Armor Express of Central Lake was selected by Northwest Michigan Council of Governments and the Procurement Technical Assistance Center (PTAC) to receive the Regional Government Contractor of the Year Award.

An array of government officials were on hand at the December 12th press conference held onsite at the Armor Express facility.

Patrick Bubin from PTAC presented a plaque to commemorate this prestigious nomination. Congressional Aide Roger Srigley read a letter of congratulations from U.S. Representative Bart Stupak.

Michigan State Representative Kevin Elsenheimer, Andy Hayes of the Northern Lakes Economic Alliance, and Lydia Murray of the Michigan Economic Development Corporation were also among the group of wellwishers.

The regional PTAC award nominated Armor Express as one of a dozen companies in the state to be considered for the Best Small Business - Government Contractor of the Year, awarded by the MEDC. All 12 Michigan PTAC's nominate one company each - with the finalist to receive the statewide award at MEDC's annual Michigan Celebrates Small Business event, which will be held next spring.

Armor Express has experienced rapid government sales growth as a result of its General Services Administration (GSA) Federal Supply Service Contract which became effective January 1, 2007.

The company opened its doors in May 2005 with 10 employees. Armor Express now employs over 80 people.

"Our relationship with PTAC has been invaluable in traversing the complex government channels needed to obtain a GSA contract," said Brian Buchanan, Armor Express GSA Sales Manager. "Additionally, PTAC's ‘bid package' assistance has been an important component in our successful attainment of several large government orders."

Matt Davis, President and CEO of Armor Express added "Our GSA contract has proven to be a powerful vehicle to get our quality products in the hands of government agencies. We really appreciate the support we've received from PTAC and the Northwest Michigan Council of Governments."

A service of the Northwest Michigan Council of Governments, the PTAC helps companies learn about working with government agencies, and assists in the process of obtaining business. Business to Government (B2G) channels present challenging regulations, red tape and technical detail - for which PTAC furnishes help, counseling, and training at no cost. The PTAC works with companies having an interest in the government marketplace - including state and federal channels - as an aspect of regional economic and workforce development.

Armor Express (www.ArmorExpress.com) is an ISO 9001 registered company located in Central Lake, Michigan, and provides quality body armor with unparalleled protection, comfort, wearability and service.

Paul and Bridgette Barbas were pursuing their dream of opening a Greek restaurant in Traverse City. The couple saw what they perceived to be a demand in the area for Greek food, and Paul had plenty of experience managing restaurants. Though they felt their business plan was solid they sought assistance in making sure they were making all of the right choices.

Paul was referred to Bryce Dreezsen, a business consultant with the Michigan Small Business & Technology Development Center (SBTDC). Hosted locally by the Northwest Michigan Council of Governments the SBTDC provides counseling, research, and training for new and existing businesses in our 10 county region.

Bryce worked with the Barbas' business plan and suggested improvements to the plan's marketing and financial components. With Bryce's knowledge of local lending sources, the Barbas were able to secure the funding needed to insure both short and long term success. Since opening this summer, Opa! has gained a loyal following with its warm atmosphere and great-tasting Greek food.

The Michigan Small Business & Technology Development Center, Region 2, serves 10 counties in Northwest Michigan. Please contact:

Chris Wendel, Regional Director
Phone: (231) 922-3780
Email: cwendel@nwm.cog.mi.us

Beth Holmes-Bozung and Greg Bozung, owners of SafetyNet, receive an award from MI-SBTDC Director Carol Lopucki and Regional Director Chris Wendel

East Lansing was the site of the Michigan Celebrates Small Business awards banquet on Thursday, April 12, where more than 700 people gathered to honor entrepreneurs and small businesses in Michigan. Included among them were Greg Bozung and Beth Holmes-Bozung, owners of Traverse City-based SafetyNet, who placed in the top three of the Main Street USA Best Small Business Award category.

"SafetyNet was honored because of its innovation in technology and growth in Northwest Michigan," says Chris Wendel, Regional Director of Michigan Small Business & Technology Development Center (MI-SBTDC). "We have been working with Greg and Beth since they began, and are proud to see that their success is providing advanced technology solutions to area businesses."

SafetyNet provides point of sale technology solutions for retail establishments and wineries. They are also a provider of outsourced information technology services.

The Michigan Celebrates Small Business awards were established to honor the lifeblood of Michigan's economy - small business. Five of the organizations that support and celebrate entrepreneurism in Michigan joined together to create the awards: The U.S. Small Business Administration - Michigan, The Small Business Association of Michigan, The Michigan Economic Development Corporation, Michigan Small Business & Technology Development Center (MI-SBTDC), and the Edward Lowe Foundation. The Main Street USA Best Small Business category recognizes a client of the MI-SBTDC in each region.

The Michigan Small Business & Technology Development Center is hosted ocally by Northwest Michigan Council of Governments, and provides counseling, training and research to entrepreneurs and existing small business. For more information about MI-SBTDC, visit their web site at www.misbtdc.org/region2 or call (231) 929-5076.

Chris Wendel

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty. 

The word entrepreneur is derived from a French word meaning to undertake. In modern American terms the word is commonly used to describe a person or business that takes the risk of taking money and making an idea, good, or service succeed.

The successful entrepreneur within a community is seen as both a business leader and an innovator of new ideas and business processes. Pretty heady stuff for someone who is likely just doing what is instincts tell him (or her) to do. To many, being entrepreneurial is just old fashioned problem solving with a little imagination thrown in for good measure.

The question then becomes: Is this entrepreneurial mindset an innate skill one is born with or is it developed? My answer would be, a little of both. I like to think that I have the ability to create and adjust in variety of situations myself. And it's not a coincidence that I come from a family of serial entrepreneurs.

My grandfather was instilled with the attitude of making the best with the conditions that exist. Born at the turn of the last century in a family of modest means and resources, he was a great example of someone with that combination of discipline and when calculated, risk taking.

