Success story:
Five-Star Houseboat Vacations
Iowa natives launch houseboat rental business on Table Rock Lake
Dave and Nancy Long loved to vacation at Table Rock Lake in southwest Missouri. The couple made annual visits from their Iowa home to their favorite spot on the lake near Kimberling City. They moved their treasured houseboat to the area in 2004.
Then they started frequently asking each other: "Wouldn't it be great to retire here?"
The Longs had lived and worked all their lives in the Des Moines, Iowa area ... Dave sold building products and Nancy was an interior designer with an Ethan Allen furniture store. But in late summer 2008 they moved to southwest Missouri to pursue their dream.
However, it didn't quite include retirement. Dave landed a sales manager post with a cabinet supplier in Nixa. Nancy continued to pursue her interior design work. If not retired at least they were only minutes, instead of hours, from their lake refuge.
One day about a year later, Dave arrived home from work and told Nancy, "Guess what we're going to do. We're getting into the houseboat rental business."
That was the start of an intense four-month period for the Longs. They needed to learn everything they could about the houseboat rental business. They also needed to find financial backing.
Read this complete story with additional photos.
Measuring customer satisfaction can help any business beat competitors during any economic climate
LAMAR, Mo. - Customer satisfaction can be a key to helping any type of business outperform competitors, especially during economic downturns. Of course, the only way for a business owner to measure customer satisfaction is to effectively survey customers and monitor competitors.
"Aggressively seeking out customer priorities and preferences can shape better business decisions," said Kathy Macomber, a Small Business & Technology Development Center specialist with University of Missouri Extension. "Many business owners assume they know what the customer wants, but savvy entrepreneurs should actively solicit customer feedback to measure performance."
Macomber says one of her favorite restaurants has a great customer comment card that asks four yes/no questions: Were you greeted upon arrival? Were you happy with your food? Was the restaurant clean? Did you receive a good value?
The card then goes a little deeper and asks several other questions, like: "Were you seated within 10 minutes of your arrival?"
"Note the level of detail in that question," said Macomber. "This restaurateur has identified the amount of time their customers are willing to wait before the wait becomes an irritant. Identifying and responding to customer preferences means avoiding the disappointment that may make customers leave for another restaurant option."
Another great question: "How many items have you found of the menu that you would like to try?"
"Again, this is a more complex question to identify than whether you find multiple attractive choices on the menu," said Macomber. "A question like, 'Are there sufficient choices to entice you back?' may be used as a way to produce a customer-driven menu. Alternate surveys ask for items or categories that you wish were on the menu."
For example, more and more diners expect to see vegetarian or vegan options. Recently diners are looking for "gluten free" options, and some are interested in locally grown items. Identifying these additional options may encourage repeat customers.
A question like, "Were you greeted by the manager during your meal?" provides several layers of information to the business owner. The personal greeting from the manager communicates to customers their value and importance to the organization.
"This provides a way for customers to point out any problems to a decision-maker who can provide quick satisfaction. Remember, customers may not feel comfortable giving a negative message to their server," said Macomber.
It is also a good idea to ask for "additional comments" because this gives customers a free-form area for comments that provide a chance to understand items of importance to them.
"Whether you have a restaurant, retail, or manufacturing firm, understanding customer preferences, and pursuing a customer focus may increase retention and increase profits, even during the economic downturn," said Macomber.
New research report focuses on fastest growing businesses in Missouri
A new research report from two Missouri-based business and economic development research offices finds 26 percent of Missouri firms identified in a previous study as fast growers in 2001-2006 continued to expand in 2006-2009.
The report — "Cheetahs Continue: Lessons on How to Survive and Thrive from Missouri's Fastest Growing Businesses" — is a collaborative effort of the Missouri Department of Economic Development's research office, the Missouri Economic Research and Information Center, and the research arm of the University of Missouri Extension Business Development Program, the Business Research and Development Group.
"With this research, BRIDG and MERIC have tapped into the perspectives of firms that create jobs across Missouri," says Dr. David Schmidt, director of BRIDG. "It helps us better understand how many of the fastest growing Missouri companies have thrived and grown through the recession."
All but two of the 1,630 job-growing firms were small businesses (defined by the federal Small Business Administration as having 500 employees or fewer) and 80 percent of the "Cheetahs" had fewer than 50 employees.
The new study dives deeper into the reasons for the ongoing success of the continuing Cheetahs. It explores the connection these growing firms have to their local economies and in some cases how these Cheetahs compare to their broader business communities. Some findings include:
- 60 percent of Cheetahs believe customers choose them because of internal factors (e.g. better quality and service), far ahead of external factors such as low price.
- 55 percent of the businesses buy at least two-thirds of their goods and services from firms within 100 miles of their location.
- 58 percent of those surveyed serve in a voluntary capacity for boards, committees and other organizations within their communities.
- 69 percent rated their current business performance as good or excellent in terms of revenue or sales.
- 57 percent had written a formal business plan.
- 48 percent described the quality of recent job applicants as adequate or qualified, while 47 percent indicated job-applicant quality was inadequate.
