09-10 Small Business Makeovers

Sponsors of the Walsh College Business Leadership Institute met today with some of the winners of this year’s “Small Business Mini-Makeover.” The winners will receive 3-hours of free business management services, ranging from strategic planning and legal advice to technology audits, depending on the needs of the company. Results of the mini-makeovers will be revealed at the Fourth Annual Small Business Conference scheduled for May 6, 2010. Premiere sponsors are CPA firm Derderian, Kann, Seyferth & Salucci, PC and Foster Swift, Collins & Smith attorneys.














From left: Deborah Lancaster, owner of Harobed; Ursula Scroggs, managing partner of Derderian, Kann, Seyferth & Salucci, PC, sponsor of the mini-makeovers; Carol Kirkland, owner of AVE Office Supplies; Beth Schensky, owner of EA Schensky & Associates, Inc.; and LaVerne Reinhardt, owner of Reliance Court Reporting.

Achatz Pies Gets Software from Microsoft

Walsh BLI sponsor Zenacomp delivered 17 copies of MS Small Business and one Small Business Server to Achatz Handmade Pie Company on Friday. The software was donated by Microsoft Corporation, with technical assistance provided by Peggy Feltner from Zenacomp. Achatz owner Wendy Achatz expressed gratitude to Walsh College, Zenacomp and Microsoft.
http://www.youtube.com/watch?v=rATdMIV4DiM

Hot Topics for Small Business: Improving Collections
Tuesday, July 21, 2009
8:30 - 10:30 am
Walsh College Troy Campus
Presenters: Mike Semanco and Candi Pavilscak from Hennessey Capital
Does your company employ a sound strategy for collections? Could it use some tweaking? Are you panicked everyday waiting for receivables to appear? Develop a strategy that starts with the sale and ends with the check in your hands at this workshop for small business owners, bookkeepers, sales staff and CPAs. This workshop will provide you with a list of resources as well as a checklist of activities to get you started. Don't miss this timely workshop. Registration fee is only $15 (student rate) for all, register here.

Small Business Makeover Recommendations Working Document, Infra Corporation

Walsh Small Business Makeover Sponsors met with the owners of Infra Corporation and made the following recommendations:

Sponsor Company Name: Foster, Swift, Collins and Smith, PC
Attorney Rebecca Davies completed a legal review of Infra's employment contracts, legal issues and risks. Various options were offered for Infra to optimize its workforce.

Sponsor Company Name: Hennessey Capital
After meeting with Infra, Jeff Wright advises Infra to put their assets to work and grow sales or invest. Suggests the owners invest dollars for people and M&E to do so. This should be done on a strategic basis to justify the increase in expenses and overhead. The company can leverage its business assets to create some working capital availability if and when needed.

Sponsor Company Name: UHY Advisors
Dawn Grego and Alan Lund had an introduction meeting with Infra to assess operations and application of UHY's cost model tools. UHY's approach, tool set and consulting services, provides limited value for a company such as Infra, where there is limited production of specialty products.

Small Business Makeover Recommendations Working Document, Achatz Pies

Following meetings with the owners of Achatz Handmade Pie Company, the sponsors made the following recommendations:

Sponsor Company Name: Foster, Swift, Collins and Smith, PC
Frank Seyferth, met with Achatz and was able to prepare and execute the following legal documents:

• Last Wills (for owners)
• Revocable Living Trusts
• Durable Powers of Attorney
• Medical Directives
• Documents to fund their business and certain parts of their real estate to their Trusts

Recommendations for Future

• Possible re-organization of the business.

Sponsor Company Name: Foster, Swift, Collins and Smith, PC
Rebecca Davies had an initial meeting with Achatz, regarding hiring practices

Recommendations for Future

• Draft employee handbook and conduct follow-up meeting
• Draft memorandum summarizing hiring practices and future recommendations

These will provide a road map for employees, help provide consistency for supervisors and showcase all the benefits that Achatz already provides to its employees.

Sponsor Company Name: Hennessey Capital
Jeff Wright conducted an initial meeting with Achatz and has made recommendations for two separate scenarios for future growth of the company that he has shared with the owners.

Sponsor Company Name: Mastermind Solutions, Inc.
Renee Robertson completed an initial meeting to review the Human Resources Audit Questionnaire, existing Human Resource documentation, and an actual personnel file.

Mastermind Solutions would like to implement the use of 3-ring binder which includes in each section:

• Summary of what's included, along with additional information that may need to be considered by the client, or stating of information that is not included
• Current policies and/or forms
• Recommended policies and/or forms
• Resources and general information pertaining to that section

Topics addressed by Mastermind Solutions were; recruiting, new hires, management, discipline, termination, miscellaneous.

Sponsor Company Name: Payments Authority
Amy Smith, Denise Bahs, Anne LaPine, completed a Payments Process Review and Analysis

They met with Achatz to review their current payment and financial processes and discussed key areas for change:

• Identified areas of risk or liability
• Outlined the benefits of knowing the balances in all accounts at any given time
• Explained why they should monitor all account activity on a regular basis
• Reviewed their various payment and collection methods and introduced alternative automated solutions for which they could take advantage.

Recommendations for Future:

• Questions to ask their financial institution (or others) when looking to automate processes and implement new applications.
• Recommendations for a Direct Deposit marketing campaign to increase its use by employees. Offer key messages, promotional materials and on-site assistance from The Payments Authority staff.