A few years after starting a small engineering company literally in his garage, he put a bid in on the design of a two mile stretch of the New York State Thruway. At the time the four-lane Thruway was the original part of the Interstate Highway system in the 1950's. To his surprise he was awarded the bid despite the fact that he was a one person operation.

Instead of thinking he was in over his head and walking away, my Grandfather saw the potential opportunity and hired several contract engineers from a nearby General Motors facility. That in itself is entrepreneurial: Being able to think of ways to grow a business and choosing the right time to take calculated risk. By the way, that small garage based engineering company with guidance and risk taking from my grandfather and father, today employs over 400 employees.

In today's world the landscape changes much faster than it did 50 years ago. It's best to know your entrepreneurial strengths, look for opportunities in the market place, and have the flexibility within your company to adjust and take advantage of those opportunities that aren't too risky.

Even if you're not in business for yourself it is possible to apply these entrepreneurial principles to your own work or even home situation. Within your own world you can adopt a new attitude of doing more with less (efficiency), while looking for new ways to improve your household, job and company.

Don't be thrown by the doom and gloom of the nightly news reports. Those who can take adversity and reinvent themselves will be the ones that succeed. That in short is the true definition of entrepreneurship.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty. 

I'm asked at least a few times a week, what kind of business could make a good go of it in our region. In the startup business classes I facilitate, I ask the same of my students and come up with some interesting results. We look for ideas that have worked in other parts of the country and work through their business models for viability potential.

Before we reveal some of our favorite suggestions I need to attach a disclaimer: Just because a business has been successful in other parts of the country does not mean that it will work in the Grand Traverse Region.

Natural Foods Grocery Store
This is one that has continuously mentioned over the past few years. The model is for a store similar to Whole Foods, Wild Oats, or Trader Joes and is based on a local population base of 100,000. In addition, these types of stores locate in towns where 60% or more of the population is college educated. I still believe there is room for a natural food alternative that combines natural grocery products, organic produce, and fresh local foods, with superior service.

Brewvies
Borrowed from Portland, Oregon where someone took the idea of an old time movie house that serves beer brewed at an onsite or nearby microbrewery. Food such as pizzas can be brought in and the atmosphere is as one could imagine is loose and somewhat laid back.

Bowling Alley
Traverse City has one bowling alley but is it enough for a town of its size? Smaller alleys exist in Cadillac, Manistee, and Beulah and bowling centers nationwide have the lowest failure rate of almost any business (pawn shop are the lowest). High start up costs have likely put this out of reach for aspiring owners but plans for a new bowling center is on the boards in an area south and west of Traverse City.

Family Fun Center
Local parents clamor that there are few places for parents to take their kids for entertainment. While Chucky Cheese seems like a natural for the region, the company is privately held and would consider it risky to open with a limited population base.

Drive Home Car Service
The idea here is to provide a service that can pick you up at a restaurant or drinking establishment when one has, what is the expression, tied too many on? The service takes you and your car back home instead of you risking the lives of others and a potential DUI. This business does exist in a least one other areas with some success.

One can see that the ideas are varied and analyzing them individually is a challenge. If you have a great idea for a business that you'd like to share send me an email at cwendel@nwm.cog.mi.us. We'll share the results and break the concept down over the next few weeks.

A Way to Attract Jobs or Corporate Welfare?

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Banter abounds concerning the use of taxpayer monies for spurring on economic growth. The use of tax abatements, tax breaks, and financial incentives to the outsider may appear in the broad view to be a waste of our valuable tax dollars. Yet if our local and state economies operate strictly by the non-government free enterprise credo, jobs will continue to flow to the states that take a more aggressive stance.

The recent overhaul with the Michigan Business Tax replacing the Michigan Single Tax will help retain some existing of our existing area businesses. However, for the next few years the State of Michigan budget situation will not allow business tax rates to become attractive to potential out of state employers.

In a perfect Adam Smith (the famed Scottish economist, writer, and yes, government worker) world, we could do away with taxes and incentives and leave private business to the forces of the free market system. Unfortunately, that horse left that barn long ago and a heated state versus state competition exists for any company that shows the promise of growth and decent paying jobs.

If we as a state decided to not spend another dollar on economic development and let the market forces take over, there would not be much of a market left. Neighboring states like Indiana already offer lower tax rates and incentives that Michigan is just now starting to compete with. In order to compete on a national perspective, Michigan has to also overcome the stigma of negative national media coverage and the difficult transition into alternative technology outside of the auto industry.

The Michigan Economic Development Corporation (MEDC) uses its resources to retain, promote, and attract small, medium, and large companies to Michigan. Tools such as site location assistance, job training grants, and tax abatement assistance do come with a cost but if these components were not available, our economic future would be even more perilous.

The MEDC also co-sponsors a promotional event "Michigan's 50 Businesses to Watch" that highlights emerging Michigan companies, is an advocate for other state business development programs, and houses the Travel Michigan, the state's tourism agency.

Without tax money and state resources being spent on economic development, we as a state will be out of the picture in terms of job attraction. If incentives are not offered in the form of tax abatements, loan programs, and promotion, then we can wave our future growth potential goodbye.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

We hear a lot of talk locally about the words "value added" especially in the area of agriculture. While "value added" may be more of a square to fill in a buzz word bingo game, the term has relevance with our area's burgeoning wine and farm businesses.

