Why create a standard mentoring methodology?

SCORE believes that a standard mentoring methodology, offered nationally and built on evidence-based interventions, can increase the number of successful businesses being started each year and significantly boost business survivability rates, particularly in the first six quarters of their business life cycle.

This project is important because the mentoring SCORE provides meets a vital community need of helping entrepreneurs develop business plans; map strategies to overcome challenges and meet opportunities; and offer troubleshooting advice on a myriad of business issues. Communities today need these services continued and expanded to help build healthy economies.

There are several corporate and individual sponsors participating such as:

The Deluxe Corporation Foundation, SCORE and The SCORE Foundation will be working together to develop a new program, the DELUXE/SCORE Success Advantage business mentoring methodology. The Deluxe Corporation Foundation will underwrite funding for the creation and implementation of this initiative which will support SCORE’s new business model. The standard mentoring methodology can significantly increase business survival rates and help small businesses create new jobs. The program will provide specific training, templates and processes that SCORE mentors can use to help aspiring entrepreneurs start new businesses.

PartnerUp, a Deluxe Corporation Company, is the first and largest online community geared solely toward small business owners and entrepreneurs. They are the leading provider of enterprise solutions software for companies looking to target the small business market. PartnerUp was founded in February 2005 and acquired by Deluxe Corporation in July 2008. PartnerUp is headquartered in Minneapolis.

Jones Day and Andrew Sherman – Thank you to Jones Day and Andrew Sherman for hosting our December 22, 2009, panel meeting. Mr. Sherman is a partner in the Washington, D.C. office of Jones Day with over 2,400 lawyers worldwide. He is the author of 18 books on business growth, capital formation and the leveraging of intellectual property. He has served as a top-rated Adjunct Professor in the Masters of Business Administration (MBA) programs at the University of Maryland for 22 years and at Georgetown University for 14 years where he teaches courses on business growth strategy. He has served as General Counsel to the Young Entrepreneurs’ Organization (YEO) since 1987. In 2003, Fortune magazine named him one of the Top Ten Minds in Entrepreneurship and in February of 2006, Inc. magazine named him one of the all-time champions and supporters of entrepreneurship.

Stay tuned – more to come as the project progresses.

Are you planning to start a new business? Or, are you a small business owner looking for assistance with business planning, marketing and finance? Richmond SCORE is holding a small business workshop on December 11, 2009, just for you.

During the Richmond SCORE Workshop, local business professionals provide workshop participants with valuable information and ideas on better ways to start or grow a business. The presenters include accountants, lawyers, bankers, commercial real estate brokers, and business managers from diverse businesses and industries. Other facilitators are SCORE counselors who have years of industry and business experience.

Workshop Topics

• How to Write an Effective Business Plan
• Step-by-Step Guide to Starting a Business
• Website Design Strategies
• Choosing the Legal Structure That’s Right For You
• Purchasing the Proper Business Insurance
• Sources of Business Loans
• How to Negotiate a Commercial Lease
• Building Successful Marketing & Sales Plans

To sign up for the workshop, visit the Richmond SCORE website for more information. Hurry, seating is limited and advanced registration is required. The workshop is held from 8:00 a.m. to 4:30 p.m. at Capital One Town Center, which is located at West Creek.

About SCORE

The Richmond, Virginia Chapter of SCORE is part of a national nonprofit association dedicated to entrepreneur education and the formation, growth and success of the nation’s small businesses. Richmond SCORE provides free and confidential business counseling tailored to meet the needs of your small business and your personal objectives.

SCORE was founded in 1964. It is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA), and a premier source of free and confidential small business advice for entrepreneurs. SCORE is a 501 (c) (3) nonprofit organization headquartered in Herndon, Virginia and Washington, D.C. With 389 chapters in locations throughout the United States and its territories, and 10,500 volunteers, made up of both working and retired executives and business owners who donate time and expertise as business counselors nationwide.

• National SCORE website
• SCORE’s “Ask an Expert” blog
• SCORE’s Women’s Success blog

Posted by Greg Magnus, owner of AIM Custom Media and one of many local professionals serving Richmond SCORE as a volunteer.

