Florida Small Business Development Center

I lived in the Netherlands  for 11 years and the Dutch have a saying “Meten is Weten” which means “Measuring is Knowing”.  In business, I translate this to “Know Thy Numbers”!  I have been working with entrepreneurs and small businesses at the Florida SBDC at UNF for over five years and I am still surprised at how many business owners do not have a handle on managing and administering their finances.  I would like to share with you what I call the “5-Line Income Statement”.  Author Sara Schafer’s Equation for Business” states:

Sales – Cost of Goods Sold (Variable Costs) = Gross Margin – Overhead (Fixed Costs) = Profit (Net Margin)

If you know these numbers you can also calculate your break-even sales number in two steps.  First you have to figure out your contribution margin (cm) which is your gross profit divided by your sales.  This is the percentage of every sale you have left over to pay (contribute to) your fixed costs.  This is also known as gross margin.  Then you divide your fixed costs by your “cm” and this gives you your break-even sales number.  The break-even calculation is handy because you can use it to see how much you have to increase sales to cover an added expense (fixed cost) of something (like a new employee or piece of equipment).  Many business owners are successful in spite of their financial illiteracy, ignorance or apathy.  They got lucky.  Other business owners skilled in financial management have built sustainable enterprises where others would have failed.  Which one are you?

by Mark Yarick, Business Consultant, Florida SBDC at UNF

Filed under: Small Business Blog, Small Business Development Center at the University of North Florida by Small Business Resource Center Thursday, May 16th, 2019
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As part of National Small Business Week (May 5th-11th, 2019) help us celebrate the SBA’s 2019 District and State of Florida Small Business Week Award Winners.  Did you know our Northeast Florida Region received seven out of the eight awards including the State of Florida Small Business Person of the Year?  Join us when our winners receive their awards at our 27^th Annual Small Business Week Event and hear our keynote speaker Magie Cook, entrepreneur and creator of Maggie’s Award-Winning All Natural Fresh Salsa & Dips.  She will be telling her rags to riches story of starting a business that became a multi-million dollar success.

North Florida District and State of Florida Small Business Person of the Year-Mr. Jeff Turbeville, CEO, Sunshine Peanut Company (Jacksonville, Florida)

North Florida District and State of Florida Veteran-Owned Small Business Person of the Year-Mr. Frank Brewer, President, Alpha Omega Global LLC (Jacksonville, Florida)

North Florida District and State of Florida Rural Business Owner of the Year-Ms. Dallas Hart, President, Hart 2 Hart Academy, Inc. (Lake City, Florida)

North Florida District and State of Florida Minority-Owned Small Business Person of the Year-Mr. Courtney Powell, President, Ace Applications, LLC (Orlando, Florida)

North Florida District Woman-Owned Small Business Person of the Year-Ms. Laurie Morgan Lee, President, Elevate Business Law, PA (Jacksonville, Florida)

North Florida District Young Entrepreneur of the Year-Mr. Brandon Stallings, CEO, SmartBox (Jacksonville, Florida)

North Florida District Small Business Advocate of the Year-Ms. Sue Miller, Business Development Officer, Navy Federal Credit Union (Jacksonville, Florida)

North Florida District Community Partner of the Year-City of Jacksonville, Small and Emerging Business Program (JSEB)

Register Today!

Filed under: Jacksonville, SBA, Small Business Blog, Small Business Development Center at the University of North Florida by Small Business Resource Center Thursday, April 11th, 2019
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Kalai Sankar is the founder of Shiva Robotics Academy, a robotics education institution for students in grades K-8. A Carnegie Mellon Certified Robotics Instructor and professional LEGO educator, she has introduced after-school robotics programs in 18 Title I schools in Jacksonville. She has partnered with organizations like Renaissance Jax, Communities in Schools, and Girl Scouts of Gateway Council, to help hundreds of Florida students compete in tournaments nationally and internationally.  Kalai is the recent recipient of Florida’s Best Robotics Coach award and Jacksonville Business Journal’s Innovator in Education Award.

Where did the idea for Shiva Robotics Academy come from?

I was a stay at home mom for a number of years and I slowly began to realize that while I was watching Barney, the world was changing and evolving around me!  As a mom with two daughters I had been blogging about my parenting experiences and taking on various part time jobs. The first time I took a full time job was in the summer, so I needed to find a camp for my girls where their minds would be engaged.  I realized quite quickly that it wasn’t making financial sense to pay for camp based on my income, so I gathered the friends of my daughters and started conducting the camp myself.  I guess you could say that necessity was the mother of invention!

What are some of the activities you provide at Shiva Robotics Academy?