Definition: Increasing the productivity of a farm by:

1. Growing a commodity for a special market: Adding value to an agricultural product in a non-traditional way can command a higher market price. Selling bib lettuce to a local restaurant highlights that the product is produced in the local economy which enhances the perceived value to the end user.
2. Changing the form of a commodity is packaged before it is marketed: Transforming raw agricultural products into another product by processing. Frozen tart cherries can be cooked with sugar, pectin, and a small amount of fruit liquor producing a premium priced dessert topping.
3. Changing the way a commodity is packaged for market: This includes packaging that features convenient packaging (smaller sizes or "ready to go" gift packs), or decorative and informative packaging that enhances the presentation and the perceived value of the commodity.
4. Growing a Commodity for a Special Market: Producing products for a certain ethnic or cultural market. Organic foods fit this category as products that are purposely grown to the growing health oriented market.
5. Adding a New Enterprise: For the traditional farm this would mean the addition of a road side market with features such as a petting zoo, corn maze, wedding facilities, and bed & breakfast.

Source, USDA Natural Resources Conservation Service, AE-4 Importance

Michigan's economic situation has been a major topic of discussion of conversation in the past few weeks. But just how bad is the economy of Northwest Lower Michigan compared to the rest of the state or the nation? Unemployment figures show that many of our counties have lower unemployment rates compared to southeast Michigan where the auto industry has contributed a large number of job losses.

Circumstances in the Detroit metro area do have an impact on secondary automobile suppliers here in our region. Many of these companies have diversified into making parts for non-automotive companies. Like any other entrepreneur, the challenge for many companies during trying times is to create solutions and adjust to the conditions as they change.

The building industry is feeling the brunt of national and state economic conditions. The decrease in building permits for Northwest Lower Michigan is likely a combination of lower employment for the year round population, some foreclosures due to adjustable rate mortgages, and fewer downstate residents purchasing or building seasonal homes.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Many of the business lessons we learn come from the voices of our mentors. I catch myself sometimes uttering sage words of advice that came from my father including the phrase "You have to do well before you can do good."

With that engrained in my mind over the years, I have been a firm believer in making a company financially strong before giving much back in charitable or socially conscience contributions. As cut and dried as that seems, I've seen plenty of exceptions lately that have altered my point of view.

So as a business owner, when is the right time and the right way to give back? The most effective company programs for community involvement have some element of employee initiative. It can be something simple like employees coaching their kids' teams and evolve into the company sponsoring the kids' team, and beyond.

If you or your company's employees have a local charitable group or cause that they care for, then the business can show an effort (monetarily or otherwise) in that direction. There are plenty of local examples of imaginative alliances made between business and non-profit groups. Grand Traverse Pies donate a portion of pie sales to breast cancer research, area businesses decorate trees for the annual Festival of Trees, Traverse City State Bank sponsors a 4-H kid's steer in the Northwestern Michigan Fair.

The idea is to donate, endorse and be directly involved with a charity at the same time. It's not just saying that your company gave money to a charity or social cause; it's having a true company and employee stake that demontrates true dedication to that charity.

One local company founded their company in the premise of being socially responsible before all else. Higher Grounds Trading Company built its company with the idea of selling fair trade coffee from villages in Central and South America, and Africa. Owners Chris and Jody Treter wove the mission of social good into their original company business plan and have stuck to it ever since.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

"Relaxation is an elusive goal, despite the increases in productivity that should make it attainable for all." Gary Cross, professor of history at Penn State University, and the author of "An All-Consuming Century".

Time for most of us is an undervalued resource, and something we don't use efficiently. For one reason or another the demands and expectations of today's society seems to make time scarcer. About 25 years ago experts predicted that by 2000 technical breakthroughs would allow us to have plenty of leisure time and the traditional 9-5 work week would allow time for other things.

Well a funny thing happened on the way to time nirvana. We all seem to run ragged with ever growing obligations and expectations. So why are we so off course with this time issue? And how can we form a strategy to use our time more effectively so we aren't constantly chasing our tails?

Self-confessed serial entrepreneur and ultravagabond Timothy Ferriss comes up with some answers to this dilemma in his book: "The 4-Hour Work Week." What Ferriss lacks in credibility (he claims to be a world-record holder in tango) he makes up with great techniques for eliminating parts of one life that suck up time.

Ferriss applies a unique combination of the 80/20 rule to one's personal time schedule (Limit tasks to the important to shorten work time) and Parkinson's Law (Shorten work time to limit tasks to the important.). He also suggests useful steps to avoid wasting time performing work tasks so your time can be spent on the things we really want to do.

Simply dedicating time to one task and finishing it instead of juggling multiple projects, (taking phone calls, and reading emails) can dramatically increase one's productivity. Speaking of emails, Ferriss suggests turning off the automatic email refresh on your computer and looking at emails at the beginning and the end of the work day. Otherwise too much time is spent reviewing low priority messages that serve as constant interruptions. Place an automatic reply to your email recipients saying that you will not respond to their emails until the end of the day but that you are available if the need is pressing on your work or cell phone. Ferriss says this simple step will deter many junk and joke emails and make people reassess how they are spending their own time.

Think of other ways you can streamline your work situation to be more task oriented and eliminate the peripheral distractions and interruptions. Closing your office door one hour a day to focus on and finish that one pressing project that would otherwise take a few days to complete can build momentum towards bigger and better accomplishments.

Prioritize what is important and put off the sudden urge to immediately write back and respond to that interoffice email with your contribution to Friday's office potluck. If the office interruptions are unavoidable then ask for or use flex time to work elsewhere, come in early, or stay late to dig in and dedicate quality time to an important prioritized project.

The overall objective is to leave more time for other things in life which according to Ferriss includes living more and working less. We should at least all have the time to think about that.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Navigating the competitive landscape in an ever changing economy is a challenge for any small business. It only make sense that one has an honest assessment of who the competition is before compiling a market plan that provides a clear competitive advantage.

So exactly who is your competition? If you run a restaurant it isn't just the other restaurant across the street or the other dining establishments in town. Your competition can be defined as any alternative that deters customers from purchasing your product or service. In this case your restaurant is also competing against customers who choose to go to another restaurant, cook at home, buy take out food at a store, or eat leftovers.

