Self Employment Options

SEAP

If you are currently receiving unemployment benefits but are interested in starting a business, the Self Employment Assistance Program (SEAP) may be a good program for you. After you have gathered the details on the program, you will see there is a requirement to attend approved business training. Susan Hoosier, from our WSU SBDC office in Longview, is offering a NxLevel Entrepreneur Certification Program that has been approved by the state for SEAP participants.

The program is scheduled for January 26, 2010 and meets weekly for 12 weeks from 3:30 p.m. to 6:30 p.m. For details on program cost and location, contact Lynell Amundson at Lower Columbia College, 360-442-2601.



Self-Employment is a Life-Changing Decision

You are at a crossroads. You are not employed but you want to work. Do you look for a job or is now the time to start your own business? Perhaps self-employment is an intriguing thought but can you be successful as an entrepreneur? Have you identified a business opportunity worth the risk?

The first step in evaluating self-employment as an option is to analyze your potential. Successful entrepreneurs are often characterized as people who are comfortable with risk, are motivated by a long-term vision or goal, and take initiative in decision-making and problem- solving. Other traits include patience, creativity, perseverance, self-discipline, and a strong work ethic. To assess your potential, think back to times when you have demonstrated these traits. For example, have you held leadership roles in job or volunteer efforts to raise funds? Were you a child who enjoyed activities to earn money?

If you lack all of these characteristics, you probably will not be happy in your own business. However, if you lack only a few of them, there are some things you can do. For example, you can obtain training in areas such as creative thinking and leadership or you can team up with others who complement your personality.

The next question to ask yourself is why you want to start a business. Successful business owners are usually high achievers who desire to excel at what they do. They enjoy business as a means of self-expression as well as a way to gain financial security. Self-employment will be less rewarding if the motivation is because you cannot find a job or you have difficulty working for others. Business ownership is much more challenging than holding a job.

Obviously, business success is not entirely dependent on your personal characteristics. Owning and managing a business is a large commitment which is often a lifestyle as well as a career choice. Therefore, spend some time evaluating your personal, financial, and professional goals. Make a thorough analysis of your strengths, weaknesses, and the resources you can contribute to a business. Scrutinize the business opportunity and carefully assess the risks. An acceptable level of risk can be achieved if you have: 1) a good understanding of your industry and your market, 2) the skills and knowledge necessary to deliver a product or service people want, 3) determined ways to overcome weaknesses or gaps in knowledge or skill, 4) committed the required amount of capital and, most importantly, 5) a genuine preference for the work you do.

If self-employment still sounds like an option, find a format for a business plan and begin organizing and detailing your thoughts. (Formats are available through SCORE, Fort Vancouver Regional Library, local bookstores, or the Washington State University Small Business Development Center.) The business plan will help you focus on one thing at a time. Regardless what you determine to be a great business opportunity, you need to know about the specifics of the industry it represents. If you do not have enough experience, seek a job in a business in the same or similar industry and learn from it.

Underlying the risk of business failure is the risk of losing your capital and collateral. Therefore, use what you know about the business to analyze its ability to meet your financial goals. It will take time for a business to generate a profit and return your investment. Your earlier assessment should indicate you have cash and other assets to finance the business during this initial growth stage. This is a good time to establish some short-term, as well as long-term, financial goals and a means for measuring them periodically. You can compare your projections with alternative investment opportunities to determine which is the best route for you.

Self-employment is a big decision. If the timing is right and you are confident of success, go for it! If you are not quite ready but are still intrigued by the idea, investigate some part-time business opportunities. They are a great way to experience self-employment. Whatever you decide, make the most of your unique characteristics and qualities and enjoy your work!

Taxes

Tax Planning

As the year draws to a close, it is a good time to meet with your Certified Public Accountant to make decisions that affect your annual tax obligations. It is also a good time to plan for the new year!

The IRS website has a free Tax Calendar for Small Business & Self-Employed that alerts businesses to important tax deadlines but is also chock-full of interesting tips, information, and resources.

Order yours today!

Raising Capital

Southwest Washington has an exciting opportunity to be part of the Oregon Entrepreneurial Network!

The first SW Washington PubTalk was hosted by Landerholm, Memovich, Lansverk & Whitesides, P.S. on December 2, 2009. The focus was "Technology Start-up: What it takes and lessons learned." The PubTalk format provides an opportunity for entrepreneurs to learn about launching a company and have access to potential investors.

The room at Gustav's Pub and Grill in east Vancouver was packed and there was a lot of positive energy. Representatives from business support services, investors, and entrepreneurs were in attendance.

The event series is part of an effort by the Southwest Washington Workforce Development Council, CREDC, OEN, and others to revitalize the economy in SW Washington. The PubTalk series will continue on February 17, 2010 and will include an opportunity for entrepreneurs to pitch their ideas.

Stay tuned for more on this topic!

Economy

How much is your local store worth?

