Patrick Bubin, PTAC and Ed Kiessel, Armor Express

The Workforce Development Board of the Northwest Michigan Council of Governments recognized Central Lake employer, Armor Express, for their nomination as regional contractor of the year by PTAC at their quarterly meeting on February 11, 2008.

Ed Kiessel, CFO of Armor Express, was presented a plaque by PTAC Coordinator, Patrick Bubin, on behalf of the Workforce Development Board. Kiessel expressed the company's gratitude to PTAC and Northwest Michigan Council of Governments for their assistance.

	Dave Adams and Jan Kuras

On February 11, 2008, the Workforce Development Board recognized Jan Kuras and Mary Marois for their service to the board. Naomi Singer and Mike Blanchard were also recognized for their years of service to the Education Advisory Group.

Jan Kuras was from Midwest Forge Company in Kalkaska; she retired from the company and the Workforce Development Board in December. She served on the board for eight years.

Mary Marois and Dave Adams

Mary Marois was the Director of Grand Traverse/Leelanau Department of Human Services. She is retiring this month from the Board and from DHS. She served on the board for two years, and was also a member of the board for several years in the past. Her seat on the board will be filled by Dave VanHouten, Director of Wexford/Missaukee Department of Human Services.

Two retiring members of the Education Advisory Group (EAG) were also honored at the board meeting. The EAG is a state sanctioned board composed of representatives from education on all levels: local districts, post-secondary institutions, teachers, intermediate schools districts, and parents. The EAG advises the workforce development board on educational issues.

Mike Blanchard was the Director of the Wexford-Missaukee Career Tech Center. Naomi Singer was the Director of Early Education for the Charlevoix-Emmet Intermediate School District. Both Mr. Blanchard and Ms. Singer served on the EAG since its inception approximately 10 years ago.

	Jennifer Kowal, Joe Bottenhorn, Sandra Franklin

Kalkaska Michigan Works! Business Liaison, Joe Bottenhorn, regularly hosts "Best Practices" for businesses and organizations in Kalkaska and Grand Traverse counties.

On January 31, 2008, the group participated in mediatory role playing to better understand how mediation services can save time, money, and enhance productivity.

Jennifer Kowal, program director of Community Reconciliation Services (CRS) in Traverse City was the guest presenter. She was accompanied by Sandra Franklin, attorney and certified mediator, who assisted in the role playing.

Mediation is oftentimes an excellent alternative to litigation or arbitration, which can be a very long and costly process.

"Approximately 95% of the time, disputes are settled out of court," stated Kowal. "Mediation provides a good alternative and usually, the court will order mediation anyway, before handling a dispute."

Kowal showed how mediation also helps groups to regain their focus. "Sometimes a third party can bring a group back together and get them on track," she said. "It doesn't have to be a dispute."

Those in the Best Practices group learned that mediation services are private and confidential, mediators are selected by the involved parties, it has flexible scheduling, parties make their own decision, it's non-binding unless an agreement is reached, it's low risk, and very low cost--all good incentives for individuals and businesses.

"Mediation empowers disputants to come to their own resolution. A mediator helps to organize the agenda and issues to help the parties communicate and work through their issues," said Franklin, who is one of the many volunteer mediators for the organization, which is funded by state and local grants.

The Best Practices Business Group meets approximately six times a year at the Kalkaska Michigan Works! office, 103 Third Street (next to the Post Office). For more information on this topic or the Best Practices group, please contact Joe Bottenhorn, Business Liaison, Michigan Works! at jbottenh@nwm.cog.mi.us

	Stephen M.R. Covey

The Speed of Trust: An Evening with Stephen M.R. Covey is set for Wednesday, October 22, 2008, in the Governor's Hall at the Grand Traverse Resort.

The dinner event is sponsored by the Traverse Area Human Resource Association (TAHRA) and the Northwest Michigan Council of Governments.

Click Here to download and print a registration form. Seating is limited, so please register early.

Please contact Chris Wendel at (231) 922-3780 for further information.

Armor Express of Central Lake was selected by Northwest Michigan Council of Governments and the Procurement Technical Assistance Center (PTAC) to receive the Regional Government Contractor of the Year Award.

An array of government officials were on hand at the December 12th press conference held onsite at the Armor Express facility.

Patrick Bubin from PTAC presented a plaque to commemorate this prestigious nomination. Congressional Aide Roger Srigley read a letter of congratulations from U.S. Representative Bart Stupak.

Michigan State Representative Kevin Elsenheimer, Andy Hayes of the Northern Lakes Economic Alliance, and Lydia Murray of the Michigan Economic Development Corporation were also among the group of wellwishers.

The regional PTAC award nominated Armor Express as one of a dozen companies in the state to be considered for the Best Small Business - Government Contractor of the Year, awarded by the MEDC. All 12 Michigan PTAC's nominate one company each - with the finalist to receive the statewide award at MEDC's annual Michigan Celebrates Small Business event, which will be held next spring.

Armor Express has experienced rapid government sales growth as a result of its General Services Administration (GSA) Federal Supply Service Contract which became effective January 1, 2007.

The company opened its doors in May 2005 with 10 employees. Armor Express now employs over 80 people.

"Our relationship with PTAC has been invaluable in traversing the complex government channels needed to obtain a GSA contract," said Brian Buchanan, Armor Express GSA Sales Manager. "Additionally, PTAC's ‘bid package' assistance has been an important component in our successful attainment of several large government orders."

Matt Davis, President and CEO of Armor Express added "Our GSA contract has proven to be a powerful vehicle to get our quality products in the hands of government agencies. We really appreciate the support we've received from PTAC and the Northwest Michigan Council of Governments."

