How to Obtain Business Funding During Pressing Economic Times

By Yomin Postelnik
President – IRPW

One of the fallouts of the real estate bust is that fewer banks are providing business loans and those who are have tightened their guidelines.  Small business financing, especially start-up funding is harder to obtain than it has been in years, and that’s even with numerous SBA programs available.  Banks simply don’t want to take more risk, even the minimal amount involved in an SBA loan.

As you start your search for funding, you will find exceptions to the rule.  Several banks did not invest a large amount in mortgage financing and still have funds to lend qualified businesses.  But these banks did not avoid one risky scene only to enter another.  They will seek well prepared business plans that outline a detailed strategy, proving that your business is worth investing in.     

Banks have been hit and have learned their lessons.  But they have also made money investing in small businesses and aside from that, bankers do like to see their clients grow.  Ask any banker and they’ll tell you that one of the favorite parts of their jobs is getting funding to qualified business owners.  But guidelines have tightened and banks are not always the best, or the only place to look for a loan.

For banks to realistically consider your funding proposal, it is very important that you present your plan as if they were a prospective business partner (and in many ways they are).  Projected financials should be detailed and realistic rationale must be presented for projected income and sales figures.  A marketing plan is crucial.  So is past experience, but less so.  The business plan should be detailed and crisp in format and answer all questions that a potential partner or investor would seek to ask.

Once you have a realistic plan in place, you may not be limited to seeking bank funding.  Numerous private investors exist and they will need a business plan as well.  www.BusinessGrowthTrends.com lists a service that seeks to connect loan applicants with lenders and private investors.

In between the bank and the private investor are more aggressive lenders such as UPS’ financial loan division, a service they provide to corporations, and hedge funds.  There are also equity investors available such as angel groups and funds who usually present at small business associations such as the one being arranged by the Association of Entrepreneurs, which is currently screening a number of angel funds and will ask several reputable ones to host a business roundtable in the coming months.  Several venture capital associations also host similar forums and the Association directs members to these discussions and events.

All of these methods will help you find funding for your business.  Readers are also able to email me for advice on their business proposal or for business plan assistance. 

For more information please call (954) 946-4442 or email editor@businessgrowthtrends.com.

PS For Canadian readers, what was written of the SBA is true of Canada’s BDC (Business Development bank of Canada).

Yomin Postelnik is the President of IRPW, a company that offers business plans, funding advice and facilitation, SBA loan applications, SWOT analyses, bold and effective marketing strategies, general business development and grant writing and research for non-profits and certain qualified businesses.  Call today for an initial consultation – (954) 946-4442 or email Director@InsidersReview.org - www.insidersreview.org.

Small Business Owners Need to Grow Their Assets – So Start Investing and Stop Spending

By Yomin Postelnik
President – IRPW

Every week we discuss a variety of marketing solutions, business development techniques and acquisition of investor capital all in an effort to help small businesses grow.  But all of the time, effort and energy spent on growing your business needs to pay off.  For this reason we are devoting this column to providing you with some practical wealth building suggestions that pay off. 

1)       Invest your savings – Actively resolve to set aside a certain amount of your income toward your long term investments.  Make sure this amount is consistently set aside month after month.  Take this money out of your earnings first.  This concept is called paying yourself first and it’s absolutely crucial to your long term financial wellbeing.   

2)       Look for vehicles in which to grow your savings – Placing money in a savings account every month may seem to be a good plan.  It’s not.  While saving up monthly in a savings account beats making a charitable donation to your high end electronics store, car (more accurately car and accessories dealer) and other stuff that eats up savings, you’re still not realizing even most of your potential.  Many banks and firms offer variable annuities and guarantee not only the principal, but also at least a minimal return, letting you invest in the stock market without the risks.  These annuities often yield over 10% or more annually when invested over a period of long time. 

