By Mona Pearl

Need an antidote for shrinking domestic markets? Consider international markets. They offer unparalleled opportunity for growth, increased sales, diversified markets and increased profit for successful businesses.

Unfortunately, many U.S. companies gaze with trepidation at the process and surrender to fear before making an earnest effort. The main problem is simply a mindset, which contributes to a lack of experience, talent and confidence on behalf of U.S. business people to navigate emerging global markets. Smaller countries around the world, however, have operated globally with success for generations.

Are you ready to go global?

Unlike smaller countries that think globally from the beginning of a product’s life cycle, U.S companies typically consider global expansion only after achieving domestic success.

In this scenario, a well marketed product or service already exists, but new markets are needed to continue upward profitability. Before starting the new market search, however, businesses must administer an honest self-assessment to include commitments, budgets, human capital, international expertise, and global objectives.

Given the assessment results, the precise time may not be right; but, being aware of the risks as well as the opportunities is important. In today’s economic climate, no rock can be left unturned in search for new opportunities.

The million dollar question is the same: “What markets will generate the greatest success for my company?” While there is no “one size fits all” solution, in-depth research and expert advice can attempt to answer this critical question. Too often, the lack of adequate market knowledge leads to failure.

Secondary market research consists of information collected from published sources such as books, newspapers, market reports, studies and the Internet. Primary market research fills in any gaps through direct personal contact with local industry experts, customers, trade commissioners and other local persons with the requisite knowledge to assist. It’s also important for businesses to tap into resources such as local trade associations, lawyers, experts in the field of global expansion, accountants and potential partners.

While in-depth research may seem tedious, it ultimately saves time, money and other valued resources. Without a solid base of research, businesses will be unable to anticipate issues and answer difficult questions such as:

•Where in the world should I go?

•What is the best global direction for my business / specific products?

•What paths lead to sustainable growth?

•How can ROI projections be fully realized?

Effective research allows these difficult decisions to be driven by evidence-based data.

Selecting a market

Choosing a target market(s) starts with knowing the product/service and what range of functionality it can offer the global community. Then, scan the markets suitable for that product. Another excellent starting point in evaluating potential countries/regions is gauging the U.S. government’s attitude toward them.

For example: Does the U.S. government maintain a line of credit with the country? Are there export controls? How is the country ranked internationally? These broad questions will narrow down the list of potential target countries to consider.

The next step of research involves a more detailed analysis of risks and opportunities for those markets that emerged as potentially good targets given the product/service under consideration.

You will want to look at these key issues:

•Legal environment

•Ethics

•Attitude towards foreign investment and R&D

•Economic/political stability

After a country/region is selected, it’s important to further identify their strengths and weaknesses relative to your product and business. This process will prepare you to anticipate potential surprises and be equipped with a carefully planned response instead of a hasty reaction when, not if, they occur.

Product adaptation—“know” the target audience

Various international audiences have different needs, unique preferences and diverse ways/nuances of conducting business. This includes, but is not limited to, learning their culture, traditions, practices, philosophy, preferences and their way of conducting both life and business. Only with a thorough understanding of the target market can you make wise and sustainable economic decisions about product adaptation and, ultimately, success.

Each product, in every respect, needs to be tailored to suit the local tastes, customs and preferences. This includes packaging, branding, pricing and after-sale servicing. Become thoroughly familiar with the local people; it may avert an expensive, and potentially embarrassing, mistake.

Market entry: a “dynamic” actionable plan

While there are many important decisions to make when launching into a new international market, two are particularly critical. First, decide whether to enter the market alone or seek alliances with existing local businesses. Secondly, choose an appropriate distribution channel.

In both of these, there are tradeoffs in terms of financial commitment and control over the product as it reaches the end customer, as well as general cultural and other integration issues. Due diligence is important as the perception of any foreign organization is filtered through whom they partner with locally—team up with the wrong partner and failure can strike before any business is conducted.

A local partner can also provide insight, contacts and expertise. A strategic alliance also provides more effective market access, resulting in higher foreign sales in less time. Not surprisingly, as the pressure to rapidly exploit new technology and products has increased, so have the options for businesses interested in franchising, joint ventures, mergers and acquisitions or other strategic alliances. While the flip-side is less control, it forces cooperation with local business which can be a recipe for success.

Secondly, distribution is one of the most crucial decisions in a global expansion strategy. It represents a significant overhead cost and lies at the heart of the connection between what the market wants and what the market gets.

Ultimately, both decisions will be guided by the international business community, the type of market for the product (mass market or limited), available capital, sales volume and access to information technology.

Access to talent—a limiting factor

One emerging trend to watch is a shrinking pool of talent. This promises to be a major obstacle for organizations looking to expand globally. In fact, several companies report “the only thing limiting growth abroad is that we cannot find enough people—engineers, sales staff, and marketing—who are bilingual, globally orientated and willing to live abroad.”

The U.S., more than ever before, lacks professionals with the global experience necessary to bridge cross-border operations.

Focus on opportunities, not obstacles

As international leaders in innovation, it is important for U.S. businesses to look at the world from a fresh angle with a new perspective. “A global mindset is the opposite of economic isolationism. We are part of the globe, and should stop looking inward, but look out,” commented Carlos Gutierrez, former Secretary of Commerce.

It’s time for U.S. businesses to take the next step internationally through the development of a winning expansion strategy—a practical approach that eliminates surprises and gets it right the first time. After all, there is no challenge too great for a country that has proven itself over and over again. So, let’s start the journey.

Mona Pearl is an author, a global strategic business development expert as well as the founder and COO of Beyond A Strategy Inc., a company providing expertise to plan and implement cost-effective and sustainable global growth that improves a company’s bottom line and helps realize seamless international operations. She can be reached through www.monapearl.com.

***Includes excerpts from “Grow Globally: Opportunities for Your Middle-Market Company Around the World.” Copyright (c) 2011 by Mona Pearl.  Reprinted with permission of John Wiley & Sons, Inc.***

By Katrina Diamond

You’ve launched your website and the new office furniture is being delivered tomorrow, but before you kick up your heels on the new mahogany desk, ask yourself one question: Does your small business have a video? If you answered no, then you should keep reading.