A service of the Northwest Michigan Council of Governments, the PTAC helps companies learn about working with government agencies, and assists in the process of obtaining business. Business to Government (B2G) channels present challenging regulations, red tape and technical detail - for which PTAC furnishes help, counseling, and training at no cost. The PTAC works with companies having an interest in the government marketplace - including state and federal channels - as an aspect of regional economic and workforce development.

Armor Express (www.ArmorExpress.com) is an ISO 9001 registered company located in Central Lake, Michigan, and provides quality body armor with unparalleled protection, comfort, wearability and service.

Paul and Bridgette Barbas were pursuing their dream of opening a Greek restaurant in Traverse City. The couple saw what they perceived to be a demand in the area for Greek food, and Paul had plenty of experience managing restaurants. Though they felt their business plan was solid they sought assistance in making sure they were making all of the right choices.

Paul was referred to Bryce Dreezsen, a business consultant with the Michigan Small Business & Technology Development Center (SBTDC). Hosted locally by the Northwest Michigan Council of Governments the SBTDC provides counseling, research, and training for new and existing businesses in our 10 county region.

Bryce worked with the Barbas' business plan and suggested improvements to the plan's marketing and financial components. With Bryce's knowledge of local lending sources, the Barbas were able to secure the funding needed to insure both short and long term success. Since opening this summer, Opa! has gained a loyal following with its warm atmosphere and great-tasting Greek food.

The Michigan Small Business & Technology Development Center, Region 2, serves 10 counties in Northwest Michigan. Please contact:

Chris Wendel, Regional Director
Phone: (231) 922-3780
Email: cwendel@nwm.cog.mi.us

Many in our region have been dreaming about farming - and actually making money at it. For them, the Get Farming! Entrepreneur Series has been the place to be this winter.

The series is designed to help the next generation of farmers get those entrepreneurial ideas out into the field! The course fee of $85 covered seven classroom sessions, field trips to area farm and food businesses, one-on-one business counseling, and a selection of bonus workshops.

Classes ran on Monday nights from 7 to 9 p.m. at Michigan Works!, 1209 Garfield Ave. in Traverse City.

Contact course organizer Julie Hay at the Michigan Land Use Institute, for more information on future classes: 231-941-6584, ext. 19 or julie@mlui.org.

Beth Holmes-Bozung and Greg Bozung, owners of SafetyNet, receive an award from MI-SBTDC Director Carol Lopucki and Regional Director Chris Wendel

East Lansing was the site of the Michigan Celebrates Small Business awards banquet on Thursday, April 12, where more than 700 people gathered to honor entrepreneurs and small businesses in Michigan. Included among them were Greg Bozung and Beth Holmes-Bozung, owners of Traverse City-based SafetyNet, who placed in the top three of the Main Street USA Best Small Business Award category.

"SafetyNet was honored because of its innovation in technology and growth in Northwest Michigan," says Chris Wendel, Regional Director of Michigan Small Business & Technology Development Center (MI-SBTDC). "We have been working with Greg and Beth since they began, and are proud to see that their success is providing advanced technology solutions to area businesses."

SafetyNet provides point of sale technology solutions for retail establishments and wineries. They are also a provider of outsourced information technology services.

The Michigan Celebrates Small Business awards were established to honor the lifeblood of Michigan's economy - small business. Five of the organizations that support and celebrate entrepreneurism in Michigan joined together to create the awards: The U.S. Small Business Administration - Michigan, The Small Business Association of Michigan, The Michigan Economic Development Corporation, Michigan Small Business & Technology Development Center (MI-SBTDC), and the Edward Lowe Foundation. The Main Street USA Best Small Business category recognizes a client of the MI-SBTDC in each region.

The Michigan Small Business & Technology Development Center is hosted ocally by Northwest Michigan Council of Governments, and provides counseling, training and research to entrepreneurs and existing small business. For more information about MI-SBTDC, visit their web site at www.misbtdc.org/region2 or call (231) 929-5076.

The Traverse City Area Chamber of Commerce and Northwest Michigan Council of Governments have partnered to offer an online, interactive directory of resources for area businesses.

The services listed in this directory are offered by local businesses and organizations, and range from recruiting employees to writing business plans to assistance with regulatory issues.

You can search for services you need, and post the services offered by your business or organization.

Click here to visit the Workforce Development & Business Resource Center web site.

	Todd Olson, PTAC Program Director and Tom Maguire, US Dept. of Commerce

Exporting Workshop: Selling to International Markets, sponsored by Northwest Michigan Council of Governments, was held on April 22^nd in Traverse City. The seminar provided information and connections to enable business expansion into global markets.

Tom Maguire of the U.S. Department of Commerce spoke on assessing your export readiness and how to develop global sales using Free Trade Agreements, market research, and international distributors. "If you don't look at exporting, you are doing yourself a disservice," Maguire said. "Not everybody has an exportable product but many people have exportable products they are not aware of. But you have to take that step."

With a relatively weak dollar in 2008, the products of U.S. companies are more attractive and affordable to foreign buyers. "You have such an advantage as an American supplier that you must look at the opportunities to see where you might be able to sell."

The U.S. Department of Commerce has a presence in 200 countries in United States embassies. "If you have something great to sell, you've got to tell people you have something great to sell. Right? That's what we do."

	Bill Richeson, National City Bank

Bill Richeson of National City Bank provided information on banking products and services which support international business. There are many factors to consider when structuring international sales such as foreign financing, working with overseas banks, managing risk and insurance, tax incentive zones, landing costs, and letters of credit. "A bank can help structure your international transaction so that you will get paid," Richeson said.

	Tim Wing, FedEx

Tim Wing of FedEx provided information on shipping to Canada including how to handle country and provincial taxes for your customers and ways to reduce shipping costs.

