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Spring-SBOR-Thumb.gifDespite challenges, small business owners are still optimistic about the future, embracing self-sacrifice while prioritizing employees and customer relationships.


Seven years after the Great Recession began, two-thirds (64%) of small business owners report their businesses are still in the process of recovering, according to Bank of America’s spring 2015 Small Business Owner Report. The report, based on a semiannual survey of 1,000 small business owners across the country, says that only one in five (21%) small businesses state they have completely recovered from the recession.

 

However, despite these lingering impacts from the Great Recession, small business owners are still confident about the future growth of their businesses.

 

“Small business owners are optimistic about the future and are working extremely hard to achieve success,” said Robb Hilson, Small Business executive. “As they have focused on recovery, many business owners have embraced a mindset of self-sacrifice. They are prioritizing their employees and customers above all else and it is often at the expense of their own personal or financial well-being.”

 

The report also found that small business owners have been working long hours, forgoing raises and delaying their own compensation as they focus on investing in employees, and attracting and rewarding repeat customers.

 

Investing in employees

When it comes to their employees, small business owners overwhelmingly find the need to reward them and show their appreciation in a variety of ways. Almost all small business owners (94%) surveyed say their companies have employee appreciation programs.


In addition to appreciation programs, small business owners are investing in helping their employees perform better and grow in their careers. “Small business owners are seeking more support through lending than they did a year ago. Citing difficulty in locating qualified candidates, small business owners’ number one priority for using loan capital is training and developing existing staff,” Robb said.


Strengthening customer relationships

Establishing relationships with customers is a primary driver of repeat business, and small business owners are showing their appreciation to their customers in a variety of ways. More than half (57%) of the survey respondents feel they receive repeat business because of the relationships they have developed with their customer base. This sentiment is even stronger among Baby Boomer owners (71%) compared with 47% of Millennials and 53% of Gen Xers.

 

Click here to download the full Bank of America Small Business Owner Report in PDF format.


SP_Veteran_Resources_body.jpgby MeLinda Schnyder.

 

Taxpayers fund between $600 billion and $800 billion to recruit, train, equip, and deploy the U.S. military, according to Sean McIntosh, executive director of The Bunker Kansas City, part of a national program that offers education, mentorship, and access to funding for veteran entrepreneurs. “Our highly-trained, stress-tested, and experienced military veterans are a by-product of that investment,” he says. “They should be re-purposed as job creators.”

 

If you’re one of the nearly 250,000 service members transitioning to civilian life this year and are considering working for yourself, there are many resources available locally, regionally, and nationally. The U.S. Small Business Administration website is an excellent resource for all entrepreneurs, but here are seven programs specifically aimed at veterans:

 

1. Veterans Business Outreach Centers

The SBA’s Veterans Business Outreach Program has 16 organizations participating in this cooperative agreement to provide development services such as business training; counseling and mentoring; and referrals for eligible veterans owning or considering starting a small business. Check the website for VBOC locations and areas of coverage.

 

2. America’s Small Business Development Centers

In its 35th year, the Small Business Development Center program includes 63 state and regional SBDC networks at nearly 1,000 locations. The centers provide free one-on-one consulting to small businesses, from business plan development to manufacturing assistance to financial packaging and lending assistance. The program is a public-private partnership in cooperation with the SBA.

 

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3. Veteran Fast Launch Initiative

For more than 45 years, SCORE (Service Corps of Retired Executives) has offered mentoring and training to entrepreneurs through its network of 13,000 volunteers. The SCORE Foundation partnered with major corporations to create Veteran Fast Launch Initiative, combining the counseling and education with free software and services to help accelerate the start-up process for veterans and their families.

 

4. The Bunker

The Bunker targets existing veteran-owned tech startups and aspiring entrepreneurs, helping to launch and accelerate their businesses. There are seven chapters nationwide—all run by veterans—that accept applicants for a six-month training pipeline, bringing together companies, mentors, and aspiring entrepreneurs. Find affiliate locations on the website.

 

5. American Dream University

This non-profit offers a free online course to help veterans decide if starting a business is for them. Advanced programming includes free events on bases across the world featuring tools and speakers who are entrepreneurs, leaders, and trailblazers and have volunteered their time to help veterans transition.

