Tuesday, December 7, 2010

Winner to Host Dale Carnegie Course

Structuring an action plan for improving leadership skills and helping develop engaged, experienced managers is a task that often gets overlooked in the busy day-to-day bustle of running a small business.

It’s critical, however, that organizations encourage their leaders of today and their managers of tomorrow to keep learning and developing interpersonal sales and management skills that can take teams to the next level.

The Tripp County Office of Development is pleased to welcome Duane Salonen and the Dale Carnegie Leadership Development team back to Winner for a 32-hour course that emphasizes ways we can maximize teamwork, leadership and salesmanship attributes in our leaders of the future.

Participants will learn how to
• eliminate the “us vs. them” attitude and increase trust
• encourage intelligent risk to push the performance envelope
• increase the flow of bottom-up ideas by giving every employee the confidence to contribute
• replace conflict with teamwork
• speed up the change process and make people more open to new ideas
• gain buy-in for a vision of the future and the strategies & tactics to get there

The revolutionary Dale Carnegie Course® approach uses team dynamics and intra-group activities to help people master the capabilities demanded in today’s tough business environment. Graduates are able to perform as persuasive communicators, creative problem solvers and focused leaders. What’s more, people develop a take-charge attitude that allows them to initiate with confidence and enthusiasm.

Don’t pass up this opportunity to invest in your management team and help deliver peak performance.

The course will be held January 6, 13, 20 and 27, 2010 at the Holiday Inn Express in Winner. For more information or to register, contact the Tripp County Office of Development at 842-1551 or email develop@winnersd.org.

Friday, October 22, 2010

Courting Customers Online

A cool article from the Rapid City Journal about how small businesses are using social media and online notifications to attract customers:

More businesses court customers online

Bully Blends Coffee and Tea Shop sends its online audience daily “blasts” about specials such as ham and bean soup, beef brisket ciabatta and vegan minestrone.

The 756 Facebook fans and 129 Twitter followers of the business receive menu updates every morning, which turns them into customers for lunch and dinner, according to Aida Compton, owner of Bully Blends.

“We have some particular lunch menus that are very popular, some soup,” Compton said. “When we post that we have that soup that day, people come in because they know.”

The daily promotion on social network sites creates a good problem for the business — especially on the soup-plus-cornbread days. The cooks can’t make enough, regardless of the size of pot they use, Compton said.

As online consumption becomes increasingly portable, businesses are moving away from the personal computer model of getting the word out about their business and toward a presence on smart phones.

Compton said making Bully Blends’ business more mobile is something that interests her and her husband, along with helping the restaurant become easier to find on pocket-friendly devices.

The National Retail Federation estimates that by 2015, shoppers worldwide are expected to use their mobile phones to buy goods and services worth about $120 billion, amounting to 8 percent of the total e-commerce market.

Many national companies already are cashing in on the mobile retailing concept: Target and Wal-Mart, for instance, both have mobile sites. But what about small mom-and-pop shops? Mobile phones have provided retailers with an easy, affordable way to reach new and existing customers.

Could Bully Blends customers buy their coffee and tea products from their phones, or is mobile retailing beyond their capabilities?

Mobile sales are possible, according Scott Meyer, co-founder of 9 Clouds in Sioux Falls. Meyer said he expects to start seeing more of the smaller, mom-and-pop shops set up mobile retail shops within two years to allow for actual purchases, starting first with companies that are working with national brands.

The great thing is that small-town shops with mobile technology can suddenly compete much better with national companies, Meyer said.

That doesn’t necessarily mean creating a retail application or a mobile website. In many ways, social networking and texting is a great way to slowly step into the mobile retailing landscape, and Meyer already is seeing that in Sioux Falls.

For instance, Sanaa’s 8th Street Gourmet restaurant in Sioux Falls recently started using Foursquare, a smart-phone application, to attract customers, and Nick’s Hamburger Shop in Brookings has had success in text-messaging coupons to customers.

In Rapid City, Acme Bicycles has an online Twitter and Facebook presence, and owner Tim Rangitsch plans to ramp it up this fall to increase his interaction with customers.

He also would be interested in increasing his business’ presence in the mobile world, and said GPS devices are already sending tourists to his shop.

“I do see the importance of wrangling it for the business, and I can get out more information,” Rangitsch said.

A mobile presence would simply be another way Acme Bicycles could connect nationally with mountain biking enthusiasts, encouraging them to come to the Black Hills, Rangitsch said.

Meyer said some business owners still are hesitant to use the Web to market and sell their merchandise, partly because there is so much new technology out there.

But it holds a lot of potential, particularly in catching members of the younger generation, he said.

It will be some years before mobile sales really take off with smaller companies in South Dakota. But it seems inevitable that customers someday will expect it.

Contact Holly Meyer at 394-8421 or holly.meyer@rapidcityjournal.com. Sioux Falls Argus Leader reporter Kelly Thurman contributed to this story.

http://www.rapidcityjournal.com/business/article_af4d7c6e-dd4f-11df-9640-001cc4c002e0.html

Tuesday, October 19, 2010

Workshop to Help Manufacturers Expand into Federal Contracting

The federal government spends more than $400 billion a year for goods and services, and South Dakota companies now have a chance to learn how to get a bigger piece of that federal pie.

On Monday, Oct. 25, South Dakota manufacturers can attend a one-day workshop in Oacoma on the process to obtain federal contracts.

“South Dakota manufacturers can be very competitive in this marketplace, but they have to take the time to get educated about how to deal with the federal paperwork,” Gov. Mike Rounds said. “This is a great way to learn the ropes of doing business with the federal government.”

South Dakota has more than 400 top-notch manufacturing companies, adds Richard Benda, secretary of the Department of Tourism and State Development.

“They have the technical ability to fulfill contracts for the federal government. This workshop will give them some additional administrative know-how,” Benda said.

