West Company ~ Mendocino SBDC

A day of inspiration...of the business kind

2011-11-09T17:19:00.000-08:00

by Heather Gurewitz

Mendocino Women's Business Center Director

Sometimes we go through our routines (no matter how un-routine they may be) and things just seem stagnant. And then there are days of inspiration...

Like when you see a client make a huge leap in their business development, launching their website, online store, and making sales! Such is the case with Delphine Davidson of Days Pharm. She came to me with her product, Ultra Pure Breast Cream, and although we had some shaky moments I have seen her follow through with her plan, launch her business, and start selling her very unique product. Something that is always inspiring to the business consultant. (read more about Delphine in our client spotlight)

And then there are the youth at Shelter Cove. While I wish I could say I knew from the beginning that it was going to be a wild success, it has been a difficult project. While we planned well and had great help from Matson's Building Materials and design help from Wheeler Munroe, I have to say I was really nervous until Ray, our dedicated volunteer showed up to help us. While I wasn't surprised, I was more impressed that the students were able to pull together and complete the construction of a dog house in a day, yes, there is still work to do, but the day was a major accomplishment, and extremely inspiring. Oh, and of course we still have two more dog houses to sell. You can order on their website.

Everyone's work can be stressful, but on days when the magic happens and all that hard work actually pays off, it is all worthwhile!

Pseudo-phone numbers, a Must for Start-Ups?

2011-10-11T14:56:00.000-07:00

by Heather Gurewitz
Mendocino Women's Business Center Director
As more people are looking toward starting a business and self employment, there are some conflicts of interest that come up. For example, for professionalism as well as personal safety you want to have a separate business line, something different from your personal number or your house phone. However, a new business line can be expensive to set up, cost prohibitive in most cases, and in many ways less efficient. Yet, especially for women entrepreneurs, having a published personal number is not desirable, especially if you plan to have flyers pasted all over town. So, how do you maintain personal safety and privacy and a high level of professionalism? Technology to the rescue! Both Google and Skype are offering FREE "phone numbers" that you can link to your existing telephones. While I am not as familiar with the Skype version, with Google it is very simple. You set up your Google voice number so that it rings your home, cell, and/or other number choice. The best part is, if you have caller ID, you can have your Google number show up when calls come through so you know how to answer. And, if you decide a year down the road to get a business line in your new building, you don't need to necessarily change your number. You can just forward it to the new business line. Did I mention this was free?

If you are starting a business, there are a number of free online tools to check out. These are great ways to make your start-up experience more seamless and reduce those hefty expenses. For more on starting a business take our Building a Better Business series!

QR Codes: Post Purchase Power?

2011-07-06T08:44:00.000-07:00

by Heather Gurewitz

Mendocino Women's Business Center Director

I recently noticed a QR code on the inside of my phone bill, inside the container of my commercially grown strawberries, and on some other products for post-purchase clicking. So, is there value to post purchase QR codes? I think there may be...

One of the fundamental questions I always tell my clients to ask themselves is: "Are you making it as easy and convenient as possible for people to give you their money?" If the answer is not yes, the next question is: "How can you make it easier?"

If you are sending someone an invoice with "due on receipt", it probably still goes into a pile with other bills that are due on receipt and require the writing of a check. Even if you have a "pay on-line" option, that person still has to go find your online payment system, probably set up an account and make the payment. However, if you generate a QR code (which takes about 15 seconds) to put on every bill you send out that takes people directly to their balance due with the option to pay immediately with a credit card, paypal, or even checking account, imagine the possibilities.

Your client, instead of putting the bill in the stack, clicks on the QR code which takes them to your online PayPal, Google Checkout, or other merchant account, and allows them to pay immediately via their smart phone. I wish I could offer a guarantee that this would work, but hey, it's the world of business so instead we have to review risk versus potential outcome. So, what do you risk? 15 seconds of time making a QR code and maybe another 30 pasting it into the proper spot on the invoice. What's the reward? A faster turnover of accounts receivable means more available cash for the business, resulting in you sleeping better at night because you don't have to worry about your rent check bouncing.

While I still agree that QR codes are imperfect, as mobile technology grows, so does the market. In our recent survey most people said the cost was prohibitive, but as the efficiency, applicability, and access to the technology grows, more and more people are going to be using it, especially those with purchase power. So, if they have the power, let them purchase! Make it easier for people to give you their money. It's good for your business.

Running Rivers and Businesses, Keys to Success

2011-06-28T11:38:00.000-07:00

by Heather Gurewitz
Mendocino Women's Business Center Director

If you've worked with me, you probably know I love kayaking. After spending four and a half intensive days on the American River in a whitewater kayak I learned a lot about how to be a good paddler which also applies to being a successful business owner:

1. Scouting... From the water, a rapid may look like just fun moving water, but if you take the time to pull off the river, get out and have a look, you may find there are dangerous spots you want to avoid, and some fun spots you want to go through. Even if you don't get to get out, you want to plan your path. In the business world, we call this business planning. Take the time to step out of your work and plan where you want it to go before you get there. It can save you a lot of grief in the future.

2. The set up... When you are going into the rapids you have to set up early, get your speed, angle, and edge right, and commit to your route. If you go in right it is much easier to have a fun ride and a lot less work. When you start your business, make sure that you are positioned for a successful experience. Not having enough capital, lacking key skills, or starting at the wrong time of year can ruin the business before it even gets started. Even if you do, sometimes the river takes you somewhere you didn't intend to go. Or what you thought was the right speed, angle, and edge, turns out not to be.

3. Always be ready to correct... Sometimes you miss, and the next thing you know, the world is 180° in the wrong direction. What do you do? First off, DON'T PANIC! If you're facing upriver and you should be facing down river, one powerful stroke in the right direction can set you back on course, and if you are 180° upside down, some powerful hip action and a good torso rotation can get you back upright. If you panic, you will probably end up swimming, which leaves you in a much higher risk position. When you are off course, it doesn't matter if it was the boat, a rock, an eddy, or just exhaustion. The key is to assess your current situation and as my coach, Jeff Laxier says, "Fix the problem." When you are safely upright and cruising down stream you can go back and analyze the situation.

4. Have the skills you need before you get there... When you are upside down in a kayak, instinctually, you want to lift your head out of the water first so you can take a breath and pull on your paddle to lift your body out of the water. Unfortunately, it is pretty much impossible to roll your boat up that way. I've spent a year and a half learning how to roll. It has taken time, commitment, and a LOT of practice and it has been a challenge. If you are in business, choosing the wrong corrective action could make a bad situation much worse. West Company offers many affordable classes to help you expand your knowledge so that you can properly assess situations and make good decisions.

5. Now, I talk to people who learned how to kayak by getting in a boat and going down river. They have some interesting stories. I chose to take classes from professionals who have taught me how to have fun and be safe on the river. The truth is, anyone can get in a boat and go down stream, BUT, not everyone makes it to the take out with their boat, paddle, and body intact. Same with business, anyone can get licenses and permits and open a business, but starting a successful business, that is a whole different story and the main reason West Company exists. Through the Small Business Development Center and the Women's Business Center programs, West Company offers classes and free one-on-one consulting to help you acquire the skills and knowledge you need to become a successful business owner. For more information, visit our website.

QR Codes: Trash or Treasure?

2011-06-21T09:35:00.000-07:00

by Heather Gurewitz
Mendocino Women's Business Center Director

Recently, we had a workshop about marketing to people with mobile technology and in particular QR Codes. Since then, a number of people have been so kind as to share articles with me critiquing QR code technology and questioning their value. Are QR codes a passing fad or the new Facebook? Now, no one can tell the future, but here's my personal opinion on the future for QR Codes.

I will definitely admit that QR Codes are not perfect as is the case with any technology, but note that never stopped anyone from using Microsoft products. So, yes, I believe that the technology will change and mature, but this kind of mobile technology is the future of marketing and of great value to local businesses, and here's why:

Imagine two bowls, side by side on a shelf. One is priced $49.99 and the other $99.99. The bowls look the same, and based on price, the decision is easy right? The consumer flips the bowls over, the $49.99 bowl says "made in China" on the bottom and the other bowl has a signature of an artist. Well, maybe that starts to account for the price difference, but, in today's economy where people are concerned about spending, is it enough? Now, imagine the artist's bowl has a tag with a QR code, the consumer whips out their iphone/android and clicks on the QR code which takes them to a 1 minute youtube video that shows the creation of the bowl and the artist talking about the significance of the piece. In one FREE postage stamp sized square and a click, the consumer has made a direct audio visual connection with the artist and now understands the significance of the piece and the work that went into it. Suddenly the $49.99 bowl is a cheap knock-off made in China and there is no denying it.

Stay tuned for the next blog on how to effectively use a QR code. Did I mention that they are free and really easy to make?

To learn more about QR Codes, join us for "Marketing 2 Mobile" with Matt Brown in Ukiah on July 19th from 4:00-5:15. Register here!