The average website user session is 30 seconds, but when the website has a video, the session can last 5 minutes, 50 seconds. Most users that make a Google search are more tempted to click a website that has a video. Correctly optimized, websites with video are 53 times more likely to appear on the first page of Google—not to mention that in the last three years, cell phone video traffic increased 5,000% (Facts about Online Video, the YouOn Group, Sept. 2011).

In addition to all the print, online, experiential and PR/marketing you have prepared, you must have videos to engage users, explain why your business exists and how you can help. You must consider each viewer a potential client.

Whether it’s an intro from the CEO, an animated how-to video, a public service announcement (PSA), or a full-blown commercial, you need a video to introduce your business. The sooner you realize that, the better you can position your company and start owning your space in the market.

And…action!

Set your goals and follow through. In the same way you would prepare your kitchen and recipes before cooking a big feast, you should always be prepared going into a production contract. Know the clear goals of your video and grab as many examples as possible of what you like and don’t like before getting quotes from vendors.

When you are ready, find and hire the appropriate media company or freelance provider and be sure to:

Check out their reels. You want to be able to compare one company’s reel to others in their specialty. Do the skills measure up in the work showcased?

Pay attention to third-party recommendations. Look at who their other clients are. Do they have an impressive client list of legitimate testimonials?

Ask for references. Make sure to get some that you can call. While online recommendations are great, nothing beats having a client reference you can call and hear about experience for yourself.

Inspect specific project experience. Know what they offer and if they can do the job you are looking to have done. Do the clients, reels or credits give you assurance the vendor can handle your type of project, i.e. A “reality show webisode” versus a traditional corporate training video?

Rolling!

The next step is knowing where to look and what to look for. Begin by researching appropriate pricing bids. You will want to compare apples to apples to ensure you aren’t getting taken advantage of during the process.

Keep an open mind that it may take two different companies to get the job done as not all companies can help from concept to completion. For example, you may need to hire a freelance scriptwriter first, and then go with a production company to bring your script to life.

Once you are ready, begin locating the professionals you need. You may find what you are looking for by simply performing a Google search, i.e., “Production Houses in NYC” or “Animators in Wisconsin,” but know there are also production companies that can match you to qualified, available vendors within minutes.  

Script changes

When it comes to your production, there are a few things in the fine print to watch for.

Make sure they are insured. Protect your production—better to be on the safe side early on than regret it later.

Don’t pay in full upfront. Paying half at the start of project and half upon completion or by one-thirds (1/3 at start, 1/3 mid-project, 1/3 upon completion) is standard.

Have a deadline. Ensure it is mutually agreed upon, in writing and clearly outlined so everyone is on the same page. Make sure to add an addendum any time something is removed, added on or changed that may affect the cost of the production.

Secure all the pertinent text, verbiage, artwork, etc. You want to have all photos, b-roll, design elements, logos, updated contact info, etc. prior to starting so no one is waiting on you at any point in the production.

Set expectations early on. You get what you pay for —don’t expect a Super Bowl commercial when you go with  “Discount Dave.”

Take your work seriously—not yourself. Everybody has their weaknesses. If yours is being camera ready, then plan ahead to select a spokesperson or PR representative for your company that may do a better job.

Request raw files. Whether or not you plan on updating this video later on, make sure you request the raw files along with the final deliverable of the finished product. You may want to add elements to your site or future promotional materials down the line.

Own the rights. Make sure you own the rights to your video and that the vendor isn’t selling the content to other takers. There should be verbiage in contract stating this, but it’s always good to highlight this as a line item and make sure they only use the footage in their own promotional reels, not for other projects.

This should go without saying, but nonetheless, make sure you feel comfortable with the vendor and don’t settle for the first quote you see. You may be torn between two vendors with comparable fees, recommendations and work, so choose who you like best and wouldn’t mind speaking to on a regular basis for production meetings and updates.

That’s a wrap!

Your video is complete and you are ready to…now what? Some ways to maximize your video is to use it for:

SEO. Optimize your video content for search engine optimization (SEO)—use search-friendly URLS, no Flash, video descriptions and tags.

Links. At the end of the video, make sure the video links to your website and has your email and phone number. You also want to link to your video in relevant brochures and marketing materials.

Social media. You will want to post it to your Facebook, Twitter, Linkedin, etc. Consider using a social media dashboard like Hootsuite to track and schedule your social media messages. You can use predefined keyword streams to respond to customer feedback or use it to find new clients and respond to them directly.

Networking. Are you involved in a niche online community for your industry? Link the video from your professional online networks. Staying active and becoming an influencer in one or two of these niche sites is always better than having empty profiles in all of them.

Prepared clients usually end up being the happiest clients. Give yourself and your small business the gift of a video. Happy shooting!

Katrina Diamond is the marketing/PR manager for ProductionHUB Inc., the search engine for media and entertainment that connects film, television, video, live event and digital media production with those seeking industry services, equipment and professionals. She can be reached at 877-629-4122, at kdiamond@productionhub.com or through www.productionhub.com.

By Daniel Burrus

Anyone who has been around children and young adults for a while knows they are attracted to video games. And while older adults may think they are being lazy or using their time idly when they’re connected to their Wii or Xbox using a Kinect, in reality they are paving the way for business training and education.

How? It’s part of a future trend first identified in the 1980s that is now being called “gameification.” Today, that growing trend is reaching a tipping point. In fact, many of the greatest technological advances in business have come from the world of children and games.

Paving the way

To see the migration of how a concept goes from children and games to adults and business, just look at the evolution of social media. At first, young people were the predominant ones on social media sites such as Twitter and Facebook. Adults simply didn’t see the value of social media—after all, who really cared what you had for lunch or what outfit someone wore to the dance.

As adults eventually took more and more interest in social media, many companies made formal policies forbidding employees from using Twitter and Facebook at work. But now that the business world has seen the relevancy of social media and how it can be a brand management, marketing, and collaboration tool, they’re embracing it, some even going so far as creating their own internal versions of Twitter and Facebook.

Granted, video games and social media are different technologies, but the concept migration pattern is still the same. And with game controllers like the Wii and Xbox Kinect giving people new ways of interacting with technology, the business world is currently on the threshold of being game-ified.