I was at a bookstore this weekend determined to buy a specific book. I had already gone online to check the price and whether shipping was free. The bookstore had the book I wanted and, after reviewing it, I decided to purchase it.

Now I had to make a decision. Buy the book at the store or order online. The bookstore price was $5 more than the online, free shipping price. What did that extra $5 buy? Convenience? Personal service? Atmosphere? The ability to preview a book? When I really thought about it, it took about 5 minutes to figure out that it was worth more than $5 to support my local bookstore.

When faced with a similar decision, take a moment and ask yourself what it is worth to you.

Buy local!

Business Success

Don't miss an opportunity for a full day of good business advice presented by the SBDC in Olympia and other sponsors!

The event, Small Business Conference--South Sound Success, is planned for Wednesday, October 28, 2009 from 8:00 a.m. to 4:30 p.m. at South Puget Sound Community College, Hawks Prairie Campus: 1401 Marvin Road NE, Lacey, WA. Cost is $55. Click here to register.

If you are a business owner, manager, or entrepreneur in any stage of development, you will get something out of this program.

For more information: Call Tiffany Scroggs, 360-754-6320 or e-mail tscroggs@thurstonedc.com.

Strategic Planning

Buying Commercial Property

On Thursday morning, Oct. 22nd, Lori Milton, Evergreen Community Development, will be one of four facilitators at Clark College presenting a session of the Commercial Property 101 Series.

Lori sent this note: "The Commercial Property 101 Ownership Series which began Thursday, September 24 at Clark College , Vancouver, WA, continues Thursday, October 22. If you would like to own your Commercial Property vs leasing, 2009 is the year to lay the groundwork. Find out how much wealth you are building for your landlord by leasing, what the real story is on finding a lender, and how the SBA has ramped up the 504 program to help smaller companies."

Business Planning

The Columbia River Economic Development Council and other sponsors are hosting a conference to assist businesses with planning. Check it out!

Action Plans for Pacific Northwest Companies

Special Event Sponsor: iQ Credit Union
Speaker Sponsors: RSV Building Solutions, Vistage
Community Partners: Greater Vancouver Chamber of Commerce

Event Details
Location: Hilton Vancouver Convention Center
Date: Monday, October 12, 2009
Time: 7:30 a.m. - 10:30 a.m.
Registration: $50 individual, $450 table of 10
Farm-to-Table Breakfast Included

Go to the Columbia River Economic Development Center's website for more details.

Financial Management - Taxes

I am continually impressed with the Internal Revenue Services' efforts to provide timely, accurate tax information to business owners. The IRS has an e-Newsletter called E-News for Small Business that gives information on training opportunities, links to informative sites, explanations and tips, and the latest on changes in the tax law. I highly recommend you check it out!

Here's an example quoted right out of today's newsletter:
"IRS Announces:
New Materials Available to Promote Awareness of Recovery Act Tax Benefits
As part of a larger effort to increase the awareness and use of tax benefits available through the American Recovery and Reinvestment Act (Recovery Act), the Internal Revenue Service has announced the availability of a vast array of products that help explain several tax benefits currently available to American families. With time running out to qualify for some of the recovery benefits, the IRS has unveiled new YouTube videos, radio public service announcements (PSAs) and multi-lingual informational flyers that provide basic information for taxpayers. The items are available on IRS.gov for partner groups, the media, Web sites and other organizations whose audience could benefit from the new tax changes.

These products are in addition to earlier IRS efforts on YouTube and iTunes to increase public awareness about the tax credits. The IRS.gov official Web site also contains links and complete information about ARRA. The PSAs are in English and Spanish in either 30-second or 60-second formats. The flyers and posters are in English, Spanish, Chinese, Korean, Russian and Vietnamese."

Legal

If you are looking guidance on Washington laws relating to consumers and businesses, the Washington Attorney General website has a lot of good information. The AG's role is to safeguard consumers from fraud and unfair business practices. The section on "Safeguarding Consumers; Consumer Issues A-Z" is useful for businesses and individuals alike. Just one way to get a quick answer on a legal topic!

Disaster Planning

The Office of Minority and Women Business Enterprises is hosting a free webinar called "A Roadmap to Business Resiliency" on Wednesday, September 23, 2009 from 1:00 p.m. to 2:30 p.m.

Given the floods and snowstorms experienced by SW Washington in the past couple of years, we are reminded that Mother Nature is a force to be reckoned with. However, the webinar also covers other unexpected events like the economic downturn that has hurt many businesses in a variety of ways.

The webinar is designed to help you improve your ability to cope with the unexpected and become more resilient. Register by clicking on the link.

