STARTING A BUSINESS
QUESTION:
What are the statistics on the number of start-ups that actually make it?
ANSWER:
Despite a persistent myth about success of new ventures, a number
of recent studies show that 60-70% of new ventures that have launched
five years ago are still in operation. That is the good news! Only 10%
of those who try to launch a business will actually make it to opening
day! Hence, the challenge for the entrepreneur is in launching the
business more so than keeping it going once the doors are opened.
QUESTION:
Can you give me some operational issues that would help me start my business with limited capital?
ANSWER:
Yes, many businesses are started using others as sources (businesses
who add value to your products or services), Using this technique saves
your start-up capital. For example, if you are a metal fabricator, you
can have other fabricators shear the metal, brake it and so one. Once
you get large enough and accumulate enough capital then you can go
ahead and purchase this equipment. With this new equipment you can
provide a similar service to your competitors to help pay for your
equipment. Don't worry about helping your competitor, you are both
benefiting against other competitors by spreading your costs
QUESTION:
What are the operational issues in finding a location for my business?
ANSWER:
First, your location is driven by your customer, is your business a
convenience business (need traffic), is your business a service
business primarily with outside sales calls (you can put your business
anywhere as long as you can get to your customers quickly).
Second, how will this affect your overhead? Remember most
leases are based on the square feet that you lease, and the price per
square foot. You want to optimize this decision so that you do not pay
too much as most leases are for five years or more if you have a lot of
leasehold improvements or build-outs to get the facilities ready to use
(e. g. restaurant). To understand the significance of this decision,
consider a 2000 square foot building at $2 per square foot for 5 years
will cost you $240,000. Could you get by with 1000 square feet at a
less expense facility ($1.00 per square foot) or a cost of $60,000 for
5 years
Third, will this facility allow your plan to work over the
long term? Will you out grow it during the term, can you get out of the
lease, will the landlord maintain the value of the building, what are
your restrictions from Zoning, etc
RUNNING A BUSINESS
QUESTION:
I write business plans for startups and established businesses. What in you opinion, with the current economic conditions, is the outlook for a service like mine?
ANSWER:
It is interesting to note that the numbers of those who pursue self-employment do so in both good and bad economic times. During current conditions as we have now, more "necessity" entrepreneurs are seeking self-employment. Lack of job opportunities, job loss, or stagnation in career growth, will encourage those to seek self-employment as a need rather than a want. On the other hand, entrepreneurs who understand opportunity will look at the current economic conditions and conclude launching a business in the next 12-18 months couldn't be better. Competitors have been "shaken out" of the market or are having to cut back, making it hard for them to innovate. By engaging in the business launch process, entrepreneurs seeking opportunity will understand that launching now will position themselves well for the economic upturn.
So, writing business plans for startups and established businesses should be viable. But there are a number of steps you should take. First, build a webpage touting your services. Describe the business plans that you have completed (without client details) and include quotes from the client.
Identify a specific area of expertise that you have developed with your service (e.g. industry, stage of development, technology) with input on how you can craft a plan that will prepare businesses for upcoming economic growth. And yes, marketing related services is an opportunity as well. But make sure it is tied to your expertise, not marketing in general. That simply puts you in a large pact without much identity.
GROWING A BUSINESS
QUESTION:
What advice do you give entrepreneurs starting a new business?
ANSWER:
Fail Faster. Starting a new business is a trial and error process. You will learn more from your failures, if you are willing to embrace them, then from success, which you take for granted.
QUESTION:
What is the importance of a Business Plan?
ANSWER:
Developing a business plan forces you to ask and answer questions related to all aspects of your business, from accounting, to marketing, to sales and operation. It also provides a tool to measure your performance if you have quantified your goals and developed measurable action plans.
QUESTION:
What is the relationship between the Lyles Center and the Central Valley Business Incubator?
ANSWER:
The Lyles Center is a focal point for entrepreneurial activity in the Central Valley. It provides a variety of services and courses through their Entrepreneurial programs at CSU, Fresno at the undergraduate and graduate levels. The has a close working relationship with the Central Valley Business Incubator, (CVBI) who provides business development courses and consulting to assist companies in business planning and start up. CVBI also has space available to house you new businesses.
QUESTION:
What is the most important operations issue as I grow?
ANSWER:
That is easy — it will be people. Think of this, when you start a
business with minimum wage people, what makes you think these same
people can become the experts in each of your specialty areas such as
marketing, finance production. You want to show loyalty but you need to
be brutally honest for your sake and your employees. You need talent to
grow and you employee needs to a job that fits them long term.
BUSINESS DEVELOPMENT
QUESTION:
How can an emerging business overcome obstacles such as permitting, financing, etc.?
ANSWER:
Inventors and entrepreneurs are continually faced with obstacles
on the path to success. If this was not the case, anyone could succeed!
The best method for overcoming obstacles is to seek assistance and
create a network of entrepreneurs who are further along in the process
and can share information on how to overcome the obstacles.
