Do everything better - 18 ways to improve a small business - Industry Trend or Event

Home Office Computing, Oct, 1997 by David Wallace

Establish allies. Try to team up with the best in a complementary business. For example, we worked with [noted furniture designer] Herman Miller to create the ideal desk for a notebook computer.

Seek new markets. Find a niche servicing customers who have never before been catered to as a consumer segment. They may not be easy to find, but they're out there and are potential clients.

Become a World-Class Tightwad

Amy Dacyczyn grew The Tightwad Gazette from 1,700 monthly subscribers to more than 104,000 in just one year and wrote two books on penny-pinching before she recently retired.

* Any repeat purchase makes it worthwhile to count the pennies. But if it's a onetime buy of a box of pencils, don't sweat searching out the best deal.

* Join only the professional organizations that produce results -- beware of groups catering to wannabes, since successful people are usually too busy to get involved with those groups.

* Use free methods for coding mailings by, say, calling in responses from one ad to Box 3570 and another to Box 3570P to see where replies come from.

* Do the math to make sure there's a saving before you take any major steps -- if there's no saving of time, money, or resources, why change your pattern?

* A measure of any business success is producing enough income to support yourself. If you can live on less money, you give your business a greater chance of success.

Get those Government contracts

Raj Khera founded GovCon Inc. (www.gov.com) to help companies get contract work from the federal government.

1. The government says it pays within 30 days, but it doesn't;t always. It's good to have a line of credit just in case.

2. You can check on who wins contracts as well as their winning bids. That will help you decide whether you can make money by contracting your services to the government and help you identify companies you might want to work with cooperatively.

3. Start out as a subcontractor to learn the rules, regulations, and rights of being a supplier before trying to be the lead company in a government contract.

4. Use FACNET, a network of suppliers certified by the government that offers an electronic listing of government contracts of less than $100,000. You can see recently expired bids at www.govcon.com.

5. Cultivate personal contacts within the departments you plan to serve, so people can get to know your firm and alert you to upcoming contracts or projects.

Avoid Growing Pains

Fernando Espinoza was Hispanic Business magazine's 1996 Entrepreneur of the Year. His 10-year-old Andes Chemical Corp. exports raw materials throughout the Caribbean and Latin America and has annual sales of $25 million.

* Limit expansion through new products and services to avoid runaway growth. This also helps avert disappointed customers who cannot be properly served.

* Plan new products around existing customers who have proven buying patterns and a good credit history.

* Be strict on payments and be prepared to cut off slow payers. Show the same respect to your suppliers -- pay on time.