Carving Up the Company

Debt financing is nearly always tough for small businesses to obtain, and particularly so right now.

What's a struggling small business owner to do if she can't get a loan to finance a great new opportunity, or just make payroll?

Options like equity investors look all the more attractive right now.

But what does it take to attract private investment of outside capital, and what do investors expect in return?

I answer those questions - and more - in my Smart Answers column today. Check it out!

I've Got An Idea

There’s a world of blood, sweat and tears that separates a great b­­usiness idea from a great business. That’s why - with few exceptions - people don’t buy ideas. After all, ideas are a dime a dozen, right?

So, what can you do with your great idea? If you’re like most people, you’ll forget about it until the day you see that someone else has turned it into a reality. If you’re not like most people, you’ll become obsessed with the idea to the point where you know you have to find a way to add value to the idea, whether that means patenting it, licensing it or starting a company to market it.

If you’re in the latter category, put together a plan to go with your idea. It doesn’t have to be a full business plan. Start with a proof of concept that explains what your idea is, how it will generate revenue, what kinds of operating expenses you’ll incur producing it or pursuing it and what your competition will be. What unmet need will your product or service fulfill? Why will customers buy it instead of buying your competitors’ products?

If you feel that your idea is a can't miss, pursue intellectual property protection for it and share it with a few trusted colleagues – preferably people already in business for themselves. Ask them to sign “non-disclosure” agreements before you lay out the idea.

Don’t get sucked in by phony inventor or patenting schemes that fleece naïve would-be entrepreneurs for thousands every year by flattery and flat-out fraud.

If you really have an innovative, promising business idea, and you’re driven to pursue it, you’ll be able to prove the concept, protect the idea legally and either license it to an existing business or round up the funding that will allow you to take the idea to market yourself, perhaps with a more knowledgeable business partner.

More information on protecting and commercializing your business ideas can be found at the National Inventor Fraud Center.

Failing to Deal

When his father's small business closed its doors after many years, Dean Shepherd was devastated.

But that was nothing compared to how his father felt, Shepherd says in this week's Smart Answers podcast.

With so many small businesses shutting down these days, it's important to find coping skills for failure, Shepherd says.

Many entrepreneurs must have learned that lesson. I remember several years ago coming across a study that showed that the most successful entrepreneurs have failed early on in their careers and come back to try again, getting it right the second - or third - time.

Coordinate or Pay Up

I've never taken out a business loan (start up costs for a self-employed writer not being terrifically huge), but I have had mortgages and refinanced them a couple of times.

I remember a mad scramble on at least one occasion to ensure that a loan payoff went through on the same day that our new home loan was scheduled to open.

We all sat in the mortgage office on tenterhooks as our broker called around and we waited for faxed confirmations to come over the phone lines.

Not having someone ride herd on loan coordination - and it seemed like some luck was also involved - can land you in the situation covered this week in my Smart Answers column.

Get Ready, Get Set

I hate to come back from a long weekend with bad news, but I'm afraid it's out there.

Remember that swine flu epidemic that we were hearing so much about a few months ago?

Well, the media spotlight has moved on to other things - like the national hourly Michael Jackson update (don't get me started).

But the new strain of flu has quietly become a global health concern that is building strength in the southern hemisphere's chill and is likely to return to North America by fall.

Now's the time to get prepared, public health officials say.

Southern Californians should always have emergency supplies on hand as part of our earthquake preparedness. It's a good bet that a well-stocked earthquake kit will have a lot of the supplies needed for a flu pandemic also, but I know it's time to update my own.

I don't have nearly enough food stockpiled to last two weeks, however, which is what is recommended in case of a severe flu outbreak. If you have college students, as I do, they should have food on hand also.

Here's a good general pandemic readiness site and comprehensive list of links and resources.

Now's the time to lay the groundwork - just in case this bug turns even nastier later in the year.

Back to Work

Right now, the job market is as tight as it's been for a long, long time. It must be terribly discouraging for this spring's college grads.

Even my older son, who just finished his first year at college, has been unable to find a summer job. The best he's been able to do is work a few weekends for a local restaurant owner who takes a booth to special events. He worked eight hours yesterday at an American Idol tryout and was grateful to be squeezing lemons and making fries!

He also signed up with a temp agency, but so far has not gotten any assignments.

A friend's college son filled out an application for a graveyard shift job as a retail store shelf-stocker. He was hopeful, until he was told that 27 others had already applied!

Here's a website that is "helping put Americans back to work" with a series of national job fairs.

Check out one if you're on the market.

Garden Bounty

I hoped to start harvesting veggies from the garden this week, and we have!

Here's a sample of the goodness - and it's barely summer:



We will be well-fed this summer, no doubt about it.

I took the White Beauty eggplant and Cue Ball zucchini above, cut them in half, hollowed them out and stuffed them with sauteed vegetables and bread crumbs, topped with parmesan cheese. You can add some crumbled, cooked sausage or ground meat, but they make a nice vegetarian side dish also.

Have a great holiday weekend, everyone! I'm taking a couple days off. :-)