The Power Of Renegotiation

Small companies are finding that almost everything is renegotiable these days.

The economic downturn is prompting business owners — by necessity or by opportunity — to re-examine contracts with suppliers, vendors or landlords and come up with creative deals. And in many cases, they are saving a substantial sum of money. read more

Planning a Start-Up? Help and Advice Abound

Laid off in the recession and thinking of starting a business? Or just tired of working for someone else?

It’s hard to start a business alone. Aspiring entrepreneurs must tackle an onslaught of questions like what and where to sell, how to effectively market their product or service, how to structure their business — even whether going solo is the best option for them.

There’s no shortage of advice and resources for fledgling entrepreneurs. In fact, the biggest problem is figuring out whom to trust and what resources will be most useful. That involves scouting out what’s available and judging what is worth pursuing. Yes, it’s time-consuming. But one good piece of advice or personal connection can make or break your chance at success.

Here’s a look at some possible places for new entrepreneurs to turn.

Development Centers

Partially funded by the federal government, Small Business Development Centers provide free counseling and help on a full range of issues such as business planning, financing and site location. There are about 900 SBDCs, spread across all 50 states.

The centers employ full-time business counselors, typically former entrepreneurs or M.B.A. graduates, who are well-networked and meet one-on-one with entrepreneurs or direct them to other services and professionals that can help, says Don Wilson of the Association of Small Business Development Centers in Burke, Va.

“Sometimes the most valuable service we offer is telling someone their idea isn’t going to work,” he says.

Many SBDCs host courses, such as FastTrac, an entrepreneurship exploration and planning program developed by the Kauffman Foundation, an entrepreneurship research and advocacy organization. Some SBDCs partner with local business incubators that offer free and low-cost office space and resources.

To find the nearest SBDC, go to asbdc-us.org on the Web.

Score

Need a business mentor with very specific experience or expertise? You might try Score, a nonprofit group of volunteer business executives who counsel entrepreneurs; it’s loosely affiliated with the Small Business Administration.

There are about 11,000 Score volunteers nationwide and 389 offices. The volunteers mentor entrepreneurs long-term or just help with a specific question or need. People who don’t live near a Score chapter can pose questions to a counselor via email at Score.org.

A search tool on the homepage lets users find counselors in their geographic area or with a specific area of expertise. You can read detailed descriptions of the counselors’ professional backgrounds to pick one that suits your needs.

Campus Help

Universities are eager to give students real-world experience in a host of entrepreneurial exercises, including feasibility analysis, business planning and market research. They do so by providing free and low-cost help to local entrepreneurs.

For instance, law students at the University of San Diego advise local businesses pro bono on legal matters such as business incorporation and getting licenses and permits. For $500 to $1,500, student teams at St. Louis University will conduct a feasibility analysis or help write a business plan. Local entrepreneurs also can get their product or service ideas evaluated in the school’s Idea to Product Competition.

Call your local universities’ entrepreneurship programs or business schools, or check their Web sites, to see what services they offer local businesses.

Other Entrepreneurs

An often-overlooked resource for new entrepreneurs is other successful business owners in their fields. Someone looking to start a business should compile a list of the five “smartest” minds in the industry and try to meet with those people face-to-face, says Bo Fishback, vice president of entrepreneurship for the Kauffman Foundation.

“If you think you’ve figured out a place where you can leverage some great value, go to talk to people in the space,” he says. These entrepreneurs — assuming they’re willing to meet with you — can answer questions about the industry and what it’s like running such a business. “The best things that come out of this meeting are introductions to other people who might be interested in helping you,” Mr. Fishback adds. “It’s a very self-directed kind of school.”

Networking Groups

Starting a business can be a lonely experience — if you do it alone. Meeting other entrepreneurs who are in your town, or have similar experiences and problems, can be both therapeutic and educational.

Pretty much any city or small town in the U.S. has a Chamber of Commerce or other business group that hosts networking events, seminars and other resources for entrepreneurs. You also can find groups of business owners in your area on Web sites like MeetUp.com.

More and more business networking is actually taking place online. Though you might not form as close a relationship that way, you are more likely to find people in your industry to share experiences with.

