Small Business Connections                                                            May 2012 

 "I had always enjoyed performing weddings, but to make it into a full time job, I knew it would require some expert help. That was when I went to my bank and asked their advice and without hesitation they sent me to see Harriet Parker."

Barry worked on his business plan with the SBDC, updated his web site, added workshops and premarital counseling for couples, and expanded his team of wedding officiants. Barry's business grew quickly as he focused on marketing and developing strategic partnerships. "For years, I would average 35 weddings per year, then the last year it grew to the 70's, but after working with the SBDC I ended the year having performed 93 weddings. By April 1st, I already have 94 weddings on the books and have added three assistants who have performed an additional 16 ceremonies."

Chicago Weddings is the sole referral partner for David's Bridal of Aurora. They are also  on the referral list for a long list of wedding locations in the Chicagoland area, including the new Marriott Hotel in Naperville that named Chicago Weddings the preferred officiant to their clients.

As his business grew, Barry took advantage of the program offered by the SBDC through the Small Business Jobs Act to help him get a handle on his business operations by implementing QuickBooks.

In addition to growing Chicago Weddings, Barry also leveraged his background as a certified life coach to start The Compass Group, which offers professional and personal coaching, seminars and peer mentor groups to area businesses.

"As I focus on small businesses, every company I work with gets the packet from the SBDC as part of my standard orientation of resources. It is amazing that assistance of this magnitude is available at no cost."

You can contact Barry for more information at info@chicagoweddings.org or by calling (630) 392-1953. 

Ego and the Entrepreneur     

Is ego an asset or a liability for entrepreneurs? The answer is... Yes. Here's a look at both sides of the balance sheet:

Asset

• Control - Ego is a key member of the launch team. Let's face it - without a little ego (or maybe a lot) - the entrepreneur would be in trouble. While many may start a business, it takes ego to grow one. Someone needs to believe in the business, take charge and drive the idea forward.

• Confidence - Ego is a key ingredient behind the courage needed to take risks, make mistakes, and keep going. It helps you make that cold call, push that big idea, and defy naysayers. It's the adrenaline rush that gets the deals done that others say are impossible. It's what keeps you from quitting when the going gets tough.

Liability

• Control - As your business grows, building an effective high-functioning team is critical. For starters, make sure you aren't hiring "yes men". Choose team members who are experts and will help drive your company forward and challenge you as an owner to be your best. Owners who can't delegate, can't accept the work and work styles of others, or who feel threatened by their team, will quickly reach their capacity, morale will erode, and the business will start to die.

• Confidence - A little initial success sometimes kicks an entrepreneur's ego into overdrive. And that's when the problems start. We say that entrepreneurs think they can "boil the ocean." In their excitement, they try to tackle more and more. Or, they can't be bothered with the next mundane milestone, but are constantly jumping to the end result without ever making progress to get there.

Bottom Line

If you are familiar with a balance sheet, the difference between assets and liabilities is your net worth. If you are stronger on the asset side, your net worth is positive. If your liabilities are higher, then your net worth is lower. What starts out as a positive entrepreneurial trait sometimes ends up sinking the ship.   As your business grows, keep an eye on your ego as you grow your net worth.

Biz Bitz

The Time Is Now To Refinance With Wessex' 504 Program

The innovative 504 program has long been a fantastic choice for business owners looking to purchase a building or capital equipment. With the 504, businesses are only required to put 10% down on the project, compared to 20% or more that would be required with a conventional mortgage, allowing the business to preserve valuable working capital. In addition, the business receives a low, 20-year fixed interest rate (10-year fixed for equipment) on a portion of the debt. With rates near historic lows, it's hard to find a better deal.  

Now, for the first time in the program's more than 20-year history, the 504 can be used for refinance. With the powerful program, businesses can refinance their existing commercial mortgage up to 90% of the appraised value, and lock in a low, 20-year fixed rate for a portion of the debt. Also, with the most recent changes to the program, any equity the business has in the property (over 10%) can be used for itemized business expenses (working capital) such as paying down payables, existing lines of credit, inventory, or other obligations of the business. For more information visit www.wessex504.com.

To qualify for the 504-refinance program, the business must meet the following three criteria:

1) The business must occupy at least 51% of the square footage of the building.

2) The existing mortgage must be at least two years old.

3) The business must be current on all mortgage payments for at least the past year.

By refinancing a commercial mortgage with a 504 loan, business owners can re-amortize the commercial property term, take advantage of historically low interest rates, as well as the option to get equity out for business operations.

The refinancing option under the SBA 504 loan program is currently set to expire on September 27, 2012. The program may be extended, BUT, to be safe, refinancing applications need to be processed in the next few months to beat the SBA deadline. For additional information, contact Joe Wright at jwright@wessex504.com  or (773) 459-4034.

The International Trade Center at College of DuPage is offering a series of free webinars for businesses considering or doing business internationally.  From Basics of Exporting, to International Logistics, you will find a wealth of information to help you do business globally.  For more information on these free webinars, Click Here.  

Illinois SBDC at Waubonsee Community College