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HomeMy WebLinkAboutClinton News-Record, 1986-11-26, Page 22SECOND SECTION Clinton News4ecori 1r01IRIN)RATI'(;-TBIF; 14.1'1'H STANDO THI IIA1FIELD BLY;1.F." WEDNESDAY, NOVEMBER 26, 1986 Small business By Shelley McPhee Haist I had considered the idea of owning my own business one day. So did some 25 other women who attended the seminar held in Goderich. We all had our dreams - to own a restaurant, a tea room, a fitness centre, a women's service co-operative, a graphic arts service; a craft shop, a clothing store, a catering business, a French immersion ursery school. We went to the Women At Work workshop keen with optimism and enthusiastic • with novel ideas. We left with a clear, realistic picture of the hard work, the stress, the financial limitations and the problems in- volved in owning and operating a small business. • Ninety per cent of small businesses fail within the first few years of their establishment. • Of the 10 per cent that succeed, some eight per cent of these businesses are run by women. • A business must operate for some five years before a profit will be realized. By the three year mark, the business should be operating at the break-even point. • Very few women are working at "the top." In September, 1984, only eight per cent of employed women were in managerial or administrative positions, according to the Canadian Advisory Council on the Status of Women. "You need a realistic idea of what you're getting into," Frances Shamley told the en- trepreneurial minded women who attended the workshop, part of the Women At Work Conference sponsored by Women Today. Frances Shamley has managed and own - d her own small business - a fast food restaurant. She also works as an adult educator with the Women's Community Enterprises in London. The Women's Community Enterprises in- volves a network of women who are involv- ed in small businesses that are co-operative or community oriented. These businesses all seek to make a profit, but they also have been started' with some other goal in mind - whether it is to provide jobs, offer a needed new service, or create an alternative to ex- isting work opportunities. Frances warned that starting a small business venture can be risky. It .can be frightening, expensive, and involve hard work and long hours. "If you can't take the fright, you shouldn't be in business," Frances stressed. On a positive note she encouraged, "Run- ning your own business can be a most ex- citing and challenging experience." Reducing the risks The risks of failing in a small business can be greatly reduced through careful plann- ing, a clear understanding of how the, business will work, development of a good budget plan and sound business practices. Information in a book put out by the Ministry of Industry, Trade and Technology suggests, "Starting a business requires spending time for planning and clearly understanding how it will operate. Since most businesses start modestly, with low overhead and minimual staff, the owner - manager very often must be all things to the business. This means long hours, having a clear understanding of all business aspects of the new enterprise and a need to follow a predetermined course. Failure to do so often leads to a breakdown in basic business func- tions, loss of control of the business's direc- tion, and an inability to determine where the 3.1 a giant effort company stands in the marketplace. Those circumstances can iead to business failure at a very early stage." Frances Shamley suggested that for the most part, women who run small businesses are generally more successful in their ven- tures because they take extra time to prepare and plan. She explained, "Women think about their business plans for a long period of time. Generally they don't have the finances readily available to proceed with their plans and they have a longer time to consider the pitfalls. Men on the other hand, are trained to be career minded. They grab an idea and often jump on it before giv- ing it enough careful consideration." She further noted, "Men set up com- petitive businesses more readily than women. Women tend to be co-operative. They work together, they're more flexible." Frances said that co-operation and flex- ibililty are key words in an entrepreneur's dictionary when it comes to starting a new business in a small community. She noted that in small communities, competition between businesses generally lead to failure for one of the operations. She urged small business owners to work together to enhance the community as a whole. For businesses in competitive fields, like restaurants for example, she suggested, "Aim to find a different market, a clientele that isn't being served, a serivce that isn't being offered." She said that rural areas have unique obstacles for business people to overcome - problems with isolation, a scattered popula- tion, limited clientele, lack of transportation. "You must make a market research assessment of the community you wish to serve, the people you want to serve, what services you want to offer them." Excellent information comes from study- ing other businesses in the area, both the successful ones and those that have closed shop. Frances advised, "You always have to be looking around your community, looking at other people's businesses." If you cannot do a cash flow forecast yourself, hire someone to do it for you." Service with a smile Last, but not least, quality services and good public relations are vital to the success of a small,business. The Eey is to provide ex- cellent service to both the employees of the business and the customers. Instilling a philosphy of quality, service and excellence within the business means that these qualities will be reflected in the employee's dealings with the public. "Treat your employees as important to your business. Give them respect, respon- sibilities and