Thanks to Microsoft releasing  a software development kit for the Kinect that allows programmers to create new applications, university students started taking this gaming concept and writing software that allows users to control business software using only hand motions—no keyboard or mouse. An early example would be if you want to go to the next page, you do a sweep of your hand across the screen without touching anything. You can sweep to the left, sweep to the right, scroll up, scroll down, and many other things.

The core of gameification

The heart of the gameification trend is using interactive gaming as a tool to transform training and education. Based on 25 years of research, there are five core elements that when applied together can dramatically accelerate learning. When you model your company’s training to include these five elements, your employees will learn more in less time and have better results. The five core elements are:

Self-diagnostic. In the world of gaming, as you accomplish new feats and your character gets better, the game gives you greater challenges. When you power down, it remembers where you left off. When you return, you don’t have to start over from ground zero.

In the case of business training, if you learn something, there’s no need for a trainer to re-teach it to you. A better idea is for business training to have a self-diagnostic component. The interactive, competitive, and immersed module can know your skill or knowledge level and progress accordingly. It can know where you left off and give you next steps from that point when you log back in. This is the best way to allow for individual training and learning.

Interactivity. For centuries, education and training have been, for the most part, passive experiences. Someone stands in front of a group and talks and the people being educated or trained sit and listen—taking a few notes here and there. As technology evolved, the trainer or teacher showed a movie or two to keep people involved, but in the end, the people learning just sat and watched.

Regardless of someone’s inherent learning style, learning is much more effective when you’re interacting with the material, not passively sitting there. When you learn by gaming, you’re interacting with the information and concepts. You’re moving things around, you’re manipulating items, and you’re actually doing things. It’s no longer passive training. Now you are much more engaged and immersed.

Immersion. In the recent past to the present, video games use interspatial 3-D, where you go into worlds. So instead of images popping out at you, you go inside to them. This sort of technology gives an immersed effect, which engages people more.

To apply this to business, if you’re training salespeople on a particular manufacturing tool they need to sell, why not have them see the tool in 3-D and actually get to virtually manipulate the tool rather than have them read spec sheets about it? The former will give them more insight to the tool, which will make selling it easier.

Competition. Humans are naturally competitive beings—we want to sell more, be more productive, innovate faster, and be smarter than the next person. When you’re sitting in class learning, there’s little competitive value. You’re all there for the entire timeframe whether you’ve learned the materials in one hour or three. No one advances until the class is over.

When you’re competing, however, as in a game, there’s an adrenaline rush that keeps you engaged and focused on the task at hand. In an effort to “win,” people master concepts faster so they can be first.

Focus. When you’re playing a game, you’re forced to focus. You have to do A in order for B to occur. If you don’t do A, then you won’t get far in the game. Focus is the result of interactivity, competition, immersion, and self-diagnosis. When you can focus, you can learn virtually anything…fast.

Accelerate learning

Using all five core elements is a key to accelerating learning. With more and more to learn, it will be increasingly important to gameify both business and education to create better results faster.

Those companies that adopt early will be the long-term winners. So here’s your homework assignment: Get together with a child and play one of their games. While you’re playing, think Wii or Kinect for business. Think of the five core elements and how you could reinvent learning with tools like these.

Since businesses spend large sums of money on training and education, any tool that can accelerate or enhance learning will save both time and dollars.

Daniel Burrus is considered one of the world’s leading technology forecasters and business strategists, and is the founder and CEO of Burrus Research, a research and consulting firm that monitors global advancements in technology-driven trends to help clients better understand how technological, social and business forces are converging to create enormous, untapped opportunities. He is the author of six books, including “Flash Foresight: How To See the Invisible and Do the Impossible” (www.flashforesight.com) and “Technotrends.” He can reached through www.burrus.com.

By Ted Werth

As a small business owner, you depend on reliable access to technology to run your business and generate revenue. A technology outage—due to service, network, cloud or device issues—can bring productivity to a painful halt, leaving sales, operations and customer-facing personnel without the tools they need to do their jobs.

To ensure business continuity while also containing technical support costs, you should consider teaming up with a technology services partner.

Cost-effective access to a proven technology services provider maximizes your ability to keep vital business technology up and running and enhances your ability to satisfy customers. A dedicated technology services partner enables you to focus on your core business, improving productivity in a way that drives profits.

IT support services deliver new opportunities

The rapidly evolving world of business technology provides you new opportunities to gain a competitive edge—and technology services play an important part in that. The technology services landscape has changed dramatically in recent years, and new capabilities will continue to alter the way you operate for the foreseeable future.

For example, in years past, a startup company would have to configure and stand up its technical environment, patching together hosting, email, servers, mobile and desktop devices, routers, printers and more, while typically bootstrapping support resources. This need for service prevented companies, especially small companies, from focusing the maximum number of resources and investments on profit-generating activities.

Today, however, the availability of remote managed services enables startups to get up and running quickly. This allows companies to immediately focus on generating revenue and achieving operational excellence. Similarly, the availability of expert mobile and Web services support can improve your small business by ensuring you have access to vital data and productivity tools wherever and whenever you do business.

The backup plan

Another mission-critical need that can be filled via remote technical support is disaster recovery through backup services that protect business-critical data. This is a key component of a sound technology strategy for any startup or established enterprise.

In your small business, it’s not a matter of “if” you will experience data loss, it’s a question of “when.” And given that a very high percentage of smaller enterprises that lose vital data go out of business within two years of the data loss, it’s crucial to make sure you have the backup and recovery capabilities to ensure that your company thrives.

Technology services companies can deliver offsite and cloud-based data backup services that ensure recovery in case of a major technology issue. This type of service can also help you comply with regulatory guidelines that mandate retention of key data. Many small business owners assume their critical intellectual property is protected, but the issue is too important to leave to chance.

It’s a great idea to have a data backup professional conduct a thorough review to ensure you have the resources in place to recover from disaster, whether caused by user error, hacker activities, a technology issue, severe weather impact or fire. This will not only provide the peace of mind that comes with knowing your business is ready to meet the challenges associated with an unexpected technology disruption, it also provides your customers with the assurance that your business will be there when needed, protecting important data and delivering the services they expect.

For you and your customers

As a small business owner, you may be able to significantly increase your company’s efficiency and productivity with a managed technology services contract, which reaches beyond your basic IT or help desk support. In addition to reliable access to the technology tools you depend on to run your business and serve your customers, managed technology services can expand your team’s capabilities.

