Utah Business Blog

By Mark Adams, Owner of Fruition Design

I noticed a certain sense of optimism in the air as March came to an end. And for the glass mostly empty kind of guy that I am, that is big deal. Perhaps it was that spring was in the air; not very likely (at least for those of us residing in the Salt Lake Valley). Or was it more likely the recent gains in the stock market (DJIA +300 for the week ending March 27^th)? 

Several year’s ago, I had the opportunity to visit Japan on a business trip. As somebody who does not travel outside of the U.S. very often, I found myself enamored with the Japanese’ view of America, and American business. One thing that struck me was the Japanese’ long-term view on life and business. Perhaps this is rooted in their religious beliefs. Never the less, it was quite obvious that they had a less narrow minded, more systemic approach to their decision making process. A Japanese businessman said to me “you Americans have a very short attention span my friend”. 

I often think back to the Japanese view, and that quote, when I see the pendulum swing so violently as it has recently in the market. Listening to the economic pundits lately, one might think that the worst is now in our rear view mirror. If that opinion is the majority, than I would argue that we have learned nothing. So if we have indeed hit bottom and are rebounding upward, should we go back to business as usual (and employ the business practices of old)? 

Part of my optimism  was caused by the fact that my phone did not stop ringing. It seemed as if the orders were rolling in. To be honest, March seemed to have come in like a lamb, but was going out like a lion. While part of me wants to run out and hire more staff, I need to check my ego at the door. Have I learned nothing in the past year? 

With that said, I am now in a “wait and see” mode. But how long do I wait? What is a blip on the radar, and what is an upward trend? How does a small business owner know when he experiencing an anomaly, or when he is really on to something? I haven’t got much of a clue. All I know is that I will try to think more like a marathoner and less like a sprinter. Domo oregato.  

The views and opinions in this blog post are solely that of Mark Adams and do not necessarily reflect the views and/or opinions of Utah Business.

By Mark Adams

Since mid-December I have been going through the long and arduous task of securing a small business loan. While this is my first attempt at securing business financing, I can only assume that things used to be a whole lot easier.

When I purchased my first home in the late 90’s, I was shocked at how easy it was for a young, single guy who just landed his first big job (literally weeks earlier) get a bank to hand me a check for $100,000. Since then, I have mortgaged three houses and financed half a dozen cars. And as far as I can recall, it took nothing more than a decent credit score and a social security number.

Obviously, the events of the last year have significantly changed the level of scrutiny which a perspective borrower must endure. As a fiscally responsible person, I feel that on some level, we are all paying for other’s wrongdoing. Nevertheless, when you are going to a bank, seeking financing, you are not in the driver’s seat! You will need to be prepared to satisfy any and all of the bank’s requests.

My advice to small business owners who are considering a small business loan, be prepared! Be prepared to provide any and all business and personal financial documentation. This applies not only to the loan applicant, but to anyone associated with the business that owns 20 percent or more of the business. Here is a list of some of the key documents that I did not have easy access to, therefore delaying the loan approval process.

1. Past 3 year’s tax returns for all partners (those individuals owning 20 percent or more of the business).
2. Proof of life insurance greater than or equal to the amount of financing requested, for all partners.
3. Detailed information relating to any assets being used as collateral (depreciated value, proof of ownership, serial numbers, etc.).
4. Proof of lease or option for lease extension equal to the term of the loan.

This is just a short list of things that caused me delays. The complete list of required documentation is extensive. For those who do not have an up to date business plan, balance sheet and financial projection, I would suggest speaking to a bank at least three months prior to needing financing so that you have ample time to prepare.

As stimulus funds become available, and the United States economy stabilizes, there is likely to be a financing frenzy. Put yourself at the front of the pack by being prepared. Don’t let your loan application get denied because you weren’t prepared.

The views and opinions in this blog post are solely that of Mark Adams and do not necessarily reflect the views and/or opinions of Utah Business.

This week’s podcast features founder and manager of Startup Princess, Kelly King Anderson as well as a review of the Utah’s Own roundtable.

By Ethan Willis

In 2007, Disney distributed yet another box-office hit in Pixar’s Ratatouille. In this film, we often hear the mantra of the legendary Chef Gusteau: Anyone can cook. Carrying this to the extreme, his conviction is proven by the most unlikely “person” of all: Remy, who is, in fact, a rat.

While anything is possible in fiction (and computer animation), my experience has shown me over and over that anyone can indeed be an entrepreneur. Regardless of education, ethnic background, current socio-economic situation, and age, anyone can successfully start one’s own business.

With today’s technology, starting a new business is incredibly easy. Anyone with trinkets or even services to sell can readily find a market on eBay, Craigslist, and other on-line forums. Whether the business in question is just something “on the side” or a tech start-up that could one day rival Google and Microsoft, the door is open to everyone.