 

6. Patriot Boot Camp

Patriot Boot Camp’s intensive three-day events offer training in entrepreneurial and business skills, as well as mentoring from successful entrepreneurs and military and business leaders. Vets and their spouses can attend at no cost in locations across the country.

 

7. Operation Boots to Business

Boots to Business is an entrepreneurial education and training program offered by the SBA as part of the Department of Defense’s Transition Assistance Program. The curriculum includes steps for evaluating business concepts, the foundational knowledge required to develop a business plan, and information on SBA resources available to help access start-up capital and additional technical assistance.

 

Bank of America, N.A. engages with Touchpoint Media LLC to provide informational materials for your discussion or review purposes only. Touchpoint Media LLC is a registered trademark, used pursuant to license. The third parties within articles are used under license from Touchpoint Media LLC. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

Thank-You-Thumb.gifYou work around the clock and life can move pretty fast. Which is why we just want to stop and say how much we appreciate all you’ve done for the economy.


Click here to view the infographic.

Military.jpgIf you are one of the nearly 250,000 service members transitioning to civilian life this year, veteran business owners want you to know that your skills could transfer to being your own boss. According to the National Veteran-Owned Business Association (NaVOBA), more than 3 million men and women who have served in the U.S. Armed Forces have started their own small businesses after their military service. NaVOBA calls them vetrepreneurs.

 

NaVOBA analysis shows veterans are twice as likely to own a business as non-veterans. More data—this from the Institute for Veterans and Military Families at Syracuse University—shows that the success rate of veteran-owned business startups is almost twice that of other business startups.

Click here to download the pdf.

Then-Now-Thumb.gifLife moves pretty fast. And a lot has changed recently, especially in terms of technology and business. Let’s take a trip down memory lane and see how things have evolved.

 

Click here to view the infographic.

SP_Ways_To_Become_More_Sustainable_body.jpgby Robert Lerose.

 

Small businesses that adopt green policies and procedures can often come out ahead in two essential ways. First, they reduce their environmental impact and conserve precious natural resources. Second, they can boost their bottom line and enhance their standing among customers. Surveys of small business owners that offer green products and services show an uptick in sales and higher customer loyalty.

 

Although making your business greener can seem overwhelming, experts say to start small and then tackle bigger changes. Simply Green Solutions, an Ellenton, Florida-based project management services firm that helps businesses go green, offers these suggestions:

 

1. Use recycling bins

Put out containers for recyclable items—such as glass, paper, and aluminum—in a convenient location in your company. Post instructions on how to use them and reminders throughout the building.

 

2. Use eco-friendly cleaners

Harsh detergents can add potentially harmful chemicals to the water supply, as well as irritate skin, eyes, and lungs. Choose natural, non-toxic cleansers that are easy on the environment and on people. (You'll be amazed at what you can do with ordinary household items like vinegar and lemons.)

 

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3. Turn off the power

Save electricity and cut your energy bill by shutting down your computers at the end of the day, as well as non-essential lighting, machinery, and equipment. To make the task more efficient, take an inventory of your operation, put together a checklist of everything that can be switched off, and give someone on your team the responsibility for executing it.    

 

4. Find new life for your old equipment

The amount of e-waste—such as computers, cell phones, and monitors—is staggering. Landfills are overflowing with castoffs that can also unleash toxic elements into the environment. When you upgrade to new models, take your old equipment and donate it to a non-profit. They'll appreciate the offer and you might be eligible for a tax write-off. In instances where equipment can't be reused, give it to a reputable recycler that follows proper protocols.

 

5. Decorate your office with plants

We may take them for granted sometimes, but plants are one of the best ways to help your business operate efficiently and cleanly. Plants scrub the air, minimizing amounts of dust and other particulate matter. They also help to regulate indoor heat and humidity levels, and release oxygen for a healthier working situation.

 

Taking simple steps like these can have a measurable impact on the environment and your wallet—that’s truly going green.

