|
Contents
SCORE
Helps Habitat Warehouse Succeed in Business
SCORE
Counselors Win Microsoft $10,000 Technology
Makeovers
Kudos for Missouri dairy farm
Successful
Business by Design
You and Your Bank- A Partnership for
Success
Money to Grow On!
Eye on Expansion
Legal
Potholes Can Make E-Commerce Bumpy
Ask an Expert
SCORE Association Reaches Milestone-7
Million Clients Served
SCORE Association Forms Alliance with
White House Initiative
Top of Page
For Immediate Release
Contact: Edward Fritsch,
efritsch62272@everestkc.net
SCORE
Helps Habitat Warehouse Succeed in Business
Retired
Volunteers Put Retail Savvy to Work
Aiding ReStore Warehouse in Kansas
City
Kansas
City,
MO
–
When Heartland Habitat for Humanity began making plans to open a
ReStore warehouse
in the Kansas City
area, they were prepared to go out and build a corps of volunteers,
elect
leadership and partner with local companies and organizations for
donations and
philanthropic support.
But
Kansas City SCORE Chapter 19
member Ken
Bayer
spotted something else ReStore needed: retail
business guidance
to get the warehouse
up and running successfully. Bayer, a retired 27-year Hallmark veteran,
is also
an officer with the Heartland Habitat for Humanity.
Habitat
ReStore warehouses take
donations of used and surplus building and construction supplies, white
goods
and furniture, reselling them to the general public at 20 to 80 percent
off.
The funds raised are returned to the affiliate in order to support
Habitat for
Humanity’s efforts to build affordable housing for low-income families
in need.
Heartland Habitat decided to pursue opening a ReStore last fall to
support the
administrative and building costs of building Habitat homes in Johnson,
Wyandotte and Leavenworth counties in Kansas, and Clay and Platte
counties in
Missouri.
“Clearly,
it’s important for ReStore to be successful in running the store and
making
profits that go back into the community,” Bayer says. “But the
Heartland
Habitat ReStore didn’t have anyone on staff with retail store
experience.”
The
ReStore staff and Bayer saw it as a perfect opportunity for SCORE
(Service
Corps of Retired Executives) to help. SCORE provides free counseling to
start-up
businesses, small business, entrepreneurs and many others through its
volunteers, retired professionals with years of experience and
expertise in a
variety of areas.
Bayer
worked with the Kansas City SCORE chapter to put together a group of
six
counselors (including himself) with backgrounds in marketing, finance,
insurance, real estate and retail, including: Gary Brickman (finance,
Comptroller of the Currency veteran); Jerry Gilson (operations, J.C.
Penny’s
and Macy’s veteran); Mike Haughton (marketing, Macy’s veteran); Jack
Dritley
(marketing, IBM veteran); and Robert Weed (insurance, owned his own
insurance
company).
“We
initially met with the Habitat group weekly,” Bayer says. “The group
had very
optimistic projections and expectations, but they needed some guidance
in the
area of retail support. The SCORE counselors were able to provide the
‘reality
check’ most business owners or start-ups need to be successful.”
Starting
from scratch, SCORE worked with ReStore to put together a budget and
marketing
plan. ReStore already had the site for the warehouse chosen, but it
needed a
lot of work to make it “retail friendly,” Bayer says.
“As
the project took shape, we provided
expertise in flushing out the many particulars that go into such an
undertaking. The old saying that ‘the devil is in the details’ proves
ever so
true,” Bayer notes.
According to John Navarre,
who manages the ReStore warehouse, “SCORE helped with planning before
we
opened, sharing their years of business experience in the retail
setting. They
helped us set realistic goals for our opening and gave us essential
operational
and financial advice.”
Today,
Heartland Habitat’s ReStore is up and
running at its 520 South 55th Street location in Kansas
City, Kan.
“Most
important, they are within
budget and without major start-up problems thanks to the guidance they
received
from SCORE counselors,” Bayer concludes.
The Kansas City Chapter of SCORE (Service
Corps of Retired Executives)
is part of a national nonprofit association dedicated to entrepreneur
education
and the formation, growth and success of the nation’s small business.
SCORE is
a resource partner with the U.S.
Small Business Administration. SCORE volunteers are real-world
professionals
with time-tested knowledge who donate thousands of hours to help small
businesses succeed. Counselors are experts in such areas as accounting,
finance, marketing, management and business plan preparation. The Kansas City
Chapter is comprised
of more than 50 volunteers who provide guidance and counseling to
entrepreneurs
in the Greater Kansas City
metropolitan area. More information is available at http://www.scorekc.org.