The Silence of the Blog

2011-06-14T15:35:00.001-07:00

by Heather Gurewitz
Mendocino Women's Business Center Director

Given the number of workshops, consulting, and new programs we have been delivering, our blog has been somewhat on vacation. But, if I were one of my clients, I would tell myself, "You can't let your blog rest! It has to be working for you 24/7. Just put something short up, anything that is valuable and interesting, it doesn't have to be a full blog." And yet, with all the excitement around here, it seems to have fallen through the cracks.

Now I could offer some useful tips on how to make sure you get your blog done in busy times, but then, that would seem pretty hypocritical. However, looking back, I ask myself, "Am I really stressed about the more-than-month long silence of the blog?" No, and here's why:

The purpose of our blog is to share information and continue to develop West Company's reputation as a resource for micro and small businesses in Mendocino County. While our blog is an important part of that strategy, it is part of a whole mix of things that we do, including the actual "pedal to the metal" consulting and training. What really makes West Company a valuable resource isn't my half hour words of wisdom, but rather the work we do with clients. And we have been busy with all kinds of great events. We've been offering our "Building a Better Business" workshop series both on the coast and in Ukiah and we've been bringing in some experts to help those in business to expand their existing knowledge so they can keep up. So, while the silence of the blog has been nagging at me, it is more important to focus on the work that is going to get you closer to reaching your goals.

Developing Discipline

2011-05-09T14:32:00.000-07:00

by Hannah Alexander, Administrative Support

A recent article on elephantjournal.com asks: When Did Discipline Become a Bad Word? When, indeed? A timely question when tiger mothers are making headlines alongside entrepreneurs.

Nationally, interest in small business has increased of late, which means that one can find entire sections of newspapers devoted to “Entrepreneurship” and “Small Business”, while in other parts of the newspaper fierce debate rages over how much discipline a parents exercise with their children. These two issues have a common thread: Discipline. Like it or not, discipline is necessary in both parenting and running a business.

Self-discipline is a key skill for entrepreneurs. Not in the beating-with-a-stick sense, but in the sense that you can make yourself work on your business plan when it’s a beautiful day outside, or refrain from buying billboard advertising when you really need Yellow Pages advertising.

When running a business, even when in the exploratory stages of starting an enterprise, the discipline it takes to honor commitments, combined with the ability to complete your least-favorite tasks in as timely a fashion as your favorite tasks, will serve you very well, long into the future.

You can explore what skills and talents you need to be a successful business owner with West Company in the Building a Better Business series of workshops happening now through June 2nd in Fort Bragg, running May 27th through July 28th in Ukiah. For more information call 969-7571, or, you can register online here for Fort Bragg, click here to register for Ukiah.

"Marketing Expert to Present in Fort Bragg"

2011-04-25T10:16:00.000-07:00

By Heather Gurewitz

Women's Business Center Director
West Company

I wish I could say that our economy is going to magically going to recover, but as I tell my clients, I don't have a magic wand and I don't have a crystal ball, so I can't guarantee anything. Yes, things have been tough lately and somewhat depressing, but as a business owner, it is critical to your success to think positively about the future and position your business so that you are the master of your market niche. No, there are no guarantees, but, if you don't plan for success you are guaranteeing failure. True, people are saving right now, and also true that our economy is in a major shift, but there is a tomorrow, and the one thing you as a business owner cannot afford is not to be ready for what's coming.

West Company's purpose is to help businesses grow and expand to create jobs and create strength from the ground up, which is why West Company, through the City of Fort Bragg Community Development Block Grant is offering a two hour seminar with marketing trends expert Rieva Lesonsky of GrowBiz Media. On Wednesday, May 11th from 1:30-3:30 pm, join West Company and Rieva at the CV Start Center for "Travel, Weddings, and Luxury Products: Trends for the Future."

This dynamic presentation by one of the nation's top experts in marketing trends will address: What visitors to the coast will be looking for in seasons to come; who is getting married next and how to reach them; where and how to market art, crafts, gourmet food, and other luxury products made in Fort Bragg and on the coast.

Prior to co-founding GrowBiz Media, Lesonsky was Senior Vice President/Editorial Director of Entrepreneur Magazine. A nationally recognized speaker who regularly addresses audiences across the country, she has appeared on hundreds of radio shows and numerous local and national television programs, including CNN, Good Morning America, and the Today Show. A driving force in small business across the country, Lesonsky served on the Small Business Administration’s National Advisory Council for six years, and was honored by the SBA as a Small Business Media Advocate and a Woman in Business Advocate.

There is no cost to attend "Travel, Weddings, and Luxury Products: Trends for the Future" but registration is required. To sign up call 964-7571 or visit our website.

Pondering Procrastination

2011-04-05T14:39:00.000-07:00

By Hannah Alexander, Administrative Support

Nothing is so fatiguing as the eternal hanging on of an uncompleted task. ~William James

As a future small business owner, you have more to gain by overcoming procrastination then the average human being (and that is saying something). Because your business success will rely heavily on your being on top of your affairs, a tendency to put off less desirable tasks will have a deleterious effect on your small business’ success.

We human beings procrastinate for many reasons. Most of those reasons, plainly put, are rooted in fear of success and a lack of personal mastery. Take a moment to sit back, place your two feet on the floor, and breathe deeply. Consider: What have you been putting off? Very quietly and with compassion for yourself, consider: Why?

Interestingly, it takes patience not to procrastinate. We have to have patience with ourselves as well as patience with the task.

For more information about procrastination and how to manage it, see this link and this one.

Speaking of things you may have been putting off, the next Building a Better Business series kicks off soon with “Does Your Idea Make Cents?”, wherein you learn how to assess the feasibility of your business idea!
Find out more and sign up on line here.

"Your accountant is only as good as the information YOU give them."

2011-03-18T15:58:00.000-07:00

By Heather Gurewitz
Mendocino Women's Business Center Director

Let's face it, taxes don't exactly whip people into a frenzy of excitement, but, bringing Keith Hall virtually into our conference room last month to share his wealth of knowledge is one of the most important things we can offer. While you need your accountant to help you with all that tricky depreciation stuff, and figuring out those home office deductions, there is one simple truth you should always remember at tax time:

"Your accountant is only as good as the information YOU give them."

I will emphasize some of the key points I got from TaxTalk:

1. Do The Paperwork - I know, it isn't fun, but hey, if you think about all those deductions you can take, you can save a lot of money. But if you don't have the documentation you could end up owing more in the end (don't forget penalties). If you are guesstimating that you drove 6,000 miles in your personal vehicle for the year, you had better have something to prove it to an auditor. Your accountant won't make a mileage log for you, you have to do it.

2. Red Flags - Lately I have had clients coming in saying they are hesitant to take a deduction because they heard it was "red-flagged" by the IRS. Yes, there are some things that are red flagged by the IRS, and you don't want the IRS to accuse you of FRAUD, which is why you only claim what is legitimate and what you can document. The long story short being, yes, you should be careful with deductions, and if you have a legitimate deduction, see #1 above.

3. It Doesn't Matter If You Have an Accountant - Okay, it does MATTER if you have an accountant, but not in regards to how you organize your finances. You are not the only person who walks into your accountant's office on April 1st with a box of receipts or a book full of penciled in numbers and a sheepish grin. Well, okay, maybe you went in February 1st, but still, your accountant is now sitting at their desk with piles of receipts, books, and a looming deadline for them all. You are essentially telling them to set your financial management system for the last year and expecting them to know how you operate and manage your business. If something goes wrong, you are responsible. In fact, you will have to pay your accountant again if you want them to help you through an audit, and if you don't have the proper paperwork, it won't do any good.
So, do you have that sinking feeling in your stomach, like, maybe you should have gone to TaxTalk? Well, have no fear, by popular demand, we are bringing Keith back on Wednesday, March 30th from 10am-12pm to both Ukiah and Fort Bragg. This is not a class on how to fill out a Schedule C (we give you a book that tells you how to do that and the IRS provides a virtual workshop and information resources on filing). This is a class on how you can save money and protect your personal and business assets. Try our new easy on-line registration system, and save your space now!

Let's face it, you're busy!

2011-03-03T10:42:00.000-08:00

by Heather Gurewitz
Mendocino Women's Business Center Director
So, in addition to making your products, delivering your service, you also have to track your finances, manage your books, and well, make your business run. Not much time left for marketing is there? And now, with the "infinitely expanding" marketing universe, it's even harder to figure out whether you should be running that newspaper ad or simply creating a Facebook page. While the economy may be starting to rebound a bit, things are still tight, and as a business owner you have to make the most of every minute of your time. You don't have time to dink around with a blog every week, or spend hours sifting through Facebook. Sure, setting up a Facebook page or a LinkedIn profile is easy. It is even fairly easy to set up a blog and a website these days, but the question remains....

Are they generating any sales?
Are they a valuable use of your time?

