A look at how Optimum Springs got its start

By Jim Molis

Optimum Spring Solutions has honed a niche in producing and exporting customized springs for other manufacturers by researching its market, refining its business plan, and resolutely pursuing opportunities to grow.

“They’re a great small company started by two industrious people,” said Nick Sacia, executive director of the Economic Development Council of the St. Johns County Chamber of Commerce.

That industriousness emanates from a multi-generational commitment to manufacturing quality springs and offering them at competitive prices with fast delivery and personalized service.

As a young girl in Argentina, Andrea De Palma grew up in her family’s spring factory. She watched how springs were made, played with them, and often helped count them, sometimes for fun.

Her family started the company, Resortes De Palma, in the 1970s. They grew it into a multinational corporation, exporting springs to the United States and Europe.

In 2006, she and her husband, Marco Fortini, started working with the company’s U.S. customers a few hours each month while living in North Carolina. Though they were both in computer sciences at separate companies at the time—he as a project manager in software development and she as a software trainer—they helped her family when they could.

Initially, the couple provided administrative support, following up on deliveries and payments. As they learned more about spring design, they started answering technical questions and recommending materials. “We were learning about the business by accident and it became interesting,” Fortini said.

The couple became more involved, wanting to add U.S. customers and increase volume. But with a sagging economy, rising gas prices, and increasing shipping costs, it was becoming more difficult to import springs. “It felt like we were swimming upstream,” De Palma said.

So, they started researching the possibility of manufacturing springs in the U.S. and exporting, rather than importing. With small-business counseling from SCORE, the couple compiled an exhaustive business plan.

“We recognize that planning is a key component of success,” Fortini said. “Implementing a carefully crafted plan is the easy part. The hard part is making sure that the planning addresses as many variables as you can anticipate, and controlling those risks.”

In compiling their plan, they identified Jacksonville as an ideal market, citing its transportation infrastructure, access to industrial equipment and materials, quality schools, and leading healthcare facilities. De Palma also referenced the Port of Jacksonville as a competitive advantage.

“[The decision to move to Jacksonville] was half and half the decision—half for the company and half for us,” Fortini said, alluding to the good quality of life in the greater Jacksonville area.

So, in June 2009 the couple opened Optimum Spring Solutions in a 5,000-square-foot space off U.S. 1, near CR 210 and Interstate 95 in St. Johns County.

They started with a single machine, which in itself was a risk. And to finance their operation, they approached 20 prospective lenders, who all (except one) turned them down. The one offer they received? Financing at an interest rate of 40%—hardly an attractive offer.

Despite having strong personal credit scores, since they were starting a new company, lenders repeatedly told them that there would not be enough volume to support the purchase. The couple disagreed. “We knew from the planning and risk assessment that there were opportunities for our company,” De Palma said.

The couple purchased the machine after combining $500,000 from their savings and family loans. Her father also trained Fortini on a similar machine at her family’s factory in Argentina, so that Fortini maximized the value of his training time with the machine’s manufacturer. 

With Fortini producing the springs, Optimum Spring Solutions rapidly began filling orders. Shortly after beginning, they received a large order related to a defense contract. Together with existing orders and a need to manufacturer larger springs than the first machine could handle, the couple soon added a second machine and related equipment.

Optimum Spring Solutions now manufactures custom springs for the U.S. military, large domestic companies, and businesses in other countries, including Canada, New Zealand, Singapore and China.

Building relationships and credibility have been vital.

The couple learned early to seek help wherever possible. They met two of their closest advisors, Sacia, from the St. Johns Chamber and Larry Bernaski from Enterprise Florida, while attending an exporting seminar hosted by Congressman John Mica, R-FL.

“It came through to me loud and clear speaking to Marco and Andrea that they wanted to export,” said Bernaski, regional manager of international trade development and Canada specialist for Enterprise Florida. “They’ve demonstrated their commitment.”

They also have grasped the importance of having Enterprise Florida, a public-private partnership with offices throughout the state as well as internationally, vouch for them with overseas customers. Enterprise Florida provides introductions and letters confirming that Optimum Spring Solutions is a reputable company.

“Many companies don’t fully understand how significant this introduction can be and the positive impact it can have on the foreign company’s decision to buy from a U.S. company,” Bernaski said. “An introduction can qualify the U.S. company and allay any fears a foreign company might have in doing business with a U.S. company,” he added.

Optimum Spring Solutions also alleviates fears by thoroughly addressing the needs of its existing customers, so that they will recommend them to others. Trust in their expertise is crucial for referrals.

 “We learned from Andrea’s family how to listen to what the customer needs and to provide the optimum solution for their project,” Fortini said.

With training in computers and industrial trades prior to starting the company, Fortini has evolved into a materials specialist who can recommend the proper springs to meet a customer’s technical specifications. He does so by evaluating variables such as size, durability, heat resistance, and corrosiveness.

Fortini no longer does all of the manufacturing himself. He has trained an employee to run the machinery and is teaching an intern to do so as well. With four workers total, including themselves, Fortini and De Palma now focus on developing the infrastructure and resources that the company needs to grow.

Fortini focuses on spring design, customer service, and technical matters. De Palma oversees purchasing, billing and shipping. They share responsibilities for sales.

The couple culls from their technology backgrounds, emphasizing search engine optimization for lead generation.  “Our storefront is our website,” said De Palma, noting that the company services other manufacturers outside of the area, not end users.

De Palma and Fortini want to expand steadily, preferring to emphasize service and technical support. “You can grow without taking care of your customer’s needs but it will lead to failure,” De Palma said.

“Our goal is to keep growing at a rate that enables us to maintain a personalized level of service and excellent technical support to our customers.”

They maintain quality and service by collaborating closely with one another, meeting at least weekly to focus on operations and at least monthly to review strategy and plans. They also maintain fluid and constant communication with her family and advisors such as Sacia, Bernaski and Mike Zollar of SCORE, learning much from each group.

 “It’s a lot of work,” Fortini said. “But you can control the risk with proper planning and by building a close network of people and resources who can assist you.

“Without that we would not have succeeded.”

Jim Molis is a contributing editor to Advantage: The Resource for Small Business. He can be reached at jim@creatwoodpr.com.

SIDEBAR

How to export successfully

Optimum Spring Solutions has succeeded by committing to exporting.

“Some companies consider exporting a secondary revenue stream,” said Larry Bernaski, regional manager of international trade development and Canada specialist for Enterprise Florida. “Successful ones see it as a primary revenue stream.”

Enterprise Florida has helped Optimum Spring Solutions and other companies cultivate business by developing relationships internationally. Optimum Spring Solutions owners Andrea De Palma and Marco Fortini, both of whom are from Argentina, immediately grasped the importance of doing so, Bernaski said.

“Generally speaking, owners of U.S. companies who are from different countries have different mindsets when it comes to exporting,” Bernaski said. “These kinds of companies are more predisposed to exporting because their business experience was formed in countries with economies that relied more heavily on exporting,” Bernaski added. “Because exporting is a more common practice outside of the U.S., it follows that Andrea and Marco, who grew up in Argentina, would feel more comfortable exporting.”

Successful exporters do the following, Bernaski said.

• Have a “go-to person” through whom all exporting matters flow. They champion exporting and ensure that it does not become of secondary importance.

• Handle inquiries from abroad quickly. “Foreign companies often like to deal with U.S. companies who take their questions to the go-to person and get an answer.”

• Get help. They use resources available through networking and other means.

• Know the market. “Learn everything you can from the small transactions then start tackling the larger transactions.”

• Commit to the export process. “Commitment is just as important as size, perhaps more important than size.”

