August 2009

EDITORIAL

In this edition of your SCORE BizSuccess Newsletter, we have some great news for qualifying small business owners.  A new SBA guaranteed loan program offers  loans of up to $35,000, for five years, at 0% interest.  And, that's an offer that's hard to refuse. 

We also have some good advice about how you can promote your small business on a shoestring, and we'll introduce you to some expert counselors who can show you how to work smarter, not harder.

Bob Presley, Editor

SCORE News You Can Use

New SBA Loans at Zero Percent Interest

By Jim Maricelli, SCORE Business Counselor

If your small business is struggling to meet expenses during these tough economic times, the U.S. Small Business Administration's new loan program may be just the ticket to pull you through and help you become profitable again.  America's Recovery Capital Loan Program (ARC) can provide an SBA guaranteed loan of up to $35,000, at no interest, with up to 5 years to repay.  

And, that's an offer you can't refuse. Read More.

SCORE BizSuccessTips

16 Ways To Promote Your Business On a Shoestring

"If we build it they will come".   That was an interesting storyline for the classic movie, "Field of Dreams", but it doesn't work very well in running a business.  The attraction of customers requires marketing, and marketing costs money. Therein lies the dilemma.  Most small businesses simply don't have a lot of spare cash to spend on marketing.  

So what can a small business owner do?  How does a business do marketing on a shoestring?   Here are 18 proven ways to advertise your business without breaking the bank.  Read More.

Learn to work smarter, not harder.  Get the marketing help you need from a knowledgeable SCORE marketing specialist.  For a list of counselors that best serve your needs, click here.

Counselor Spotlight

Robert McClammy, Attorney, Certified Public Accountant, and SCORE Business Counselor

Even among SCORE counselors, all with long years of hands-on experience and a wealth of business expertise, Robert McClammy stands out.  He holds a bachelor's degree in accounting and economics from Nichols State University, an MBA from Louisiana State University and a Doctor of Jurisprudence degree from Loyola University.  Mr. McClammy is a Certified Public Accountant, and is licensed to practice law in both Louisiana and Texas.

In the world of financial management, Robert McClammy has done it all.  As a senior level executive for various companies operating both in the US and internationally, he has a broad range of experience spanning from environmental to engineering services. He has actively managed the areas of accounting, controllership, information systems, risk management and legal, while advising his executive teams and boards on strategic initiatives.  He has negotiated numerous multi-million dollar sell agreements, mergers and acquisitions for major corporations. During his long business career, ongoing duties included risk management involving tens of millions of dollars, and the implementation of cash-flow management, financial reporting systems and business forecasting.

Robert brings to SCORE more than twenty years experience as a financial officer and member of the executive management team of various companies, and has a broad range of business experience in the management of operating reporting systems, financial analysis, contracts, mergers and acquisitions and strategic planning. 

Since joining SCORE in 2007, Robert has counseled hundreds of clients, many coming back time after time for his expert advice. Whether you need to develop a business plan, review your financials, or get an expert critique of your business plan draft before you see a banker or investor, Mr. McClammy can offer valuable advice.  And, as with all SCORE counseling, his services are free of charge. 

An appointment is required.  For information please contact:

The SCORE Montgomery County Area Office

1110 North Loop 336 West, Suite 100

Conroe, Texas 77301

Telephone (936) 442-7152

July 2009

EDITORIAL

In these tough recessionary times, climbing the ladder of success seems to get harder and harder.   If that's where you are, you might benefit from the advice of famous business management expert, Peter Drucker: 

"Efficiency is doing things right;

effectiveness is doing the right things."

You're working hard to climb the ladder of success, but is your ladder leaning against the wrong tree?  Is your hard work focused on doing the right things?  Take a look at the following article and decide. 

Bob Presley, Editor

SCORE BizSuccessTips

Is Your Ladder Leaning Against the Wrong Tree?

Consider this even more direct question:  What is the purpose of your business?  My guess is that the typical business owner might answer, "Well, duh!  The purpose of any business is to make money, to make a profit." 