 

Bank of America, N.A. engages with Touchpoint Media LLC to provide informational materials for your discussion or review purposes only. Touchpoint Media LLC is a registered trademark, used pursuant to license. The third parties within articles are used under license from Touchpoint Media LLC. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

 

Small-Biz-Thumbnail.gifThe number of small businesses in the U.S. continues to grow, with more than a third started and owned by women. These small companies cut across all industries and sectors, and in fact, have been major job creators over the last decade.

 

These are just a few of the highlights from our snapshot of the status of small business today. Read on to find out the top five small business growth industries, the most entrepreneur-friendly states, and other interesting small business demographics.

 

Click here to view the infographic.   You can also download a PDF version for printing by clicking here.

Millennials-Thumb.jpgWith the economy mostly healed from the recent recession, more millennials are choosing to forge their own path in the business world. According to the Global Entrepreneurship Monitor, a joint venture between Babson College and London Business School, 18 percent of Americans age 25 to 34 launched or ran a small business in 2014, compared to 15 percent in 2013.

 

The traits that define the typical millennial—idealistic, confident, environmentally conscious, self-absorbed, creative—coincidentally lend themselves to entrepreneurship. Add a little tech savvy and the exuberance of youth, and you have the demographic potential to redefine the small business community and the economy overall.

 

Click here to read the full article (PDF).


5_Biz_Orgs_body.jpgBy Wendy Amundson.

 

One of the best ways to help your business succeed is by participating in organizations related to your business by location, industry, or other shared affiliation. Active participation in organizations provides opportunities to develop trusting relationships with potential partners and customers, build your expertise through organization-sponsored workshops and conferences, and increase visibility for yourself and your business by taking advantage of speaking opportunities, event sponsorship and leadership positions. But with thousands of organizations to choose from (and the limited free time of a small business owner), how do you pick the most valuable organizations for your needs?

 

Jack Bernard, a retired healthcare executive and a small business mentor for the Atlanta chapter of SCORE, shared some of the advice he gives his clients:

 

1. Small business organizations. These organizations provide technical assistance and other benefits specifically focused on helping small businesses succeed. Naturally, Bernard is partial to SCORE, a national non-profit organization with more than 320 local chapters that provide one-on-one mentoring and advice to small business owners via volunteers who are working and retired business professionals. Helping with business plans is one of their specialties. Another organization, National Federation of Independent Businesses (NFIB), focuses on small business advocacy, and also provides technical resources.

 

2. Your community’s chamber of commerce.  “These are great places to develop long-term, trusting relationships,” explains Bernard. “They provide educational opportunities, as well, but their main focus is on networking and helping to create win-win business relationships for their members.”

 

5_Biz_Orgs_PQ.jpg3. Industry-specific trade organizations. “To keep up with your industry’s trends, you’ll want to join at least one trade organization,” says Bernard, who was active in the American Hospital Association when he worked in healthcare. Many of these organizations are national, with regional and local affiliates, allowing you to broaden your geographic scope while retaining valuable local networking. Other benefits of trade associations can include access to industry data (valuable for developing business plans); group discounts that can lower your costs in such areas as insurance, business travel, and telecommunications; and industry-focused lobbying.


4. Social/community service clubs. “Especially in small communities, clubs like the Lions, Rotary or Kiwanis can help you improve name recognition and build relationships,” Bernard says. “There are also a lot of opportunities to speak and volunteer, which establishes your expertise and your desire to contribute to your community.”


5. Other affinity groups. Business organizations are becoming more diverse, so joining a group like Urban League’s Young Professionals, Latino and black business associations/chambers of commerce and the National Association of Women Business Owners (NAWBO) can expand your networking, education, and leadership opportunities.

 

Your business goals, industry area, and location will factor into which business organizations are best for you. But merely adding yourself to the membership roster of an organization does your business little good. Whichever organizations you choose, make the most of what they have to offer by volunteering, attending events and taking on leadership roles.

David_Newman_body.jpgby Robert Lerose.

 

Turn to any page in Do It! Marketing by David Newman, a thought leader expert and business consultant to entrepreneurs, and you encounter checklists and bullet points and boxes and numbered lists and worksheets and templates. Instead of being a confusing jumble of ideas, they are actually a cohesive toolbox for small business owners to kick their company toward bigger profits and outpace their competitorsdelivered in a high energy, infectious, and often playful tone and style. Business writer Robert Lerose spoke with the Philadelphia-based Newman about some of his compelling ideas, such as the uselessness of sales training and the correct way to follow up with prospects, as well as the one thing business owners should do to thrive in 2015.