Optimum Spring Solutions exemplifies these traits, Bernaski said. He has enjoyed watching the company grow, generate jobs, and support the local economy.

“That’s the great part about this job, to see companies like Optimum Spring Solutions doing what they’re doing.”

Planning for success

Planning winds through everything that Optimum Spring Solutions does. From crafting their initial business plan to their monthly strategy sessions, Andrea De Palma and Marco Fortini have identified the proper path through planning.

“You need to put yourself in that moment in the future and see what has to take place for that to be feasible,” Fortini said.

Before starting their company, the couple spent six months compiling a 75-page business plan, including their competitive analysis, goals, marketing strategies, financials, and other key areas. They learned how to use Census Bureau data and other resources to compile relevant information. “We went to every kind of seminar you can imagine,” De Palma said.

The couple also worked closely with SCORE, a nonprofit advisory service for small-business owners.

“Optimum Springs Solutions is an example of a company where the owners are very receptive to learning,” SCORE Counselor Mike Zollar said. “That’s very helpful.”

Fortini and De Palma would listen, learn, revise, and implement their plan, then come back for more advice, Zollar said. Not all business owners are so thorough in their planning.

“One of the biggest problems we find with many small businesses is people are very passionate about their ideas and overlook some of the basics like cash flow,” Zollar said.  “They need to be open to learning that kind of thing.”

Zollar worked closely with Fortini on how to develop relationships with new clients and how to handle new business. He also helped them adjust their quotation systems and financial projections to handle growth.

De Palma and Fortini review and revise their plans often, breaking down each year, month, week, day, and seemingly hour. The bigger the challenge, the more they plan.

“At the most stressful moments, the stress was relieved with planning,” Fortini said.

They plan to keep planning—and to keep growing.

How an advisory board can improve your business

By Dawn Josephson

Whether you’re a “solopreneur” or employer of hundreds of people, at some point every entrepreneur reaches a startling conclusion: “I don’t know everything, and I need help making decisions.”

Yes, it’s a tough pill to swallow. But the sooner a business owner reaches out and accepts key insights from others, the more successful the business will be.

This realization often marks the pivotal moment when many entrepreneurs decide to form an advisory board. While many business owners interchange the terms “advisory board” and “board of directors,” they are actually two very different things.

Just as the name implies, an advisory board simply offers advice to the business owner.

Sandy Bartow

Sandy Bartow, vice president of the Jacksonville Regional Chamber of Commerce’s Small Business Division, explains, “An advisory board is a non-fiduciary board of advisors who assist in a business’s growth and planning. This group provides a 360 degree view of differing viewpoints and combined expertise related to an issue, a challenge, or planning.”

In contrast, a board of directors is a body of elected or appointed members who jointly oversee the activities of the company. They govern the organization by establishing broad policies and objectives; select, appoint, support, and review the performance of the CEO; ensure the availability of adequate financial resources; approve annual budgets; and are held accountable to the stakeholders for the organization’s performance.

Knowing this, an advisory board is often the better choice for a for-profit small business. (Non-profits of any size typically must have a board of directors.)

A fresh perspective

Having an outside perspective for your business sounds good in theory, but is it always good in practice? Some local business owners certainly think so.

Clint Drawdy

Clint Drawdy

and Chad Perse started Hire Methods, a professional staffing company, in 2004. A few months into their new venture, they realized they needed some guidance and formed a six-person advisory board. Today, they couldn’t imagine running their business without one.

“In the beginning, our company was growing very fast— perhaps too fast,” explains Drawdy. “Our advisory board helped us navigate that period and work with banks effectively so we could get the capital we needed to keep growing the right way.”

Chad Perce

Since then, they’ve relied on their advisory board for a number of specific issues, including growth, financing, marketing, and overall strategy. “Sometimes the board members act as a devil’s advocate, and other times they offer experiential learning,” says Drawdy. “Both are important. The key for me is not leading my advisors to the answer I want. I’ve learned that it’s best to just state the problem and give some company background, but not to paint a scenario in such a way that I inadvertently force them to a certain conclusion. That’s when I get the best advice.”

Nathn Fabrick

Nathan Fabrick

, president of 110%, an athletic apparel company, was fortunate in that when he purchased the company in 2009, an eight-member advisory board was already in place. Since day one, he’s leaned on them to help with the business’s strategy.

“Getting to use other people’s experience, wisdom, and guidance helps you stay on track,” he says. “When you run a small business, it’s easy to slide into rabbit holes and start working on things that might be good for today, but not good for the business’s long-term growth. It’s helpful to have outsiders ask you questions, make sure you build systems, and hold you accountable.”

Both Drawdy and Fabrick agree that their advisory boards have positively impacted their company’s growth. They also encourage all business owners to form their own advisory board as soon as possible.

Tips from the pros

If you think an advisory board sounds like a good option but you’re unsure how to form one, here are some tips to get you started.

• Pick the right people. Cathy Hagan, area director for the UNF Small Business

Therefore, she advises that you seek out professionals from a variety of backgrounds, such as finance, marketing, and human resources. Reach out to those people, even if you don’t personally know them, and ask if they’d be on your advisory board. You’ll be surprised how many people say “yes.”

• Establish a meeting schedule. According to Bartow, the board’s meeting schedule will depend on the stage or current activity of the business. If something intense is going on, such as an acquisition, the advisory board may meet weekly. However, for routine matters, bi-monthly or quarterly will often suffice. Both Drawdy and Fabrick meet with their advisory boards on a quarterly basis.

• Enforce term limits. While you could have the same advisory board members forever, you also want the ability to dismiss one and bring in someone new. “As the business grows, the owner’s needs of expertise will change,” says Hagan. “You want your board to reflect the advice you need and the stage you’re in. So bring board members in with a one or two year term, with an option to renew. That way there’s no hard feelings should you want to get rid of someone.”

• Decide compensation. While many business owners pay for food and other meeting expenses for board members, being on an advisory board is typically an unpaid position. “Experts agree to do it because they like to give back,” says Bartow. “They want to support a business owner and help them grow their company.”

Additionally, Drawdy reveals that the meetings aren’t always about him. “Sometimes the issue we’re discussing also pertains to a board member’s business,” he says. “My board members often say they leave the meetings having learned just as much from the experience.”  

No matter how helpful or insightful an advisory board may be, the final decisions the business owner makes are solely their own. “At the end of the day, you have to go with your gut,” says Fabrick. “No one knows your business better than you. So listen to your advisors and learn from them…but take everything with a grain of salt.”

Dawn Josephson is a contributing editor to Advantage. She can be reached at dawn@masterwritingcoach.com.

By Jim Molis   

Buying a company is like finding a spouse. You must know what you’re looking for, recognize when you’ve found it, and commit to making it work.

Mergers and acquisitions can be good ways to grow your business, but you must be proactive in your approach and deliberate in your execution. “Nothing is a good deal if you don’t need it,” said Don Wiggins, president of local investment banking firm Heritage Capital Group. “It’s what you need. It’s what fits.”

Growing by merger or acquisition should not be done hastily. It requires diligently following four steps:

• Define your strategy,

• Make the approach,

• Negotiate the deal, and

• Execute the plan.

Define your strategy

Start by determining your reasons for expanding. Are you trying to grow geographically? Or gain more local market share? Remove competition? Add new services?

Companies often consider mergers and acquisitions if growth plateaus, said Joe Palermo, a partner in B2B CFO. You can continue to grow organically but you will pick up market share faster by buying a competitor, he said.

Identify the criteria for the company you want to pursue, including its annual revenue, number of employees, and market share, suggested Palermo. Consider your top three competitors based upon your knowledge of your industry, their performances, your previous dealings with them, and their reputation. Buying or merging with a competitor typically brings synergies such as the ability to consolidate operations, streamline management, improve purchasing power and leverage relationships.

