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Women Succeeding In Male-Dominated Industries 03/07/2010
The last decade has been a great time for women entrepreneurs. Nationally, women-owned firms generated $3 trillion in annual revenues in 2009, and one in five businesses in the U.S. with revenues over $1 million are woman-owned firms.
More and more of these entrepreneurs are succeeding in male-dominated industries. Take, for example, Ann Kastendieck, owner of V.L. Clark Chemical Company. When the former accountant purchased the business in 1991, sales were $20,000. In 2009, V.L. Clark had revenue of $7 million.
This growth is partly driven by Kastendieck's desire to persevere as a woman in the chemical industry.
"There were always those people out there who wouldn't do business with me because I'm a woman," she said. "But those are the people who ended up helping me because they make me even more determined to find suppliers who will work with me and build relationships with my customers."
--Ron Ameln, SBM |
A Small Firm's Secret Weapon 03/04/2010
We recently made the decision to revamp the look of our magazine. The updated look and content was much needed and has certainly given a boost to our company and bottom line. A friend asked me last month is the design process took 10-12 months. I laughed.
I think it took about a month from start to finish. One month to transform our product, which makes up 70% of our yearly revenues.
Could that have happened at a large, corporate magazine? No way. It would have taken them a month to plan the first meeting. While we usually can't match our larger competitors with pricey technology and the latest gizmos, we can beat them with our flexibility. And so can every other small firm in business today.
Small firms have always been compared to gazelles, the fastest animal on the planet. Gazelles move at a lightning pace and have the agility to switch directions the instant they spot a new opportunity.
As a small business, this agility is our secret weapon. Look for opportunities and trends where you can use that agility to grow your business and keep competitors at a distance.
--Ron Ameln, SBM |
Perseverance: The Key To Entrepreneurial Success 03/02/2010
Do you want to succeed as a business owner? Can you persevere in difficult times?
Hopefully you answered yes because that's what it takes.
Take, for example, Jennifer Raeker. When her father Bob Raeker, also the founder of Bob Raeker Plumbing, died unexpectedly on a Saturday night, Jennifer had to step up to the plate. Despite being just 27, she was now in charge. "I had no idea how to run the business," says Raeker. "I never got into the finances. I had no idea what was in our savings, if $5,000 or $50,000 was a lot to have, or how to pay the bills."
To make matters worse, when suppliers found out what happened, they assumed the business would close and demanded payment in full, putting even more of a burden on the company.
Unlike many things in life, you can't teach perseverance. It's an innate, instinctive trait that is usually passed along from generations. If you have the ability to persevere (find silver linings when others only see gloom and doom), you'll succeed in any business and industry.
Raeker certainly has the ability to overcome challenges. She's built the 54-year-old company into a multimillion dollar firm.
--Ron Ameln, SBM |
Little Things Can Equal Big Savings 02/22/2010
Little things can equal big savings in a hurry. The trick is having enough savvy to spot the potential savings. Here in St. Louis, an owner of a day spa discovered that technicians were using three pumps on a shampoo container when washing a client's hair. While only one pump of shampoo was needed, the extra two pumps per client didn't seem like a lot at first.
Until the owner calculated one year's worth. She soon discovered she could save more than $5,000 from just asking technician's to use one pump worth of shampoo.
For businesses of all sizes trying to cut expenses, these savings are all around us. The trick is to really focus on controlling these costs.
--Ron Ameln, SBM |
Old Communication Tools Still Work 02/05/2010
When it comes to investing, Warren Buffet has a legendary quote: "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well."
That's a great quote when it comes to investing, but it also applies to business as well. Keep this quote in mind as you begin your journey with social media. With everyone jumping on the social media bandwagon, don't forget things like letters and the telephone.
Ironically, in this age of social media and texting, one of our strongest sales tool is the hand-written letter. Yes, a scribbled, personal hand-written letter. Not one we ordered through a website, but a letter we actually wrote (with an ink pen and our own hands). Think about it. Who gets hand-written letters these days? It is a great way to stand out.
I'm not saying social media isn't a great way to go, or it doesn't have a future. I'm simply saying, Don't turn your back on the tools that helped you become successful in the first place. They still work. We're great examples of how these tools can work.
