Exit Stage Left

If you think an exit strategy is only something you need when you get on an airplane, you may need to revisit your business plan.  An exit strategy can help you when you are planning to start your business, and is something that investors will ask about. Knowing how you want your business to eventually end up will help you immensely when starting up or preparing your business goals and benchmarks.

Exit strategies may include selling your business, paying your investors back, retiring, acquisition by a larger company or the elusive IPO (Initial Public Offering).  I say elusive because according to a recent article, Exit Strategies for Your Business, by Stever Robbins, there are only 7,000 public companies in the U.S. amid millions of companies, so your chances of great fortune are better playing the lottery.  The author goes on to say, “But if you’re a bootstrapper, believing in a fair IPO is a touchingly naïve act of faith. Besides, do you have any idea what’s actually involved in an IPO?” (Entrepreneur).

Here’s another great blog post I ran across:  Strategic business transitions keep communities vibrant.  This article talks about the importance of planning in farms and rural businesses, but the same lessons apply to entrepreneurs and family owned businesses.  Exit plans can also be extremely helpful for family-owned businesses and entrepreneurs.  I’ve heard stories of the patriarch passing away and then the heirs can’t get along and the business ends up failing, or one offspring wants to run the company a different way than his or her sibling(s) and it ends up destroying not only the company but the family.  With the aging workforce, this becomes even more important to get things in place.

Finally, here’s another link with a step-by-step list to plan your exit. Whether it’s business, succession, strategic or exit, there are also plenty of free resources on this topic and other business resources available online at SCORE and the SBA.

Apples to Apples

Apple growers in the Yakima Valley ship a million apples every week – a million!  The apple industry contributes over $10 million to our local economy, yet only 2% of the apples grown here are eaten in Washington State.  As I was learning more at a recent economic development symposium, it struck me that entrepreneurs can learn many lessons from the apple industry (and farmers and agriculture as a whole, but that’s enough for a whole book).

One of the most important takeaways about the apple industry was the need for diversification to stay competitive.  Remember Red Delicious?  I remember growing up, there were Red and Yellow Delicious, or Granny Smiths.  There wasn’t anywhere close to the varieties there are now, even compared to five years ago.  Now we’ve got Gala, Fuji, Jonagold, Pink Lady and even more new species coming out now. Today’s consumers want a a wide variety of choices and they want it all available in real time.  Who wants to pre-order Galas at the supermarket?

There is so much that the agriculture industry and farmers have done to stay innovative over the year that is driven by market demand and competition.  As an entrepreneur, you need to be proactive and try to anticipate what your customer needs, before he/she even realizes the need.  It comes down to innovation and sustainability.  Just think over the years about products that are obsolete but the companies have diversified product lines to meet customer demand.  KitchenAid has evolved from mixers into a whole line of kitchen products and gadgets, Hallmark has had to diversify to remain competitive with the onset of do-it-yourself cards or cheaper online alternatives and Apple (the other Apple) Computer is constantly rolling out new, innovative products.

How do you stay ahead of the market?  What type of data do you collect from your customers or how do you anticipate demand?

Win Start-Up Cash!

September 1, 2010 8:00 am

to

September 15, 2010 8:00 am

The First Annual Enterprise Challenge kicks off mid August, with CASH prizes of $17,500!  The Enterprise Challenge is an interactive business plan competition held from September through December 2010 and is designed to identify and reward innovative business ideas and solid business plans to Yakima County entrepreneurs.  Top prize will be $10,000, 2nd place $5,000 and 3rd place $2,500 – not too shabby for a start-up seed fund.

The first event is a half-day, jam-packed workshop called MBA in a Day.  There will also be resource nights for networking and other events throughout the contest.

Registration opens in August.  Stay tuned for more information and be sure to visit the Enterprise Challenge page.

MBA in a Day

Date:  Wednesday, September 15th

Time:  10:00 a.m. to 2:00 p.m.