It also may be easier to acquire a competitor’s customers by buying the company than trying to lure them individually, particularly if they are loyal to the other business, said Cal Heseman, a business broker with Transworld Business Brokers.

You may have to review several companies to find one that will work for you, Wiggins said. Be methodical in your process, and proactive rather than reactive.

“You want to make sure you’re prepared to go to market on your terms, not someone else’s,” Wiggins added.

Make the approach

Once you have honed in on some target companies, reach out to them discreetly. You can use an intermediary like Wiggins or Heseman, who protect your identity early in the process. Or, you can approach them informally.

Palermo often invites a potential seller to lunch or dinner. Business owners who are proud of their companies often enjoy discussing common trends and issues over a meal. During the meal, Palermo may ask, “In a perfect world how do you see your company moving forward?”

The question often prompts the business owner to consider scenarios he or she may not have otherwise. “A lot of people who own companies don’t think about doing anything until they’re approached,” Palermo said. “Everyone is so busy running their company they don’t plan ahead for this.”

Palermo lets the conversation flow naturally, without pushing. He lets business owners identify opportunities such as joint ventures on their own.

Depending upon the business owner’s age, Palermo also may ask about retirement plans. Specifically, he will ask what the owner intends to do with the company, the tax ramifications of the plan, and how the owner would invest any proceeds if the business were sold.

His goal in asking these questions is to get the business owner thinking of selling so that the possibility could be explored further in additional meetings.

Negotiate the deal

Once you have an interested seller, start drafting the parameters of a deal. A merger would combine the two companies into one, while an acquisition would be a purchase of one business by the other.

“A lot of companies out there are on the ropes,” Heseman said. “If their numbers are still the same as they were a few years ago, you can pick them up a little cheaper.” Seller financing often is available as well, he said. “Just because the banks aren’t financing doesn’t mean we aren’t going to get a deal done.”

Heseman cited a recent deal in which the buyer paid 50% of the purchase price in cash. The seller financed 10%, and the remaining 40% will be earned out as a certain percentage of revenue over 24 months. “We have to be a little more creative in how we get deals done, but they’re getting done,” Heseman said.

If you buy a company, consider whether you will purchase just the assets or if you will buy the stock, which would also transfer liabilities, Palermo said. Review the company’s financials closely, particularly the number of customers and how much they generate. “If the revenue’s not there, no matter what you do you’re going to have a problem,” he said.

In addition to ensuring all of the numbers are accurate, Palermo asks business owners if they run any personal expenses through the company. If they do, there could be additional savings by eliminating those expenses through the deal. He also will ask for financial projections.

Due diligence is taking longer than in the past because buyers don’t want to make mistakes, Wiggins said. He recommends reviewing a company’s operations, financials, legal compliance, and (if applicable) technology.

Envision how you will combine the companies, and what the resulting business will look like, Palermo said.

Execute your plan

Know where your synergies and savings will come from before completing the deal, Palermo said. Possible synergies including getting better pricing on benefits, services, or materials through increased purchasing power. You also may increase sales. “You have to be careful cutting the marketing and sales people because they have those relationships,” said Palermo.

You can often save money by consolidating your back office operations, combining facilities and trimming payroll. Identify the savings in advance and reap them according to your plan.

If you plan to combine accounting operations in 45 days but take longer, then you push the savings out further, affecting other parts of your plan, Palermo said. “If you say you want to implement these types of changes you have to stay on the game plan.”

Watch your numbers carefully as you move the combined company ahead, Heseman emphasized. “The person who buys a business and learns to focus on revenue growth while closely managing expenses is going to be well positioned when the economy improves.”

Jim Molis is a contributing editor to Advantage: The Resource for Small Business. He can be contacted at jim@creatwoodpr.com.

SIDEBAR

Acquisitions from a buyer’s point of view

Venture capitalists and the companies they support often begin with the end in mind.

Investors favor companies that could eventually be sold, thereby generating returns commensurate with a high-risk investment, said Al Rossiter, president of Springboard Capital Management, an equity investment fund specializing in early-stage venture investments.

As they consider each investment opportunity, Rossiter and fellow investors evaluate a company’s potential appeal to financial or strategic buyers. Financial buyers acquire companies for cash flow or other strong fundamentals, without intending to operate the business. Strategic buyers acquire and operate companies that align with their plans for growth.

Rossiter looks for companies with a “sustaining competitive advantage” that would appeal to strategic buyers. Examples would include a proprietary technology or geographic market share that would be more difficult or expensive for an acquiring company to develop independently. “There needs to be something of distinct value there,” Rossiter said.

If a company ultimately seeks to be acquired, you can position your company for a potential sale to a strategic buyer from the start. “You have to understand what the value of your company represents to the potential acquirer,” Rossiter said. For example, if you produce medical equipment that a larger company may eventually want to manufacture at its own facilities then don’t build your own plants. The acquirer would not pay for your facilities, only the core technology.

“Understanding the strategic benefit that it brings to an acquirer allows you to develop the business plan that enhances that strategic value without adding baggage,” Rossiter said. “You’re developing the company to expand or enhance those attributes that the acquirer would desire.”

If you plan to sell to a competitor, get attention by building a strong customer base. “Generally you need some sense of scale, some operating track record to even become noticed within a market,” Rossiter said. Having a full understanding of the desired outcome is key to the business-planning process.

Patience is a virtue and knowledge is essential.  

By Erica Courtney

We have seen the statistics. The federal government spends more than $550 billion on goods and services annually. That is $10,000 per second, every minute of every day. This is normal spending and does not even include the $787 billion recovery package passed by Congress last year to jump-start the economy. In addition, there are millions being spent on disaster recovery/natural disaster events.

Have you thought about penetrating the government marketplace? Perhaps it is time to stop thinking about it and do it. While you sit and wait, your competition is most likely figuring out what they need to do to be successful in this space.

Typically, companies fall into one of three categories:

• Those that have been writing proposals for months or even years, spending countless resources with no awards granted. They are just about to throw in the towel and can’t understand why they are not successful.
• Those that have never attempted to enter the space and have no idea where to begin.
• Those that need a bit of direction but not full positioning.

The fear of the unknown is scary but as with anything in life, you just need to know how to play the game. It is not that hard if you have the right tools in place along with the proper know-how. Take the proper steps in the beginning and you’ll be doing business with the federal government before you know it.

1. Get registered. As required by law, at a minimum, your firm must be registered in a few systems. First, you should have a D-U-N-S number, assigned by Dun & Bradstreet at no charge to federal contractors. (Go to http://fedgov.dnb.com/webform for information on obtaining the nine-digit number.) Then register in Central Contracting Registration (CCR) at https://www.bpn.gov/ccr/default.aspx.

You will be asked basic information about your company such as points of contact, size, and products and services offered. If you are a small business, you will also register with the Small Business Administration. When your CCR is complete, you will see a prompt to register your information in their system.

Next register at Online Representations and Certifications Applications (ORCA) at https://orca.bpn.gov/. Because this is a regulatory site, completing the form can be complicated. Set aside some time to complete your entry and ask for help if needed. CCS has a great resource page at www.courtneysolutions.com/resources.html for more information related to company size standards, codes, regulations, and opportunities.

2. Differentiate your company. Once your company is registered with CCR, SBA, and ORCA, you can begin scrolling through Web sites such as www.FedBizOpps.gov looking for open market solicitations. Of course, so are millions of other companies, so you need to be one of a handful that stand out.