Zero Budget Marketing on Wednesday, March 16th, from 5:30-7:30 is a 2-hour workshop for existing business owners that want to maximize the use of the free marketing tools available. Just because everyone else has a Facebook page for their business, does that mean you should too? Come find out. We will use a decision making model to compare the various avenues you can use to market your business, and come out with some clear actionable goals. And, to make it easier, attendees are eligible for one-on-one consulting (all consulting by West Company is covered through our WBC and SBDC programs at no cost to client) to help you refine and implement your strategy! This workshop is a great investment, its two hours of time that can save you hundreds of dollars and hours.

CLICK HERE TO REGISTER with our new online registration system!

Disclaimer: This class is NOT a "how to" class. We won't show you how to create a Facebook page, or tell you how to set your privacy settings, information specific to each business and program will be covered in one-on-one consulting sessions (again, at no cost to client).

Show me the money?

2011-02-22T16:17:00.000-08:00

By Heather Gurewitz
Mendocino Women's Business Center Director

There has been a lot of buzz in the news lately about financing, SBA loans, non-profit intermediaries, and getting businesses the capital they need. Locally, a number of loan and alternative financing opportunities are available for local businesses looking to start, grow, and expand. From micro-loans to SBA 504 loans, there are a lot of opportunities. So, how do you decide what to pursue. Here are some basic guidelines to follow:

First off, this isn't "easy" money. Anyone looking to get even a micro-loan must demonstrate that they are financially responsible and will be able to pay back the loan. If it is an existing business, they should have three years of financial statements, showing good profit margins and ability to take on new debt. If it is a start-up business, they should have a well thought-out business plan with 2 years of financial projections with good back-up information to justify the numbers.

Most people assume the first step is to go to the potential lender, but if you don't know how much you need or how much you can pay back, you are wasting time (yours and theirs). Start with a business plan. Unless it is a personal loan and you are collateralizing personal assets with a commercial bank or credit union, your lender is going to require this, and you are wasting time trying to get money without it. Does this sound scary and intimidating? We can help.

Once you know how much you need, it's time to "go shopping." Getting a traditional commercial business loan right now is still a tough, but some alternative financers can't work on a package unless the loan has been turned down by a regular bank, so it may still be worth asking. Depending on where the funds are from, terms will vary greatly. For example, some Community Development Block Grant (CDBG) Program loans range at 2%-5% interest for a micro-loan, whereas an SBA Community Express loan is going to be at about 7% with traditional banks coming in around 8-9%. (these are examples not actual numbers). Also, the terms are different, as well as the processing time frame, and requirements. (Another reason you should visit with us first, we can help guide you through the programs that are out there so you can make an informed decision about which one to pursue.)

Special note: If you have or will start a business in the City of Fort Bragg, you may be able to take advantage of the City's CDBG MicroLoan program which offers loans up to $15,000 for start-up or expansion of existing businesses. The terms on this are variable, and the loan fund is designed to assist those with low or moderate income. For more information about this program contact Heather at 964-7571.

Now it's time to actually fill out the loan applications and start developing a relationship with the lender. If you can go to them organized and ready to answer questions and support your request, it is much more likely that they will want to lend you their money and consider you a lower risk (which usually means better terms).

If you are thinking about getting a small business loan, a West Company consultant can provide neutral and objective expertise to help guide you through the process and find the option that will build success in your business. Our consulting services are covered by our funders and there is no cost to our clients. Click here to get started!

High Speed Internet for Everyone!

2011-02-22T13:44:00.000-08:00

By Hannah Alexander
Administrative Support

One of the things that makes Mendocino County a unique (difficult or wonderful, depending on the day) place to run a business is our very rural setting. While there are many advantages to doing business in Mendocino County, there are some disadvantages. One of them is access to high-speed internet, which many residents of Mendocino County lack. According to the Association for Enterprise Opportunity, 75% of businesses in Mendocino County are self-employed persons. As Heather pointed out in her last blog post, the digital marketing universe is steadily expanding. The same could be said of the digital banking universe, the digital researching universe, and the digital networking universe. Many of these opportunities are best realized over a high-speed internet connection, and this puts rural entrepreneurs trying to conduct their business over a dial-up connection at a significant disadvantage.

The Federal Communication Commission (FCC) is engaged in an effort to identify areas in the United States which either lack high-speed (broadband) internet access completely, or have limited and perhaps unreliable options for broadband access.

Here at West Company, we are very interested in seeing more access to broadband internet for rural areas, so we are encouraging people to send information to the FCC to help identify broadband “dead zones”.

They have even made it easy by offering a short form to fill out. You can respond via the website, also by email, fax or postal mail….

The universe is expanding...

2011-02-14T09:01:00.000-08:00

by Heather Gurewitz

Mendocino Women's Business Center Director

They say that the universe is infinitely expanding, and while I'm not much of a science buff, I can tell you that the marketing universe is definitely following this trend. Facebook, blogs, and twitter; social media is now deeply ingrained into mainstream, but it is still changing and expanding. Between Smart Phones and easily affordable net books the digital world is dominating consumer behavior, including that of tourists.

Summer is just around the corner, and if you want to make the most of your summer sales, you don't just need to stock inventory, set new menus, or order new sheets for the beds, but you need to make sure that you are digitally prepared for your visitors. Now, as I mentioned, the marketing universe is infinitely expanding, so how do you figure out how to spend your already limited time? After all, you have to order your inventory, hire your staff, prepare the bds, and run a business. Who has time to follow the let latest marketing avenues? Well, West Company of course. It's our job to stay on top of the tools available for small businesses, and if you have met with me regarding marketing, you know that I am all about spending as little as possible of your hard earned dollars on advertising when you can do it for free! So, of course I have a suggestion for how to make very good use of your limited time:

Join us for Zero-Budget Marketing! on Wednesday, March 16th from 5:30-7:30 pm in Fort Bragg. Learn how to unleash the power of free marketing tools on and off the web. This 2 hour workshop will give you the tools you need to successfully generate sales and create returning customers even if your marketing budget is zero! We will cover a range of marketing opportunities both on and off the web as well as looking at how to distinguish good marketing opportunities from bad investments. Register now, using our new easy and fast online registration!

Getting the word out with West Company!

2011-02-01T09:58:00.000-08:00

by Heather Gurewitz
Women's Business Center Director

Beyond all the great things we do with clients (improving financial management, marketing, increasing sales, increasing profits, starting businesses, buying/selling businesses, hiring employees, etc.), there have been some really great things happening to promote our clients. Through our connections and partnerships we have been able to offer great exposure on a broader scale for some of our clients.

Just the the other day I received a call from the paper. They were getting ready to produce the annual "We Live and Work Here" insert and wanted to know who might be an interesting story. It was exciting to open the insert and see great promo pieces on the businesses that we recommended.

We've also been working on some exciting media projects. In July, 2010 I had my first foray into the world of YouTube video stories about our clients and our work. My "guinea pig," Becky Ahmadi's story got picked up by the SBA who wrote a press release that was featured in the first business section of the year in the Fort Bragg Advocate News.

Most recently our regional lead office for the Small Business Development Center called to say they are doing promotional stories on SBDC client and asked for a recommendation for a unique business that has been successful with the services of SBDC. This resulted in a video shoot and soon to be promo video for Liquid Fusion Kayaking. Filming was great fun, and I even got to be a kayak movie star for a morning! Click here to see more pictures of the filming.

With the success of viral marketing and video stories like that of Penny Ice Creamery in Santa Cruz, the story of small getting big is an opportunity for "mom and pop" shops with a unique story. Do you have a good story to share and want to know how? Contact us for our no-cost-to-client aka free consulting services to find out how you can tell your success story.

Good Books and Tax Time...

2011-01-27T09:56:00.000-08:00

by Heather Gurewitz

Mendocino Women's Business Center Director

I know that we talk a lot about book keeping and maintaining good finances a lot on this blog. Any guesses why? There are no words to describe the importance of numbers in a business. Tax time is quickly approaching, and with that, finances are on everyone's mind. I am already working with clients that are coming in with a number of interesting scenarios, which always lead me back to the same thing. If you don't understand your finances, you don't have control of your business.

Knowledge is key in this arena. If you are so fortunate that your business generates enough profit to hire a book keeper or CPA, that is fantastic, but this doesn't exempt you from managing these aspects of your business and at least knowing how they work. If you don't understand your books, how do you know the person you have entrusted them to, is doing them correctly? And let's be honest, we all have bad days and make mistakes, don't assume your book keeper or CPA is exempt from that.

On this point, the single most thing people seem to not understand is that: If you get audited and the IRS comes knocking at the door, no matter who else signed your tax return, you have the ultimate responsibility. It is yours, the buck stops here, etc. They won't take your book keeper's house, and they won't take your CPA's car. If you are not paying your taxes in the correct amounts and at the right times, YOU are the one responsible, and you are the one at risk to lose everything. And believe me, the IRS can seize a lot more than a bank or a collection agency. It is not the place you want to mess with.

So, it's your business, and (hopefully) your asset. That means that you had better be sure you know what your book keeper is doing, and you had better make sure that you have the information to keep yourself out of trouble. Speaking of which...