One attendee, Paul Seeley of Fiamm Technologies in Cadillac, was at the seminar to learn about shipping directly to their after market automotive customers. "I learned from FedEx how we can do our exporting to Canada. We wanted to see if we could eliminate a warehouse in Mississauga, Ontario by shipping direct rather than having two shipping costs-one to our warehouse and another to the customer. I was also here to learn more about bank financing and letters of credit."

Sonja Johnson of the Van Andel Global Trade Center presented information about the services and support they offer through their outreach to businesses engaged in global trade. "One of our biggest resources is our networking arm. We make two to three matches per week. For example, we might bring manufacturing company ‘A' together with company ‘B' because they do sales into Brazil. Company ‘A' can learn what works, which banks should be used, how to set-up a sales rep, what financing issues need to be addressed and so on. Many of the businesses we work with are start-up businesses doing up to $30 million gross per year."

Business workshops such as this one are regularly sponsored by the Northwest Michigan Council of Governments including information on selling to state and federal agencies provided by the Procurement and Technical Assistance Center located in Traverse City.

Click Here to view Tom Maguire speaking on exporting (3 minutes 35 seconds).

Please contact Todd Olson, PTAC Program Director, for more information: (231) 929-5036 or toddolson@nwm.cog.mi.us

	Todd Olson, PTAC Program Director

The Northwest Michigan Council of Governments is pleased to announce the appointment of Todd Olson as program director of the Procurement and Technical Assistance Center of Northwest Michigan.

Mr. Olson spent 14 years in the United States Marine Corps leading and training Marines in infantry tactics, logistics, and embarkation support. In 2001, he left the military to pursue a career in business. Todd graduated from Baker College of Cadillac and Baker's Center for Graduate Studies with an MBA in Leadership. He has experience in manufacturing and in the service/supplier industry as an advanced management partner.

As PTAC program director, Todd Olson aspires to match businesses in Northwest Michigan with government contracts to stimulate job growth and retention in northern Michigan.

He may be contacted at (231) 929-5036 or by Email: toddolson@nwm.cog.mi.us

The Northwest Michigan Sustainable Business Forum, a program of the Northwest Michigan Council of Governments, is sponsoring a workshop for restaurants and others in the food hospitality industry on reducing waste and increasing profits. The free workshop, sponsored in part by Boyne USA will be held on Wednesday, April 9^th, 8:30 AM to 11:00 AM at The Inn at Bay Harbor on US 31, south of Petoskey. Several guest presenters will reveal practical ways to reduce pollution and waste while increasing profits. A continental breakfast will be served.

Pat Donovan, Field Representative in the Michigan Department of Environmental Quality's Pollution Prevention and Compliance Assistance Section located in Cadillac, will give a presentation on Fats, Oils, and Grease (FOG). Mr. Donovan will discuss the costs, control options, and the results of a survey of restaurants. "In the past, FOG control was not a high priority. It was considered just a cost of doing business. Now times have changed; by acting proactively, businesses really can cut certain costs," stated Donovan.

Renae Hesselink, Vice President of Sales and Marketing for Nichols, Inc.; Chair of the Michigan Chapter of U.S. Green Building Council Marketing Committee; and Advocate for LEED for Schools will present "Green Cleaning: More That Just Switching to Green Chemicals." Implementing a full green cleaning program involves more than just switching to green products. Hesselink will reveal the five basic steps to implementation.

Elisa Seltzer, Director of the Emmet County Department of Public Works will present information on their recycling program and what recycling options are available for restaurants and food hospitality businesses. The Emmet County Department of Public Works would also like to obtain input from the participants on their interest and potential volumes.

To register for this free workshop, please contact Patty O'Donnell, Regional Planner; Northwest Michigan Council of Governments at (231) 929-5039 or email pattyodonnell@nwm.cog.mi.us.

	Christoval Sanchez accepts his award while Dave Adams, Workforce Development Board chair, looks on.

Christoval Sanchez is not your average high school graduate. More than 20 years ago, during a difficult time in his life, Christoval dropped out of high school.

At the age of 39, despite homelessness and no motor vehicle, he worked double shifts and earned his high school diploma at the Michigan Works! Learning Lab in Traverse City. Christoval was asked to speak and share his story at his graduation ceremony.

Currently, he is studying in M-TEC's Bridge Program to solidify his educational foundation for college. He plans to earn his Microsoft Specialist certificate from M-TEC, graduate from Northwestern Michigan College, then attend Ferris State University at NMC's University Center to become a social worker.

Christoval hopes to help people as he was helped and to be a good example to his children.

At a board meeting on Monday, December 12, 2007, the Workforce Development Board recognized the academic accomplishments of Christoval Sanchez.

Click Here to watch the Real People, Real Lives video story of Christoval Sanchez.

Northwest Michigan companies with an interest in B2G (Business to Government) sales channels now have an easier time accessing free help from the Procurement Technical Assistance Center (PTAC). On “B2G Wednesdays” the PTAC will hold office hours in locations throughout Northwest Michigan. Businesses can schedule an appointment to discuss their potential for selling to government agencies.

The government marketplace can be another avenue to grow a business - B2G sales channels include both federal and state procurement.

Once the dates are posted for 2008, please call (231) 929-5076 to schedule an appointment. And those interested always have the option of requesting a meeting at their workplace (for any day of the week), or can make an appointment to meet at the PTAC main office in Traverse City.

B2G Wednesdays have been conducted in Petoskey, Boyne City, Kalkaska, Manistee and Cadillac and new dates will be posted for sessions in 2008. Office hours are typically scheduled at the NLEA in Boyne City, the Chamber of Commerce in Petoskey and Cadillac, or at the Michigan Works! Centers in Kalkaska, Manistee, Petoskey, and Cadillac.