Top of Page
| FOR
IMMEDIATE RELEASE |
Contact Information |
| March
14, 2006 |
Michael L. Keaton,
Public Relations & Communications Manager
202/205-7637; 1-800/634-0245
|
|
 |
| SCORE
Counselors Win Microsoft $10,000 Technology Makeovers |
 |
| Washington,
D.C.—Three
SCORE counselors each received a Microsoft $10,000 SCORE Counselor
Technology Makeover for taking part in an online training on Accounting
Basics last fall. SCORE counselors who signed up were entered into a
drawing for this grant award from Microsoft to SCORE. In addition,
every SCORE counselor who took the tutorial received a copy of
Microsoft’s Office Small Business Management Edition software by mail.
William Brown of Baton Rouge, La., Myles
Crowe of Jackson, N.H., and
John Lindsay of Parkville, Mo., will receive $3,000 in Microsoft
software, a $5,000 credit toward the purchase of computer hardware with
Tech Depot Hardware, and a $2,000 Office Depot merchandise card. These
resources will help the counselors to better serve their clients.
SCORE CEO Ken Yancey says, “SCORE thanks
Microsoft for providing our
volunteer counselors with an online resource for lifelong learning and
access to Microsoft software.” Yancey adds, “Through opportunities like
this one, SCORE makes sure that our counselors have up-to-date
resources they can use to help entrepreneurs succeed.”
Since 1964, SCORE “Counselors to America’s
Small Business” has
assisted more than 7 million aspiring entrepreneurs and small business
owners through counseling and business workshops. More than 10,500
volunteer business counselors in 389 chapters serve their communities
through entrepreneurial education dedicated to the formation, growth
and success of small businesses.
For more information about starting or
operating a small business,
call 1-800/634-0245 for the SCORE chapter nearest you. Or, visit SCORE
on the Web at www.score.org.
|
 |
|
###
For more information, contact SCORE's public
relations manager at 1-800/634-0245 or media@score.org.
|
Top of Page
Kudos
for Missouri dairy farm
By
JOYCE SMITH
The
Kansas City Star
The
owners of Shatto Farms Inc. in
Osborn, Mo., were named second runner-up for the 2006 National Small
Business Person
of the Year award Thursday in Washington, D.C.
The
U.S. Small Business Administration honored
Robert “Leroy” Shatto and Barbara Shatto for restoring the family dairy
farm to profitability.
Leroy
Shatto married into a family that had been
milking Holsteins since the late 1800s. Three years ago the Shattos
were getting less for their milk than what Barbara’s father was getting
30 years ago, but expenses had more than tripled.
They
were about to shut down the farm, but with
help from the Service Corps of Retired Executives, several SBA-backed
loans,
and business consulting, they expanded production facilities and now
bottle
their own milk and then sell it directly to stores, along with other
products
under the logo Shatto Milk Co. The Shattos won the Missouri
award
before competing nationally.
“We’re
so excited. We’re talking about the entire
U.S. It’s unbelievable,” Barbara Shatto said in a phone interview from
Washington. “Both my parents have passed away. I wish so much they
could have been
here. They would have been so proud of us. They hardly ever took a
vacation.”
SBA
officials said President Bush and Dick Cheney
planned to have a glass of Shatto Milk with their lunch Thursday.
Eric
A. Hoover of Conneaut Lake, Pa., was the
SBA’s
2006 National Small Business Person of the Year. Hoover overcame
childhood
rheumatoid arthritis to build a thriving machine tool company, Excalibur
Machine Co., from scratch. Andrew Field, founder and president of PrintingForLess.com
in Livingston, Mont., was first runner-up.
First
glance
■ Just three years ago, Leroy and Barbara Shatto
pondered shutting down their dairy farm.
■ Their turnaround of the operation has prompted
an
award.
To reach Joyce Smith, retail and small-business
reporter, call (816) 234-4692 or send e-mail to jsmith@kcstar.com .
Top of Page
Successful
Business by Design
A
business plan is your blueprint for building a profitable business.
By Ed Fritsch
Just as a blueprint is the essential
document for a
building, a business plan is the essential document for a starting or
growing a
business. A business plan contains the information and guidance
necessary for
making important decisions; and the success of any business is directly
related
to the quality of the decisions. A business plan charts how your
business
should be conducted, sets benchmarks for measuring results and
attracting
funding.
There are three basic types of business
plans:
1.