A copy of the report, which was released in September at the 2011 Governor's Economic Development Conference and presented by DED and the Business Research and Information Development Group (BRIDG) Director, can be found at www.missourieconomy.org/pdfs/cheetahs_continued_2011.pdf.
A Kauffman Foundation poll of entrepreneurs
reveals their plans for growth, barriers that
could stand in the way
KANSAS CITY, Mo. - Entrepreneurs heading some of America's fastest growing privately held companies have told the Kauffman Foundation that they plan to continue to grow in the United States provided they are able to find qualified people to add to their firms.
The poll was conducted during the Inc. 500|5000 Conference & Awards Ceremony last month, in National Harbor, Md. Entrepreneurs attending the event shared their views on the prospects for continued growth, their plans for expansion and the barriers that could stand in the way.
Among the key results:
- Nearly all of the entrepreneurs who responded (96 percent) plan to add employees in 2012. Many (41 percent) say they expect to hire more than 20 people next year.
- Finding qualified people is the biggest obstacle standing in the way of continued growth for 40 percent of companies. Managing fast growth (21 percent), accessing capital (16 percent) and the sluggish economy (13 percent) are also obstacles. Regulatory uncertainty and taxes were noted by only 3 percent and 4 percent, respectively.
- The vast majority of the respondents (71 percent) say they do not outsource any of their business operations outside of the United States. Those that did are most likely to seek technical development internationally.
- Looking to the future, the respondents predict that mobile applications, cyber security and healthcare will be among the hottest industries.
The survey findings reinforce the results of Kauffman research that demonstrates the central role that high-growth startups play to strengthen and grow the U.S. economy. Kauffman studies attest to the benefits of startups: Virtually all of the growth in U.S. jobs has been driven by the formation of firms less than five years old. These new firms have been disproportionately responsible for commercializing the cutting-edge innovations that characterize modern life.
Retail experts forecast slight increase in
holiday season sales
A research firm specializing in the retail industry foresees a possible 3 percent increase in retail sales this coming season compared to 2010, according to the website Main Street. The improvement would be lower than the 4.1 percent retail sales increase in holiday sales nationwide between the 2009 and 2010 seasons.
"The persistently high unemployment and fuel rates along with consumers' conservative purchasing attitudes will affect spending this holiday season more than in recent years," says Bill Martin, co-founder of the research firm ShopperTrak, based in Chicago.
With an increasing number of shoppers relying on online connections, the trend to shopping via the keyboard is expected to put a 2.2 percent dent in the number of people shopping in stores from a year ago. This trend will be accentuated by fuel costs and unemployment. To counter this expected drop in traffic, store owners who want to build relationships with clientele should consider scheduling more in-store special events and themed promotions.
IRS roundup:
IRS to offer webinar on employer healthcare coverage reporting Oct. 31
The Internal Revenue Service will offer a free webinar Oct. 31, on the topic of reporting employer provided healthcare coverage on Form W-2. The session is designed for employers, small business owners and other professionals concerned with tax reporting.
The session starts at 1 p.m. CDT, and covers:
- What changes employees will see in their Form W-2 due to the coverage reporting
- When employers must begin reporting the cost of coverage on the Form W-2
- Transitional relief for certain employers, plans, and situations
- Which employers need to report the cost of coverage on the Form W-2
- How employers will report the cost of coverage on the Form W-2
- What valuation methods employers can use to determine the amounts to report on the Form W-2
Visit www.visualwebcaster.com/IRS/82090/reg.asp?id=82090 to register for the session, which is sponsored by the Self Employed Division of the IRS.
_______________________IRS offers tips for employers outsourcing their payroll
Outsourcing payroll duties to third-party service providers can streamline business operations, but the Internal Revenue Service reminds employers that they are ultimately responsible for paying federal tax liabilities.
Recent prosecutions of individuals and companies who — acting under the guise of a payroll service provider — have stolen funds intended for payment of employment taxes makes it important that employers who outsource payroll are aware of the following three tips from the IRS:
- Employer Responsibility: The employer is ultimately responsible for the deposit and payment of federal tax liabilities. Even though employers forward the tax payments to a third party to make the tax deposits, the employer is the responsible party.
If the third party fails to make the federal tax payments, the IRS may assess penalties and interest. The employer is liable for all taxes, penalties and interest due. The IRS also can hold the employer personally liable for certain unpaid federal taxes.
- Correspondence: If there are any issues with an account, the IRS will send correspondence to the address of record. The IRS strongly suggests employers do not change the address of record to that of the payroll service provider. That could limit the employer's ability to stay informed of tax matters involving your business.
- EFTPS: Choose a payroll service provider that uses the Electronic Federal Tax Payment System. You can register on the EFTPS system to get your own PIN to verify the payments.
The IRS has more information on the responsibilities of employers outsourcing payroll, payroll service providers and EFTPS. The following links offer more details:
Outsourcing Payroll and Third Party Payers
Outsourcing Payroll Duties
EFTPS: The Electronic Federal Tax Payment System
Publication 966 - The Secure Way to Pay Your Federal Taxes for Businesses and Individuals
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