Company officials attending the workshop will hear from business leaders who are practiced in securing federal contracts, learn how to obtain necessary operating certificates, hear from companies on sub-contracting opportunities, and be connected with additional contracting resources.

The workshop is sponsored by the Small Business Administration, the South Dakota Governor’s Office of Economic Development, the Small Business Development Center, South Dakota Manufacturing & Technology Solutions, Procurement Technical Assistance Center and the Planning & Development District III.

The workshop is at Cedar Shore Resort in Oacoma and runs from 10 a.m.-3 p.m. CDT. The workshop is free, but companies must register by Thursday, Oct. 21.

To register, contact Jean Rogers at 605-330-4243, extension 29, or visit
http://events.sba.gov/EventManagement/eventlisting.aspx?state=SD

Friday, October 8, 2010

Discovering Your Market Niche

Doing business in a small town shouldn’t mean small profits. All the successful businesses we have in Tripp County have one thing in common: they have found their niche in the marketplace and follow through with the promises they make to customers. Whether that promise is customer service, best price or innovative ideas, you can be sure that our most successful businesses more than likely ascribe to one or more of these principles in their industry dealings and tailor their activities and marketing to fit that need.

Consider using these guidelines for selecting the “best practices” for your business. They will help you make better use of principal resources: People, Time, and Money. You may be tempted to say “I want all three.”; but choosing to be all three simultaneously almost guarantees that you will become a herd member rather than a herd leader. So take a look at these three options, choose one, and then you will know what best practices are likely to best fit your organization:

1. We define success as being a highly efficient company focused on limited customer/client choices that appeal mostly to the price conscious. If that’s true, then build your processes, policies, and procedures around that value proposition. Spend a minimal amount of money on building close personal relationships with clients. Market your “pricing” ability.

2. We define success as being an innovative and creative company that can put products and services in place that tap into the previously unknown and unmet needs and wants of the marketplace. If that’s true, then you need to be putting people, time, and money into product/service research and development. Market everything as “new and improved” or as the leading edge of whatever line of business you happen to have. Your target market likes and wants “change”.

3. We define success as being trusted advisors and consultants to prospects, customers, and clients who want a great deal of personal time and attention from their vendors and suppliers. You probably chafe a little at being thought of as a vendor or supplier because that implies a more distant relationship than you want. So, your best practices are going to focus on maintaining a level of customer intimacy that the more operational efficient would find unnecessary.

-Dan Schneider, Rawls Group

Once you decide whether you are Door 1, Door 2, or Door 3, you will be able to recognize what “best practices” are most appropriate for you. Choosing the “best practices” helps you identify what business processes and procedures will help you better achieve your business goals.

On a related note, the Development Office, Winner Area Chamber of Commerce and the City of Winner have partnered to create a new, more user-friendly website to appeal to potential businesses, visitors, sportsmen and residents. We saw a customer need for more online information so we redesigned the site and now provide a fresh, clean look for our online communication.

Check out the site at www.winnersd.org for information on our community, ongoing events, city business, relocation, tourism, business start-up information and contacts! There are some cool photos on the site of various landmarks and community members; we invite you all to make it your homepage today. (Thanks to Shawn Ray and some local photographers for their outstanding photo contributions.) Additionally, if your business, club or organization has an event planned, please let the Amy and the Chamber of Commerce know, they would be glad to add it to the new online event calendar!

Monday, October 4, 2010

AG Warns Small Businesses Of Shipping Scam

PIERRE, SD - The South Dakota attorney general's office is urging small businesses to be alert for a scam that involves shipping goods from other states.

A release from Attorney General Marty Jackley says 12 businesses have been victimized this year, losing $1,000 to $2,000 each.

The scam, as described by the attorney general's office, is carried out by a person or people who contact the businesses through TTY systems - phones that do text messaging - and place large orders for items to be shipped into South Dakota. The orders require special shipping that carry big fees.

The scammer gives a name and location for money to be wired for the shipment, along with a credit card number that the business can charge. But the credit card numbers are stolen and the charges are reversed to the business.

Tuesday, September 28, 2010

SD Wind Partners Raise $16 Million in No Time

An announcement made yesterday indicates that South Dakota Wind Partners reached its $16 million investment goal in ajust over two months.

Although their minimum offering goal was met, South Dakota Wind Partners will keep the offering open for additional investment until final costs are determined.

The group will own seven turbines adjacent to Basin Electric Power Cooperative’s 101 turbines, Prairie Winds SD1 wind project in Jerauld County in central South Dakota.

The community-based, locally owned wind project will generate 10.5 megawatts of electricity. Prairie Winds SD1 agreed to operate the group’s wind farm and buy all of the electricity it produces.

Monday, September 27, 2010

The White House
Office of the Press Secretary
FOR IMMEDIATE RELEASE
September 27, 2010

BACKGROUND ON THE SMALL BUSINESS BILL SIGNING TODAY

Today, President Obama will sign the Small Business Jobs Act, a bill that will give our nation’s small businesses support and incentives to help them grow and hire. The bill includes a series of small business proposals that the President put forth earlier this year, and small businesses will start benefiting from the bill on day one.

The Small Business Jobs Bill Will Provide Immediate Support for Small Businesses:
The bill immediately extends successful SBA Recovery Act provisions, meaning that within a few days, it will restart the SBA’s Recovery lending, beginning with the more than1,300 small businesses that have been waiting to get the credit they need – with thousands more benefitting in the coming weeks.

And the bill includes eight new small business tax cuts – all effective as of Monday, and applying to small businesses’ taxes for this year – providing an immediate incentive for businesses to make new investments and expand.

For example:
• if you are a small business and you buy new equipment, you can immediately write off the first $500,000 of your investments;
• if you are one of over one million eligible small businesses, key long-term investments in your company will be subject to zero capital gains taxes;
• if you are an entrepreneur and take a chance on a new idea, you can deduct the first $10,000 of your start-up costs;
• and if you are self employed you can deduct 100 percent of the cost of health insurance for you and your family from your self-employment taxes.

