So You Want to be an Entrepreneur

By Sharon Pinder



Dear Sharon:

2009 was my absolute worst year in business. As we enter into this new decade, I don't know what to expect. There are threats of increased business fees and new taxes. As a country, the business climate is still bleak. We are still faced with record unemployment, underemployment, tight credit, rising prices and lost business relationships. What realistic advice can you give to those of us trying to hang in there through this economic downturn?

TLR - anxious business owner



Dear TLR:

One of my favorite quotes is the Chinese proverb: "To know the road ahead, ask those coming back." Thus, I decided to ask the opinion of business titan Raymond Haysbert. Haysbert turns 90 years old this month and has been a serial entrepreneur for more than 60 years. He is best known as the retired chairman of Park Sausage and currently heads his family's business, the Forum Caterers in Baltimore. Over the years he has also owned and operated more than 10 businesses ranging from an accounting service, motor rentals, spirit shop, ice cream manufacturer, deli, two restaurants, two insurance agencies and a coal company.

"During tough times, business owners should focus on the customer," says Haysbert. "When the chips are down, entrepreneurs usually do a good job of cutting expenses, watching credit, etc. Where we often fall short is in the area of customer focus. Know your customer. I find that a lot of small business owners do not know their customers. It is not just the demographics; your focus must be on psychographics - how are your customers feeling? What are they thinking, and how are they reacting?"

He further advises, "Create appeal. Whether it is a barbershop, small contractor or electrician, seek to understand what your customers demand. If you are in business services, you have to build the demand. Go where your customers are, and understand how to communicate with them."

Other tips Haysbert shared: "Make your employees financially literate. When they can understand the difference between inventory turn and margins, their perspective on the sale will greatly improve. Finally, reward employees who deliver leads that turn into clients. Now is the time to reinforce the notion that everyone is in sales and marketing, regardless of his or her job title."



Sharon R. Pinder is CEO of The Pinder Group (www.thepindergroup.com) and the nonprofit Center for Business Inclusion and Diversity (www.cbidinc.org). She can be contacted via e-mail at sharon@thepindergroup.com or by calling 410-489-7098.