Should You Start A Business Now?

Thomas E. LunneySCORE, Cincinnati, Ohio

What Do You Think?

“A wise man will make more opportunities than he finds.”

Sir Francis Bacon

What Is A Bad Economy?

One where you are making less money. One where you are spending less

money. One where your kids moved back in with

you. One where your parents moved in with

you.

What Really Is A Bad Economy?

Record Unemployment. Closing of Businesses. Cuts in Spending. Negative Press. Bottom Line - Fear.

What is the Real Story?

People are afraid. Business owners trying to stay in business. Employees trying to stay employed. Waiting to see what happens.

People think there is nothing they can do. I cannot influence anything. Who will take care of me? How can I take care of my family?

What is Fear?

Forget Everything And Run

What Really is Fear?

FocusEnergyAccept Responsibility

Trademarked. Used by permission of Lt. Col. Rob “Waldo” Waldman.

How to use FEAR - Focus

Who are you? What do you know? What training do you need? What keeps you awake at night? What keeps your spouse awake at

night? Analyze the situation.

How to use FEAR - Energy

What do you bring to the table? Who can you count on? What help can you get? Who are the professionals you need? What physical and mental shape am I

in? Take the appropriate action.

How to use FEAR - Accept

It always boils down to you. It is your problem. Change what you can. Sweat the small stuff. Can you really manage a business. Trust but verify.

How to use FEAR Responsibility

The buck stops here. Only I am in charge of myself. I am a victor not a victim. Stick to your decision. You can make a difference. 60 to 80 hour weeks.

Small Business Opportunities

Small business is going to get us out of this bad economy.

Starting a small business now is better than ever.

Financing a startup business requires about 20% from owner.

Concentrate on your local community.

Small Business Opportunities

Auto repair Dog grooming Barbeque sauce Specialty restaurant Part time job placement Social media maven Baby sitting service Professional networking community

State Economic Growth

Source: U.S. Department of Bureau of Economic Analysis Updated: 6/2/09

Provided by Jeni Middaugh, VP UDF

What Can You Do?

High school kids in Howard, South Dakota. Miner County Population shrinking due to youth

migration. Highest elderly population per capita in

South Dakota. Howard – 1000 residents Miner County – 3000 residents Income - $26,500

What Did They Do?

Asked folks to start buying local. Residents were driving one hour away to

shop in Sioux Falls. Started a campaign –

Let’s keep Miner dollars in Miner County.

Looking for only 10% of disposable income to be spent in Miner County. Figured to generate $7 Mil. Actually generated $15.6 Mil. the first year.

From the book Switch by Chip and Dan Heath.

Does This Really Work?

From the Civic Economics’ Andersonville Study, October 2004

Times the money circulates locally LOCAL(68% stays)

BIG BOX(43% stays)

1 TIME $680,000 $430,000

2 TIMES $462,400 $292,400

3 TIMES $314,432 $198,832

4 TIMES $213,814 $135,205

5 TIMES $145,393 $91,940

6 TIMES $98,867 $62,519

7 TIMES $67,230 $42,513

TOTAL $1,982,136 $1,253,410

Why is this important?

• Local merchants generate substantially greater economic impact than chain firms.

• Replacement of local businesses with chains will reduce the overall vigor of the local economy.

• Changes in consumer spending habits can generate substantial local economic impact.

• Great care must be taken to ensure that public policy decisions do not inadvertently disadvantage locally owned businesses. Indeed, it may be in the best interests of communities to institute policies that directly protect them.

Summary

Decide how can you serve your target market better than the competition?

What is your competitive edge? How can you tailor your products and

services, pricing, distribution and promotional efforts to your advantage?

How do you address consumers’ needs that are not being adequately met?

Final Thoughts

There is more opportunity for you today than at any other point in history.

You can succeed in this economy. Be honest in your appraisal of yourself

and your business. Think of an airplane

Reuse? Crash?

Panel Discussion

Jennifer McClure, President, Unbridled Talent, LLC

Kim Blatt, Owner, White Oak Nutrition, Matthew Cuff, Owner, Just Q'in Barbeque

Catering ltd Heather E. Curless Owner, Architect, LEED

AP, GREENER STOCK, Elizabeth Mariner, Publisher of Express

Cincinnati

Questions for Panel

What talents did you bring from your former business to your present business? Previous employment. Previous training. Staying current. Retaining clients. Getting new clients.

Questions for Panel

How did you decide on a location for your business? High traffic area? Is location important? Single or multiple locations? Considerations?

Questions for Panel

How did you decide on what business to start? Analysis of food industry? Passion for food industry? Single or multiple locations? Considerations?

Questions for Panel

How did you decide that the green industry was a good idea? Passion for green industry? Analysis of green industry? Education required? Local verses internet sales? Store location?

Questions for Panel

How did you decide to take over an existing business? Motivation for business? Retention of client base? Advertisement sales up or down? Local sales and information only?

Questions for Panel

How do you engage your customers to build loyalty, generate publicity and create interest?

How did you finance your startup? What would you do differently? What are you doing currently? Social Media – help or hype?

Summary

Opening a business takes guts. Staying in a business takes guts. Expanding a business takes guts. If it was easy everyone would open a

business. Support your local businesses. YOU are a local business.