MORE DETAILS:
Eight Small Business Tax Cuts – Effective Today, Providing Immediate Incentives to Invest: The President had already signed into law eight small business tax cuts, and on Monday, he is signing into law another eight new tax cuts that go into effect immediately.

1. Zero Taxes on Capital Gains from Key Small Business Investments: Under the Recovery Act, 75 percent of capital gains on key small business investments this year were excluded from taxes. The Small Business Jobs Act temporarily puts in place for the rest of 2010 a provision called for by the President – elimination of all capital gains taxes on these investments if held for five years. Over one million small businesses are eligible to receive investments this year that, if held for five years or longer, could be completely excluded from any capital gains taxation.

2. Extension and Expansion of Small Businesses’ Ability to Immediately Expense Capital Investments: The bill increases for 2010 and 2011 the amount of investments that businesses would be eligible to immediately write off to $500,000, while raising the level of investments at which the write-off phases out to $2 million. Prior to the passage of the bill, the expensing limit would have been $250,000 this year, and only $25,000 next year. This provision means that 4.5 million small businesses and individuals will be able to make new business investments today and know that they will earn a larger break on their taxes for this year.

3. Extension of 50% Bonus Depreciation: The bill extends – as the President proposed in his budget – a Recovery Act provision for 50 percent “bonus depreciation” through 2010, providing 2 million businesses, large and small, with the ability to make new investments today and know they can receive a tax cut for this year by accelerating the rate at which they deduct capital expenditures.

4. A New Deduction of Health Insurance Costs for Self-Employed: The bill allows 2 million self-employed to know that on their taxes for this year, they can get a deduction for the cost of health insurance for themselves and their family members in calculating their self-employment taxes. This provision is estimated to provide over $1.9 billion in tax cuts for these entrepreneurs.

5. Tax Relief and Simplification for Cell Phone Deductions: The bill changes rules so that the use of cell phones can be deducted without burdensome extra documentation – making it easier for virtually every small business in America to receive deductions that they are entitled to, beginning on their taxes for this year.

6. An Increase in the Deduction for Entrepreneurs’ Start-Up Expenses: The bill temporarily increases the amount of start-up expenditures entrepreneurs can deduct from their taxes for this year from $5,000 to $10,000 (with a phase-out threshold of $60,000 in expenditures), offering an immediate incentive for someone with a new business idea to invest in starting up a new small business today.

7. A Five-Year Carryback Of General Business Credits: The bill would allow certain small businesses to “carry back” their general business credits to offset five years of taxes – providing them with a break on their taxes for this year – while also allowing these credits to offset the Alternative Minimum Tax, reducing taxes for these small businesses.

8. Limitations on Penalties for Errors in Tax Reporting That Disproportionately Affect Small Business: The bill would change, beginning this year, the penalty for failing to report certain tax transactions from a fixed dollar amount – which was criticized for imposing a disproportionately large penalty on small businesses in certain circumstances – to a percentage of the tax benefits from the transaction.

Extension of Successful SBA Recovery Loan Provisions— Immediately Supporting Loans to Over 1,300 Small Businesses : With funds provided in the bill, SBA will begin funding new Recovery loans within a few days of the President’s signature, starting with the more than 1,300 businesses – with loans totaling more than $680 million – that are waiting in the Recovery Loan Queue.

• In Total, Extension of Provisions Which Have the Capacity to Support $14 Billion in Loans to Small Businesses: Extending these Recovery loan enhancements – which increase guarantees for SBA’s largest loan program (the 7(a) program) to 90% and reduce fees for the 7(a) and 504 program – has the capacity to support $14 billion in lending to small businesses. Already, SBA Recovery loan provisions have supported $30 billion in lending to over 70,000 small businesses.

• Within Coming Weeks, the Bill Will Allow SBA to Support Larger Loans As Well: The bill also increases the maximum loan size for SBA loan programs, which in the coming weeks will allow more small businesses to access more credit to enable them to expand and create new jobs. The bill:

o Permanently raises the maximum loan size for the SBA’s two largest loan programs, increasing maximum 7(a) and 504 loan size from $2 million to $5 million and the maximum 504 manufacturing related loan size from $4 million to $5.5 million.
o Permanently raises the maximum loan size for SBA microloans, increasing it from $35,000 to $50,000 and strengthening a critical tool for entrepreneurs and business owners in underserved markets to access start-up capital.
o Temporarily raises the maximum loan size for SBA Express loans from $350,000 to $1 million, providing greater access to working capital loans that small businesses use to purchase new inventory and take on their next order – allowing them to create new jobs.

• Treasury Is Working to Quickly Implement the Small Business Lending Fund and State Small Business Credit Initiative: In addition to these SBA provisions, Treasury is working to quickly implement two new programs designed to support private-sector lending to credit-worthy small businesses, and expects to release further details in the coming weeks concerning applications for these programs.

o The Small Business Lending Fund would make available $30 billion in capital to small banks with incentives to increase small business lending, potentially supporting several multiples of that amount in new credit.
o The State Small Business Credit Initiative will support at least $15 billion in new lending by strengthening state small business programs – many of them facing budget cuts – that leverage private-sector lenders to extend additional credit.

###

Monday, September 20, 2010

10 Mistakes that Start-Up Entrepreneurs Make

August 31, 2010
By Rosalind Resnick

When it comes to starting a successful business, there's no surefire playbook that contains the winning game plan.

On the other hand, there are about as many mistakes to be made as there are entrepreneurs to make them.