On February 8th from 10:00 am - 12:00 pm in both Ukiah and Fort Bragg, West Company will be hosting a semi-webinar, "TaxTalk" with Keith Hall, CPA and National Tax Advisor for the National Association for the Self Employed. Keith is a wonderful presenter that will be joining us for a live web presentation that will include: how to have an audit proof tax return, how to save money on your taxes, and changes to the tax code for 2010. I've seen Keith give this presentation in the past, and it is a must for anyone who is a sole proprietor or self-employed. He is not only very knowledgeable, but a great presenter. All participants get a free copy of "Schedule C from A to Z" co-written by Mr. Hall. The cost of the workshop is $25 and you can sign up online at www.westcompany.org. Don't wait space is limited and filling up fast!

There's a no-collateral working capital SBA loan for small businesses! Seriously?

2011-01-11T16:33:00.000-08:00

Yes! Ever since the Jobs Bill passed back in September we have been receiving phone calls from clients and community members interested in the new funding available from the bill. Information has been slowly coming down the pipeline but finally, there is a new loan fund established and ready to help small businesses; the Community Express Loan Program.

The new Community Express Loan fund is available to both existing AND start-up businesses. It provides loans from $5,000 - $25,000*, collateral free with interest rates ranging from 7% to 8%. Additionally these loans can be processed as quickly as 4 week after the loan package is complete and submitted.

This is definitely the most flexible program I have seen since I have been working with businesses in the county, and it is a great opportunity for local businesses and start-ups.

Some of the eligible uses include:

• Hiring a new employee

• Purchasing Inventory

• Business construction up to $10,000

• Working capital

Note, though the funding is flexible in its use, it still requires a plan showing that you will be able to pay the loan back within the stated terms set. Additionally, there are some restrictions to the funds. For example, they CANNOT be used for businesses engaged in real estate, agriculture, fishing, medical facilities, mining, religion, or gambling. (see fact sheet link for full list)

West Company does not engage in lending for the SBA, but we do assist our clients through the process of developing their business plans and preparing loan packages. Additionally we offer classes to help business owners write their plans and learn the basic skills they need to be successful. We also maintain a relationship with both banks and alternative lenders to help our clients find the best loan option for their business. If you would like more information on consulting and classes available at West Company visit our website.

For more information on the Community Express Loan including what is eligible and ineligible, check out the Borrego Springs Community Express Loan Fact Sheet:.
*Note: Businesses located in Low Moderate Income (LMI) designated areas are eligible for up to $50,000.

Grants for businesses?

2010-12-20T14:43:00.001-08:00

By Pamela Patterson, CEO

I can always tell when the calls are coming in to business owners soliciting how to receive grants or funds to expand or start a business. I am a West Company employee of 12 years. Within this time and every recession, the grant scammers come out in force and prey on business owners or those wishing to start a business.

Just the other day a business owner came in that had wire transferred $3,000 to a company claiming to help him to get non-profit status in order to expand his business and funding. Anyone should be alerted to a company suggesting non-profit status for a business. Funding is a typical word used for both grants and loans, and is a common word used by companies that are trying to maintain ambiguity. When you hear "funding" you may think free grant money, but in reality you are getting a high interest predatory loan.

A few questions later, I knew it was a scam, and yes I already knew this before the questions. He read the contract for the first time that stated he couldn’t get a refund or dispute the charges. Another tell -tale fact, the company name changed from the first contract offer to the current one. He wanted to know if he should send $5,800 on to the second company. Well you know my answer. A solid NO! It used to be that the entry for these scams was $39.95 for a book and it was refundable or you could charge these large sums on a credit card and dispute the charges. Now they want a wire transfer that is cash and it is gone the moment you send it.

Grants to start or expand businesses are extremely rare (you have a better chance of winning the lottery). Better to keep your money in your pocket and seek out assistance to better manage your business. As the Mendocino Women's Business Center and Small Business Development Center, West Company offers services at no or low cost that can help you manage your financial health and your business!

It’s All in Being Prepared

2010-12-13T12:27:00.000-08:00

By Loyd Hambrick
Chief Operating Officer

New and valuable tools – I too am excited about the new tools we are preparing to offer to local business owners and the increased prosperity they can bring to our communities. The program Heather spoke of in her last post, ProfitCents, presents some great tools for analyzing existing businesses. The ability to compare performance of an existing business to industry standards as well as to past years’ performance levels can have a great impact on a business owner’s ability to make sound decisions. However, as they are brand new to us, it will it take us a bit to get proficient with these tools. It is always West Company’s desire that business advisors be comfortable with the tools they use and offer to businesses before they are rolled out. That being said, there is still much we can do to help you improve your knowledge fostering better decision-making.

GIGO – Computers have been part of both my personal and business lives for a long time. My first exposure came while attending college at CSUS in the form of a programming class using a language called FORTRAN. Our project involved creating a computer program that compared foreign currencies to US dollars and using a compiler to translate the code into computer language. For those of you that can’t remember ever using a compiler, don’t worry about it, they are hidden in today’s computer world; for those of you who have used a compiler, I am dating myself. After inputting code into the compiler, our jobs as students was to begin to fix each of the many error messages the compiler would spit out. Each message was a clue to what was wrong about the code entered. The biggest frustration came after fixing the long list of errors to the point the program worked, only to get an incorrect answer. That is when one was faced with a tried and true basic principle of computer programmers– GIGO (pronounced gi go) – which stands for Garbage In, Garbage Out. Throughout my thirty plus years starting, owning, operating, and selling small businesses, I have found this principle can be applied to many different areas of business management including the most important aspect financial management. With computer programming, GIGO means that even if your code is of top quality in its writing, if the premise you use to begin the process is flawed or “garbage”, the result will certainly be “garbage”. This basic principle should be applied when analyzing financial data, the vital statistics of a successful small business.

What’s needed – Endless numbers of financial management tools, such as ProfitCents, exist in today’s business world including products that will collect the necessary data for you provided you implement and follow data collection systems. Many of those products have made my business management life much simpler and efficient and I highly recommend implementing such technology. But of huge importance is GIGO! You must make sure the information you are inputting is data of sound and accurate origins. Otherwise, the conclusions will be garbage and your decision-making flawed. Accurate and valuable analysis utilizing any kind of tool, whether manual or automatic, requires first having data to analyze. Generally, at least two specific financial documents are required, a profit and loss statement and a balance sheet; many times a cash-flow statement is required as well. These types of tools can make the difference between a stressed-out business owner and one that is cool, calm, and collected because knowledge is power. When you have accurate financial knowledge about your business, you can steer its course into calmer and more prosperous waters as well as take advantage of opportunities that present themselves.

The bottom line – You can successfully manage your business finances if you will practice GIGO and get your financial information system created and implemented. Contact West Company today and schedule an appointment with an advisor who can help you understand chart of accounts, create a profit and loss statement, and replace any “garbage out” with sound financial knowledge improving your decision-making. While our SBDC business advisors are busy mastering the use of ProfitCents, we can help you get prepared to take full advantage of its potential for your business. Remember GIGO!

We have some new tools to help our clients make better business decisions in the coming year!

2010-12-10T10:27:00.000-08:00

By Heather Gurewitz
Mendocino Women's Business Center Director

The holidays are a busy time for our clients. People seem to be putting their business plans on hold or working hard making those last end of the year sales. Which, I have to say is great, because it leaves me some time to investigate some of the resources that are "at our fingertips." I learned about a lot of great things at the Association of Small Business Development Centers' Conference back in September, but with all of the classes and training, I haven't had a chance to investigate further...until now!

By far the most exciting thing I have come across yet, is an online tool that was recently made available to California Small Business Development Centers (SBDC) called ProfitCents. Created by Sageworks, this is an online information system that provides industry specific financial information based on industry codes (NAICS).

In plain English, that means:

We can perform an industry specific business analysis for our clients by comparing their finances to other businesses in their industry across the nation. It also means that when someone is starting a business we can use up-to-date information to help them figure out if their projections are reasonable compared to other businesses.

Accessing data is only part of what we get from ProfitCents. The system has some very advanced financial analysis tools that allow us to look at the operating model of the business and determine how changes will affect profits and cash flow by creating a variety of different scenarios.

So, how does this all help the business owner?

Example: If a business owner feels that they are always low on cash and have high debt financing, we can take their information from their profit and loss statement and their balance sheet and compare them to other businesses in the industry to find out what areas might be potential for improved performance. Should they be reducing inventory turn days? Should they be collecting accounts receivable faster? Should they increase their pricing? Then we can create projections for the business where we can see the impacts of these actions.

I should note that we have always created projections for our clients and helped them to look at all these factors, but now, with ProfitCents we are able to offer a much more sophisticated system. Also, with the industry data, we can figure out if the assumptions are realistic. For example, if we determine that the business needs to increase their profit margin by 10%, we can look at the other businesses in the industry and compare the average profit margin.