 

RL: Early in the book, you write that "you need to sell the same way that you buy." What does that mean?

DN: How do we buy? We buy from people that we know, like, and trust. Your main job as an entrepreneur is to get seen, so raise your visibility and credibility in front of your target market. The primary purpose of selling anything as an entrepreneur is to offer value and invite engagement. Inviting engagement might be asking for the sale, commenting on a blog post, getting an email address, joining a Facebook or LinkedIn group. If you really anchor yourself in how you buy, that's the same sort of relationship building and value-offering and engagement strategy that you want to deploy on behalf of your business.

 

RL: You say that people in business need to ask themselves what they want to be known for and to establish a thought leadership platform. What did you mean by that?

DN: I think the big danger that all of us face—I know I faced it when I started my entrepreneurial career—is that we think that our products and services and programs are for everybody. But the truth is, the narrower the focus, the easier all of your sales and marketing and business development tasks become. The thought leadership platform is: how do I amplify that [focus] or share it with the world? When you become known for something, that's really important for your targeting and your specialization. When you build a thought leadership platform, now you're opening up the tent. You're inviting people in by sharing content and experiences, by sharing your expertise. It could be on your blog, on YouTube videos, podcasts, and articles that you write.

 

RL: Example?

DN: One of the bars that I set really really high for small business owners is this: is your marketing material too good to throw away? I got a flyer about 10 years ago from a company called Digital Color Graphics. They specialized in printing marketing and sales material for small and solo business owners. The flyer was filled with marketing information, resources, tips, tactics, strategies, tools, and websites. I tried to throw it away three or four times, but I couldn’t because I knew that I'd need to refer to it. That's what I mean by a thought leadership platform—you become known for being the specialist and the expert and the ultimate authority for a particular product or service.

 

RL: You claim that customers aren't interested in how you do what you do, whether it's your process or your proprietary technology. Really? They don't care?

DN: No, not in the beginning. First, they have a problem. Second, they think that you or your company can fix it. Third, they think it's worth putting in some time and money to fix this problem. Fourth, [they ask] who can fix it most effectively? Now they might be interested in your 17-point process. The other thing is the FSB effect—Faster, Smarter, Better. The only reason they're going to care about your proprietary methodology is if it makes something faster, smarter, or better for them.

 

RL: What is a Marketing Language Bank and what can it do for a business?

DN: A Marketing Language Bank is the collection of all of your sound bites, bullets, headlines, sub-headlines—all of the things that you would say about your product, its value, its impact, its result. The best place to start is to think about your best buyers and what they've said to you. What have they said about their situation when they've bought from you? What have they said about their situation when they didn't buy from you? Once you've developed this Marketing Language Bank, you'll never face a blank screen again because everything has been strategically thought out and articulated. Now you've got 5 or 20 or 30 of these little sound bites and conversational phrases and pain points and benefits and outcomes and results that you can talk to and with. It's a predefined bucket that you can continuously reach into for all of your articulation, messaging, and distinction.

 

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RL: You're not in favor of business owners or entrepreneurs getting sales training. Why not?

DN: Most entrepreneurs who've been in business for any length of time come out of a sales training program and go wow—that doesn't fit me at all. A lot of sales training—especially old school sales training, which sadly is about 80 percent of sales training today—is based on manipulation. It's based on being a different person when you're wearing your sales hat than when you're being a regular person. Don't worry about being a good salesperson. Worry about being a good person and you will sell a lot more successfully. That means establishing rapport, listening, tying your products and services to their specific situation, being spontaneous, being authentic, and having a sense of humor. Pretend that you're selling to your best friend. You would not cheat or manipulate your best friend. Why would you do that to a good prospect?

 

RL: You say that business owners should stop wasting their time following up. Isn't persistence part of a sales strategy?