Recently, after a work-out at the gym with my trainer—an attractive young woman who's also a dancer/actor—she told me about a web series that she's producing and starring in together with a few friends. While the series has gained a large following online, she and her friends have not yet incorporated their venture, drafted an operating agreement, trademarked the show's name or done any of the other things that businesses typically do to protect their intellectual property and divvy up the owners' share of the company. While none of this may be a problem now, I told her, just wait until the show hits it big and everybody hires a lawyer.

Here, in my experience, are the top 10 mistakes that entrepreneurs make when starting a company:

1. Going it alone. It's difficult to build a scalable business if you're the only person involved. True, a solo public relations, web design or consulting firm may require little capital to start, and the price of hiring even one administrative assistant, sales representative or entry-level employee can eat up a big chunk of your profits. The solution: Make sure there's enough margin in your pricing to enable you to bring in other people. Clients generally don't mind outsourcing as long as they can still get face time with you, the skilled professional who's managing the project.

2. Asking too many people for advice. It's always good to get input from experts, especially experienced entrepreneurs who've built and sold successful companies in your industry. But getting too many people's opinions can delay your decision so long that your company never gets out of the starting gate. The answer: Assemble a solid advisory board that you can tap on a regular basis but run the day-to-day yourself. Says Elyissia Wassung, chief executive of 2 Chicks With Chocolate Inc., a Matawan, N.J., chocolate company, "Pull in your [advisory] team for bi-weekly or, at the very least, monthly conference calls. You'll wish you did it sooner!"


3. Spending too much time on product development, not enough on sales. While it's hard to build a great company without a great product, entrepreneurs who spend too much time tinkering may lose customers to a competitor with a stronger sales organization. "I call [this misstep] the 'Field of Dreams' of entrepreneurship. If you build it, they will buy it," says Sanjyot Dunung, CEO of Atma Global, Inc., a New York software publisher, who has made this mistake in her own business. "If you don't keep one eye firmly focused on sales, you'll likely run out of money and energy before you can successfully get your product to market."


4. Targeting too small a market. It's tempting to try to corner a niche, but your company's growth will quickly hit a wall if the market you're targeting is too tiny. Think about all the high school basketball stars who dream of playing in the NBA. Because there are only 30 teams and each team employs only a handful of players, the chances that your son will become the next Michael Jordan are pretty slim. The solution: Pick a bigger market that gives you the chance to grab a slice of the pie even if your company remains a smaller player.


5. Entering a market with no distribution partner. It's easier to break into a market if there's already a network of agents, brokers, manufacturers' reps and other third-party resellers ready, willing and able to sell your product into existing distribution channels. Fashion, food, media and other major industries work this way; others are not so lucky. That's why service businesses like public relations firms, yoga studios and pet-grooming companies often struggle to survive, alternating between feast and famine. The solution: Make a list of potential referral sources before you start your business and ask them if they'd be willing to send business your way.


6. Overpaying for customers. Spending big on advertising may bring in lots of customers, but it's a money-losing strategy if your company can't turn those dollars into life-time customer value. A magazine or web site that spends $500 worth of advertising to acquire a customer who pays $20 a month and cancels his or her subscription at the end of the year is simply pouring money down the drain. The solution: Test, measure, then test again. Once you've done enough testing to figure out how to make more money selling products and services to your customers than you spend acquiring those customers in the first place, roll out a major marketing campaign. (See related article, "On a Tight Budget? How to Land a Client.")


7. Raising too little capital. Many start-ups assume that all they need is enough money to rent space, buy equipment, stock inventory and drive customers through the door. What they often forget is that they also need capital to pay for salaries, utilities, insurance and other overhead expenses until their company starts turning a profit. Unless you're running the kind of business where everybody's working for sweat equity and deferring compensation, you'll need to raise enough money to tide you over until your revenues can cover your expenses and generate positive cash flow. The solution: Calculate your start-up costs before you open your doors, not afterwards.


8. Raising too much capital.
Believe it or not, raising too much money can be a problem, too. Over-funded companies tend to get big and bloated, hiring too many people too soon and wasting valuable resources on trade show booths, parties, image ads and other frills. When the money runs out and investors lose patience (which is what happened 10 years ago when the dot-com market melted down), start-ups that frittered away their cash will have to close their doors. No matter how much money you raise at the outset, remember to bank some for a rainy day.


9. Not having a business plan. While not every company needs a formal business plan, a start-up that requires significant capital to grow and more than a year to turn a profit should map out how much time and money it's going to take to get to its destination. This means thinking through the key metrics that make your business tick and building a model to spin off three years of sales, profits and cash-flow projections. "I wasted 10 years [fooling around] thinking like an artist and not a business person," says Louis Piscione, president of Avanti Media Group, a New Jersey company that produces videos for corporate and private events. "I learned that you have to put some of your creative genius toward a business plan that forecasts and sets goals for growth and success." (See related article, "Are Business Plans a Waste of Time?")


10. Over-thinking your business plan. While many entrepreneurs I've met engage in seat-of-the-pants decision-making and fail to do their homework, other entrepreneurs are afraid to pull the trigger until they're 100% certain that their plan will succeed. One lawyer I worked with several years ago was so skittish about leaving his six-figure job to launch his business that he never met with a single bank or investor who might have funded his company. The truth is that a business plan is not a crystal ball that can predict the future. At a certain point, you have to close your eyes and take the leap of faith.

Despite the many books and articles that have been written about entrepreneurship, it's just not possible to start a company without making a few mistakes along the way. Just try to avoid making any mistake so large that your company can't get back on its feet to fight another day.

Tuesday, September 14, 2010

Perfect Time to Purchase a Home!

PIERRE -- The South Dakota Housing Development Authority has lowered its interest rates for first-time homebuyers to the lowest in its history.

The interest rate for starting step rate loans is 2.75 percent.

Fixed Rate loans have been reduced to 3.75 percent, and the fixed rate plus option loan rate was reduced to 4.25 percent.