We offer a whole range of activities. The daylong robotics camps are our most popular.  We also offer weekly classes that consist of an hour and a half one day a week where any level of robotics learner can learn to build and program a simple robot to see what all the excitement is about.  This is a three-month course – 12 classes, after which students take an online exam to confirm what they have learned.  When they pass we ask these students to try out for the Robotics Teams.

With spring break and summer around the corner, what are some of the events you have coming up?

Spring camp for grades K – 8 will run two different sessions – March 11-15 and March 18-22.  We will have a thematic activity each day. For example, the first day is about animatronics, so kids will build robots that look like animals – spiders, snakes, elephants, etc.  Starting in June we will again run Summer Camp over the entire summer with each week focusing on a different theme.

How has the FSBDC at UNF helped you take this idea from where you are now and help you build your dream?

The SBDC has been very helpful – from the moment I stepped in the UNF office there were so many people there to offer assistance.  I felt reassured that I could make it with their help.  I first met with Don Zavesky, PTAC, who initially showed me all sorts of government opportunities that we could bid for and contracts I could win – he helped me see the bigger picture where I could take my business and helped me envision what could happen 10 years down the road. He then referred me to Linda Teza Kulka.  Linda has been more like a therapist at times – our first session I was sharing all my anxieties!  She is helping me create a master plan and helping me understand all the functions of the business that I will need to pay attention to as the company continues to grow. Having no business background, this has truly been eye opening and with this level of support I have much more confidence in the future.  In 10 years I will remember that the SBDC helped me build the foundation that allowed me to reach my goal.

Filed under: UNF Small Business Blog by Small Business Resource Center Tuesday, March 12th, 2019
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We say it every year, but it’s hard to believe another year has come and gone. 2018 was a year of professional and private ups and downs for most, but as we usher in 2019 many businesses look for new and sustainable ways to find customers and grow sales.

Economists and investors largely agree that the United States is due for another economic slump in the coming years. With the threat of another recession ahead, a targeted export growth strategy now, could be what sets one business ahead of others in an economic downturn later.

History has shown that companies that export are hardier, meaning that their broadened portfolio of customers outside of the United States bolsters their ability to handle currency fluctuations, varying consumption trends, and flagging employment rates. This makes sense when one considers that a poor economic year in the United States does not often mean the same for other countries. This was made evident after the Great Recession, when it became clear that the Financial Crisis of 2008 impacted developed countries in North America and Europe much more significantly than developing nations such as India. During this period, businesses that were already established in the global marketplace had a much less difficult time making ends meet, often relying in whole or in part on their export sales department.

It is also worth noting that companies that export are typically more profitable and pay higher wages than their non-exporting counterparts. So even if the economists are wrong and the U.S. economy remains in a state of growth and full employment for many years hence, an export strategy is an effective and energizing way to bring in the bacon. What’s more, with the prominence of platforms such as Amazon proliferating the field of e-commerce, there are more and more ways to easily reach customers abroad.

A great way to get started with an export strategy is to contact your local SBDC. The Florida SBDC (Small Business Development Center) has a network of international trade specialists around the state that can assist you with the development and implementation of an export strategy that fits your business culture and your financial goals. You may even be eligible for an Export Marketing Plan grant, which covers the majority of the cost of having an Export Marketing Plan written exclusively for you and your business by a trade specialist with experience in the field.

For more information about getting started with your own export strategy, please call (904) 620-2476 or reach us on the web at /sbdc-services/international-trade/.

by Julia Montgomery, International Trade Specialist, Florida SBDC at UNF

Filed under: International trade, Small Business Blog by Small Business Resource Center Wednesday, January 23rd, 2019
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So you’ve decided it’s time to turn that lifetime of sweat equity accumulated in your business into cash to support your dreams of traveling around the world, or at least around a few golf courses. You are convinced that it is worth millions, but when that first offer comes, you find that at best, after a broker’s commission and income taxes, you will see a third or more evaporate before you have the chance to find a broker to invest those few remaining bucks.

Here are a few suggestions to consider:

1 – Allocate as much of the sale to the sale of goodwill, not toward non complete agreements or asset sales. That will maximize the portion of the sale to be taxed at capital gains rates.

2 – Consider selling under an installment agreement, meaning that you hold a note for a few years from the buying instead of taking it all in cash. That defers the income tax over the life of the note keeping your annual income down. It also will pay you a rate of interest somewhat higher than you would get at a bank. It might even get you a better price, because they can better afford to pay more over time than in a lump sum. It could save the buyer some closing costs over bank financing.

Continue reading here.