QUESTION:
Are there any numerical tools that I can use in developing my operation?
ANSWER:
The two most important tools are cash flow (save your cash, use others
businesses cash when possible such as trade payables) and the other is
break-even analysis. The break-even separates fixed expense (overheads)
and variable expenses (those sensitive to sales growth). With this
tool, you can test many of your decisions for setting up your business
(buy equipment, fixed expense, source it to another businesses, a
variable cost) and when you will turn a profit.
BUSINESS PROBLEMS
QUESTION:
What is intellectual property?
ANSWER:
Intellectual Property is a set of intangible property rights, and includes patents, copyrights, trademarks and trade secrets. Intellectual Property involves the protection of ideas, expressions, formulas, or any other creation of the mind. Intellectual Property rights don't so much involve the right to do a thing, but the right to exclude others from doing that thing. In other words, Intellectual Property isn't so much a right to make, use, or sell your invention, but the right to stop others from making, using or selling it.
QUESTION:
What is patentable?
ANSWER:
The question of “what is patentable” is always important, and depends very much on the particular facts of your situation. Generally, United States patent law says that a patent may be obtained to protect an invention or inventive idea involving a new, useful and non-obvious process, machine, manufacture, or composition of matter, or any improvement thereof. The key here is that the invention must satisfy three criteria: novelty, utility, and non-obviousness.
An invention is novel if it is new. This means that novelty is lost once the invention is known or used by others in the United States. Keep in mind, though, that a new use for, or an improvement of, an old invention may satisfy the novelty requirement.
Utility requires that the invention have some beneficial use. If the invention is a machine, it has to work. If the invention is a game, it must entertain.
Finally, the invention can't be obvious to "one of ordinary skill in the art" relating to the invention. If the invention is "obvious,” then the patent application will be denied. This involves a very subjective analysis of the invention and the relevant industry, so it's a common area of dispute between inventors and the United States Patent and Trademark Office.
QUESTION:
What is a copyright?
ANSWER:
A copyright protects an original works of authorship, whether published or not, which is "fixed in a tangible medium of expression" — such as a book, a poem, software, a recipe, text on a website, music, a movie, a picture, choreography, or architectural works. Copyright protects the form of expression rather than the subject matter or idea. While the copyright (the right to copy) arises immediately upon creation, registration is necessary to enforce that right in court.
LOCAL BUSINESS SCENE
QUESTION:
Can you tell me which industries have good potential in the Valley, why do some industries prosper in the Valley, and what makes a business work in Fresno/Valley?
ANSWER:
The Central Valley of California is in the midst of change, both
social and economic. Change provides the opportunity for entrepreneurs
to enter the market and succeed at a higher rate than under conditions
of economic and social stability. Currently, the industries that offer
the most opportunity for growth in the Central Valley
are those related to water technology, food processing, tourism,
construction, logistics and distribution, health sciences, information
processing, and agile manufacturing. You can learn more about the
various industries and how they are organized at the website for the
Fresno Regional Jobs Initiative at www.fresnorji.org.
QUESTION:
How can I find information about what locations are better compared to other locations?
ANSWER:
Studies show that regional economic centers have a higher success
rate of new ventures than do urban and rural areas. Regional centers
are generally cities that are between 200,000 and 1 million in
population and are not contiguous to other urban centers. Of course,
the type of business one launches and the industry in which the
business is situated will have an impact on the choice of location.
QUESTION:
What are Valley consumers looking for?
ANSWER:
The Central Valley has long been recognized as a product test
site for national companies. With its high ethnic diversity, value
conscious buying, and willingness to try new products, the Valley
consumers are receptive to innovative services and product ideas.
However, the provider of such services and products must also
demonstrate the relationship between value and price.
LYLES CENTER
QUESTION:
Are you open to the public every day of the week?
ANSWER:
The Lyles Center is open Monday through Friday from 8am - 5pm.
QUESTION:
Who is eligible for services from the Lyles Center?
ANSWER:
The Lyles Center provides services to students, staff, and faculty at California State University, Fresno as well as members of the community. Some services are free and others require a fee.
MISC.
QUESTION:
I'm having much trouble on having employees do their job. I've tried giving incentives and I also allow them to earn tips. I've offered job promotion w/ wage increase, but at times the employees want more and more again. Also, they want to start doing
ANSWER:
Research on employee motivation suggests that both the employees themselves AND the employment context work in combination to influence motivation. The first challenge is trying to select employees who demonstrate high levels of motivation and conscientiousness (e.g., punctuality, following rules, attention to detail, committed to organizational goals) and then to reward and reinforce positive behaviors in your current employees (e.g., recognition, praise, tips, training opportunities, paid time off). Because you have tried some of these rewards without success, consider having an open and frank discussion with your current employees and ask them what incentives would be the most motivating to them. Ask them to participate with you in setting specific and challenging goals for their performance and choose an appropriate group or individual reward for reaching those goals.