For other traditional businesses the competitive model has drastically changed. It now includes mail order and web based businesses as well as out of town conglomerates that establish big box stores built to compete on price more than convenience.

Assessing your competition affects essential choices your business makes including its location, product/service line, infrastructure, and target audience. Being realistic about the number of customers who will favor your product or service over a competitor goes a long way in determining the financial success of your business model.

Many people I talk to who are starting businesses don't think in these terms and believe in what I call the "Field of Dreams Theory." As you can guess this premise follows the idea of "If you build it they will come." In other words, many business owners feel that they can simply open their doors and the customers will come flowing through the doors like trained pigs. The result is inflated sales projections and a heavy dose of reality when they realize the true competitive nature of things.

So the first step is an honest assessment of who your competition is. Putting yourself in the shoes of a prospective customer can help you to create a more realistic picture. Surveying potential customers with a formal or informal focus group can work wonders to understand what service or particular product you can offer that would fulfill a pressing need. People love to be candid about their customer experiences (think again of restaurants), so the focus group discussion can reveal competitors' weaknesses and potential products or service gaps that you can exploit.

Next, imagine new ways of creating a competitive advantage. This can be achieved with superior products (cutting edge, stronger, more durable, easier to use), exemplary customer service (assessable, patient, attentive, and problem solving) and price (competitive, but not always the lowest).

All of this is done under the context of efficiency and the desire to maintain a long lasting and profitable business. Too many times small businesses get caught up in competitive battles where price becomes the preferred ammunition. Competing long term on price alone can divert entrepreneurs from the market niche that formed the initial concept of their business.

Maintaining the balance between looking in the rear view mirror at competitors and focusing ahead on your own strategy can be difficult. Dwelling too much on competition can remove focus within an organization, while not having enough competition can drag a business into a realm of complacency.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Marketing your business requires a comprehensive program that involves more than placing a yellow page advertisement in you local phone book. Putting your company in front of potential buyers on a consistent basis means that you have put thought and applied common sense into your advertising effort. Here's how it should work.

Branding/Identity: In the beginning your organization should brand itself with a name, logo, slogan, color scheme, type font, and message. Your branding effort sets the tone for the image you are trying to portray. Once established you brand identity should be consistent so customers or potential customers can quickly recognize your advertising efforts. Your developed brand is used in advertising, letterhead, business cards, labels, packaging, website, brochures, and in any other way you publicize the business.

Advertising: If the image you are trying to portray is derived from the branding effort, the choices you make in advertising should take the image and form it into a message that will convince customers to purchase your product or service. Too many times advertising dollars are spent in ways that don't have a measurable response or are blanket campaigns that try to be all things to too broad of an audience.

Initially you should have a good idea of who your targeted audience is by interest, income level, age, geographic location, or gender. Zoning in on this audience with advertising efforts that reach them specifically will over time increase your customer base, build customer loyalty and increase sales. It's best to avoid blanket campaigns thrown out to the mass public thinking that "everyone" is your customer.

Public Relations: Your role in the community is a key component in an organization's marketing program. This can include newsworthy press releases sent to local media outlets. Newsworthy has to be an event or story that would have significance to the general public, not some blatant self promotion of a product.

Teaming up with a charitable or non-profit organization for a community oriented group can be another way to garner positive public relations. Many times it's best if these efforts come directly from employees and some of the causes and charitable groups they already support. Showing company support by cosponsoring an event or effort strengthens employee morale while improving your company's image in the community.

Customer Retention: Perhaps the most overlooked part of a marketing campaign is customer retention. It's estimated by several business experts that the majority of American businesses spend twice as much on advertising than on customer service. Putting tremendous amounts of money into an advertising campaign is ludicrous if your company is not able to take care of the customers it already has. Customer retention begins with a carefully crafted customer service policy that empowers employees to quickly solve customer problems and having a consistently reliable service those customers can trust and rely on.

Putting all four of these parts (branding, advertising, public relations, customer retention) together will produce a marketing plan that will over time be both cost efficient and effective.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

There is a way to eliminate all of the risks involved with starting a small business, you can improve your chances of success with good planning and solid preparation. A good point is to evaluate your personal strengths and weaknesses. Consider carefully the following questions.

Are you self-motivated?

It will be up to you to develop projects, organize your time, and follow through on details If you tend to procrastinate you may find yourself struggling to catch-up and miss opportunities.

How well do you get along with different personalities?

Business owners need to develop working relationships with a variety of people, including customers, vendors, staff, bankers, and professionals such as lawyers, accountants, and consultants. Can you deal effectively with a demanding client, an unreliable vendor or a cranky staff person?

How good are you at making decisions?

Small business owners are required to make decisions constantly, often quickly, under pressure and independently.

Do you have the physical and emotional stamina to run a business?

Business ownership can be challenging, fun, and exciting. But it’s also hard work. Can you handle 12-hour work days six or seven days a week?

How well do you plan and organize?

Research indicates that many business failures could have been avoided through better planning. Good organization of financial information, inventory, production, etc. can help avoid many pitfalls.

Is your drive strong enough to maintain your motivation?

Running a business can wear you down. Some business owners feel burned out by having to carry all of the responsibility on their shoulders. Strong motivation to make the business succeed will help you survive slowdowns and setbacks.

Many old school experts claim that borrowing from one’s self is not only better than going to a bank for funding; it is also more fun. This idea of saving may seem antiquated but it is still a superior choice over borrowing. So why don’t people save first and then start out on their business quest?

Our society today does little to advocate the benefits of saving. We are bombarded by media messages to purchase bigger houses, newer and larger cars, and super sized meals. The result is that many of us end up living far beyond our means. The latest upheaval in the housing market shows how far people are willing to literally mortgage their futures for the satisfaction of now.