The authority was able to cut interest rates under new regulations in the Obama administration's New Issue Bond Program, which is designed to stabilize the housing market. The program allows state housing finance agencies to issue new mortgage revenue bonds backed by the U.S. Treasury Department.

Income limits and purchase price limits vary by county.

Check out these links for more info on homes for sale in the Winner area!
Whetham Realty: www.whethamrealty.com
Fidelity Agency: www.fidelityagency.com


Tuesday, September 7, 2010

Development Office to Host Leadership Course

Here in the Upper Midwest, small businesses tend to promote from within, often tapping employees with proven records of accountability, leadership and content expertise for our top positions. However, studies show that once businesses have secured top people in their top spots, investment in leadership training and management skills sometimes wanes or stops altogether.

In Quint Studer’s exceptional book “Hardwiring Excellence”, he writes that the key message employers need to send to their top performers is one of re-recruitment. “I value you. I want to invest in your continued success. “ From there, you build an emotional bank account and nurture a give-take employee-employer relationship that emphasizes performance, loyalty and empowerment.

That’s why the Tripp County Office of Development is excited to partner with Dale Carnegie to host a 1-day course here in Winner. Dale Carnegie is a proven name in motivation, sales and leadership education and has worked with some of Tripp County’s largest businesses to improve sales and customer service models.

Specializing in tools of engagement, Dale Carnegie focuses on “coaching in the moment” to help participants redirect existing behaviors into more successful performances.

If you would like to participate in the class or learn more about Dale Carnegie, feel free to call the Office of Development or check out the DC website at www.nesd.dalecarnegie.com. The 1-day class will be held October 26th at the Holiday Inn Express in Winner. To register, call (605) 842-1551 or email develop@winnersd.org. Cost is $75 per attendee and there are discounts for groups of 5 or more.

The Tripp County Office of Development is committed to helping new businesses locate to our area but, just as importantly, we want to see our local operations thrive and continue to grow. Making an investment in tomorrow’s leaders will help strengthen our community and provide continuing education for our local managers and up and comers.

Monday, July 12, 2010

Choosing the Right Retirement Plan for Your Small Biz

by Karin Mueller Price

Small businesses are not just in competition for customers. It's a fight to attract and keep employees, too.

Offering a retirement plan is one incentive that can make the difference. Yes, it will cost you, but it may be the best investment you can make in the future of your business.

"Cost is even more of a problem with the scheduled increases in taxes and health care about to hit small business in 2011," says Rick Kahler, a certified financial planner with Kahler Financial Group in Rapid City, S.D. "Employers will be under pressure to cut costs, and retirement plans will be on the short list of potential places to save money."

While eliminating a retirement plan or simply not offering one may seem like a smart move, having a plan will help your business save money (in the form of tax deductions for your contribution) and headaches (by retaining valuable workers).

What Type of Plan Should You Offer?

When many people hear "retirement plan," they jump straight to the 401(k). If you have a large company with more than 50 employees, a 401(k) could be the best option. But that's what it is: an option. Small companies and sole proprietors should look beyond 401(k)s because the cost could be prohibitive. Many companies might be better off with a different kind of plan.

Before looking at specific plan types, think about what you want to accomplish. Of course you want to offer retirement savings opportunities for employees and for yourself, too, but there are other considerations:

•How much money do you personally want to save every year? You can give your business a tax deduction and lower your own taxable income with some plans. And with any plan, you'll be taking steps to secure your retirement.

•Do you want the flexibility to contribute different amounts based on annual cash flow? Some plans require the same contributions each year, while others allow you to determine contribution amounts based on your cash flow and the health of the business for the year.

•Do you want to match funds for your employees? "A match is free money for the employee and an immediate return to the employee," says Ronald Garutti, a certified financial planner with Newroads Financial Group in Clinton, N.J. "Today, many companies are reducing or cutting match plans. Any company with an aggressive match should result in happier employees, and it should be a sign of the employer rewarding the employee."

Your answers to those questions will narrow down the kind of plan you should investigate.

Next, learn about the different offerings:

Solo 401(k): If you and your spouse are the only employees, this plan will allow you to save more than others. That's because you make two types of contributions: as the employer and as the employee. As the employee, you can set aside up to $16,500 in 2010. As the employer, you can add a profit-sharing contribution of up to 25 percent of compensation, for a maximum of $49,000. If you're over age 50, you can add an extra $5,500 to the pot for your "catch up" contribution.

SEP-IRA: If you have a few employees, a SEP-IRA could fit the bill. It offers great flexibility in contributions. Employers make the only contributions, with a maximum of 25 percent of salary and up to $49,000 for 2010. But if business is slow, you don't have to make contributions, or you can make smaller ones--as long as you contribute the same amount for each employee.

SIMPLE IRA: These may be appropriate for businesses with 100 or fewer employees. Matching rules are more complicated for the SIMPLE IRA, and the matches are required, but they're flexible. You can choose either to match the contributions of the employees who participate in the plan, or you can contribute a fixed percentage of all eligible employees' pay. "You can cut back SIMPLE-IRA employer match below 3 percent to a minimum of 1 percent, as long as you do it in two or fewer years out of five years," says Kahler. "The employer can also switch from a match to a 2 percent nonelective contribution at any time." Employees can save up $11,500 for 2010 (and there's a "catch up" contribution allowed for those over age 50).

•Profit-Sharing Plans: Employers make contributions--employees don't--and contributions are flexible and don't have to be made every year as long as they are "recurring and substantial." When you do make contributions, your company will have a predetermined formula for how contributions will be calculated, with a maximum of 25 percent of compensation, or $49,000 in 2010.Defined-Benefit Plans: This is a type of pension plan. The employer sets aside funds that will eventually pay for a specific monthly benefit when the employee retires. The amount saved--and eventually received as a pension--is determined by a formula that accounts for an employee's salary history, years of service and age.