But, world-renowned management consultant Peter Drucker made the argument that this commonly accepted belief is fundamentally wrong, that creating profit is not the primary purpose of a business.  He contends that being focused on profits does not produce success, but just the opposite; it causes business failure.

Read the Article. Click Here.

After reading the above article, should you decide that you need some expert assistance in formulating your own customer focused marketing plan, SCORE has dozens of counselors, with decades of real world marketing experience, who are eager to help.  And, as always, SCORE counseling services are free of charge.

For a listing of SCORE marketing specialists that best serve your needs, Click here.

Counselor Spotlight

Sam Dubinsky, Score Business Counselor

Born in Brooklyn NY and raised in the Bronx, Sam Martin Dubinsky arrived in Houston in 1956, where he worked as a hair stylist under the professional name of "Mr. Martin". That year, 1956, Sam's employer offered every contestant in the Miss Houston Beauty Pageant a free and complete beauty consultation with Mr. Martin. 

An article in the Houston Post declared, "When Miss Houston is crowned, Martin will accompany her to the Miss Texas Pageant in Kerrville, and if she becomes Miss Texas, he will go with her to Atlantic City, NJ, for the Miss America contest." 

Wow, some young guys get all the great jobs! 

"Mr. Martin" worked as a hair stylist for 17 years, including the prestigious Sakowitz Beauty Salon.  In 1968, along with two other partners, Mr. Dubinsky opened Ideal Beauty Supply, to service the beauty salon trade with professional supplies and equipment.  The company eventually opened seven other retail and wholesale locations, and was involved with 14 other stores. 

After retirement, Sam joined SCORE in 1992, and recently celebrated 17 years as a business counselor with our organization. 

In June, 2009, one of Sam's SCORE clients, Yamile Jackson, was awarded "National Entrepreneur of the Year", tops in her category for the entire nation.  In September, she will be going to Washington D.C. to receive the award.   Bob Ashfield, another capable SCORE counselor, assisted in Sam's mentoring of Yamile.  Does Sam get to travel with her?  Naaah!  No guy can continue to be that lucky for an entire lifetime!

42 years in the beauty industry, including 17 years as a hair stylist and 25 years as a major Houston area beauty supply distributor.  If you own a business in the beauty industry, or if you're thinking of starting one, give yourself the gift of some counseling from Sam Dubinsky.  Like every SCORE counselor, his services are free of charge.

For information, please call: The SCORE Business Information Center,  8701 S. Gessner, Suite 1200, (713) 773-6565

June 2009

EDITORIAL

In our last SCORE BizSuccess Newsletter we asked, "What's your economic forecast for Houston business?"

Your answers reveal that some of you are doing quite well, even increasing sales and profits over last year.  But, for others, profitability is down.  Without further comment, we will simply allow your collective answers to speak concerning the economic climate for small business in the Houston area.

Bob Presley, Editor

Read the Survey Results. Click Here. 

SURVIVING the Tough Times

Washington Dignitary To Be Keynote Speaker

At SCORE's Business Forum, Surviving the Tough Times

Saturday, May 30, 8:30am - 2:00pm

Houston Community College Campus, 3100 Main at Elgin

Breakout sessions (in English and Spanish)

1.      Improving and Keeping Good Credit

2.      Marketing and Business Plans

3.      Understanding Banking and Alternative Lending Opportunities

4.      Business Development

Free Admission and Free Lunch

Register today at: score37@scorehouston.org, or Call  713-773-6565

Read All About This Important Event.

SCORE BizSuccessTips

Maintaining and Increasing Revenues During the Tough Times

By Rick Leslie, SCORE Business Counselor

In earlier SCORE BizSuccess Newsletters, we suggested these important steps toward  "Surviving the Recession":

Survival Step 1:  Give your business a thorough internal checkup.  Utilizing an updated forecast, and cash flow analysis, arm yourself with the most accurate estimate of what you might expect in the coming year.  Take a hard and honest look at the steps that will be required to stay solvent, with a positive cash flow, over the next 12 months.