Filed under: Small Business Blog, Tax Help, Tax Tips by Small Business Resource Center Wednesday, January 9th, 2019
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As noted in my previous blog, Santa and the Elves, at the request of a number of long-time readers, I am bringing back updated versions of two of my Christmas fables for December. In this blog, business owner Dale Wright is visited by the spirits of Business Past, Business Present, and Business Future and learns some valuable lessons. Apologies to Charles Dickens…

Business owner Dale Wright awoke from a troubled sleep to see what appeared to be his former CPA standing over him. But Michelle Lerner was a ghostly apparition, he could see right through her! Sitting up in bed, he cried out “Who are you?  What do you want?”  “Don’t be an idiot Dale, didn’t you ever read A Christmas Carol by Charles Dickens,” replied the apparition? “Of course,” said Dale, “and I’ve seen several movie versions. But what do Scrooge and Marley in 1843 have to do with you?”

“I,” uttered the apparition, “am part of version 2.0, the updated story adapted to your business. I came here tonight to save your bottom line, which you have squandered away after my untimely death at the age of 93. Clearly, in the 32 years I was your CPA you did not learn how to project cash flow or write a business plan! And look where your complacency has gotten you…” Dale considered this. It was true. Since Michelle had passed away three years ago he did without a CPA, using software to file his tax returns, while ignoring all the management reports that could be printed. He was running his business by the seat of his pants, or to be more correct, it was running him… around in circles!

Continue reading here.

Speaking of Business Blog by Dr. Philip R. Geist, Area Director, Florida SBDC at UNF

Filed under: UNF Small Business Blog by Small Business Resource Center Friday, December 21st, 2018
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No, it’s not a new rock group. Santa and the Elves are successful entrepreneurs who employ good management practices to have an effective business model. Let’s take a closer look at some of those practices:

Branding, Public Relations, and Co-Branding: Santa and the Elves have established a world-recognized brand, promoted it to families with children and to the world in general in multiple forms of media. Those include verbal stories, songs, print and motion media, and even in dreams along with sugar-plum fairies. They have co-branded products from Coca-Cola to shampoos in order to achieve greater brand acceptance. A quick scan of product announcements will show that Santa is as popular as ever. Unless you brand your business and promote the brand, you will not stand out in the consumer’s mind.

Business Continuity: As Santa and the Elves must make their deliveries on a specific day and time, regardless of weather, they have developed a business continuity plan. By investing in a Reindeer with the latest in technology, the Nose-So-Bright option, Santa has ensured that even in fog he will be able to navigate the world and make on-time deliveries. If you identify the critical functions in your business and develop an alternative or can mitigate their impact, your business will be able to function as planned when it would otherwise be impeded.

Customer Relations: Santa and the Elves have created multiple pathways for boys and girls though out the world to contact them. They employ written mail addressed to “Santa, North Pole” via e-mail, by texting, contact via multiple Facebook and other social media sites set up regionally and in large cities, in-person with local representatives in branded outfits, and wirelessly by plain old-fashioned prayers. Unless customers and potential customers can easily reach your business by the contact of their choice, they will not be able to ask questions, share ideas and place orders.

Continue reading here.

Speaking of Business Blog by Dr. Philip R. Geist, Area Director, Florida SBDC at UNF

Filed under: UNF Small Business Blog by Small Business Resource Center Friday, December 7th, 2018
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Hericlitus of Ephesus (circa 535BC – 475BC) was a Greek philosopher who is credited with creating and documenting the phrase, “Change is the only constant in life.” In the Handbook of Organizational Change and Innovation, edited by Marshal Scott Poole and Andrew Van de Ven [2004 Oxford University Press; ISBN 0-19-513500-8], a number of scholars examine how organizations react to change. A number of contributors discuss how businesses that have a perspective of strategic planning that includes adaptation and champions change are more likely to be sustainable.

Change, whether natural, man-made, or coming about a result of social changes and perspectives will always affect business. The increasingly violent weather and natural events, from hurricanes and floods, to earthquakes and volcanos, both causes tragedies and opportunities for businesses. Businesses in affected areas that did not at a minimum have a continuity plan will suffer, while those that did or were fortified have the opportunity to return to the market faster.  Each disaster event will spawn new business opportunities to provide a product or service to customers that will mitigate or prevent future damage. Continue reading here.

Speaking of Business Blog by Dr. Philip R. Geist, Area Director, Florida SBDC at UNF

Filed under: Small Business Blog by Small Business Resource Center Wednesday, October 17th, 2018
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With October being Cybersecurity month we have a few tips to share from our SBRN Member BoxMeta:

Email & Web Security

• NEVER enter your password if prompted by a link from email or a redirected website, regardless of the sender.  91% of cyberattacks start with phishing.
• Don’t trust emails from well-known brands such as Microsoft, Adobe, Google, DocuSign, Facebook, LinkedIn, Delta, Amazon, FedEx, etc.  They are likely fake.
• NEVER accept Facebook or LinkedIn invitations from email links or accept shared documents unless you are expecting or verbally verified.
• Use business class email, such as Office 365 or Google Business.
• Enable Private browsing.
• Don’t use your business email account for personal communication.
• Keep 2 or more separate personal email accounts to isolate important email.

