Success Story: Sign Designs
Joplin sign business finds solution
to growing pains at MSSU SBDC
Regardless of how long they've been in business, successful entrepreneurs know when to seek advice from the experts.
John Hipple Jr. is a case in point. As a businessman with more than 17 years of experience, John found himself and his business at a crossroads last year.
John Hipple Jr., president of Sign Designs, and Denise Neely, vice president in charge of operations and John's sister. "Both of us learned all aspects of the business from the bottom up, and started by running the vinyl cutter," says John. "We certainly complement each other's strengths and weaknesses."
John and his father founded Joplin-based Sign Designs in 1991. It wasn't their first business venture. A few years earlier they opened The Inside Track, a remote control racing track and retail shop for enthusiastic hobbyists. The business progressed well for a while. However with the arrival of tight economic times in the early '90s, the father-son team decided to cut their projected losses and close The Track.
That decision led them to consider other business options that would take advantage of young John's marketing talents and artistic tendencies. Their thorough search led them to start the sign shop.
For the next 14 years Sign Designs profited. John became president when he bought his dad's share of the business. The new president envisioned changes for his company, which had been operating for several years in a small building converted from an auto garage. John knew his firm needed to expand if he was to achieve his business goals.
"We were looking at a property that would expand our production area from 4,600 to 14,000 square feet," he recalls. "Growth was our target, but how to get there puzzled me. What could I do to make sure I was doing the right thing for my business?"
It was at this critical point in 2007, that John decided to turn to Jim Krudwig, director of the Small Business Development Center at Missouri Southern State University in Joplin. John had met Krudwig and the staff of the MSSU SBDC, through their mutual membership on a Joplin Chamber of Commerce committee.
Visit www.missouribusiness.net/success/sign_designs.asp for the complete story with additional photos.
Business Survival Tips for a Tight Economy
Times are challenging right now for many small businesses. Increased gas prices and other rising costs have caused many owners to tighten their belts to make ends meet. While there are many obvious things to do to lower expenses, the following are some more in-depth strategies you can use to keep your bottom line looking healthy.
- Review your inventory levels. It's always important to keep inventory turning. During a time of slowing sales, you need to evaluate your inventory more carefully and reduce the stocking units that are not turning well. Inventory turns are expressed in two ways -- days inventory (the number of days it takes you to sell your inventory) or inventory turns (the number of times you turn your inventory in a year). Do you know what your turn rate should be? Has been historically? Or what the industry average is?
- Review/determine your company's break-even point. Understand what level of sales is required to stay profitable.
- Analyze your customers. Take a close look at your customer segments, and make sure you understand why they purchase from you. Segmenting can be done in several ways. For instance, you can use volume of sales; type of customer, such as purchase location (retail/wholesale/internet); type of buyer (commercial/government/personal); or by buyer demographics (educated/family status/residence location).
Read all twelve business survival tips at www.missouribusiness.net/docs/biz_survival_tips_economy.asp.
For help or more information on remaining competitive during challenging economic time, consult with your local SBDC. Find a center near you by visiting www.missouribusiness.net/sbdc/centers.asp.
Business Going Green
Think fashionably and dress locally
Boutique Chartreuse, the first and only green boutique in St. Louis, focuses on "ecological fashion," ethically made apparel and accessories for the style-conscious, contemporary woman. The modern, wearable styles in the boutique range from casual to dressy, including casual office and night-on-the-town styles.
Owner Lori Allen says she has long recognized the connection between fashion and the environment. "Knowing real people grow the fibers and make the clothing you wear is important," said Allen. "We have to understand there is a connection between what we buy, the health of our planet and the ability of others to survive and prosper, which in turn affects our ability to survive and prosper."
Lori's experience tells her the conditions under which growers and garment industry workers make the products we buy affect our lives in many ways, from the quality of the product to the simple "feel good" feeling of fashion. "Looking great should not come at the expense of others," Lori says.
This fall, Lori is reaching out to teachers. "I have a lot of educators as customers. One of those customers told me the kids notice everything, including what she wears. I realized helping educators create a stylish, sustainable wardrobe was a double opportunity to get out the eco-fashion message. These kids have been brought up in a world of invented brand name status and marketing-created image. It is like the story of the emperor's new clothes."
Besides the latest in new eco-fashion labels and national designers from the big fashion markets, the boutique showcases sustainable and ethically made work from small, regionally-based designers of accessories and clothing. Allen believes supporting other small businesses that employ workers in our country is very important.
