Business Start-ups

From: Vivian T.

Mr. Dunn,

I found you on the minority Business Page. I am going to tell you a little bit about my business and hope that you can give me some advices.

I am a manufacturer of plastic surgery garments-post liposuctions, face lift, ect.. I have top quality fabric from a well known manufacture. However, i am not sure on where to start. It seems like the big fish has gotten this place monopolized. Please advise.

Thank you,

Vivian T.

AskRecy Response

There are several things, I can recommend, however, I think the best approach is for someone with a great deal of experience in this area working with you each step of the way as you build the business. You need the help of an organization called SCORE – Service Corps Of Retired Executives, a nonprofit association providing business counseling to small business owners. The U.S. Small Business Administration (SBA) also sponsors SCORE.

The SCORE Association is also a national, nonprofit association with 11,500 volunteer members and 389 chapters throughout the United States and its territories. The organization is composed of retired business executives with broad business experience, often in your specific business area. The SCORE business leaders have faced the same situations you do and are dedicated to helping all business owners or potential business owners-women and men- realize their entrepreneurial dream. The effective part of their program matches volunteers with small businesses that need expert advice. SCORE also offers free counseling services and workshops designed for those who want to go into business for themselves.

Their website address is http://www.score.org

For reading material go to http://www.inc.com

This site provides service to the small-business market. There are very good articles written to help entrepreneurs.  Direct your questions to askrecy@aol.com   or follow me on Twitter  – #Askrecy or #HDRKW or go to http://www.homesdunnright.com

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Back to the Basics

 Back to the Basics

Have you ever watched a really entertaining commercial, the kind that cost six figures to produce, and when the commercial ended, you forgot what the product was, only that it was a funny commercial? Some business people put such an effort into making their business promotions slick and professional that they forget who the intended audience was. In advertising, you have to consider the target market. Who is your prospective customer? What kind of magazines or papers does he/she read? The aim is not to get an immediate order but to build name recognition and a reputation for your company.

Do not waste advertising dollars, advertise smart. Remember Jim Mackingvale, owner of Gallery Furniture. People laughed at his first commercials, but he knew the message he wanted convey to his targeted market – sticking to that point made him a wealthy man.

Minorities now own nearly 15 percent of American businesses and surprising, Minorities in Business, 2001, issued by the Small Business Administration stated that women were full or part owners of 9 million businesses and the primary owners in 5.4 million.

Most entrepreneurs never expect to fail, but thousands closed their doors each year and the rate among blacks is extremely high. What can be done about this? Let’s review three contributing causes of failure.

The No. 1 factor is lack of planning and a lack of focus. Learn from the mistakes of others. Plan for success. Don’t make assumptions about what you want to sell when the customer is not prepared to buy the product or service at your price. Focus on the customer; they are your first source to potential problems. Develop and write a business plan, but update it regularly and follow it. A well-written business plan will focus your efforts and resources on the business in a smart way. It will identify potential pitfalls that stand in the way of success. Like a road map, a good plan will identify where you are, where you wish to go and the best routes to travel.The SBA has a program called The Business Plan – Road Map to Success – a tutorial and self-paced activity that can be download or viewed as a text version. Go to www.sbaonline.sba.gov/starting/businessplan.html The No. 2 most common reason that small businesses fail is access to capital, most are under-financed. Most banks are reluctant to loan money to businesses that are under-capitalized. Determine your cash flow needs in advance. Working capital problems and borrowing after the fact is much more difficult. Don’t leave all of the financial decisions to an accountant. Lack of interest in the “accounting numbers’ is one of the single biggest causes of business failure.The No. 3 failure factor is lack of information. New business owners do not generate adequate information for good decision-making and are operating blindly to the success of their business. Keep track of revenues, expenses, receivables, inventory, and how each relates to each other. Many entrepreneurs underestimate the tasks of managing a small business.The Small Business Association (SBA) 8(a) Minority Enterprise Development Program (MED), assist in the development of traditionally disadvantaged individuals and is the federal government’s largest procurement program. It has two primary components, Business Development and Management and Technical Assistance.

If you need advice about your business, please go to http://www.askrecy.com