The difference between investing in these or in a savings account.  If you invest $100 a month averaging 10%, you’ll accumulate about $188,000 in just 20 years.  By contrast, a 2.5% savings account, a higher rate than most offer, will gross you just $50,000 and that’s before taxes, which are differed in the case of an annuity (meaning that you pay them at the end, allowing your investment to accumulate essentially tax free in the meantime).  Just make sure that your principal is always guaranteed, as well as a minimal step-up and speak with a reputable financial advisor before engaging in this well worthwhile (when done right) investment.  

3)       Stop spending and start saving – The difference between buying a new car every few years and keeping an old one, buying cheaper models and letting them last longer and eating at home/packing lunches vs. donating charitably to your favorite for profit restaurant is that by choosing the more responsible options you will add tens of thousands to your savings/investing goals every year.  This should enable you to actually retire a millionaire.  It won’t even take much work, just careful life choices.  

4)       Be responsible – Carry insurance in amounts that are needed.  Make sure your assets are protected in retirement accounts (another benefit that annuities offer) and stay out of trouble.  The straight path pays off.  

5)       In the end, support your family and worthy projects – Money isn’t an end unto itself.  What I’m advising is that business owners stop funding sellers of overpriced merchandise or services on a regular basis, donating their earnings to such noble institutions as casinos, despite the admittedly fine work that poker tables do on behalf of all of humanity and instead start saving for their families, their own retirement, their community and support institutions or projects of real value instead of blowing money away.     

Now is the Time to Grow Your Corporation

By Yomin Postelnik
President - IRPW

    The South Florida business market is very competitive.  If your business doesn’t stand out then acquiring clients is no easy feat.  Developing an effective and unique array of services as well as a bold and unique marketing plan should be the focus of every business owner.

    If your company hasn’t undergone a SWOT analysis and if you haven’t sat down with a marketing consultant, it’s essential to do so.  The South Florida market is a large one to capture, but by the same token, your competition is extensive as well.  Separating yourself from the others is key to gaining market share in these competitive times.

    Doing things right is essential.  Every dollar spent on ineffective advertising is a waste.  More importantly, every dollar not spent on effective advertising hampers your business and leads to stagnation.  Your company needs to get out there effectively, aggressively and properly.

    There are many new venues of advertising as well as a wide array of tried and proven methods.  The future of your company demands an effective and comprehensive plan that integrates integral parts of both these approaches.

    In fact, new methods of advertising are designed almost every month.  Some are unique, dazzling and bold but may be entirely inappropriate to your client base.  Others are just what your company needs and will help you tremendously.  Market analysis and getting the advice of others are key to helping determine which is which.  

    Most important, don’t procrastinate.  The world isn’t waiting to hear about your business, no matter how great and unique it might be.  “Out of sight, out of mind” is very true in the business world.  To grow your business effectively, you need to enhance your strategy today.

    Let us help you.  We have experience and get results.

Yomin Postelnik is the President of IRPW, a company that offers business plans, funding advice and facilitation, SBA loan applications, SWOT analyses, bold and effective marketing strategies, general business development and grant writing and research for non-profits and certain qualified businesses.  Call today for an initial consultation – (954) 946-4442 or email Director@InsidersReview.org - www.insidersreview.org. 

The Association of Entrepreneurs – Bringing Corporate America’s Know How to Local Businesses

By Yomin Postelnik
President – IRPW

    Small businesses are the backbone of America’s economy.  This is especially true in South Florida, which according to last year’s bizjournals.com study, is one of the top five small business markets in the nation.

    That said, small businesses are also hardest hit during a recession or a downturn.  They are also least able to survive tough times without a plan, cash reserves, or help and guidance that produce results.  This is where the Association of Entrepreneurs, a new organization that offers small business owners not only a chance to network in and amongst themselves, but also provides valuable educational seminars and training, comes in, giving business owners the tools they need to succeed.    

     Marc Gilenson, founding President of the Association, is author of  “The Entrepreneurial Way, Strategies and Tactics for Entrepreneurs.”   Gilenson is also Managing Partner of The Sales & Management Group, a consulting firm that has implemented sales, marketing and organizational strategies for some of America’s largest companies as well as hundreds of startup companies.  His passion has always been to assist small businesses.  This has led him to launch the Association, a non-profit organization designed to give local entrepreneurs the tools to success.