--Ron Ameln, SBM |
Are Your Activities Helping You Reach Your Goals? 01/21/2010
One of the great things about being a business owner is you call your own shots. Every morning you dictate your activities and energy level. It is certainly a blessing many employees around the country would like to try for just one day. It is a blessing but also a curse.
Many business owners get so unfocused that they end up chasing one opportunity after the other, never really focusing on their long-term goals.
The solution: A plan.
Business owners are the worst when it comes to planning. Most spend more time planning their vacations than the future of their businesses. If you fall into that group, complete the following exercise:
Jot down where you want your business to be in 3 years. Be specific with sales figures, number of clients and employees.
Take a look at your information. Start to break it down. For example, if you want 300 clients in 3 years, you'll need 100 by the end of year 1. After you find out what you need in year 1, start jotting down what it will take to make those numbers.
Presto, you have a plan. Keep it posted above your computer. When you are bogged down in meetings or bouncing from project to project, take a loot at your plan. Ask yourself: "Is this activity helping me reach my goals?" If the answer is no, stop doing it.
--Ron Ameln, SBM |
Are You A Rock or Sponge? 01/15/2010
Therapists have a saying and it goes something like this: "When people come to us with a problem, the real problem is never what our patients' think." In other words, alcohol isn't your real problem, it is something that is leading you to drink. A therapists job is to pull back the layers and locate the real problem, and then the patient can work on solving that problem.
I thought of this the other day when talking to a local entrepreneur. This entrepreneur has been in business for about 15 years and she attended a peer group to gain new insights into herself and her business. After attending, she came to the conclusion that "I've seen everything in 15 years and none of these people can help me."
Houston: we've found the real problem.
John Wooden, the great basketball coach, has a famous saying, "It's what you learn after you know everything that really matters."
Entrepreneurs are certainly independent. Many fled the corporate world because they didn't want to answer to THE MAN each day. Those traits are great for running a company, but can also hold these owners back.
Most of the successful business owners I know are sponges, soaking in everything they can. They don't put up a wall and convince themselves they "know it all." They use what they can and are always open to new ideas, no matter who might provide them.
One of the best ideas for Jack Stack, owner of SRC Holdings in Springfield, Mo., came from the janitor. That idea and many others helped Stack turn around the near-bankrupt firm around.
There's not much hope for this entrepreneur, but there is hope for you. The lesson: put your ego to the side for a minute. You don't have to take the janitors advice, but you should at least listen. Your future may depend on it.
--Ron Ameln, SBM |
Management By The Numbers 01/04/2010
When I start talking about numbers with my entrepreneurial friends they all start rolling their eyes. "There he goes again, talking about numbers." I can certainly understand their objections. After all, these risk-taking business owners are leading companies because they have a passion for what they do, not because they have a passion for flow charts and spreadsheets.
I used to think that way as well. Until my business coach showed me how to use my numbers to solve the weaknesses in my business. The numbers always tell a story, and if you get to know your numbers, you can solve your deepest business issues.
This concept works in all phases of life and business. Take, for example, the St. Louis Blues hockey team. The underachieving team recently fired its head coach because of the team's poor performance. So, how does the new coach start to solve some of the team's problems? Well, a look at the numbers shows the team's two main weaknesses, a poor power play (one of the league's worst) and a poor home ice record (the worst in the league). If the new coach wants to get the Blues into the top 8 slots for a playoff birth in the next four months, he must improve on these two weaknesses. Really, nothing else matters. If the Blues were just .500 at home this year and average (compared to the rest of the league) on the power play, the team would be in the coveted top 8 already. Solve these problems and the team is in the playoffs.
The numbers tell the new coach where to look to solve the team's problems. The lesson: If you don't chart and measure your performance in a variety of ways, you won't know how to correct your weaknesses.
--Ron Ameln, SBM |
Welcome To St. Louis in 2020 01/02/2010
Welcome to the Year 2020. You might not recognize St. Louis much these days, but the region is thriving. Jobs and industries continue to pop up. 10 years ago many of our local leaders rallied together and focused on four primary initiatives. Our leaders and our region focused mainly on these initiatives. Here's how we did it:
1. Focused on Education: Back in 1999, only 24.5% of area high school students graduated from college, compared with 34.7% in Kansas City and 31.4% in Chicago. Our high school graduation rate was also horrendous. Our leaders realized that the region that produced the most educated, innovative workforce would gain the companies and jobs in the future. We were behind in a big way. Our corporate leaders decided to adopt students (just like the Big Brother program). The students received internships and help to attend college. Employees became mentors. They also gained experience and a belief they could actually make a difference. It worked.
