WESST

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THE NEW ECONOMY: With bad news coming at us every day, it's hard to swallow that we've spent more than $40 billion to rebuild Iraq. It's even harder to swallow that the Iraqi government is enjoying a $70 billion surplus, not to mention the $10 billion we spend a month on the war effort. I could go on all day about our woes in the small business community, but to make a "long story short,"

I was at a meeting last Thursday and I heard Michael Loewenthal, a local Business Coach, put it in the best possible terms, and I quote "small business people need to RECOMMIT THEMSELVES TO THEIR BUSINESSES! Mike's mantra was, and I quote "Improve, Adapt and Overcome!" Improve how you do business, Improve your business relationships, Improve your Focus on your business, Improve your personal involvement with your business! Improve how you manage your business, Improve on your goals, objectives and plans for where you want to go with the business!

Adapt to the changing situations, Adapt to doing business differently, Adapt to "thinking out of the box," Adapt to finding a "New Way" to run your business, Adapt to the changing circumstances, Adapt to Change, Adapt to the "New Crunch Time." When you Improve and Adapt, you will "Overcome" the greatest challenges to you and your business.

There were other words that Mike used in his presentation like "passion", "being active", and "recommitting to the business." In his own words, Mike gave us a scenario that we all should keep in mind; "Do you remember the excitement and passion you had when you first started in your business or new career? It was wonderful I am sure. Well, find it again if it has been missing. Look at it as a new adventure. Go out there and do the things that you know need to be done in order to grow or maintain what you have. Have fun with it, again."

"Think positively, think outside the box, be bold, be full of energy, and never say no to an opportunity! Be creative in your marketing, pair up with others where there is a synergy between your business and their, and continue to invest in yourself through reading, coaching, seminars and the like. and oh yes, network aggressively, and if you don't know how, ask someone."

(source: "Coach Michael", The Business Coach).

A BUSINESS PLAN? WHO NEEDS A BUSINESS PLAN?: I ran across a survey that said only about 42% of small business owners have Business Plans!

Yeah, I know...you've heard this story many times before! Sadly, many of the people who need a business plan don't know they need it! They get trapped by the "myths" of business planning. They don't realize that business plans are not just for start-ups, loans or investment. They don't realize that Business Plans are easier to develop than most people think.

To succeed in business you simply MUST plan the steps, set priorities, allocate resources, and manage the cash! Sure, some people say they don't need to plan, but if they're successful, then they're actually ALWAYS planning in their heads! And you can keep that plan in your head if your business is very simple, cash flow is always adequate, you don't work with other people, and you don't need to communicate your business plan with other people either. Are you "feeling me?"

You need a business plan if you're running a business - A business plan is like a map and a compass for a business. Without it you're traveling "blind." With a plan you set objectives, establish priorities, and provide the cash flow.
You need a business plan if you're applying for a business loan - Most banks require it , and even those that don't, strictly require it, expect it! They expect it to be a summary of the business, with some predictable key points.
You need a business plan if you're looking for business investment - The plan won't get you the investment, but not having a plan will mean you won't get investment. Investors require a business plan . They invest in the people, the idea, the track records, the market, the technology, and other factors, but they look to the business plan to define and explain the business!
You need a business plan if you're working with partners - The business plan defines agreements between partners about what's going to happen.
You need a business plan to communicate with a management team - The day-to-day business routine is distracting, problems come up, opportunities appear, and commitments should be followed and tracked. How do you know where you are in business without establishing where you started and where you intended to go? How can people commit to a plan they can't see?
You need a business plan to sell a business, or to set a value on a business - you need a plan for taxes or other purposes such as estate planning or, God forbid, a divorce!
Don't accept disadvantages in business. don't try to run without a plan. Doing a plan is probably easier than you thin, and much more valuable!

SYNERGY? WHAT IS SYNERGY? Now, More than ever, we need to be conscious of working together, creating partnerships, and helping one another in business. That doesn't mean that there has to be a complicated legal document to seal the deal, but rather, using available resources that we haven't been accustomed to.

