Sharing Small Business Wisdom

As part of the lead-up to the eighth annual San Francisco Small Business Week (May 13-18, 2013), I was interviewed for the San Francisco Small Business Week blog.

The week is designed to offer a series of educational and networking events to educate, connect and celebrate the small business community in San Francisco. This year’s festivities will include a conference with 50 free workshops and seminars for small business owners (I’ll be speaking about business planning), a gala called Flavors of San Francisco, and an awards ceremony hosted by the Small Business Commission, the Mayor’s Office and the Board of Supervisors to recognize exceptional small businesses from each district and city-wide.

Here’s my interview with Small Business Week…

SMALL BUSINESS WISDOM FROM PAUL TERRY

Small businesses in San Francisco have a wealth of opportunities to access wisdom and technical assistance from a variety of small business experts who provide one-on-one counseling, technical assistance, and instruction through neighborhood and community-based nonprofit agencies. The San Francisco Small Business Week Committee is pleased to share wisdom from these experts who help the small businesses that shape our communities to succeed.

Today we hear from Paul Terry, business planning coordinator at Renaissance Entrepreneurship Center, who believes that one of the keys to success is making a life-long commitment to education.

What role do you play in supporting San Francisco’s small businesses?

I’ve supported small businesses for more than 25 years as an independent business consultant and owner of Paul Terry & Associates with skills that I developed from launching my own food, distribution and training businesses in San Francisco. I am also the business planning coordinator and primary instructor at the Renaissance Entrepreneurship Center. I was one of the initial developers of Renaissance Entrepreneurship Center’s entrepreneurship program, business incubator, and business support program.

The role I play in supporting small businesses involves teaching, empowering, and encouraging entrepreneurs to start and grow businesses. The training and consulting helps people build their confidence and access the resources they need to be successful in business.

As a small business consultant in private practice, I work with 25-30 businesses each year to facilitate growth and transition, to build effective partnerships, and to implement strategic planning solutions. Over the years, I’ve taught 7,500 entrepreneurs, and I’ve supported over 600 small businesses.

In your years of working with entrepreneurs, what has emerged as the greatest challenge to a small businesses success?

One of the biggest challenges relates to maintaining balance. New business owners need to recognize that their entrepreneurial skills – their ability to get the business up and running – need to be in line with the complexity of the business model. They need to hone their skills, tap into their confidence and develop the scale of business that makes sense for who they are at a particular time. New skills are then required on an ongoing basis as the business grows in size and complexity.

Another challenge facing new businesses involves joint ventures and business partnerships. If the business partners fail to clearly define the relationship at the early stages, problems quickly emerge and often create disruptive conditions as the business grows.

A third challenge for a new business occurs when the entrepreneur attempts to transition from a full-time job — working for someone else — to working in a business that is not immediately profitable. People need to be realistic about the appropriate amount of capital they need launch and grow to profitability.

The common thread – and the reason people come to me – is that they are stuck. They need a better framework for making educated decisions and they need access to the appropriate mentors, advisors and associates for advice and direction.

In your experience, what is the biggest key to long-term success for a small business?

Businesses that have been around for a long time survive and thrive because they provide very good services to established clientele with fair terms and conditions. Long-term success also requires being nimble enough to adapt to new markets, emerging trends, and new technologies.

There are macro and micro competitive forces that can undo a successful business. It is key to make a life-long commitment to education, strategic thinking, and new skills development.

What are some of the most important ways in which small businesses shape communities in San Francisco?

Small businesses define the character of our neighborhoods in San Francisco. The appropriate mix of small businesses enriches and energizes a particular area, which attracts tourism and inspires residents to shop locally. Small businesses invest in their communities by hiring locally, engaging in local politics, donating to nonprofits, building parklets and other community spaces, and doing all the critical things that make our neighborhoods more enjoyable. Small businesses are the advocates of local development and define the flavor and culture of this city – with “pop-ups”, food trucks, trunk shows and an involvement in the local areas where they live, work and play.

Transitions: A Bridge to Change

March 7, 2013
Profiles
PTA
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The author of Transitions completed his own transition. Dr. William Bridges died on February 17th. He was a pioneer on the work of transitions and transformed the way people think about change. Through his business networks and books (Transitions and Managing Transitions), he had a huge impact on many people, including me. He gave us tools to help us understand and talk about change and he explored how people actually experience change and what they need to get through it.

