NEWS You Can Use

Don’t push ideas; focus on solutions Published in The Tennessean December 1, 2014 By Ed Rappuhn – SCORE Nashville “Coworkers, customers, and even my wife, say I’m a bit pushy but I can’t help myself. How can I come across as having the other person’s best interest at heart?” I feel your pain. Most people believe their ideas are best and if others would just listen the world would be a better place. At SCORE, our counselors go through a training program that, when followed, makes our mentoring sessions much more productive. The process is based on the acronym, SLATE. Stop and suspend judgment Listen and learn Assess and analyze Test ideas Expectation setting Stop and suspend judgment. Clients come to me dressed poorly or with an idea that, at first thought, is doomed to failure. Many high tech projects would never get off the ground if the appearance of the ratty blue-jeaned, t-shirted idea guy were the key to success. And just because an idea doesn’t appeal to you does not mean it is not irresistible to a different demographic. Don’t miss out on a great opportunity because of your prejudices. Listen and learn. You have two ears and one mouth; you should listen twice as much as...

Hard numbers matter in plan Published in The Tennessean December 15, 2014 By Ed Rappuhn – SCORE Nashville “My business plan is almost complete. All that’s missing are the financial projections.” That’s like saying, “My masterpiece is almost finished, I have the canvas, idea and frame; all I need is the paint.” The financial projections are what investors or lenders find most compelling. To do your projections you will need a sales forecast, expense estimates, and a set of financial statements. Do research to develop realistic sales forecasts. Talk to potential customers and ask if, and how much, they will buy from you. Contact similar companies in comparable markets (in which you won’t compete), and ask about their sales growth, marketing successes and failures, and any surprises they experienced. Don’t base your projections on a percentage of the market; that type of statistic rarely proves accurate. When you come up with your projections, make sure you take into account your growth from zero and seasonality of sales. Be conservative in your estimates. Expense projections include fixed and variable costs. Fixed costs are rent and utilities, marketing, salaries and similar items. Variable costs typically fluctuate based on sales. Estimate expenses slightly higher than expected to account for unanticipated costs. You...

Find great workers with smart hiring Published in The Tennessean November 3, 2014 By Ed Rappuhn – SCORE Nashville “We are about to hire several employees. Any advice?” Start with written job descriptions. Include requirements for applicants, employee responsibilities, and a broad, non-specific statement allowing for “other tasks as requested by management” since job duties evolve over time. Your company culture determines the type of person you want to hire. Will your culture be hierarchal, team-based or involve internal competiveness? Do you favor “smooth and steady” or do you like to take risks? Employees must understand and embrace your culture. Know what motivates potential employees. Is it money, recognition, opportunity for advancement, or something else? Determine if you can offer what the applicant wants. If money is the prime motivator, will the employee jump at the first opportunity earn an extra buck? Are technical skills and education necessary for success? Jon Taffer of Bar Rescue says he finds attitude far exceeds experience when deciding whom to hire in non-technical positions. If you are hiring for a technical position, expertise and education might be important, but I’d rather have a 3.5 student with a great attitude than a 4.0 scholar with ego issues. Assessments are objective ways of evaluating everything...