Being classified as small or disadvantaged is not enough, because there are millions of small businesses competing for the same jobs. More contracts do go to small businesses than in the past, but the majority of money goes toward large businesses that can perform many tasks and manage the overall projects. There is room for both. Search the Federal Procurement Data System (www.fpds.gov/fpdsng_cms/) to see exactly how federal funds are spent.

So how do you differentiate your firm from others? Here are some questions you should ask yourself:

• Do you have a contracting mechanism in place to make it easy for federal, state, and local buyers to do business with you?
• Have you been pre-screened for compliance and competency?
• Have your prices been deemed fair and reasonable for the taxpayer? If yes, then you save the buyer vast amounts of time spent to do background checks and manage risk.
• Do you have a fixed-price contract? (If you do have a long-term fixed price contract in place, buyers using stimulus funds must buy from you over others as stipulated by Congress in H.R. 1 ARRA Section 1554.)

3. Get a fixed-price contract. Across the board, fixed-price contracts are used most often by all major federal organizations when acquiring goods and services. But it is not easy to get one. In fact, more than 90% of all applications get rejected immediately, spawning a whole industry of consultants to help companies work through the process

General Services Administration (GSA) is the federal government’s largest acquisition arm and owns/leases more federal buildings than any other entity. You must apply through the GSA to secure a fixed-price contract, but the process can take from six months to more than a year with a consultant’s help. Without a consultant, the process is virtually unmanageable for the average business owner who does not have the time or resources to devote to the tedious process.

However, when choosing a consultant to outsource this function, make sure you hire a firm that not only gives you the tools to be effective in this marketplace but the know-how. You may have a contract, but if you do not know what to do with it, you have just wasted a lot of money. (For more information on GSA go to www.gsa.gov. Click on “For businesses,” then “Getting on schedule.”)

Tackling the government market can be daunting but the rewards are well worth it if you are willing to put some effort into it. Get good guidance from a reputable consultant and have a clear plan for what you sell and to whom you intend to sell. Understand that nothing happens quickly in the government.

Once you have your first shot at government work, make it count and do the best you can. Once that door is open others will soon follow. Be persistent and smart about approaching this market. There is no reason you can’t succeed and grow your business exponentially.

Erica Courtney

Erica Courtney is the president of Courtney Consulting Solutions,

www.courtneysolutions.com. While serving in the U.S. Army, she was responsible for buying millions of dollars worth of goods and services to support some of the most highly deployed units in the country. To contact her, call 904-371-1938 or visit her Web site at www.courtneysolutions.com.

By Michael R. Clark

The need for managers and supervisors to be able to coach employees effectively is greater today than ever before—for several reasons. Consider, for example:

• Employees in today’s workplaces are being asked “to do more with less.” This means companies are demanding the successful completion of more and different tasks than required in the recent past. Employees need to be taught how to do them.

• Many job applicants lack the literacy and/or math skills necessary for the jobs for which they apply. As a result many teaching-learning moments will occur between the supervisor and employee for acceptable performance to occur.

• A number of research findings show that approximately seven out of ten employees in the 18 to 35 age group believe there are no absolute ethical standards. In their view, honesty or honest actions depend on convenience. This either requires closer supervision or coaching employees to higher ethical standards.

Fortunately there are “tried and true” coaching strategies that managers and supervisors can use to improve the performance of their employees, both quantitatively and qualitatively. If you apply the following coaching principles, you will motivate and modify your employees’ performance towards much higher levels.

1. Expect employees to be successful. There exists a body of research that suggests that employees in general will perform according to expectations. As a supervisor, if you think certain employees will be successful, then they probably will be. But, if you think employees will not succeed, then they probably won’t. The reasons for this generally exist within the relationship between the employee and supervisor.

2. Assess current performance first. You must know the specific levels at which employees are performing, before you can coach effectively. You can usually determine the level through a combination of observation, performance feedback conversations, and normal monitoring of work. A written performance improvement plan is recommended for all employees.

3. Know how to address nonperformance issues. As a supervisor, you have three basic approaches to handle employee nonperformance issues: Avoid the issue altogether, which usually doesn’t solve anything; threaten the employee with a negative sanction, which may stop or fix the performance issue in the short run but only creates other problems between the supervisor and the employee; or collaborate with the employee to fix the issue. Collaboration is the preferred method.

4. Clarify expectations. Employees need to know what success means, as well as what it means to perform at the highest level, the lowest level, and everywhere in between. Show your employees what the expectations are for each level, and then let employees choose to perform at a given level for their own reasons. (Of course, each level of performance comes with its own rewards or consequences.)

5. Check for understanding. Do not assume that employees understand verbal communications, even when they say, “I don’t have any questions.” People differ in many ways and have different life experiences, which affect understanding. Because of these differences, we make mistakes when we communicate with each another. The only way to account for differences is to make sure the receiver (the employee) of a message understands the message, so the sender (the supervisor) must check the receiver’s understanding by asking a few questions about the message.

6. Use the 2+2 strategy. This amounts to talking to employees about their individual performance for at least a couple of minutes every couple of weeks. Supervisors talk to employees about work all the time. They don’t, however, usually talk much about the employee’s individual performance except when an issue arises, or during the annual performance evaluation process. Make it a point to  talk with employees about their performance at a minimum a couple of minutes every couple of weeks.

7. Reward good behavior. Use positive consequences (rewards) for desirable behavior (performance). Identify ways to reward both employee performance and effort. At a minimum, use verbal praise when it makes sense. One way to determine how to reward employees is to actually ask them what would be rewarding to them.

8. Sanction nonperformance. Nonperformance is undesirable behavior. Use negative consequences to change undesirable behavior. A technique called “corrective feedback” can be used to deal with any type of performance issue.

9. Give specific, timely feedback to employees. Give performance feedback to employees, on a consistent basis. Also, it is acceptable to give general feedback, such as, “That was an excellent effort;” however, the feedback is more powerful when it is specific. For example, say, “That was an excellent effort. I especially liked the way you showed empathy to the customer, and then asked how you could help and didn’t pass the person to someone else.”

10. Use the “pull style” coaching as much as possible. Telling employees what to do (“push style”), is easier than pulling the solution out of them through questioning and guidance (“pull style”). But, as a result of using the “pull style,” employees are more likely to be accountable and will also grow much more because they are learning to think on their feet and solve their own problems.

This list of 10 coaching principles is not exhaustive, but if you use them consistently, you will find employee satisfaction and accompanying performance levels will rise to higher levels—which is the point of coaching.

Michael Clark

Michael Clark is a senior consultant/trainer for the Division of Continuing Education, University of North Florida, where he specializes in developing and conducting management/supervision training programs.  He is also owner of MRC Consulting, which specializes in the creation and implementation of both organizational and management/supervision development strategies. He can be contacted by e-mail (mrcconsulting@earthlink.net) or by phone, either 904-620-4200, or 850-545-1451.

SIDEBAR

Want more information on coaching?

The tips in this article came from these reference materials, where you can find more ideas on coaching your employees:

• Why Employees Don’t Do What They Are Supposed to Do, Ferdinand Fournies, McGraw-Hill, 1999.

• Coaching for Improved Work Performance, Ferdinand Fournies, McGraw-Hill, 2000.

Want more information on getting more from your employees? Go to http://advantagebizmag.com/archives/1556.

If you were to pass by the business office of Tony Caribaltes, you shouldn’t be surprised to hear a sharp bark or a tiny meow escape from behind the closed door. Caribaltes is an animal lover who sometimes harbors a dog or (more infrequently, because of allergies) a cat in his office.