In 1980 he published Transitions: Making Sense of Life’s Changes. In it he proposed that even though change is situational, transition is psychological and something that needs to be better understood, especially in our fast-paced world. He believed that people experience change in three stages: first as an ending, then as a period of confusion and distress, and finally as a new beginning. He observed that people often try to skip from the first stage to the last but he proposed we spend time in the middle step—or as he called it, “the neutral zone.”

In his obituary in The New York Times on Sunday, Jim Kouzes, the author of The Leadership Challenge, was quoted as saying that “Bill’s major contribution was to give us permission to talk about the pain and difficulty of change and acknowledge that it can be very confusing. Americans have shame around pain—success is somehow supposed to be easy. If you are struggling, it’s as if you’ve failed. Bill… said, yes, you can find real meaning in change but only if you are willing to experience the pain.”

Tom Yeomans, founder of The Concord Institute reflected that “Trust informed Bill’s process and trust is the core idea of self-reliance—trusting your instinct, what you know, your potential to be more truly yourself, trusting the process of change and moving with it.”

For me, Bill Bridges was a mentor. I met him twenty years ago at a networking group and we talked all the way down in the elevator. I told him about my work training new entrepreneurs and established business owners and how they struggle with scary transitions in start-up and expansions. He wanted to know more and after a few lunches together was very supportive of what I was trying to do to support small businesses. “This is very key work” he said, “so write a book on it.” I did not write a book but I am so grateful for his support and mentorship as I developed my early consulting practice. It is so often our business friends and mentors that help us through “the neutral zone” on the way to those new beginnings.

Be Here Now

BE HERE NOW. The ultimate “mantra” voiced by Dr. Richard Alpert, known to many of us as Baba Ram Dass. Last Friday night I saw “Acid Test: The Many Incarnations of Ram Dass” at The Marsh in Berkeley. It featured Warren David Keith as the performer and was written by Lynne Kaufman. This one-man play covered three significant events in the life of Ram Dass – meeting his guru Neem Karoli Baba in India, being present at his father’s passing, and dealing with a serious and debilitating illness in these last years of his life. The performance was fun, sad and deeply effective. Now, it may have been particularly enjoyable to me because I met both Ram Dass and his guru (referred to as “the blanket Baba”) in India in the 1970’s. At the time they were funny, powerful and quite present.

In his many books and lectures Ram Dass has gifted us with his message of mindfulness. For him, it is all about being and staying in the now. It is difficult to “be here now”, though. When you think about it, it’s already behind you. When you contemplate where you want to be or what you want to do, you are beyond the present moment.

I spoke briefly with Warren David Keith after the show. He told me about performing the play for Ram Dass at his retreat in Maui. He said Ram Dass was very frail but very present. How often does someone get a chance to see their life story acted out in front of them? If we were to see our own story played out before our eyes, could we “be here now”, too?

In our own businesses we try to stay present – in front of clients, ordering inventory, hiring staff, reviewing financials. Can we assess past performance and plan for the future while also being present and aware? It may be difficult but it might help us stay focused on what is most important and run our businesses with openness and mindfulness.

If you are interested in seeing the play, it’ll be at The Marsh in San Francisco on April 12th.

In Conversation with Al Gore

Well …he wasn’t talking only with me. Along with hundreds of people, I got the chance to hear Barbara Kingsolver speak with Al Gore at Herbst Theater in San Francisco on Tuesday night. I really went to hear Barbara Kingsolver, as I had just finished reading her latest book, Flight Behavior. (As I listened to her speak the butterflies from her book kept fluttering through my mind.) Perhaps Al and Barbara had “butterflies” but I think not—they were both so poised, balanced and professional from the start of their exchanges.

Outside the theater there were protestors upset that Gore is not being “green enough” but we went on through to claim our seats. There were murals on the walls and perhaps butterflies in the air, as there was a buzz for sure. Al Gore was contemplating “The Future: Six Drivers of Global Change”.

They started poised and respectful of each other’s contributions to the topic and their work to date. Barbara’s questions were insightful and calm. Al Gore started quietly but in the end he nearly jumped from his seat as he wound up and delivered on the six drivers of global change.