     Gilenson doesn’t just teach entrepreneurs how to grow their businesses.  He shows them techniques and tools that his company, Sales and Marketing Group Inc., has used to train senior executives of Fortune 500 companies for the past 25 years. 

    Members learn how to think like large corporations and run their businesses accordingly.  They receive ongoing guidance and continuous review of every aspect of their business. 

    “The Association provides small businesses with more than networking” says Yomin Postelnik of BusinessGrowthTrends.com, a board member of the Association and expert in business funding.  “Small business owners need a place to network that allows them to meet without salespeople.  More importantly, entrepreneurs need to be educated on a wide range of business topics.  They get this and more through the Association as they learn how to actually succeed.”

    Founding members are eager to recommend the Association.  Marc Robin, President of New Look Marketing, a well known printer with marketing and advertising expertise, says, “The Association is one of a kind.  The time and dedication Gilenson gives and the tools he uses are profound.  Every member benefits from his concrete advice and in depth analysis, not to mention the wide array of educational seminars already lined up.” 

    The same reaction is shared by other Association members.  Sandy Gans, President of SandyToes Creative, one of South Florida’s fastest growing creative firms describes the Association as follows, “There as so many groups and organizations doing the same old thing, the Association is going to rock the entrepreneurial world in South Florida by focusing on small, local entrepreneurs with networking, education, and grants that provide the services they need to succeed.”

    Interested entrepreneurs are encouraged to contact Business Growth Trends at editor@businessgrowthtrends.com or call (954) 946-4442 for more information about the Association.

Yomin Postelnik is the President of IRPW, a company that offers business plans, funding advice and facilitation, SBA loan applications, SWOT analyses, bold and effective marketing strategies, general business development and grant writing and research for non-profits and certain qualified businesses.  Call today for an initial consultation – (954) 946-4442 or email Director@InsidersReview.org - www.insidersreview.org. 

How to Grow Your Client Base Through Referrals and the Significant Advantages of Doing So

By Yomin Postelnik
President - IRPW

      We all know how important clients are to any business.  Virtually all businesses devote a significant part of their time and efforts to attracting new clients.  Smart businesses take this one step further and spend significant resources on retaining existing clients.  Some need to design new programs or services to maintain clients who are no longer in need of their initial services, hopefully working with a creative consultant when doing so.  But far fewer businesses attempt to turn existing clients into their own marketing arms.  That's surprising, given that personal referrals are always the most well received.  For this reason I've put together a handful of tips to help you turn satisfied clients into satisfactory results for your business.

     For starters, ask!  No matter what business or industry you are in, you can always ask for referrals.    But won't satisfied clients refer you anyway?  No, and not because they have anything against you.  On the contrary, they do value your service.  But even though your business is on your mind, it's simply not on theirs.  There's a famous story about Tip O'Neill (US Speaker of the House 1977-87) when he ran in his first election.  He lost by only a handful of votes.  A short while later he met up with an elderly lady, a neighbor he had always been friendly with for years.  When she offered her "condolences" on the race he replied "at least you voted for me."  To this she replied that she hadn't gone out to vote.  The race hadn't been on her mind that day and all she could say was "Tip, you never asked."  O'Neill learned his lesson then and repeated it often in future races.  One doesn't need to be a fan of Tip O'Neill to appreciate the lesson learned from this story.   If you don't ask for referrals, your customers won't think of giving them.  It simply won't be on their minds.  If you do, it will be and they will.

     But what if your business deals in fairly confidential matters, stuff that clients wouldn't wish to advertise that they need?  Wouldn't asking for referrals only serve to turn off existing clients?  The answer: not at all, if done right.  Even if your business is confidential in nature, such as certain doctors or attorneys, you can ask your clients to think of you if someone they know finds themselves in a similar situation or may need other services.  If necessary, tell them that there's no need for them to divulge how they know you.  Ask them to simply say "I know of a ........ who's supposed to have a very good reputation." 