The
Presentation or Loan Package Plan — This
plan explains to bankers, investors
and other outsiders how your business can succeed. Use standard
business
vocabulary, omitting informal jargon, slang and shorthand and make it
easy to
understand. Include added elements, such as investors' requirements for
due
diligence information on all competitive threats and risks. A
presentation plan
should be a quality presentation, accurate and internally consistent.
2.
The
Working Plan — This
plan is used for the daily operation of your business. It’s for
internal use
and can exclude information that would be important for outsiders. A
working
plan doesn’t have to be a high-quality presentation. Consistency of
facts and
figures is crucial. It’s not necessary to be careful about conforming
to
business writing styles, but it is important to be consistent with date
formats
and other important details.
3.
The
Mini Plan — This plan
is a short version and may be
just a few pages. Included
is the business concept, financing needs, marketing plan, financial
statements,
cash flow, income projection and the balance sheet. It's a way to
quickly test
the feasibility of a business concept.
A
Business
Plan Outline
1. Cover Letter (if
applying for loan)
-
Dollar amount needed
-
Terms and timing of loan
-
Type and value of your collateral
-
How you plan to pay off the loan
2. Business Plan
Summary (includes the
company’s strategies and critical success factors)
-
Business Description (i.e.,
business name, location, product/service, market/competition and
management
skills)
-
Business and personal goals
-
Summary of financial needs and
how money will be used
-
Earnings projections and schedule
of potential returns
-
Exactly how investors
will be
repaid
3. Market Analysis
(the key to deciding
if the business idea is profitable and for creating numbers in your
financial
data. This step needs early completion because other sections of the
business
plan depend on market analysis data.)
-
Description of market
-
Demographics, industry trends and
target market
-
Why customers will buy from you
instead of your competition
-
Details on your
competition, and your own strengths, weaknesses,
opportunities and threats
4. Products or
Services
-
Description
of products or
services
-
Technical and legal aspects,
trademarks, copyrights and/or patents
-
Comparison of competitor’s
products or services showing competitive advantages and disadvantages
-
Opportunities for expanding
product lines or services
-
How changes in
product mix or
services can affect profits
5. Manufacturing
Process (if applicable)
-
Materials, equipment,
sources of
supply, production methods and facilities
6. Marketing/Sales
Plan
-
Sales methods
- Advertising plan
-
Promotional plans
- Distribution methods
-
Customer service program
- Merchandising program
-
How you will generate sales
-
How you will service
customers
7. Risk Analysis
-
Description of all risks and how
you will protect against them
-
Action plan for
contingencies
8. Management Plans
-
Form of legal and management
structure
-
Board of directors and officers
(with responsibilities)
-
Resumes of key officers
-
Employment system
-
Number of employees
-
Plan of facilities and capital
improvements
-
Operating plan and
schedule of
work processes for one or two years
9. Financial Data
(second most important
section)
Financial data
is explained in terms of dollars, and the business’ past record and its
expected future. This plan is the conversion of the business plan into
terms of
dollars.
-
Financial
history
-
Five year financial projections
(first year by quarters)
-
Detailed explanation of
assumptions behind the final projections
-
Cash flow projections
-
Profit/loss statements
-
Balance sheets
-
Capital expenditure estimates
-
Breakeven analysis
-
Loan profile
-
Key accounting business ratios
-
How new funds will be used,
including loans or personal financing
-
Potential return to
investors
compared to competitors and industry averages
10. Supporting
Documents
- Contracts
- Leases
- Legal documents
- Credit reports
- Non-disclosure agreements
Putting
together a business plan may seem overwhelming, but a well-researched
business
plan is the blueprint for building a successful business.
Ed Fritsch is a counselor for SCORE
specializing
in business plan development. You can reach him at efritsch62272@everestkc.net
or (913) 268-0356
Top of Page
You and Your Bank-A Partnership
for
Success
Your relationship with your bank should extend
beyond the periodic transfer of money.
By Ed Fritsch
As
a business owner, you want “your money’s worth” from the bank that has
given you a loan. The best way to achieve this is to develop a
partnership
with the bank.
Selecting a Banking Partner
Usually
business owners don’t hesitate to hire an accountant to develop needed
financial papers. Nor do they hesitate to hire an attorney when
necessary.
Your banker can provide another source of financial advice. But how do
you select the right bank?
First,
shop around in the banking community and choose a couple of banks that
actively work with small businesses. Ask your accountant, attorney,
insurance
agent, or your business peers for their suggestions. Other
organizations
that may be helpful are chambers of commerce, professional groups and
trade
associations.
After
selecting a few banks, visit each one and talk to the person who would
likely be your agent in that bank. As when selecting any professional,
look for compatibility. Assure the banker that you will share all of
your
financial information, both the good news and the bad.
