Business Management Veteran Offers Suggestions for Survival in Stormy Economy
Small business and technology advisor Barry White (not the singer), who wrote the following article, brought nearly three decades of business management experience to his current post as director of the SBTDC at Missouri University of Science & Technology in Rolla. He spent 25 years in retail management with the Army-Air Force Exchange Service at military bases from Minot, N.D. to the Philippines.
Here, White offers a bit of advice to small business owners and operators to help them weather the current storms buffeting the local, national and world economies.
In my prior life in the retail business, we frequently experienced severe challenges to sales and profitability. Those challenges could be as straightforward as a sudden deployment of troops from the military installations I served, or as chronically debilitating as the slow draining of financial vitality caused by a major economic downturn like the one we saw in the early 1980s.
Barry White (center) with Mike Koenigstein (left), an MS&T SBTDC client and Malcolm Townes, a business commercialization specialist with the SBTDC in Rolla.
The repercussions of those challenges could be drastically immediate or severely drawn out, but we always found a way to make it through. We did so by maintaining our business vision while also adapting to changes in the business environment. So here are some suggestions to help enterprising owners and operators of small businesses successfully face today's challenges.
- Get back to the basics: Down and dirty, what did you do in the days when you started the business to get those first calls or first customers? Return to that time of service and focus.
- Cut unproductive frills: If you've instituted a change in the business that does not generate revenues or improve the bottom line, drop it immediately!
- Bump up the advertising: The worst thing you can do is stop marketing in a down market. People need to know how to find you. They need to know you have the deal or item they are looking for. Have you ever known people who didn't think they got a deal when they bought a car or truck? Marketing...
- Study the statements: If you are not looking at your profit and loss statements constantly, you are out of touch. Get your bookkeeper to prepare a P&L weekly to review expenses if you have to, but focus on it. Don't be reluctant to show your employees; they need to know what to look for as well as understand the situation. As leaders, if we fail to talk, people tend to fill in the blanks by making stuff up!
Read the rest of the survival strategies.
Success Story: PureFlow Technologies Inc.
Jefferson City entrepreneurial team tackles fuel efficiency challenge head-on
Charles Ekstam and Dora Serrano make a great team as husband and wife, and as business partners. Their Jefferson City-based company PureFlow Technologies Inc. produces and markets a device, the Fuel Preporator®, that improves the efficiency of diesel engines by 8-12 percent. It also greatly reduces pollutants and increases engine power.
Charles Ekstram of PureFlow Technologies Inc. demonstrates the assembly of a fuel module.
Since reacquiring the company in 2007 (health problems, that have since been resolved, forced them in 2005 to sell the firm they originally founded three years earlier), Charles and Dora reinvested $1 million in equity and obtained $900,000 in additional capital to reinvigorate the business and market their fuel-saving device.
In the process, the entrepreneurial couple sought the guidance of Jim Gann, University of Missouri SBTDC business specialist in Columbia, to help determine marketing strategy, develop financial modeling, and pinpoint funding sources.
Consequently, since mid-2008 PureFlow has greatly expanded and now has more than $2 million in annual sales. Last July the company moved from an 8,000-square-foot facility to a 33,500-square-foot production plant. A potential set of contracts with a major Department of Defense supplier could increase the company's sales exponentially, according to Dora.
"We are assisting these entrepreneurs with an approach that involves both MO SBTDC and MO PTAC," says Gann. "This team approach, mixed with a tenacious entrepreneur and a business-savvy wife, has created a very powerful team that should have far-reaching impact (for the diesel industry) through lower energy consumption and reduced pollution."
Those are the basic facts of this Mid-Missouri entrepreneurial success story. But there is a story behind the story...
Read the complete Pureflow Technologies success story with additional additional photos.
Missouri Fictitious Name Renewal Starts in March
New law affects more than 560,000 businesses
JEFFERSON CITY, Mo. - The renewal period for fictitious name registrations for Missouri businesses began in March, according to Robin Carnahan, Missouri's secretary of state. Due to a change in state law, more than 560,000 fictitious name registrations must be renewed with the Secretary of State's office for the first time in the state's history.
Any fictitious name registration filed on or before Aug. 28, 2004, must be renewed by Aug. 28, 2009. If an individual or business does not file its renewal, the registration will expire and the individual or business will not be able to legally conduct business in Missouri. Fictitious names registered after Aug. 28, 2004, will expire five years after the date they were filed.
"I am working diligently to ensure all businesses are aware of the change in law," said Carnahan. "I encourage organizations and businesses to renew as soon as possible and to save time by filing online. My office has saved Missouri businesses more than $9.5 million through online filings, and I will continue to streamline services and cut red tape to help small businesses grow."
If a business is operating under a name other than its true name or the actual name of its company, it must register a fictitious name with the state. For example, if John Doe is doing business as "John's Tailor Shop" he must register that name.
The Secretary of State's office will send a reminder to all fictitious name holders with their expiration dates and renewal information. All individuals and businesses are encouraged to register online or download the registration form and mail it to the Corporations Division of the Missouri Secretary of State's office.
To look up your expiration date, go to: https://www.sos.mo.gov/BusinessEntity/soskb/csearch.asp
To renew online, visit the link above and click on "renew" in the left column.
To download the registration form, go to: www.sos.mo.gov/business/corporations/forms.asp
Please mail to the Corporations Division, P.O. Box 2050, Jefferson City, MO 65102.
There is a $7 filing fee for registrations. Organizations and businesses without access to a computer or the Internet can call the Corporations Division toll-free at 866-223-6535 to request a paper copy of the form. Questions related to fictitious name registrations should be directed to the Corporations Division of the Secretary of State's office.