As a member of the board of directors of the Friends of Jacksonville Animals, Inc. (FOJA, www.friendsofjacksonvilleanimals.com), Caribaltes sometimes has a hard time saying “no” when an animal needs fostering, even when the animal turns out to be ungrateful. “I once fostered a cat that was missing part of its jaw and was in bad shape. But, he ended up running away from me! He was about three years old, and I guess he liked his freedom more than getting all the food he could eat and having a cool place to sleep.”

More frequently, Caribaltes will take in a dog as part of the fostering program. “The Animal Care and Protective Services needs people to foster animals until they are healthy enough for adoption,” he explains. “I am getting a dog in the next day or two that has a cold—an upper respiratory infection. If he isn’t fostered and brought back to health, he would be put down at the [Animal Care and Protective Services] shelter. Unfortunately, the shelter is not no-kill. I’ll keep the dog and administer medications for about 10 days, then he’ll go back on the adoption block. That’s how we save a lot of animals.”

FOJA’s mission is to save the animals at the shelter, which receives about 2,000 animals a month, according to Caribaltes, and many of them are euthanized. Even those in good health only have 30 days to be adopted before they are put down.“Those numbers are pretty hard to take, especially when you see a perfectly healthy dog or cat that just needs a break and a home,” he says.

He says sick animals are tagged to be put down. But so are ones tagged as aggressive or hyperactive because of too much barking. “But barking doesn’t mean the dog is aggressive,” he says. “For example, I kept Sasha, a 6 year old mixed breed, for about a week. She was so well house-trained that she would not use the cage for her toilet, so she barked to go out. But, because the shelter is understaffed, the dogs don’t get walked often enough, so Sasha got constipated and was in pain, which caused her to bark even more. The shelter labeled her aggressive, but all she needed was to be relieved of her constipation. A FOJA member got her to the vet who fixed the problem, and then she recuperated in my office. She was adopted.”

Caribaltes admits fostering can be emotionally difficult, so instead of being a constant caregiver, he supports FOJA more actively in another way— by applying his skills, knowledge, and experience as a sales and marketing professional to FOJA fund raising and adoption events.

During business hours, he owns Caribaltes Consulting LLC., a year-old business that has two divisions with five employees. The sales division is called The Best of Jacksonville (www.thebestofjacksonville.net). “We act as the sales division to local small businesses who outsource that function to us because they don’t have the time, knowledge, skills, or money to do their own sales.” The marketing division of his company does social media management, marketing campaigns, fund raising, and event planning.

“FOJA is a nonprofit, and our mission is to save as many dogs from the shelter as possible,” he says. “One way our group does this is by holding adoption events. Recently we held an event at a local business from 10 a.m. to 2 p.m. We took five dogs and three cats, and before noon, we had all five dogs adopted. We went back to the shelter and brought back some more dogs. Within the four hours, we got nine dogs adopted and one cat. We were ecstatic, because all of those dogs were going to be put down within the next couple of days.”

FOJA volunteers hold adoptions almost every weekend at the PetSmarts at the Regency and Southside for cats and sometimes for dogs, and the group puts on one or two organized events a month at other sites, such as outside of a Winn Dixie.

“We also do fund-raising events two or three times a year,” he says. “For example, the company where we adopted out nine dogs and a cat was a fund raiser. All week the employees raised money, such as through a silent auction and a bake sale. Money from those events goes toward medications, toys, food, and blankets for the animals at the shelter.”

He adds, “When FOJA celebrated its first birthday in 2009, we turned that into a fundraiser. We had a first annual reunion and invited everyone who had adopted an animal from the shelter to bring their animals and celebrate. We had vendors, a show, a live band. It was a real party atmosphere.”

Parties and events are fun, but the real joy to Caribaltes is saving a dog from destruction and gaining a friend for life. His advice: “Adopt whenever you can. If you have a choice, try to save a life. The feeling is just incredible.”

FOJA welcomes volunteers. For information on volunteering, go to www.friendsofjacksonvilleanimals.com. Tony Caribaltes, principal of Caribaltes Consulting LLC. can be reached at 904-379-9060 or through his Web site, www.caribaltesconsulting.com.

By Linda Segall    

Whenever a “big box” store—such as a Walmart, Home Depot, or Best Buy—announces its intent to come into a community, small business owners cringe. They fear the fallout of the big box presence: lost customers and revenues.

Some businesses, however, have found ways to succeed despite sitting in the shadow of these monoliths. Turner Ace Hardware is one of them.

Mike Turner, owner of two Ace franchises—one in Jacksonville Beach off A1A and J. Turner Butler Blvd. and the other on Atlantic Blvd. near Hodges—admits, however, that when Home Depot and Lowe’s entered the picture, his businesses felt the fallout. Yet, his Ace stores continue to serve their communities as they have done for more than 50 years.

As Turner describes his family’s half-century retail journey, it becomes apparent that endurance and success have resulted because Mike Turner and other Turner family members have done four things:

• Taken advantage of opportunities,

• Remained flexible,

• Differentiated their stores, and

• Delivered great customer service.

Taking advantage of opportunities

“The store started with my grandfather, A. J. Sr.,” reflects Turner. “He had been selling Fords at Lynch-Davidson Ford downtown, but he saw an opportunity to go into the hardware business for himself. He sold his house on the river by Fort Caroline Monument and built a store with an apartment above it in the Arlington area. That’s how he got started with an old-fashioned hardware store, with barrels of nuts and bolts in the aisles.”

Other opportunities, including becoming an Ace franchise in 1963, came along as the years passed and Turner’s father got into the business. Those opportunities included buying, selling, and building other stores and expanding into new business areas.

After Turner’s father got into the business, the original store was moved to a new location in Arlington. “That happened in 1972. That store is still standing; my brother owns it,” said Turner. (His brother Steve recently opened another Ace franchise in Fernandina Beach.)

Turner himself got into store management at age 20, when the family bought a store on Normandy Blvd. “It had basic hardware and a garden shop, but we sold a bit of feed and a lot of fencing, something I didn’t know much about but I learned,” he says. The Turners sold that store several years later when a retired steel executive wanted to get into the hardware business. “He lived his dream for a little while, but it got the best of him.” says Turner with a smile. “The hardware business isn’t something you retire into.”

When an outdoor nursery with 2.5 acres and a True Value store on the property came on the market, the Turner family saw a new opportunity. “We turned the store into an Ace,” relates Turner. That was our first venture into outdoor nursery. We’d had garden shops on the sides of our stores, but never a true nursery. That put us on the map in nursery in a big way.”

Opportunity knocked again in 1995 when property became available in Jacksonville Beach. Turner’s father bought five acres and built the biggest store building codes would allow—50,000 square feet with a garden shop. In 1999 the family did a repeat by acquiring property at Atlantic and Hodges and duplicated the Beach’s store on it. “We didn’t know exactly how we would use such a big building,” said Turner. “But we didn’t want to make the mistake we made earlier at our Regency [Atlantic and Southside] store, which had been on a good corner. It originally was a small building, and over the years we kept adding onto that store so we could offer floral and a garden center. The old building became a conglomeration that didn’t look very appealing. We didn’t want to have the same thing happen…adding on like that. So we built big in Jacksonville Beach and on Atlantic and Hodges.”

Remaining flexible

Flexibility is the ability to bend. In retail, that means being able flex with the times and economic conditions.

“One of the best decisions we made was to become an Ace franchisee,” says Turner. “Ace allows you a lot of latitude. You are not required to buy anything from them, although it behooves you to buy everything that Ace offers because they have the buying power, since they have 5,000 stores. But the good thing is that Ace encourages you to bring in other things to serve your neighborhood.”

Not only can the store add items, it can also subtract items, too, something Turner has been willing to do to remain competitive, because of the economy as well as because of the proximity of Home Depot, Lowe’s, and even Super Walmart. “You have to watch your inventory closely,” he says. “If you see that something that turned over four or five times a year is now only turning once a year, you have to reduce the inventory or eliminate the item. You have to know what’s making you money and what’s not.”