2. Our City and County finally became one. When it came to being on the same page and building your region for the future, separate City and County governments just didn't work. Now, we're one and on the same page. Now, governments and municipalities don't work against each other. We all move as one toward a common goal: building our region. Even St. Charles County has agreed to help, paying its fair share for things like the Zoo.
3. Focused on our core: Downtown. The expansion Westward and the suburban sprawl might have been great for the many citizens looking for a change, but it damaged our city's core, downtown. Our leaders realized we couldn't build a serious future without a strong core. Back in 2009, our downtown office vacancy rate was 21.5% (compared to Chicago's 15.5% and Kansas City's 16.7%). Our leaders changed that. The city/county merger and incentives helped bring businesses back to the downtown area. A vibrant downtown area helped bring larger corporations into the region.
4. Global Expertise. Our leaders realized that only 5% of the world's population is from the U.S. Companies that can export open themselves up to huge markets. St. Louis decided to be the leaders in exporting. We set up several different incubators (just to help growing businesses learn the exporting trades). Experts soon moved here to lend a hand and within 5 years St. Louis became the mecca of international trade. If you had any business, from 400 employees to one, you wanted to be in St. Louis to help jump-start your international venture.
Turning this city around wasn't as hard as you'd think. After all, we already had a strong foundation in industries like health care and education. All we needed was a commitment and some hard work.
--Ron Ameln, SBM
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Say Goodbye To The Economic Decade From Hell 12/10/2009
There is one more good reason to pop the champagne and ring in the New Year--saying goodbye to the Economic Decade From Hell.
This will be a decade to erase from memory. 9-11 and two recessions later, we're finally saying goodbye and hopefully good riddance.
Here are some low lights from the past decade:
-Unemployment in the St. Louis area went from 3% in 1999 to 9.8% today.
-Missouri building permits decreased 82% from peak to trough during the decade.
-St. Louis population growth continued to lag. Between 1990-2008, St. Louis resident population grew 9%, while Kansas City grew 22% and Chicago grew 17% (U.S. population grew 22%).
-Housing prices in St. Louis area have fallen 14% since 2007.
-St. Louis downtown office vacancy rate is now 21.5%, compared to Chicago's 15.5% and Kansas City's 16.7%.
Needless to say, I'll be hoisting my glass and hoping for a better decade ahead.
--Ron Ameln, SBM |
Your Company Is What You Do, Not Who You Are 12/08/2009
An entrepreneur friend of mine surprisingly took his life last week, leaving behind a wife and children. My thoughts and prayers go out to him and his family.
While I'm not sure of the exact reasons for his actions, I do know his business and industry were suffering through a major decline. He went from having a soaring business with many employees to just a few. I'm sure this business downfall weighed heavily on him the past few years.
As and entrepreneur, it's easy to forget that our companies and our work "are what we do, they are not who we are."
That's certainly easy to sit back and say. We work long hours and are driven by bottom line results. Our employees become like children. We end up worrying about their progress and futures just like our own kids.
Even though it's tough, we've got to make this distinction. Even during troubling times like the past few years, our lives go on despite what happens with our companies. From my friend, I'm going to remember this lesson.
--Ron Ameln, SBM |
Carrying A Man Purse And Running A Business 12/05/2009
I met an entrepreneur friend of mine recently for lunch and he showed up wearing a Man Purse. Yes, that's right. He showed up with a purse, carrying such items as tissues, camera, keys, cell phone.
I gave him the obligatory 30 seconds of ribbing and then let him explain himself. "It's not a man purse," he said. "It's a European Shoulder Bag."
Oh, excuse me...Whatever.
Later, I starting thinking more about his man purse...ahem, European Shoulder Bag. You know, the same characteristics that make him wear his bag in public are the same characteristics that make him a great entrepreneur.
He's innovative, doesn't care what others think and isn't afraid to take a chance. He never waits to see how others feel about his decisions. He makes decisions based on what is best for his company and future (no one else), and he doesn't follow everyone's path--he creates his own.
Do you showcase these characteristics in your business?
Maybe I shouldn't have made fun of him after all.
--Ron Ameln, SBM |
A Take No Prisoners Business Book 11/28/2009
So you want to succeed in business, huh! We'll, according to George Cloutier, it's time to put business first.