The bottom line...

We have some REALLY cool new tools to help our clients make better business decisions in the coming year!

More information on the availability of ProfitCents will be available in late January, 2011.

"No Business is an Island"

2010-12-03T14:06:00.000-08:00

by Heather Gurewitz
WBC Director

I had a great consult with a client the other day, at the end she really understood what she needed to do in order to turn her business around. Unfortunately, it was so empowering for her that she decided she didn't need any help going through the process. I have to say, I was not comfortable with that conclusion.

The major issue for this client was that her pricing model was completely out of date and that she had never analyzed her cost of goods. She was a great technician, but she has no business training and what she knows, she knows from having done it. When I called to follow up she thanked me for my help and expressed her gratitude for my assistance, but made it clear, she didn't need any help.

Most of the business owners that come to see us are bright and enterprising people, however they sometimes lack financial management skills, mainly because they have never taken business classes. Now, people can figure out what they want to charge on their own, but really, if it were me, I would want someone who had the knowledge and tools to help me figure out exactly how much to change my prices. While it sounds simple changing pricing can be tricky, if you don't raise your prices enough you may not solve your cash/profit issues. Or, if you raise them too much you may end up shrinking your client base, and nullify the change. So, while it sounds simple, "I'll just raise my prices," really it requires maintaining a delicate balance which requires some serious analysis. A "knee-jerk" price increase or decrease could cause your business a lot more trouble than it solves.

When West Company consultants look at this issue with our clients, we use our break-even analysis tools, profit and loss projections, cash flow projections, and a number of other tools to understand the implications of changes to the pricing model. We look at several options and we also work with our clients to make sure they understand the new sales goals they need to meet based on the decisions they make.

The economy is changing and this may require revising the pricing model your business is using, and while I often joke about being a "holistic business healer," the truth is, to determine the right pricing for your business, you need to look at all the effects of those changes, and it is best to do that before you actually make them. Not to mention, West Company offers consulting by qualified professionals at no cost to the individual (thanks to the Small Business Administration, the County of Mendocino, and the City of Fort Bragg). So, when you are taking a major risk with your business why a neutral outside opinion can help you make a more strategic and effective decision by working with an advisor through West Company, host of the Mendocino Small Business Development Center and the Women's Business Center.

The Joy of My Job

2010-11-19T22:14:00.000-08:00

By Loyd Hambrick
Chief Operating Officer

A privilege - Today I had the opportunity to do something few people have the privilege to do and the results are the reason I do what I do. For the past several months, I have been working with an individual committed to pursuing a dream of starting a business; today was the first meeting with potential lenders. Many don’t realize the work that must be completed prior to that first meeting and Joe (not his real name) was no different. What is unique is his commitment and his teachable spirit.

The plan - The first drafting of his business plan was destined for the circular file as it required a great deal of work from the reader, in this case a lender, to find any reason to support the plan. I’m sure it wasn’t easy for Joe to hear my comments and suggestions but he was extremely teachable, a trait absolutely necessary for the process of business consulting to work, and he went back to work. Eager to make changes in his approach, he took the instruction I gave and came back with a totally different focus in his plan. There were still several changes that needed to be made and I’m sure Joe wondered what he had gotten himself into, but he never backed down. In addition to seeking help from West Company, Joe sought out industry-specific counsel because though he is experienced in the industry, he recognized he doesn’t know it all. Working many times late into the night, Joe produced a plan worthy of submittal for loan consideration.

The meeting – Having the opportunity to sit alongside someone willing to dream and fight for his dream is truly an honor. Listening to Joe answer the many questions asked by four different lenders, it was evident he had done his research and was confident with his plan but then I knew that already. I was very glad I had been honest with him through our many sessions, had insisted he be confident with his plan, and that his projections were based on reality and not some pie-in-the-sky belief. I remember and shared with the committee how Joe’s realization that these projections translated into his ability to pay his bills and support his family of five drove his desire to "get real". Every question the lenders asked, and there were many, Joe did not hesitate and always had a good sound answer. It was great fun to watch!

The result – It is a great feeling to walk out of a potentially disappointing meeting confident in the performance! After receiving a unanimous decision from the committee to move forward with underwriting, we were both on cloud nine. I encouraged Joe, “We still have a long way to go, but you should celebrate the accomplishment of this goal! You have done a very good job!” Today’s mission was not for his plan to be approved but rather submitted for underwriting and that is exactly what happened!

The joy – I have several times sat in front of lenders and weathered the barrage of questions; having the opportunity to support someone daring to dream is much rarer and a feeling I will never forget. I am grateful for Joe’s teachable spirit and his willingness to allow me to help. Thanks, Joe. Stay tuned for further updates and the Grand Opening!

So many books to choose from...

2010-11-10T15:39:00.000-08:00

by Heather Gurewitz
Mendocino Women's Business Center Director

One of West Company's blog reader sent us the following question:

There are so many business books out there, how can an enterprising person tell which ones are worth their time? What are the common denominators of a good business book?

Unfortunately, there is no easy answer to this question. As they say, "You can't judge a book by its cover." However, the following could be used to decide if a business book is right for you:

Avoid: Books that put easy and rich in the same sentence. Anyone promising easy riches or easy steps is probably full of it (and I don't mean riches).

Look for: Books that have specific strategies to help trouble shoot the problem you are trying to solve. Always look at the table of contents and see if it looks like it will address your interests. If they have worksheets all the better. Some even come with compact discs with templates that can help you apply the techniques discussed.

Avoid: Books that are overly technical for your knowledge base.

Look for: books that you will enjoy reading. If you are thinking about buying a book, open to the first page of chapter one, and start reading. If you are lost by the end of the page, it may not be right for you. And hey, if you spend a lot of time on the road, you may want to think about the audio version. Personally, I love audio books, mainly because I can drink a cup of tea, work on a jigsaw puzzle, and still absorb information. I still recommend previewing the book. Some of the best books have the worst audio voice recordings. Make sure it's tolerable.

Avoid: books that offer free money or grant sources for small business. Those are most definitely scams and a waste of money.

Look for: some of the classics like "Seven Habits of Highly Successful People," "Getting to Yes," or "Guerilla Marketing." These books have been sparking innovation in business for years. Or if you are looking for something with specific information, Nolo Press makes a number of (usually thicker and dryer) books about the legal aspects of starting and running a business. If you are looking for a good book on social media and viral marketing, check out "The New Rules of Marketing and PR" by David Meerman Scott or "The Power of Pull" by Hagel, Brown, and Davison.

Avoid: Books with big pictures of the author on the cover. (Note: This is questionable advice, but I always follow this rule. Again, this is my opinion and not that of West Company or the SBA, the WBC or SBDC. And in all honesty I do have a couple of really good business books with big old faces on them).

Finally: Don't spend money on something you don't actually have time to read.

West Company invests a lot of our resources into keeping up with trends, acquiring information, and developing workshops so that instead of spending months getting half way through a business book, you can take a West Company workshop and get the same information in 3 hours.

Of course there are some cases when that very special book is just what you need, get it from a local and independent book store!

Revelations from Fall Cleaning

2010-10-27T15:10:00.000-07:00

by Heather Gurewitz
Mendocino Women's Business Center Director

Pamela Patterson (2000),
then Biz Dev. Manager.,current CEO

If you've been to the coast office in the last couple of days you may have noticed that we have done some furniture re-organizing. Through this process I ended up cleaning out a cabinet that I have been avoiding for a long time. Now, I am not much for cleaning, but this turned out to be a lot of fun, as the cabinet was like a journey through the history of West Company. We found photographs of the re-dedication of the Women's Business Center back in 2000 as well as the "Advancing the Status of Women Award" presented to West Company on April 27, 1997 by Soroptomists International.

Joy Calonico(2000), then WBC Director
current SBDC consultant

I was still working on my undergraduate degree in 1997,so thinking about all the people who have worked for West Company over the last 22 years creating an organization that does so much for our community makes me feel proud to be a part of it.

West Company has changed and expanded since the old days when West was actually an acronym. Today, West Company continues to serve male and female micro-entrepreneurs, but, as the Small Business Development Center, West Company provides a higher level of service to existing businesses looking to grow. As an organization we have accumulated a vast body of knowledge over the last 22 years that we are able to share with our clients.

As the Women's Business Center Director and a community development professional I do what I do because I want to make a difference, and it is important to remember that the work I do isn't just about what I do with the clients I see now. West Company has been successfully implementing a grass roots approach to economic development for a long time and I am proud to be a part of it!

Reducing taxes by being prepared!