From his perspective, those are:

the increasing economic globalization that has created Earth Inc.,
global communications that can reach billions of people at a time,
the shift of global economic and political power without perhaps the USA at the center,
a deeply flawed economic compass leading us to unsustainable use of all resources,
biotechnology, neuroscience and life science revolutions with power in only a few people’s hands, and
a radical disruption of ecosystems and human consumption that impact energy systems worldwide

What he shared was depressing and definitely overwhelming, and yet here was another inconvenient truth from Al Gore. The silver lining of his message was to take a small piece of an issue — community based or national — do something different and bring others with you. One small step by each one of us could be one giant step for all of us. He views it as “a contest between the Global Mind and Earth Inc.” How this battle plays out depends on us, and, particularly, on the revitalization of democratic institutions in the United States. Let’s discuss and act!

The Season for Action

When is it the season for action? Do we wait for perfect conditions before taking a step? When do we move ahead on an idea to expand or refresh our business?

For me, the New Year is often a great time for taking stock of last year’s “seasons” and preparing new ground. It is a time to review, re-assess and take action in my business. I assume that this makes sense for almost all business owners. If not now, then when?

To everything there is a season, and a time for every matter under heaven.
A time to be born, a time to die,
A time to plant, and a time to pluck up what is planted,
A time to kill, and a time to heal,
A time to break down, and a time to build up,
A time to weep, and a time to laugh,
A time to mourn, and a time to dance,
A time to cast away stones, and a time to gather stones together,
A time to embrace, and a time to refrain from embracing,
A time to seek, and a time to lose,
A time to keep, and a time to cast away,
A time to tear, and a time to sew,
A time to keep silence, and a time to speak,
A time to love, and a time to hate,
A time for war and a time for peace.
Ecc 3: 1-8

Resolve Conflict

Being in business is challenging. You can’t be in business without running into conflict at some point… your landlord raises the rent, your largest client reduces your hours, your reliable vendor is three weeks late with inventory, your wait staff calls in sick at 5:00pm and/or your key employee gives notice. Wow! What to do?

Winged Wisdom, part of Presidio Habitats, a site-based exhibition created for the Presidio of San Francisco

Perhaps the answer is to quit…start a new business or…as we all say to ourselves at one time or another, “I need to get a job!” Most of us don’t go and get a job. Sometimes we try and go through the motions of an interview and think this will resolve all the conflicts…but then realize that’s really not what we want. Working for someone else does not resolve or eliminate conflict. It is still there and now we don’t have the “power” to implement a change!

The idea is not to instigate conflict or prolong it, or try to win the argument. The process of running a business is to minimize conflicts and if a conflict arises, to face it and try to resolve it. The owner has to build the business, take care of the employees, satisfy the clients or customers, and create a balanced life for themselves.

There are solutions to the conflicts. Sometimes it is a genuine transparent management style; at other times, it is direct conversations with key employees; or it could be recognizing the error before the client or vendor sees it and suggesting a solution before there even is a conflict. (When I ran a gourmet food business, I noted right after the holidays that we did not sell all the extra inventory that we had bought. I called the vendors immediately and negotiated a 6 month payout plan…before they noticed we were late with payment and got upset with us.)

To find the right solutions we can look to supportive mentors or professionals who can listen and advise, talk things through with key employees, meditate on the right action, and then forge ahead and explore new approaches. If you run your business with integrity, honesty and transparency and confront your stumbling blocks head on, you can make it through. But if you don’t resolve a conflict…guess what comes back for you another day? So, resolve conflict!

In the Company of Others

A common assumption is that word-of-mouth promotion for small business means encouraging customers or clients to tell other people about your business, either directly or through online review tools like Yelp. This is important but another key part of word-of-mouth promotion involves your own word-of-mouth efforts—attending events, meeting new contacts, talking with others and sharing who you are and what you do.

It’s great to attend events that directly relate to your business or industry and it’s also incredibly valuable to just get out there and make contact with people. We need to be out in the public—be it a street fair, holiday event or home-based party—and connect with others.

Even at gatherings that aren’t “officially” networking events, try to put yourself into the mix and in your own way, “work the room”. It’s okay to have an agenda in mind. You can be ready with a critical question to ask or some simple information to share about you and your own business. Travel with a business success story or a lesson learned, and always be on the lookout for good resources and leads for other business owners you know.

In conversation with PTA Associate Andrea Baker, Owner of Baker Consulting

The key to building a good reputation may simply mean being a person ready with a story to tell, good resources to share, and the ability to listen and ask questions in all conversations. Every encounter is a potential business opportunity—even if you don’t know what the benefit will be to you and your business in the moment! It is in the company of others that magic can happen.

