Is it true that SBA loans take longer than regular bank loans to be approved? I’d expect as much from a government agency.
Actually, the Small Business Administration doesn’t extend loans, it just guarantees them. As for a protracted approval process, that’s another widely held misconception, says Kate Lister, author of Finding Money, The Small Business Guide To Financing. “The information an SBA lender requires, save for a few extra details, is the same as for regular loans,” she says. Keep in mind that if one SBA lender is not interested in doing business with you, that shouldn’t preclude you from visiting others. “Each lender has their own approval criteria,” Lister says. To find an authorized lender, visit sba.gov or visit your local SBA office.
At what point should I cut out of sales?
Working out the value of your time to the business is a fairly straightforward sum, and if your financial goals are bigger than any sales you could close in the dispensary, then you are right to be looking to spend more time strategizing, working on marketing campaigns, meeting with potential partners, taking advanced business courses or whatever. But it’s a mistake to think you can or should ever stop selling. Your staff needs to see you constantly looking to bring in new business. That can be with regular stints on the sales floor, playing a support role, making the odd old-fashioned sales call or by trying to sell the company at a higher level. Once it stops with you, it’s over (from the top to the bottom).
I’m about to promote a staff member to manager. What’s the best way of preparing her for the challenges she’ll face?
Be sure to give her “The Talk” — the one about how it will be hard to maintain close friendships with her former peers and that while you don’t prohibit fraternizing (at least we hope you don’t) you do recommend she maintain some professional distance from the rest of the staff. Let her know your door is always open to discuss issues because there will be times she’ll need someone to talk to. INVISION’s Real Deal columns (the full archive is available at invmag.us/knowhow) are a great resource to show her the kinds of situations that she is likely to face. Another is George Fuller’s The First-Time Supervisor’s Survival Guide.
I’m thinking of going open book with my finances as a way of getting staff to understand what’s involved in running a successful business. What do you think?
We’ve read about businesses that do this with great success. But this level of transparency is not for everyone, given the financial literacy required to understand whether a business is healthy. You may just want to reveal your sales figures, though profit margin is a much better indicator of performance. Tell your staff that if net profit margin is under 5 percent, the business is barely surviving. Otherwise, discretion may be wiser. “Know what numbers you can share and defend, or just keep your books closed,” says Greg Crabtree, a CPA and author of Simple Numbers, Straight Talk, Big Profits.
I’m moving my optical store to a new location about 25 miles away. What are some ways to get my customers to follow me?
Have no fear — this is actually a great marketing opportunity because it gives you a valid reason to communicate with your existing clientele, as well as prospective customers. Start getting out the news months before the move. “It is important to communicate why you are moving — a better location, a bigger location, a more convenient location, you purchased a building,” says James Porte of the Porte Marketing Group. Place a notice in your existing store announcing the move. You can also mention it on your business cards, invoices, and via other media. A direct mail-out is critical, says Porte, adding the more memorable it is, the better. “I once saw a pack of cards imprinted with a business’ name that was packaged in a die-cut paper moving truck as a self-mailer. It was awesome!” Next, get in touch with the local newspaper and tell them about the move, and in particular what you’re bringing to the market. Finally, hit the phones to make personal contact with every one of your customers. Then start planning that grand opening party.
This article originally appeared in the June 2017 edition of INVISION.
This article is an online extra for INVISION Online.