For example: The ability to securely upload business data from the field can eliminate the need for sales or service teams to capture customer information and manually enter data later.

Up to 95% of technical problems can be resolved via remotely delivered support, which can drastically reduce productivity lost due to waiting for onsite assistance. But the benefits of receiving managed technology services from a technical services specialist extend even further to include proactive maintenance to anticipate needs and address issues before they become problems.

By taking a proactive rather than strictly reactive break-fix approach, you can gain a competitive advantage.

Do a lot with a little

The benefits of having 24×7 access to technology services solutions are clear:

•Higher productivity and efficiency;

•Reliable access to vital business tools;

•A sound backup and business continuity strategy; and

•Greater customer satisfaction.

However, you may be concerned about the costs associated with a managed technical support contract.

Generally, the cost ranges from $20-$40 per computer and approximately $299 per server supported. To put that cost into context, think about the loss of profits that would result from a technical failure that brings all business activities to a standstill—even for a single day.

If you’re ready to position your business for continued growth and success with a proactive approach to technology services and support that allows your team to focus on core competencies, it’s time to think about forming a partnership with a company that specializes in managed technology services for small and medium businesses. As you consider your options, evaluate potential partners’ experience and credibility.

Make sure you find a partner with a strong history in the industry and accounts that will provide references. Ensure your potential technology services vendor can be trusted with your vital business data and has the resources needed to respond immediately with reliable service when you need it. Above all, make sure your potential partner is committed to providing an excellent customer service experience. By taking these steps, you can do a lot with a little.

Ted Werth is founder, chairman and CEO of PlumChoice, a provider of 24×7 online repair and assistance and managed technical support to SMBs and consumers directly and through telecommunications, cable company and retail partnerships. He can be reached through www.plumchoice.com.

By Steve Ennen

To the uninitiated small business owner, social media may seem like an intimidating prospect. Even if you already have a personal Facebook profile or Twitter account, creating one for your business—and, more importantly, making it successful—is a different thing entirely.

If you feel this way, you’re not alone. According to an OfficeArrow survey on the state of social media for small business,* only about 30% of small businesses are planning on increasing their investment in social media in 2012. That’s mostly due to the fact they don’t know how to do so effectively.

Only 4% of small businesses use social media management services to monitor their status on social networks. And 90% of small businesses primarily use their company website to distribute information to customers—more than double the amount that use social networks to do so.

If you’re running a small business, it means that an effective social media presence will put you leagues ahead of most other small businesses in the country. Small businesses are the fuel of the American economy, and it is important that they get the most out of powerful tools using social media.

What is social media?

Before you start using social media for your small business, however, you have to educate yourself on what social media encompasses and how it can be used for business purposes.

Social media empowers the consumer, connects your business to that consumer, and allows you to listen to the consumer—all in real-time. It’s far more powerful than traditional media choices.

Most businesses just think of social media as a way to push more content to customers. While this is certainly a use for social media, it is not the most effective approach for businesses…by itself. Instead, businesses can get the most value out of social media by active listening.

Social media done right: the case of 8th Continent Soymilk

The best way to understand what this means is through an example: 8th Continent, a soy milk company, used Twitter and other social channels to monitor what soy milk consumers were saying—not only about the brand, but about competitors, too.

They developed a novel approach; whenever they came across a negative post or comment about one of their competitors, they responded to each user with a comment and a link to a coupon for one of their products.

The result was a whopping 37% return rate on those coupons—significantly higher than the typical 0.7% rate for hard copy coupons. That, along with the positive publicity that followed their move, means that 8th Continent saw a real boost to its business because of social media.

How to build and execute your social media strategy in five steps

So how can you apply this example to your business? To begin, it outlines an effective process that you can use to develop a social media strategy in a few easy steps:

Listen. The key to using social media is to listen to your customer-base and potential customers. It’s a daunting task unless you employ social media monitoring services.

Companies should first search for their brand on social networks. If there are discussions, and they’re positive, then you have a great start. If you have only negative feedback, then pay attention to those comments just as much as if they made those complaints directly to you. If there isn’t much discussion, then find someone to help spark that conversation.

It’s also helpful to follow 8th Continent’s lead and research what consumers are saying about your competitors. You’ll be able to see what they’re doing, right and wrong, and adjust your own social media strategy to take advantage.

Go where your customers are. It’s important to find out where exactly your customers are discussing your business. If you run a restaurant, for example, you may want to look at Yelp, which features a thriving restaurant review community. Depending on what you find on various sites, consider connecting with your customers.

Sometimes you will find frequent mentions of your small business in Facebook groups organized around a different topic. Look at what else they are discussing regardless; it could provide valuable insight into potential new services they are looking for or general consumer expectations.

Craft your social media strategy. Once you have identified your customers’s location, needs, and expectations, you should use that information to create a strategy to engage with them. Often, this may simply involve connecting with users online.

If you find a negative comment from a customer on a social network, respond to them directly and try to alleviate their concerns. This could mean sending them a coupon, but it should focus more on engaging in true communication and making your customer feel like they are valued.

The key to building a strategy is setting goals for your social media presence. Do you want to promote brand awareness? Improve your business’s reputation? Bring in more revenue and new customers? By setting benchmarks, you will position your small business for future success.

Engage. Customer engagement through social media can take a myriad of forms. Promotions through Facebook integrated with email addresses you acquired via social networks is an easy way to start. Or you may employ videos or podcasts to educate your customers. But the key is to listen to your customers, not simply talk to them. Social media is a two-way street, and users are quick to distrust organizations that don’t take that truth to heart.

Fine-tune your process. There are also many tools out there that can help you fine-tune your social media presence. EmailDirect or MailChimp are examples of email newsletter services that can help you reach your customers directly. There are many different social network monitoring tools, which can greatly reduce the amount of time needed to stay abreast of all the real-time developments.

There are also social media tools being developed with small businesses specifically in mind. Once you have a handle on social media, you can use these tools to further streamline your strategy.

Endless possibilities

Of course, this is only the tip of the iceberg, but that’s what makes social media for small business so exciting. It is such a young medium that the possibilities are endless. The best thing you can do for your business is to focus on learning, listening, and interacting with your customers, and hopefully picking up some new ones in the process.