Mobile Security

• Beware of Public Wi-Fi.  Wi-Fi networks are very easy for hackers to duplicate
• Use cellular service if on a mobile device. Use your mobile device as a hotspot for your laptop.

Protect your Bank and Credit Cards

• Avoid using Debit Cards unless absolutely necessary.  Use Credit Cards.
• Shield the pin pad when entering your pin code (could be a micro camera).
• Beware of Skimmers & Shimmers.
• Use 2 Factor authentication for your bank, financial sites and email. A compromised email account can be used as vehicle to reset passwords to your financial sites.
• Establish an isolated checking account for electronic bank transactions (PayPal, automatic withdrawals, etc.).

Mobile Security (Mobile phones, tablets & laptops)

• Apple iOS is more secure than Android but use the same amount of caution.
• Encrypt laptops (I recommend this be done by a professional).
• Use webmail instead of an email program on your laptop or tablet.  Don’t select ‘remember password’.

Data Security Best Practices

• Password Management
  • Do not repeat passwords.
  • Use phrases instead of words to help remember.
  • https://howsecureismypassword.net/.
• Have any of your accounts potentially been compromised as part of a vendor data breach? https://haveibeenpwned.com/.
• Never connect an unknown USB device into your computer or network.

Business Network Security

• Business Class Firewall
• Monitors unusual traffic on the network.
• Isolate Guest/Internal Wi-Fi.
• Require a VPN/Gateway to bypass the firewall for any remote connections.
• Intrusion Detection/Protection.  Proactive monitoring of malicious activity on the network.

Antivirus, Antimalware, Security & Software Updates/Patches.

• Implement an internal system for automated management and monitoring of these processes.
• Hire an outsourced IT provider to centrally monitor & manage your systems maintenance.
• Remove access for staff to authorize or process software updates and patches. If not outsourced, assign a single person internally to approve and process software updates.

Password & Security Policies

• Enforce Complex passwords on all systems. Complexity is more important than frequent changes.
• Password management programs are also subject to breaches. Exclude the most sensitive and valuable passwords.
• Create phrases instead of passwords for greater complexity.
• Implement a BYOD policy for managing password policy and remote wipe of personal mobile devices that contain company data.
• Use webmail on laptops instead of Outlook. Don’t select ‘remember password’.

Network Access & Controls

• Procedure for disabling of systems and network access for terminated users.
• Remove user admin rights from workstations.
• Limit data, software & application access only on an as needed basis.
• Block data transfer on USB ports.
• Physical Security – Maintain access controls& especially vendors or guests who are unattended or after hours.

Business Continuity & Backups

• Not all backups are appropriate: Consider
  • The type of data you are backing up (different requirements for QuickBooks, sql, etc.)
  • How long will it take to recover? Is that acceptable?
  • Where will I put it when it’s recovered?
  • Allowable downtime for each business process and application.
  • Recovery & Retention of emails that are deleted & purged, either by a rogue employee or inadvertently.

Filed under: Small Business Blog by Small Business Resource Center Monday, October 8th, 2018
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OMG! Has it really been a month and a half since I posted my last blog? How did that happen? Where did the time go? Could it have fallen into a “black hole?” Somehow I had lost track of time (a cardinal sin for someone of German descent). As penance, I will focus this blog on a discussion of time and time management.

John Archibald Wheeler (1911-2008) was a native of Jacksonville, Florida, an eminent theoretical physicist who collaborated with Albert Einstein, and interestingly the originator of the words “black hole” and “wormhole.” In his studies of space-time continuum, he mused, “Time is what prevents everything from happening at once.” I will propose adding a corollary to that phrase, “Lost time is what prevents anything from happening at all.”

Small business owners have many demands on their time; they usually fill the CEO (Chief Executive Office) role of planning strategy for their company, which is not an easy task in an uncertain economy. They also wear the COO (Chief Operating Officer) role of overseeing day-to-day operations. There are also the roles of Chief Financial Officer, Chief Information Officer, and they usually administer the functions of human resources, advertising and marketing as well. Then there are the needs to be a worker or perhaps the delivery driver if an employee is absent.  Continue reading here.

Speaking of Business Blog by Dr. Philip R. Geist, Area Director, Florida SBDC at UNF

Filed under: Small Business Blog by Small Business Resource Center Wednesday, September 19th, 2018
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