     Another referrals tool are incentives.  Everybody knows about offering discounts based on referrals and hopefully, after reading this column, more business owners will implement such a program and not just "know about it."  But discount incentives are just the beginning.  Incentives can come in the form of mutual referrals.  In fact, this is usually the best incentive of all.  To do this effectively, you need to get to know your clients.  Find out what they do, where they work, if they're employed - whether they have a second business or can benefit from introducing new clients to their company.  If the answer to any of these is yes, you may have the beginnings of a mutually beneficial two way referral network that will not only strengthen their loyalties to you as clients but bring you in more business while getting a chance to help them too.

    These are just a few examples of how to generate warm, first hand referral leads, the most beneficial of them all and the kind you cannot purchase with money.  For more ideas give me a call at (954) 946-4442.  Until then, remember, treat your clients like gold and give in a little sometimes to help maintain them.  But don't just treat them like gold.  Ask them to refer others and give their friends the opportunity to experience the excellent service your company or service provides.

Gearing Your Corporation For Success – Conducting a “SWOT” Analysis

By Yomin Postelnik
President - IRPW

     No, I’m not writing about how to catch flies in your office, though if you don’t get rid of them I can imagine how your customers feel (no offense to my friends on the golf course).  A SWOT Analysis is a highly effective tool that forms the foundation of not only your marketing plan, but of your operations and business strategies as a whole.  Although it’s only a preliminary step to forming a whole business plan, it’s also the most important part of your business plan as it gives you a clear and concise view of what needs to be done. 

     Here’s what it includes.  But before I list the components of the plan allow me to include a small note, from experience.  Don’t be overwhelmed.  Going item by item is fun, eye opening, very helpful and motivational (as it puts what you can accomplish in front of your eyes and gives you concrete ideas how to get there) and a lot less tedious than it seems.  Of course, I do recommend doing this together with a professional who can add so much more to your plan, but the exercise is fun and exciting either way. 

     SWOT stands for Strengths, Weaknesses, Opportunities and Threats.  A SWOT Analysis lists all of the above components of and challenges to your business.  But a SWOT Analysis is more than a general overview of these important aspects of your business.  Specifically, it analyzes and lists the strengths, weaknesses, opportunities and threats to each of the following important components of your business. 

·         The company (its position in the market, commercial viability, business structure)

·         Method of sales distribution

·         Product or brand/diversification strategies (Strategic options, such launching a new product)

·         Business ideas

·         Current marketing plan

·         Technology

·         Management/employee qualifications, supervision and ongoing training

·         Potential new acquisitions

·         Potential partnerships

·         Supplier (whether change is needed)

·         Outsourcing a service, activity or resource

·         Expansion/investment opportunities – capital/financing qualifications and availability

·         Accounting

·         Risk Management (vulnerabilities)

     The “strengths” and “weaknesses” sections of each of these deal with your existing corporate picture and provide a snapshot of your company.  They are extremely eye opening and show you where to make improvements in ways you never thought of.  The “opportunities” section is where you list all possible improvements you can make to each of the above areas/aspects of your business.  Finally, you analyze the “threats” associated with each opportunity identified, the “down side.”  This part isn’t meant to be negative.  It’s purpose is to allow you to see which opportunities to proceed with and the best ways to do so. 

 Yomin Postelnik is the President of IRPW, a company that offers business plans, funding advice and facilitation, SBA loan applications, SWOT analyses, bold and effective marketing strategies, general business development and grant writing and research for non-profits and certain qualified businesses.  Call today for an initial consultation – (954) 946-4442 or email Director@InsidersReview.org - www.insidersreview.org.  

Positioning Your Company for Growth During Uncertain Economic Times

By Yomin Postelnik
President - IRPW

    A key rule of business is to adapt to the realities of your industry or client base.  This involves researching and analyzing coming trends that will affect the need or demand for your product or service and developing an appropriate plan of action based on your findings.