Testing the Waters

Before you start a new business or expand into a new marketplace, it’s always essential to “test the waters”. This means doing some simple market research. The intent is to find out as much as possible about potential customers or clients before taking the plunge and/or repeating a marketing effort!

Shoe leather approach
Market research can be as simple as asking casual questions, comparing prices, walking around your neighborhood or attending a trade show. I call this “shoe leather research” even if you don’t do it by walking around. You learn by keeping your eyes open, your ears to the ground, and paying attention to what you notice.

Situational Observations
Casual and informal research can also be called situational research. Basically, it involves getting a feel for the industry, the general marketplace, and/or the specific targeted market that you think is right. The process can include informal conversations with potential customers (“I’m thinking of opening an online pet helpline. Would you use something like that?”), direct competitors (“I wonder if you could help me as I’m thinking about opening a shop like yours 50 miles away.”), and potential suppliers (“Can you tell me how much inventory you usually sell to stores that carry your line?”) Sometimes this informal style of research generates enough information to build your confidence and help you get a new business started. Other times, this approach will help an existing business to identify and carry a new product line.

Formalized Primary Research
Shoe leather and situational research can be very helpful but more formalized research may also be needed when trying to determine if your business approach is the right fit. This can include careful observation (watching, counting, recording), interviewing someone relevant to your business area (by phone, in person or online with carefully chosen questions), or preparing a survey to administer to your potential customer base (by mail, in person or online using free software like Survey Monkey).

Secondary Research
It can also be very helpful to do secondary research—getting information from trade journals, census reports and other industry references. There are online services based on Google key words or specific industry data. This form of research is easier in a way (you just go online and ask some questions) but it isn’t always relevant and may be too general for your market. A combination of primary research (done by you to acquire original data) and secondary research are BOTH valid and need to be part of your business planning.

Making the Time
The most important factor when selecting a market research approach is to determine if you have the time to do it and if you will actually compile and use the data. Your research should help you minimize the risks related to the venture you want to undertake, so make the effort to talk to people, gather information from the industry, watch competitors and record your impressions. Testing the waters (even at the shallow end) will make your plunge into business much more successful!

photo credit: http://walkingfit.ucr.edu/faq.html

A Day in the Community

Last Saturday (before the World Series started nearby… Go Giants!) I attended the 23rd annual Potrero Hill Festival, a gathering organized by the Potrero Dogpatch Merchants Association (PDMA). The festival was a benefit for the Potrero Neighborhood House. Twentieth Street was teaming with people enjoying the live music, sampling tasty treats from food trucks, learning about a variety of important causes, and supporting Potrero Hill and other San Francisco businesses. It was a full day of sun, fun, music and food, with many families with young children in attendance.

This festival was a great way to remember the strength of community that comes from the neighborhood and in particular, the local businesses that make it a vibrant place to live and work. A variety of local food establishments were involved this year, from the new restaurant Skool, to neighborhood anchors Good Life Grocery and Farley’s.

To be a part of a community, we need to show up, get involved, and support our neighbors. This year, after 20 years of doing business on Potrero Hill, I was invited to join the PDMA board of directors. I am learning a lot, working with other small business owners/volunteers, and seeing how a few people can make a significant impact through their involvement in local businesses, schools, organizations and the political process. Wherever you live I hope there are opportunities, like this festival, to come together as a community. If not, maybe it’s time to take the lead and organize something in your neighborhood!

New business ideas popping up all over town

October 12, 2012
Current Climate for Small Business, Trends in Small Business
PTA
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A golf course in downtown San Francisco?

How is this possible? Well, there is a new concept for mini golf being tested that just might work. Steve Fox displayed his idea for a mini-golf course in San Francisco on September 21st as a pop-up in a San Francisco parklet, right outside of SPUR in downtown San Francisco. The course was designed as a mini version of Golden Gate Park. He got exposure, lots of great press and an affiliation with SPUR.

This is a great example of how San Francisco parklets are not just gathering spaces but testing grounds for new entrepreneurial ideas. Check out this map of parklets and other public space projects from Pavement to Parks, the collaboration between the San Francisco Planning Department, the Department of Public Works, the Municipal Transportation Agency, and the Mayor’s Office.

What’s the next step for Urban Putt? Perhaps a hole in one if he can get the space and funding for a permanent home. The business plan has been drafted (with help from Renaissance Entrepreneurship Center) and interest and support is being explored.

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