#1. What are three (3) trends you are seeing in small business start-ups?
- Laid off workers seem to be starting their own businesses in larger numbers.
- Many new business owners are better prepared, I think largely due to the internet and the proliferation of books on small business start-ups.
- Start-up capital is out there, but it is harder to find now. Many people we see are starting businesses that don’ t take as much capital.
#2. Most recent business book read?
Most recently, Who Moved My Cheese and The Five Temptations of a CEO. I’m working on A Contrarian’ s Guide to Leadership.
#3. I have heard you use the term “bootstrapping” before. Can you describe what is meant by that term and examples of “bootstrapping” strategies?
In the famous quote from the professional bank robber, he said that he robbed banks because that’s where the money was. Many new business owners think that the bank is the only place to find money they need to grow the business. “Bootstrapping is a term often used to include all the creative ways a business can improve its cash flow and as a result, not need to borrow so much or attract so much investment. This includes finding ways to slow down your cash outflows and speed up your cash inflows negotiating faster payment from customers and longer terms with your suppliers. It also includes creative ways to lower your overhead like outsourcing, leasing, and strategic alliances.
#4. Favorite business website?
The Georgia SBDC Network site has a tremendous number of links that I refer to a lot. www.sbdc.uga.edu
#5. Recent best-seller “Good To Great” describes how established businesses can make the transition from being good companies to becoming great companies. What suggestions do you have for small business start-ups that want to become good companies?
Start planning from the beginning to be successful.
Too many times a start-up company only focuses on getting the first customer. They wait too long to set up systems, procedures, and resources (the business infrastructure) needed to handle growth. Then when the orders roll in, they cant handle them.
#6. Most unusual business idea that you have heard recently?
Now that emu farms and get-rich-quick ecommerce sites are out of fashion?
Maybe one of my favorites was the inventor who was trying to market a product that would use animal scents to help housebreak pets. But I try not to judge ideas as good or bad just because I don’ t understand them doesn’ t mean they can’ t be successful. Regardless of the business idea, you still analyze them in the same way. The only bad ideas are ones that can’ t make money.
#7. What are the three (3) biggest mistakes that a small business owner can make?
- Thinking too small
- Thinking too big
- Not balancing these two conflicting ideas, or NOT FACING THE FACTS
Let me explain: Thinking too small means a person has too little imagination, too little confidence, and is too easily defeated. If most people think really hard about a business, they can find a million reasons why it won’ t work.
On the other hand, someone who won’ t even consider the things that can go wrong or who doesn’ t understand their own limitations thinks too big.
Both of these approaches will probably fail. I think the successful entrepreneur must balance the almost irrational confidence that he or she can’ t fail with the reality that there a lot of ways to get tripped up. He or she must recognize risks and limitations, but not be defeated by them. Then, he or she must work hard to minimize the risks and overcome the limitations.
#8. Strangest question you have ever gotten from a client?
“You’ ve got all the answers, so why aren’ t you rich?” Even before I was asked this, I was well aware running a successful business is not easy.
#9. How important is a business plan for an emerging small business?
Studies and our own observation continue to show that a significant number of businesses have no written plan. In the SBDC, we see a lot of business plans V some that are good, and some that are not so good. A big problem, especially with the inexperienced business owner, is that when they do have a plan, it often has only generalities and lacks goals and sound strategies that are based on sound research.
I think we have to keep in mind that not everyone who starts a business wants or needs it to be a huge operation. If someone wants to start a part-time business, doesnt need the income, and can do it with low investment and low overhead, then why bother with a business plan? (Actually, this sounds more like a hobby than a business.)
#10. Tell us briefly about yourself and the agency you lead?
I am the Area Director of the Small Business Development Center (SBDC) at Georgia State University in Atlanta, Georgia (404 651-3550). An employee of the Georgia SBDC Network since 1993, I previously served as Area Director of the Clayton College & State University SBDC in Morrow, Georgia.
The Small Business Development Center (SBDC) at Georgia State University is one of 20 locations of the Georgia SBDC Network. The Georgia State SBDC serves the metro counties of Atlanta. The SBDC provides a wide range of assistance and educational opportunities to small business owners and potential entrepreneurs. This assistance is delivered through business training classes and no-cost, confidential business consulting.
Tim Fulton is a nationally recognized small business consultant and management trainer. He is also a very popular public speaker. Tim can be reached at timfulton@hotmail.com.
