When Colleen and Michael Gross of Verona Island originally came to see Business Advisor Betty Egner, they had owned their business, Verona Wine and Design, for two years. Already successful in their current format, an online business selling items made from repurposed wine barrels, they wanted to expand on their love for wine and wine-inspired items – they wanted to open a retail wine shop and a wine and tapas bar on Main Street in Bucksport.
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Business Highlight: Halcyon Yarn – Bath
Halcyon Yarn, a yarn and fiber art retail and catalogue store located in Bath, has been in business for over 45 years, serving the needs of weavers, knitters, spinners and other fiber artists. When the founder Halcyon Blake decided it was time to retire, her daughter Gretchen Jaeger sought to buy the business and keep it in the family.
What is a marketing plan and why do I need one?
By: Business Advisor Tom Leach
What is a marketing plan? What should it contain?
Of course the starting point is to understand what marketing is in the first place. Marketing starts with who the customer is and their needs and wants. That will vary depending upon which customer segment the company is targeting. Understanding the customer segment’s attitudes and wishes is critical and deserves careful thought. Products then need to be differentiated from competitive choices in order to best satisfy the segment’s desires. Pricing represents the value of the product and must match the product’s attributes and benefits and of course must be competitive. Where the product is sold should represent how the customer wishes to shop for it and acquire it. Finally, communicating the value of the product must take into account which media the customer follows and how the product is presented to them in terms of need satisfaction and how it is a better choice than competitive products. Product positioning is an important issue to consider. Positioning is the customers’ perception of the brand’s value in relation to the competitive choices. In other words, it is the mental definition of the brand in the mind of the customer.
A marketing plan is a document that outlines the situation or business environment that the business is currently operating within and then lays out the objectives, strategy and programs to accomplish the objectives going forward.
LLC or S-Corp…why not both?
Written by: Business Advisor Peter Harriman
Congrats! You are thinking of getting into business! Or you are in business already but wondering if your business is operating under the right type of business! You are looking online to try to figure out the ins– and outs of which business entity formation is best for you, and you are coming to a road block. There are a lot of choices; sole proprietor, partnership, limited liability company (LLC), c- corp, etc. The complexity of the topic should prompt a call to some kind of legal professional to ensure you understand the decision and how it will affect you and your business.
One business entity you might want to discuss during this conversation is the LLC that is taxed like an S-Corp. This article will discuss some general pros and cons of this election, but (again) it is meant as a discussion point with a legal professional. Your accountant will also want to weigh in on the topic too, more on that later.
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How To: Create a good marketing plan
Working with clients over the years has made me appreciate marketing as a key to success. The ability to create a great product isn’t going to assure success. There are many great products and services that fail. You can’t take the “build it and they will come” approach. With a well thought out marketing plan, a good product can exceed the sales of an equal or even better product.
Part of any successful business is identifying their target market and developing plans on how they can reach the customers and demonstrate value. Have you ever tried to identify your customers?
Business Highlight: Aroostook Driving School – Caribou
When Ryan Deprey and Todd Albert, well known teachers and coaches in the local school system, heard that one of the longstanding driving schools in Caribou was closing due to retirement, they saw an opportunity. The pair approached Josh Nadeau, Maine SBDC business advisor at Northern Maine Development Commission (NMDC), to take advantage of that opportunity – to start a driving school business.Read More
Business Highlight: Autotronics – Frenchville & Bangor
Autotronics, a family-owned business that specializes in the building and restoration of emergency vehicles, has been in business since 1958 and serves customers within Maine, New England and even internationally. Business Owner Lita Daigle approached Maine SBDC Business Advisor Josh Nadeau looking for help in restructuring some current loans as well as obtaining funds to help build a new state of the art paint facility at their headquarters in Frenchville, Maine.
Business Highlight: Lost Valley – Auburn
Lost Valley, a small ski area located in Auburn, Maine, has been a staple of the area since 1961. The first ski area in Maine to make artificial snow, the business features 15 trails and a terrain park, offering something for skiers of all abilities. It also boasts one of the largest ski schools in Maine.
When the potential for purchasing the business arose, Scott Shanaman and his wife April jumped at the opportunity. Familiar with the ski industry (they also own and run a ski lift maintenance business) but seeking guidance on obtaining financing and executing the purchase, they reached out to Jane Mickeriz, Maine SBDC business advisor at the Androscoggin Valley Council of Governments (AVCOG). Together they spent many hours working on a business plan, financial projections and loan packaging which Shanaman presented to several banks.
Business Owners Beware: Tips to avoid getting ripped off from online loan scams
When cash flow is an issue and convenient online loan applications just a few clicks away, business owners have access to hundreds of alternative financing options, both legitimate and deceptive. You need money, they say they have it. They offer fast cash and guaranteed, instant pre-approval. Bad credit? No business plan? No problem. Just send in $1,000 to cover “insurance,” “processing” or “transfer fees” along with all your personal and financial information and they’ll get you the money wired into your checking account in 72 hours’ time. Or will they?
If it sounds too good to be true, it probably is. In today’s internet-focused business environment, scammers are increasingly looking for unique ways to take advantage of people – particularly to get access to your money or your personal information. Using sophisticated and ‘real looking’ loan applications, these ‘lenders’ prey on people who are already in financial trouble.
Don’t be their next victim. It’s important for business owners to do their due diligence. Be wary of unsolicited phone calls, emails, advertisements or letters. Be aware of red flags and be skeptical of anyone who asks for personal or financial information. Investing some time researching a lender could save you a ton of money in the long run.
LOOK FOR THESE RED FLAGS –
Upfront fees – You should never pay an advanced fee or upfront cost to secure a loan. Legitimate lenders do not guarantee a loan in exchange for a fee at the time of application. Most real lenders will take fees from the amount you are borrowing, but not before you receive you your loan or before you even apply.
Not requiring credit check or business plan – The reality is that many entrepreneurs have less than perfect credit and because of this are drawn to offers that don’t require credit checks. While there are legitimate programs that have offerings for those with poor credit, business owners should be skeptical of the ‘no strings attached’ sales pitch that many of these scams advertise. Scammers often don’t seem to care about repayment and ignore poor credit or the lack of business plan that can outline a company’s ability to repay and the risk for the lender.
Not listing an address or phone on their website – Domestic addresses do not guarantee that the lender is legitimate. Scammers set up local PO boxes in the US that are forwarded elsewhere. They often don’t list contact information so you have no way of following up when things go awry.
PROTECT YOURSELF –
Research the Lender – Always check a prospective lender with the Better Business Bureau or Maine attorney general’s office. Check their ratings, complaint history and customer reviews. Talk to other small business owners who may have worked with this lender. While you definitely should not believe everything you see, a simple online search can help uncover a lot about the company. Visit their website, social media pages, and find their contact information but don’t be lured by a good-looking website. If still unsure, check with a Maine SBDC advisor who would be more than happy to help.
Keep personal and business information secure – Never give out financial or personal information over the phone or internet to anyone unless you are familiar with the company and you understand how the information will be used.
Read the fine print – Make sure you read all the terms and conditions of a loan before you hit the submit button. Pay close attention to fees, interest rate and the total repayment amount. By clicking submit, you may be agreeing to thousands in fees and a very high interest rate.
Monitor your banking accounts closely – Once they have your information, many online scammers will attempt to make unauthorized withdrawals from your account. Be sure to keep a close eye on your statements and check your account regularly.
The Milkhouse – Monmouth