Survival Step 2:  Stop the bleeding. Review your company's top 5 expenditures.  Know where the money is going.  Monitor all expenses closely. 

Now, if you've administered the above diagnostics and learned that the patient needs to be on life support, what will you do about it?  It doesn't require a MBA degree to see that what you really need is increased revenues.  But, how do we accomplish such a feat in recessionary times such as these?

Read Rick Leslie's timely advice on how to maintain, and even increase, revenues during these tough economic times.

SCORE  Insider's Report

How To Value a Business

By Jeff Jones, SCORE Business Consultant

As a business broker and business appraiser for the past 30 years, I have sold and appraised many businesses. The value of a business will depend upon a lot of factors, such as the number of years in business, number of employees, the amount and condition of the equipment, facilities, supplies and inventory, the type of customers, the degree customers are tied to the owner and the stability of earnings. The value of a business is usually a function of its earnings, not its tangible assets.

There are three approaches to valuing a business. Click here to learn How to Value Your Business.

Counselor Spotlight

Jacob (Jake) Struck, Score Business Counselor

With a background in science and engineering, Jake Struck enjoyed a long and successful career in the textile, chemical and pharmaceutical industries.  During his 42-year career, he was engaged in research, new product development, mergers & acquisitions and technology development with large corporations and a number of smaller businesses. As Director of Applied Sciences with a national pharmaceutical company, he led a group of technical professionals in the fields of biochemistry, microbiology and biomedical engineering.

In 1978, in order to broaden his business marketing and financial management experience beyond technical areas, he joined a small company as Director of New Product Development. He was elected to their Board of Directors and was appointed Executive Vice President when the company went public.

Jake has recently been cited for his fifty years of membership and service in the American Chemical Society, has been elected to Sigma Xi and the New York Academy of Sciences, and is listed in American Men and Women of Science.

Mr. Struck has been a valued SCORE counselor since 1996.  His areas of expertise are Management, Manufacturing, Planning, Financial Management and Patents & Trademarks.  Jake Struck's wealth of hands-on business expertise, and long years of experience, can be yours free of charge. For your personal and private counseling appointment, please call: SCORE, Palm Center Business Information Center, 5330 Griggs Road at Martin Luther King Blvd., 713-845-2424

May 2009

EDITORIAL

What's your economic forecast for Houston business? Give us your views. Click Here.  

Every time we turn on the news or pick up a newspaper, the economy is the lead story. With layoffs and cutbacks, the government's stimulus spending, the mortgage crisis, bank and auto industry bailouts, the economy dominates the news. But, most of that focus is on BIG business, and on those areas of the country that have been hardest hit by the recession.

We think it's time to get your views.  How seriously has the recession affected the way you do business here in the Houston area? What is your economic outlook for the remainder of 2009?

Please give us your take on the Houston area's economic climate for small business owners. It will only take about 60 seconds of your time, and you'll benefit from the thinking of other business owners like yourself.  We'll compile the results and include your collective thoughts in our next "SCORE BizSuccess Newsletter".

Bob Presley, Editor

SURVIVING the Recession

Survival Step 1 - An Internal Examination

Last month, we advised that you give your company a very objective internal review.  With an updated 12-month forecast, and cash flow analysis, give yourself the most accurate estimate of what you might expect in the coming year.  Take a hard and honest look at the steps that will be required to stay solvent, with a positive cash flow, over the next 12 months.

Survival Step 2 - Stop the Bleeding

Click here for "Ten Ways to Cut Expenses"

SCORE BizSuccessTips

Taking the Hassle Out of Business Permits, Licenses & Other Regulations

By Ron Consolino, SCORE Business Counselor

There are many business regulations of which most of us are totally unaware.  But it's information that any new business owner must know to avoid running afoul of the law.  Determining the licenses and permits that are required for a particular business can be a rather confusing puzzle.  Similar businesses might be located across the street from one another, and yet be in different cities or counties, and thus face different regulatory requirements.  So, where does a start-up business look for information on the array of licenses and permits needed at the local, state and federal levels of government?   