By getting started now, you’ll be far ahead of the pack and have your own social media strategy set in place before most of your competitors have even started considering theirs.

Steve Ennen is president and Chief Intelligence Officer for the Ponte Vedra startup Social Strategy1, a company that helps businesses use the social Web for business growth and intelligence and develops tools with small businesses in mind, such as its Beam Social. He can be reached at steve@socialstrategy1.com or through www.socialstrategy1.com

*http://www.officearrow.com/small-business-management/small-business-stuck-neutral-social-media-infographic-oaiur-15517/view.html

“I can assure you, if you do not continue your education/training, your competitors will. Enrolling in finance classes, management classes, supervisor training, new equipment/methods for improvement…all those things are important. Certificates? Not so much unless of course your vocation or profession requires certification. Bottom line—improving yourself, your employees, and your processes help as long as you stay true to your business needs.” —James Beeler, independent consultant

“I met Kevin Monahan from SBDC UNF at an event and found out more about the small business programs they have. As a potential business owner, I can see value in the educational programs. An experienced business owner offered that she put her employees through the classes as training to understand the process and as a teaching tool. I already added this to my to-do list.” —Dave Bachansingh, merchandise marketing manager

“Today’s consumers are more demanding and most have less money to spend, so continuing your education to ensure you are more knowledgeable about your products and services may sway a customer to do business with you rather than your competitor. Additional certifications may make you more marketable, but you’ve got to have the knowledge and convey this to the consumer.” —Mary Habres, accredited home stager, paint color consultant, and interior redesigner; decorating and staging speaker

“Additional certifications are absolutely vital to a small business owner. They give more confidence to the general public who are your customers. Getting the Certified Managerial Account designation is on my to-do list for 2012.” — Keith Johnson, principal, Keith E. Johnson CPA PA

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“When we stop learning, we stop growing and get stuck in our ruts. We start thinking, “This can’t be done” and so forth. It’s why I believe in being a part and product of the process and hired a coach, even though I am a certified coach. We rarely see our own blind spots. I believe you will always get some nugget from any continuing education or new certification program!” —Kathryn Hatcher, owner, Key Coaching Associates

“I think continuing education is critically important. I’ve had many clients who get so involved in day-to-day activities that they forget that if they don’t keep up, they’ll find their business down as people begin to think they are out of date. Besides, any type of class will stir your brain so you find yourself with new ideas for your business. If you learn one new thing out of a class, it was worth the effort. Education is salvation.” —Luann Allen, business and marketing expert, and author

By Wendy Bautista

Chad Perce, CEO and co-founder of iMethods (www.imethodsinc.com) and your Small Business Leader of the Year for 2012, began his business education before he could drive when he launched his first startup—a neighborhood lawn care empire in his hometown of Lake Mary. Even then, at the age of 15, he learned about the importance of delivering for the customer. “It was quickly apparent to me that the best way to earn and keep clients was to work hard and pay attention to the details,” says Perce.

Those early insights have served him well. Since founding iMethods’ original iteration, Medical Methods, in 2004, Perce and his business partner Clint Drawdy have grown the company from a clinical staffing firm with two full-time employees to an award-winning Information Technology (IT) recruiting and consulting corporation with a sizable staff and projected revenues of more than $10 million for 2012.

A push start

“I would love to say that iMethods was born out of a long and highly scientific market study, but it really grew out of a confluence of skills, experience and opportunity, given an extra push by a dare,” says Perce. “Clint and I had strong combined backgrounds in IT and recruiting and we’d dreamed of starting our own company since the late 1990s.”

Perce says iMethods might still be a dream if their wives didn’t challenge them to “put up or shut up” at a family barbecue, which was also about the time an existing client helped him identify a need for clinical staffing in the medical field.

Energized by the opportunity and the challenge, Drawdy and Perce started Medical Methods in January 2004, recruiting physical, occupational and speech therapists for national and local clients.

Based on their existing relationships with Baptist Health and Brooks Rehabilitation Hospital, Medical Methods was ahead of the demand for contract therapy services, which put them on the leading edge of the market and well in front of their larger competition.

“Our good timing, positioning and newfound expertise in the medical therapy market allowed us to launch nationally with clients such as RehabCare, Heartland and Tenet,” says Perce. “We achieved annual revenues of $415,000 our first year with just two employees—myself and Clint—doing all the selling as well as operating and delivering for our clients. Three years later, that business reached its peak at $3.6 million in annual revenues.”

Making changes

As the market matured and competition pushed margin and supply down for contract therapy services, they diversified their footprint and transitioned away from the now-sluggish clinical skill sets business model to a faster, more agile model in technology.

“It was a wonderful chance to reconnect with old friends in the IT world and continue building our business,” says Perce. “We launched our new IT recruiting business, iMethods, in 2007, well aware that the shift in focus would slow our near-term growth, but believing it would be of great benefit down the road.”

Like many businesses, the recession was a big problem. Perce states that the recession may have affected them earlier than some because demand for recruiting services is an early indicator of economic health.

“The cherry on top of our recession sundae was the fact that we’d made a strategic decision to shift away from clinical staffing to IT services in response to competition and a changing marketplace,” says Perce. “We were in new territory, the economy was crashing around our ears, and the going got pretty tough for a while.”

But iMethods’ growth was noteworthy: revenues for the newer company grew from $1.5 million (2008) to $2.1 million (2009) to $2.8 million (2010). In the fall of 2010, they sold Medical Methods in order to focus exclusively on iMethods and develop the structure of the present corporation and map out the road ahead.

The right decision

For Perce and Drawdy, the decision to refocus on technical staffing was the right one. iMethods has been ranked in the “Inc. 500” (399)/”Inc. 5000” (3,790), placed sixth in the Jacksonville Business Journal’s “Fast 50” in 2008, and was designated twice as one of the community’s  “Companies that Care” by Jacksonville Magazine.

Of the various recognitions, the value-driven Perce particularly cherishes the five “Best Places to Work” awards from Florida Trend and the Jacksonville Business Journal. “I am passionate about the culture of our company,” he says. “If our internal relationships are strong and we stick to our values, our external performance is better and our work is more fulfilling.

“We have diligently worked to create a culture that supports individual growth, healthy relationships and the highest good for all concerned, but we’re well aware that sometimes even the best intentions can erode in the face of the daily struggle to succeed.