Finding the Right Plan Administrator

You may be a do-it-yourselfer in many areas, but setting up a retirement plan for your company should be handled by a pro. Interview several advisors so you can compare advice and costs, and make sure your business isn't being treated in a one-size-fits-all fashion.

"Advice and assistance are critical to instituting the best plan, as every employer is unique and a plan should be tailored to the owner and the employees," Garutti says.

There are lots of potential commissions to be made by managers of retirement plans. Instead of finding someone who works on commission, seek out someone who bills themselves as a fee-only advisor or fee-only third-party administrator.

Kahler says a commissioned broker managing your plan will mean your plan will be limited to only the mutual fund investments offered by that one company.

"Not only will the hidden costs be much higher, but no fund company can offer great managers in every asset class," he says. "An independent team of advisors will work together to select fund managers that are the best in an array of asset classes."
Be sure you offer five or more asset classes (different areas of the stock and bond markets) for your employees to choose from. Go beyond stocks and bonds, and give diverse options such as REITs, commodities and other asset classes.

Ask your advisor about the costs before you make a final decision.

The costs to manage retirement plans vary by plan type and by administrator, so make sure you understand what you're getting into. You'll be responsible for the cost of potential matching contributions, plus fees to establish the plan and to properly notify the IRS of the set-up.

Go in smart. Starting a plan only to give up on it a few years later isn't an option. Your employees--and your own retirement--will be counting on the benefits.
________________________________________

Karin Price Mueller is an award-winning personal finance and consumer writer.
You can read her work at www.KarinPriceMueller.com.

Monday, July 5, 2010

Summer Work Experience Program hosted by SD Dept of Labor

Every month the Tripp County Unified Development Committee meets here at the Jeff Moore meeting room. We have representatives from our city council, Tripp County Commission, the chamber, the school, the SD Dept of Labor (DOL), South Central Development Corp and a member at large. During these meetings, each entity gives a brief report on their office and happenings that effect the social and economic fiber of the county...I refer to it as News I Can Use.

This month, Lynn Coonrod from the DOL shared some information about the Summer Work Experience Program. Basically, the state can provide additional funding if your organization can take on extra workers and provide some real work experience for those in the program. Sounds like a win-win to me.

Read the official press release below or contact Lynn at the DOL. His number is (605) 842-0474 and email is lynn.coonrod@state.sd.us. -TCB

___________________________________________

South Dakota Department of Labor (DOL) and Department of Social Services have received $3 million in federal funding, and we are putting it to use! The Summer Work Experience program is a super way for you to hire eager workers right away.

Designed for people aged 16 through 24,this program allows you to hire employees, and DOL will pay up to $5,000 of their wages. Private sector businesses and non-profit organizations all encouraged to create job training opportunities. Employers should be dedicated to providing adequate training and supervision. This is an excellent way to make a positive difference in the lives of our future workforce.

The work site should offer participants the opportunity to establish a work history, gain references, build good work habits and learn new talents. Employers who can provide a meaningful work experience and teach employment skills will get an employee at virtually no cost.

If you want to hire someone, we want to help. Visit your local DOL office where your workforce experts are ready to assist you. Additional information in available at www.sdjobs.org.

Tripp County Farmers & Charities Eligible for Monsanto Fund Awards

Monsanto Fund is excited to bring the America’s Farmers Grow Communities Project to Tripp County. This program, which Monsanto Company initially rolled out to counties in Iowa, Missouri and Arkansas, was created as a unique new way to support local farm communities. The program has been extended to select counties in California, Kansas, Nebraska, North Carolina, Ohio, South Carolina and South Dakota.

This is a great opportunity for farmers in Tripp County to win the right to direct a $2,500 donation from Monsanto Fund to a local nonprofit organization. All they have to do is complete a short entry form at www.growcommunities.com or call 1-877-267-3332. One winner per county will be selected at random for each eligible county and announced in August 2010.

Farmers, age 21 and over, who are actively engaged in farming a minimum of 250 acres of corn, soybeans and/or cotton, or 40 acres of open field vegetables, or at least 10 acres of tomatoes, peppers and/or cucumbers grown in protected culture, are eligible.

The application period expires on July 31, 2010. The program is open to all qualifying farmers, and no purchase is necessary to enter or win. Monsanto Fund will announce winning farmers and recipient organizations that are important to them and their communities.

Looking to apply? Follow the link to Monsanto's Grow Communities Project.

Thursday, July 1, 2010

Managing Your Cash Flow

Ten Tips to Manage Cash Flow

Cash flow is one of the top concerns business owners are discussing with bankers these days. They need help managing their cash flow, and they're looking for advice.

Cash flow is the movement of funds in and out of your business. You can track this weekly, monthly or quarterly. Positive cash flow is when the cash entering your business from sales and accounts receivable is more than the amount of cash leaving your business through accounts payable, monthly expenses and salaries. Negative cash flow occurs when your outflow of cash is greater than your incoming cash.

Cash flow is one of the most critical components of success for a small business, but many business owners who are launching new enterprises don't realize how important it is. Remember, cash flow is not the same as profit--profit is revenue minus expenses. We often counsel entrepreneurs not to get confused into thinking their profit and loss statement (P&L) will help assess their cash flow.

The SBA has a worksheet you can download that may be helpful in determining your cash flow. You may also wish to seek advice from your banker or financial advisor.

Here are tips to help improve your cash flow:

1. Collect receivables and accelerate receipts. Speed up collection of your merchant services accounts. Aggressively collect receivables and rein in credit and terms. Offer discounts to clients who pay quickly and charge a penalty to those who do not. To speed up receipt and processing of receivables, turn to a financial institution that offers a lockbox service, enabling customers in far locations to mail payments directly to the bank. Also, centralizing your banking at one bank may help speed the process.

2. Increase sales. Attracting new customers takes time and money, and may temporarily weaken your cash flow. Selling more to current customers is an option that may increase your cash flow. When you do so, however, make sure your customers can pay.