    A few years ago the largest changes to the normal function of a business usually involved tech trends.  New technology made certain services virtually obsolete while opening even larger demand for others at the same time.  Today the changes are farther reaching.  Housing industry slowdowns, though temporary in nature, may unduly burden businesses in numerous sectors and fields.  Apprehension about the markets may impact financial advisors and overall debt burdens may affect your employees and productivity.  As with the tech changes, closed or narrowing doors come with new opportunities.  Businesses that position themselves to take advantage of the new realities and unique situations facing their clients stand to gain in the long run.  In fact, uncertain economic conditions may well open new doors and revenue streams for you if you analyze your industry’s situation and act accordingly.    

    Using the example of the housing slowdown, certain builders (those with significant reserves and diversified holdings – of which there are many) would stand to gain if they self financed projects to credit worthy people with low debt to income ratios.  They could exclude investors and thereby remain relatively certain that borrowers would honor their debts.  Such a move would not only open up a new revenue stream (mortgage interest), but would also give their developments significant advantage over the competition.   Of course, only those developers that can assume risk and have the resources to lend for an extended time (although many secondary purchasers would be interested in purchasing this prime grade debt, it is possible the developer would be left holding some of the risk) would be able to do this, but there are many such builders that are able to do this.  It works for them and allows them to take advantage of a situation that would normally devastate their industry.  In their case, the dire situation actually works in their favor.

    Sure, this works best for large builders, though smaller ones can offer this on a more limited scale, but there are many opportunities for the small business owner to take advantage of the situation as well.  Markets are opening in the areas of foreclosure prevention, rental properties and so forth.  Similarly, most downturns are accompanied by new opportunities.  Likewise, the growth of average household debt nationwide, something that often leads to stressed out workers, does not need to hurt office productivity if the company offers solutions such as debt settlement or credit repair to its employees.  It’s the job of the small business owner to research their industry, foresee potential pitfalls and look for new revenue streams that may come from them.  Doing so positions a business for growth and helps keep realistic and achievable goals in the forefront. 

Yomin Postelnik is the President of IRPW, a company that offers business plans, funding advice and facilitation, SBA loan applications, marketing strategies, general business development and grant writer and research for non-profits and certain qualified businesses.  Call today for an initial consultation – (954) 946-4442 or go to www.insidersreview.org.  

Five Places You Should Never Meet With Clients

By Jeff Landers

Starbucks might be convenient and wired, but does meeting there really send the right message about your business?

I recently came upon several columns from different publications urging home-based entrepreneurs to find creative places to have business meetings with their clients. In one publication, an entrepreneur, John N. from Tacoma, Wash., said he meets with clients in a diner down the street from his home-based office.

He and his clients talk business over stale coffee and grilled cheese sandwiches. "It's not the best scenario," he said, "but it's cheap and my clients don't seem to mind." In fact, many professionals agree with John and say small-business owners should take advantage of cheap public spaces to handle client meetings.

This is poor advice for entrepreneurs who are trying to get their businesses off the ground because -- to use a cliché -- impressions, especially first impressions, count. Who you are, the way you speak, the way you dress, the way your work looks, how you manage your finances and cash flow, the environment where you work, where you meet your clients -- it all matters. Every little detail sends a message and every detail helps someone make the decision to say "yes" or "no," especially if there is a lot of money on the line or if your client has to justify his decision to his bosses.

That means that every interaction counts. And meeting in a diner over day-old Danish, isn't going to cut it, if you want to grow your business and make more money. So, to help you make a better impression with your clients, I have assembled this list of the five places you should never meet with a client. All of these have been recommended as potential meeting sites by professional consultants.

Starbucks or any other Wi-Fi equipped coffee house

Starbucks has become the king of the cheap public meeting space and a spate of similarly equipped coffee houses have cropped up on every block. I've read that the plush chairs, "eclectic snack food" and infinite supply of java are the selling points.

But do you want to meet your clients on tiny, coffee-stained tables, surrounded by students and twenty-something novelists? Of course not, you want to have an adult conversation and make strong points without worrying about bothering the folks at the table six inches from you. Starbucks is serviceable and cheap, but it is not an environment to help you make a strong impression that inspires trust, confidence and loyalty.

Barnes and Noble, Borders or any other high-end bookstore

Some consultants believe bookstores offer a quiet, intellectual feel when meeting with clients. This is ridiculous. They think this, of course, only because the place has a lot of books, not because it sends the message that you are smart, together, knowledgeable and savvy.

