SMALL BUSINESS REVIEW

Small-business owners learn to adapt in economic downturn

Just like the monster in a bad summer movie, inflation has risen from a long slumber. Small businesses are feeling the pinch of climbing prices and shaky consumer confidence.

But unlike the script, the final scene is yet to be written. Many local business owners are hoping for a happy ending but preparing for the worst.

For the first time since the early 1980s, small-business owners in June cited inflation as their No. 1 concern in a monthly survey by the National Federation of Independent Business. Not surprisingly, skyrocketing fuel costs are of particular concern.

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SMALL BUSINESS LINK: Productive Brainstorms Take the Right Mix of Elements

Most people know what brainstorming means, but few are ever taught how to do it effectively.

Matt Bowen, president and chief executive of Aloft Group Inc., a 28-employee marketing firm in Newburyport, Mass., devotes much time to teaching his employees the ropes of effective brainstorming.

The Wall Street Journal recently spoke with Mr. Bowen about fostering creative thinking in the workplace and how to channel creative energy in a productive way.

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Is Outsourcing Or Contracting Out Appropriate For My Small Business?

Outsourcing is an emotive topic that is often portrayed in a negative light by the media. It is also something that has traditionally been seen as the preserve of big multi-national corporations, and small business has been slow to take up this business trend.

During the course of the business year, there are often particular activities that need to be carried out, where the necessary skills pool does not exist within your organisation. These are the most obvious projects to be contracted out, because you can retain the services of an expert but only for the time it takes for the project to be completed.

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Inflationary Economy Makes Small Firms Look for New Accounting Methods

Inflation hasn't played a major role in the economy for many years, so many of today's entrepreneurs are not prepared to deal with it. So it's surprising that inflation is now the top problem cited by small businesses, according to a monthly survey by the National Federation of Independent Business. It has been 27 years since the survey, the Small Business Optimism Index, found inflation to be such a pressing issue.

Perhaps entrepreneurs should look to the past for guidance. During that last bout of stagflation (stagnant growth coupled with inflation) in the late 1970s, many businesses found an effective way to reduce costs was through accounting. When you calculate your profit margin for your business income taxes, a higher-cost inventory will lower your profit margins on the books—and that means you lower your tax liability. If the cost of your goods is rising, you would want the last items added to your inventory—the ones affected by inflation—to be the ones that show up in your books as the goods you sold. So when a firm facing higher inventory costs uses the "last-in, first-out" accounting method—known as LIFO—it can often reduce its tax burden.

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SBA Faces Credibility Gap Over SMB Contracting

Mismanagement of small business contracting programs has been a sore spot at the SBA for more than five years. Over that time, numerous reports have revealed that billions of dollars a year end up in the hands of large, well-known corporations. But the SBA has tended to minimize or deny the problem. Outgoing administrator Steven Preston even called it a myth. The latest reports, however, show a clear credibility gap at the agency.

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Oregon Business Overview

EngineWorks and Yakima to Present at OMS Portland

EngineWorks, Inc., a professional search engine marketing (SEM) company specializing in Natural Search Engine Optimization (SEO), Paid Search Management, and Social Media Marketing, is pleased to announce that the Company will be presenting along side its newest world-class client, Yakima Products, Inc., at the up-coming Online Marketing Summit (OMS) in Portland, Oregon on August 5, 2008.

The Online Marketing Summit, taking place at the Portland Zoo on S.W. Canyon Road, is an education and networking event that enables marketing professionals to share best practices and gain valuable insight from professional online marketing executives. This industry-wide summit focuses on topics that drive audience action, including search engine marketing, social media business strategies, Web analytics, ROI tracking, and much more.

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Timbercon Named 17th in Growth for Technology Companies in Oregon

Timbercon, Inc., a fiber optic product and solution manufacturer headquartered in Lake Oswego, Oregon was named for the sixth year in a row as one of Oregon’s fastest growing technology and software companies by The Portland Business Journal. Timbercon is ranked 17th on the annual list of 25 Oregon businesses for 2007.

“From 2005 through 2007 we experienced 63% growth and have continued to grow in 2008. We have added another ten people in 2008 and continue to recruit sales, engineering, and production management talents. The continued growth is exciting and our recent and upcoming product innovations will continue to push our company to the next level.” says Eric Meslow, President and CEO. Most recently Timbercon released their new XFP Electric Loopback that is commonly used in the testing of network and data storage equipment.

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Portland should get its gateway

Planning geeks like to crow about Portland becoming America's "most European" city. We sure hope that's not Paris they see in our future. We're not that taken with the idea of a high couture core surrounded by slums.