DN: Sales is not a numbers game. Sales is a timing game. A very different but way more effective follow-up strategy is a value strategy. How can you stay connected to customers and prospects? [You send them] a resource or a web link or a video that they might find valuable or a checklist that you just developed. So that when they need your product or service, they'll have to call you because you've been so helpful and you're always sending them material. In fact, you might be the only person they call. You might have already wiped out all the competition by continuously showing up in their world as a happy squeaky wheel.

 

RL: How can small business owners make 2015 an outstanding year? 

DN: This is going to seem old school, but here it is: be really great at what you do because everything hinges on that. Over deliver and over service the clients and customers you have right now because they're going to do the marketing for you. If you get what matters most right—taking extreme care of your current customers and clients, getting them so happy and so excited that they're going to come back, and refer [others to you]—it takes some of the marketing burden off of your plate and gives them an opportunity to market for you and market with you.

 

This interview has been edited for length and clarity.

SBOM_Credential_body1.jpgIn our latest installment of SBC’s small business spotlight, we meet Steven Smith, chairman of Credential Check Corp., a workforce screening services-company based in Troy, Michigan. In a recent interview with business writer Susan Caminiti, Smith speaks about how the company got started, the role technology played in its early success, and why in business it’s important to keep an open mind.

 

by Susan Caminiti.

 

In his long career as an entrepreneur, Steven Smith has learned not to dismiss those seemingly outlandish ideas that come his way. “When I’m ready to have a visceral reaction to some crazy request or business idea, I’ll stop and think it through first before making a decision,” he says.

 

That strategy has served him well. As chairman of Credential Check Corp., Smith has built his workforce screening services company with deliberate decision-making when it comes to people and ideas. It’s a method that has enabled him to attract nearly 1,000 corporate clients—Fortune 500 companies among them—and post annual revenue of nearly $5 million.

 

SBOM_Credential_body2.jpgIn the mid-1990s, Smith was running several businesses, including Smith Security, a company he founded to provide corporations with uniformed security guards for their headquarters. A local business acquaintance in Ann Arbor, Michigan named Jerry Wright approached him one day with an idea: Would Smith like to buy his security assessment and workplace violence prevention business?

           

Wright’s company was successful, but as an Ann Arbor police sergeant, he had no interest in overseeing the administrative side of his growing business. “When Jerry asked me, my first thought was ‘Why on earth would I want to buy your company?’” Smith recalls. But after his initial resistance, the idea began to make more sense. The businesses were complementary, and the purchase would allow Smith to spread his security company’s substantial IT, legal, and back-office expenses over a greater base of revenue. “Plus, I knew Jerry and had the greatest regard for him,” Smith recalls.

 

The arrangement proved successful and over the next few years the combined businesses flourished. However, it wasn’t until an annual budget meeting in early 1998 that the seeds of Credential Check were actually planted.

 

At the time, databases for pre-employment screening were just beginning to come online. Wright had been doing about 10 background checks a month for different clients, Smith recalls, but the process was slow and involved mainly phone calls to track down the information needed. Wright requested $15,000 to purchase PCs to access the databases electronically.

 

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“Again, it was another one of those moments when my visceral reaction was to say, ‘No, we have a Unix computer system, we don’t need to spend money on PCs,’ but I listened to him and waited before responding,” Smith says. He eventually approved the purchase and the company that would later be renamed Credential Check, was born. Says Smith: “We didn’t agonize over the name. It says what we do.”

 

Today, the Troy, Michigan-based company does over 10,000 pre-employment background checks a week for clients in a variety of industries including defense, energy, staffing, entertainment, manufacturing, and healthcare. Smith says clients can receive a full report on a potential new hire within 48 hours to 72 hours in an easy-to-read format.

 

“We deal with the human resource professionals who don’t have the time to do the kind of background checks we do,” Smith explains. Depending on the type of job responsibilities involved, Credential Check can do criminal and civil records searches, access consumer credit report and driving records, and arrange for substance abuse testing.

 

Michael Pachuta, who joined the company in 1998 and was named president in 2001, says one of Credential Check’s greatest opportunities for expansion is with a service it offers called CC-Verify. “This service allows clients to manage the training, testing, and validation of suppliers, contractors, and sub-contractors who have routine, yet unescorted, access to their facilities,” he says.