A service of the Northwest Michigan Council of Governments, the PTAC helps companies learn about doing business with government agencies, and assists in the process of obtaining contracts. B2G channels present challenging regulations, red tape and technical detail – for which PTAC furnishes help, counseling, and training at no cost. PTAC also provides free automated “bid-match” subscriptions; specifications, standards, drawings or other technical documents; and export assistance referrals. For more information, visit the web site at www.nwm.org/ptac.asp or call (231) 929-5076.

Try explaining to someone what a Procurement Technical Assistance Center (PTAC) is during one of those conversations on an elevator. It could be tough to convey to your fellow passenger in the usual amount of ride time between floors.

A helpful concept may be to think of the PTAC as B2G – Business to Government. Many audiences will recognize descriptions of typical marketing channels such as B2C (Business to Consumer) or B2B (Business to Business). But a go-to-market strategy that entails selling and servicing the government is not so sexy or glamorous – as a result, B2G doesn’t quite have top-of-mind status by comparison.

B2C has all the “sizzle”, such as advertising in traditional mass media or on the Internet. And it’s fair to say that B2B marketing messages are under the radar of most audiences (consumers). Although B2G doesn’t have much sizzle, it does have the “steak” – governments buy a lot of goods and services.

The role of a PTAC is to help companies and entrepreneurs assess their readiness for doing business with government agencies – and to assist them in jumping through all the hoops it takes to get there.

One of 12 PTACs in the state, the Northwest Michigan Council of Governments (NWMCOG) is host agency for the PTAC that covers our 10-county region (plus the western two-thirds of the Upper Peninsula). Primary grant funding is awarded by the U.S. Department of Defense – along with that of the Michigan Economic Development Corporation (MEDC) and matching local funds.

A basic rationale for creating PTACs was so there would be an array of cost-conscious suppliers to the various defense agencies – to nurture and bolster the nation’s preparedness for an eventual time of need. Although national defense and the military continue to be the main beneficiaries, we actually help businesses work with any federal agency.

Beyond that, PTACs are seen as playing a role in economic development, at the federal, state and local levels. The U.S. government procures about $250 billion worth of goods and services annually – so positioning companies to be part of that can pay off in terms of helping to create and retain jobs and dollars for communities or regions. And we can assist when it comes to doing business with the State of Michigan.

We also keep open two-way lines of communication with elected officials – primarily state and federal legislators, like the Traverse City office of U.S. Senator Carl Levin.

There are about 100 PTACs across the nation, with a variety of host agencies. Many PTACs are based at universities or community colleges, with others hosted by local chambers of commerce or economic development organizations. There are advantages to being hosted by a council of governments. Since NWMCOG partners and collaborates with numerous organizations on a regional basis – the B2G program can be broadly applied across a variety of boundaries.

For example, because of the PTAC’s economic development role - the existing close working relationship with the Traverse City Chamber of Commerce, Traverse Bay Economic Development Corporation (TBEDC) and Northern Lakes Economic Alliance (NLEA) is being enhanced. A new initiative is also now under way to expand the PTAC’s work with the Manistee Economic Council and Chamber Alliance (MECCA), as well as with the chambers of commerce in key towns like Petoskey, Cadillac, and beyond.

The initiative will consist of a regular schedule of “on-site” days for the PTAC to hold office hours at various partners’ facilities throughout the region. The venues may include Michigan Works! centers, chambers of commerce and local EDC’s.

The plan is to offer local businesses the chance to make appointments during the on-site office hours – or as always, clients may opt to schedule a visit by the PTAC (at their workplace for another day and time).

Significant collaboration also takes place within the COG organization itself – the most visible being with the Small Business & Technology Development Center (SBTDC). Frequently the PTAC will tag-team with Chris Wendel and Deb Donovan to provide counseling to certain clients. At the very least, we raise awareness of one another, and make referrals as needed.

And with the workforce being such a key factor in economic development, the PTAC also partners with the region’s Business Liaisons (BLs) of Michigan Works! The BLs provide leads or referrals from employers they are working with – when the company has an interest in learning more about B2G.

As an example of how the COG helps create efficient and effective economic development collaboration – team retention calls are made on businesses in the region by a Michigan Works! BL, with MEDC’s Lydia Murray and Tino Breithaupt of the TBEDC. The PTAC gets involved with a referral from the retention team, or could join in the call up front when it’s known that B2G will be a topic to be addressed on the spot.

We also reach out to the Veterans Employment Specialists housed at Michigan Works! centers. Businesses that are owned by veterans or service-disabled vets are among those receiving PTAC assistance.

Another strength of the COG will be the possibility to engage government procurement practitioners at local municipalities – in other words, the buyers or purchasing decision makers at counties, cities, townships and villages in the region. Such an effort would provide another avenue to help the region’s companies grow their business by expanding into local B2G.

The B2G channel presents challenging regulations, red tape, technical detail, and on-line information systems – for which we furnish help, counseling and training. We also provide free automated “bid-match” subscriptions; specifications, standards, drawings or other technical documents; and export assistance referrals.

For more information, contact Deb Donovan at (231) 929-5076.

So if you ever find yourself discussing PTAC’s – think B2G, whether or not the conversation takes place in an elevator.

Chris Wendel

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty. 

The word entrepreneur is derived from a French word meaning to undertake. In modern American terms the word is commonly used to describe a person or business that takes the risk of taking money and making an idea, good, or service succeed.

The successful entrepreneur within a community is seen as both a business leader and an innovator of new ideas and business processes. Pretty heady stuff for someone who is likely just doing what is instincts tell him (or her) to do. To many, being entrepreneurial is just old fashioned problem solving with a little imagination thrown in for good measure.