Early Stage
A
business is more than tax returns, profit and loss statements and
balance sheets. When you begin a relationship with a banker, you need
to be informed on what the bank needs to issue you a loan. The
following includes some of the paperwork the bank will need. If you
have these ready to go, you are more likely to avoid a rocky start to
the relationship.
1
A business plan
2
How the loan amount was determined, including start up costs and cash
flow
projections
3
How the money will be spent
4
Your knowledge and experience in this type of business
5
The quality of accounts receivable
6
Credit history, tax returns and quality of collateral
7
Valid marketing analysis, industry trends and possible business cycles
8
Three years of company tax returns
The
usual sequence of events in a loan transaction goes like this:
1.
A business owner needs money.
2.
The business owner submits required information to obtain a business
loan.
3.
The bank approves the loan and issues a check.
4.
The business owner makes the required payments on time until the loan
is repaid.
Simply
going through this process doesn’t create a sound
business partnership that will provide the greatest benefit for both
the business owner and the bank. Although the business received the
needed money and
the bank profited from the loan, the relationship shouldn’t end there.
What
is missing in this typical business loan process? A partnership. The
goal of building a partnership is to create and maintain a win-win
relationship.
Developing
the Relationship
The
goal is to build a strong relationship with your banker so that when
times are tough, the relationship holds. One of the most important
elements
in the relationship is thorough and honest communication. You want to
instill the banker’s confidence in your ability to repay the loan and
possibly
create potential for future growth. The best way to do this is to keep
your banker informed about the state of your business through periodic
reporting about what is happening and how you see the future. Be
honest,
and tell the both the good and the bad.
The
advice and resources of an involved banker can be
invaluable in helping you achieve your desired business goals. The good
news, according to the banking industry, is that banks today are
favoring the growth of small businesses because they are the
job-generators in today's economy.
Services
and advice a bank can offer to help grow your business and build a
periodic relationship:
1
Periodic monitoring of your investments, accounts receivable and credit
standing
2
Helping you to understand the language banks use
3
Offering workshops and meetings to network and educate small business
clients
4
Reviewing your financial statements
5
Serving on your board of directors/advisory board
The
bottom line to developing a partnership with your bank is to create a
business partnership that can expand the growth of your business.
Ed Fritsch is a business counselor with the SCORE,
Counselors to America's Small Business. For additional information
about loan programs, visit the Small Business Administration’s Web site
at www.sba.gov, or
contact your local SCORE office for free financial counseling at (816)
235-6675.
Above
article first appeared in
the Kansas City Small Business Monthly, October 2005
Money
to
Grow On!
Financing
may be the answer, but business owners should ask some
questions first.
By
Ed Fritsch
What company wouldn’t want more capital?
While infusing more
money into your company may seem like a “no-brainer,” there
are some questions you should ask before you make the financing
decision. What do I need the money for? How much money do I need?
How and when will I repay the money? Can I afford the
cost of the money?
Once you have answered those questions and decided
that you do, in fact, need additional capital, there are three main
types of financing to pursue: debt, asset and equity.
To choose which is best for your business, consider
the following questions:
- Why
does the company require additional capital?
- What
stage of development is
the company at?
- What
is the financial condition of the company?
- What
restraints will the new money put on the operations of
the company?
- What
effect will the new money have on the ownership of the
company?
- How
much money can owners contribute
to the company?
- How
strong and committed is the management team?
- What
other assets might be available?
- What
obstructions to the financial marketplace exist?
Debt
Debt must be repaid
at a specific time. Lending sources include banks, companies, factoring
companies and individuals. These sources look at two aspects of the
financial profile: 1) How risky is the loan?, and 2) Can the
company generate the cash needed to pay interest and repay the
principal? Financial history and the status of the current
assets of the company are the most important factors for the lender.
The growth potential of the company is secondary.
Assets
Asset-based financing refers to alternative or
creative financing strategies you
can use to create funding for your business when traditional
lending institutions don’t offer a reasonable solution. An asset is
defined as anything tangible or intangible with commercial value
such as equipment, receivables or goodwill.
Types of asset-based financing include:
- Convertible
debt is a loan that can be converted to equity
in your company under certain circumstances. This option sometimes
helps attract a potential lender.
- Factoring
is selling your accounts
receivable to a third party for a discounted price. By selling your
invoices,
you can generate cash sooner than if you waited to collect money on
your
own. After paying you a discounted amount, the factoring resource takes
title to your invoices and then collects them when they are due.
Commercial
finance companies, some banks and other financial companies will
purchase
receivables.