MoFAST Web Site Updated, Improved
MU Extension's Business Development Program has revamped and updated its Web site for the MoFAST Technology Development and Commercialization program, according to Paul Rehrig, director of the MoFAST program. The renovated site (www.mofast.net) was launched earlier this month and:
- Features easier-to-use navigation and design;
- Provides open access to information (including sample proposals, search/assistance services, agency links) previously requiring registration to view;
- Contains current information (such as forms and links to grant writers) for the Missouri Technology Incentive Program (MoTIP);
- Enables users to learn about other technology small business stories by clicking on the large photo on the main page;
- Links to the MoFAST blog, which was added to provide frequent updates to items such as open topic solicitations/due dates, SBIR reauthorization, availability of helpful online tools and more;
- Allows users to obtain easy updates via RSS and Twitter.
SBA News
Recovery efforts announced by President Obama
WASHINGTON, D.C. - President Obama announced March 16 that effective immediately the SBA will:
- Temporarily raise guarantees to up to 90 percent on SBA's 7(a) loan program, through calendar year 2009, or until the funds are exhausted. This increase in guarantee levels will help provide banks with the greater confidence they need to extend credit during the current recession, will mean more capital available to small business owners around the country.
- Temporarily eliminate fees for borrowers on SBA 7(a) loans and for both borrowers and lenders on 504 Certified Development Company loans, through calendar year 2009, or until the funds are exhausted. This will mean more capital available to small businesses at a lower cost. The fee elimination is retroactive to Feb. 17, the day the Recovery Act was signed. SBA is developing a mechanism for refunding fees paid on loans since then.
Additionally, the President announced today that the Treasury Department will commit up to $15 billion to help unlock the frozen credit markets by purchasing small business loan securities currently frozen on the secondary market. By purchasing these securities, it will unlock these secondary markets, and in turn, free up more capital to jumpstart lending for small business owners. The SBA has worked closely with the Treasury Department to address the need to unlock these secondary markets for SBA loans.
For more information on the SBA and Treasury initiatives announced by the President, visit the SBA Web site at www.sba.gov.
SBA Applauds Federal Stimulus Bill
Planning under way for broadest, quickest small business impact
WASHINGTON, D.C. - The American Recovery and Reinvestment Act, signed into law last month by President Obama, contains a package of loan fee reductions, higher guarantees, new SBA programs, secondary market incentives, and enhancements to current SBA programs that will help unlock credit markets and begin economic recovery for the nation's small business sector.
"The tax incentives and credit stimulus elements of the Recovery Act will truly help small business owners affected by the credit crunch, and will provide financing opportunities to help them create new jobs in their communities," said Darryl K. Hairston, acting SBA administrator.
"There's a lot to digest in the legislation, and SBA has established teams to tackle a wide variety of policy decisions, system modifications, regulatory changes, legal requirements, and new program launches authorized by the President and Congress," said Hairston.
The bill provides $730 million to SBA and makes changes to the agency's lending and investment programs so that they can reach more small businesses that need help.
Visit www.missouribusiness.net/news/sba_stimulus_bill_021809.asp to continue reading SBA's news release about the stimulus bill.
Scam Alert
SBA warns of fraudulent attempts to obtain bank account information from small businesses
WASHINGTON, D.C. - The The U.S. Small Business Administration recently issued a scam alert to small businesses, warning them not to respond to letters falsely claiming to have been sent by the SBA asking for bank account information in order to qualify them for federal tax rebates.
The fraudulent letters were sent out with what appears to be an SBA letterhead to small businesses across the country, advising recipients that they may be eligible for a tax rebate under the Economic Stimulus Act, and that SBA is assessing their eligibility for such a rebate. The letter asks the small business to provide the name of its bank and account number.
These letters have not been sent by or authorized by the SBA, and all small businesses are strongly advised not to respond to them, according to Mike Stamler, director of the SBA press office.
The scheme is similar in many ways to e-mail scams often referred to as "phishing" that seek personal data and financial account information that enables another party to access an individual’s bank accounts or to engage in identity theft.
The SBA is working with the SBA Office of Inspector General to investigate this matter. The Office of Inspector General asks that anyone who receives such a letter report it to the OIG Fraud Line at 1 (800) 767-0385, or e-mail at OIGHotline@sba.gov.
Business Going Green:
AmerenUE announces energy efficiency program to help business electric customers upgrade facilities
ST. LOUIS, Mo. - Business customers throughout AmerenUE's service territory now have $24 million in incentives available to them to help them save electricity...and money.
UE's new Business Energy Efficiency Program gives any non-residential customer planning to purchase and install qualifying energy efficiency upgrades incentives to cover the cost of making those improvements.
"This program is one of the best ways to help customers in an economic downturn upgrade their facilities to reduce their energy use and monthly bills," says Steve Kidwell, regulatory affairs and energy efficiency vice president for UE. "In turn, this program will help UE reduce the demand on its system allowing us to defer building more generation and, therefore, saving money for all energy consumers."
Incentive levels are subject to program guidelines. Customers may get current program information, including incentive forms, by calling 866-941-7299 or by visiting www.ameren.com/BIZefficiency.
Continue reading about AmerenUE's program at: www.missouribusiness.net/eac/news/amerenue_upgrade.asp.
Send this newsletter to a friend
Visit www.missouribusiness.net/newsletter to read previous newsletters archived on our Web site.
For more information about doing business in Missouri, visit MissouriBusiness.net or contact one of our service centers.
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.
