Creating Business from Opportunity

Tasha Hawkins - Entrepreneur Business Owner










From the "Candid Apple Spot", drive thru food service, to now "Hawkins Breakfast & BarbeQ", dine in restaurant,  Tasha has ventured into a new business when preparedness met opportunity.  When asked how this all transitioned, she stated, "I give my customers what they expect and that is great customer service and a friendly, encouraging, environment. My business landlord took notice of this and presented me with a business proposal to take over a pre-existing barbeque establishment and after looking into the increased costs decided to venture out into this new expansion."  Mrs. Hawkins shared that the new location would give her better market visibility and an additional target market which she calculated as an advantage in the success of her new business.  In addition, she now will take on a breakfast menu as well as other new items, but will also delete others. Overall, the additional costs of goods, she believes, will prove to be profitable and worth the challenge in her business decision made.

Hawkins Breakfast & BBQ is located at 510 N. Missouri Street in West Memphis, Arkansas 72301.  For further information regarding services, you can contact Tasha at tdhawkins.2@bellsouth.net

Franchising, Licensing, and Harvesting Your Business Brand

Franchising, Licensing, and Harvesting your brand in the world of business has made many entrepreneurs millions of dollars.  Fashion designers, celebrities, and athletes have profited greatly by branding perfumes, shoes, clothing, and other products.

Ciroc was named one of America’s Hottest Brands of 2010 in Advertising Age.  Congratulations to Sean “Diddy” Combs and Blue Flame on an outstanding job in the brand positioning Ciroc Ultra Premium.

The "Jumpman" logo is used by Nike to promote the Air Jordan brand.

There are five objectives to consider in knowing what you need to "grow and go" your business. 

1.  Determine how you want to grow your business and exit from it by developing a business plan in detail spelling out the kind of business and the steps you will take to build it to the desired vision, what you want out it, whether you will expand it, merge or sell, or continue as a family business.  Licensing your brand to sell your product is another method of growth as well as franchising.

2.  Using licensing to promote and increase brand recognition in a positive manner gives you free publicity and advertising, as well as royalties.

3.  Franchise your business if it is beneficial.  Being a franchiser has benefits such as:  growth with minimal capital investment, lower marketing and promotional cost, and royalties.  The drawbacks are:  for franchisees may sue if they are not as profitable, it can be costly and difficult due to regulations, and reputation could be damaged if franchisee is not qualified or trustworthy.  In any cost, research should be done before hand to know what either party is getting involved in.

4. How does your business value with similiar businesses and what benchmarks do you use or will use to help value your business.

5.  Know your Harvest plan and options for business when exiting and when to harvest.  Investors in your business will want to know how this would profit them so it should be very clear in your business plan if and  when you will sell business, take it public, or merge with another company. 

Management, Leadership, and Ethics

Don Rodgers, business entrepreneur and owner of BusinessLinc and Trinity Wine & Liquors, gave a very energetic presentation on management, leadership, and ethics in business.  He believes a true entrepreneur is one who is willing to take 100% risks demonstrating aggressiveness and courage.  The character of any entrepreneur should always be respectful and courteous, friendliness, and should operate and conduct business the right way with no underhand business dealings. 

Don owns BusinessLinc, which is a company that helps other companies sell their business.  He also works with the individual(s) interested in purchasing a pre-existing business by assisting them in preparing a business portfolio for funding.  He maintains three things you must have access to as an entrepreneur:  Commercial Banker, Attorney, and CPA-Certified Public Accountant.  An entrepreneur must first see themselves in business and be able to visualize themselves doing the type of work they are pursuing; Mr. Rodger’s saying is, “if you can’t see yourself doing it, don’t do it!” and if you have a spouse, and you present your idea to them, if it is not received, “don’t do it” go another direction.

In the event as an entrepreneur you decide to buy a pre-existing business which offers the advantage of immediate cash flow, existing staff, and an opportunity to build rather than create, there are several things you should do before sealing a deal:  Gain an overview of the business; Review the business’ financials thoroughly; Visit the establishment and owner; Write out a letter of intent to purchase; and after all requirement have been satisfied begin the contract  and due diligence process.  When requesting funding, be sure to have letter of request, resume (1page), personal financial statement, business plan (2 years out), copy of contract, and previous tax returns.