“The fact that we’ve been able to preserve a sound culture while garnering positive results for our clients, employees and job candidates is a source of daily satisfaction.”

And with that, iMethods is now an award-winning, values-driven IT staffing and consulting company. Its premier healthcare IT consulting division pairs world-class experts with leading healthcare providers to provide customized consulting options. Its local IT recruiting division identifies and employs top technical professionals in specialties ranging from desktop and network engineering to .NET and application development.

Today, iMethods’ two divisions are expected to exceed $6 million for 2011.

Looking forward

iMethods has been blessed with tremendous growth, which Perce believes has stemmed from strategic thinking, visionary planning, innovative management, and unwavering adherence to their core values—with a healthy dose of outside wisdom and serendipitous timing thrown in.

“I have set and implemented strategies for its growth ever since its inception, successfully anticipating and responding to market trends in a way that has made iMethods nimble and profitable—even in the worst economic recession of our lifetime,” says Perce.

“While our path hasn’t always been easy, our constant commitment to lifting up our employees, recruits and the community has resulted in success beyond our fondest dreams. It has also allowed us to make a positive difference in the lives of individuals and our community. We are truly on a mission!” Perce continues.

“This business was founded on faith, and Clint and I have adhered to our mission and values since day one. By matching skilled professionals with the needs of business, we create value for our clients, ourselves and our candidates, and we are proud and honored to have the opportunity of providing meaningful work for individuals and helping to grow the economy of this community we love.

“Although in different roles, Clint and I have worked together from the beginning,” says Perce, “and any recognition of my leadership is also recognition of his contributions. Our business partnership is a primary ingredient to our success.”

Wendy Bautista is the editor of Advantage Small Business Magazine. She can be reached at Wendy@advantagebizmag.com or 904-222-8140.

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Business vitals

Owner: Chad Perce and Clint Drawdy

In business since: 2004

Projected growth: “My role has been to set strategy and direction for both divisions in anticipation of—and response to—market trends; then successfully execute that strategy. I believe our growth has stemmed from strategic thinking and strong adherence to our core values, with a healthy dose of great advice and fortunate timing thrown in.

“By utilizing the expertise of a volunteer advisory board, playing to our strengths and planning at least two steps ahead for the future, iMethods has been on the leading edge of contract medical services and electronic medical records while meeting the ongoing need for high-quality IT recruiting.

“In the process, the company has grown from a clinical staffing firm with two full-time employees and first-year revenues of $415,000 to an award-winning IT recruiting and consulting corporation with a sizable staff and projected revenues of more than $10 million for 2012.

“Our Big Hairy Audacious Goal (BHAG) for the next three years is to exceed $20 million in revenues,” says Perce.

How you can do it

“My partner Clint Drawdy and I are quick to admit we don’t know everything about running a business. Fortunately, we know a number of people who collectively know everything we don’t—and five of them have generously agreed to serve on our volunteer advisory board,” says Perce.

The volunteer advisory board, which has met frequently since just before Perce and Drawdy formed the original company, provides wise counsel, holds them accountable for results, and is generally a blessing to them throughout the life of the business. With intellect, experience and expertise, they provide a sounding board for strategy; answer questions about banking, legal matters and operations; and perform a host of other valuable functions.

“They are anxious to help and have greatly shaped and influenced our business for the better,” states Perce. “Creating the board may have been the single best step we took in planning our business development!

“When we first formed Medical Methods, Clint and I were experts at sales and delivery, but encyclopedically ignorant on just about every other aspect of running a business,” says Perce. “The advisory board’s expertise and wise counsel has been critical to iMethods’ ability to transcend challenges.”

A book titled, “Now, Discover your Strengths” by Marcus Buckingham and Donald O. Clifton ended up being another critical success element. Perce recalls how the message of the book—working to address your weaknesses wastes valuable time and energy and how you should play to your strengths instead—profoundly affected the way they viewed themselves and their workforce.

“When we altered some employees’ roles in accordance with this idea, they blossomed,” says Perce. “They gained greater satisfaction from their work and became more productive as well. We continue to apply the ‘strengths’ principle on many levels with excellent results. In fact, we apply it to our interview process, requiring promising candidates to complete a ‘strengths profile’ to confirm they’re the right match for a specific position.”

Perce and Drawdy also account iMethods’ survival, growth and subsequent success with their commitment to trying at least one or two new ideas each year. “Our wheels are always turning, especially when it comes to creating close or synergistic lines of service that could increase our footprint in the marketplace,” says Perce. “We operate on the theory that baiting multiple hooks increases your chance for a good catch, even in the rough economic waters we’ve all had to navigate over the past several years.”

Giving back

Because of iMethods’ focus on service, it’s not surprising that it has been active not just on behalf of its clients and employees, but to the larger community as well. Upon founding the business, Perce started an internal Mercy Ministry to support the employees and the community in times of need.

To date, that ministry has conducted numerous food and clothing drives and provided monetary support for individuals and families in crisis. The company has also supported numerous local charities, including the Boselli Foundation, The Sulzbacher Center, Make a wish Foundation, Heart for the Heartless and the MS Society.

Its major community focus, however, has been its association with Baptist Health Foundation, primarily through activities to benefit Wolfson Children’s Hospital.

“I am the founding and current chair of the One to Grow On Ultra Marathon, which raised more than $1.1 million to date, I served on the 2011 committee for The King of the Court Tennis Challenge, and we all participate annually in Wolfson’s Red Wagon Parade,” states Perce.

Along with the rest of the committee that conceived and implemented the Ultra Marathon, Perce made a three-year commitment (through 2013) to the race, with a goal of raising $1.5 million toward the purchase of a 3 Tesla MRI, a piece of equipment that will reduce the need for invasive exploratory procedures on children. This equipment will be installed in the new tower currently under construction at the hospital’s downtown campus.

“Learning the stories of children who have received care at Wolfson’s has been incredibly touching, and I am honored and proud to be associated with this incredible organization,” says Perce.

Another event connected with One to Grow On is Run 5 to Keep Kids Alive, a five-mile race that takes place during the overall event. iMethods is the title sponsor for the 2012 run and was the Internet Sponsor for the overall Ultra Marathon in 2011.