That's where Synergy comes in. In a word, Synergy is defined as "a combined action whose total effect is greater than the sum of the individual parts/actions." When certain drugs, for example, are said to have a "synergistic effect," it means that when combined, they increase each other's effectiveness above and beyond the effectiveness either one would have separately.

Synergy in a business relationship is the result of two or more people working towards a common goal based on a commitment to "shared values." By sharing a common goal, or a vision, and focusing your energy on it, you each bring your own uniqueness to bear on the fulfillment of that goal. You create a new energy that is more than double your effectiveness. This is the "Power of Partnerships ."

First, Identify your shared values with your partner - Because no two people are exactly alike, you and your partner will probably NOT exactly the same set of values. One of you might spend money quite freely, while the other might be very careful with money. One of you might put great emphasis on holiday tradition and family obligations -- the other might prefer freedom from family entanglements. But in spite of the differences, your relationship no doubt is based on MAN SHARED values. If you and your partner's shared values were represented by two intersecting circles, the circles would OVERLAP, there in creating the Synergy you need to be successful.

Focusing on your shared values - If you and your partner have a strong commitment to each other and to your relationship, and if you agree to give highest priority to those values you BOTH share - - setting goals based on those values that are in the common area of the relationship -- SYNERGY will the automatic result. As your relationship grows - the circles may begin moving closer together, and the area of common values will expand until it dominates and outweighs the area of personal values not shared.

BUILDING SYNERGISTIC PARTNERSHIPS AND SYSTEMS THINKING: In these harsh economic times, it is incumbent on us to really start to think "out of the box" on how to survive the downturn.

Meaningful partnerships are the foundation for success. Partnerships is what enables many businesses to make continuous improvements. By sharing with others, you can direct your resources and capabilities to projects you consider most important. Synergy is the power behind business partnerships. In a business partnership, again, two parties leverage their assets (resources, capabilities, expertise, client base, etc.) for the mutual benefit of both.

Now that you have embraced a synergistic partnership, it follows that you start to have some concerns about the coming changes that are sure to happen and how you make them "fit" to everyone's satisfaction. Systems Thinking is fundamentally different from that of traditional forms of analysis. Traditional analysis breaks/focuses on the separating the individual pieces of what is be studied.

Systems Thinking, in contrast, focuses on how the merging of assets and systems being studied interacts with the other constituents of the merging partnership systems. Systems Thinking is based on the concept that we work and live in complex dynamic and interdependent systems. Because systems operate as a "whole" any action by any part of the system will eventually effect the whole system. Systems Thinking provides a number of tools and disciplines for predicting the effects of CHANGE, understanding the structures and relationships within the system - that may be holding problems in place - and identifying the leverage points for effective change.

Systems Thinking recognizes that many of our attempts to solve tough problems often make matters worse and offers a method of mapping how changes in one element of a system influences the rest of the system over time. Systems Thinking helps problem solving, planning and managing the changes required to complete the partnership merger project process. (more on this next month)

THE BUSINESS CORNER: HOT !! Small business folks! h=Heads up! The City of Albuquerque invites you to register on their free, solicitation notification system for all requests for bids (RFPs), proposals and quotes with the City of Albuquerque .

Mayor Martin Chavez formed a Small Business Advisory Committee to make recommendations for assistance to small businesses. Mayor Chavez approved a recommendation to provide an additional 5% preference to local small businesses , among a few other incentives. The initiative was adopted into ordinance by the City Council and is scheduled for implementation on January 1, 2008 .

The city Purchasing Division is inviting and encouraging ALL businesses to take advantage of these new opportunities by registering now!! Of course, on-line registration is available 24 hours, 7 days a week at www.cabq.gov/vendor . For more information call 311 or Vendor Help Line 800-575-9955 , or go to www.cabq.gov/purchase .

Strategies for small businesses: First Stage Financing strategies help in obtaining funding for both the newly formed and the expanding small business. It is essential that you be aware of banks and other lending institutions (WESSTCORP, ACCION, THE LOAN FUND, and SBA), that will help you answer the most important questions of:

Being prepared BEFORE you make application for the loan is the most IMPORTANT aspect of this MOST important transaction! Having asked and answered the above questions will help determine the amount of capital you honestly need and identify those financing sources most inclined to fund your project!