In closing, Don Rodgers says there is no such thing as “LUCK”, always be prepared to meet an opportunity.

For further information about Don Rodgers and his Business Brokerage Firm, "Business Linc"please visit their website at  http://www.businesslincllc.com/ 

Operating for Success

Operation of a business successfully requires constant improvement and change.  Five things are suggested to aid in running your business successfully.  Understand the importance of operations and your business; Develop a production-distribution chain; Manage suppliers and inventory; Ensure product quality; and Use technology to benefit your business.  Operations assists a company in delivering its promise to its customers through marketing, finance, and legal guidelines; while yet knowing what is required to produce the desired outcome.  When you have determined what will be required, you can develop the production-distribution chain for your business whether it will be Traditional (manufacturer-wholesaler-retailer-consumer), Direct to Retailer ( manufacturer-retailer-consumer), or Factory Direct (manufacturer/retailer-consumer).  To increase efficiency, a company must work together and apply knowledge gained from suppliers.  Suppliers will beome your partners in business and must be chosen wisely for they will ensure you have what is needed when it is needed and at a price you are willing to pay for it.  Inventory must be managed in a way that will allow customers to be satisfied and at the same time not tie up a business' cash.  Some factors that manage inventory are demand, cost, sales price, carrying costs, order/setup costs, and lead times.  Managing your inventory effectively will bring you a degree of excellence and enhance product quality when customer expectations are met or exceeded.  This done consistently along with the continuous improvement of a product or service, and use of technology will be followed by profits.  Technology has improved over the years and a business should be aware of software and equipment that is relevant to their industry.  Websites, email access, financial and business software, and internet usage can benefit a company greatly allowing it to compete with other businesses in a competitive market. 

Addressing Legal Issues and Managing Risk

There are three types of business legal entities in which to choose from when beginning your business.  The first type is Sole proprietorship made up of one business owner carrying personal liability.  This means the owner can be sued and lose personal assets like home or car. This structure is easy to set up, decisions are not held up, and all profits go to the owner but may require long work hours, self motivation, and business financing expertise.  The second type is Partnership which consist of two or more owners.  This structure has unlimited liability, holding each partner responsible for paying debts or judgements even if against other partners.  Corporation is the last structure and it is considered to be a legal person by itself.  It carries limited liability using only the assets of the company to pay company debts.  It has rights and responsibilities under the law and can buy and sell property. 

In managing risk, things to be considered are obtaining patents for products, copyrighting your work, and insuring your business.  There are many types of insurance you can purchase depending on your need and deductibles should be a deciding factor for it is the amount of loss you agree to pay before the insurance company pays anything on the claim.  Other things you should do are protect computer and data by using power surges that protect from lightning, install virus protection software, and use backup hard drives to protect from computer crashes.  Have a disaster recovery plan for major catastrophes like fires, tornados, and floods; and make sure you have all required permits, licenses, and certifications that are needed for your business.  

Financing Strategy

Andre Fowlkes of Innpowerment gave a wonderful presentation in regards to Financing Strategy.  Mr. Fowlkes first stated you must know how to read the economy and understand the capital markets.  Knowing and applying the concepts of the “Velocity of Money” which is number of times a dollar can be spent;  and the “Bell Curve Technology” which is the average of the country’s emotions; will help guide an entrepreneur into making more wiser business decisions. When your mind is constantly thinking of ways to improve or create new ideas, you can get a jump ahead in the market.  Andre believes innovation is the key aspect in being an entrepreneur compared to just owning your own business.  This innovation relates to your ideas, products, and services being offered.  He also stated, an entrepreneur doesn’t always have to see the idea through or have a complete written plan to be successful because this is where networking comes into play.  Surrounding yourself with quality and strong networks can advance you in your efforts of idea, product, and service innovations. An entrepreneur is always looking for opportunities in which to enter the market.

Financing of projects can come from a variety of funding sources depending on what you are trying to do.  Funding can come in the form of gifts, grants, selling equity, and loans.  However, bank loans tend to be based on "The Five C's" and are harder to obtain.  "The Five C's" are:  Collateral, Character or Credit, Capacity or Cash flow, Capital, and Conditions such as inflation or other environmental factors.  Whatever method is best for your project, pursue with a thorough knowledge.