- Equipment
financing is leasing equipment, rather than buying
it. This kind of financing is available from banks, finance companies
and from equipment manufacturers and retailers.
- Financing
from customers and suppliers are loans and/or
equity investments from the people who buy your goods and services or
sell you theirs. This method can be used when you sell something that
is unique or hard to find elsewhere, or because you've become a crucial
link in their distribution network.
- Strategic
partnerships are alliances with other companies
whose business expansion goals are similar to yours. Strategic
partnerships can offer benefits beyond cash.
Equity
Equity is money given for a share of ownership in
your company. Equity resources can be from individual investors,
sometimes known as “angels,” venture capital companies, joint venture
partners, and capital contributions from the company owners. Equity
sources are more
interested than lenders in the growth potential of the company. Their
objective is to invest now and reap the rewards in years to come.
Growth
potential is based on the quality of management of your company,
product
brand strength, barriers of entry to competitors and size of the market
for the product.
Equity investors include the following:
- Angel
investors are wealthy individuals who routinely
provide seed capital to early-stage companies or start-ups. Angel
investors are usually found through personal or professional contacts.
- Venture
capitalists are individuals or venture capital
firms that raise funds from wealthy individuals and institutional
investors who want to assign a portion of their holdings into
potentially high return investments. Venture capitalists like to invest
in companies that are successful and that have potential for
substantial growth. Usually venture capitalists want management and/or
board positions so they have some control over their investment.
- Small
Business Investment Companies (SBICs) are allied with
the Small Business Administration (SBA). SBICs direct private
investors' money, sometimes combined with government money or
guarantees, to small, successful, fast-growing businesses.
- Initial
public offerings (IPOs)
happen when shares of your company are sold to the public in the form
of stock. IPOs are open to scrutiny from the Securities and Exchange
Commission
(SEC), state regulators and the finance community. When publicly
traded,
company finances and internal operations become public knowledge.
- Private
placements are a way
to sell company shares, not on the open public market, but to
individuals. Using private placements gives the business the ability to
maintain levels of control.
Before jumping into the search for financing, small business owners
should first determine if financing is really necessary and whether the
company can afford it. Then, evaluate and decide what is the best type
of financing for your situation.
Ed Fritsch is a business counselor with SCORE, Counselors to America's
Small Business. For additional information about loan programs, visit
the Small Business Administration’s Web site at www.sba.gov, or contact
your local SCORE office for free financial counseling at (816) 235-6675.
Above
article first appeared in
the Kansas
City Small Business Monthly, June 2005
Top of Page
Eye on Expansion
Is now the right time to take your business to
the next
level?
By Marcie Olinger
Congratulations, your business is doing well
and you
are one of the 50 percent who made it past that three-year mark. Now
must be
the time to take the next step in building your business, right? Well,
not
always.
There are many things you need to consider
before
moving up so that you make sure you’re not moving out.
Some
of the things to think through
before embarking on a new initiative are:
-
Is it going to build
your body of satisfied, loyal
customers?
-
Will it be of
interest to the media? Don’t
wait for them to discover what you’re doing, get out there and tell
them
about it.
-
Does it produce
untouched opportunities?
-
Will it produce a
cash flow that will be
sufficient to cover added debt payments?
-
Can you gain
economies of scale that will
benefit the expanded operation?
-
Will this help you
keep up with, or surpass,
your competition?
-
Will it cause undue
pain to your operations or
your customers? If so, is this only short-term and can these things be
overcome?
-
If it takes you out
of your hands-on role, are
you ready for that?
-
Does it get you more
involved in the Internet? It’s
here to stay, so you’d best be figuring out how to take advantage of it.
What
Does Expansion Mean?
One
of the first things you need to
do is define what “expansion” means to your business. Have you
taken your business plan out of the drawer, dusted it off and checked
to see
how you measure up to what you originally expected? If you have ideas
of going
to the bank (or angel investors or venture capitalists or even friends)
to
finance your expansion, one of the first things they are going to want
to see
is your business résumé—the “dreaded” business
plan.
Your
business plan is more than
just a tool to finance your expansion. It gives you insight to where
you have
been, how you’re doing, what your expansion plans are, how you will
change or increase your marketing/promotional/advertising efforts and
how you
will take advantage of the economies of scale that you need to create.
It
organizes your thoughts, shows that you understand the competition and
helps
you develop a timeline so that you know what needs to be done and in
what
order.