Here are some ways to position you for a future that includes self-financing of a business:

1. Pay your self first and remember that a part of what you make is yours to keep. This includes putting together a personal budget with at least 10-20% or more taken off the top that goes directly into savings.
2. If the 10-20% seems like unattainable then it’s time to track your spending for a month or two and analyze what you are wasting money on. Items such as daily lunches out, the morning espressos, expensive vacations, and designer clothing purchases add up over time, and delay the accumulation of savings.
3. Eliminate long term debts. This could include selling some of the toys like boats, jet skis, and expensive cars and that carry debt payments. 
4. Try to save enough money over time to cover the majority of your business start up costs. If you have to borrow from the bank, make it a minimal amount that won’t saddle you with a long term debt to service.
5. Make a savings goal and a time objective for the time when you will have enough money to open your business. In the meantime, use the savings time to get organized, write a thorough business plan, and fine tune your business concept.

Starting a business with your own money can be done, and will give you a tremendous advantage against your competitors who have the additional debt load added to their start up costs.

For example if you needed $100,000 to get started in a business and borrowed the entire sum from a bank at 8% over a four year period you would pay $17,181.92 in interest. If you financed this same business yourself, that $17,181.92 could be used for purchasing new products (that generate additional sales), or the purchase of newer equipment (that could make the business run more efficiently.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Marketing and advertising have evolved tremendously over the past few years. The advent of the computer and more recently the internet has moved the focus of marketing towards measured responses from targeted customers most likely managed by a computerized database.

Using technology gives small businesses advantages that entrepreneurs of 20 years ago could not imagine. But emphasizing technology too much can adversely impact your company’s ability to build loyal customers. It is important to remember why marketing your business today still has to do with elements that combine both human relationships with technical enhancements.

The human side of business is making a comeback with companies that realize customers crave something novel; interaction with another person. Case in point is Netflix the national video chain that distributes its movie DVDs through the mail with customers who choose their movie preferences online. When a competing video chain Blockbuster recently decided to get into the video-through-the-mail business Netflix reacted in an interesting way.

Even with customers who were used to ordering movie selections online, Netflix quickly assembled a call center in Beaverton, Oregon where customers reach a live human to solve their problems and complaints. Most companies would have gone the other way with this and left customer inquires to impersonal emails responses or at the most an automated call center (“Your call is very important to us and will be answered in…?”).

Netflix sought out Beaverton for its generally friendly workforce (something the town actually promotes), and trained its new staff to solve customer problems while placing a high priority on retaining customers. The result has been improved customer satisfaction and a larger market share for Netflix.

There are other ways to use technology to gain a more personal touch. Combining technology and customer service with a blog web site can boost word of mouth advertising for some businesses. A company blog can provide commentary on a particular subject that you are an expert in, give immediate updates, and be a place for customers to directly offer their input and opinions. The objective here is to attract people who can relate to what your business specializes in and create a buzz with like minded consumers.

The blog site along with an established web site gives your business the opportunity to exist in a more public way than with traditional advertising. A blog costs virtually nothing to set up and can be a catalyst for building a strong reputation in your particular industry.

Another idea for growing interest is a public event held at your place of business that highlights your specific market niche. If you’re a retail store, have a free seminar to demonstrate a new product line or service, or an open house that simply demonstrates what your business is all about. Event promotions also give you the opportunity to meet your customers face to face and have everyone understand each other from a more human perspective.

As far as existing technology is concerned, don’t forget to maintain what is still considered traditional customer service. This includes simple (but all too often ignored) tasks such as having a real person answering the phone, hiring people who are acutely aware of customer needs, and regular customer surveys to that measure levels of satisfaction (or dissatisfaction).

Embracing new forms of technology and enhancing them with superior customer service can take your business far. And the best part is that it can be done without spending a fortune.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Ask many a business owner if they have ever written a business plan and the response is many times the same. The natural reaction is either "Yeah, I know probably should", or "No, I haven't had time to get around to it". It's surprising how many businesses (some of them successful) that have never written a business plan and have no aspirations to do so. They have gotten along just fine in the past and recognize that they probably should write one, but are too wrapped up in the day to day operation of their enterprise to go through the process.

So why do you need a business plan? Most business owners realize that a business plan is needed to arrange for financing with a bank, investor, family member, or other funding source. This is especially the case with a start up business that requires funding beyond the accumulated savings of the aspiring owner.

What gets lost in the shuffle is how writing a business plan makes the owner think through the logistics of a developing a business concept. The process of methodically completing the sections of the business plan insures that the business has the market, personnel, and cash flow to survive over the long haul.

Once written, a business plan should be a working document, not something that is shoved in a drawer to collect dust. It's important to look at the plan's benchmarks and the financial goals and objectives on a regular basis. Creating and adjusting from the original plan is something a business person should share with investors, business partners, and employees at least once a year.

Here's a recommended template for writing the narrative or written portion of the plan:

www.score.org/downloads/Business%20Plan%20for%20a%20Startup%20Business_July.doc

Following the narrative is the financial section of the plan. Spread sheet templates can take expenses and revenues and place them into a format that can be analyzed to estimate cash flow and viable growth. Many of us think that bankers simply skip the written narrative and cut to the financial section, but a good banker will appreciate both.

Writing a through business plan and then deciding not to go into business is a lot cheaper then starting a business and then learning the hard way from the experience. When borrowed funds and hard earned savings are on the line, then "planning" ahead is certainly worth the effort. It's no surprise then that lack of proper planning is mentioned as a prominent reason why businesses fail.

Don't ever make the writing of a business plan any more difficult than you have to. Stick to the template and ask for help from your local SBTDC or SCORE office for assistance when needed. That's not to say that writing a business plan won't require work from you, because it will. The eventual reward is clarity and a framework that can guide your business into the future with more certainty and peace of mind.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

When pondering a new product or service, starting a business, or buying a business, researching the market is imperative to success. With the advent of the internet there are endless sources of information that can help substantiate your market niche. Plenty of other sources are available from the government and trade associations. The key is to sift through and find information that is pertinent and detailed to your situation.

