Thursday, July 14, 2011

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Final of Four “fys” – SOLIDIFY


The Process of Four “fys” is not complicated to move through, but it does take a commitment to follow through the method.  The process needs persistence, partnerships and most of all passion to fuel the commitment to take an idea forward.  To succeed at this point in the concept process of starting or expanding a business look back at the three previous “fys”.  A potentially prosperous entrepreneur has IDENTIFIED that their idea is viable and theoretically needed in the market place, has QUALIFIED themselves as the person that wants to take the responsibility and risk to take it from mind to marketplace and they have JUSTIFIED their product idea as a profitable idea by formulating a proper business plan.  Now the entrepreneur needs to SOLIDIFY the idea to move forward.

The final “fy”, SOLIDIFY, is the end of the means.  In this step you are pursuing that one key resource that every business needs, no matter what stage they are in, CASH!  The saying from a movie, “money makes the world go ‘round,” is unfortunately true when it comes to starting a business, and maintaining one too.  Unless you are using personal wealth for the investment, a bank or other stakeholder, they will all want to see by this point that the idea has been thought through, a market has been identified and a most of all plan has been thoughtfully and genuinely put together. 

Once the investment has been made personally or externally, an entrepreneur is on their way to actual start-up.  That is a whole different process in itself.  This is a process that takes more risk, but can very rewarding to complete.  The BCEDC is a local resource in Buchanan County that maintains great relationships with individuals and institutions that exist to help people move business forward, resulting in a growing economy.  If you have questions about how BCEDC can help your business or your concepts please contact us, I will be glad to visit with you.

Nate Clayberg – Director (nate.clayberg@growbuchanan.com)

Tuesday, July 12, 2011

Manufacturers: "We have people, but where are the workers?"

On Thursday, June 16, 2011 the BCEDC, along with Hawkeye Community College, hosted the Buchanan County Area Manufacturers Forum at Bill’s Pizza in Independence.  I want to personally thank the people from Hawkeye Community College, Geater Manufacturing, Wapsie Creamery, IEP, L&M Radiator and Denton Castings for attending the first of what hopes to be an ongoing session with our local manufacturing community.
At the forum representatives of Hawkeye were able to provide information on job training programs available through their organization, while also taking feedback from those in attendance on how Hawkeye can help with one of their biggest challenges.  That challenge is finding “workers”.

With the local unemployment rate at 6.3% (Iowa: 6%, US: 9.1%) it’s hard to think that our manufacturers are having trouble finding people to work since they ARE hiring.  They are getting people to apply, but they can’t get “workers” for the jobs they need to fill.  We are not talking about highly skilled nor highly paid jobs, many start at $10 to $11 per hour (about $21,500 per year) plus benefits. We are talking about labor positions that don’t necessarily need training beyond a high school degree.

“Workers” are those people that are willing to work in a job that will give them a decent wage for a decent days work. However, the reality is that many of the people that apply these jobs would rather not “work”.  Some of the issues these companies face after hiring is the passing of an initial drug test, employees not showing up for scheduled shifts, workers that show model employment until they qualify for unemployment benefits and the demand from employees to decide work schedules and wage rates.  This is frustrating for our employers in all industries, and is honestly very concerning when thinking that we are relying on this type of workforce to help bring the US economy to prosperity.  There are some diamonds in the rough that will put the time in to earn a day’s wage, but as a human resource officer said last week, they will hire and fire eight to ten people for the same position before they find that one person that turns out to be a quality worker.  That is hard to believe, but it’s true.

What is the solution?  That is probably worth $1 billion.  The solution is the same as the cause.  The mindset of today’s current workforce is mostly developed from these influences: family, friends, community, government, education and the media.  But positive or negative influence can only take place if a person’s attitude accepts it.  Recently a local employer told me that when he hires he looks more at responsibility than accountability. To explain, If you are responsible it helps the person make better decisions on the job.  Accountability is good, but it is usually set externally and is not a genuine gauge of true personality.

Obviously workforce is an issue in many areas of the country, but now is the chance to be different in our area.  The BCEDC cannot, and will not, be the entity that can solve this problem for our employers.  But the Buchanan County Economic Development Commission can work with key organizations to begin to identify ways of improving a challenge that businesses have been dealing with in our existing economy.