3. Tighten credit requirements. If you extend credit to your customers, be sure to assess their credit history. Ask them to fill out a credit application to determine whether they will be able to pay for the goods or services they are purchasing.

4. Consider every expense. Look carefully at each expense and find ways to cut costs that don't add to your bottom line.

5. Trim inventory. Keep levels as low as possible.

6. Delay hiring. Allow positions to remain unfilled if staff members leave, or consider part-time, temporary or consulting services for support.

7. Seek credit. For qualified business owners, securing credit may be a smart way to obtain additional funding and help maintain cash flow. Even if you don't have an immediate need for the money, it may provide a cushion if business slows in the future.

8. Recycle and reuse. Recycle or sell equipment that you only use occasionally. Negotiate to lease or rent equipment and software only when needed.

9. Consider refinancing. Watch for a rate that best suits your situation, and ask your banker to alert you to falling rates.

10. Manage your budget. Create weekly reports to monitor expenses. If your spending exceeds the budget, quickly step in to investigate and take steps to curtail it.

Business owners who learn how to manage cash flow may increase their probability of success. Take time to assess your cash flow and ask for advice from your banker when needed.

By Martha Pineda

Published June 21, 2010 by WomenEntrepreneur.com

Tuesday, June 22, 2010

New Hires: Inspiring Productivity Off the Bat

I thought this article from Fox News had some great, quick tips for introducing your new hire to the workplace and getting them on the fast track to productivity.

So many times I've seen bright, motivated employees become disillusioned and bitter because their management did not take an active interest in their success. Not hand-holding, mind you, just a shove in the right direction. Read on:

Three Steps to Make a New Hire Productive
Reuters

"The traditional approach to "onboarding" - sitting your new hire down with a stack of reading or a series of trainings - doesn't do much to explain how the organization truly functions.

Take these three steps to help your new hire understand how work gets done and what he can do to add immediate value:

1. Start early. Onboarding starts with hiring. During interviews, expose all candidates to the organization's culture. Don't oversell your company; be honest about who you are and how you work.

2. Introduce him to the right people. Identify key stakeholders that your new hire needs to know. Broker early introductions so that he can begin building relationships right away.

3. Get him working. This shouldn't be a sink or swim approach. Put him on projects where he is supported by others and can start contributing right away." - Today's Management Tip was adapted from "Get Immediate Value from Your New Hire" by Amy Gallo.

Monday, June 21, 2010

"What Exactly Does the Development Office Do?"

Since taking this job last October, it’s the most oft-asked question I field. “What exactly IS the development office? What is it that you DO, Tovi?”

I’ve found, by and large, no one is 100% sure of what the Development Office does. Ask five people and you’ll get five different answers. Admittedly, that’s partly our fault. We need to better advertise our services to the business and entrepreneurial community. What good is an Office of Development if we’re not helping people develop anything?

The office is also shrouded in mystery because economic development means different things to different folks. To some, it means community development projects like the new pool. To others, it means recruiting new businesses to town. Still others contend that the office should focus on helping the businesses we have expand and grow. And you know what? There’s not a wrong answer in the bunch.

The day-to-day activities of this office vary. I work with the Governor’s Office of Economic Development on business proposals to companies looking to relocate to South Dakota. We do cold calls and follow up on leads that come from citizens that have ideas for businesses here in Tripp County. We look for ways to promote our excellent business climate. Currently, I’m working on new, comprehensive website with the Chamber that will help us effectively market the area to visitors and provide a wealth of information for residents and small businesses.

In another vein, we’re always looking at new incentives we can offer businesses to relocate. Each operation is different and, obviously, different ideas appeal to different industries. Without rail or natural gas, some of our manufacturing options are limited but we still feel that our high quality, clean, family-friendly community is the major factor working for us. We also provide resources to young families and professionals that want to return to the area.

Since taking this position nine months ago, I’ve learned a lot about the issues surrounding rural economic development. We don’t have an easy road ahead of us. Population trends show that we’re losing more people every year, both to relocation and natural attrition. I can’t stress how important local business retention and expansion is to our community. When a large company looks at relocating to Winner, they first look at the local business economy. Is it thriving? Does the community support their own backyard businesses? Supporting your local business district is a whole ‘nother column but I’d be remiss if I didn’t mention it as a major part of economic development success.

Finally, succession planning. As a community, we need to be looking ahead to find our small business owners of the future. If you’re planning to retire or are looking to sell your business, contact the Development Office. We will work with you to find the right transition situation. All consultations are confidential.

Here are a couple other Frequently Asked Questions that I’d like to see Asked More Frequently.

What is this Revolving Loan Fund you speak of?
A Revolving Loan Fund (RLF) is a source of money from which loans are made for small business development projects. A loan is made to one person or business and, as repayments are made, funds become available for new loans to other businesses. The money revolves from one person or business to another. RLFs provide the initial loans for business start-up and expansion. Often, they are used to fill a "financing gap" in a business development project.

Almost $300,000 is currently available to assist entrepreneurs with start-up costs or current businesses with expansion. Contact the Development Office for more details or to apply.

Can you help me with business planning?
Absolutely! We frequently partner with the South Dakota Small Business Development Center to provide support to entrepreneurs that are putting together their first business plan. We feel that the process of sitting down, working the numbers, looking at the marketshare and resources is a very beneficial process that every entrepreneur needs to complete. Come on into the office and we’ll take a look at your plans and assist you with the research you need to do before crafting the most workable plan.

Our partnership with SBDC and Third District Planning can provide you with market research, financial analysis, cash flow planning and marketing strategy for your start-up or business expansion.

What’s the difference between South Central Development Corporation and the Tripp County Office of Development?
The Tripp County Office of Development is an office charged with assisting Tripp County entrepreneurs with business start-up and expansion assistance and recruiting new businesses to the area. Operational costs are funded by the City of Winner (85%) and Tripp County (15%.) The office hosts monthly Unified Development Committee meetings with representatives from the City, the County, the Department of Labor, South Central Development, the Chamber of Commerce and a member at large.