For more information on Innpowerment and the services they provide; visit their website at http://www.innpowerment.com/  

Getting Investors For Your Product or Service

"We bring great ideas to life. Innova partners with scientists, engineers, and entrepreneurs to bring leading edge technology and service concepts to market."

Ken Woody, President of Innova Memphis, and partner Jan Bouten along with Andrew Forsdick of Venture Capital, gave a panel presentation discussing ideas and strategies to consider when trying to get your product or service funded. In presenting your idea, here are a few things you should do:

* Expound on your story giving potential investors information not only on what you are trying to do, but adding a personal feel to it at the same time.

* Know your audience, do research and come up with target market strategies.

* Have a distribution plan for your product or service and acquire necessary patents for your ideas to keep others from stealing them.

* What makes your product or service different? Know your competitive advantage.

* Don' get offended if an investor turns you down. Ask for feedback and improve upon that and try again, Never Give Up.

* What is your "BHAG" (Big Hairy Audacious Gold) In other words, what are you good at? What is your passion and what would be the economic advantage from it?

Finally, you must utilize networking. Networking is very important and it is good to know someone. Find ways to meet people that can further assist you in making your goals a reality.

Understanding and Managing Start-Up, Fixed, and Variable Costs

The Mission of AAltSys Technology

"To deliver non-proprietary, cost-effective solutions for business technology needs"

www.aaltsys.com

CEO, Gerald Lovel and his business partner Julia Lovel developed AAltSys Technology software which presents alternative solutions for the best business value. Some of their services are: office servers (for small business with no IT department), consulting, and software application development. AAltSys uses free and open source software (FOSS) making it compatable with most systems. They have a very low startup cost with a reasonable return on investment. (ROI) AAltSys offers free download of its software and makes it profit through subscription purchases by its clients. Gerald and Julie Lovel offered six things to consider in understanding and managing costs:

1. Reality check - make sure your product/service is something that is in demand.

2. Teamwork - make sure you have the right people in place to accomplish job/task.

3. Explain yourself - 4. Show me the money - is your product or service profitable

5. Value uniqueness - what is different about your product/service offered

6. Be ye not evil - always deal openly and honestly with everyone, it pays off in the long run.

Managing and understanding costs will help you better organize your business needs. It will determine the success or failure of your business. You have to have an idea of how much it will take you to start your business by considering the cost of goods sold and USAIIRD. (utilities, salaries, advertising, insurance, interest, rent, and depreciation) There are two types of costs: fixed and variable. Fixed costs are constant and variable costs vary. Also in managing your cost, good financial record keeping must be in place that you may know your cash inflows and outflows. Create financial statements to track sales, costs, debts, and balances. These statements will help to analyze the financial health of your business. Understanding and managing costs effectively is the "bedrock principle of business" and that is: "it earns a profit by selling products or services for more than they cost."

Smart Selling and Effective Customer Service

Greg White is the CEO and founder of his home based computer repair business
which he began about five years ago. Mr. White graduated from ITT and is employed as an IT Specialist for Shelby County. When asked why he decided to begin his business, Greg expressed, "I realized that this was something that I have a gift for doing. It isn't about the money, it is about what you love to do and believe me the money will come." Greg's customers consist of individuals and small businesses. He uses the marketing strategy of handing out business cards and word of mouth to promote his services offered. Mr. White's focus on keeping his customers happy and returning is to do the job right the first time and being as efficient as possible in getting the computers up and running. Although Greg stated he rarely have problems with dissatisfied customers, when asked how he would address this matter he stated, "I would try to resolve the issue as easy as possible." For more information regarding Greg White's computer repair service, you may contact him at mrgw329@gmail.com.

Developing the Right Marketing Mix

Developing the right marketing mix for your business is very important. You must incorporate the "Four P's" _product, price, place, and promotion. The wrong combination or incorrect usage of any of these elements could determine whether your business fails or succeeds. Although philanthropy is not mentioned in the four p's, it is always a good practice to include this into your business as a way to give back to the community that supports and patronizes you.