The question then becomes: Is this entrepreneurial mindset an innate skill one is born with or is it developed? My answer would be, a little of both. I like to think that I have the ability to create and adjust in variety of situations myself. And it's not a coincidence that I come from a family of serial entrepreneurs.

My grandfather was instilled with the attitude of making the best with the conditions that exist. Born at the turn of the last century in a family of modest means and resources, he was a great example of someone with that combination of discipline and when calculated, risk taking.

A few years after starting a small engineering company literally in his garage, he put a bid in on the design of a two mile stretch of the New York State Thruway. At the time the four-lane Thruway was the original part of the Interstate Highway system in the 1950's. To his surprise he was awarded the bid despite the fact that he was a one person operation.

Instead of thinking he was in over his head and walking away, my Grandfather saw the potential opportunity and hired several contract engineers from a nearby General Motors facility. That in itself is entrepreneurial: Being able to think of ways to grow a business and choosing the right time to take calculated risk. By the way, that small garage based engineering company with guidance and risk taking from my grandfather and father, today employs over 400 employees.

In today's world the landscape changes much faster than it did 50 years ago. It's best to know your entrepreneurial strengths, look for opportunities in the market place, and have the flexibility within your company to adjust and take advantage of those opportunities that aren't too risky.

Even if you're not in business for yourself it is possible to apply these entrepreneurial principles to your own work or even home situation. Within your own world you can adopt a new attitude of doing more with less (efficiency), while looking for new ways to improve your household, job and company.

Don't be thrown by the doom and gloom of the nightly news reports. Those who can take adversity and reinvent themselves will be the ones that succeed. That in short is the true definition of entrepreneurship.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty. 

There are numerous ways to finance a business, many of which demonstrate just how entrepreneurial small business owners can be when funding a project or idea. If it's gathering money to make Friday's payroll or to start a small company out of your home, here are some well circulated financing myths that need to be explained.

Myth #1: Only a Bank Can Finance My Business

Commercial banks are a great source for capital for an existing or new business but there are a variety of other sources of money that are often overlooked. Friends and family members can be a great source for a small startup business. In fact it is estimated that 58% of America's fastest growing businesses started with $20,000 or less in startup money. It is likely that many of these successful entrepreneurs started with some funding from a friend or family. In these borrowing situations, be careful to have a clear written agreement that outlines the expectations and terms of the loan for both the borrower and lender.

Other lending sources include credit unions, private investors, and one's own personal assets. There are now lending web sites (i.e. prosper.com) that take a pool of available investors that bid on your business proposal. The web site acts as an intermediary taking money pooled from the winning lending bidders and then servicing the loan to the borrowing business.

Myth #2: Angel Investors and Venture Capitalist Will Finance My Business

Angel investors are high net worth individuals looking to invest in up and running companies with strong established management teams. Angels are looking for large capital gains on cutting edge breakthrough technology.

Venture capital investors almost always finance well established companies for monetary amounts higher than angel investors. Most venture capital comes from wealthy investors and financial institutions that pool their funds with the expectation of a fast and highly profitable return on their investment.

Many times, angel and venture capital investors will seek partial ownership in the company to which they are making loans. For the start up business, angel investors and venture capitalists are not likely sources money.

Myth #3: I'll Simply Finance My Business with My Credit Cards

Credit cards are used more than people think for new startup businesses. But this doesn't mean that it's a great idea. An individual with a decent credit rating would be better served with a line of credit or term loan from a commercial bank than racking up high interest credit card debt. Credit cards can be used only when it is assured that the balance can be paid in full before interest accrues.

Myth #4: Grants Are Available to Finance My Business

This urban legend is still making the rounds perpetuated by junk email blasts, classified ads in the back of magazines, and late night infomercials promising free money just for running or starting a business. Grants are available, but they are usually geared towards nonprofit ventures, foundations or research institutions that have a public cause in mind.

If something (i.e. free grant money) sounds too good to be true, it probably is. Most businesses that obtain financing do it the tried and true way. They save their money, write a business plan that proves the demand for their product or service, bootstrap and spend their money frugally, and work long hours. A company's ability to borrow money is directly proportional to all of these efforts.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty. 

I'm asked at least a few times a week, what kind of business could make a good go of it in our region. In the startup business classes I facilitate, I ask the same of my students and come up with some interesting results. We look for ideas that have worked in other parts of the country and work through their business models for viability potential.

Before we reveal some of our favorite suggestions I need to attach a disclaimer: Just because a business has been successful in other parts of the country does not mean that it will work in the Grand Traverse Region.

Natural Foods Grocery Store
This is one that has continuously mentioned over the past few years. The model is for a store similar to Whole Foods, Wild Oats, or Trader Joes and is based on a local population base of 100,000. In addition, these types of stores locate in towns where 60% or more of the population is college educated. I still believe there is room for a natural food alternative that combines natural grocery products, organic produce, and fresh local foods, with superior service.

Brewvies
Borrowed from Portland, Oregon where someone took the idea of an old time movie house that serves beer brewed at an onsite or nearby microbrewery. Food such as pizzas can be brought in and the atmosphere is as one could imagine is loose and somewhat laid back.

Bowling Alley
Traverse City has one bowling alley but is it enough for a town of its size? Smaller alleys exist in Cadillac, Manistee, and Beulah and bowling centers nationwide have the lowest failure rate of almost any business (pawn shop are the lowest). High start up costs have likely put this out of reach for aspiring owners but plans for a new bowling center is on the boards in an area south and west of Traverse City.

Family Fun Center
Local parents clamor that there are few places for parents to take their kids for entertainment. While Chucky Cheese seems like a natural for the region, the company is privately held and would consider it risky to open with a limited population base.