First is to fine tune demographically who the targeted market is for the product or service. Your initial perception of this market may change as your business gets up and running. Think of the snowboard first targeted in the 80's to teen age boys. The market then splintered off into secondary markets including teenage girls and older men who still believed they were teen age boys. Today it's safe to say that snowboards are accepted and used by a broad section of the entire population, but at first the focus was a small targeted group.

It's one thing to have a strong gut feeling about a business idea, but market research pins down a true target market and solidifies the concept's viability. The idea is to identify how many consumers of a concept exist in a specific geographic market. If it's a product that will eventually be mass marketed to the public, it may be best to test the concept economically to a more localized audience. Once direct and indirect competitors are figured in the mix, we have a better gauge for long term survival.

Research information can also help when opening a business location, or choosing between several different locations. Both the Michigan Small Business & Technology Development Center (SBTDC) and its host organization, Northwest Michigan Council of Governments, have access to useful localized data that can assist with research related questions.

For example, say we decided to produce a high quality barbeque sauce that is made from your grandmother's recipe. At first we roughly define the target market as men and women between the ages of 30 and 60 that like, and will pay a premium price for, good tasting, premium specialty foods. Now comes the research part.

Through the SBTDC's research staff, we can find what's called the Lifestyles Market Analysis for Northwest Michigan. This is a useful breakdown of buying behavior for the region from Petoskey south to Cadillac and west to Manistee, including Traverse City. The annual survey states that 16.3% of the local population has a strong interest in gourmet cooking, or 40,300 potential regional customers. This percentage is much higher than the national average, meaning the local market is a good place to start for marketing a gourmet product.

What if the barbeque sauce sold so well that we wanted to open a retail store to sell the barbeque sauce and some other gourmet items? A ring analysis from the SBTDC could provide specific demographic, lifestyle, and growth information within a 1, 5, 10 or 25 mile radius for a certain address. By comparing different locations, a more educated decision can be made for choosing the final store location based on which location best fits your targeted audience

There are plenty of other ways to assess the viability of a business idea or location including traffic counts for a location, financial comparisons for similar business types, and projected population growth. Here's a short list of sources that are valuable to a new or existing business:

Northwest Michigan Council of Governments: Data for the counties, townships, cities, villages and schools located in northwest lower Michigan: http://www.nwmcog.org/NWData.html

Michigan Small Business & Technology Development Center (SBTDC): Specific information for businesses including ring site location analysis and lifestyle information accessed by the SBTDC in cooperation with the Seidman School of Business at Grand Valley State University: http://www.gvbizinfo.com/InformationResources.asp

State of Michigan Department of Transportation: Average daily traffic counts for state highways in Michigan:

http://www.michigan.gov/mdot/1,1607,7-151-9622_11033_11149---,00.html

Federal Statistics: A comprehensive list of detailed information provided by the different agencies of the United State Federal Government: http://www.fedstats.gov/

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

We're all familiar with major franchise businesses like McDonalds, Subway Subs, and 7-Eleven. Today there are more than 3000 franchised businesses in the United States that directly provide more than 10 million American jobs. Franchises range from the recognizable national icons to up-and-coming stars like Stone Cold Creamery and Quizno Subs.

A franchise is a license or marketing agreement offered by a company (the franchisor) to an individual or firm (the franchisee) to operate a retail, food, or service business. The franchisee agrees to pay the franchisor for use of its brand name, products, services, distribution channels, marketing methods, and company support.

Franchise businesses are not as prevalent in Northern Michigan as in larger urban areas, but there are sound reasons why a franchise can be a better alternative to starting a business with one's own unproven business concept.

Buying into a franchise can be a great choice for someone with the strong urge to go into business, and well positioned financially to take the plunge. Franchising can minimize potential risk because one is buying into a financial and operational system that has proven itself over time in multiple geographic locations. A popular national franchise entering an untapped local market can mean quick market penetration and public acceptance.

So which franchise does one choose? The first step is to evaluate a franchise business that can draw on your previous work experience, hobbies or interests. A big name franchise restaurant may be a huge potential money maker, but if you don't have management or restaurant experience and don't like working endless restaurant hours, then it's best to look elsewhere.

There are franchise opportunities in virtually any type of business, including fitness centers, niche gift stores, car repair stores, and home based businesses. Publications such as Entrepreneur Magazine www.entrepreneur.com and Franchise Market Magazine offer great sources for a variety of franchise choices.

When evaluating franchise opportunities take a close look at company profitability, the company image, how saturated the regional market is, and if the industry has already reached its growth peak. Despite the advantages, securing a franchise in a specific geographic territory can require an upfront fee of anywhere between $5000-200,000. In addition most franchise companies take a percentage of gross sales for marketing and other expenses.

Financing a franchise opportunity is similar to finding money for any other business, with prospective owners arranging for financing with saved money, family money, or borrowed funds from a bank. These all require a well written business plan with financial projections. Fortunately the franchisor can save valuable time by providing specific financial and demographic information from other successful franchisees.

Don't forget to have enough capital lined up for start up costs and for a cushion for those first few months of operating expenses after the business opens. When locating a prospective franchise in Northern Michigan make sure to plan around the seasonal population shifts and the inevitable slow winter months. This is something that may be lacking from franchise models in other parts of the country.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Entrepreneurs are constantly making decisions involving tasks that they can perform themselves versus hiring expertise. For example a business owner cannot pretend to be a lawyer, and fully understand legal issues and their potential liability. Think of it this way, you don't try to fix your own teeth, you go to a dentist. The same goes for any type of professional advice that is outside your realm of knowledge. The cost for some professional services may seem high, but that money spent now can save you further down the road.

