Steve

A: Recently, I was chatting with my friend Rieva Lesonsky about what a challenge it is to own and run a small business in this economy. The topic was especially salient because , as we are both small business owners as well as writers and speakers on the subject, the Great Recession is effecting us in numerous ways.

You may have heard of Rieva. She is one of the top small business experts out there, but even if you have not, you have no doubt seen her work – for many years she was the editorial director of Entrepreneur Magazine and she wrote the bestselling book Start Your Own Business. When I look at her resume – being on The Today Show, Oprah, etc. – I get jealous. These days she is the CEO of GrowBiz Media, a content and consulting company specializing in covering small businesses and entrepreneurship.

So Rieva is someone who really knows her stuff and that is why I was happy to hear that she is conducting an online chat at Bank of America’s online small business community on the subject Navigating Your Small Business Through the Great Recession. The chat will be on Friday, July 17th at 2:00 p.m. est.

Sensing an opportunity to share her insights with my readers, I asked Rieva what she is telling people these days with regard to staying afloat and even getting ahead.   (So you see, the question above . . . is mine!) She mentioned four things that she thinks can really make a difference right now:

1. Work smart: “Do not waste your time doing things you don’t have to do. Use your time wisely and concentrate your efforts on getting the biggest return on your investment of time,” Rieva counsels. “So, to the extent you can avoid it, avoid getting caught up in minutiae, especially minutiae that does nothing to help you grow your business.”
Rieva echoed the point made by Michael Gerber in his great book, The E- Myth. “Don’t spend your time working in your business,” she said, “work on your business.” As such, she thinks one of the smartest things you can do is to “use your time on things that make you money, and to the extent possible outsource or automate the other stuff.”

For example, she noted that something like doing payroll is probably not the best use of your time in times like these.

2. Remember, cash flow is king: In recessions, it becomes more and more commonplace for customers to pay later and later. “You have to try and avoid having that happen to you,” Rieva said. Yes we have to be cognizant that people are having a difficult time right now making ends meet, but it is equally important to keep “your cash flow flowing.”

So get those past-due invoices paid. Call up the tardy customers, be kind and firm, and keep the money coming in the door.

3. Surround yourself with people who can help: “So many small business owners consider themselves the ‘lone wolf.’ While admirable in many ways, that attitude can be problematic in tough economic times like these when we can all use some help,” notes Rieva.

Her solution? “Join an online community.” There are no shortage of excellent online communities that allow small business owners to meet up, share ideas, get feedback and the like. Finding and joining an online group is a free way to brainstorm, get advice, give advice, and get valuable feedback.  Right now, it does not behoove you to be a lone wolf.

4. Save money and shop for bargains. Keeping your overhead low is always excellent business advice, but is more pertinent now than ever. Says Rieva, “And there are lots of bargains to be had: Look for and use rewards, shop for great rates, use online shopping portals. The important things is to be extra smart about where you spend your money right now.”

Sage advice my friend, sage advice indeed.

Today’s tip: The Franchise Maid Brigade is offering veterans a very unique opportunity: The chance to win their own franchise. The Maid Brigade Veteran Franchise Giveaway is a contest that will give up to 100 qualified vets their own Maid Brigade franchise.

The Giveaway is open to all United States military veterans who are no longer on active or reserve duty. The criteria for entry are:

• Provide a “Certificate of Release or Discharge of Active Duty” (Form DD 214).
• Complete the Maid Brigade Veterans Franchise Questionnaire which includes an essay: “Describe in 100 words or more: What aspects of your military leadership, training, and experience would you apply to your own Maid Brigade operation?”

Good luck!

Bill

A: I met Bill when I was in D.C. last week for the Small Business Administration’s Small Business Week. As I am writing this column on Memorial Day weekend, I thought it would be a good idea to answer his question here because there are a lot of vets in the same boat.

• There are 25 million veterans in the United States. 8 million are from the Vietnam era, and the vast majority of the rest are from the Gulf War to the present. More than 1 million men and women have already served in Iraq or Afghanistan.

• 22 percent (about 5 million) of those veterans are either purchasing, starting, or at looking at starting a new business.

There are many reasons why veterans make great entrepreneurs – they tend to have the leadership skills, planning ability, and stick-to-it-tiveness that go hand-in-hand with small buienss success.

In addittion, they also have the desire, and need, to be their own boss. Consider this sobering statistic: According to USA TODAY, “The 11.2% jobless rate for veterans who served in Iraq and Afghanistan and who are 18 and older rose 4 percentage points in the past year. That’s significantly higher than the corresponding 8.8% rate for non-veterans in the same age group.”