In the local business community, iMethods is a member of the Chamber’s Jacksonville IT Council (JITC) and is also active in multiple technology groups such as the Jacksonville Developers User Group (JAXDUG). Many of the JITC members are active in JAXDUG, which provides opportunities for developers to learn from each other through speakers, forums and mentoring, culminating in an annual educational intensive called “Code Camp.”

“We have supported this event in numerous ways over the years and enjoy the opportunity to share knowledge with our colleagues in the region,” says Perce.

Business planning

“For many years, we have followed Verne Harnish’s process for developing an annual One Page Plan for our business. As part of the Gazelles organization, Verne mentored us through a three-year entrepreneurial Master’s program hosted by MIT in Boston.

“While the plan is only one page, creating it is a complex exercise that helps solidify the company’s core values, purpose, and actions. The plan defines a one-year goal, a three-year target, key performance indicators (KPIs), and other valuable guideposts that keep us on track.

“Complementing the One Page Plan is our standard meeting rhythm, which follows the metrics outlined in the plan. Our teams have daily, weekly, monthly, quarterly and annual meetings that focus on communication and progress toward our stated goals,” says Perce.

“While this may sound like over communication, quick and effective meetings with well-defined agendas have been critical to iMethods’ success and momentum.”

Think differently to save cash instead of saving taxes this year

By Greg Crabtree, CPA

Every business owner knows the drill; you made a profit this year so you need to spend your cash to save on taxes. Try to think differently this upcoming year to “save cash” not “save taxes.”

The inherent flaw in spending your cash is that you have to spend a dollar to save 40 cents in tax, which just seems like a bad idea. You come up with excuses to spend money you think you would have spent anyway—you buy new computers, some extra supplies, a new vehicle because you heard you can “write it off.”

The point is that if you did without those costs up to December, maybe you did not need to spend it after all! Most successful entrepreneurs spend a dollar at the last possible moment it is needed.

Build wealth or save taxes?

You can only build wealth from “after tax” income, so every attempt to lower your taxes lowers your ability to create wealth. The number one key performance indicator of wealth creation is “how big of a check did your write to the IRS.”

If you did not write a big check, you either cheated or you did not make any money—both are bad. Do not pay more taxes than you should, but you should be focused on building wealth above savings taxes.

What if I am cash basis?

For those who are a cash-basis businesses, you can easily fall into the trap of draining your cash paying off vendors at year end. While this seems enticing, you eventually take it to the illogical extreme and have such a huge amount pushed forward it causes you to make sloppy decisions at year end.

Here are just a few of the issues that you could encounter:

•Bank financing. Your year-end financials are more important than ever these days. By focusing on taxes instead of good business fundamentals, you distort your balance sheet at year end and spend the next year explaining why your balance sheet looks bad at December so you can get your line of credit or bonding renewed.

•Missed opportunities. Because you dumped all of your cash in December, it takes longer than you think to build it back in January and February. By not having cash available to start new projects, you delay or miss out on new opportunities. To delay acting on an opportunity wastes a day of potential productivity that can never be recovered.

•“Deferring Taxes” versus “Saving Taxes.” Did you really save taxes or did you just defer them? Be honest with your language when you spend your year-end cash. It is not saving taxes unless you are saving at a high rate this year and you pay a lower rate in the future.

Not likely to happen. Most entrepreneurs defer taxes at year end and push their rates down into the lower brackets to end up paying at a much higher rate in the future when they have kicked the can as far down the road as they can.

•Borrowing money to finance that year-end equipment purchase. This is the ultimate tax trap. You borrow $100,000 to buy that new piece of equipment (that could have been delayed) and you end up taking the expensing election on the equipment. Inevitably, this purchase pushes you down into the 20% or lower bracket.

The only way to repay debt is to make after-tax profit. To make enough profit to repay the loan, it pushes you into the higher brackets and you end up paying close to 40% tax to generate enough cash flow to get out of debt (if you are lucky).

A better way to think

You need to approach taxes as the logical outcome of a profitable business that is your primary wealth-building engine. These are the keys to make this happen:

•Owners wages. Set your wages out of the business at a market rate for the job you have in the business. Then live off of that wage. Do not fall into the trap of consuming the profits of the business.

•Get profitable with the business you have. Once you properly set your wage as an owner, your net income gives you a true picture of the profitability of your business. If you are not profitable, the key is to make all labor productive and eliminate any labor that does not add value. You have to get your current business model profitable before you grow.

•Grow your own capital. Once you are profitable, retain after tax business profits until the business is fully capitalized. One definition of being fully capitalized is having two months of operating expenses in cash with nothing drawn on a line of credit. A business that has two months of cash can act on opportunities as they come up and you do not need to “get permission” from your banker.

•Get shareholders healthy. Once the business is fully capitalized, you can then take distributions to get your personal finances healthy. Get out of debt first (yes, that means all debt… including your home!), and then build up your emergency fund.

•Strategically redeploy profits. Once your business and personal finances are stable, then you can make strategic decisions about the after-tax profits of the business and decide if you want to grow the business larger or just continue to harvest the profitability of the business.

•Beware of “consumption cancer.” Everything you buy owns a piece of you and creates a financial drag. If you learn to live off your wages and leave the profits of the business for wealth creation, you have mental clarity of what produces wealth, what is investing and what is consumption. If you set a lifestyle target before you have the income to act on it, you will stand a better chance to control consumption.

It is time for entrepreneurs to get back to fundamentals and build profitable businesses that do useful things and grow your own capital. Stable businesses are the ones that create jobs that last and build a strong economy that can weather the storms of the market.

Greg Crabtree has worked in the financial industry for more than 30 years and founded Crabtree, Rowe & Berger, PC, a CPA firm dedicated to helping entrepreneurs build the economic engine of their business. In addition to serving as the firm’s CEO, Crabtree leads the business consulting team—helping clients align their financial goals with their profit model and their core business values. He is the author of Simple Numbers, Straight Talk, Big Profits! He can be contacted through www.seeingbeyondnumbers.com.

“I think the last time I played kickball before I started playing in this league Jimmy Carter was president,” jokes Johnson. “But I find it a great way to stay fit and the people are great. I may be the slowest person on the team, so it’s not a pretty sight when I am up at bat, but I have a great time playing.”

