting firms; these patents are twice as likely as large firm patents to be among the one percent most cited
If small businesses like the Tolosa Press are not sustainable, we are in for an economic shock greater than our current struggles. There are many ways to improve, adjust and streamline an organization, but sometimes the issues go unidentified until it becomes too late. Visit The New York Times: How I Saved My Company to see other success stories, and learn how similar small businesses overcame dire circumstances.
*Source: U.S. Dept. of Commerce, Bureau of the Census and International Trade Admin.; Advocacy-funded research by Kathryn Kobe, 2007 (www.sba.gov/advo/research/rs299tot.pdf) and CHI Research, 2003 (www.sba.gov/advo/research/rs225tot.pdf); U.S. Dept. of Labor, Bureau of Labor Statistics.
Posted by Eric Hubbs on Thu, Jun 03, 2010 @ 01:54 PM
By Eric Hubbs
How does the saying go, "Don't count your chickens before they've hatched?" This seems to be the theme of our current economy. Word on the street is it's getting better and that there is a visible growth trend; however, it's crucial for business owners to understand what is generating the momentum and to remain cautious and calculated in our financial decisions - as difficult as it may be.
Beacon Economics presented their 2010 San Luis Obispo County Economic Outlook at the Paso Robles Event Center yesterday. Principal Christopher Thornberg and Director of Regional Research Brad Kemp spoke to a group of Central Coast professionals and delivered their economic forecast. While optimistic about the trends and growth, they remained realistic that we are not out of the woods yet. The primary sources of the spending increase are not sustainable. The equity market is up - good news - but based on the facts, the P/E ratio is overvalued, and it is evident that the market is not consistent. Even with the impact of the government stimulus, of which less than half has been spent, it's just a cushion for the moment, not a solution. And it's not an infinite resource. If we do not make educated decisions right now, we may find ourselves backpedaling.
They cited serious structural problems, a politically motivated band-aid covering the severe financial wound. Rob Garcia of Rob Garcia Wealth Management compares it to a poorly run business thriving in a good economy - the problems don't surface until bad times, and then it becomes that much more difficult to save the struggling business. He said until structural adjustments are created and implemented to improve the business operations, "it's like kicking the can down the street."
That's not to say there is no hope, because the good news is - there is! There is opportunity, and it takes creative actions to recognize and capitalize on them. Although numbers indicate San Luis Obispo County has experienced an extended recession, greater than surrounding counties, they also indicate we have faster recovering markets within arm's reach. Businesses within San Luis Obispo County can target these outer local markets and tap into their potential. Utilizing powerful resources to gain real knowledge and understand the present trends is vital, and can have a tremendous impact on the success of your business.
To help you make more educated decisions, view or download the 2010 San Luis Obispo County Economic Outlook presentation by Beacon Economics at http://www.beaconecon.com/.
We want to hear from you. Please share your thoughts, reactions, and creative solutions by commenting below.
Posted by Eric Hubbs on Tue, Dec 15, 2009 @ 12:12 PM
By Michael Gunther, President and Founder, Collaboration LLC
My friend Rob Garcia, a financial planner, suggested to me that as we approach the end of the year, many business owners might appreciate an article on how to perform a Stress Test on their business to determine if they are prepared to excel in 2010.
The more I thought about it, the more I realized Rob's idea had merit. People often have Stress Tests performed to determine their health status; good financial planners perform annual Stress Tests on their clients' investment portfolios; and even Bankers have endured Stress Tests this last year to determine their viability in continuing operations. Why wouldn't a business owner want to better understand their business' health as well?
What is a Business Stress Test, why and when should you perform one? A Business Stress Test is an assessment or evaluation of your business that helps determine if you are prepared to succeed and thrive. As part of your annual planning process, it provides you insight to even the most challenging situations, allowing you to project both worst- and best-case scenarios. As you wrap up your year and formulate plans for 2010, now is the ideal time to perform this straightforward (yet telling) analysis.
To conduct a Stress Test on your business, ask yourself these key questions about the coming year:
- If our sales decline by 10%, 20%, or more, what will we do to be profitable?
- If we lose our top three clients, what plan do we have in place to generate new key clients?
- If our ability to obtain additional credit remains bleak, how will we finance our business?