This year, SCORE celebrates 45 years of volunteer service to help small businesses nationwide start, grow and succeed. SCORE reached a new milestone in 2009, helping 8.5 million clients since its inception in 1964. Nationally, SCORE offers free and confidential business mentoring and low-cost workshops to more than 350,000 people each year.

Join us in a VIRTUAL PARTY for SCORE’s 45th Anniversary and if you have not done so yet, honor this great organization by making a 45th Anniversary donation for the 45th ANNIVERSARY VIRTUAL PARTY going on through December 31, 2009. You can make your gift securely online at SCORE Foundation – Online Giving.

We will publish a list of all 45th Anniversary Donors (including those who have already made a gift – on the SCORE Foundation website at the end of the 45th Anniversary VIRTUAL PARTY year in January 2010.
SCORE provides a tremendous value to America’s economy. SCORE helps create more than 25,000 new jobs each year, based on an impact study of SBA Entrepreneurship Education resources. One in seven clients creates a new job. SCORE also helped create 19,732 new small businesses in 2007, according to an SBA report sent to Congress.

SCORE and SCORE Foundation CEO Ken Yancey says, "SCORE helps small business owners start up, stay in business and keep Americans employed. SCORE has a proven track record of both creating and saving jobs by improving small business survival rates and accelerating small business formation." Yancey adds, "SCORE celebrates volunteer service to the small business community. Our 45th anniversary focuses on the valuable contribution that volunteers make to local entrepreneurs with mentoring and advice that meets their business needs."

Thank you for your consideration and support!
Mark J. Dobosz
Executive Director
The SCORE Foundation

If you are interested in becoming a Richmond (VA) SCORE volunteer, visit this website here.

The 7 Most Overrated Businesses

By Kelly K. Spors and Kevin Salwen

With roughly 6.7 million jobs lost since the start of the recession, it’s tempting – and often a great idea – to launch your own business. That way, of course, you can take matters into your own hands… But many people do a lousy job of picking businesses they can realistically turn into a profitable operation.

"There’s this very sad pattern about how people start businesses," says Scott Shane, an entrepreneurship professor at Case Western Reserve University in Cleveland, Ohio. "People are most likely to start businesses in industries where start-ups are most likely to fail."… So, what are most overrated businesses out there? … Here are seven you might want to think twice about – and then maybe twice more.

1. Restaurants. Dining out and cooking are among Americans’ favorite pastimes. But "restaurants are among the toughest businesses to run," says Donna Ettenson, vice president of the Association of Small Business Development Centers in Burke, Virginia…Far too many people assume their culinary abilities will lead to success in the restaurant business. Instead, about 60% of restaurants close in the first three years… (full story here)

2. Direct Sales. It’s a tempting pitch: Work from home and earn commissions by selling cosmetics, kitchen knives or cleaning products. But companies that recruit independent sales reps tend to attract new team members by pointing to the success of their highest earners.

A harder look shows that those high earners are making big money in large part by recruiting new reps into the organization and getting bonuses or a cut of their recruits’ commissions, says Ken Yancey, chief executive of SCORE, a Herndon, Va… The new reps then have a much harder job because they need to recruit more people on top of selling product… (full story here)

3. Online Retail. By far, one of the easiest businesses to start is selling items through online marketplaces such as eBay or Amazon. But as online commerce ages and these sites fill up with more established retailers, it’s much harder for new, small sellers to compete for attention and generate a viable income. (full story here)

4. High-End Retail. Many people dream of opening a day spa, luxury jewelry store or designer clothing boutique – businesses they feel good patronizing. But specialty retail businesses close at higher rates than non-specialty stores, according to the Small Business Administration’s Office of Advocacy, and are even riskier now that consumer discretionary spending has dried up and people are no longer spending money on little luxuries. (full story here)

5. Independent Consulting. Common advice for aspiring entrepreneurs is to stick with industries they know. So, for many looking to escape the corporate treadmill that means turning their professional expertise into a one-person consulting firm.

