Success Story: Technology and Networking
Tech business founder leads company to new heights in Cape Girardeau
If the fictional character Roy Hobbs is "The Natural" in his chosen sport of baseball, then youthful Southeast Missouri entrepreneur Jason Eftink is definitely a natural in his chosen field.
As founder and CEO of the Cape Girardeau-based Technology and Networking Inc., Jason successfully faces challenges in the business world with the same determination he applies to the challenges of life.
Jason Eftink founded Technology and Networking 11 years ago in Scott City, where he and his brother, Shawn, started out as a two-man team.
In 11 years he has taken Technology and Networking from a two-man start-up to a vital and growing company with more than 30 employees. The firm offers sales and service in the areas of computer technology and telecommunications. Its client list covers a range of businesses, though it has a strong vertical focus on the banking industry.
"From the time I was in high school I always planned to start a business of some kind," muses the 33-year-old businessman.
Some of his relatives owned and operated businesses, so he had a first-hand view of success in private enterprise from role models who inspired him with dreams of his own business. However, life dealt Jason an extreme challenge to his entrepreneurial vision in 1994.
"At the age of 19 I was in a water skiing accident that left me paralyzed. One of the realizations that followed was that I would likely rely on technology to face the new challenges of life. So I also chose technology as my path to entrepreneurship."
Visit www.missouribusiness.net/success/tech_network.asp for the complete story.
Your local Small Business Development Center can help with your business success. Appointments may be made for free consultations on small business issues by contacting the SBDC office near you.
Make Plans to Attend the 2008 Lake Business Conference - March 25
Staying on top of the latest issues impacting business is a necessity in today's marketplace.
Does your company have an effective presence on the Internet? Do you know how to create a successful Web strategy and incorporate Internet marketing into your business? Do you know how to improve employee performance, make smart advertising decisions and secure the latest demographic numbers and trends for the Lake Area? Or perhaps you're thinking about starting a new business, but have no idea where to begin.
Don't despair answers to these issues and more will be the focus of a variety of sessions offered as part of the 9th annual Lake Business Conference on March 25, at Tan-Tar-A Resort, Osage Beach.
Also hear from entrepreneur Shayne Mayes, founder of Onshore Technology Services, whose young company is bucking the trend of sending information technology jobs overseas. Listen and learn as Shayne shares his story in pursuit of the American dream—business ownership.
This conference is a must attend for all Lake Area business owners, managers, supervisors and prospective entrepreneurs. Cost to attend is $50/person. To register, call 573-346-2644 or go to www.lakebusinessconference.com.
For information on other Missouri Business Development Program training events and conferences, visit the full Calendar of Events.
UMKC SBTDC Sets SBIR/STTR Seminar March 27 in Kansas City
The Small Business & Technology Development Center at the University of Missouri-Kansas City will conduct a two-hour introductory seminar on federal R&D funding at 3 p.m. March 27, at the center—4747 Troost Ave in Kansas City. The seminar "Winning Federal Grants for Technology" will cover Small Business Innovative Research (SBIR) and Small Business Technology Transfer Research (STTR) awards, which are granted to commercially promising technology innovators by several federal departments and agencies.
Cost of the seminar is $35. For additional information or to register for the seminar contact: Carmen DeHart, director of the UMKC SBTDC, at 816-235-6428 or dehartc@umkc.edu.
For more information on the SBIR program and how the SBTDC can help your business navigate the application process, visit www.missouribusiness.net/fast.
IRS Roundup
2008 rate for business miles increased to 50.5 cents per mile
The Internal Revenue Service has increased the 2008 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The following standard mileage rates for use of a car, van, pickup or panel truck went into effect Jan 1:
- 50.5 cents per mile for business miles driven;
- 19 cents per mile driven for medical or moving purposes; and
- 14 cents per mile driven in service of charitable organizations.
The new rate for business miles compares to a rate of 48.5 cents per mile for 2007. The new rate for medical and moving purposes compares to 20 cents in 2007. The rate for miles driven in service of charitable organizations remains unchanged.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS), after claiming a Section 179 deduction for that vehicle, for any vehicle used for hire or for more than four vehicles used simultaneously.
Buying Existing Business May Bring Profit, or Loss
More and more people are considering owning their own businesses by starting one or buying an existing business, according to Betty Lorton, recently retired business development specialist with University of Missouri Extension.
"New business start-ups are high but considering the fact that about 80 percent of new businesses fail within five years, it might seem less risky to buy an existing one," says Lorton. "But really, that depends on a number of issues."
Lorton offers the following considerations:
- Buying a business can be a great investment. Pluses normally consist of an existing customer base, a successful location and an income from day one. The downside is that it could mean a loss of one's life savings and a day in bankruptcy court.
- Normally, problems arise because a prospective buyer doesn't know the right questions to ask of a seller...or misleading answers are given.
- Take accounts receivable as an example. This is a business asset consisting of amounts owed to a business for products sold or services rendered. If accounts receivable are equal to $50,000, then purchasing them for $45,000 can look like a good deal.
- But only later does a buyer discover many of the debts are more than six months old. And some of those debts may be disputed by the person who supposedly owes the money.
- Realistically, no more than $10,000 may end up ever being collected.
- A financial review to determine the age of the debts and to verify accounts receivable would have uncovered the problems so that a buyer could better judge the real value.
- Relying on a seller's financial statements furnished by his or her accountant should also be done with caution.
- Although they may look impressive, more than 95 percent of the time these statements are compiled, which means all the accountant has done is to take the information provided by a business owner and put it into standard formats. No effort whatsoever has been made to verify any of the information.
- Most businesses also do a physical inventory only once a year so inventory figures on the reports reflect what should be on hand (not necessarily what is). A look at the seller's tax return is normally the best place to obtain reliable data.
- Agreeing on non-compete clauses, determining who will pay accounts payable and settling on fair values for other business assets are just three of many areas of concern to consider when buying a business.
Your local Small Business Development Center can help with matters related to buying or selling a business, such as calculating if a buyer can break even or make a profit based on a business selling price. Appointments may be made for consultations on small business issues by contacting the Small Business Development Center near you.
Send this newsletter to a friend
For more information about doing business in Missouri, visit the Web sites at www.missouribusiness.net or contact one of our service centers. You can find a list at www.missouribusiness.net/sbdc/centers.asp.
Subscribe to this newsletter at www.missouribusiness.net/newsletter_sign_up.asp. Unsubscribe information is found at the bottom of each eNews letter. We will never share or sell your e-mail address to others.
