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DECEMBER 10, 2001
In Box
Homeland Defense
Me first: Small-business owners are more focused on personal finances and less concerned about expanding their businesses than they were before September 11. Just 17% of entrepreneurs now say business growth is an extremely important goal, compared with 26% who said so before the terror attacks, says a survey by NFO WorldGroup. Two of the top financial priorities have shifted from growth and building an investment portfolio to maintaining standards of living and financing children's education. "It's a sharp reaction," says Maria Erikson, executive vice-president at NFO WorldGroup's Tampa office. "There's more focus on short-term goals." But no one expects this to last. When the economy bounces back, Erikson says, expect a return to business as usual--which for entrepreneurs means a focus on business.
Click Here for Credit Info
Tired of hunting for credit information on new customers? QuickBooks Pro's 2002 version will give you direct access to credit reports from Dun & Bradstreet for $10 a report. Another bonus: The new release will also integrate with other applications, so you won't have to transfer data manually if you use a variety of programs.
Idea Launcher
Need help developing an idea in the areas of biotechnology, communications, or security? The Garrett Morgan Commercialization Initiative at NASA's John H. Glenn Research Center in Cleveland offers small companies access to NASA expertise.
So far, the three-year-old program has helped 50 businesses. The latest: Alpha Port Inc., a six-person engineering outfit in Cleveland. It will use NASA's advice to develop wireless internet capabilities for remote areas --a technology that owner Rosella Miranda says will have military and commercial applications.
Technology transfer aside, the program is also customized to provide small companies with assistance in management, finance, and marketing.
To apply, your company must be located in the Great Lakes region, have fewer than 500 employees, and be financially stable and technologically driven. If your company fits the bill, NASA could be a nice booster for the business.
Sound Bites
William B. Gartner, USC professor of entrepreneurship, on starting a new business
Will we see much startup activity in this down economy?
New business formation will continue because the average amount invested in a new company is $5,000, and that's pocket change for many. Also, in an economy based on information rather than manufacturing, organizations are becoming smaller and more numerous.
What causes people to start businesses in these times?
A lot of people will go into entrepreneurship because of layoffs. And then there's tons of opportunities for smaller companies because in a recession larger ones aren't hungry for business.
What are the key issues that an entrepreneur will have to face in this environment?
Fantasies about growth and profitability. The rates of return in the late '90s may not come back. Those rates of 15% to 25% are abnormal. A 3% to 5% secure rate of return will be the norm now. So people's expectations will have to be in line with that reality.
Right at Home with Telecommuting
If you think your sales staff could work just as well from home, you've got plenty of company. More than 86% of small-company executives surveyed by Sales & Marketing Management in New York say salespeople who telecommute are at least as productive as office-based workers. " When telecommuting started five years ago, there was a suspicion on the part of managers that people wouldn't be doing their jobs," says Melinda Ligos, editor-in-chief of Sales & Marketing Management. "Now, they've realized it's a good option and an advantage in recruiting workers." About 46% of small companies allow telecommuting, but it's still a good idea to do a three- to six-month test run before establishing any policy.
The Information Mill
Where do entrepreneurs get their news?
14% read a national newspaper every day
33% read trade publications on a regular basis
50% watch the evening news on television
90% listen to the radio regularly
Data: Warrillow & Co.
One Iota
Off the Hook: Percentage of entrepreneurs who say switching to DSL improved productivity: 76%
Data: The Yankee Group, SBC Communications
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Copyright 2001, Bloomberg L.P.
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