2010-10-20T16:55:00.001-07:00

By Loyd Hambrick
Chief Operating Officer

Do you want to pay less in taxes? Lots of help exists for self-employed individuals to better prepare themselves for tax time. It was noted during a recent webinar I attended on SETI, the Self Employment Tax Initiative, studies conducted by organizations supporting SETI indicated individuals who were prepared for tax time received on average 300% higher refunds from the IRS than those not prepared. Yep, that’s right, 300%. For those that are not aware, SETI was launched in 2005 by the Corporation for Enterprise Development (CFED) and according to their website, “The Corporation for Enterprise Development is a national nonprofit based in Washington, DC dedicated to expanding economic opportunity for low-income families and communities. The purpose of SETI is to demonstrate how local organizations can use the tax code to deliver essential business development and financial services to low-income entrepreneurs.” One of the greatest values this organization noted of SETI was the coaching and training they were able to offer self-employed individuals to better understand one of the most important documents for the self-employed, the Schedule C. Anyone earning a profit of at least $400 per year through self-employment, is required by law to complete and file a Schedule C which is simply a profit and loss statement in an IRS format. Fortunately, Mendocino County residents have a great resource at their disposal for the same type of training and coaching. West Company, the Mendocino Small Business Development Center and Women’s Business Center, offers free consulting as well as workshops that enable small business and microenterprises to keep more of their money, and who doesn’t want to do that? The clearer understanding a business owner has of Schedule C, the more they can use the document to their advantage. For instance, let’s say you are self-employed and you have one or more employees. As a good business owner, you want to reward your employees for a job well-done by buying them lunch let’s say once-a-month. Under Schedule C guidelines, legitimate business meals and entertainment are deductible but only at fifty percent. Knowing this, a business owner can devise a better incentive program that could be classified as an acceptable expense but deductible at one-hundred percent. Though training such as West Company offers is not a substitute for accounting advice from a licensed CPA, it goes a long way in making that advice much more valuable. The more prepared a business owner is when seeking the services of a CPA, the less time required of the CPA and therefore the smaller bill a business owner must pay. If you would like more information on how you can be better prepared for tax season, contact West Company at (707) 467-5931 for inland regions or (707) 964-7571 for coastal region or visit us online at www.westcompany.org.

More on Free Marketing...

2010-10-18T13:35:00.000-07:00

By Heather Gurewitz,
WBC Director

Okay, let's be honest. While there are some who are technologically challenged, really, "doing Facebook" isn't rocket science. If you have some fingers and a computer with internet (or a Smart Phone and two thumbs) you can Facebook pretty easily. I would even venture to say, it's easier than email. So, why do people have trouble with Facebook? Now, this is just a theory, but I believe it is because there is a difference between being able to post and being able to post something that generates sales.

Well, the first thing to note is that if you have a business then it is beyond recommended that you have some sort of a web presence for your business. The good news, is that you can do it for free and still have it be professional.

The second thing to note is that "Zero-Budget Marketing" is more than simply social networking. In "Zero-Budget Marketing" we will cover Facebook, blogs, what I call Google's "free zone", Tweeting, and how to actually do all of these things. We will also cover the most important question of all (drum roll please) WHY? Why do these things? How will they benefit my business?

When you invest time or money into marketing it should generate sales (and hopefully profit) for your business. "Zero-Budget Marketing" isn't just about using the free marketing tools of the web, it's about maximizing your profit from those tools.

Zero Budget Marketing is on Tuesday, October 19th from 5:30-8:30 at West Company in Fort Bragg. There are only a few spaces left, so call 964-7571 today if you are interested.

Reduce your stress level!

2010-10-05T09:09:00.000-07:00

by Heather Gurewitz
Mendocino Women's Business Center Director

Last Saturday, I found myself sitting at a table promoting West Company at the Health and Wellness Fair at Mendocino Coast District Hospital. At first it felt like an odd fit, though I often tell people that "we help people have healthy businesses." However, the longer I was there, the more I realized how important West Company is for helping people have healthier lives. In 2006 (when the economy was still good) do you know what the leading cause of stress was? FINANCES! (see http://ezinearticles.com/?7-Leading-Causes-of-Stress&id=473303 for more info)

Now, you can spend all of the money you are stressing about on acupuncture, massages, hypnotherapy, aromatherapy, and mediation classes, but what it comes down to, is if you want to reduce your stress level, you have to work on the real problem, improving your finances.

So no, West Company doesn't help relieve stress, but we help solve the problems that cause it! We do this by helping our clients work on their budgeting, improving their efficiency, and increasing their sales.

If you are self-employed or have a small service based business, such as landscaping, contracting, massage therapy, a beauty salon, or another business in which time is your main commodity, West Company is offering a special course, "The Price is Right?" for people who are already in business to take a good look at their current pricing and financial model, and to come up with tools to improve it.

"The Price is Right?" will take place on October 12th from 5:30-8:30 pm at West Company in Fort Bragg. The goal of this workshop is for participants to walk away with some clear actions to increase the profitability of the business. We will be looking at case studies, doing activities, and discussing how to revise the business financial model to increase profitability.

But wait, it doesn't stop there! (I konw, I sound like an infomercial) Once we get the "house" in order, and come up with some clear financial goals, "Zero Budget Marketing" will be offered on October 19th, 5:30-8:30 pm, to help you increase sales without increasing (and possibly decreasing) your marketing budget!

For more information contact our office at 964-7571 or sign up online by clicking here.

Keeping the Balance

2010-10-01T15:53:00.000-07:00

By Heather Gurewitz
Mendocino Women's Business Center Director

No matter what we do, or how good we are at what we do, there is always a need for refreshers, updates, learning time. That's what the annual Association for Small Business Development Center's Conference is for West Company staff. For one week each year, our staff travel to the destination in which hundreds of business consultants from across the country share strategies, secrets, and tips for improving our ability to serve our clients.

Over the three days of training, we have to choose from marketing, finance, accounting, management, and leadership courses offered by various centers. My strategy going in is to find the workshops that hit my weak spots. For example, I steer clear of social media marketing workshops, and I bee-line for the accounting. However, after 6 hours of taxes, balance sheets, and cash flows the first day, I realized that I was hitting to heavy in one area and I had to remind myself of what I teach my clients:

You have to think holistically about business, the most key part of business is not finance, marketing, or product, its BALANCE. You may be great a making formulas, adding numbers, and subtracting numbers, but if you forget the marketing piece, you won't have any numbers to mess with. Conversely, if you are a cracker-jack marketer you can have millions of dollars in sales and have zero profits. You can even end up with net losses. So, the big reminder to me of the conference, is that there is never a silver bullet, for me or for my clients. It's an integrated process, and the more you put yourself off balance, the more you leave your business at risk of failure.

As for me, I had to mix it up a bit. So while I definitely got some great new tools to use in financial management, my brain is now chalk full of market data, decision making strategies, and all kinds of facts and figures to help Mendocino Coast businesses and start ups. Over the next few blog posts I will be following up with topics inspired by the ASBDC conference.

Critical Facebooking for the Biz

2010-09-15T19:38:00.000-07:00

By Heather Gurewitz
Mendocino Women's Business Center Director

Do you tell all your clients and customers how much you drank last weekend? or about your bad break up with a significant other? or about your favorite passage in the bible? If you are using Facebook to promote your business, you need to present a professional image. Depending on your business, personal, religious, or political views MAY not be appropriate. For example, if you are a Christian book store, quoting bible phrases and talking about your spiritual preferences would be a great way to promote your business. But, if you are a local eatery, a mechanic, or another business that serves customers from all religious points of view, you may be alienating some of your clientele. If they delete your posts or have you as a "do not show" you can no longer market to them through Facebook. This goes for political beliefs as well or anything else considered controversial.

Personally, I have two Facebook pages, one for my personal life and one as the Mendocino WBC Director. If you have two separate emails, you can do the same. I keep my personal stuff personal, and my business profile professional. Occasionally on my WBC Facebook Page I see someone write something that I want to comment on, and every time I have to ask myself: "Is it appropriate?" I use the same guidelines to answer this question as I do for what kind of topics I will discuss with people I meet at chamber mixers or an event where I am attending in my professional capacity. Additionally, if I find that some of my professional contacts are writing things that I feel are inappropriate for my professional Facebook page, I mark them as "do not show."

If you are having trouble keeping your business Facebook separate from your personal Facebook account and need help determining your criteria, you should consider giving West Company a call. We can help you take a holistic look at your marketing and decide whether Facebook is an asset or a liability for your business.

Learn more about marketing your business with free web tools at our Zero Budget Marketing Class in Fort Bragg on October 19th from 5:30-8:30pm. Geared toward the service-based business, we will cover blogs, facebook, video and more!

Puttin' on the Green

2010-09-09T11:06:00.000-07:00

By Heather Gurewitz
Mendocino Women's Business Center Director

Sustainable business is definitely on my list of personal interests. And by sustainable, I mean businesses that meet the triple bottom line. For those who don't have "sustainability" ingrained into their consciousness, the triple bottom line refers to a society, community, business, or even person, that focuses on balancing financial stability without sacrificing the health of the environment nor social responsibility. Sustainability is something that we as individuals can work towards one day at a time through the lifestyle choices that me make. As businesses, we can work toward sustainability in the suppliers we chose and the practices we use. Sustainability is also something that we can work towards as cities, counties, states, and nations through the policies and laws that we create and enforce.