opportunities to further their job skills. Being a good employer means knowing what an employee needs," Frances said. "The staff must be goal oriented to believe that the customer must be served to the best of the busineses ability." It takes a lot of hardl.work and "stick-to- itness" to run a business, It takes stamina, not novel enthusiasm., Frances advised, "Your timeable is geared to other people, your customers, your employees. Your time is not your own. You lose touch with your family, you lose touch with reality. You lose touch with your outside interests." Good service checklist "As the company grows, you need more than good ideas or skills. You need to have good managerialtalents with people. A company philosphy should be to provide the best service you can, offer employment and personal growth, and to be a positive force in the community." • Good service is the best advertising a business can buy. • A good customer is a business's best asset. • A good employer is committed to staff training, quality service and excellence. • A good business has a strong financial base. • A good business has an easily accessible location. • A good business provides a needed ser- vice to the community. Money management Talent, enthusiasm, self confidence, com- munication skills are all important aspects in being a successful entrepreneur, as is the understanding of finances and good business control. Bookkeeping practices are an essential part of running a business. Poor business records mean poor controls and ineffective 'management. Bad accounting can lead to troubles Fah the customers, the banks, the government tax departments. Business peo- ''ple who can't properly manage the financial records should hire someone who can. From the first steps that the business owner takes, the financial aspect of the operation is a crucial concern. "Avoid borrowing money from the bank," Frances noted. "Start your business on a small scale, using your own savings, You'll need to have an alternative support income or have ample savings." Financial requirements should be outlin- ed in a detailed plan. This should include in- itial costs, for land, building, fixtures, machinery, supplies, vehicles, pre -opening expenses and opening inventory. A daily operating cost schedule should include ris- ing inventories, payroll, rents, taxes, adver- tising, accounts receivable. ",It .is vital that you know what all these costs will total. You must prepare a cash flow forecast, which will give you a reasonably accurate estimate of your cash requirements for the first 12 -month period. The realities The risks, the pitfalls and the rewards of starting and managing a small business were clearly outlined at the workshop and the participants gathered new food for thought. Some decided to put their small business dreams on the back burner. Others were encouraged to proceed with their business ventures. Others gained new ideas and information to take -back to their jobs. "Almost everyone has thought about star- ting a business at some point; ' the in- dependence it would bring; the thought of being your own boss, -the opportunity to earn profits; the idea of being a decision maker; and, the -freedom from routine. All of these are powerful motivating factors. But the decision to enter into business cannot be solely based on emotion. The decision will effect your personal life in many ways," read a section in the Ontario government book, How To. Start and Manage A • Small Business. "It is important that the individual recognize personal limitations and thoroughly plan and understand the new business. This will greatly enhance the chances of success. In the end, a successful entrepreneur, having started from scratch and succeeded, will gain great satisfaction from the experience and achieve that level of freedom originally sought." 54? No kidding in this r �b s.c ..atlYllg11� t" ,l rre�iNeitellrs behindbehind0 dd a, gi d , year. Little Gabrielle Mitchell is outfitted in th f sold there, (ShelleyMePhee Habit photo) li: i oweu`: are the e'i1 �' PAO& t Oiiened in Clinton this ontlble, high finality clothing that is A bus iness Carolyn Mitchell is a highly motivated business woman. Her motivation follows a clearly outlined plan of life that she has developed for herself. As a child, Carolyn dreamt of having her own business when she grew up. She geared her educational and career ambitions towards that aim. Her plan saw college studies in fashion design and merchandising. After that she selected a women's dress shop as the workplace where she would gain her prac- tical experience in the field for some eight years. Her plan further saw the establish- ment of her own business by the time she was 30 years old. To date, Carolyn has been successful in her plans. This spring Carolyn Mitchell opened No Kidding, a children's clothing shop in Clinton. No Kidding is a clothing store with a dif- ference. The concept behind the shop is to offer high quality, fashionable clothing for babies and children. The inventory includes the popular Beatrix Potter line of infant sleepwear, Pierre Cardin designer rompers for babies, stylish Helen Henderson party dresses for older child n, 1sh Kosh overalls for playwear. Carolyn say that No Kidding is ique in its service ' ha ' also offers a wi a range of cloth' i : in larger ildren's size Ca u yn Mitchell an er Bev Chowen are equal partners in the business venture. .Carolyn intially considered and developed the concept for No Kidding, then proposed the venture to her mother. Bev had retired from a working career the previous year. She was bored, tired of sitting at home and she readily accepted Carolyn's proposal. "We can easily sort out our differences. As a partner,choosing my mother was a safe bet." It took more than a year of thought and market research before Carolyn made her. deeis en to' ;pen! it; g iildren clothing `sho haaltr�r p... irsce a