True, there are some factors that can help ensure success. Thankfully, they aren’t restricted to those who have rich parents, a Harvard MBA, or access to the “good ol’ boy network.” For anyone who wants to start a business and give life to their entrepreneurial dreams, there are three key, interrelated characteristics that can make the difference between success and failure: resourcefulness, a sense of purpose, and focus.

Before discussing each of these, let me explain why I’m qualified to address this topic. I started my own business with a good friend while we were still in college. Our business is called Prosper and we deliver one-to-one personalized education. In short, we give people the knowledge they need to take action—how to eliminate debt, invest in real estate, start a business, and more.

While the curriculum is important, the central aspect of our offering is that each student has his or her own coach—a mentor who helps them make the leap from learning to doing. We have coached more than 40,000 students in our nine-year history. This experience has provided a unique “laboratory” of sorts which has helped us understand what makes a successful entrepreneur.

The first common characteristic is that entrepreneurs are resourceful. A few years ago, Melissa Sweitzer of Honeoye Falls, N.Y., started an internet business selling custom dance shoes. She made her first sale within a day of launching her site, and in 2007, she realized sales of $125,000. The success in itself is laudable, but how she got there is exciting, too. To generate traffic for her site, Melissa secured advertising with prestigious on-line bridal magazines, which linked customers to a specific part of her website.

More importantly, she tenaciously negotiated a contract with the only shoe dealer in the U.S. capable of keeping specific lines of high-end ballroom dance shoes in stock. Through her resourcefulness, she has secured a steady supply of shoes, and now offers seven different brands on her website.

“Knowing first-hand the frustrations professional and semi-professional ballroom dancers have in getting these shoes, I invested a lot of time in negotiating an agreement with this distributor to drop ship shoes for me,” Melissa said. “This distributor has never drop-shipped for anyone before, but by careful negotiations, we worked it out.”

Because of her efforts, she now enjoys a strong, extra income stream. “I have finally found a way in which the investment of my time and energy will pay me back in proportion to that investment,” she said. “My full time job as an engineer working on thermal control of space borne satellites for NASA provides me with technical challenges, but does not come close to providing me with the sense that what I put into my work will pay me back proportionally. This sort of satisfaction and gratification are exactly what I was looking for.”

Second, entrepreneurs have a sense of purpose. Two of our students, Nancy Wasson, Ph.D, and Lee Hefner of Birmingham, Ala., have dedicated themselves to saving marriages. Through their website, this married couple offers consultations, e-zines and a book they co-authored, Keep Your Marriage: What to Do When Your Spouse Says “I don’t love you anymore!”

This is obviously not your average internet business, and the couple could likely make a living doing other things. But, they chose to build a business around something that means a lot to them, and where they knew they could make a difference. When your business is closely tied to a personal conviction, it will be easier to overcome all the roadblocks you are sure to encounter. And of course, if you can do what you love for a living, you’ll never work a day in your life.

“Over the past several years, our newsletter has grown from nothing to more than 20,000 world-wide subscribers today. The great thing about our success is that we know we’re helping couples have better marriages,” Hefner says. “The success we see day after day is allowing us to do what is truly important to us—helping to change the world, one relationship at a time.”

Third, entrepreneurs exhibit a powerful focus on goals. Lisa Herbik of Monroe, N.Y., wanted a change. As she says herself, “Staying the same would only bring me the same results.” She was focused on financial independence and prosperity. Even though she started with very few computer skills, Lisa now has her own internet business, selling wall murals. She has demonstrated that any deficiencies, such as a lack of key skills (what could be more important to an Internet business than computer skills?), can be overcome with a strong focus.

“It took more than a year to make my first sale. Learning to be patient was hard, but I kept busy instead of fretting about my lack of sales,” Lisa said. “I am on page one of Google consistently for my main keyword phrase and I did it all with the SEO tactics I learned.”

Lisa is so intently focused on her own success that she stopped watching TV in 2006. “My time is too valuable for that!” Lisa reports. “I have put more energy and work into my business than I did with my master’s thesis. I am a powerful, competent, happy woman and I have found my spring board for success.”

Just as the fictional Remy was able to cook up something great, countless, real-life people like Melissa, Lee, Nancy, and Lisa have created thriving businesses and established themselves as entrepreneurs. They prove that anyone can start a successful business, large or small, and develop extra sources of income. With resourcefulness, a sense of purpose, and focus, anyone can do it.

Ethan Willis is CEO of Prosper, a Utah-based distance learning company, and coauthor, with Ken Blanchard and Don Hutson, of The One Minute Entrepreneur, which topped the New York Times business bestseller list in 2008.