As an organization, West Company supports all businesses, and focuses on how small and independently owned businesses can be financially sustainable. Consequently supporting social sustainability by creating a strong community with self-sufficiency and wealth. It's up to our clients whether they feel that they wish to pursue the "green" side of the equation, though a strong percentage of them do.

West Company doesn't tell clients what their missions should be, and we don't judge ideas. But we do provide learning opportunities for them to learn about the opportunities available to them. That is one of the reasons we have been helping organize "The North Coast Green Summit" on Thursday, September 16th, 2010 from 8:30am - 5:00pm. It will be a day of education and networking for individuals, businesses, and community leaders interested in learning more about how they can go green.

For more information visit the: http://www.northcoastgreen.org/

We hope to see you there!

Is local business the key to a strong local economy or an income stream for credit card companies?

2010-09-02T13:58:00.000-07:00

by Heather Gurewitz
Mendocino WBC Director

Let's look at two scenarios...

1. Pamela opens a retail store. She does not write a business plan, she has no strategy, and she finances most of her expenses with credit cards. Several years later she owes tens of thousands on her credit cards and is still purchasing inventory on credit. Every penny of profit she makes goes directly to paying the interest on her credit card debt. She never has profit to take home because the interest on her credit cards has become so enormous that she can't possibly make enough profit to pay down the debts. She can no longer afford to support any of the other stores in town (unless she uses her personal credit cards) so every dollar spent in her store goes to the suppliers and high interest predatory lenders. Most of her days are devoted to dodging calls from collection agents. She eventually files bankruptcy, closes the store, and gets a job at the burger joint down the street.

2. Pamela opens a retail store. Before doing so, she takes the Building a Better Business Series with West Company and learns how to start and manage a small business. Then, with the assistance of a West Company consultant she writes a business plan that she uses to help her stay on track. Because she has such a great plan she is able to get a micro-loan from an alternative financing organization and she is soon in her own shop. Pamela continues to monitor her financial situation and adjusts her business to the existing conditions. She uses conservative numbers and keeps track of her inventory so that she knows what and how much to buy. She also budgeted a monthly savings amount in case of the tough times. Pamela's prices aren't the lowest, but they are set based on her profit goals and realistic expenses, so that she has a profit that she can take home and use to pay for her personal living expenses, and to support other locally owned stores in the community. She even has enough extra to support community organizations through donations and event contributions. If she continues on this path she expects to hire an employee and create a new job in the community by the end of the next year.

Building our local economy relies on healthy financial practices

Having a healthy business isn't just good for the owner, it's good for the whole community. Many people have a strong desire to "work for themselves." This means building a financial model for your business that works for you. West Company consultants are here to assist entrepreneurs and business owners come up with a strong financial model to strengthen local businesses creating self sufficiency and wealth in our community.

Are you combatting your business image?

2010-08-24T16:12:00.000-07:00

by Heather Gurewitz
Mendocino Women's Business Center Director

Most businesses spend years developing their image, and just when their business is ready to grow, they find themselves struggling with their original brand. West Company is a good example, initially the Women's Economic Self Sufficiency Training Center, we are constantly having to use our marketing materials to let potential clients know that we not only serve men as well as women, but that we also offer our consulting services to higher level businesses. While we continue to provide services as host to the Mendocino Women's Business Center (WBC), West Company is also host to the Mendocino Small Business Development Center (SBDC), a nationwide program sponsored by the Small Business Administration (SBA) that provides technical assistance to start-up and existing businesses. One of the main goals of the SBDC program is to create jobs and economic impacts in our local economy. There are no income requirements to participate in this program, and while there are fee for trainings, one-on-one consulting is covered by our funders.

Since West Company has expanded services we have been actively marketing our new image as a full-service business assistance organization through a re-vamped website, a Facebook presence, and of course the new and improved West Company blogspot. We also do a lot of on-the-ground marketing by developing relationships and connections with potential clients through chamber mixers, community events, and partnerships with other organizations. Marketing and media technology is changing fast. Does anyone know what will be the next Facebook? West Company stays on top of marketing changes and trends, not only for our own purposes of reaching our clients, but so that we can assist our clients to stay ahead of the curve.

The easy way up?

2010-08-12T09:40:00.000-07:00

By Heather Gurewitz
Mendocino Women's Business Center Director

Once upon a time I was a trail guide in Juneau, Alaska, surrounded by mountains that started at sea level and rose to as low as 3,000 feet in a matter of 1- 2 miles. I remember my first summer there was more than one instance of someone needing to be rescued by helicopters or rescue teams due to unsuspecting tourists climbing up the "hills" with no maps, instructions, or guides. There were a few who made it up, but usually with lots of cuts and bruises from the climb. Most would get stuck on the cliffs and ledges. On the other hand, tourists that had guides or maps and appropriate supplies would safely make it up and down these same mountains. The routes may have been longer, seemingly more difficult, and not as immediately apparent, but people who planned a safe route made it up without broken limbs or hypothermia.

I see people making similar choices in business. There are some that look for the easiest way, but without calculating risk and examining the venture, and there are those that find a path and work hard at building something secure and long lasting. Today's economy is about as treacherous as the mountains in Juneau, but that doesn't mean that there aren't possible ways of creating successful businesses. It does mean, that it requires a more efficient model with a well thought out plan.

Much like scaling a mountain, starting a business is a trek and everyone has their own challenges. Depending on their personal and financial goals, and the type of business, the level of difficulty varies. What West Company does (metaphorically speaking) is help people develop a map of their mountain. We help identify the hazards, the safe routes, and the resources needed for a successful and safe journey. Now, of course, no one knows the future, so we can't predict the unpredictable, but we do help people develop their plans to minimize potential risk.

If you are starting or buying a business in Mendocino or Glenn Counties, you should contact us today to find out about classes and trainings starting this fall. You can also apply online by clicking here!

West Company Fall Offerings on the Coast

2010-08-05T10:11:00.000-07:00

Can't view our video on our blog? Visit our YouTube version.

The Toughest Thing....

2010-08-03T09:43:00.000-07:00

by Heather Gurewitz
Mendocino Women's Business Center Director for West Company

The other day my boss Pamela asked me, “What the toughest thing about your job?” I had to think about it, but after some thought I realized that the toughest part for me, is the “dream crusher” part. Starting a business or becoming self-employed can be a great thing, but it is not an easy thing. When people come to see me it is my job to help them look at the real issues they will have to face. I have to ask them the tough questions. That means that not everyone likes to hear what I have to say. True, I have many clients that are eternally grateful and appreciative for the knowledge I have shared, which in turn saves them from interminable debt and financial distress, but others, well, they don’t always come back.

Don’t get me wrong, I am a very strong advocate for self-employment and micro-enterprise. Why else would I do what I do? But, there are well thought out ventures, and there are not so well thought out ventures. Choosing self-employment or owning your own business can be extremely rewarding, but it is definitely NOT the easy route.

I grew up in an entrepreneurial household; my father started his own business in 1965 and still runs it today, having grown it from his bedroom to a 5,000 sq. ft. factory in Los Angeles. This means that in addition to my education and professional training, I have a firsthand understanding of what being in business means for your personal and family life. As an employed person I make it a point to try not to take my work home with me, but if you are the business owner, it goes where you go. It will have a huge effect on your personal life.

That’s why West Company always starts with a personal readiness in the first session of our series, “Building a Better Business” series, “Got What it Takes?” In this workshop we cover time management, personal finance, and what it really means to be a business owner, myths debunked. The first time I taught this class I had a student that had previously owned her own business for many years, and honestly, I was terrified; what if she stood up and said, “She’s full of it!” That did not happen. As a matter of fact, the woman came up to me after the workshop and said, “I wish I had taken this class 20 years ago!”

“Got What It Takes” is a three hour intensive look at how owning a business will change your personal life, and whether or not you are ready for that change. This class will be held in Fort Bragg on August 24th from 5:30-8:30pm, in Ukiah on August 31st from 1-4pm, and in Willits from 5-8pm. Click here for more information on West Company workshops.

Out of the West - Entrepreneurship and Innovation

2009-10-06T10:47:00.000-07:00

The struggle to create economically sustainable communities in Mendocino County, as in rural communities throughout the United States, goes on. Increasingly, rural places that are being successful are turning to traditional American entrepreneurship.

That is, they are focusing on locally owned and operated companies that include small manufacturers, wholesalers, retailers, and service companies. These companies operate in diverse sectors from the arts - that includes fine arts and crafts and the entertainment arts - to renewable energy production and so many in between, such as food production, value added food processing, alternative health care services, eco-tourism....oh my, this list is so Mendocino County....and yet just a start.

This entrepreneurship strategy requires that a community look within to its assets - natural and human; that it imagines the mix of products and services that it wants; that it supports local businesses that provide those products and services - and that those companies innovate as demanded by the times.