The answer is simple.  Click here for an easy One-Stop solution.

SCORE  Insider's Report

Cleaning Up In the Janitorial Business

By Howard Fitter, Score Business Counselor

The above title might sound a bit overstated, but consider this.  My commercial cleaning business got its start in the mid 1950's, grew to 400+ employees by the 1960's and, finally, became a $20 million business before it was sold in the 1990's.  I can enthusiastically declare, "The cleaning business has been very good to me."

If you're thinking of getting into the janitorial business, allow me to give you some valuable insights into the business from a guy who has had lots of experience.

Get the inside story from SCORE's "Janitor-in-Chief". Click Here.

Counselor Spotlight

Richard Stanley, SCORE Business Counselor

Over a lifetime, Richard Stanley has been a good scout, starting as a Cub Scout, going on to Boy Scout and, finally, attaining the prestigious rank of Eagle Scout.  At an early age, through food and clothing drives, and other scouting projects, young Richard learned the importance of serving others. 

Later, when his city could not recruit sufficient numbers of police officers to adequately police the community, the young adult Richard Stanley became an officer with the Ft. Worth Police Dept., willing to put himself in harms way to protect the community, but without pay, a volunteer officer, complete with Smith & Wesson 38-caliber Combat Masterpiece handgun.

But, even "good scouts" must devote at least a little time to earning a living.   Richard's first career job (for pay, that is) was as an executive in a medical supply & equipment company, with locations in three cities.  Then he became the North American Marketing Director for, not one, but three, cardiac pacemaker manufacturers...a fitting career for a man with such a big heart.

In a third employment career, as an independent printing company owner, Richard organized and presented the first educational series on how small press printers could make extra profit by printing 4-color process on a 2-color press, making the presentation at two national printing conventions. Richard served two terms as president of the Houston Association of Quick Printers, and was honored as Houston "Quick Printer of the Year".

But, Richard Stanley has never stopped being a good scout.  Honoring more than 25 years of service as a Boy Scout adult volunteer, Mr. Stanley has been recognized with the "District Award of Merit" and the "Silver Beaver", the highest recognition that can be awarded by a Boy Scout Council.

Upon selling his printing company a few years ago, Richard sought retirement activity that would be fulfilling and satisfying, something allowing him to utilize his business knowledge in ways that would help others.  He tried business consulting for a while.  But, when he discovered SCORE, this lifelong "boy scout" found a home. 

Over the past three years at SCORE Houston, Richard has been among our most in-demand, most active counselors.  In addition, he leads our newest SCORE members through the orientation process that qualifies them as counselors.  

With Richard Stanley, the scout's pledge still rings true, "On my honor I will do my best...to help other people at all times..."

For your personal and confidential appointment, free of charge, please call:

The SCORE Business Information Center,  8701 S. Gessner, Suite 1200, (713) 773-6565

March 2009

EDITORIAL

Last month, we asked how our SCORE BizSucess Newsletter could best serve your needs.  You said, "Give us the real-world advice we need to survive in these troubled economic times." So, we'll focus on those skills you can put to work, right now, to make you a winner.  But, in this short newsletter, we can only scratch the surface. 

Small business owners are facing challenges on many fronts, including lower consumer spending and tightening credit.  Economic pressures have hit your business and customers alike.   Many small business owners have difficulty accessing capital, as well as collecting payments from deliquent customer.  But, by acting quickly and decisively to protect your business today, you can make it through this recession and emerge with an even stronger, more profitable business in the future. 

SCORE CEO Ken Yancy says, "Don't wait and don't panic.  Now is the time to meet with a SCORE mentor to make plans to tighten credit policies, cut expenses and look at holding cash in your accounts."

SCORE and Capital One Banks have teamed up to offer small business owners "Surviving the Tough Times", a series of free seminar and networking events held all across the Houston area. 

Experienced SCORE mentors are ready to help you not only survive the recession, but to be positoned for growth when the economy turns around.  Among them, you'll find experts in every area of business... strategic planning, finance, management, merchandising, sales, marketing, advertising, human resources and much more.  

