NCET

Dave Archer, President and CEO, NCET – Nevada’s Center for Entrepreneurship and Technology

Happy New Year!

With our economic challenges sure to continue for a while, here are some resolutions to consider for 2012:

Business plan

This is the most fundamental item needed by any business. You wouldn’t drive to Florida without a map; you shouldn’t try to start or run a business with a business plan. The greatest value of the business plan is to you, rather than necessarily to your banker or to an investor. And, most of its value comes from the thought process you go through while writing it. Learn more about business plans at the Nevada Small Business Development Center (www.NCBDC.org) or the US Small Business Administration’s website (tinyurl.com/6h64ugy).

P&L, Cash Flow and Balance Sheet

You need accurate and detailed financials because the IRS (and possibly your bank) will require them, and because YOU need them to understand your business. You need to be able to accurately track your revenues and associated expenses so that you can determine which of your products or services are actually generating a profit. If you own a restaurant, for example, you should be able to look at your breakfast, lunch and dinner business and be able to determine the profitability of each. If you don’t have a good accounting software package already, resolve to invest in one.

New revenue sources AND controlling expenses

There’s an old adage that anyone can run a business when times are good. When they’re not, you need to focus even more carefully on your revenue and expenses to ensure there’s more of the former than the latter. Using the restaurant example, can you drive more lunch traffic by offering daily specials? Can you reduce your breakfast expenses by reducing the number of breakfast items, and thus your inventory costs? Resolve to look for new revenue opportunities and to review every penny you spend to identify possible ways to save.

Social media

Social media is a very inexpensive way to promote your business. Facebook and Linked allow you to promote your business in a very cost-effective way. Many local organizations offer free or low-cost workshops on social media. Resolve to check them out.

Network!

Networking is an effective to meet dozens and even hundreds for potential new customers, usually just for the cost of a breakfast or lunch. Reno has a huge number of networking opportunities, with professional groups focused on marketing, finance, nursing, real estate and many others, along with general business groups such as The Chamber, EDAWN, and my personal favorite, WIN. Remember that effective networking involves establishing relationships with the people you meet, rather than just handing out and collecting as many business cards as possible.

Good luck with all of your resolutions, and best wishes for a success New Year!