This
is your chance to step back
and look at where you want your business to go. It’s a great time to
lean
on the experience of your board of advisors (you’ve got one, right?!)
to
see what chance of success your big ideas have. A good board of
advisors is
more than just a sounding board. They have the expertise, knowledge,
education
and background to ask you the tough questions about where you are
going. They
may even have “been there, done that” and might be able to kick in
a few good ideas on how to make your transition run more smoothly. It
is easier
to talk with your board of advisors and get solid input if you have a
well-thought-out
written business plan.
Did
you find starting your business
a little scary? Planning for growth is a little less scary than
actually taking
that first step, but don’t get caught up in over-planning. Your plans
will never be perfect and the first step you take may even be the wrong
one. But,
that first step is what gets you moving and
if
you’re going to expand, you’re going to have to move. Remember, the
definition of insanity is “doing the same things over and over and
expecting a different outcome.”
Develop
a Plan
You
are going to have to step out
of your comfort zone and try some new things. If you’ve planned for
them
and know what could go wrong (and maybe even developed some contingency
plans),
you are on the right path. You need to break the big goals down into
smaller
pieces, develop weekly objectives and decide what you want to tackle
first.
Sure,
there are businesses out
there whose owners fly by the seat of their pants and never create a
written
plan. The question is, where might they be if they’d done a little
planning, asked key questions, did some research, tried their hand at
financial
projections or experimented with some well-thought-out “what ifs”?
Maybe
they succeeded despite the lack of a formal plan, not because of it.
A
good business plan is one of your
most valuable management tools. It doesn’t have to be lengthy, or
confusing or even perfect. But, it should provide step-by-step details
on how you
will translate your big ideas into a successful business expansion and
what
that means to your bottom line. Going through the process of putting
your
thoughts on paper often will help make sure you haven’t missed any
significant factors that could hold you back,
or even
cause you to stumble into Chapter 11. It’s a modeling tool that helps
you
examine different options that lead to different outcomes. Knowing
where you
want to go helps determine which options yield the best results.
If
doing something meant you had a
50 percent greater chance of success, would you do it? Considering your
options, talking to other professionals, walking through different
scenarios,
running through the numbers and planning a step-by-step process all
help
increase your chance of success.
Putting
it down on paper focuses
your thoughts and makes it easier to tell others how your big ideas are
going
to turn into even bigger profits. It also will help you track the
success of
your new endeavor as you move forward. It’s amazing how much you can
learn when you look back at what you’ve written to find errors that you
would never make today.
Marcie
Olinger is a counselor with SCORE, specializing
in small business start-ups and franchising. You can reach her at
(913)
825-3911 or molingeresource@everestkc.net.
Top of Page
Legal
Potholes Can Make E-Commerce Bumpy
Protect
your intellectual property when joining the online business community.
By
Art Shaffer
The
Internet has become the “great equalizer” in providing instant
international access for businesses with a computer, an Internet
connection and something to sell.
Based
on the most recent U.S. Census report, retail e-commerce sales for the
second quarter of 2006 were $26.3 billion, an increase of about 23
percent from the second quarter of 2005. Total retail sales increased
at a more conservative 6.6 percent during the same period. This large
growth indicates that e-commerce activity is continuing to dominate the
economy and that businesses without an online presence may be limiting
their ability to capitalize on growth.
Great Potential and Great Risk
With
this great growth potential also comes great risk, based on the
alarming number of increasingly sophisticated attacks directed toward
computers, Web sites and Internet users. If you own a business that
takes advantage of the Internet, you must constantly remain vigilant in
establishing, policing and enforcing issues related to your computers,
Web sites and Internet users.
Some
common issues related to a business Web site include policing against
consumer confusion and the theft of client information, ownership and
protection of computer images, computer graphics and computer code used
in creating the Web site, controlling access to and use of the Web site
content, linking and tagging.
Most e-commerce Web sites have basic elements that can be
protected using the existing legal framework. Use trade dress,
trademarks and service marks to protect any branding used on the Web
site and the look and feel of the Web site itself. Trade secret
laws can help protect customer lists or other proprietary
information. And copyright laws can protect Web site graphics,
images and code.
Trademark
and Copyright
Protecting your Web
site begins during the Web site planning
process. For example, before registering a domain name, conduct a
trademark search to make sure that someone else doesn't already have
the
right to use that domain name. If a trademark or service mark is
available at either the federal or state level, then you may be able to
protect the domain name from being taken by someone else.
In addition, make
sure that the name you choose isn't similar to
a competitor's mark or confusing to a competitor's customers. If
the domain name is confusingly similar to another's mark for the same
category of goods or services, the competitor may be able to stop you
from using the name. After researching the domain name, if it is
available, you should register and file a corresponding trademark or
service mark application.