Johnson got involved with adult kickball about four years ago through a website called MeetUp.com, which is where people can “meet up” with other people with a common interest, such as wine tasting, flag football, happy hour groups, small business networking groups, book clubs, etc.

“I started back in 2007 with one group and through that I got an email about a kickball group. I emailed back for details and decided to go,” says Johnson.

Let’s kick it!

That meeting ended up segueing into the World Adult Kickball Association or WAKA (www.kickball.com). “Basically, it was a practice—but I had such a blast that when they asked if I wanted to join the league, I couldn’t say, “No!”

The leagues are made up of four to 16 teams of co-ed adults (ages 21 and over) of all skill levels and thegame is played just like the elementary school game—with the big red playground ball. Each team has somewhere around 20 people and the rules state that you have to have at least four guys and four girls to play and you can play up to 11 on a team.

“One other fun aspect are the team names,” says Johnson. “They are usually clever and a little risqué, but still off a kickball theme. My first team was called ‘New Kicks on the Block,’ while one of my more recent team names was ‘Pitches Be Crazy!’”

Time out

Johnson especially likes that kickball doesn’t really take a lot of his time. A WAKA kickball season generally consists of eight regular season games and a league championship tournament with qualifying teams from each league being eligible to compete in the annual Founders Cup World Kickball Championship held in Las Vegas.

“There are three leagues a year—summer, fall and spring—but I don’t/can’t do the spring season because of tax season,” says Johnson. “There is usually only one practice a week, but basically you show up on Thursday night ready to play.”

Johnson’s team meets at Carver Park, where the game is designed to be played for six innings or within one hour. “You remember playing it as a kid and it being competitive and good natured, and here you are playing it again with adults, a referee, scoreboards, schedules, league standings, and playoffs,” says Johnson. “But at the same time, we all know there is a lot more to life than kickball.”

Competitive edge

This past season, WAKA split the league into a competitive side (a little tougher and a sidearm ball pitch) and a fun side (slower ball pitch), of which Johnson chose the competitive side. “I want to be competitive; I don’t want to be a wimp. I’m out to win!” jokes Johnson. “The thing about the leagues is, yes, everyone wants to win and, yes, you want to be competitive, but it’s really about the social aspect that is more important.

“I started doing this in ’07 and I’ve noticed that it is tougher to play now than it was when I started,” says Johnson. “Physically I can tell I am older now than I was just a few years ago, but I intend to keep playing as long as my body holds out.”

Keith E. Johnson CPA, is owner of Keith E. Johnson CPA PA in Jacksonville, Fla., a full-service CPA firm providing accounting, auditing, consulting, and tax services to individuals, businesses, and non-profits. He can be contacted at 904-727-0077 or kejcpa@comcast.net.

By Polly White

To paraphrase an old saying, employees are not your greatest asset—great employees are your greatest asset. Whether your organization is large or small, make sure you set the stage for their success by creating a positive first impression by implementing these five “musts”:

1. Have a plan. The difference between a worker who becomes productive quickly and one who languishes is often how well they are oriented to their new company. The first hours and days of an employee’s new career are the time when they become acquainted to the requirements and expectations of their job, the culture of the organization and where and how they fit into the company.

You can greatly increase the speed at which your employees become fully productive by having a personalized orientation plan in place for their onboarding. The plan should balance time spent learning about the organization and their coworkers’ responsibilities with his or her specific job duties.

It is not necessary that their first hours be spent filling out the myriad of employment-related forms. This may be convenient for HR, payroll or accounting, but does not create the best first impression. While the employee will eventually need to fill out certain forms, most federal and state requirements allow the new employee and your company several days to complete the task. Spending your first hours creating a friendly, comfortable and productive experience for the employee is a better use of time.

2. Have a place for your new employee to call their own. Whether the employee will have a desk, a locker, a workstation, or a peg on the wall, you should have it labeled, clean and stocked with all of the equipment the employee will need to do his or her job. Nothing says, “We really want you to be happy and productive” like a well-appointed workstation.

When desks and workstations are left empty for any length of time, two things happen. First, any useful equipment, office supplies or gadgets seem to walk away. Second, the empty desk becomes a dumping ground for stacks of papers, files and other debris. The day before the new employee is to arrive, take a few minutes to restock the workstation and clean off unnecessary clutter.

3. Introduce them to their co-workers. Most businesses provide new employees with the standard tour and introduction. While this is a step in the right direction, there are ways to increase the benefit to the organization. Spend at least part of the first day celebrating the arrival of the new employee.

Have coffee with everyone on the team, allowing time for socializing and rapport building. If possible, add a donut or other snack into the mix. There is nothing like food to help with bonding and creating great memories.

4. Choose carefully when involving others in the onboarding process. Watch out for the “curmudgeon buzzard”— the longer-term employee who feels obligated to swoop in on your new employee and explain to them in great detail why coming to work in your organization may be the biggest mistake of their career. They peck away of the employee’s confidence regaling their new colleague with stories of times when management was unfair or unkind to the rank-and-file.

The curmudgeon buzzard carries a great deal of baggage with them that must be unloaded on the unsuspecting newbie. They are only effective, however, if they can poison the new employee before he or she has fully formed his or her opinion of the company.

Keeping the buzzards away from your new hires during the first few hours or days of their employment will allow the new employee to form a favorable impression of your company—one that will be hard to change. Coach the new employees yourself or assign them to employees who will represent your company in its best light. The rewards will be long lasting.

5. Outline what the new employee needs to accomplish to succeed—then set them up for success. Finally, explain to your employee what you want them to accomplish in his or her first days on the job. Understanding exactly what you want them to do and how you will measure their success will increase the new employee’s confidence and the likelihood that you will get great performance.

Make sure the tasks you select are ones that 1) will be part of the employee’s routine assignments, and 2) are very doable. Remember, you want the employee to succeed in the early days so that they will be eager to take on the more difficult work that lies ahead.

Polly White is a principal at Whitestone Partners. She has more than 20 years of experience working with companies to improve the skills, behaviors and attitudes of their workforce. Her career has included roles in administration, human resources, curriculum and employee development. She is a noted author, speaker and instructor and has worked for companies ranging from small start-ups to Fortune 100 corporations. She can be reached through www.whitestonepartnersinc.com.