 

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Credential Check’s growth has required additional real estate and technology financing, says Jason Baroni, the company’s Bank of America small business banker (SBB). “Down the road, we can also handle financing for any acquisitions they choose to make,” he says. “Credential Check is a really interesting client because they’re a direct indicator of how much—or how little—hiring is being done in the economy.”

 

Like all growing businesses, Credential Check’s path has not been without its challenges. In 1999, a year after prompting Smith to make the move to electronic databases, Wright suffered a heart attack at age 53 and passed away. “It was a horrible time,” Smith recalls. “Jerry was so young and within a week my wife had me in a cardiologist’s office to have my heart checked.”

 

The profile of the business also changed. Shortly after Wright’s death, Smith decided to sell the uniformed security guards portion of the company. “I realized I wanted to step away from the daily CEO role and this part of the business was the biggest user of my time,” he says.

 

He and Pachuta agreed that the best course of action for Credential Check would be to concentrate on background checks, the part of the business that provides a steady, recurring revenue stream. Pachuta handles the new business development and client relationships, while Smith oversees finance, accounting, and human resources. And although he splits his time between Credential Check’s Michigan headquarters and a home in South Florida, Smith says he and Pachuta typically talk “several times a day.”

 

“The beauty of my role now is that I don’t have to be in the office everyday, but I can communicate with Michael whenever we need to, from wherever I am,” Smith says. “Technology is just unbelievable.”

Video Replay of the Live Google Hangout: Exploring Generational Differences Among Small Businesses Owners

 

 

Welcome to this video replay of the Small Business Social Series sponsored by Bank of America.  The panel discusses the generational differences among U.S. small business owners and what this means for the small business landscape.  This discussion was moderated by Carol Roth.

 

In this video you will hear from:

  • Robb Hilson Small Business Executive,Bank of America
  • Dan Schawbel, Career & Workplace Expert
  • Steve Strauss, Small business columnist, USA Today

Robb-Hilson3.pngAs the youngest Baby Boomers turn 50, Gen-Xers mature into middle age and Millennials charge into the working world, the small business community is feeling a shift in the way business is done. Among these generations, there are notable differences in attitude, management style and skillsets. But how do these variances affect the way entrepreneurs run their business and influence the economy?

 

Here at Bank of America, we focused on these generational differences in the fall iteration of our bi-annual Small Business Owner Report, which examines the concerns, aspirations and perspectives of small business owners (SBOs) across the country. The overall findings of the report will be explored in January’s Bank of America Small Business Social Series Google+ Hangout. Here are some of the key findings we’ll delve into:

 

Millennials are the most optimistic about their business’s revenue and the economy

It likely comes as no surprise that the youngest generation, Millennial SBOs, have the greatest optimism about the economy. More than three-quarters predict their revenue will increase over the next 12 months and 82 percent believe their local economy will improve. Boomers expressed the least optimism, with 52 percent feeling positive about their companies’ revenue growth and 41 percent feeling optimistic about the local economy. Greater optimism from the younger generation may be the result of less exposure to cycles of economic downturn and fluctuations.

 

All generations see themselves as “tech savvy,” but the importance of tech varies

When grading themselves on tech-savviness, the Millennial generation leads the pack with 85 percent of young SBOs giving themselves an “A” or “B.” Gen-Xers followed closely behind at 74 percent, and Boomers trailed with 58 percent giving themselves high marks. When we asked how long SBOs could run their business without a smartphone or tablet, we found a big variance in response. Fifty-nine percent of Boomers said they could run their business indefinitely without a smartphone or tablet. Only 22 percent of Millennials could conceive of this, as well as 39 percent of Gen-Xers. In addition, nearly half of Millennials and Gen-Xers said it would be impossible to run their business without a smartphone or tablet for more than a day.

 

Millennial SBOs self-identify as creative and confident versus their dedicated and hard-working generational counterparts

While Millennial SBOs describe themselves as creative and confident, Gen Xers and Boomers see themselves as hardworking and dedicated. The differences in generational self-perception may not only affect the way small businesses are run, it could also influence the types of businesses opened in the future. 


Generations share some things in common

While SBOs may describe themselves differently, all tend to value a company culture that is focused on the customer. Gen Xers, Baby Boomers and Millennials consistently emphasized the importance of a client-centric approach to business.