In Cloutier's latest book, "Profits Aren't Everything, They're the Only Thing," he states that many business owners are not fully committed to the success of their businesses.
"When I do seminars around the country about building profits, it always stuns me when more than half the people in the room admit to not working on weekends, yet these are the same people who complain about failing to make big money," Cloutier writes in the book. "I meet a lot of resistance to this from clients at first. Of course you have every right to a life--if you don't care about making money."
If you are looking for some tough love when it comes to growing your business, this might be the book for you.
Here are some of the advice he offers small- and medium-sized business owners:
-Fire every family member but yourself.
-Weekends are for working, not seeing your children.
-Never pay your vendors on time.
-Wear your control freak badge with pride.
-Quit your denial: if your business fails during the recession, it's still your fault.
--Ron Ameln, SBM |
5 Worst Movies, Part 2 11/25/2009
A few months back I shared with everyone the worst movies I had ever seen. I decided to add a few more. This time, however, I went to the expert (I consider any male under 30 an expert because they've seen EVERY movie ever produced). My expert is Eric Joellenbeck. Here's Eric's worst pics:
1. Paul Blart: Mall Cop (2009)
Kevin James (who I'm a big fan of) plays dopey mall security guard, Paul Blart. When the mall he works for is taken over by burglars, it's somehow all up to him to save everyone inside. This movie makes ample use of "fat equals funny," which is not true. It might work once or twice, but you can't fill a whole movie of Kevin James not being able to run far or dance for a long time or eating lots of pie.
2. The Happening (2008)
Something terrible is happening to people of Earth. When the wind blows by them, they kill themselves. Did you hear that? That's the actual plot of this movie. And the way people kill themselves in this movie is completely preposterous, such as people feeding themselves to lions or stabbing their own throats with devices keeping their hair in place. This is M. Night Shyamalan's latest bomb in a recent string of terrible movies. And by the way, I don't think anybody is buying The Funky Bunch's Marky Mark as a science teacher. Not even Marky Mark himself.
3. The Good Shepherd (2006)
I'm surprised here; Robert DeNiro is directing. Matt Damon and Angelina Jolie are starring. And it's a spy movie. Well, it's probably the most boring spy movie I've ever witnessed. Matt Damon gives the worst performance of his career, it can be likened to a robot. And Angelina does a good job of just being a bitch for a solid 167 minutes! That's right. 2 hours and 47 minutes of boredom. So much more could have been done other than Damon brooding around the world and Angelina crying because she's having his baby.
4. The Squid and the Whale (2005)
Noah Baumbach's 2005 movie is about two intellectuals who divorce in the late 80's. Their two kids are deeply affected and change in great ways during the separation. What i hated about this movie was how I felt talked down to. This movie is full people who all think their smarter than everyone and will tell you so. It's never happened to me before this movie where I watched a movie where I literally thought, "Wow, I hate everyone in this movie." If you skip this movie and just have a college level student tell you that you're an idiot and don't read good books, you'll get the gist of this movie.
5. Suspiria (1977)
Considered a horror classic, Dario Argento's Suspiria is a completely idiotic tale of disgust. Yeah, that may be harsh and I know people love this movie. I don't know if the version I saw was, indeed, the original but I know I hated it. The music in it was highly distracting, in a bad way.
--Ron Ameln, SBM |
New Businesses Are Important To Recovery 11/21/2009
Entrepreneur David Miller is our future, and it's time we start supporting him.
Miller, along with three other partners, are set to open their own sandwich shop, Sammy Scott's Sandwiches & More, in Creve Coeur this month.
Why is he our future? Because businesses like Miller's will be the ones pulling us out of the recession and employing some of the 10% seeking work. Miller expects $1 million in revenue his first year and then to increase the original store to 5-8 more in the area.
Layoffs and restructurings are continuing at blue-chip companies: Time, Inc., Johnson & Johnson and Microsoft recently announced workforce reductions. We shouldn't expect job growth to come from the Fortune 500.
According to a new study from Kauffman Foundation, companies less than five years old created nearly two thirds of the net new jobs in 2007. Growth will come from entrepreneurs like Miller and his partners.
It's time we, as a society, start embracing these entrepreneurs. Politicians, both state and local, and lenders need to start looking at folks like Miller a little differently. If the area's economy is to recover, it will be because of people like Miller and his partners.