JAK Designs tulip scarf
"In our current economy, supporting a small designer who employs five to ten workers (usually women) to produce in their own community is huge," says Lori. Most of the labels, both big and small, are produced in the U.S. under fair labor standards.
Among the lines carried by Boutique Chartreuse this fall are Kelly Lane, a Pittsburgh company that designs and produces a line of dresses; OrganiJAK scarves by JAK Designs of Ohio; and a selection of jewelry by Hermann, MO, artist Julie Katsaras, featuring simple and stunning re-purposed, reclaimed materials and found objects. The boutique also carries numerous national eco-brands and designers such as Perfectly Imperfect, Covet, Prophetik, EcoGanik and Sworn Virgins.
Boutique Chartreuse is located in Webster Groves at 8135 South Big Bend Boulevard. Store hours are 10 a.m. to 6 p.m., Tuesday through Friday, and 10 a.m. to 5 p.m. on Saturday. For those ready to create an intentional, stylish and sustainable wardrobe, owner and eco-fashion guru Lori Allen also provides private closet consultations.
For additional information, see the Web site www.boutiquechartreuse.com or call (314) 458-2410. For more information on environmental programs and assistance available through the Missouri Business Network, visit www.missouribusiness.net.
IRS Roundup
IRS increases mileage rates through Dec. 31, 2008
The Internal Revenue Service recently announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
The rate increased to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight cents from the 50.5 cent rate in effect for the first six months of 2008.
Visit www.missouribusiness.net/news/irs_news_063008.asp for the complete news story. More information on IRS rulings and tax law is available in the resource center online exclusively at MissouriBusiness.net (visit www.missouribusiness.net/irs/).
Bonding Basics
Know the types of bonds and when they're required for federal contracts
According to the Federal Acquisition Regulations (FAR), a bond is a written document between a bidder or contractor (the principal) and a second party (the surety) to ensure fulfillment of the principal's obligations to a third party the (obligee or government) identified in the bond. If the principal's obligations are not met, the bond ensures payment, to the extent stipulated, of any loss sustained by the obligee. Put simply, bonding protects the government from financial losses.
The bonding process
Contractors seeking bonding must be prepared to prove to a surety that their company has the capacity, character and capital to perform the project(s) on which they are seeking to be bonded. Sureties want to be sure that entering into a bond relationship with a contractor is a good business decision. Prior to issuing a bond, a surety will analyze a contractor's capacity to perform (necessary equipment), financial strength (good credit history and line of credit), past performance in similar contracts and organizational structure.
Learn more about the bonding process by reading this complete story at www.missouribusiness.net/ptac/docs/bonding_basics.asp.
Sometimes the Best Strategy is Just to Show Up!
I have heard that 90 percent of making the sale is being there.
My wife and I lived in Canada on two separate occasions, and we got to know an insurance salesman named Ken. When I first met Ken, it seemed he did three things. He played tennis, he played racquetball and he traveled. I later learned that Ken's trips were sales incentives that he had earned. I came to realize that while it may have appeared that Ken was just playing, in reality, he was "being there," making the sale.
To a "nose to the grindstone guy," there was something sinful about the way Ken seemed to be making a very good living. I came to realize that Ken was always there and was always around people who needed what he sold! My wife and I were new to the area, we played racquetball and we needed insurance. Ken was our agent, too!
Continue reading about sales strategy at: www.missouribusiness.net/docs/best_sales_strategy.asp
Beyond Dollars and Cents...Using Recordkeeping to Manage Your Business
Too often, employees, managers and owners of businesses think of a recordkeeping system purely as a means to measure financial performance. While financial statements such as income statements and balance sheets provide a standardized measure of financial standing and offer a basis for comparison against comparable businesses, perhaps their greatest value is as a management decision-making tool.
While there is value in electronic bookkeeping systems, the real value is in maintaining a record system that allows the business to make informed decisions about the future direction of operations.
I was instructing a series of courses on financial management recently, and two of the participants owned a retail/service operation. Their system of recordkeeping was pencil and paper, but they were conscientious about keeping track of their data, and they had all the information they needed to make managerial decisions. They simply didn't realize they had it. They told me they had been waiting 15 years for someone to provide the tools they needed to make good decisions.
Continue reading about recordkeeping at www.missouribusiness.net/docs/beyond_dollars_cents.asp.
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