Location:  Clarion Hotel in Yakima

Cost:  $40 per person OR included in $100 contest entry fee (for teams, one participant included in fee).  Scholarships for students may be available…check back.

Lessons from Silicorn Valley

Yes, that is correct.  SiliCORN Valley.  Otherwise known as Fairfield, Iowa, a town of nearly 10,000 that is becoming well known as the ‘Entrepreneurial Capital of Iowa‘.  This town has had over 4,000 jobs created and has attracted over $280 million in venture capital investment over the past 20 years.  Per capita income has TRIPLED in the same time frame and at the same time, Fairfield ranks 5th in the nation for philanthropic giving.  Essentially, they have turned the town into a giant incubator for entrepreneurs.

We have been putting a lot of emphasis on entrepreneurship over the past two years for exactly these reasons.  We want to encourage entrepreneurs to grow their business ventures in Yakima County and remain here as well.  Strengthening the support network for entrepreneurs is also a key factor to our Valley’s Entrepreneur Network.  Part of the success of Fairfield is due to networking, mentoring, and growing companies that are out of the ‘start-up’ phase.  We will continue efforts in these three areas to help ‘grow our own’ entrepreneurs in our area.

We are on the right track.  We have put numerous resources and effort into expanding our Entrepreneur Network.  There are tons of links on our website to business plan assistance, online training, financing your business and more.  Our local SCORE Chapter is also actively seeking new members that are willing to mentor up-and-coming entrepreneurs.  There are also many local resources to help small businesses whether it is the SCORE Chapter, your local Chambers of Commerce, the Small Business Development Center and Rural Community Development Resources.  Give me a call or email me if I can help match you up with a resource to fit your needs.

Free Labor & Industries Workshop for Employers

June 30, 2010
9:00 am	to	12:00 pm

The Yakima office of the Washington State Department of Labor & Industries is hosting a free workshop for new and small business owners on Wednesday, June 30, 2010 from 9:00 a.m. to noon.

This workshop is designed for new businesses or businesses that plan to hire workers for the first time. It explains an employer’s rights and responsibilities and provides an overview of the services and resources available at Labor and Industries. Participants will learn about workplace safety and health requirements, claims management strategies, risk management, quarterly reporting requirements and wage-and-hour laws.

• Register online or call 1-800-574-2829
  

SMART Goals = SMART Plans

I just saw a reference to SMART Goals:  SMART refers to Specific, Measurable, Attainable, Realistic and Timely.  These goals are excellent guidelines for not only goal-planning, but for entrepreneurs and small business owners and especially if you are preparing a business plan.   If you are defining your business, product or service, you need to be specific, know what you are selling and more importantly, who your target market is, and how often they will buy it.  A business plan can help you define your product, market, financial projections, team and business goals.

If you still don’t think you need a business plan, maybe this will convince you… According to a recent study, “those who finished their business plans were about twice as likely to successfully grow their business, get investment, or land a loan than those who didn’t” (Palo Alto Software). Read the full article.  Two times more likely to be successful??? That seems like a pretty good payoff for the investment of time and effort that goes into preparing a business plan.

I’ve had numerous calls from people wanting to start a business who are going to ‘sell everything to everyone’.  That’s a great ambition, but if I were a bank loan officer, I’d be asking for something a little more measurable, like how are you going to really make money?  The general rule for explaining your business is to be able to clearly define what you do in two sentences or less.

There are TONS of free business planning resources out there, and we are fortunate in Yakima County to have local mentors that will work with you on developing a business plan.  Visit our Business Plan Assistance page to get started today!

Business Loan Orientation (RCDR)

June 10, 2010
5:00 pm	to	6:30 pm

RCDR Business Resources & Training Center will be hosting a business seminar for entrepreneurs who want to start a microenterprise or those established small businesses that need a microloan for equipment inventory or working capital.  The workshop will be a hands on workshop on the steps that need to be taken to obtain a loan that can help you survive the   economic   slowdown.