 

Despite the many ways SBOs approach their businesses, each plays an important role in the well-being of the small business community and the economy. As we’ve seen in our survey, new technology is helping small business owners run their companies more efficiently, maintain more control over their business and offer more complex products to customers. This creates more opportunities for small business owners to be successful, regardless of their generation.


For an in-depth look at generational differences between small business owners and the key findings of the Bank of America Small Business Owner Report, please watch the video of our Small Business Social Series Hangout as the panel discusses the generational differences among U.S. small business owners and what this means for the small business landscape.

Eco-Business_body.jpgby Robert Lerose.

 

According to a 2012 survey co-sponsored by Green America, a provider of sustainable economic solutions, small businesses that offered green products and services reported robust customer growth and strong sales, even as the broader economic recovery stayed sluggish. But you don't have to sell organic products to see an advantage. Adopting green practices within your own operation and empowering your employees to come up with green solutions can raise morale, cut your expenses, enlarge your savings, and hand you a competitive marketing edge when you pursue new customers, as these experts explain. 

 

Assess first

"Ninety-five percent of sustainable projects are either cost neutral or positive in the long term," says Jeana Wirtenberg, CEO of Transitioning to Green, a Montville, New Jersey-based firm that helps companies adopt sustainability practices. "Small businesses are not seeing the tremendous opportunity that is here to engage their employees, to increase their customer base, and to increase their market share."

 

Wirtenberg says that small businesses should start by first doing an assessment to help them figure out where they are, where they want to go, how they can get the best return on their investment, and the changes that are right for their particular circumstances. She suggests focusing on five areas:

 

Facilities: Depending on whether you rent or own your building will help determine ways to make it more energy efficient. For example, updating your windows can cut down on heating and air conditioning costs.

 

Resources: Identify sources of wasted energy and consider shifting to sustainable forms, such as solar or wind. Switching to low-flow toilets can save water. "Is your waste going into a landfill or can you come up with a zero waste plan?" she asks.

 

Eco-Business_PQ.jpgFinances: How much can you afford to invest in changes now? How long can you wait before seeing a return on your investment? "The most important [consideration] for a small business is their profitability," says Wirtenberg. "How do they measure that? What risks do they face? We just saw how superstorm Sandy wiped out a lot of small businesses. As they're rebuilding, are they thinking about the risks from future weather changes? To stay in business and be sustainable, everyone has to find a way to invest in the future."

 

People: Leaders should give more control to their employees to come up with green projects. "It's a way that people will get excited. It ties into the health and wellness of the employees as well as their engagement and satisfaction levels," she says.

 

Supply chain: Take a close look at the companies you buy from to see whether they engage in eco-friendly practices that could help your small business lessen costs and your environmental impact.

 

After the assessment, put together a plan with a timeline. Even modest accomplishments, such as forming a green team within three months to improve recycling procedures, can energize employees. "Sustainability is one area that can bring people together," Wirtenberg says. "Everybody is connected in more ways than they realize."

 

Make the easy changes

Experts say that small businesses should start with easy fixes or so-called "low-hanging fruit" before they tackle more ambitious goals.

 

"Light bulbs are a perfect place to start. It's not all about saving energy, but about having the right kind of light bulbs for the right space," says Alex Kahl, president of Kahl Consultants, a San Rafael, California-based Internet marketing services firm that has been awarded the Green America Business Seal of Approval for its eco-friendly standards. "It's also about maximizing daylight by maybe moving some tables around so that they're closer to windows or having skylights put in."

 

Turning off office equipment at night, putting computers on power saving mode whenever possible, installing high efficiency filters on the faucet heads, hooking up a motion sensor in the bathroom to open and close the lights automatically can save you money quickly. Some improvements may qualify for tax rebates or other incentives—another small windfall.

 

Kahl uses computers, laptops, and printers with high Energy Star ratings, installed solar photovoltaic panels that convert sunlight into electricity, and recycles rigorously. "My expenses have been going down constantly over the last few years based on all the investments I've made. It takes me less money today to run my business than it did five or 10 years ago," he says.