If you are just starting a business or have been in business for awhile, having a strong team of experts is paramount to long term success. A strong manager should focus on the areas of the business they are strongest, and learn to delegate other tasks to someone who is adept in those areas where they lack knowledge. Here are the essential elements of a solid professional team:

Attorney: The expertise of legal counsel should be used when deciding on the legal form of the business organization (sole proprietorship, partnership, LLC, or corporation) as well as for contracts, agreements and general legal consultation. Rent and purchase agreements should always be looked over by a lawyer before being signed off by the business owner.

Accountant and Bookkeeper: Setting up a system to monitor cash flow, bank statements, and inventory is an essential part of maintaining a business. An accountant or bookkeeper can assist with setting up a QuickBooks or other accounting system that is best suited for your type of business.

The idea is to take information from sales, expenses, and performance and place this data into a format that can be used to gauge success. The bookkeeping system produces cash flow statements that can measure monthly your business' performance against established goals and previous history.

An accountant can offer even more expertise with changes in tax codes and counseling on how tax regulations effect your business situation, as well as preparing your annual tax return.

Banker: An established bank relationship helps greatly when it comes time to borrow money or to expand a business. A banker can also serve as a type of business advisor; with their experience they have seen businesses that have succeeded and failed. Banks also offer merchant accounts for accepting credit cards and investment and saving programs for small businesses.

Insurance: Finding the proper insurance coverage required by law for liability, property, worker's compensation, and other applications can be a daunting task. A commercial insurance company will offer a variety of insurance carriers and policies that can protect you. Make sure you have an agent that specializes in business insurance, and don't be afraid to compare coverage and quotes with more than one agent.

Mentor: Imagine having someone who has vast experience in the type of business you are trying to succeed in right now. A mentor is a wise and trusted counselor who has experienced many of the mistakes you don't necessarily have to make yourself. SCORE - a group of experienced and many times retired business owners - can be a good source for finding a mentor.

Advisory Board: Many businesses have an advisory board that includes professional team members along with company investors, a financial planner, and trusted friends. Your advisory team can act as a sounding board for new ideas, and can work on strategic planning issues with you. It's important to have people in these roles who are fully honest and don't sugar coat things. This group can meet several times a year or on an as needed basis to address pressing company issues and to plan objectives for future success.

by Regional Director, MI-SBTDC, Chris Wendel.

Many small businesses either don't collect customer information or they don't use the information once they have it. When getting started, there are some steps to follow to insure success in developing a useful customer database.

1. Begin by simply building a computerized list with customer contacts that you already have either in hard copy or computerized formats.
2. Over time, add names from mail-orders, store shipments, information inquires, checks, and web site orders.
3. Continue to add names and email addresses from customers that are genuinely interested in knowing about your company and its products or promotions. This can be done with a sign up area near the point of retail purchase or on your company website. The idea is to keep customers interested in anticipating new products, services, workshops, and money saving promotions.
4. Some customers will be reluctant to handover their home addresses and email addresses. A small item give away combined with an in store promotion works wonders to reduce this resistance.
5. Asking for both email addresses and traditional mailing addresses should be encouraged. The trend is changing towards sending email updates and offers, but for most customers the potential impact of a direct mail piece is still greater than an email offer. Combining both methods helps over time to build a responsive customer database.
6. A postcard mailing with regular first class postage should be sent to your customer mailing list once a year. With a first class stamp (now 26 cents), the postal service will send updated address corrections for those customers who have recently relocated. These changes can then be integrated into our mailing list to keep it fresh.

There are a number of choices when setting up a computer-based database. You can create a simple system yourself, by using a software package such as Microsoft Access, which could fit in with your current computer system. Other off-the shelf programs such as "Mail Order Manager" have applications that can integrate existing accounts and customer information from store receipts and credit card purchases.

Once a system is in place, the information gathered can be used to gauge the success of promotions and offers, identify geographic "hot spots" where customers reside, gather customer input on your company's customer service, and to identify who your most profitable customers are.

A well maintained customer database helps you stay in touch with your customers and makes them feel more loyal to your business. In Northern Michigan where many of our buyers are seasonal residents and visitors, this emotional connection works well to keep these good customers in the fold, and creates significant off season mail order sales when they are living at their primary addresses.

by Regional Director, MI-SBTDC, Chris Wendel.

Although most of us of think of Northern Michigan as a healthy vibrant region, many of the kids growing up around us aren't that healthy.

Recent statistics bear out that 40% of Kindergarten through sixth grade students in Traverse City Public School District are obese or at risk of obesity. Another recent study showed that 40% of randomly selected students were below grade level for cardiovascular fitness.

Kids who do not engage in frequent physical activity are much more likely to suffer from obesity. Gone are the days when children played outside and exercised all day. The advent of computers, video games, and other technology has resulted in fewer calories burned. Combine this with on-the-go family life styles and higher calorie fast food meals and it's not surprising that many of our kids are overweight.

Okay so what does this have to with business? Well, not too far down the road, today's children will be our workforce employees. If this generation of children enters their working years with existing health issues, the potentially higher insurance and health care costs will be absorbed with higher rates for businesses and employees. Keeping us all physically fit is preventative medicine that will save us all in the future.

After being ignored in the past, childhood obesity in Northern Michigan has come to the forefront in discussion and with new local fitness programs. Fortunately there is now significant progress being made through the efforts of several community related groups.

"Every Steps Counts," a group operating from the Traverse Bay Intermediate School District, has used a recent $1 million federal grant to advocate, educate and increase physical activity in school age kids. Improved school nutrition and nutrition education is stressed with lunchtime activities, while fun and sometimes non-traditional physical activities have been integrated into the school day.

"Let's Get Moving" is a Northern Michigan group that teams up with sponsor organizations and local government with an annual program that promotes walking or other physical activities for a 100 day period. Adult, children, and family participants track their "aerobic miles" in a friendly competition between communities, businesses, schools, and groups.