It seems practical – more companies are indeed relying on independent contractors and freelancers these days – but it’s not as easy to pull off as many imagine, says Dennis Ceru, an entrepreneurship professor at Babson College in Babson Park, Mass. Many consultants struggle with time management problems, spending so much time scouting work that it’s very difficult to earn steady income. (full story here)

6. Franchise Ownership. The idea of being handed a proven business plan without the uncertainties and headaches that come with building a business from scratch is understandably alluring. But too many people don’t understand the risks associated with franchising and sign restrictive franchise agreements without thoroughly researching their franchisor and their contractual obligations, says SCORE’s Yancey.

Some franchisors, for instance, allow franchisees to open stores too close together, over-saturating the market. Or they simply require their franchisees pay so much in royalties and fees or other operational costs that it’s very difficult to be profitable…It’s a myth that franchises are far more successful than independent businesses. A 1995 study by a researcher at Wayne State University found that 62% of franchises were open for business after four years, compared with 68% of independent businesses. (full story here)

7. Traffic-Driven Web Sites. Everybody has witnessed the success of social-networking sites like Facebook and popular blogs that generate all their revenue off advertising. But as the Internet ages, that’s much harder to accomplish, says Martin Zwilling, a start-up consultant … (full story here)

Is your business applying for an ARC Loan? If so, you’ll need a DUNS number. To process applications for SBA’s ARC Loan Program, small businesses need to provide their existing DUNS number or obtain one for their business entity. DUNS numbers are needed to obtain the credit score required for loan processing. How do you get a DUNS number for your business? Read the following instructions provided to us by the Small Business Administration (SBA):

SMALL BUSINESS ADMINISTRATION

Instructions for Small Businesses to Obtain a DUNS Number for an America’s Recovery Capital (ARC) Loan Application

To process applications for SBA’s ARC Loan Program, small businesses need to provide their existing DUNS number or obtain one for their business entity. DUNS numbers are needed to obtain the credit score required for loan processing. DUNS numbers are provided by D&B at no cost.

What is a Data Universal Numbering System (DUNS) Number?

The DUNS number is a unique nine-digit identification number provided by Dun & Bradstreet. The DUNS Number is location-specific. Therefore, each distinct physical location of your business (such as plants, branches, divisions, or headquarters) is assigned a separate DUNS number.

How do I obtain a DUNS Number as part of the application for an SBA ARC Loan?

Your first step is to verify whether you already have a DUNS number, because if you already have one for your location, it’s not necessary to request a new one. Follow these instructions to verify whether you have an existing DUNS number or to obtain a new one over the internet or by telephone. Have the following information handy in case you need to obtain a new DUNS number:

• Legal Name
• Headquarters name and address for your business
• Doing Business As (DBA) or other name by which your business is commonly recognized
• Physical Address, City, State and Zip Code
• Mailing Address (if separate from Headquarters and/or physical address)
• Telephone Number
• Contact Name and Title
• Number of Employees at your physical location

DUNS number via the internet:

1. Copy and paste the following website URL into your internet browser or click the link: https://fedgov.dnb.com/webform
2. Follow the instructions to enter country, business details, and carefully enter the verification code (using upper and lower case letters, plus numbers).
3. If you see your business and location listed:
   • Select Request your Existing D-U-N-S number and fill in your contact information on the next screen.
   • Select Federal Government Grantee or Applicant.
   • Use the check boxes to record your responses, enter the verification code, and Click Submit.
   • You will quickly receive your DUNS number by email from govt@dnb.com with the subject: Requested DUNS number.
4. If your business and location is not listed, click Request a New DUNS number at the bottom of the page and follow the steps.

Requests for a new DUNS number via the internet take about 1 business day. There is no cost to obtain a DUNS number on the internet.

DUNS number via telephone:

1. If your business location is outside the continental United States, Puerto Rico, or U.S. Virgin Islands, and you call the D&B toll free number, you will be directed to the above website URL.
2. If your business location is inside the continental United States, Puerto Rico, or U.S. Virgin Islands, you may call D&B’s toll-free telephone number to verify your DUNS number or obtain a new one over the phone: 866-705-5711

You will first hear a voice recording. Wait until you hear menu options and press the option for your location inside the United States, Puerto Rico, or U.S. Virgin Islands. Then press menu option 5 (callers associated with Federal loans) to speak to a D&B representative. Mention to the D&B representative that you are an applicant for an SBA ARC loan and ask them to verify whether you already have a DUNS number. If you do not have one, the D&B representative will ask you for information to establish one for you on the phone and provide it to you.