Turner has also been willing to recognize when it is time to “fold his hand.” The family had a store in the Regency area (Southside and Atlantic) for a number of years. But when Home Depot came in with a new building, the family recognized the rambling old store had seen its better days. The location was prime, however, and they sold the building and real estate to buy property and build a new store at Atlantic and Hodges.

Similarly, as the economy turned south and Lowe’s joined in the big box battle on Atlantic Blvd. near his store on Atlantic and Hodges, Turner assessed the store’s strengths, trimmed it down to an appropriate size, and leased 30,000 of its 50,000 square feet to Lifestyle Family Fitness. Owning the property instead of renting gave him options, he says. Likewise, owning the Arlington building and land behind it gave the Turners another option for income: They put up a stretch of warehouses behind the store, which have provided a “nice monthly income.”

Differentiating

Although Home Depot and Lowe’s attract some of the same customers as Ace, in some respects they are not direct competitors, says Turner. That’s because Turner has successfully differentiated his stores from all the others.

“We don’t carry lumber; never have,” he says. “And Home Depot caters to commercial trade—maybe 60% or more of its sales are to contractors. We only have about 10% commercial.”

Turner takes full advantage of Ace’s corporate policy that lets individual stores carry items specific to its constituency. He watches trends and seeks out quality products he thinks will sell. His stores carry high end patio furniture, as well as spas and outdoor kitchens. Home Depot carries those items, too, but not the same quality. “We go to furniture shows in Chicago, the Merchandise Mart in Atlanta, and grill shows in Orlando to find higher end patio furniture,” he says. “When customers buy from us, they can get custom-ordered fabrics. They can’t do that at the big boxes. Customers get what’s on the floor. They have no choice, something we give.”

Customer service

Another way in which Turner differentiates his businesses from the big boxes is through excellence in customer service. “You try to give what they don’t—customer service,” says Turner. “You make sure when people come in, they are greeted and let them know you are happy they are there.”

To provide that high level of customer service, Turner prides himself on hiring mostly full-time employees. “We do have some part-timers,” he says, “but we try to keep as many full-time people as we can. We feel we get a more loyal person that way. If someone is here making a living, they are more apt to give it their all instead of someone who is here temporarily. And it’s expensive to train new people, so we don’t want turnover.”

Turnover has not been a problem, especially in the management ranks. His managers have been with him a long time—20 years in Beach’s store, 10 in the other. “They are familiar with the products and make sure employees get trained,” says Turner. That training is important, because customers rely on Ace employees for advice on not only what they need to buy but how to use various products. “If the person who’s waiting on you can’t answer your question, there will be someone in the store who can,” promises Turner.

Ace offers training programs, but Turner makes sure his employees get training on products local customers want, such as shallow-well pumps. He says a vendor put together a training program on pumps for his employees. It was so popular that it had to be repeated.

 “Training is constant,” he says. And it is through training that he makes sure his stores reflect Ace’s slogan—“the helpful hardware place.”. “If anything,” he says, “that’s what makes us different from Home Depot.”

Most customers would agree.

Linda Segall is editor of Advantage: The Resource for Small Business. She can be reached at Linda@advantagebizmag.com or 904-677-2463.

SIDEBAR 1

Competition among Ace franchises?

Turner Ace Hardware is a franchise operation, operating in two locations: 13164 Atlantic Boulevard Jacksonville, and 784 Marsh Landing Parkway, Jacksonville Beach.

A few miles down the road from the JAX Beach store is Proctor Ace Hardware in Ponte Vedra. And Steve Turner, Mike’s brother, operates an Ace store on Arlington Rd., as well as one in Fernandina Beach. There are several other Ace stores within the Jacksonville area.

Do they compete with one another?

“Not at all,” answers Turner. “Ace is good about not saturating the market with franchises. The stores are far enough away that we do not compete. Customers go to store closest to them. Very few will go out of their way to go to another store, unless the one they visited doesn’t have what they need. We actually advertise together because it makes good business sense.”

SIDEBAR 2

How Turner Ace Hardware endures

Turner Ace Hardware has survived numerous economic recessions as well as the onslaught on big box stores. Its endurance is directly related to the Turner family’s willingness and ability to:

• Take advantage of opportunities,

• Be flexible;

• Differentiate; and

• Provide top quality customer service.

By Dawn Josephson    

 To say that technology has transformed the way we work over the years is definitely an understatement. From faxes, e-mail, and the Internet to smart devices, cloud computing, and social media, technology has touched virtually every business, both large and small. And despite the stereotype of hip, young entrepreneurs being the only people to embrace today’s technology, the fact is that even the older baby boomers are seeing the value of technology and are jumping on the bandwagon so they don’t get left behind.

Randy Elias

Randy Elias, “Guru”/Owner of TechSync, Inc. (www.techsyncpros.com), a full-service technology solutions provider, has helped business owners as old as 70 implement new technologies into their organizations. “Five years ago I would have said that the older generation still downplayed the role of technology and how it could automate their business,” says Elias. “But today, they realize they need technology if they want to stay competitive.”

Part of the competitive advantage today’s technology offers is the ability to be mobile and work remotely. “Many companies are cutting down on the number of physical employees in the office and letting them work from home as long as they’re getting the job done,” explains Elias. “In my own company, I have three employees, but none of them work in my office. We’re scattered across Florida and stay connected with various online collaboration tools.”

Such tools, including Google Docs and Microsoft Office Live Workspace, enable two or more people to work in a document simultaneously and see each other’s edits in real time. This means co-workers can collaborate on projects at the same time without having to be at the same desk or even in the same state. Called “cloud” technology, these collaboration tools are Internet-based computing whereby shared resources, software, and information are provided to computers and other devices on demand. Think of it as working on a virtual server over the Internet.

A new sales paradigm

Ben McDonald, CEO/Owner of Londonberry, LLC (www.londonberry.com), a company that

Ben McDonald

offers strategic technology advice, says that online collaboration tools and video conferencing have completely changed the sales process in many businesses. “The old mantra used to be, ‘If you’re a salesperson and you’re in your office, you’re not doing your job,’” says McDonald. “That’s not the case anymore. Salespeople can do deals over Twitter, direct messaging, video conferencing, Web-based meetings, e-mail…the possibilities are endless.”

One tool that McDonald sees as revolutionizing the sales process is Skype, a software that enables free video and voice calls, as well as the ability to send instant messages and share files with other Skype users. “With Skype, you can show people what you’re talking about rather than just try to explain it verbally,” he says. “You can also create a much tighter bond with someone because you get to see them, not just hear their voice.”

He admits that video conferencing and collaboration tools such as Skype are not a substitute for face-to-face communication; however, they are much more intimate than a phone call. And when it comes to smaller deals or creating the first part of the relationship, you can get much further with video technology than you can with a phone call. “With companies having to trim expenses, Skype is a great alternative to having salespeople travel to a prospect’s or client’s location,” says McDonald.

Effective advertising options

Henry Ford once said, “Half of all advertising is a waste of money; we just don’t know which half.” Today, technology is taking care of that dilemma too.

Les Hill

“In the past, people would build ads without the expectation of getting feedback,” says Les Hill, software developer with Hashrocket (www.hashrocket.com), a Web design and development shop. “Now with the technology of Facebook fan pages, Twitter, and other online advertising outlets, companies can target their advertising and track what the public thinks of their company, products, or services.”

Hill cites an example of a local restaurant tweeting their daily specials each morning. “This is something very simple and that doesn’t cost anything,” he says. “Yet it’s something that enhances the business and the customer experience.”