 

Rewarding employees for pursuing green solutions, such as letting them share in the cost savings, can be a strong incentive to keep them motivated. "Even a business that is extremely green will still have a hard time shifting whenever they move from one method to another," Kahl says. "You're going to have to push people to do something, so take it small. Once you reach a plateau and people see the benefits, it's important to let them know how much money they saved the company."


Kahl sees a growing number of consumers making buying decisions based on green factors, so businesses should make them part of their advertising. "You need to promote it and let people know because that's money in the bank."

 

Lean towards green

"I have a colleague who said it very well: 'lean towards green,'" says Yvette Little, owner of Simply Green Solutions, an Ellenton, Florida-based project management services firm with a specialty in green solutions. "So even if you're not doing every green step—if you lean towards green and you start thinking about it, it becomes part of your daily practice."

 

Cutting down on the amount of documents that your office prints, printing on both sides of the paper, or adjusting the margins for a larger print area can have a profound effect over time. For example, Realize Bradenton, a small-sized non-profit economic development organization in Florida, says that their productivity increased by about 20 percent after Little helped them move all their management documents online for easier access and revision.

 

To remind employees of the cost savings between black-and-white and color printing, Little says to put notes on their computer monitors with the actual prices. Conducting a meeting via a service like Skype can dramatically reduce travel, time, and energy resources.

 

Being green can take many forms beyond recycling or sustainable energy solutions. For example, Little works with many non-profits and arranges for for-profit companies to donate their leftover supplies or spare equipment. "It's a great marketing tool for for-profit businesses to be linked with non-profits and with causes they believe in," Little says. "It gives more credence and credibility to both partners."

I was born the same year that my dad started his carpet business. He and his partner Phil were successful from the start. They grew their business at the rate of about one new store a year. When I became a teenager, they opened their 13th store. Everything seemed so perfect.

 

Except apparently it wasn’t.

 

When I was about to graduate high school, my dad decided that he wanted to leave his business.

 

I was genuinely surprised when I learned that he was going to sell his share to Phil and go back to owning only one store (albeit a giant carpet warehouse). When I asked him why he decided to go this route, he explained that with the business expanding at the pace it did, he had become a manager. He was no longer an entrepreneur. He didn’t like that at all.


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There are all sorts of reasons why someone might want or need to leave their business. Here are the top five reasons I hear about most often:

 

1. Mission accomplished: Some entrepreneurs start their business with a specific exit strategy in mind. Indeed, those high-tech startups you hear about in Silicon Valley all began with a plan for how the founders and their investors will cash out.

 

Some entrepreneurs start a business with a specific goal in mind and when they achieve this goal, they feel it’s time to close the door and move on to something else.

 

Whether it’s cashing out while the getting is good or closing the doors because you’re ready, if you have done what you set out to do, then it just might be time to move on to the next thing.

 

2. It’s boring and/or no longer fun: My dear old dad fell into this category. Look, if you are going to take the risk and put in the hours that starting and owning a small business requires, then it better be something you enjoy. And when the time comes that it no longer is, then that’s the time to call it a day.

 

Click here to read more articles from small business expert Steve Strauss

 

3. It’s not working: A business may not work for someone for all sorts of reasons – maybe it’s not bringing in the money it once did or maybe conditions have changed such that running the business is more effort than it’s worth. If for whatever reason your line of business is no longer working, this too is a sign that closing up shop probably is not such a bad idea after all.

 

4. It’s too stressful: Businesses change and people change. The stress of a small business may be something that is easier to handle when someone is younger, a time when one is more willing and able to deal with such pressures. Or it may be that a business that was easy to run at one time is no longer so easy to run. .

 

5. It’s just time: Sometimes the end of the road simply is what it is. And that’s perfectly fine. What will you do next? That’s the exciting part. On to a new adventure. Lucky you.

 

And dad? Boy did he love owning that one big store. In fact, it was his favorite time ever in business. He was an entrepreneur again.

 

About Steve Strauss

Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest,The Small Business Bible, now out in a completely updated third edition. You can listen to his weekly podcast, Small Business Success, visit his new website TheSelfEmployed, and follow him on Twitter. © Steven D. Strauss.

http://www.smallbusinessonlinecommunity.bankofamerica.com/people/Steve%20Strauss/content

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