Opportunities

One of the greatest books I read regarding business, particularly small business, took me about 2 years to read. One of our sales people attended a local seminar produced by a local networking group, staring Tom Gegax, the founder and former CEO of Tires Plus. At the seminar copies of his book “The Big Book of Small Business” were distributed for attendees. A copy appeared on my desk a few days later. I didn’t pick it up for almost a year. But, I’m glad I did.

There are a lot of gems inside its pages. It is essentially a small business manual. It is not structured in the way any other business book I have ever read is. It has so much information, advice, and guidance within its pages for situations like hiring and firing, management, finance, even real estate and business location. It is truly invaluable.

But, one of the biggest things I took away, one of the biggest things I have taken away from the experience of owning my own business is the idea of opportunity. Prior to running my own business I had all of these crazy ideas. Notice I wrote “crazy” they were just up there in my head, keeping me up sometimes while laying in bed or making social situations awkward as they crowded my mind during casusal conversations. Ideas from employees to new business ventures… everything and anything.

One of the things “The Big Book of Small Business” discuss is where to find employees. While out and about you meet people everywhere, on the street, in a McDonald’s that are all potential hires. They have the abilities and magic that might fit you or your business. Regard everything, every situation as an opportunity to find employees. But, this can be extended.

There are so many ways to get business, to create strategic partnerships or relationships, or create something entirely new, every moment of every day. You just have to be creative, understand that the opportunity is there, and go for it. I am not suggesting switching directions every day, or switching directions based on the response of these opportunity solicitations, but I am suggesting that, within your own business plan or model, there are tons of opportunities. Conventionally, fear holds people back from asking a colleague to listen to an idea, or to ask for a meeting with a local competitor about how to work together, but if you’re creative enough, and the idea is truly worth while, you will be heard, and you will probably be surprised at how this is able to grow your business.

I can’t go into too much detail, because these opportunities will arise in different forms for everyone. But, I can give you an example. I receive the local enewsletter called “Gulfshore Business Daily” it’s always chocked full of local business news - mostly PR snippets. But, occasionally there are things that I view as an opportunity. One such opportunity came through this email when a local marketer, I read, had just won a number of awards for some radio ads they had produced for a client. I contacted the company to congratulate them and from there one thing has led to another and we are now working very closely together to provide services for their clients and vice-versa. One tiny opportunity, one tiny email, now a tremendous business relationship.

So keep your eyes open.

Kona Grill Closing, Naples FL

Just read some terrible news. Kona Grill in Naples (at the Coastland Mall) has closed its doors. According to the article I found about the Kona closing on Naples Daily News:

NAPLES — Kona Grill, an American grill and sushi bar, announced that it has closed its restaurant in Naples, a press release on the company’s Web site reports.

The company is expected to take an impairment charge during the third quarter of 2008, although the specific amount has yet to be determined.

“Although we are disappointed to have closed our Naples restaurant, we believe it was the prudent choice for our business as we seek to navigate through some very challenging times in our industry,” said Marcus E. Jundt, Chief Executive Officer of Kona Grill.

This seems to be another eery underscore of both the local and national dwindling economies. Locally, the real estate market has been rocked by falling values and too much inventory, particularly in Lee County. Nationally, big business and banks are being threatened every day.

It seems just yesterday Kona was opening its doors. In fact, the restaurant wasn’t even open for 2 years:

Kona Grill, an American cuisine and sushi bar coming to Coastland Center mall in Naples, will be able to serve liquor, despite a city ordinance barring restaurants from selling wine or beer within 500 feet of each other.

But the late hours that are the upscale restaurant’s trademark were shot down Wednesday by the Naples City Council in the name of fairness.

Perhaps if the City of Naples had decided to allow the late nights, for which many places in Naples are able to stay afloat, things would have been different.

But, what can we learn from this debacle?

First, even the big guys, who - at first plan - are able to lease very valuable real estate and target a sophisticated market, make mistakes. And those mistakes are just as easily made, or avoided, by small businesses, so do your homework and plan for the future.

Second, with things slowing down you don’t HAVE to hold on. Cut your losses, if something just isn’t working out from a financial or resource point of view, concentrate your efforts and energy in a portion of your business that is showing returns.