College students and down-on-their-luck artists meet in bookstores. You must create an image of success, even if you are a struggling start-up. People want to invest in and work with winners. If you don't take your business seriously, no one else will either.

Public Libraries

Not sexy but definitely quiet. According to some of my colleagues, libraries offer a place to meet all day and no one will make you buy anything. I've been informed that some libraries even offer conference rooms that you can use.

No matter how practical, the message is that you have no resources. You are telling your clients that the best you can do is muster up an ill-equipped room in a public library. There is little opportunity for you to make a huge impression and most likely, the technology, such as video-conferencing and presentation platforms, will not be state-of-the-art or reliable.

Hotel Lobbies

Hotel lobbies can be quite beautiful and on the outside, seem like a great space to meet, but they also are busy. There is a lot of foot traffic there, including large groups of tourists. Hotel guests do not care if you make a good impression with your client, and the hotel employees will not cater to your needs unless you are a guest.

You cannot control your environment here. You cannot create a look of professionalism. You may end up shouting your well-prepared points over a group of drunken salesmen. Give your business and your ideas a platform that you can control. The fewer people around, the more decision-making power you have to make a lasting positive impression.

McDonald's or any fast-food restaurant

One consultant recently informed his readership that McDonald's had started offering free Wi-Fi in some of its urban franchises. This doesn't mean you should meet a client there anytime soon. I love the occasional chocolate glazed donut from Dunkin Donuts and have enjoyed a Big Mac or two over the years, but that is not something you should share with a client,especially a clientwhose business you are trying to win.

You are trying to sell yourself as high-end, something special, a cut above the competition. When your client thinks of you, you do not want him to say, "That Joe, we always meet at Arby's." You want him to say, "That Joe does some outstanding work for our firm -- what a pro!" These little things stay with people, so make sure that everything you do represent you well.

Jeff Landers assists business owners in making the transition from home office to real office in a unique and cost effective way. His website, www.offices2share.com, details this service. Other services he provides that are extremely useful to small business owners, including virtual offices for those who only need an office part time (see www.getavirtualoffice.com) and business services (payroll, secretarial, etc.) at www.getavirtualassistant.com. This last service frees up entrepeneurial hours that can be spent on growing your business. Please contact him at Landers@offices2share.com.

Protecting Your Company and Its Assets – Important Employee Policies 

By Rick Soloway  

     As an experienced HR solutions company, we would like to offer some additional practical steps to protect yourself and your company from employee fraud and mismanagement.  

    While doing a background check is important, unless you provide sound policies and procedures to protect your confidential information and ensure full compliance, your business will always be under fire.  The following are samples of policies/procedures that your company should have to reduce risk:

·         Confidentiality of employee records & information:  This policy should cover steps your company takes to ensure the personal information of employees are protected 

·         Confidentiality of customer information:  This policy should cover steps your company takes to ensure the personal information of your clients/customers is protected 

·         HIPPA regulations (regarding personal information):  Although this started as a regulation covering confidential medical information, it has been expanded to ensure the privacy of all personal information  

·         Non-Compete/Non-Interference Agreement (including wording for utilization of business information):  This should be part of the new hire paperwork that all employees sign stating they will not use any information learned during work to compete or interfere with you business operations during or after their term of employment.

    Furthermore, procedures should be in place to provide for storing and protecting private information, including such things as securing records in a locked filing cabinet, limiting access to records on a need to know basis and providing password protection on computers. 

    While many small businesses utilize people in multiple cross functional positions, protected information should be limited to those people who need it. Taking these steps will minimize access to information, thereby limiting your liability and exposure to lawsuits.

Rick Soloway is a partner in SOLUTIONS Human Resources, LLC, a full service payroll processing, human resources outsourcing and training provider, offering direct deposit, tax reporting and filing and new hire reporting, all through an easy to use web based program.  To contact SOLUTIONS call 954-839-6375 or e-mail Rick at rsoloway@solutionshr.com.