--Ron Ameln, SBM |
Four Budget Cuts You Should NEVER Make 11/18/2009
It's that wonderful time of year--budget time. Everyone is knee-deep into their budgets for 2010. (If you are not, shame on you.)
It's been a rough ride for entrepreneurs the last few years, budgets that would normally see a scalpel over the years have gotten the machete treatment lately. It's easy to start cutting, but there are certain line items that should never be cut if you are serious about building a quality business in the future. I speak from experience because I've mistakenly cut these areas and suffered the consequences.
1. Employee Recognition Programs. Maybe it's a birthday lunch, birthday gift, a fruit basket after a job well done....whatever, keep it. Employee recognition is the No. 1 motivator for employees. They are your most important asset.
2. Employee Pay. There is nothing worse than working hard and coming home with less pay than the year before. Sometimes it is essential when business is slow, but it should be a last resort. If you suddenly cut your prices, for example, you send a message to clients that you were either overcharging them or your service doesn't have as much value anymore. Are those messages you want to send to employees?
3. Technology. Technology is a great equalizer for businesses. The right CRM software, for example, can save hours out of your week. Find a new technology every 6 months that will make your more efficient.
4. Fun. Whether it is a happy hour or a bowling outing or a Christmas dinner, work has to remain fun, especially during economic downtimes. Maintain the fun.
--Ron Ameln, SBM |
The Meaning Of Life--And Your Business 11/16/2009
What is "The Meaning of Life?" Pretty deep, huh...especially from a former sports reporter. Reading a former sports reporter pondering the meaning of life is like listening to an Enron executive discussing integrity (okay, it's not that bad).
Seriously, what is "The Meaning of Life?"
To me, the meaning of life is affirmation. It is knowing you make a difference in the world. That's what we all want and we all crave. People want to know they matter. If they know what they do makes a difference, they will almost always step up to the plate.
So, where does all this fit into your business. Do your employees know they matter? Make a difference?
I know as a business owner I do a HORRIBLE (yes, capital letters) job of letting people that work for me know how they make a difference. I'm an intense person and I'm usually 100% focused on my daily tasks. I just assume employees know they make a difference. I don't think I'm alone.
In fact, a recent study said 50% of entrepreneurs ranked themselves as poor when it came to employee recognition. Another study stated "Recognition" as the No. 1 motivator, according to employees.
If you want to be a better entrepreneur and have more productive employees, start praising employees.
--Ron Ameln, SBM |
Who Has Solution For Older Employees? 11/05/2009
It's not a good time to be an older worker in America. This may be the worst time in the past 60 years to be older and looking for work. Some 6.8% of workers over 55 are currently unemployed. You have to go back to 1949 to find employment stats this bad.
On average, it takes employees over 55 years old seven weeks longer (roughly 33 weeks) to find employment than their younger counterparts.
That's a shame because these individuals carry with them years of expertise and experience. And they are stuck on the sidelines.
"These older workers can't adapt to today's technology and the flexibility in today's workforce?" I hear this all the time. I don't buy it. These folks are as active online as any group these days, and businesses should have systems set up to make it easy for employees to get their jobs done, regardless of age.
Someone (business or industry) is going to come up with a way to hire and employ these individuals and their bottom lines will improve because of the decision. No one wants to hire them so you'll have your pick of the best. We're all living longer today and working longer so if you hire a 55-year-old you may have them for 15 years (the average employee only lasts 4 years with an employee these days). Now, these individuals are often too young for Medicare so benefits will be important to them. However, I think they'd be willing to give up some compensation in exchange for the benefits (they are unemployed after all).
Again, the best kept secret in the job market are older workers. Someone is going to wake up one day and discover them and find a way to tap into this talent pool.
--Ron Ameln, SBM |
Surviving Tough Times As An Entrepreneur 11/03/2009
I've always found boxing to be an interesting sport. Boxers work for 6 months to perform for two hours. The best boxers actually only box for four hours a year. The rest of the time is preparation.
One of the most interesting things about boxing is how the handlers treat the boxers. "You can do it Champ!" "No one can beat you Champ." It's interesting because every boxer is called Champ. It doesn't matter if he's just won one fight his whole career. He's Champ. In most cases, everyone knows he's not a champion...the boxer, the handlers, the fans, his banker, etc. Yet, he's referred to as "the Champ."