What Are You Worth?

I just read something interesting that I think applies to the post I am about to write. A 10 pound note, as the story went (or in our case a $10 bill) is worthless. It is simply a piece of paper with ink with a pattern of text and colors and numbers, but with no essential value. If that piece of paper is torn in half it immediately becomes worthless, you can not use half the bill to purchase a $5 movie ticket or $5 worth of gas (not much these days). But, join the two halves together with a piece of transparent tape and suddenly, almost magically its value is restored.

But, it isn’t. It is only the thoughts and perceptions of the people surrending that bill, those in the society that have placed value on that piece of paper that have projected a value into it.

So too, your business operates on perceived value. Particularly in the service industry, particularly in a business to business service industry. Your products or services may have no “real” value, only the value you and others place on it. This topic, in particular, has been a hot debate in the web development field for which this argument comes out, a topic and debate I am familiar with.

It was one of the first things conveyed to me when starting out. Business consultants for example typically have no “real” value. At the end of their services, when they are done monitoring or evaluating a business perhaps their customer receives a few sheets of paper with carefully crafted words, where by which, if analyzed and followed a business may truly prosper, but nothing was created. There is no plastic models to be thrown up on a business trophy wall, there is no electronic device produced at the end of these services. A person or team of persons simply spent time observing, analyzing, and interpreting those observations, mixing them with experience.

The point is you do have value and so do your services, even if you are new, your services are amateurish, or you are inexeperienced. But, you must understand that it is you, as a business owner, who governs your price and that price will also help determine perceptions of you and your products or services. Even if it is only your time that is spent and nothing “tangible” is produced your products have a value. In the case of a business consultant, perhaps through creative management and accounting practices your insight is worth $1,000,000 in savings to a company over the next 3 years. What are your services worth?

In the case of pricing your own products or services think of the following:

• How much must it take to produce it (either in your time, your employees’ time, or cost of materials)
• How much does it take to sell it (marketing & sales related costs)
• How much must you make to break even and support yourself and your employees (local business environments play a big role in determining this)
• How much must you make to continue to grow (increasing the above three)
• How much do you want your business to profit from it (competitive businesses play another key role in this, all things being equal what do your competitors charge, you have an opportunity to either outprice your competition by offering more or better, or undercut your competition through fantastic people and processes)
• Finally, how much is it worth to those you are offering it to?

Additionally, understand that although sometimes uncomfortable, the discussion of money and pricing with your future clients as well as the collection of money after services are rendered, is a vital part to any business - but you and your services are worth it!

Welcome to Bonita Business

Thank you for stopping by the newest and most innovative place on the web for Southwest Florida. So, what is BonitaBusiness.com? I’m glad you asked. Bonita Business was created by me, Zach Katkin. I am currently the co-owner of Atilus, a local web development and Internet Advertising company based right here in Bonita Springs (Southwest Florida).

Basically, my partner and I have had to go through a lot in order to setup, and maintain our business. And as it grows, we are faced with new challenges and situations every single day. With that in mind we wanted to produce a true resource for the community, or those thinking about joining the community to assist others in the day-to-day operations of their business.

We also have additional resources we will be rolling out as the site chugs along in order to provide even more helpful information and services to the Southwest Florida (Naples, Fort Myers, Bonita Springs, Marco Island, Sanibel, Estero) business community.

In total, BonitaBusiness.com will provide visitors with:

1. Information on Southwest Florida’s business environment
2. Articles on business categories/topics from leaders in the community
3. Resources (where to get/find stuff for business)
4. Business Forum (open forum where users can discuss anything business)
5. Networking/Seminar Calendar
6. Business Directory (place for local businesses to gain exposure and market themselves)
7. Photo Gallery (pictures from networking events and seminars)

Articles on business categories will be written by partners of bonitabusiness.com who have been hand selected as prominent leaders in their field. Our articles will be featured under the following categories:

1. Technology
2. Real Estate
3. Marketing
4. Development
5. Management
6. Finance
7. Legal

So, check back often as we will be constantly adding articles and information to help new businesses, seasoned businesses, people and companies thinking about moving down to Southwest Florida as well as potential upstart companies and individuals who may want to start a business, but aren’t exactly sure how, or what they need to know.