So, between their unique skills set and the tough economy, veteran entrepreneurship is likely to be on the rise.

Here is an example: Army Staff Sergeant Robbie Doughty was only 32 when a roadside bomb in Iraq cost him both his legs. Honorably discharged from the Army, the sergeant and his young family faced a very uncertain future as he endured months of rehabilitation, not knowing what he would or could do in his condition, or how he would care for his young family. And then he received the phone call that changed his life.

On the other end of the line was Michael Ilitch, the owner of the Little Caesars Pizza franchise (as well as the Detroit Tigers and Detroit Red Wings.) Having read about Sergeant Doughty in USA TODAY, and even though he had never met the sergeant, Ilitch simply wanted to thank Doughty for his service and give him some words of encouragement.

Yet after a while, moved by the young man, his grit, determination and story, Ilitch offered Doughty a remarkable opportunity: To open his own Little Caesars Pizza franchise in his hometown of Paducah, Kentucky. Amazed at his turn of good luck, Doughty accepted the generous offer and today is a successful entrepreneur, taxpayer, father and husband.

Unfortunately, most veteran entrepreneurs do not have a Michael Ilitch in their lives. But the good news is that there are plenty of other people and resources out there who want to help the new veteran entrepreneur. Here are some of my favorites:

The National Veteran Owned Business Association: Says NaVOBA, “NaVOBA unites current and future veteran-owned businesses by acting as the national voice for the veteran business movement. NaVOBA works to convince corporate America and the government to consider using veteran-owned businesses as preferred vendors.”

One reason I highly recommend NaVOBA is because I know these folks. I write for their magazine (Vetrepreneur) and know first-hand how committed they are to veteran small business success.

The SBA Office of Veterans Business Development: The SBA, and its website, is a great resource, as always.

The Department of Veterans Affairs: The VA also has a website full of useful resources.

You may also want to check out the National Veterans Entrepreneurship Conference held this September in San Francisco.

Today’s Tip: Before I went to D.C. I was contacted by Ford and was asked if I wanted to test-drive a new car that was “designed for small business.” More than one person I mentioned this to wanted to know just what the heck that could be. Me too! It sounded like a marketing ploy to me.

Boy was I wrong. The folks at Ford showed me a great, sharp looking car that many small business people would be wise to check out – the new Ford Transit Connect. It is a small cargo-type car/van perfect for the small business that hauls stuff or makes deliveries: An antique dealer or a bakery for instance.

This car was indeed designed with a small business in mind:

• It’s small enough to get great mileage, but the inside cargo area is incredibly roomy and well designed.
• Unlike a traditional van or minivan, the Transit Connect’s cargo area offers various customizable options, depending on the business. The one I drove was specifically outfitted for a florist with small racks, bins for flowers, etc.
• The car can seat, two, four, or five passengers, has sliding doors on both sides, and two rear doors that open fully.
• The radio area is a wireless screen with full Windows capability. The wireless keyboard turns it into a moving office.

Did someone say American car companies were in trouble? They won’t be with great cars like this.

Q: Will the proposed new “G.I. Bill of Rights” do anything to help veteran-owned small businesses?

Will

A: I wish that were so, but it’s not. The new G.I. Bill would help returning veterans with education, and it would help small business owners hire better qualified veteran employees, but it is not intended to help veteran small business owners per se.

That said, the good news is that there are nevertheless some very good programs out there for the veteran entrepreneur. (More on that in a moment.)

First, some background:

As World War II wound down, Congress passed the Servicemen’s Readjustment Act of 1944, more commonly known as the G.I. Bill of Rights. That law gave every veteran the financial wherewithal to go to the college of their choice.

That is no small thing.

Fully 90% of enlisted men and women do not have a college degree because most enter the service right after high school. At the same time, almost 400,000 service men and women now leave the armed forces every year. This means that most end up entering the job market without much needed higher education.

And employers, small business and large corporation alike, often like to hire employees with a college degree. But without a G.I. Bill for today, these troops are left to their own devices.

Yes, over the years, Congress has increased the amount offered for veteran education, but it still lags far behind the current cost of a higher education.

That is why Senator Jim Webb of Virginia introduced a new G.I. Bill. His legislation proposes to raise the annual allowance for college to about $22,000 (currently it is less than half of that.) This would be enough to pay tuition, housing, and living expenses at any public university.

Don’t we owe these vets at least that much?

