Q: Overall, how favorable is the current climate for small business start-ups?

A: It's always a good time when you can fill an unmet customer need or do something better than competitors. It's easy to assume that you should only wait until the economy is good. True, there may be more customers, but you'll also face more competition. 

Q: What are 2-3 critical business planning factors that aspiring entrepreneurs frequently overlook?

A: A business plan is a marketing document, not a thesis. You want to sell your business and your abilities to investors to show how you'll make them money or pay back debt.

Financial projections need to be accurate and realistic. Many entrepreneurs are way too aggressive on how fast they'll grow, and under-aggressive on costs. As a result, they run out of money.

Think through risk-reducing milestones. Break down the path of your company's growth so you'll understand what you need to accomplish over a certain time period. 

Q: What alternative financing methods are best suited to a start-up? Does their evaluation criteria differ from banks?

A: There are so many, but I'm a big fan of individual "angel" investors. Like a bank, they want to a return on investment, but with their own money. Often, their decisions are ego-driven; they think it's cool to be part of an new business. They may also invest because they like the entrepreneur and want to see him or her succeed.

Another interesting method is vendor financing. An example of this is Kenneth Cole's shoe business. He found a struggling Italian shoe maker that was willing to supply him products on consignment. He didn't have to pay unless and until the shoes were sold.

Q: You're a big proponent of mentoring. What makes SCORE uniquely positioned to assist any type of small business at any stage of its development?

A: Being able to talk with someone who's been there and done that is invaluable. The hardest thing is finding that kind of person. SCORE's done that for you. They've already found these great mentors who are willing, ready, and able to advise you on what to do - and what not to do - based on their knowledge and experience.