Price is generally associated with quality for most customers and you must know use a strategy that will be the most effective for the product or service that you are offering. Where your business is located (place) will also have an impact on your business so you much choose carefully. Promotion of your product or service is crucial and Dave Barger of Luna Web had this to say: "When developing your market mix, use social networking tools to enrich your client relationships." Today, social media is widely used. Social media is technology used by people to get the information needed from each other instead of from traditional institutions. Barger stated media usage produces transparency through barriers. It allows consumers to see an organization and give them insight into that business. Poplar social networks currently being used are Facebook, Four Square, and Twitter. These networks offer location based services that many companies today are taking advantage of through proximity marketing strategies. Other social tools available to market products and services are discussion boards, Wiki, and peer groups. Dave Barger offers more insight on social networking and you can view presentations and blogs at http://www.lunaweb.net/ and blog.lunaweb.com. Luna Web is also on Facebook. If you reside in the Memphis area and you are an entrepreneur looking for opportunities you can log into the Memphis social networking sites for entrepreneurs at http://www.launchmemphis.com/ .

Exploring Your Market

The Candid Apple Spot is a family owned business that has been in existence since 2005. It got its beginning when Entrepreneur and CEO, Tasha Hawkins, decided she wanted to be in the food industry and developed a strategy to enter into this market. Mrs. Hawkins believes food is important and should be enjoyed. "It should be of good quality and taste good." She started researching pricing, location, and promotion strategies and set things in motion. Her focus was and will always be "to provide quality customer service with a friendly Christian environment." Determined to make a difference, Tasha began her venture by participating in various community and city-wide events as a food vendor. She later expanded her business to include private catering events. In May of 2009, after four years of hard work and saving, the Hawkins' family opened their establishment located at 107 West Broadway Street in West Memphis, Arkansas. Tasha serves a variety of foods and also offers catering service for events. For more information on the Candid Apple Spot and to view some of their products offered, go to www.wix.com/caspot/info or you may contact Tasha Hawkins at tdhawkins.2@bellsouth.net

Developing Your Business Plan

In developing your business plan for your new business, you should consider several things. Andrew Fosdick of Venture Capital located in Memphis, Tennessee, gave a presentation and here are a few tips he had to offer. As you begin to develop your plan, you should answer the following questions: What is unique about your product or service that you offer, or how will you offer it differently? You should also consider if there is a need or demand for what you are offering and if so, is it something profitable? Can the demand be met? Also, when looking at profit, can you determine if the net profit will be satisfactory? Mr. Fosdick addressed several other questions as well as the legal aspects and reporting mechanisms and suggested the entrepreneur must know the financial side. It is good to have some accounting background or at least have some working knowledge. A lot of new startup businesses have failed because of lack of proper planning and management according to Andrew, so plan thoroughly and do the research. Explore resources other entrepreneurs have provided as a source or guide, there are many books to assist you.

Entrepreneurship Opportunity Recognized

TLC In-Home Childcare Service - Yvette D. Shannon, CEO

Yvette Shannon is a single mother of one, who began her own in-home childcare service five years ago. As a single mother, Yvette often times participated in carpooling with several of her neighbors and friends to ensure their children would arrive and depart from school safely. After becoming partially disabled and unable to work, Ms. Shannon decided she would become a work at home mom. Yvette, knowing how stressful it was for a single mom to find a good day care with flexible hours and concern and safety first, began to ponder the idea. She recognized their was a great need in her neighborhood alone and since she really enjoyed working with children, began to do research on what it would take to offer these services from the comfort of her home. She met with the State Department and filled out the necessary paperwork and applications, and upon inspection of her home, she was open for business. She began presenting her neighbors and friends with the proposal about after school care and now she runs a small childcare service from her home. She mainly provides before and after school service, but also has a special needs child she tends to during the day. When asked what motivated her, her response was "being able to manage my time, having control over my working conditions and hours, and being my own boss. I also like the idea of being paid to do something I actually enjoy." I asked Ms. Shannon if she considered expanding her business to take on more clients and she replied, " I love working with the small group that I have at this time because I have better flexibility when it comes to time if I need to do other things." (Opportunity Cost) Small groups also allow me to have a more personal relationship with each child better serving their needs." Yvette Shannon is located in the East Memphis area, and offers affordable child care. For more information, send your inquiries to y30shan@yahoo.com