Marquette, Michigan on Lake Superior in the Upper Peninsula of Michigan (pop.20,000) has such a company. It is a department store that was founded in the late 1800's, survived more than a century that saw both upturns and downturns, including several recessions and the Great Depression, and then went online in 1997. In an interview with NPR, the VP of Marketing for Getz's Department Store responded to the question, "How do you account for Getz's survival?" with, "A lot of loyalty from our local customers. You know, our community is not large and we're prould of this. We have a lot of community members that shop here and shop locally. We really treat people like they're family when they come in."

And then, the discussion turned to reveal that 20% of the company's business is walk-in traffic and 80% is online. This is a company that innovated, kept its storefront for the local folks and created new jobs to cash in on the 'new economy'.

Some rural folks actually like simple living and declare that they prefer a small community that may not have a 'copy' of every possible chain store or restaurant that so many U.S. towns and cities have. Their retort is they prefer to be unique, to have their own 'flavor' as it were. Sounds like Marquette, Michigan - sounds like Mendocino County.

From the Rural Entrepreneurship Newsletter: The Flipside of Brain Drain

2009-10-01T13:48:00.000-07:00

News and Economic Developments from the Ground Up

Vol. 9 by Sheilah Rogers September, 2009

From the Rural Entrepreneurship Newsletter: The Flipside of Brain Drain

In community conversations held by the US Department of Agriculture four years ago, the top-ranked issue across the nation was the exodus of youth, and thus the erosion of people and talent, from rural communities. Often referred to as "brain drain" in the major media, young people in McCook, Nebraska have given this expression a new, healthier twist. "When we talk about brain drain, we are referring to young people in focus groups downloading as many ideas as possible about how to improve the community, especially in relationship to youth interests," explains Dan McCarville, one of the progenitors of the McCook Youth League. Brain drain, McCook-style, may be the next best tool for reversing outmigration. In our new story, The Flipside of Brain Drain, written by Karen Dabson, you can learn more about how youth in McCook, through their own efforts, are generating activities for young people, gaining the interest and support of the town establishment, and making plans to stay or return as adults. Go to http://www.energizingentrepreneurs.org/content/cr.php?id=2&sel=1.

Baby Boom Migration and Rural America

The Economic Research Service (ERS) of USDA recently released a very important new study on migration and its potential impacts on rural America. Our team at the RUPRI Center for Rural Entrepreneurship has spent quite a bit of time digesting this research and its implications for other related migration research. If you are interested in this topic, we strongly recommend that you take a look at this work by John Cromartie (ERS) and Peter Nelson (Middlebury College), www.ers.usda.gov/Publications/ERR79/ERR79.pdf. The focus of this research is on America's Baby Boom Generation (typically Americans born between 1946 and 1964) and where they are going as they move from "work" to "retirement." Bottom line, this research is suggesting that the numbers of Boomers moving to non-adjacent rural counties will rise from 277,000 in the 90s to 362,000 in this decade and to 383,000 in the 2010-2020 decade. The implications of this trend are huge for rural America. Those likely to be moving to rural communities will tend to be healthier, better educated, better networked to the new economy and wealthier. They will likely bring many assets. While the research observes that most will be moving to "high amenity" communities where public lands, mountains, water and other assets abound, many will also be moving to former home regions and hometowns. Other research by the University of Nebraska and Iowa State University shows a strong preference for moving to places where there are "familiar" relationships. Our theory is that communities that recognize and work this opportunity can benefit from this migration trend. If you'd like to know more about how the Center views this migration trend as an opportunity for rural communities, contact Don Macke (don@e2mail.org).

2009-09-30T16:38:00.000-07:00

Rural Matters©

News and Economic Developments from the Ground Up

Vol. 8 by Sheilah Rogers August, 2009

From “The New Crucible of Innovation”, a presentation by Brian Dabson/RUPRI to the Federal Reserve Bank of Kansas City in April, 2009

This is an extraordinary time for rural America to make new contributions to national prosperity in four main areas:

Growing and processing food – quantity, quality, and sustainability
Energy independence – extractive and renewable
Realizing economic value of nature’s services - stewardship
Protecting and managing rural experiences – natural, cultural

And the three powerful strategies:

Regionalism – cooperation and collaboration across jurisdictions, sectors
Assets – building on unique strengths, triple bottom line
Entrepreneurship – conversion of assets into economic opportunity

Editorial Comment: The ideas expressed above read like economic developments in Mendocino County during recent decades. An example of each in order:

Farmer’s Markets throughout the county are supplied largely by local small farms and ranches and the diversity of products is growing
Feasibility studies are being conducted to assess the potential for biomass and pellet manufacturing
If initiated these technologies will contribute to fire safety and forest stewardship
Walking trails along the coast and in the Ukiah Valley continue to be developed
The Six Targets of Opportunity are recognized as job growth areas in a region that includes Humboldt, Del Norte, Siskiyou, Trinity and Mendocino Counties
Transition to a green wine industry continues to grow
Entrepreneurship is alive and well in the county despite rather modest resources to support fledgling entrepreneurs – small and microbusinesses are clearly the economic mainstay of rural communities; in Mendocino County, they account for 85% of the jobs

Rural Business Enterprise Grants (RBEG) Program:
The RBEG program provides grants for rural projects that finance and facilitate development of small and emerging rural businesses. To assist with business development, RBEGs may fund a broad array of activities. The House and Senate included $38.7 million in its 2010 budget for the RBEG program, the same as President Obama's budget request.

Artisans As An Economic Force

2009-09-01T15:57:00.000-07:00

It is not unusual for rural American communities to be defined by artisan activity - think Taos, New Mexico or Saugatuck, Michigan or Berea, Kentucky. For goodness sake, think Mendocino County, California. Fine artists and crafters along with performing artists abound here.

We can wonder why....maybe it's because of the rich heritage and inspirational beauty of the place. Maybe it's because artists want room to move and breathe and see the sunset and the moonrise and a sky full of stars - we've got that. Maybe it's because there aren't that many jobs here. Indeed, many Mendocino County artists are intent on making a living or at least adding to family income through their arts.

So, it has been interesting to read a research report from the Institute for the Future that describes the re-emergence of artisans as an economic force in America www.intuit.com/futureofsmallbusiness. An introduction to the report can be found in the June edition of Rural Matters in the newsletter section of this website.

Once again, Mendocino County is ahead of the headlines and will certainly be a key player in a 21st Century partnership of the arts and economic activitiy. The report cites the rapid growth of small and personal (one person) businesses and imagines that artisans will create new organizational structures that provide greater opportunities for work-life balance.

The relevance to Mendocino County artisans continues with the recognition that small businesses, because of their size and agility, are well positioned to serve niche markets - those highly targeted, customized products that artisans create for customers with specific requirements. There are indicators that small business and large corporations will colloborate more in areas such as sales, marketing and innovation. Indeed, this level of activity will continue to grow as big business, yes, even corporations, look outside for help with innovation.

The juxtaposition of this thinking with the naming of Niche Manufacturing as one of the six industrial Targets of Opportunity on the North Coast - those industries that show the most promise for job and firm growth, wage increases, regional competitiveness and career potential - deserves further discusssion. This looks like real economic opportunity from a base that we already have - the artisan base. Further thoughts are welcome.

Out of the West

2009-05-20T13:45:00.000-07:00

West Company wants to open a dialogue with Mendocino County entrepreneurs. For our part, we propose to bring forward information about what other rural American communities are doing to boost their economies. Several different sources tell us that 2/3 of the jobs created since 1990 were created by small and micro entrepreneurs. That is definitely true in Mendocino County. And yes, these are hard times. But there is good news as well. The Obama Administration specifically includes investment in small and microbusiness in its rural agenda. More on that as we go.

Then, we want to hear from you about your specific needs during this recession and looking into the future beyond the recession. What kinds of tools and strategies could help build and if you choose, grow your business?

We look forward to hearing what you are doing to ‘green’ your business. Let’s discuss what ‘green’ means anyway. At the May 5, 2009 North Coast Green Opportunities Conference in Ukiah, the concept of sustainable was a strong candidate for what we are talking about when we talk about green. Throughout the day, discussions moved from the challenges Californians face to opportunities for Mendocino County entrepreneurs to create solutions to those challenges – like food and energy security and stewardship of natural systems.

Speakers illustrated current consumption of energy, the need to achieve energy security and the mandate of the Global Warming Solutions Act of 2006 to reduce 1990 carbon emissions by 80% in 2050. Attendees heard about the potential to implement municipal clean energy programs under California AB 811. That program is not in Mendocino County yet, but it could be and it would finance energy upgrades through a loan to be paid back over 10-20 years via property tax bills. Further financing is now available through President Obama’s American Recovery and Reinvestment Act, commonly known as the Stimulus Bill. Additional, financial and technical resources are available through the State of California. West Company encourages you to research these resources at www.RECOVERY.gov and www.Recovery.ca.gov. Maybe there is something there for your business.

So let’s get going. Let’s share the good ideas about building sustainable businesses and then please tell West Company what specific needs you have right now during this recession.