Drive Home Car Service
The idea here is to provide a service that can pick you up at a restaurant or drinking establishment when one has, what is the expression, tied too many on? The service takes you and your car back home instead of you risking the lives of others and a potential DUI. This business does exist in a least one other areas with some success.

One can see that the ideas are varied and analyzing them individually is a challenge. If you have a great idea for a business that you'd like to share send me an email at cwendel@nwm.cog.mi.us. We'll share the results and break the concept down over the next few weeks.

A Way to Attract Jobs or Corporate Welfare?

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Banter abounds concerning the use of taxpayer monies for spurring on economic growth. The use of tax abatements, tax breaks, and financial incentives to the outsider may appear in the broad view to be a waste of our valuable tax dollars. Yet if our local and state economies operate strictly by the non-government free enterprise credo, jobs will continue to flow to the states that take a more aggressive stance.

The recent overhaul with the Michigan Business Tax replacing the Michigan Single Tax will help retain some existing of our existing area businesses. However, for the next few years the State of Michigan budget situation will not allow business tax rates to become attractive to potential out of state employers.

In a perfect Adam Smith (the famed Scottish economist, writer, and yes, government worker) world, we could do away with taxes and incentives and leave private business to the forces of the free market system. Unfortunately, that horse left that barn long ago and a heated state versus state competition exists for any company that shows the promise of growth and decent paying jobs.

If we as a state decided to not spend another dollar on economic development and let the market forces take over, there would not be much of a market left. Neighboring states like Indiana already offer lower tax rates and incentives that Michigan is just now starting to compete with. In order to compete on a national perspective, Michigan has to also overcome the stigma of negative national media coverage and the difficult transition into alternative technology outside of the auto industry.

The Michigan Economic Development Corporation (MEDC) uses its resources to retain, promote, and attract small, medium, and large companies to Michigan. Tools such as site location assistance, job training grants, and tax abatement assistance do come with a cost but if these components were not available, our economic future would be even more perilous.

The MEDC also co-sponsors a promotional event "Michigan's 50 Businesses to Watch" that highlights emerging Michigan companies, is an advocate for other state business development programs, and houses the Travel Michigan, the state's tourism agency.

Without tax money and state resources being spent on economic development, we as a state will be out of the picture in terms of job attraction. If incentives are not offered in the form of tax abatements, loan programs, and promotion, then we can wave our future growth potential goodbye.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

We hear a lot of talk locally about the words "value added" especially in the area of agriculture. While "value added" may be more of a square to fill in a buzz word bingo game, the term has relevance with our area's burgeoning wine and farm businesses.

Definition: Increasing the productivity of a farm by:

1. Growing a commodity for a special market: Adding value to an agricultural product in a non-traditional way can command a higher market price. Selling bib lettuce to a local restaurant highlights that the product is produced in the local economy which enhances the perceived value to the end user.
2. Changing the form of a commodity is packaged before it is marketed: Transforming raw agricultural products into another product by processing. Frozen tart cherries can be cooked with sugar, pectin, and a small amount of fruit liquor producing a premium priced dessert topping.
3. Changing the way a commodity is packaged for market: This includes packaging that features convenient packaging (smaller sizes or "ready to go" gift packs), or decorative and informative packaging that enhances the presentation and the perceived value of the commodity.
4. Growing a Commodity for a Special Market: Producing products for a certain ethnic or cultural market. Organic foods fit this category as products that are purposely grown to the growing health oriented market.
5. Adding a New Enterprise: For the traditional farm this would mean the addition of a road side market with features such as a petting zoo, corn maze, wedding facilities, and bed & breakfast.

Source, USDA Natural Resources Conservation Service, AE-4 Importance

Michigan's economic situation has been a major topic of discussion of conversation in the past few weeks. But just how bad is the economy of Northwest Lower Michigan compared to the rest of the state or the nation? Unemployment figures show that many of our counties have lower unemployment rates compared to southeast Michigan where the auto industry has contributed a large number of job losses.

Circumstances in the Detroit metro area do have an impact on secondary automobile suppliers here in our region. Many of these companies have diversified into making parts for non-automotive companies. Like any other entrepreneur, the challenge for many companies during trying times is to create solutions and adjust to the conditions as they change.

The building industry is feeling the brunt of national and state economic conditions. The decrease in building permits for Northwest Lower Michigan is likely a combination of lower employment for the year round population, some foreclosures due to adjustable rate mortgages, and fewer downstate residents purchasing or building seasonal homes.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Many of the business lessons we learn come from the voices of our mentors. I catch myself sometimes uttering sage words of advice that came from my father including the phrase "You have to do well before you can do good."

With that engrained in my mind over the years, I have been a firm believer in making a company financially strong before giving much back in charitable or socially conscience contributions. As cut and dried as that seems, I've seen plenty of exceptions lately that have altered my point of view.

So as a business owner, when is the right time and the right way to give back? The most effective company programs for community involvement have some element of employee initiative. It can be something simple like employees coaching their kids' teams and evolve into the company sponsoring the kids' team, and beyond.

If you or your company's employees have a local charitable group or cause that they care for, then the business can show an effort (monetarily or otherwise) in that direction. There are plenty of local examples of imaginative alliances made between business and non-profit groups. Grand Traverse Pies donate a portion of pie sales to breast cancer research, area businesses decorate trees for the annual Festival of Trees, Traverse City State Bank sponsors a 4-H kid's steer in the Northwestern Michigan Fair.

The idea is to donate, endorse and be directly involved with a charity at the same time. It's not just saying that your company gave money to a charity or social cause; it's having a true company and employee stake that demontrates true dedication to that charity.