- If we lose our top two employees, how will we manage their roles and find their replacements?
- If new competitors enter the marketplace, how will we respond?
- If our competitors lower their prices in order to gain market share, how will that impact our sales and revenue?
- If interest rates rise, how will we handle the increased costs on our loans and credit cards?
- If I take a vacation, how will our business continue generating revenue and operating when I am not present?
- If unemployment continues an uphill climb and consumer spending continues to decline, how will that impact our business?
Next, ask yourself the same questions in regards to positive business growth, e.g.:
- If our sales grow by 10%, 20%, or more, are we prepared to handle that growth?
- If we find three more potential top clients, how will we entice them to purchase from our firm?
- Etc.
These "what if" questions are not intended to induce anxiety, but rather to guide you as you assess your company's landscape. Predicting conclusions to these scenarios will help you prepare to successfully build your business even if these situations arise, helping you be proactive rather than reactive in your business. By being proactive you will be able to respond promptly, making educated decisions because you have already evaluated your options.
The Bottom Line
Thorough planning and preparation are critical components to building a sustainable and profitable business. By taking a half day to prepare your 2010 Business Stress Test, you will be developing a key component of your overall action plan, preparing your business to thrive in the coming year.
Is there a topic that you would like Michael to discuss? If so, email him at mgunther@collaboration-llc.com or call (805) 541-9040 to let him know.
Michael Gunther is Founder and President of Collaboration LLC, a team of highly skilled business professionals who are dedicated to assisting proactive business owners to build profitable, sustainable businesses through results-oriented education, coaching, and consulting services. Learn more at www.collaboration-llc.com.
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Posted by Laura Armstrong on Fri, Oct 02, 2009 @ 05:17 PM
By Michael Gunther, Founder and President of Collaboration Business Growth Specialists
If you are in business today, you can count yourself a success; many local and national companies have had to close their doors. In the past 12 months, you've been faced with issues that most of us have never been faced with before, from shrinking markets to severe credit requirements to sharp revenue declines to employee fraud. Whether you resized your team, redesigned your business model, or returned to the very basics of building your business, cong
ratulations, you've survived.
Now is the time to figure out how your business can thrive in the coming 12 months, while overcoming the few peaks and valleys we will still face in the marketplace. Here's how you can start:
First, take a look back over the last 12 months and analyze what you've done right and how you can improve. Ask yourself and your employees the following questions:
What changes have you made that worked?
What changes do you wish you had made?
What strategies did you employ that allowed you to survive the year?
Next, begin to look forward and establish at least three strategies to implement in your business this next year. I recommend looking at these three critical areas of your business, at a minimum:
BUSINESS DEVELOPMENT
If there is one thing businesses learned this last year it's that we have to earn our customers' business again. This means that creating solid business development processes is imperative to sustaining a healthy business. Here are a few questions to ask yourself:
Are there new marketing strategies that you can implement?
Do you need to adjust your product or service mix?
Is there a product or service that will be in high demand?
Do you have a solid sales infrastructure to support your financial goals?
FINANCIALS
Even though you've probably been trimming costs over the last 12 months, I suggest that you reevaluate all of your expenses again and create a realistic 12-month financial forecast. I have seen some businesses create a best case and worst case scenario with their budgets and they manage their expenses at worst case and their sales at best case. One tip for trimming expenses is to meet with your vendors and renegotiate your pricing or terms.
LEADERSHIP
Now is the opportunity for you to step up and be a strong business leader with an attitude of 'thriving' rather than 'surviving.' Challenge your team and yourself to be innovative in both growing and running your business. Your attitude will shape the attitude of your team and in turn will shape your business' future. Remember: attitude impacts thoughts, thoughts impact behaviors. Keep your attitude in check.
THE BOTTOM LINE
Moving past survive into thrive mode will require you to step back and work 'on' your business and not just 'in' your business. Even if you identify just three new strategies to begin implementing, you will be ahead of the game.
Michael Gunther is Founder and President of Collaboration LLC, a team of highly skilled business professionals who are dedicated to assisting proactive business owners to build profitable, sustainable businesses through results-oriented education, coaching, and consulting services. Learn more at www.collaboration-llc.com
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