And since we are funded by the federal government, our services are offered at no cost to you. 

The unbiased advice of your SCORE counselor can be trusted because we're never in the business of "selling" you anything.  Our only reason for existence is to help small business owners just like you.  

Above all, in times like these, attitude is everything.  Don't get discouraged.  Keep your chin up, work hard and work smart.  As one observer put it, "Contrary to reports, the future has not been cancelled."

Bob Presley, Editor 

Featured articles

Five Recession Pitfalls to Avoid

Today, entrepreneurs face challenges on many fronts, including lower consumer spending, rising unemployment and tightening credit.  Leading economists, the news media and government leaders all agree that these are tough times, and that the economy is likely to get worse before it gets better.  In times like these, only the smart survive.  To stay ahead of the competition, here are five recession pitfalls to avoid: Read the article

Might Residential Properties Soon Be a Bargain?

By Bill Dean, SCORE Business Counselor

There were real estate bargains to be had in every neighborhood.  It was the 1980's, and Houston was enduring the oil bust.  Real estate prices dropped like a rock. In retrospect, don't you wish you'd had the foresight to scoop up some of those bargains?  If the current mortgage crisis persists and worsens, such a residential real estate bargain basement might be looming in the future.  If you're considering an investment in residential rental properties, allow me to help with a few suggestions. Read the article

$730 Million in New SBA Funding Aimed at Freeing Up Credit for Small Business Owners 

A news release from the U.S. Small Business Administration recently announced $730 Million in new funding to the SBA, allowing the agency to help more small business owners affected by the current credit crunch.  The American Recovery and Reinvestment Act that was just passed by congress contains a package of loan fee reductions, higher guarantees, new SBA programs, secondary market incentives, and enhancements to current SBA programs aimed at unlocking credit markets and kick-starting economic recovery for the nation's small business sector. Read the News Release

SCORE Counselor Spotlight

ALLEN SHAPIRO, SCORE Business Counselor

Allen Shapiro is a highly experienced retail business executive who has spent the past 10-plus years educating, consulting and mentoring business owners on how to expand markets and achieve overall business growth.

Mr. Shapiro brings to SCORE an extensive background of hands-on retailing experience.  As Vice President, Divisional Merchandising Manager and Buyer for the Stage Stores (well known in Houston as Palais Royal and Beall's), he was part of an executive team instrumental in the company's substantial growth from 10 to over 600 stores. Allen managed buyers in Ladies Accessories, Ladies Wear, Ladies Outerwear, Junior World, Furs and Children's Wear. 

Prior to his management position with Palais Royal and Beall's, Allen  held various merchandising management positions at Allied Stores, Federated, and Macy's.

Upon retiring from Stage Stores in the 1997, Mr. Shapiro served as a full-time management consultant to City of Houston Housing and Community Development, producing and editing educational "Town Hall Forum" programs presented at multi-service centers and televised on the Municipal Channel.

Allen later served the Houston Better Business Bureau in Corporate Relations and Development, creating methodology to educate underserved business owner's issues and difficulties, as well as established business owners ready to expand, but with a need for help with their growth plans.  

Mr. Shapiro has been a member of SCORE since 2000, serving in many capacities... including Chairman of the Houston Chapter. His many successful SCORE clients have included a handbag manufacturer in Italy, a women's clothing manufacturer, women's millinery and fine jewelry.   

Allen Shapiro's business experience and expertise can become a valuable resource to your small business... free of charge.  For your own personal, private counseling appointment, call the SCORE Business Information Center at 713-773-6565.  

April 2009

EDITORIAL

The signs are undeniable.  Our national GDP is essentially flat.  Credit is tight.  The stock market is in the pits.  Unemployment is rising and there's a steady stream of bad news.  That adds up to the definition of  recession.  Leading economists, and even usually upbeat government leaders, warn us that this one is going to get worse before it gets better.  In the best of times, 40,000 U.S. businesses fail each year.  In a deep recession, that number will be much higher.