One local company founded their company in the premise of being socially responsible before all else. Higher Grounds Trading Company built its company with the idea of selling fair trade coffee from villages in Central and South America, and Africa. Owners Chris and Jody Treter wove the mission of social good into their original company business plan and have stuck to it ever since.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

"Relaxation is an elusive goal, despite the increases in productivity that should make it attainable for all." Gary Cross, professor of history at Penn State University, and the author of "An All-Consuming Century".

Time for most of us is an undervalued resource, and something we don't use efficiently. For one reason or another the demands and expectations of today's society seems to make time scarcer. About 25 years ago experts predicted that by 2000 technical breakthroughs would allow us to have plenty of leisure time and the traditional 9-5 work week would allow time for other things.

Well a funny thing happened on the way to time nirvana. We all seem to run ragged with ever growing obligations and expectations. So why are we so off course with this time issue? And how can we form a strategy to use our time more effectively so we aren't constantly chasing our tails?

Self-confessed serial entrepreneur and ultravagabond Timothy Ferriss comes up with some answers to this dilemma in his book: "The 4-Hour Work Week." What Ferriss lacks in credibility (he claims to be a world-record holder in tango) he makes up with great techniques for eliminating parts of one life that suck up time.

Ferriss applies a unique combination of the 80/20 rule to one's personal time schedule (Limit tasks to the important to shorten work time) and Parkinson's Law (Shorten work time to limit tasks to the important.). He also suggests useful steps to avoid wasting time performing work tasks so your time can be spent on the things we really want to do.

Simply dedicating time to one task and finishing it instead of juggling multiple projects, (taking phone calls, and reading emails) can dramatically increase one's productivity. Speaking of emails, Ferriss suggests turning off the automatic email refresh on your computer and looking at emails at the beginning and the end of the work day. Otherwise too much time is spent reviewing low priority messages that serve as constant interruptions. Place an automatic reply to your email recipients saying that you will not respond to their emails until the end of the day but that you are available if the need is pressing on your work or cell phone. Ferriss says this simple step will deter many junk and joke emails and make people reassess how they are spending their own time.

Think of other ways you can streamline your work situation to be more task oriented and eliminate the peripheral distractions and interruptions. Closing your office door one hour a day to focus on and finish that one pressing project that would otherwise take a few days to complete can build momentum towards bigger and better accomplishments.

Prioritize what is important and put off the sudden urge to immediately write back and respond to that interoffice email with your contribution to Friday's office potluck. If the office interruptions are unavoidable then ask for or use flex time to work elsewhere, come in early, or stay late to dig in and dedicate quality time to an important prioritized project.

The overall objective is to leave more time for other things in life which according to Ferriss includes living more and working less. We should at least all have the time to think about that.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Navigating the competitive landscape in an ever changing economy is a challenge for any small business. It only make sense that one has an honest assessment of who the competition is before compiling a market plan that provides a clear competitive advantage.

So exactly who is your competition? If you run a restaurant it isn't just the other restaurant across the street or the other dining establishments in town. Your competition can be defined as any alternative that deters customers from purchasing your product or service. In this case your restaurant is also competing against customers who choose to go to another restaurant, cook at home, buy take out food at a store, or eat leftovers.

For other traditional businesses the competitive model has drastically changed. It now includes mail order and web based businesses as well as out of town conglomerates that establish big box stores built to compete on price more than convenience.

Assessing your competition affects essential choices your business makes including its location, product/service line, infrastructure, and target audience. Being realistic about the number of customers who will favor your product or service over a competitor goes a long way in determining the financial success of your business model.

Many people I talk to who are starting businesses don't think in these terms and believe in what I call the "Field of Dreams Theory." As you can guess this premise follows the idea of "If you build it they will come." In other words, many business owners feel that they can simply open their doors and the customers will come flowing through the doors like trained pigs. The result is inflated sales projections and a heavy dose of reality when they realize the true competitive nature of things.

So the first step is an honest assessment of who your competition is. Putting yourself in the shoes of a prospective customer can help you to create a more realistic picture. Surveying potential customers with a formal or informal focus group can work wonders to understand what service or particular product you can offer that would fulfill a pressing need. People love to be candid about their customer experiences (think again of restaurants), so the focus group discussion can reveal competitors' weaknesses and potential products or service gaps that you can exploit.

Next, imagine new ways of creating a competitive advantage. This can be achieved with superior products (cutting edge, stronger, more durable, easier to use), exemplary customer service (assessable, patient, attentive, and problem solving) and price (competitive, but not always the lowest).

All of this is done under the context of efficiency and the desire to maintain a long lasting and profitable business. Too many times small businesses get caught up in competitive battles where price becomes the preferred ammunition. Competing long term on price alone can divert entrepreneurs from the market niche that formed the initial concept of their business.

Maintaining the balance between looking in the rear view mirror at competitors and focusing ahead on your own strategy can be difficult. Dwelling too much on competition can remove focus within an organization, while not having enough competition can drag a business into a realm of complacency.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Marketing your business requires a comprehensive program that involves more than placing a yellow page advertisement in you local phone book. Putting your company in front of potential buyers on a consistent basis means that you have put thought and applied common sense into your advertising effort. Here's how it should work.

Branding/Identity: In the beginning your organization should brand itself with a name, logo, slogan, color scheme, type font, and message. Your branding effort sets the tone for the image you are trying to portray. Once established you brand identity should be consistent so customers or potential customers can quickly recognize your advertising efforts. Your developed brand is used in advertising, letterhead, business cards, labels, packaging, website, brochures, and in any other way you publicize the business.