The handlers know their boxer needs a certain edge, a confidence that he can beat anyone at anytime. He can't go into the ring with doubts. They tell him he's the Champ because if he sees himself as the Champ, he may someday end up as the real Champion.
A business owner is no different. Times have been tough on all business owners, but now is not the time to lack confidence. Focus on your successes in the past and the success you'd like to be in the future.
Go Get'em Champ.
--Ron Ameln, SBM |
Sent A Hand Written Letter Recently? 10/30/2009
When is the last time you sat down, got out a pen and wrote someone a letter?
Not an email or a text or going online for a computer generated postcard. No, no. I'm talking about a real-life handwritten letter. Been a while, huh?
Well, you're not alone. Hardly anyone sends handwritten letters anymore, and that's a shame.
A few years ago after sending countless emails and voice mails (no response) I finally sat down and wrote a handwritten letter to a prospect. Nothing elaborate, just some thoughts on a piece of paper. I got the appointment and the business.
No one...Let me say this again...No one...sends handwritten letters anymore. Do you want to get noticed? Do you want to make a point? Do you want to show you cared to take time?
Send a letter.
Email used to be great. Now, I get email from everyone (employees, colleagues, vendors, son's teacher, son's coaches, etc.) . I fly through them as quickly as possible.
Not a letter. I don't get any (I can't remember the last one I got). I'll stop and take a look at a letter.
Warren Buffet once said about investing: "When people panic, that's when you should remain calm. When people are calm, you should panic."
The same holds true with communication. When no one is sending letters, it's time to get the pen out and be heard.
--Ron Ameln, SBM |
Does FaceBook Actually Help Your Business? 10/27/2009
Ok, I joined Facebook last week. I now have 131 friends that I can share my family pictures with, and more importantly, share the important facets of my life...like "I'm sitting on a airplane going to Cincinnati," or "I'm freezing at my son's soccer game," etc.
So far, I've caught up with some college friends, a few former high school teammates, some clients and prospects, a high school girlfriend and I now know when everyone leaves town for vacation or gets the flu.
The problem is that I found out most of these things at the office.....when I should have been actually working to make a profit for my business.
As any business owner will attest, employee focus is one of the most difficult challenges in helping employees become successful. Social networking (even though I use and love) is yet another distraction for many workers.
I'm now on Facebook, LinkedIn and Twitter, all great tools, but here is the question: When are these tools helping me serve my customers and pay the company bills (the real reason we all work) and when are they sapping my productivity?
It's a tough question and a question all business owners will soon need to answer. Some businesses are banning Facebook from their company computers. Others are waiting to see how these tools flesh themselves out in future. I'm not sure there is a right or wrong answer, we're all trying to learn and adapt to these social networking sites.
Now, since many have handheld, Blackberry-type devices, even if you ban Facebook from your company computers, employees are still within reach.
Could there be a day when cell phones and Blackberry devices are also banned from the office? It is happening in colleges.
When deciding to allow employees access, I think it comes down to the question I posed earlier: Does the employee's participation during business hours help your company reach its goals? Don't know the answer? You'd better start thinking about it because businesses of all sizes will soon have a big decision to make.
--Ron Ameln, SBM |
St. Louis' Slow Economic Recovery And Small Business 10/25/2009
Dave Nicklaus from the Post-Dispatch had an interesting article today (10-25) about the area's history of slow economic recoveries. The expert he interviewed for the story, Jack Strauss of Saint Louis University, believes the St. Louis economy is so sluggish during recoveries because of its dearth of small, fast-growing businesses. This seems to make sense. After all, it's small business that usually creates the new jobs and pulls communities out of economic rough patches.
It's no secret that studies have shown St. Louis has a low rate of business startups and lacks an entrepreneurial culture.
It's too late to turn around for this economic downturn, but there are some things the region can do before the next downturn. Here's three things we can do today:
1. Get Our Leaders Onboard. It starts at the top. Stop with the condescending talk about how important small companies are and start putting your money where your mouth is. This goes for RCGA (quit spending money to lure businesses from other regions) and use it to help our own homegrown firms prosper. There are many successful small firms that can become future Fortune 1,000 firms, but only with support. This goes for civic progress, state and local politicians and communities as well. Do our leaders realize that 95% of area companies have less than 20 employees?