Payments Authority was able to make recommendations for Achatz in several areas:

PAYROLL

Currently, there are approximately 90 Achatz employees. Direct Deposit of payroll is offered through payroll provider. Only 25-30% of employees use DD, which has been offered for 4-5 years. Almost 100% of employees are hourly with varying wages each week. In addition to employees at the plant, they have 6 retail locations, so those who get paychecks get them Wednesday night.

Payments Authority recommends a campaign to promote Direct Deposit to employees. Look for ways to encourage use, especially by employees at retail locations. It is also advised to consider establishing a separate account for payroll and human resources in order to segregate this activity from general operating expenses.

RETAIL OUTLETS/CONSUMER SALES

Currently, there are six retail locations and one website as outlets for consumer sales. Achatz accepts credit cards, cash and checks. American Express is accepted at four locations. The website accepts PayPal transactions. The majority of transactions are credit/debit card.

Using electronic transfers will provide greater flexibility for accessing funds or determining whether short term funding is needed. Incoming funds from the various store locations can be identified separately so that reports can be pulled to see how each outlet is performing from a revenue prospect. Credit/debit card transactions should also be posted.

ACCOUNTS PAYABLE / RECEIVABLE

Achatz uses QuickBooks for their accounting system. Invoices/bills are entered twice per week and checks are cut. The approval for payment process seems somewhat cumbersome as the paperwork is touched several times by several people.

Payments Authority recommeds a "deeper dive" on payables. Segregate by: overhead (electric, gas, insurance, accounting, legal, telecom, etc) and supplies (fruit, flour, boxes, thins, etc) . Post charges to multiple general ledger accounts to separate these very different payables. Identify those "suppliers" who can either debit the Achatz account, or who are willing to receive a credit for goods or services. Power/utility companies can invoice electronically and debit on due date via Direct Payment.

Walsh College hosts Third Annual Small Business Conference on May 6 at Novi campus

Walsh College is hosting the Third Annual Small Business Conference from 8 a.m. to 1:30 p.m. on Wednesday, May 6, 2009 at the Novi campus. Highlights of this year’s conference include keynote speaker Jim Hiller, president and CEO, Hiller’s Markets and a chance to sign up to be considered for two small business makeovers next year valued at $50,000 each. In recognition of the economic climate, ticket prices are reduced to $25 for Walsh alumni and partners and $50 for the general public.
During the half-day conference, participants will learn the results of the extreme small business makeovers for Achatz Handmade Pie Co. and Infra Corporation. Breakout Session topics include:
· Making a Profit in Michigan?
· H.R. Regulations That Affect Your Michigan Small Business.
· Say Yes to Michigan Small Business Resources!
· Meaningful Legal Documents for the Michigan Business Owner
· Michigan Field of Technology Dreams
Exhibit tables are available to exclusive providers of small business products and service. Exhibitor table fee is $250. Contact Sigrid Murphy for more information or call (248) 823-1384 or smurph2@walshcollege.edu.

To register or for more information about the Walsh College Third Annual Small Business Conference, visit www.walshcollege.edu/smallbiz.

Loans for Small Business

By Chad Halcom
Crain's Detroit Business
Oakland County officials hope waived fees, greater latitude in refinancing, merging business debt and other new provisions of the federal stimulus package could curb a sharp decline in local small business assistance in recent months. Activity in the Oakland County Business Finance Corp. fiscal 2009 is off nearly two-thirds from this same time during the previous fiscal year, said Catherine Rasegan, loan and finance officer for Oakland County Planning and Economic Development Services. That’s comparable to a decline of more than 60 percent in loan assistance nationwide through the U.S. Small Business Administration, and more than 65 percent decline in Michigan. Rasegan and Oakland County Executive L. Brooks Patterson both addressed a crowd of 200 or so attendees Wednesday at a “Small Business Financing Forum” in Birmingham, on changes to SBA lending and local business development incentives under the American Recovery and Reinvestment Act. The OCBFC administers SBA loans to supplement private financing for real and personal property improvements to businesses. A similar local authority, the Oakland County Economic Development Corp., helps sell bonds to finance construction and building improvements that will add or retain jobs at local businesses. In fiscal 2007 the OCBFC approved $39.8 million in loan assistance to 28 businesses, and Rasegan said 2008 fiscal numbers were fairly similar. But this year, the agency has approved only about three loans in the past quarter or so, she said. “There’s still a lack of the private financing to complete those loans, even with SBA assistance, and in many cases you also have the borrower deciding it’s not a time due to the market or the rates they can get,” Rasegan said. The SBA loan assistance approved by OCBFC typically covers just part of a business construction or expansion project; up to 50 percent of the project cost must still be covered by traditional bank financing — a tough sell to borrowers and lenders alike in the current financial market. But Rasegan said the interest level in both OCBFC and OCEDC assistance has climbed again, since the changes enacted after ARRA was signed by President Obama Feb. 17. “We’ve already seen a greater interest in the form of queries, and more applications have been submitted in the past month (since the ARRA was signed) than in the entire preceding quarter. It’s hard to read too much into that since that quarter is usually a slow period,” she said. “But if the (post-stimulus) rate of application continues, it could climb all the way back to a normal activity year.”