s�c(�li`thoa htsaite y opening the'do'ors of the shop this'March. Taro to page 2 m Good help is essential to a successful business. Freda Snieder (left) has found an ex- cellent employee in Jean DeJong (right) who has been with The Dutch Store since its opening 12 years ago. (Shelley McPhee Haist photo) Born business woman Freda Snieder is a modest business woman. She's also a successful one. Her 12 year long history on Main Street Clinton as owner of The Dutch Store tells the story in itself. Her busy shop, her regular clientele, her excellent service and products are her proof. "I don't know much about business," Freda says. However, she says she in- herited a logical business sense from her family, a long line of small business operators in Holland. "The customer is king. I learned that say- ing as a small child," Freda recalls. The old adage holds a great deal of stock in this woman's business dealings. "If you're always sour looking, your customers won't come back. You have to build up trust with your customers. You have to know the product you're selling." The Dutch Store is unique to this area, and in part that accounts for its success. It caters to the Dutch -Canadian people in the region, offering a large selection of Dutch groceries from cookies to soup, canned goods to meats and cheeses. There are also souvenir items, Delft Blue pottery, Dutch language books and records, wooden shoes, and an extensive' line of yarns and needlework items. "The Dutch groceries provide a steady in- come for the store. That's' my bread. The souvenirs sell well in the summer, the yarn in the winter. That's my butter." Freda is disciplined and careful in her financial affairs, believing that how she manages her money determines her business success, or failure. "First I pay my bills, then .I pay myself. Many people make the mistake of taking too much money out." She's also careful when it comes to pur- chasing stock for the shelves, noting, "You have to have a level head. Some suppliers will try to sell you everything. It's very easy to buy more, but I'm careful about buying. I start with a few things. If it sells good, then I buy a little more." Freda purchased The Dutch Store 12 years . ago, with help from her husband Hank. He died just over five years ago. Reflecting on the first few years of her widowhood Freda notes, "I don't know what I would have done without my business." The Dutch Store continues to be a vital. part of Freda Snieder's life, both foil its in- come and the social aspects that the job offers. As for the future, Freda simply notes, "I cannot worry about the future. I just carry on." Second round for Sheila After five Christmas seasons Sheila Richardson brought in the liquidators and closed shop at The Arbor. It was a difficult decision to close the popular Clinton gift shop. "When we were holding a closing sale I almost changed my mind. But I was mental- ly exhausted. I couldn't go on," Sheila remembered. That was then. Now Sheila Richardson is back in the Clin- ton retail scene, as the new owner of Camp- bell's Men's Wear. She's still nervous, still worried and con- cerned about owning a business of her own, but this time Sheila feels that she has ex- perience backing her in her newest business venture. "I was totally green when I bought The Arbor." Sheila liked the idea of owning a women's dress shop. She saw that the gift shop was up for sale and she went ahead with her plans to buy it. "It was nervy of me," she reflected. The Arbor continued on as a gift shop which Sheila owned and operated, with help from a part time employee. "People don't realize the hours you put in- to a business. You work all day. You come back after hours. You do bookkeeping, buy- ing, looking after the store. You chew a lot of finernails." Sheila looks back on her years at The Ar- bor as a learning experience, "I went to school for five years.' Her interest in the retail business led Sheila and her husband Carl to purchase Campbell's Men's Wear some 10 months ago. Although she's a woman in a man's Turn to page 2 • Being her own boss is best "I like to be my own boss. I like standing in the middle of my store and saying 'this is . mine to make or break.' " After more than two years on Main Street Clinton, Janet Buchanan is making it. Initially people thought otherwise. Many. were skeptical, uncertain that a food store that deals in cheeses and chocolates, teas and candies could be a success in a small community. General opinion is slowly changing. Janet says that Everything Good is not specifically a specialty food store. That conµ cept, she says, is not accurate, and the idea of "specialty foods" turns some potential customers away. Everything. Good stocks quality foods, and some special items that aren't available in local grocery stores: Too, Everything Good prepares party baskets, cheese trays and plans parties. " o . can cone in ,*.Of nFu iilg gi yottf'eh'ti<re.pa� for ��it��,-, ,�� Janet has More than. 10 years e; ,:., is the business, both in retaili catering. Still, she has learned that dealing with suppliers and companies has been a tough aspect of the job as business owner. "Because I'm young and I'm a woman, some companies feel they can walk all over you. High pressure salespeople can get to be a pain. They promise you the world. They only want to make a sale." Janet does not believe in operating a business that way. She strives to maintain a philosphy of excellence, for herself and her employees. "It has to be done right. If it isn't, I could lose my shirt." She believes that training staff is essential to the job, noting, "You're only as good as your staff." Too, she stresses quality service to the customer, "You have to be a'service. I ap- peall';to the. working woman and my hours od an ave t�C, �' �epra~d to her rvork.,:.Nob ,y busitess cats afford to lose a customer. hitetivaits hard in her business venture - Turn to page 2