After determining
that the domain name is available, make plans
to own the content of your compay Web site. Any work developed,
performed, completed or incorporated into the Web site should be
subject to a written agreement in which all rights in the work are
assigned to your company. Through the agreement, your company can
acquire rights in the work., which it otherwise may not own when
working with external partners. You should also make sure that
any work not assigned to the company is not incorporated into the Web
site. Once your company owns the work, including any content,
images graphics or computer code, the work should be registered with
the U.S. Copyright Office and officially transferred to the company.
Patenting
Processes
In addition to
various Web site elements, such and content,
images, graphics or computer code, you may also protect any unique
process, method or function of the Web site through a patent.
Keep in mind, however, that you must apply for a patent withi 12 months
from the first date of public use.
In summary, using
various intellectual property laws, you can
effectively and competively protect your Web site and on-line business
from the competition.
Art Shaffer is with the Intellectual Property Center. You
can reach him at (913) 481 8140 or ashaffer@theIPCenter.com
Get advice from the pros — for free
Ken Yancey is CEO
of SCORE, the Service Corps of Retired Executives, one of the USA's
best kept secrets. This 10,000-member volunteer organization is
dedicated to advising, training, and mentoring small businesses
nationwide. Yancey recently sat down with USA TODAY.com small business
columnist Steve Strauss to talk about what Yancey calls this
"national treasure." Here is an edited transcript of that interview:
Strauss: Someone told me
that SCORE is like a Peace Corps of entrepreneurs. Is that right?
Yancey: I think that is a very
good analogy. We are the premier volunteer organization in the country
dedicated to helping small businesses succeed. Our volunteers are
successful businessmen and women who offer their experience and
expertise to not only help foster new businesses but also help existing
businesses grow. And we have been doing this for millions of
entrepreneurs since 1964 in conjunction with the Small Business
Administration.
Q: So SCORE offers
counseling sessions, is that right?
A: Counseling is a big part of
what we do. We offer any small business confidential, free, one-on-one
business counseling. These sessions usually take place in one of our
389 centers around the country. Although a counseling session may only
last for a single meeting, we encourage our volunteers to create
long-term relationships with the entrepreneurs they work with.
Q: What is the cost to the
small business owner?
A: Nothing.
Q: That is fairly
remarkable.
A: We think so.
Q: Do your counselors give
general business advice? What if I was a restaurateur and needed help
with my restaurant?
A: The assistance people get
depends on their needs. We would hook a restaurateur up with one or
more of our volunteers who had successful restaurant careers. Of
course, we give general business advice as well. We often do that in
our workshops.
Q: Workshops?
A: SCORE offered 6,900
workshops and seminars last year. 137,000 people attended. Some are
free, and those that are not are quite inexpensive – usually less than
$50.
Q: I am sure the Internet
has changed your business, as it has all businesses. Are there things
you are able to do now that you didn't do before?
A: You bet. We now have 1,200
e-mail counselors at www.SCORE.org
who offer fast, free, confidential business advice and solutions within
48 hours. By logging on to our "Ask SCORE" page, people can see a list
of counselors, their areas of expertise, and can choose the counselor
that best matches their business needs. The Web site also offers plenty
of free business advice and tips.
Q: What about your
full-time staff,
what do they do?
A: SCORE only employs 14
people. Everything else is done by volunteers.
Q: That is also fairly
amazing. These must dedicated volunteers.
A: They most certainly are.
These are people who have run successful small businesses, or who
worked in Fortune 500 companies, and want to share what they
learned. The idea is to give back to the community. Eighty-five percent
of our counselors stick around beyond the first year.
Q: And why do you stick
around?
A: I have been with SCORE
since 1993,
and have been its CEO since 2000. I love helping entrepreneurs. SCORE's
motto
is "our business is small business." I believe in that.
Ask an Expert appears
Mondays. You can e-mail Steve Strauss at: sstrauss@mrallbiz.com.
And you can click here to see previous columns. Steven D.
Strauss is a lawyer, author and speaker who specializes in small
business and entrepreneurship. His latest book is The Small
Business Bible. You can sign up for his free newsletter, "Small
Business Success Secrets!" at his Web site —www.mrallbiz.com.
|
FOR IMMEDIATE RELEASE
March 7, 2005
|
National Contact:
Michael L. Keaton
Public
Relations & Communications
Manager
202/205-7637;
1-800/634-0245
|
SCORE Association
Reaches Milestone-7 Million Clients Served
More Entrepreneurs
Continue to Seek Business Counseling
Washington, DC-SCORE "Counselors to America's Small Business"
recently helped its 7 millionth client by offering business expertise
and training to help small businesses succeed. SCORE offers in-person
and online counseling and chapter workshops that help aspiring
entrepreneurs and small business owners plan for the success of their
business.