Sponsored by the Rural Community Development Resources (RCDR).  Thursday, June 10.  5-6 p.m..  RCDR Incubator, Yakima, WA.

This seminar will also review credit as part of the loan process and the important steps that one can take to improve credit scores.  Space is limited so please  call  509-453-5133 to pre-register.

Need cash for your start-up?

How does $10,000 sound?  Who couldn’t use some cash to get your business started?  We are putting the finishing touches on the plans for the First Annual Enterprise Challenge, to begin in September.  The Enterprise Challenge is an interactive business plan competition to identify and reward the best & brightest new innovative business ideas and solid business plans.  It will run until December when winners are announced and cash prizes – top prize is $10,000! – are awarded.

The contest will kick off on September 15th with an ‘MBA In A Day’ workshop.  The workshop will be held from 10:00 a.m. to 2:00 p.m. and will include sessions on legal and intellectual property issues, accounting basics for business, marketing and entrepreneurship and will include an informative luncheon featuring Rebecca Lovell, Director of the Northwest Entrepreneur Network.  Registrations will begin in August for this workshop so stay tuned for more details.

If you are thinking about starting a business or have a new business, this could be a great opportunity for you.  Not only will developing a business plan help solidify your plans and projections, but the chance to win $10,000 and learn something along the way is invaluable.  Good business plans are not filed on a shelf; they should be utilized as a working document for your strategic plans, cash flows and goals.

If you are reading this now and thinking about competing, you’ve already got a head start against your competition! Contact me, Tammy Everts, Business Development Director, 509-575-1140 or tammy@ycda.com for more information!?

Not ready to quit your day job?

A lot of entrepreneurs have started new business ventures on the side.  Here’s a great article on a working ‘inventor’ mom who built a million-dollar side business, and she’s still working at her day job (seriously, who has time?).  She gives some great advice including the importance of connecting with other inventor moms, doing market research, hiring a good lawyer and being persistent.

In working with inventors and entrepreneurs, I can’t agree more with her comments.  You need to develop a support network and a team of people you can rely on to give you honest feedback, and if you have an invention, it’s probably going to be worth your time and money to invest in a good patent attorney.  I also liked how she told herself she was going to search for a similar product before she invested a lot of time and money into developing hers, and if she couldn’t find one better, then she would pursue it.  One lesson I’ve learned recently is that, chances are, if you have a great idea, someone else has too.  Unless you can make the cause that yours is significantly better or dramatically different, it had better be a lot cheaper.

Thinking about starting a business?

If you want to start your own business, you probably have some homework to do before you get started.  Find out what you need to do with a short workshop on Tuesday, May 18th from 11:30 to 1:00 p.m.  This class is perfect for you if you want to start a business, but are not sure where to start.  It includes the basic elements you need to know, what goes into a business plan, and also includes a brief self-assessment to evaluate your readiness for starting a business.

This is the first workshop in the Yakima Valley Entrepreneur Network’s ‘Working Lunch Series’, presented in partnership with SCORE.   Attend one or all of the sessions to learn what you need to get started.  Workshops are taught by professionals with real-world business experience.

• Thinking about starting a business?  Tuesday, May 18, 2010.  11:30 a.m. to 1:00 p.m.
• Business Plan Basics, Tuesday, June 1, 2010.  11:30 a.m. to 1:00 p.m.
• Financing your Business, Tuesday, June 15, 2010.  11:30 a.m. to 1:00 p.m.
• Marketing your Business, Tuesday, June 29, 2010.  11:30 a.m. to 1:00 p.m.

Held at the Central Washington Business Resource Center, 10 North 9th Street, Yakima 98901.  Classes are $10.00 each if you pre-register or $15.00 at the door and includes the price of lunch.

To register or for more information, call Tammy Everts, Business Development Director at 509.575.1140 or email tammy@ycda.com.

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