With both "Every Step Counts" and "Let's Get Moving" the objective is to make exercise an integral part of our daily lives, leading to a lifetime of healthy choices and less burden on communities and businesses.

by Regional Director, MI-SBTDC, Chris Wendel.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

There's a new way to get to work and NMTA wants you to know about it. NMTA (Northern Michigan Transportation Alliance) is a collaboration of BATA and more than 20 local service agencies and businesses joining forces to provide transportation alternatives for people in the Grand Traverse region. This new endeavor provides an opportunity for all of us to share rides and for those of us temporarily without a ride to work to find alternative transportation.

Notice that I referred to "us" when talking about NMTA. For too long many of "us" either thought that commuting was for other people, something that no one in the area did, or just plain inconvenient.

The truth is that 30% of employees who work in Grand Traverse County commute from outside of the County. And 89.1% of the County's workforce drives alone to work in their own cars. This lack of cooperation results in traffic congestion, delayed commutes, and inefficient gas consumption.

NMTA is making a serious effort to address this issue by launching a new web site www.NMride.net. NMride.net offers an organized online ride share board for commuters who have similar work routes and schedules in the Traverse Bay region. The site is easy to navigate, provides a map reference, and includes useful tips on etiquette, safety, and splitting travel costs.

NMride.net also provides transportation connections for those who have limited alternatives for getting to work. Imagine a scenario where one of your vehicles is in for repairs and there is no bus route or neighbor nearby that can get you to work. By accessing the ride share component on the NMTA web site, you can potentially find a solution to an otherwise challenging situation.

Or think of younger workers, single parents, older folks, and those who can't afford a car, insurance and rising gas prices. Many times NMTA can provide both short and long term transportation solutions that result in job stability, which benefits both the employer and employee.

The program also addresses the needs of companies located in smaller outlying towns that have issues attracting employees. These employers in rural villages could find solutions for workers as they "reverse commute" to their jobs.

As the NMTA commuting program becomes more accepted, it's projected that NMride.net will be way to attract new companies from downstate or out of state where smart commuting is already a way of life.

So exactly how does the program work? If you are an employer, give your workers access to the web site. It is one way you can help them find reliable transportation. The new NMride.net web site is your best bet for you and your employees to know who to contact about starting or joining a car pool and where to go for questions about transportation.

With over 1200 companies with 10 or more employees in our region, there are plenty of opportunities for all of us to spread the word about the advantages of smart commuting.

by Regional Director, MI-SBTDC, Chris Wendel.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Going into business for yourself can mean a major shift in areas that you may have never encountered as an employee. One has to do with going out and getting people familiar with your organization, service, or product. Networking joins people together to exchange information with others, with the desired result of making contacts that will eventually result into increased public awareness, goodwill, or additional sales.

Many people have a difficult time with the process of getting in front of others and telling them about their business. Your business is a very personal entity -- after all you thought of it, making it by default personal. Putting yourself out there and having others judge your business can be challenging. So here are some ideas to get you out your comfort zone and to make the promotion of your business easier.

1. Work on an "elevator speech" that outlines an idea for a product, service or project for your company. The name comes from the concept that the speech should be delivered in the short elevator ride, usually 20-60 seconds. In its final form the well practiced elevator speech should naturally work into a conversation.
2. Take advantage of networking events where you can make contacts and spread the word about your new venture. Most local chambers of commerce sponsor a monthly "Business after Hours" that is a recommended event for meeting and comparing notes with other business people.
3. Go an event with a business partner or friend, especially if this is a new experience for you, or if you are new to an area. If the roles are reversed and you are more of an established extrovert, take the time to invite someone who could benefit from an introduction to others that you already know.
4. Take along plenty of business cards. Exchanging them with potential new customers or champions is invaluable. Your accumulated business cards can be referenced later for follow up contact (and to keep everyone straight in your mind).
5. Most importantly - Relax. Networking is supposed to be a low key way of making business contacts and forming potential alliances. Be fully engaged but also have fun. With a consistent effort the time investment you make now will pay off for you and your organization further down the road.

by Chris Wendel

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Business people behaving badly, sounds bad doesn't it? As customers all of us run into situations where people don't exceed our expectations or even worse make us feel downright insignificant. Be it the disinterested cashier that can't muster a simple "Thank you," or the handyman who doesn't show up on time (or at all) each of us has our share of customer service horror stories.

Admittedly, I'm always looking out for good and bad customer experiences. Like many of you, I keep a mental list of businesses that I've placed on "probation" (I'm not going there for awhile), "double secret probation" (Why did I come back here again?), and "boycott status" (I'm not ever coming back again!).

On the flip side I will be almost reverent to a company that I can count on for a consistently positive experience. There's a lot to be said for a business that does their work well, and have people working who obviously enjoy what they are doing.

With plenty of focus put on advertising and marketing, every business should have a well thought out plan for realizing and providing positive customer experiences. The objective is to retain the customers you have, spread positive word of mouth to others, and build a team of employees that understand and practice superior customer service. In short, knowing what others think of your own customer service is vital to growing your business.

The following factors are paramount to superior customer service:

• Management that understands that their most important customers are their employees.
• Building a friendly and loyal staff that knows that their ideas and opinions are valued and if good, will be implemented by management. Many times being a stake holder in the operations of the workplace is a higher priority to employees than the wage they are paid.
• Writing your own rules of customer service. A good place to start is with the "Golden Rule" or better yet, the way your elders taught you to treat others with dignity and respect. The thought of spreading good Karma also works here.
• Have a system for gauging your customer's happiness. This could be a simple survey (reply card or online), or having employees, customers and friends who are blunt with you about what happens at your business when you're not around. These methods work better than realizing at year-end that your sales have decreased, and then wondering if your customer service is up to snuff.
• Making clear what you t