Third of Four “fys” – JUSTIFY

In this series we have IDENTIFIED and QUALIFIED you and your business idea.  Now let’s JUSTIFY it as we roll through The Process of the Four “fys”. The justification process is about planning and money.  As any business person will tell you, money gets you started, keeps you going and justifies why you are involved in your own business (AKA making money in business). But before you can even think about approaching a bank, investor or breaking into your savings, you need to develop a business plan to serve as a good tool in figuring out what you want your business become in the short and long term future.  Before any respectable lender or investor thinks about writing a check to support an idea, they will want to see the research to show them that this really is a good idea and most notably a profitable one too.

Entrepreneurs come from all backgrounds, but most of them come from jobs that paid them a salary or set wage.  When you own a business, you get paid only if you have a profitable product.  This is a hard reality that many potential new business owners have to face when moving an idea from their mind to the marketplace.  It is a risk that needs to be thought through carefully, and that is another reason a solid business plan is so important. New and experienced entrepreneur need to justify a start-up or expansion idea as it relates to personal income. Can they pay their current bills and sustain a profitable business if they take the risk of moving forward with the idea?

Starting a business or growing one, can be very exciting, and it can be very frustrating. Not everyone is cut out to run their own business.  But not everyone is cut out to work for someone else.  The BCEDC is a local resource for information or entrepreneurs to take advantage of.  We are here to network you with expert information for business plan development, financing and investment and general business counseling.  Economic Development is about building wealth for our communities, businesses and its residents.  Please let me know how I can help your idea. Next post, the final fy: SOLIDIFY

Second of Four “fys” - Qualify


Last time I touched on identifying a business idea, this week in The Process of the Four “fys” we will QUALIFY that idea.  A good product idea does not guarantee that it will be successful.  To take a product or service to the marketplace you will need the ability to become an expert in that product, thus making you Qualified to plan, develop, market and nurture that idea through its life span.  Many times the entrepreneur who creates the vision for the idea has a hard time being the sole person with the responsibility of cultivating the idea to success.  Having the ability to realize that you need help is a great quality for a business owner that wants to succeed.  Not one person can be an expert in everything, but everyone can be an expert in at least one particular area.  Once you can identify that trait, you will qualify as an entrepreneur on your way to success.
There are great resources out there to help businesses.  These resources cannot be found in books or online.  These are human resources, people that have gained expertise in areas that you may need help in.  The BCEDC is here as a resource for entrepreneurs, if you have questions in moving your idea or business forward we can assist.  The process of developing a business idea can be very daunting, yet it can be rewarding.  It does take some aggression to succeed in any business, but there is also a sense of humility that can come into play as well.  Next week: JUSTIFY

First of Four “fys” - Identify


The Process of the Four “fys” is important if you are looking to start a business, or expand one.  This progression needs to take place in order to be successful in your plan.  Most business ventures start out as an idea for a service or product.  But to reach the goal of profitability you need to IDENTIFY if there is a need for your idea.  Passion is required to run a small business since it will take a lot of personal resource to make it go, and sometimes that passion can blur your vision for the success of your product.  In order to identify whether your product is needed takes product research.  Research can be simple or complex, but it is necessary in order to get a more objective opinion on the available market for your product.
You cannot rely on your personal feelings alone to believe that there is a need for the idea you want to bring to the marketplace. 
The BCEDC exists in your community to serve as a resource in helping people with their business ideas.  Whether you are a local manufacturer looking to expand or an entrepreneur with a great product idea, we can help you down the road to success.  However, success is a relative term in the development of a business.  Success can be identified obviously as a profitable venture, or it can be seen as successfully realizing that your plan has issues, needs revision or the idea should be abandoned.  If you have a business development idea or plan please use the BCEDC as a resource in helping to make your idea’s real. Next post: Qualify.

Small Businesses Need to Exist


Our government leaders have identified that in this post-recession economy that innovations in small business will be key to improving the wealth of our communities.  Generally when people think of small business you may think of restaurants, retail shops and lawn mowing businesses.  The small businesses that are typically not identified are those in the commercial and industrial sector like manufacturing and software development.  Together, especially in our rural area, small businesses need to exist for our communities to be able to flourish. Over the next few weeks I will identify The Process of the Four “fys” that not only a new entrepreneur should follow when looking at starting a business, but these are also factors existing business owners should look at when examining the success of their current operation for the future. Next week: Identify.