As more and more people -- more and more of whom happen to be wealthy -- crowd toward close-in living, Portland risks driving deepening pools of its poor to the urban fringe. Welfare checks might displace desperate housewives as the signature suburban species.

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SMALL BUSINESS REVIEW

Credit seen drying up for small business

As losses mount at American banks and the pain of the credit crisis spreads from housing and finance to the broader economy, many small companies complain it is increasingly difficult to obtain loans.

Tighter credit could not only help to push the United States into recession, but prolong the downturn as ideas for new businesses get stymied once entrepreneurs sit down with local bank managers, small business representatives warn.

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Burnout beckons for those starting businesses

After more than a decade as a project manager in the tree care industry, Tim Scherpenisse was suddenly out of work.

Two years later, he is an economic forecaster, strategic planner, marketing director and human resources supervisor.

Specifically, he is a small business owner. And the transition has not come without challenges.

"It's an obstacle not to let the business run you. If you're not careful, it can consume you," said Scherpenisse, owner of New Life Arboricultural Services in Grand Rapids.
Press Photo/Dianne Carroll BurdickTim Scherpenisse, owner of New Life Arboricultural Services, said running the business will consume you if you are not careful.

Scherpenisse is among a growing number of Michigan workers forging their own path in a shifting economy that has suffered eight years of job losses and now has the nation's highest unemployment rate at 8.5 percent.

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Business Continuity: Secure small business storage on the Web?

It's mid-hurricane season where I live, and my thoughts have been turning (as they so often do) to disaster recovery for small business. We should all have learned by now that even a comprehensive backup can be inadequate if it's stored in a filing cabinet in the front office. No, for better protection you need to keep a copy of your files someplace safe -- or at least someplace not likely to be hit by the same event that created the need for the backup.

I've been trying a couple of simple solutions for backing up my critical data. The first is SpiderOak, a system the company describes as, "Your complete online backup, storage, access and sharing solution." A free account comes with 2GB of online storage, with more available for license on a monthly basis. The second is Microsoft's Live Mesh, an extension of your desktop onto the Web. There are similarities between the two, but there are also differences that might make one or the other a better choice for your needs.

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Starting a Small Business in a Bad Economy
Smart entrepreneurs can be successful even in tough times

Things have been a bit slower than usual over at the Community Business Partnership, a resource for small companies in Springfield, Va. As Barbara Wrigley, an executive at the partnership, guesstimates it, there's been a 10-to-15 percent drop in folks coming in for information about starting new businesses. "I feel like people are being a little more risk averse these days," Wrigley says.

It's a natural reaction given all the scary economic headlines, but slowdowns don't have to be barriers to starting new enterprises, experts say. After all, Bill Gates and Paul Allen didn't wait for the recession to pass before launching Microsoft in 1975. And plenty of would-be entrepreneurs aren't waiting for today's economy to improve either: Of the approximately 3,000 job seekers—mostly managers and executives—surveyed by outplacement firm Challenger, Gray & Christmas, 7.2 percent said they were starting their own business in the first quarter of 2008. Last year's annual average was 8.1 percent. "The bottom line is anytime is the right time [to launch a venture] if the opportunity is correct and if you as the entrepreneur have correctly assessed and shaped the opportunity," says Dennis Ceru, who teaches graduate courses in entrepreneurship and business strategy at Boston University and Babson College.

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Surviving a Seasonal Business
It takes a year-round effort to maximize profits in your peak season. Here are 4 principles to get you there.

Seasonal business owners are often envied as having the ultimate gig: They work hard for the few months that form their peak season, then sail through the rest of the year with their feet up and a wad of cash in hand. Sound like the ultimate dream? Then it's time for a reality check:

Running a seasonal business requires year-round work and tough self-discipline. Behind every successful seasonal business is an entrepreneur who's willing to work twice as hard and twice as smart as the conventional business owner.

"Like any business or project in life, the outer results mirror the inner world of the individual at the helm," says Terry Kyle, author of400 Latest & Greatest Small Business Ideas. Kyle recommends these four tips for running a tight ship and guiding your seasonal business through the inevitable rough waters ahead.

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Lenovo Builds Notebooks for SMBs

Small business owners are constantly on the go and always looking for the chance to squeeze in a few more hours of work. That makes them perfect candidates for a notebook computer.

In a move designed to zero in on the SMB-notebook love connection, Lenovo today introduced the SL ThinkPad line, which the company says was designed specifically for smaller companies. The SL300, SL400 and SL500 are designed to accommodate a mobile work style, add a touch of multimedia sizzle and sport stylish good looks.