Apparently the President and his military brass do not think so, worried that the bill would hurt retention efforts. Said one Pentagon official last month, “If the benefit is too large, many troops will leave the military after their first term.”

Nevertheless, last Thursday, the Senate overwhelmingly passed an Iraq war spending bill that included the new G.I. Bill. What will happen to the bill is unclear as President Bush has vowed to veto the spending bill.

Amazing.

But as I said, there is good news too. There are some significant efforts out there intended to help the veteran entrepreneur. Here are a few of the best:

Vetrepreneur Magazine / The National Veteran Owned Business Association (NAVOBA.com): NAVOBA and its magazine (which I write for) are a fantastic resource for any veteran wanting o succeed in their own small business.

The Veterans Corporation (Veteranscorp.org): A great organization that helps all vets, including service disabled veterans obtain the tools and resources they need to be successful entrepreneurs. Specifically, they help with access to capital and bonding, and entrepreneurial education.

The SBA Office of Veterans Business Development: This SBA program helps veteran small business owners in a variety of ways – counseling, advocacy, training, and so on. Importantly, the office also runs Veterans Business Outreach Centers (VBOC) which help veterans start, run, and grow their businesses.

Center for Veterans Enterprise (vetbiz.gov): The CVE works to improve the business climate for veterans, minimize barriers, and to inform the public about the benefits of working with veteran-owned small businesses.

The one last thing we can do to help the small business owner and the veteran small business employee is to pass the new G.I. Bill.

Today’s Tip: Over the past year I have been working to put together a comprehensive free program to help veterans start their own small business. It’s not an easy thing to do, especially in this economy, and you would like to help, we would like to hear from you. Shoot me an email to info@mrallbiz.com.

Perhaps you are working for someone else or for a company or corporation, and you have always dreamed of owning your own business but were concerned about qualifying for the financing to get your venture started.

Maybe you just want to check it out and see if it could work for you. Is it a good idea? Is your personality suited towards business ownership? You can find out the answers to these questions and more at http://www.veteranscorp.org/ . This link is for the main site, and you can follow the various links provided below to find areas that apply to your particular situation or need.

The National Veterans Business Development Corporation is made up of directors appointed by the President of the United States and can be found doing business as the The Veterans Corporation. It is a federally-chartered 501(c)(3) organization that was created by the Veterans Entrepreneurship and Small Business Development Act of 1999. The Veterans Corporation Mission is to create and enhance entrepreneurial business opportunities for veterans. The Veterans Corporation also provides veterans with the tools and resources they need to be successful in business, including:

* Access to Capital – you can find funding for your business, including guaranteed portions of loans making you an attractive client too many banks and lending institutions. http://www.sba.gov/services/financialassistance/7alenderprograms/pe/index.html

* Access to Business Services – The Veterans Corporation has many programs and services to help Veterans in all phases of the entrepreneurial process. http://catalog.veteranscorp.org/catalog.html

* Entrepreneurial Education – From classes and seminars to guides and workbooks, there is a host of tools for you to download and utilize. http://www.veteranscorp.org/Public/Education/RegionalEducationSites.aspx

* Surety Bonding – a contractor’s ability to secure some of that work, especially in the public sector, may be limited if he or she is unable to obtain a bid, performance, or payment bond. The Veterans Corporation has partnered with the Surety and Fidelity Association of America (SFAA) to give Veteran business owners exclusive access to surety bonding. http://www.veteranscorp.org/Public/SuretyBonding.aspx

* Insurance and Prescription Coverage – Most small business owners cannot afford insurance or prescription plans for themselves and their employees. The Veterans Corporation has partnered with some of the leading providers to make sure its members have the coverage they need http://www.veteranscorp.org/Public/InsurancePrescriptionCoverage.aspx

* Veterans Business Directory – The Veterans Corporation’s Veterans Business Directory is an interactive directory that lets you showcase your business, search for other Veteran-owned businesses, and support other Veteran entrepreneurs. http://www.veteranscorp.org/BusinessDirectory.aspx

The U.S. Small Business Administration’s Office of Veterans Business Development is dedicated to serving the veteran entrepreneur by providing assistance to veterans seeking to start and develop small businesses. Their site can be found at:

http://www.sba.gov/aboutsba/sbaprograms/ovbd/index.html

There is another excellent website for all federal sites and pages that offer assistance to veterans http://www.vetbiz.gov/
As a veteran, you have served your country and there are a variety of programs to help serve you as you begin your civilian business venture. Even if you have been out of the military for awhile, check to see if you qualify for any of these programs, which can play a big role in your present or potential business venture.