Requests for new DUNS number via phone usually take about 5-10 minutes. There is no cost to obtain a DUNS number by telephone. When you receive a DUNS number for your business and location, provide it to your commercial lender, who will append it to your ARC Loan application.

• Dillard’s declined 14 percent
• Nordstrom declined 10 percent
• Saks fared better but still down 4.4 percent
• Macy’s down 8.9 percent and J. C. Penney drops 8.2 percent.

The good news, consumers’ savings rates continue to increase and deep discounting is rampant; it is a great time to pick up new clothes for sure. What does this mean for your business? It highlights the importance of your business planning process as well as the adjustments required to address evolving economic conditions. Also, the need to leverage technology to market your business has never been more important. Look for synergism with partners and business associates.

The opportunities to promote new and existing businesses are profound but few truly understand the tactics and strategies. Take a class, attend a seminar and/or online webinar and focus your energies on an aggressive marketing plan that includes “the right” technology and tactics. Invest in social networking and develop a plan as well as a schedule. Otherwise, you’re just wasting a lot of your productive time. Hire a professional and ask them to review your plan if you can’t afford to have them develop one for you. You’ll be surprised at what you can learn from a third party business plan and marketing evaluation.

In other Virginia news:

Virginia has been recognized among the “Five Best States to Start a Business.” Governor Kaine highlights national ranking by U.S. News & World Report for Virginia’s “favorable and innovative climate” for entrepreneurs in the following press release:

RICHMOND – Governor Timothy M. Kaine today highlighted Virginia’s ranking among the “Five Best States to Start a Business.” The recognition by U.S. News & World Report this week comes on the heels of the Commonwealth’s sixth number one ranking for its pro-business environment.

“The latest accolades accorded the Commonwealth demonstrate that Virginia remains a power player among business-friendly states,” said Governor Kaine. “As we work to get our economy back on track, it’s great to be recognized for continuing to attract innovative businesses to Virginia.”

“Virginia makes a great effort to assist in the establishment of small businesses with programs that streamline the startup process and connect entrepreneurs with resources,” said Virginia Secretary of Commerce and Trade, Patrick Gottschalk. “Our business one stop electronic business formation system is continually growing in popularity with Virginia’s entrepreneurs.”

From U.S. News & World Report: “Virginia- This state is not just “purple” in its voting patterns. Like blue states such as Massachusetts, It mixes the highly educated workforce and technological sophistication. And like red states such as Texas, Virginia is known for its low taxes. This state boasts the highest number of information technology jobs in non-IT industries as a total share of jobs, which indicates that Virginia’s businesses are more technologically advanced than businesses in other states.”

Virginia has been recognized as the most business-friendly state six times under the leadership of Governor Kaine. Last month, Pollina Corporate Real Estate Inc., a top U.S. corporate site relocation expert, ranked Virginia first in its annual study of pro-business states, marking the third time for the third time overall. During Governor Kaine’s administration, Virginia has also been recognized as the most business-friendly state in America (Forbes.com 2006-2008), one of the best states for business (CNBC 2007 and 2008), the top-performing state government in America (Governing Magazine 2008) and the state where “a child is most likely to have a successful life (Education Week 2007).”

To compile their report, U.S. News & World Report examined two leading studies that measure a state’s ability to promote entrepreneurship: the 2008 New State Economy Index from the Kauffman Foundation and the Information Technology and Innovation Foundation, and 2008′s Small Business Survival Index from the Small Business and Entrepreneurship Council.