Advertising: If the image you are trying to portray is derived from the branding effort, the choices you make in advertising should take the image and form it into a message that will convince customers to purchase your product or service. Too many times advertising dollars are spent in ways that don't have a measurable response or are blanket campaigns that try to be all things to too broad of an audience.

Initially you should have a good idea of who your targeted audience is by interest, income level, age, geographic location, or gender. Zoning in on this audience with advertising efforts that reach them specifically will over time increase your customer base, build customer loyalty and increase sales. It's best to avoid blanket campaigns thrown out to the mass public thinking that "everyone" is your customer.

Public Relations: Your role in the community is a key component in an organization's marketing program. This can include newsworthy press releases sent to local media outlets. Newsworthy has to be an event or story that would have significance to the general public, not some blatant self promotion of a product.

Teaming up with a charitable or non-profit organization for a community oriented group can be another way to garner positive public relations. Many times it's best if these efforts come directly from employees and some of the causes and charitable groups they already support. Showing company support by cosponsoring an event or effort strengthens employee morale while improving your company's image in the community.

Customer Retention: Perhaps the most overlooked part of a marketing campaign is customer retention. It's estimated by several business experts that the majority of American businesses spend twice as much on advertising than on customer service. Putting tremendous amounts of money into an advertising campaign is ludicrous if your company is not able to take care of the customers it already has. Customer retention begins with a carefully crafted customer service policy that empowers employees to quickly solve customer problems and having a consistently reliable service those customers can trust and rely on.

Putting all four of these parts (branding, advertising, public relations, customer retention) together will produce a marketing plan that will over time be both cost efficient and effective.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

There is a way to eliminate all of the risks involved with starting a small business, you can improve your chances of success with good planning and solid preparation. A good point is to evaluate your personal strengths and weaknesses. Consider carefully the following questions.

Are you self-motivated?

It will be up to you to develop projects, organize your time, and follow through on details If you tend to procrastinate you may find yourself struggling to catch-up and miss opportunities.

How well do you get along with different personalities?

Business owners need to develop working relationships with a variety of people, including customers, vendors, staff, bankers, and professionals such as lawyers, accountants, and consultants. Can you deal effectively with a demanding client, an unreliable vendor or a cranky staff person?

How good are you at making decisions?

Small business owners are required to make decisions constantly, often quickly, under pressure and independently.

Do you have the physical and emotional stamina to run a business?

Business ownership can be challenging, fun, and exciting. But it’s also hard work. Can you handle 12-hour work days six or seven days a week?

How well do you plan and organize?

Research indicates that many business failures could have been avoided through better planning. Good organization of financial information, inventory, production, etc. can help avoid many pitfalls.

Is your drive strong enough to maintain your motivation?

Running a business can wear you down. Some business owners feel burned out by having to carry all of the responsibility on their shoulders. Strong motivation to make the business succeed will help you survive slowdowns and setbacks.

Many old school experts claim that borrowing from one’s self is not only better than going to a bank for funding; it is also more fun. This idea of saving may seem antiquated but it is still a superior choice over borrowing. So why don’t people save first and then start out on their business quest?

Our society today does little to advocate the benefits of saving. We are bombarded by media messages to purchase bigger houses, newer and larger cars, and super sized meals. The result is that many of us end up living far beyond our means. The latest upheaval in the housing market shows how far people are willing to literally mortgage their futures for the satisfaction of now.

Here are some ways to position you for a future that includes self-financing of a business:

1. Pay your self first and remember that a part of what you make is yours to keep. This includes putting together a personal budget with at least 10-20% or more taken off the top that goes directly into savings.
2. If the 10-20% seems like unattainable then it’s time to track your spending for a month or two and analyze what you are wasting money on. Items such as daily lunches out, the morning espressos, expensive vacations, and designer clothing purchases add up over time, and delay the accumulation of savings.
3. Eliminate long term debts. This could include selling some of the toys like boats, jet skis, and expensive cars and that carry debt payments. 
4. Try to save enough money over time to cover the majority of your business start up costs. If you have to borrow from the bank, make it a minimal amount that won’t saddle you with a long term debt to service.
5. Make a savings goal and a time objective for the time when you will have enough money to open your business. In the meantime, use the savings time to get organized, write a thorough business plan, and fine tune your business concept.

Starting a business with your own money can be done, and will give you a tremendous advantage against your competitors who have the additional debt load added to their start up costs.

For example if you needed $100,000 to get started in a business and borrowed the entire sum from a bank at 8% over a four year period you would pay $17,181.92 in interest. If you financed this same business yourself, that $17,181.92 could be used for purchasing new products (that generate additional sales), or the purchase of newer equipment (that could make the business run more efficiently.

by Chris Wendel, Regional Director, Michigan Small Business & Technology Development Center.

Listen to Chris every Wednesday from 10:30 to 11:30 am on 1270 WMKT Radio with Vic McCarty.

Marketing and advertising have evolved tremendously over the past few years. The advent of the computer and more recently the internet has moved the focus of marketing towards measured responses from targeted customers most likely managed by a computerized database.

Using technology gives small businesses advantages that entrepreneurs of 20 years ago could not imagine. But emphasizing technology too much can adversely impact your company’s ability to build loyal customers. It is important to remember why marketing your business today still has to do with elements that combine both human relationships with technical enhancements.

The human side of business is making a comeback with companies that realize customers crave something novel; interaction with another person. Case in point is Netflix the national video chain that distributes its movie DVDs through the mail with customers who choose their movie preferences online. When a competing video chain Blockbuster recently decided to get into the video-through-the-mail business Netflix reacted in an interesting way.

Even with customers who were used to ordering movie selections online, Netflix quickly assembled a call center in Beaverton, Oregon where customers reach a live human to solve their problems and complaints. Most companies would have gone the other way with this and left customer inquires to