2. Change The Mindset of Area Lenders. There are MANY area lenders that won't even talk to an entrepreneur unless his business has $5 million in revenue. Interesting...didn't Build-A-Bear, Enterprise, World Wide Technology, Pangea Group, Scottrade, etc., all start out with much less in revenues? I'm not asking to take risky loans, I'm saying maybe you should think outside the box when it comes to funding area companies. Maybe more programs like the St. Louis Business Development Fund (pooling many lenders together to lesson the risks) would help. Listen...if we as a region don't nurture some of these smaller firms, where will the bank's find these $5 million companies to lend to 5 years from now? Oh, right, we'll have RCGA steal one from Cleveland!
3. Change The Mindset In St. Louis. This is a tough task for a town that wants to know where everyone went to high school. I know this used to be a corporate town and people here just flat out don't like to take risks. Well, that's part of the problem. This is a risk-reward society. The ones that take the most risk get the greatest rewards. We've got to start embracing new ideas and take a chance every now and then. In some towns, an entrepreneur who failed at a business is seen as experienced. In St. Louis, that entrepreneur is seen as "no good," "washed up," a "failure." If we're going to encourage more entrepreneurship in the region, that mindset has got to change.
--Ron Ameln, SBM |
BBJ: The Only Economic Indicator I Need 10/19/2009
Back in the mid-90s I went out to speak to a group of individuals attending a Businesspersons Between Jobs (BBJ) meeting. BBJ has been around for years as a resource for those displaced from their jobs and looking for a new beginning. I spoke about starting a business. At the time our economy was booming and there were about 20 of us in a school gymnasium.
A few months ago I went back to speak on the same topic. There were 22o and another 50 or so standing in the back. There are many gauges for the success of the economy as we start to head out of this recession. Thankfully, most of those numbers are looking good.
The number I'll focus on is the weekly attendee list of BBJ. Until we get that number back down in the 20-50 range, we won't fully recover.
--Ron Ameln, SBM |
Business Is Always About The Fundamentals 10/18/2009
I remember the late Bill Walsh, former coach and executive with the San Francisco 49ers talking about the latest offenses in the NFL. He said, people have the "West Coast Offense, the Run-And-Shoot, the Power-I, but at the end of the day, it's the team that blocks and tackles better that always wins. Those fancy offenses are great, but you must block and tackle better than the opposing team to win, regardless of your fancy offense."
I try and keep this in mind as I hear businesses and their plans for social networking. Sometimes, I think they forget about blocking and tackling. Now, I'm not saying don't get on Facebook and Twitter and all of that. I'm involved in them. I'm just saying that your business success will come down to business basics and fundamentals. Facebook isn't going to help you get those.
In the early-to mid-1990s there were local businesses that slashed marketing budgets because with the advent of the Internet, they could pull clients in from all over the world, or so they were told. They were told they didn't need the old ways of branding, marketing and prospecting. One photographer stopped marketing and spent thousands on a website. Well, so did thousands of other photographers. The business never came.
For most businesses, the Internet has been an invaluable resource and efficiency tool. However, if you had problems selling your services before the web, you usually had the same problems after. It wasn't a cure all by any means.
It's blocking and tackling. The hype about social networking is great and it is here to stay. Just don't ignore what it takes to be successful. Sometimes, when times are tough, we search for the quick fix. Maybe we should revisit the fundamentals of business.
-Ron Ameln, SBM |
Speeding Up The Economic Recovery 09/21/2009
I just listened to an interview of Fred Smith, Founder of FedEx, concerning the economy. He's optimistic as his company has seen an increase in all business sectors the past few months. Our company has also seen this uptick.
The economic numbers are starting to perk up, and most economists agree that we are now in positive territory and the greatest economic downturn since the Great Depression is over. Now, it's time for a slow recovery. The question is: How can we speed this recovery?
Historically, consumer spending and small businesses have fueled recoveries. Hopefully, consumers will start spending.
As far as small businesses, you can count on their help only if we can get liquidity into the marketplace. Tight lending has caused many businesses to stop growth plans and others from starting businesses at all. Home equity lines were always an entrepreneur's ticket to living the American Dream. Well, tight credit and a depressed housing market have made this one of the most difficult times for small business owners.
If small business is going to play a role in this recovery, more credit is a must.
--Ron Ameln, SBM |