South Central Development Corporation (SCDC) is a non-profit corporation that has over 140 shareholders that are committed to promoting community and business development in the Tripp County area. SCDC is governed by a volunteer board of 20, comprised of business leaders from the area.

Currently, Tom Kauer of Statewide Ag serves as president of the organization. Randy Vandhoek of Two Brothers, Inc. is our vice president, Dan Patmore of True Value serves as secretary and Treasurer Don Bice of Western Aviation rounds out our executive team. The group meets quarterly and has an annual meeting in February, which is open to all stockholders. SCDC shares are sold individually, are not transferable and are $250 a share. The SCDC board also considers applications for use of the Tripp County Revolving Loan Fund.

Where IS the Development Office?
Currently, we are located in the Statewide Ag Building at 201 Monroe Street. I’m here Monday through Friday and love it when folks stop in for a cup of coffee to visit about ideas they have for development or community growth. I also offer complimentary water, on tap.

In addition to office hours, you can always ring me up at (605) 842-1551, email at develop@winnersd.org or find our info online at winnersd.org. These articles are also available online at developwinnersd.blogspot.com.

My hope is that this column will be used a resource for our business community and will encourage more dialogue in regards to economic development right here in Winner.

TCB

Getting Your Small Business Online

Recently, my family and I were trying to find a location near the Niobrara where we could have a mini-vacation. We have a large group and most of us planned to tent out but we did have a few requirements: the campsite needed to be close to the river, we wanted a cabin onsite and we needed information about tubing rentals and availability/pricing.

Now, Valentine is less than an hour away from Winner but, like you, I'm busy during the week. I figured that using the Internet was the easiest way to plan this vacation...the same way I've planned every vacation from New York to Maui to DisneyWorld. Right?

Oh, I wish it had been that easy. To be fair, there were sites that did have information but most was vague, there were just a few photos of cabins, zero of the contacts returned my email within two days and only two out of the five returned my phone call.

It got me thinking about Winner, our hunting/tourism resources, the task of promoting the area and (channeling Carrie Bradshaw here) I couldn't help but wonder," How can we in Winner make our online experience worth the click?"

Now, the Development Office and the Chamber have been working on a new, comprehensive site for Winner for a couple months now. We're showing our idea to the City of Winner and the City of Colome this month and hoping to get them onboard as well. And...it will be great. The finished product will be a fantastic tool for all BUT IT IS NOT ENOUGH.

To be frank, our site won't be the best version of itself until our small businesses are online as well. We want to link potential customers, potential visitors to your site but, instead, we're giving out phone numbers and addresses. Maybe the customer will call. Maybe they won't. Maybe they'll keep searching for a hotel/printer/flowershop/resturaunt that IS online and can answer their questions now.

Today, having an online presence for your small businesses is more important than ever. Whether you have a portable welding service, retail store or hair salon, your customers WILL seek you out on the web. They'll get their first impression of your business from your site and , whether you sell goods online or not, they'll decide then and there whether your business is worth their dollar by deciding whether your site is worth their time.

There are four basic components you need to be aware of when building your site:

Design
Get a professional web developer to build your site. Knowing HTML or how to use MS Front Page does not a web designer make. You want to create a look and feel that tells a story about your business, product or service. You want a clean, uncluttered page with visually appealing photos and graphics. We developers can help you resize photos so they load more quickly and they can assist you with adding value-added features such as customer contact forms, polls, video and more.

Usability
When folks click on your site, you need to make information easy to find. Again, this is where a web designer can help. You want to maintain a consistent look and feel on each page and steer clear of odd fonts or multicolored backgrounds that make reading your text difficult. If your customers can't use your page to dig for the info they need, they'll leave almost immediately. Categorize your information in easy-to-understand formats and provide links for feedback and contact emails.

Content
This is where you need to really dig deep to determine what content your consumer needs to know. Do they need to see your organizational chart? Probably not. They do want to know a direct phone number and an email address for, let's say, billing. Make doing business with you as easy as possible.

Your content also includes photos and other visuals (see Design.) Hire a photographer to take some high-resolution, quality photography of your product or service and make it the focal point of your sales pitch.

Keep your content brief and informative. If you customer needs to scroll down more than once, there's a very good chance they will decide it's not worth their precious online time.

SEO (Search Engine Optimization)
What good is a website if no one can find you? Your web developer should be able to asist you with make sure your site contains the appropriate keywords to make you easy to find in Google, Yahoo, Bing, etc. Make sure they are abale to provide you with a statistics page, using their own software or Google Analytics. It's important you know what information your customers are looking at, what pages they are entering from, what pages they're leaving from, how many visits a day, etc. Again, if your developer can't help you with this, keep looking for one that can. It's important to realize your ROT (return on investment) with any kind of marketing/advertising campaign.

As it turns out, I DID find a campsite (after what seemed like a bazillion phone calls) but it wasn't the one I really wanted. The campsite I wanted had a pretty informative website that featured good photos, contact info, pricing. But when I called for reservations? "I'm sorry, Ms. Bartels. Our cabins are literally booked until after Labor Day. We have been for awhile." THE PROSECUTION RESTS.

We already have a number of locally-owned, stand-alone businesses that have built great sites. For inspiration, check out:

Frontier Motors: frontiermotors.com
Prairie Portraits By Shelley: prairieportraitsbyshelley.com
KWYR Magic 93/Country 1260: kwyr.com

If you'd like a base of reference on some of the better (in my opinion) web development operations in the area, stop by the office. I'd love to visit with you about developing an online presence for your small business or discuss ways the Tripp County Office of Development can help your business grow.

Contact me at develop@winnersd.org or call (605) 842-1551.

TCB