Additionally, companies can do a Facebook ad, which is more targeted than a typical pay-per-click ad. “This kind of advertising is not the realm of big corporate giants,” explains Hill. “It’s designed for small to medium sized businesses. You can create a pay-per-click Facebook ad that’s specific, such as people in Jacksonville who like pizza. You can even limit who sees the ad by age, gender, education level, and more. There’s a rich demographic targeting scheme that’s available to business owners on Facebook. So it’s no longer mass marketing; it’s now about niche marketing…all thanks to technology.”

Future trends

The one thing we know for sure about technology is that it will continue to evolve. Things that we can’t live without today will become obsolete tomorrow. Elias predicts that the fax machine will one day be obsolete, as will desktop computers. “We’re selling more laptops and mobility devices these days,” he says. “Even the new iPads have enough functionality for the day-to-day business tasks. And as they evolve, they’ll be able to do more.”

McDonald says we’ll also see rise to some new technology-oriented industries, such as technology consulting. “Tomorrow’s consulting services will cater to teaching people how to get up to speed quickly on a certain technology,” says McDonald. “Business owners will see it as more cost-effective than having their employees try to learn the technology on their own.”

But to get a true sense of what will be hot in the business sector tomorrow, Hill suggests that people look to what is popular in the consumer market today. “Technology tends to start in the consumer sector and then migrates to business use,” he says. “AOL came out as personal e-mail accounts, and Facebook started as a way for college graduates to keep in touch. So look at what’s popular among consumers and then start planning for it to extend to the business world.”

The good news is that most of the popular technology tools for business are free or very low cost. Therefore, there’s no reason not to go high-tech. “Remember that change is always good,” says Elias. “If you want a successful business for the long term, you have to embrace change, whether it’s a change in your staffing or your technology.”

Dawn Josephson is a contributing editor to Advantage: The Resource for Small Business. She can be reached at dawn@masterwritingcoach.com.

 SIDEBAR

Check out these free tech tools

Although name brand productivity software titles often cost hundreds of dollars per license, you can find some bargains in Cyberspace that will up your output. And some of those bargains are actually free (at least for a trial period). Check these out:

Online collaboration:

• Google Docs, www.docs.google.com. Free online document collaboration.

• Basecamp, www.basecamp.com. Free trial for online project management software.

• Project2Manage, www.project2manage.com. Free (with limited options) project management software.

• Office Live Workspace, www.workspace.officelive.com. Free collaborative projective management workspace.

Videoconferencing:

• Skype, www.skype.com. Free phone calls and videoconferencing to other Skype members.

• ooVoo, www.oovoo.com/, free video chat.

• Palbee, www.palbee.com, free online service for video meetings and recording and storing your own presentations online.

Social media:

• Facebook, www.facebook.com

• Twitter, www.twitter.com

• LinkedIn, www.linkedin.com

• Plaxo, www.plaxo.com

How to protect your work product and avoid infringing others’

By Robyn A. Friedman

As president of AXIA, a public relations firm in Jacksonville, Jason Mudd is accustomed to seeing his name on the Internet. He is often quoted as an expert on crisis communications. But

Jason Mudd

Mudd was shocked about a year ago when a Google search disclosed an article he had written—posted on the Web site of an Arizona public relations firm, was attributed to its CEO and even branded with that company’s logo.

“I was appalled to see that they took our material,” said Mudd. “It was my work without anything changed other than my name and my company.”

Unfortunately, Mudd’s experience is not unique. The Internet has made it easy to infringe the copyrights of others—and it’s not just nefarious plagiarizers who are guilty. Many Internet users think that if articles or photographs are posted on a Web site, they’re free and available for the taking.

They’re not.

Tom Saitta

“There are a lot of copyright issues related to the Internet—things that didn’t exist 25 years ago before there were Web sites,” said Tom Saitta, who heads the Intellectual Property Practice Group at Rogers Towers, a law firm in Jacksonville. “Everybody has original content they associate with their business, whether it’s brochures or Web site pages, and it’s relatively simple to maximize the copyright protection, but a lot of small business owners don’t even think about it.”

What exactly is copyright? Federal statutes afford protection to the creators of “original works of authorship,” including literary, dramatic, musical and other types of intellectual property. Use someone’s intellectual property without permission, and you’re infringing their copyright (unless you’re within the bounds of “fair use,” as defined in the statutes). It’s important to note that ideas are not protected; copyright protection attaches when the work is “fixed” in tangible form, such as when music is recorded on a CD or a book is typed up in manuscript form.

The use of a copyright symbol is not required under federal law, but it’s recommended as a way to put others on notice that you’re asserting a claim to the material. Similarly, copyright registration is not required. In fact, any work created on or after Jan. 1, 1978 is automatically protected; however, registration, which is inexpensive and can be done online, does afford the creator additional rights.

Why should you care about copyright if you’re not a writer, musician, or photographer?

Greg Allen

“If a business owner is not aware of the basics of copyright, then he puts himself at risk of being copied, facing the expense of bringing suit in state, or more often federal, court to enforce rights that have been infringed or—worst case—being sued for copying the works of others,” said Gregory B. Allen, an attorney with Allen, Dyer, Doppelt, Milbrath & Gilchrist in Jacksonville.

Allen once represented a real estate magazine owner who published a photograph in print and online that was provided to her by an advertiser. The publisher was sued for copyright infringement even though she didn’t know of the photographer’s rights when the advertiser gave her the photograph. “Defense of a federal court case is not a cheap proposition,” Allen warned.

It may seem easy to avoid misappropriating someone’s intellectual property and ending up in a similar situation: just avoid copying someone else’s work or using their photo without permission. But the copyright laws are more far-reaching. Experts offer the following advice to avoid infringing:

• Seek written permission to reprint anything that is not your original work. Remember also that if you purchase the right to use an image or article, that doesn’t mean you can use it in perpetuity. Depending on the license agreement, using an image on your Web site may be considered one use and putting it in your brochure may be a second, and the copyright holder may expect to be paid twice.
• Ensure that your own Web site contains only original work. The contract with your Web site developer should contain an indemnification clause to protect you in the event that someone comes forward and claims their Web site was copied.
• Be vigilant about photos you use on your Web site or in printed materials. If you use stock photos, make sure you’ve purchased all necessary rights. If you deal directly with a photographer, confirm that it’s his original work. “Your Web site developer should guarantee that they’re using photographs they have the right to use,” said Saitta. “Try to get some sort of indemnity clause that guarantees that if a problem comes up, it’s the Web site developer on the hook and not the business owner.”
• Consider insurance. Invest in a commercial liability policy that includes coverage for copyright infringement.

What can you do to protect your own intellectual property?

• Use the copyright symbol. Although no longer required, it’s still beneficial. Include the following: the symbol © or the word “copyright”; the year of first publication; and the name of the copyright owner. Example: © 2010 John Doe
• If you use a Web site developer—or anyone to create intellectual property—
  

  Joe Lemire

  make sure the copyright is transferred to you in writing. “If it’s not specified in your contract, that can become a contentious and potentially big issue,” said Joe Lemire, owner of ELYK Innovation, a Web application development firm in Jacksonville. Lemire has had to “rescue” Web sites, recreating source code that prior developers felt was proprietary.

• Consider using source code in your Web site that prevents viewers from right clicking to cut and paste a section. This provides limited protection, however, since a plagiarizer can still just re-type the section he likes.
• Keep a watchful eye. Consider setting up a Google Alert in either your name or keywords related to the work you want to create. Google will then monitor the Web and notify you by e-mail when your search term is used in new articles, blogs, or Web sites.
• Register your intellectual property. “The only truly effective means of protecting
  

  Howard Caplan

  work subject to copyright is to register it,” said Howard Caplan of the Caplan Law Firm in Jacksonville. By registering, you can also recover “statutory damages” in the event of an infringement, which means that you don’t have to prove an actual monetary loss. Registration can be done electronically and costs $35 for a basic claim to an original work of authorship.

