Small Business Opportunities in a Down

Market: : How to Avoid 7 Common How to Avoid 7 Common

Traps!Traps!

BDPA New Jersey Chapter Webinar

Date: February 15, 2012

Presenter: Wayne Hicks

…Wayne Hicks

• CEO, Hicks Enterprises July 2002 – Present

• President, Cincinnati Business Incubator - 2003-2007

• Executive Director, BDPA Education and Technology Foundation 2006-Present

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Small Business Facts

41% Americans live paycheck to paycheck 80% of Businesses Fail Within 5 Years Only 1 in 7 Businesses that Fail have Debt 99.7% of all US firms are “small business

enterprises”

The Difference Between Working IN the Business

and Working ON the Business.

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7 Traps (Mistakes) to Avoid

1. Lack of Business Planning2. Poor Market Research3. Starting Business for the

Wrong Reason4. Bad Money Management5. Not Changing with Markets

or Customer Needs6. Doing Everything By

Yourself7. Ignoring Yourself or Your

Family

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1. 1. Lack of Business PlanningLack of Business PlanningWhat should you do?

Invest time, and effort in planning to:

• Design a money making model

• Set specific, measurable, attainable, realistic and time-bound goals

• Calculate accurately, the initial investment needed, and running costs

• Assess labor and work-force needs

• Sketch business emergency plan and exit strategy, and more...

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2. Poor Market Research2. Poor Market Research

What should you do?

Take the time and spend the money it needs to research your market. It will help you understand different aspects about your target market such as:

• Market Trends

• How your prospects buy the products you will sell

• Where will you find your prospects & where do they shop

• How you will reach your customers

• Your competitors, and more...

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3. Starting Business for Wrong 3. Starting Business for Wrong ReasonsReasons

What should you do?

Do some soul searching and find out if you'd really be happy running a business. Some reasons that make business a right thing for you include

•A passion for what you would be doing

•Good physical health and mental endurance

•Perseverance, an ability to motivate yourself, bounce back from failures

•Good people skills, and relationship skills

•Self-confidence, discipline, a drive for 'being your own boss,' and more...

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4. Bad Money Management4. Bad Money Management

What should you do?Learn basic concepts of managing money. Make every penny count, you should know where you're spending and why. And don't underestimate your costs. Good money management will help you:

• To fairly & accurately determine your capital needs

• Spend wisely on office infrastructure and supplies

• Make good hiring, rewarding, and firing decisions

• Better manage your daily cash spending

• Better control your costs, and more...

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5. Not Changing with Market & 5. Not Changing with Market & Customers' NeedsCustomers' Needs

What should you do?

You should track changing customer needs by listening to customers, tracking competitors, asking customers about their wants. And monitoring the business environment to:

• Stay abreast of any new competing or substitute products

• Learn about technological innovations and advances

• Get new product ideas

• Keep a tab on laws and regulations governing your business

• Prepare a better marketing plan, and more...

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6. Doing Everything by Yourself6. Doing Everything by Yourself

What should you do?

Even if you're the sole manager, try to do just the essential things by yourself. Consider outsourcing some administrative tasks. Delegating will:

• Leave you with more time for long-term planning

• Give you more time for performing crucial business activities

• Give you time to spend with your family and friends

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7. Ignoring Yourself and Your Family!7. Ignoring Yourself and Your Family!

What should you do?

Make sure you don't become so engrossed in your work that it strains your close relationships such as with your spouse, or leads to unhealthy lifestyles. As a result you should.

• Make time for your friends & family

• Eat well, relax enough and exercise

•Take a weekend or a couple of days off to recharge your batteries, and more...

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Small Business Resources

1. The E-Myth by Michael Gerber

2. The 4-Hour Workweek by Timothy Ferriss

3. Tuned In by Craig Stull, Phil Myers & David Meerman Scott

4. Think And Sell like a CEO by Anthony Parinello

5. Jump Start Your Business Brain by Doug Hall

6. Small Business Administration – www.sba.gov

7. Service Corps of Retired Executives – www.score.org

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Questions?

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Contact Information

Twitter: http://twitter.com/Villager

E-Mail: wayne@elecvillage.com

My Profile: www.linkedin.com/in/waynehicks

Handouts: www.slideshare.net/bdpafoundation

Phone: (513) 284-496814