Both start-up and
existing businesses call on SCORE as a sounding board
for information and advice. In FY04, SCORE provided
nearly half a million total services, including:
·
More than 220,000
face-to-face counseling sessions
·
Nearly 110,000 online
counseling sessions
·
More than 135,000
attendees at nearly 7,000 workshops
According to SCORE
Board
Chair Jim Pyles, "Each year, millions of entrepreneurs look for ways to
achieve their dreams of starting or growing their own business. SCORE
volunteer
counselors are here to help you succeed by offering their business
skills,
knowledge and experience in your local community."
Pyles adds, "SCORE volunteers can be a member of a
small business success team. Contact
a SCORE counselor today at any of our 389 chapters nationwide or visit
the SCORE Small Business Web Site at www.score.org."
SCORE counseling is
confidential and offered to entrepreneurs at no charge. The volunteers
who offer their business expertise are working and retired small
business owners and corporate executives. Workshops covering small
business issues are organized by local chapters, which charge a small
fee for the training sessions.
SCORE's more than
10,500
volunteer business counselors serve their communities by building the
economic
strength of America-through the success of local small businesses.
SCORE
counselors serve local entrepreneurs through 389 chapters nationwide.
And,
the SCORE Small Business Web Site offers online counseling 24/7. More
than
1,200 business counselors are available through Ask SCORE online. For
more
information, call SCORE at 800/634-0245 or visit SCORE on the Web at
www.score.org.
###
Michael L. Keaton, michael.keaton@sba.gov
Public Relations & Communications Manager
SCORE Association, "Counselors to America's Small Business"
409 3rd Street, SW, 6th Floor
Washington, DC 20024
Phone: 1-800/634-0245 or 202/205-7637
Fax: 202/205-7636
www.score.org
Top of Page
FOR IMMEDIATE RELEASE
February 2, 2005
|
National Contact:
Michael L. Keaton Public Relations
& Communications Manager
202/205-7637; 1-800/634-0245
|
SCORE Association Forms Alliance with White House Initiative
Alliance Expands Free Business Counseling & Mentoring
to
Asian
American & Pacific Islander Small Businesses
Washington, DC-The SCORE Association
"Counselors to America's Small Business" and the White House Initiative on
Asian Americans and Pacific Islanders (WHIAAPI) announce a new alliance
to increase awareness of SCORE counseling and training in the Asian
American and
Pacific Islander small business community.
SCORE
Board Chair Jim Pyles, SCORE CEO Ken Yancey and WHIAAPI Executive
Director Eddy Badrina will participate in a Memorandum of Understanding
signing on Friday, February 4, 2005 in Kansas City, Mo. The event is being
hosted by
the Asian American Chamber of Commerce of Kansas City.
The WHIAAPI seeks to:
develop, monitor and coordinate federal efforts to improve Asian
American and Pacific Islander participation in government programs;
foster research and data collection for Asian American and Pacific
Islander businesses and communities; and increase their level of
participation in the national economy and their economic and community
development.
"I
am very excited that we are entering into this new alliance with the
SCORE Association," says Eddy Badrina, Executive Director of the
White House Initiative on Asian Americans and Pacific
Islanders. "This opportunity allows SCORE to bring its vital
business counseling services and mentoring programs to Asian American
and Pacific Islander entrepreneurs and business
community nationwide."
"We
are pleased to work together
toward our common goal of providing access to SCORE counseling in small
business communities across the country," says SCORE CEO Ken Yancey.
"This alliance will help SCORE serve Asian American and Pacific
Islander businesses, and will help us recruit more business counselors
from this community."
Since
1964, the SCORE Association has assisted
more than 7 million aspiring entrepreneurs and small business owners
through counseling and business workshops. More than 10,500 volunteer
business counselors serve their communities through entrepreneur
education dedicated to the formation, growth and success of small
businesses. For more information about starting or operating a small
business, call 1-800/634-0245 for the SCORE chapter nearest you. Or
visit SCORE on the Web at www.score.org.
###
Michael L. Keaton, michael.keaton@sba.gov
Public Relations & Communications Manager
SCORE Association, "Counselors to America's Small Business"
409 3rd Street, SW, 6th Floor
Washington, DC 20024
Phone: 1-800/634-0245 or 202/205-7637
Fax: 202/205-7636
www.score.org
|