Helping Virginia Small Businesses Survive the Economic Downturn

This workshop will provide information to Virginia small businesses about:

• Less expensive and more accessible small business loans.
• Recent changes to tax rules affecting small businesses.
• Counseling and Training resources through SBA resource partners
• Recession-proofing your credit

When: April 29, 2009
Time: 10:00 a.m. to Noon
4201 Dominion Boulevard
Richmond, VA

To Register, call Ford Scott at (804) 771-2400, Ext. 153 or email: ford.scott@sba.gov

The U.S. Small Business Administration and its nationwide network of partners help millions of potential and current small business owners start, grow and succeed. Resources and programs targeting small businesses provide an advantage necessary to help small businesses effectively compete in the marketplace and strengthen the overall U.S. economy. SBA offers help in the following areas:

• Starting a Business
• Financing a Business
• Growing a Business
• Opportunities in Contracting
• Recovering From Disaster
• A Voice for Small Business in Government

Additional information as well as business news and training for entrepreneurs is available online at www.sba.gov or visit the Richmond, VA District office at:
400 N. 8th Street, Suite 1150, Richmond, VA 23219,
Phone: (804) 771-2400, Website: www.sba.gov/localresources/district/va 

Also, SCORE offers free advice to small business owners and entrepreneurs.
For marketing articles posted by Greg Magnus, visit SCORE’s Ask an Expert Blog or the national SCORE website

Comments and questions from blog visitors are welcome. The blog Web site address is http://askanexpert.score.org. The first blog entries highlight free business resources, start-up financing tips, and details about the SBA’s Community Express loan program.

Meet SCORE’s bloggers:

• Steve Bloom, Atlanta SCORE, www.scoreatlanta.org.Steve Bloom started several business ventures in mortgage banking, real estate development and management, importing, sign manufacturing, and business consulting. He has invested in several start-ups and helped in turning around a factoring company and distressed real estate properties. He is the past chapter chair for Atlanta SCORE, which won SCORE National Chapter of the Year honors in 2008.
• Jerry Chautin, Manasota SCORE in Sarasota, Fla., www.score-suncoast.org. Jerry Chautin’s entrepreneurial career was in commercial mortgage banking, business lending and commercial real estate. He founded a mortgage and business-lending firm and a seminar company that produced educational programs related to real estate and business financing. Since 1993, he has been advising SCORE client on perfecting their business plans and obtaining financing. In 2006, he was named the SBA’s Small Business Journalist of the Year.
• Bill Haman, Greater Cincinnati SCORE, www.scorechapter34.org. Bill Haman grew his company, Advance Finishing, from $500,000 to nearly $5 million in revenue. During his tenure, the company designed, planned and coordinated the relocation of the business to a facility five times larger while maintaining all orders on schedule and retaining all employees. He also was an executive at Avon for 10 years and honored as the #1 Division Sales Manager in the nation. Bill is a past chapter chair for Greater Cincinnati SCORE.
• Greg Magnus, Richmond SCORE, www.richmondscore.org. Greg Magnus is a seasoned publisher and online marketing expert with more than 20 years of consulting and entrepreneurial experience. He serves as president of AIM Custom Media where he develops online marketing campaigns. As a mentor at Richmond SCORE, Greg helps clients understand online marketing and provides advice on Web site development, blogging, social networking and Web 2.0.
• Alvin Roselin, New York City SCORE, www.scorenyc.org. Alvin Roselin founded and sold Planned Communications Services, Inc., a New York City marketing communications company specializing in all forms of media. The company produces and distributes message films, including public service announcements, video news releases, infomercials, corporate sales films and syndicated TV programs. Alvin is the past chapter chair and current district director of New York City SCORE.

Since 1964, SCORE “Counselors to America’s Small Business” has helped more than 8 million aspiring entrepreneurs and small business owners through counseling and business workshops. More than 11,200 volunteer business counselors in 370 chapters serve their communities through entrepreneur education dedicated to the formation, growth and success of small businesses.

For more information about starting or operating a small business, call 1-800/634-0245 for the SCORE chapter nearest you. Visit SCORE on the Web at www.score.org and www.score.org/women.

SCORE contact: Michael L. Keaton, Director of Communications, 202/205-7637; media@score.org.

AIM Custom Media contact: Greg Magnus, Custom Publisher, 804/915-7379.