Human Resource Management

I attended a Clark County Chamber of Commerce event this morning and had a rare opportunity to hear from six insurance professionals about health care for small businesses. I came away with many thoughts about health care and reform but here are some to pass on to you:

* Group plans are available to business owners with an average of at least two "permanent" employees who are employed at the beginning of the health benefit year.
* Business owners who want to provide health plans have many choices--probably too many to sort out cost-effectively alone. Take advantage of expert insurance brokers who can help you meet your needs.
* One of the best ways to keep health care costs down is individual accountability. Help employees educate themselves about best health care practices and encourage them to be accountable for their behavior. This includes letting them know they can ask about health care costs and choose cost-effective treatments.
* Employers can choose from two funding options to help employees pay for and manage their health care expenses: a Health Savings Account (HSA) or Health Reimbursement Account (HRA). Both of which shift some of the employer's cost burden.

When you want to attract and retain the best employees, benefits is a big topic of discussion. If you shop around and know the options, you may be able to offer more than you think.

Human Resource Management

On October 8, 2009, Landerholm, Memovich, Lansverk, & Whitesides, P.S. is offering a seminar from 7:30-9:30 a.m. covering an Update on Employment Law and 10 Most Valuable Habits for Supervising Effectively and Managing Legal Risk. There is a small fee. If interested, go to their website for details.

Marketing

The Downtown Vancouver Association is sponsoring a motivational speaking event called "Give Em' the Pickle!" on Thursday, September 10 at 7:30 a.m. at the Hilton. Bob Farrell of Farrell’s Ice Cream Parlor talks about how to provide high quality customer service. Thanks to the DVA, everyone is invited but you must contact the Downtown Vancouver Association to sign up.

Intellectual Property

The August 31 edition of the World Intellectual Property Organization (WIPO)
newsletter has some interesting content about protecting intellectual property outside the United States. Of special interest is a new nationally accredited IP training package and a link to a site discussing how to protect trade secrets.

Small Business Success

There is a new report online called Small Business Success Index (SBSI) which is a research study of small U.S. businesses. The SBSI is commissioned by Network Solutions and the University of Maryland’s Smith School of Business and was designed to measure a business owner's asssessment of success. To see the full report and other good information, go to http://growsmartbusiness.com.

Marketing

Is Your Business Customer-Driven?

At the core of every successful business is a clear focus on the customer. Focusing on the customer does more than drive a business’s marketing strategy-- it lays the foundation for the whole business plan. There are several things you must do to create a customer-driven business: 1) understand your customer 2) deliver on your promise; 3) and commit to continuously meeting customer needs.

Understand your customer

Businesses fail for many different reasons. However, failing to understand and target customers is high on the list. Business owners often describe their customers in broad terms--anyone in Vancouver, anyone who drives a car, anyone who breathes! These definitions may define some aspect of your customer but real customers have very discrete attributes. Think about what your customers have in common. Do they share demographic (age, gender, income, location) characteristics? What about their lifestyles and how they make decisions? Once you identify a “profile” of your customer, you need to think like that customer. This is important because customer satisfaction is defined by whatever your customers say it is. That means you need to know what they are thinking and to do that you need to ask and listen. Ask them why they buy from you and what is important to them.

Deliver on your promise

Once you understand what satisfies your customer, it is up to you to deliver it to them. The first step is to create quality standards for products and services. Customers expect you to have goods and services that meet their needs. However, they want other things, too, like good customer service, convenience, and value. How you deliver products and services positions your business in the customers’ minds. You can influence how your business stacks up by giving customers something they might not expect. Examples are: deep or broad selection; friendly people; return policies; buying incentives; bargains; etc. Customers have many choices as to where to spend their money. What do you want your customer to remember about you?

Commit to continuously meeting customer needs

If you keep your customers happy, they are likely to continue trading with you. However, you have to stay committed to a strategy that continuously meets customers’ needs. You also must communicate that strategy to employees. Without their commitment and desire to succeed, the business will fail. Create an organizational culture where 1) commitment to customer satisfaction is key; 2) standards of quality for products and services are clear; 3) employees are accountable, empowered, and rewarded; and 4) feedback from customers and employees is acknowledged and used to continuously improve the business. If you formalize the process of gathering feedback, you can regularly evaluate how well you are doing and make adjustments in the business that keep you clearly focused on the customer. Successful businesses are built on customer satisfaction!

Thriving in SW Washington

One of the things that gets a business into trouble is straying from simple business principles. At the heart of every business are three basic concepts: 1) market driven trade, 2) profitability, 3) cash management.
1. A market driven business always adjusts to what customers need and it knows how to meet their needs. It also recognizes that the market is dynamic and it is possible that customers don't recognize they have a need. This knowledge inspires innovation.
2. To survive, a business must also generate more revenue than expense. Profits are the source of debt repayment, reinvestment, and distribution to owners. An important tool for assuring profitability is break-even analysis.
3. Profits are not the same as cash. A profitable business can fail if cash is not managed well. This is due to the timing of cash in and out of the business. A strong business manages its cash conversion cycle to assure cash is available when needed. The tool to use to manage cash is a cash budget.
Remember to use your informal management team to help you with this concepts, this includes your CPA, industry mentors, SCORE, and the SBDC.



www.wsbdc.org