According to Charles Sune, worldwide segment manager for ThinkPad SL Series, the new small business line delivers high-quality, affordable prices and reliable service and support. Sune said SMBs are the fastest-growing segment of the notebook market.

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Tips For Small Business Owners
Finding A Loan That Works For You

With the recent credit crunch, small business owners are having a tough time getting loans. Colleen DeBaise, Small Business Editor for SmartMoney.com, has some tips for funding your business in tough times.

If you're a small business owner who's been turned down for a loan by a bank, don't panic - you do have other options. First, consider a microlender. "Microlenders are non-profits," says DeBaise. "They're generally funded by charitable institutions, government grants." Microlenders usually give out small loans - anywhere from $5,000 to $25,000. You might receive some financial training as well, but DeBaise considers microlenders a great option.

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Oregon Business Overview

Double-digit health insurance hikes
Individuals and small businesses are hit hard in Oregon

Double-digit rate increases are squeezing tens of thousands of Oregonians who buy individual or small-business health insurance, forcing some to join the ranks of the uninsured.

At least 19 health insurers have filed for rate increases since Jan. 1, when the state for the first time publicly posted rate filings under a new law. LifeWise Health Plan of Oregon received the biggest annual rate increase -- 28 percent for individuals and 26 percent for small employers -- which takes effect in the next two months.

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Simplex Certified for ISO 9001 and AS9100

“Our world has changed over the past few years” commented Simplex Quality Manager William Coleman. “Due to a changing philosophy in the marketplace and our constantly increasing interaction with the helicopter OEM’s, Simplex determined that its future depended on the successful outcome of this certification program and we are very proud of what we have achieved.”

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Ingres Explores the Future of Open Source at OSCON 2008

Ingres Corporation, a leading provider of open source database management software and support services, announced today that Bill Maimone, senior vice president of worldwide engineering, will discuss what lies ahead for open source database management systems at this year’s Open Source Conference (OSCON) in Portland, Oregon. OSCON 2008 brings together over 2,500 open source developers, hackers, experts, IT managers, and users to champion the cause of open principles and open source adoption across the computing industry. OSCON will take place July 21 - 25 at the Oregon Convention Center in Portland, Oregon.

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Follow the LEEDer

Portland’s Gerding Edlen Development continues to break new ground in green design.

Ten years ago, Portland developer Mark Edlen and his partner, Bob Gerding, were scarcely known even in their home city. Today, they run the top development company in Portland. Over the past decade, Gerding Edlen Development has been responsible for over ten different LEED-rated condo and office projects, as well as a renovation of a 19th Century armory that became the first building on the National Register of Historic Places to achieve a Platinum rating from the U.S. Green Building Council. Along the way, the firm helped transform two blighted industrial areas in Portland, the Pearl District and the South Waterfront (which now boasts one of only two aerial trams in a U.S. city.)

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Proxim Enables Stephouse Networks to Provide Wi-Fi and WiMAX Service to the City of Portland, Oregon as an Alternative to MetroFi

Proxim Wireless, a leading provider of end-to-end broadband wireless systems that deliver the quadruple play, today announced that Stephouse Networks, a Portland, OR based ISP, has deployed Proxim equipment to provide the city of Portland with high-speed wireless broadband connectivity. Stephouse has deployed a combination of Proxim's Tsunami(TM) MP.11 WiMAX and Proxim's ORiNOCO(R) AP-4000LR Wi-Fi mesh technology to blanket seven square miles of Portland with wireless broadband coverage.

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Portland ad agency strives to maintain edgy yet understated hometown profile overseas

Wieden+Kennedy looks to continue expanding globally while retaining its irreverent Oregon attitude

AMSTERDAM, Netherlands -- In this hub of art and trade, Wieden+Kennedy creatives are settling into lavish canal-side quarters. A rooftop terrace resembles a broad deck at the ad agency's mother ship in Portland's Pearl District. Dogs snooze beneath desks, their calm masking the tumult of a management shake-up that rocked the Dutch office.

In London, Wieden+Kennedy staffers cram into a former textile factory. Its lobby features a mannequin in a suit, a kitchen blender substituting for his head. The slogan on his briefcase, "Walk in Stupid Every Morning," underplays the office's conversion from the company's black sheep to winner of the global Nokia account, leading the agency's international growth.

Back in the Portland headquarters, Buddhist academic rock star Robert Thurman, father of actress Uma, propounds on his latest book about the Dalai Lama. Outsiders make up most of the rapt audience; ad writers are too busy hanging onto key Nike accounts they lost to a competitor, then regained.

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