How is this recession impacting small business?  Consumer spending is down.  Both business and personal debt is rising.  Loans are difficult to obtain.  Competition will continue to intensify.  In proportion to your revenues, expenses will be going up.  For small business owners, recession means fewer customers, with fewer dollars to spend, and much greater competition for those dollars.

But, there is also a bright side. Change also creates opportunities.  In this edition of our SCORE Biz-Success Newsletter, we will focus on strategies that will help you, not only survive these difficult times, but to come out of this a winner.

Bob Presley, Editor

Surviving Recession

Your First Steps Toward Survival

By Rick Leslie, SCORE Business Counselor

Everybody's crying wolf and running for cover.  These are tough times for small business owners.  There's no profit at the end of the month and, therefore, no paycheck for the owner.  Inventory is accumulating, and customer's buying patterns are changing. What does a small business owner do?  What are the options?  It's obvious that we need to reduce costs and increase revenues, or at least maintain current revenues as best we can. 

If a small business owner is to survive these troubled economic times, and come out on the other side poised for growth, you must take several important first steps right now.

Crucial First Steps  

SCORE BizSuccessTips

You Can't Sell a Job

By Sue Phalen, SCORE Business Counselor

The typical business owners who come to SCORE have much in common.  Having worked as an employee elsewhere, they are experienced in delivering what their business produces.  Their job is their passion and it shows in how they do business. They are optimistic and motivated risk takers.

But, doing a job is vastly different from running a business.  And, therein lies a major pitfall for many small business owners.  Read More.

 SCORE  Insider's Report

The Inside, Outside, Upside & Downside Of Convenience Store Operations

 By Bill Craig, SCORE Business Counselor

Being in the C-Store business is one thing; being successful is another.  It may sound great to meet the public, manage people and build your own business.  However, if you are not prepared to meet the challenges, your success is limited, maybe doomed.

There IS considerable room to be a success in this business, but it takes preparation before you make the commitment.  If you're thinking about starting a convenience store business, here are some things to consider before you make the leap.

Get the Inside Story from SCORE's C-Store Expert

Counselor Spotlight

Irwin Miller, SCORE Business Counselor

He was born in the "Big Easy", New Orleans, but hard-working Irwin Miller got to Houston as soon as he could and, after receiving his B.S. degree in Pharmacy from the University of Houston, and starting with Mading Drug Company, quickly established himself as a leader in the pharmacy/health care industry, where he enjoyed an outstanding career of more than 45 years.  In 1951, Irwin moved on to establish his own company, Prescription Laboratory, Inc., of which he was president for more than 30 years.  As a consultant and provider pharmacist, he serviced over 100 nursing facilities caring for more than 7,000 residents.

Industry peers recognized Mr. Miller's achievement.  He was elected "Texas Pharmacist of the Year" in 1968.  He received the National Assn. of Retail Druggist's "Service to Society Award", the "Distinguished Alumnus Award" of the U of H College of Pharmacy and "Outstanding Consultant Pharmacist Award" from the Texas Pharmacy Association.  Irwin served as President of the Harris County Pharmacy Association and Director of the Texas Pharmacy Association. 

Retiring in 1995, Irwin Miller has never slowed down, serving in a variety of volunteer positions.  In 1996, he was "Volunteer of the Year" at U. of H. College of Pharmacy, where he served on the Deans Advisory Council.  He has also served as chairman of the HISD Drug Abuse Committee and in the Drug Abuse Education Program of the Texas Department of Corrections.

Mr. Miller joined SCORE in 1995 and, for more than a decade, has been a valuable mentor to hundreds of startup and established small business owners in the Houston area.  He has also served as chairman of the Houston SCORE chapter, and as a SCORE District Director. 

Irwin Miller's wealth of hands-on business experience, and his hard-earned knowledge, can be yours free of charge. For your own personal, private counseling appointment, call

SCORE Palm Center Business Technology Center, 5330 Griggs Road at Martin Luther King Blvd.  (713) 845-2424