Social-networking sites for start-ups include Sta.rtup.biz, StartupNation.com and Biznik.com. Other sites, such as MicroMentor.org, IdeaCrossing.org, PartnerUp.com and GoBigNetwork.com, can help match entrepreneurs with a business mentor, or even a potential investor.

[via WSJ Small Business] by Kelly Spors

Alternative Energy Companies Grow Even as Others Falter

Inquiries, Sales and Funding Rise in Anticipation of New Regulations — and Spending — From Obama Administration

While many small businesses continue to struggle with tight credit and declining sales, one fledgling industry is seeing a boom in investment and sales growth: alternative energy. read more

Word-of-Mouth on Blogs and Other Sites Attracts Fans…and a Record Deal

In late 2006, Justin Vernon, a musician in Eau Claire, Wis., recorded nine songs while staying at his parents’ hunting cabin in northern Wisconsin after a breakup with a girlfriend and his long-time band. He used just a desktop computer with recording software, a three-piece drum set and a guitar.

A few months later, Mr. Vernon posted the songs on his MySpace page, hoping to get some listeners and feedback. He also printed 500 copies of a CD with those songs to sell to friends and fans and send to music bloggers for review.

He got that and much more. read more

Music Industry to Abandon Mass Suits, Cozy Up To ISPs Instead

After years of suing thousands of people for allegedly stealing music via the Internet, the recording industry is set to drop its legal assault as it searches for more effective ways to combat online music piracy. read more

Community Banks New Financing Option For Start up Companies

When Amy Loera was looking for a loan to expand her family’s Mexican-restaurant business earlier this year, she applied at nine different banks. They all turned her down.

Many of the banks accepted her initial application but simply didn’t take things any further, she says. Some raised concerns about the nationwide downturn in the restaurant industry in refusing her request. And some told her that if she had applied a year ago, she would have had no problem.

So Ms. Loera turned to a local lender, Arrowhead Credit Union in San Bernardino, Calif., after a business acquaintance told her the credit union had given loans to other businesses in the community. She was approved for a $643,000 loan this summer. read more

Venture Capital Financing Slows Amid Economic Downturn

Silicon Valley technology startups are adopting a new business plan: deferral.

MerchantCircle Inc., a Los Altos, Calif., Internet startup, typifies the trend. Last month, company founder Ben Smith was in New York talking to media companies about raising $50 million, with which he planned to make acquisitions to fuel MerchantCircle’s growth. But as the financial markets tumbled this month, Mr. Smith canceled two trips to New York and a roadshow to Europe to raise the capital. For now, the fundraising is on the backburner.

“When we started the year we were pushing really hard for growth,” says Mr. Smith, who in 2005 founded MerchantCircle, which provides online advertising services for small businesses. “That’s just not as important anymore. Now it’s all about cash flow.” read more

Entrepreneurs Feel Squeeze as Venture Capital Gets Scarce

Venture capitalists are reining in spending amid the financial downturn, a shift that has implications for entrepreneurial activity.

According to two sets of data pegged for release Saturday, venture capitalists did fewer new financing of companies and spent less money in the third quarter than they did a year earlier. Venture capitalists typically put money into young companies, with the aim of profiting later when those start-ups go public or are acquired. read more

Five Survival Tips for Entrepreneurs

What do you do when sales are down and your credit’s been slashed? You rethink your business. Because of the ongoing credit crisis, banks are becoming even more reluctant to extend lines of credit to small-business owners. And the sluggish conditions aren’t expected to improve any time soon. That means business owners who rely on banks to finance everything from inventory and office equipment purchases to new store expansions are left scrambling for ways to stay afloat without a lifeline.

“Now’s the time to make tough decisions,” says George Cloutier, chief executive at American Management Services, a small-business consulting firm in Orlando, Fla.

Cutting costs can help free up much needed cash flow during a crunch, but when the economy is expected to stay down indefinitely, more dramatic measures may be in order, he says.

Here are five tactics to help keep your dwindling business capital flowing: read more

Wholesalers turn to the web

As times get tough, wholesalers are turning to the web, setting up online stores to move more product and hit the end consumer directly. read more

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