It took Jason Mudd several weeks—and the threat of legal action—to get the Arizona firm to remove his work from its Web site. He has since created strict policies to protect his own work and that of his clients. “I guess plagiarism is a nice form of flattery,” he said. “But it was my vision—for me to write an article takes time and commitment. So I felt like someone had stolen from me.”

Robyn A. Friedman is a contributing editor to Jacksonville Small Business Advantage. She can be reached at RAFWriter@att.net or through her Web site www.everythingwrite.com

By Nancy Ulrich   

The task before you looms like that big dark cloud on a hot summer day: You need information but have no idea how to get it.

You may be thinking about measuring customer satisfaction or launching a new product or service. Perhaps you are contemplating expanding your business or buying a new one. Or, maybe you are wondering why your customers are not knocking down the door while your competition is going gangbusters.

No matter what the need, it all boils down to doing research that is smart, solid, and reliable. And it must be affordable as well.

Research can provide certain metrics that allow you to track the course of your business. As we are often reminded in the world of business, “you cannot manage what you do not measure.” This counsel applies to everything about your business, and it definitely applies to the research process. Just make sure you are measuring those factors that influence your business, and that you are measuring those factors you can influence.

A 12-step start

Start with a few basic tasks you can easily accomplish on your own or assign to a responsible employee. It is the simple task of converting observations into something you can measure.

1. Ask yourself two basic questions: What do you need to measure so you can manage it? How will you apply this to growing, sustaining, or starting a business?

2. Create a database of your customers or clients. A simple Excel spreadsheet will work well since you can continue to add fields when necessary. Whether you have a professional service or a retail establishment, this database is created to reflect your business model. Gather pertinent information (in separate fields) about your customers such as name, address including zip code and contact information including home phone, cell phone, and e-mail address. In retail, ask your customers to complete a short contact card as a great way to start building repeat business.

3. Collect zip codes. Getting a zip code from every customer and potential customer lets you determine the market areas from which you are pulling traffic. This information is helpful in directing your advertising and marketing activities.

4. Plot customers on a map. Use technology to your advantage if you have a geographic trade area. With an address, you can plot their home on Google maps. This type of free information will assist in purchasing advertising, locating a new store, building information on your competition, or conducting due diligence when purchasing a business, or increasing the value of your business when you sell.

5. Record demographic characteristics. Include gender, age bracket, marital status, or if the customer has children.

6. Record lifestyle characteristics when available. What kind of vehicle do they drive? Does the car bear any membership stickers for clubs, churches, or schools? Do any of these exterior signs indicate an affluent market or customers who may be struggling? Does your observation suggest success or failure for your company? What if they are your competitor’s customers?

7. Track traffic flow. How many people call or come into your business by the hour, day, or week? How many in the party? Of those who purchase, do they buy on impulse? How many walk away without buying? How do these customers differ from those who purchase? Once you establish the standard traffic flow, experiment with various techniques to see if you can vary the pattern in a way that increases your cash flow without impacting your overhead.

8. Ask how your customers heard about your business. Why did they select your business when they could have gone elsewhere? How did they find you? Did they mention where else they shopped? (Ask them about that experience.)

9. Make your advertising measurable. Did you include a coupon in the print ad? Did you tell customers to ask for Joe or mention a code word in the radio or TV commercials? Are you monitoring and measuring hits and click-throughs on your microsites or Web sites? Without monitoring the effectiveness of your advertising, how will you ever know if or what part of your advertising is effective?

10. Watch weather conditions. If weather can affect your business, keep a log of daily weather conditions and see if you notice any trends. If rain or cold keeps traffic away, create a draw to reward your customers. If inclement weather has the opposite effect, then be prepared for the deluge that is coming to your store. (Suggestion: Consider using Twitter to send “rain special” announcements, effective only for the period of a downpour!)

11. Record the sales. How much money did your customers spend? What were the high and low sales of the day? What was the average sale? What is the potential for add-ons? Is this a one-time sale or opportunity for repeat sales?

12. Mystery shop. Do this to your competition or the business you want to purchase. A wise man once said the only business you need to know more about than your own is that of your competition. Mystery shop by phone and in person when feasible. How many cars are in the parking lot at different times of the day compared to your place of business? What kinds of cars are their customers driving? Are the grounds well-maintained, indicating a thriving establishment? What are the signs of activity? What types of delivery trucks do you see coming and going? (While you are at it, mystery shop your own business.)

Remember, no one knows your business better than you do, so ask the tough questions and find a creative way to gather the information. Once you start to quantify these answers, you will soon discover how to apply data in a meaningful way—to help you build the business, avoid costly mistakes, modify your business plan, outpace competition, and deliver value-added services and products to existing and new markets. These observational factors are especially important if you are considering the purchase of an existing business.

Nancy Ulrich

Nancy Ulrich is president of Ulrich Research Service, Inc. (www.ulrichresearch.com), 1329 Kingsley Ave., Suite A, Orange Park, Fla. Contact her at 904-264-3282 or nancy@ulrichresearch.com.

SIDEBAR

Basic steps to design your research project

Regardless of the purpose for your research, the basic steps apply in most situations.

1. Establish your goals and objectives. Ask yourself or your team what you hope to accomplish with the research. How will we apply the findings? Are they realistic? Are they strategic or tactical?
2. Refine your goals and objectives. You should have one primary goal, maybe one secondary goal, and no more than a few key objectives.
3. Select your target audience. This can get tricky, especially when it comes to exploring new opportunities or existing challenges. However, if you do Step 2 correctly, the target audience will reveal itself.
4. Match your methodology to your target audience. Know what type of survey you want to conduct and which methodology will work best for the target audience. Basic formats of quantitative research include conducting surveys by telephone, direct mail, in-store comment cards, online, and intercept (great way to increase the value of cashiers, wait-staff, sales reps, delivery personnel, and receptionists).
5. Design the survey.  Stay focused on your goals.
6. Pick the best methodology to address your goals and objectives. If you are going to conduct your own research, make sure you feel comfortable using the tools that are available. Survey Monkey (www.surveymonkey.com) has brought the art and science of marketing research onto the desktop of most business owners. If you are conducting a phone or direct mail survey and lack analytical skills, simply set up Survey Monkey and input the data into this system. It will calculate the responses and provide you the basic metrics.
7. Allow enough time to gather and analyze information. Time your survey so that it is relevant and meaningful.
8. Analyze the data. Sit down with your team and take an objective look at the data. Remember the goal is to gather data that influences your business over which you can exert some control and influence. Expect some fluctuation in the data. And most important, do not stop collecting data because you do not like the results, feel that you are not learning anything new, or suspect that you already know all the answers.
9. Apply the learnings. Based on the metrics that are most useful, continue monitoring your progress. Readjust goals as necessary based on facts, not emotion. Share the information with your staff and engage their assistance and enthusiasm.

Some cautions

Do not do research unless you are willing to implement offered recommendations or make significant changes when indicated. In other words, if you don’t want the answer, don’t ask the question.

And don’t expect to get all the information you want with one survey. The length of the survey depends on the mode of data collection: Keep a direct mail survey to one page, front and back. Telephone surveys should be under 10 minutes to avoid respondent fatigue. You may be able to risk have longer online surveys, however, especially if respondents can stop and start again. As tempting as it may be, don’t use a survey to sell or solicit business.