The Venture Edge

I would like to start by saying that I agree 100 percent with my blog-mate Kathy Allen's last post: It's the private sector, st...d! This so-called economic stimulus plan has become just another boondoggle -- welfare for an ever-growing list of special interests with cozy Congressional relationships. As soon as this river of cash runs out (which it apparently now has), then of course the result will be economic contraction. It's no coincidence that the economic term "double-dip inflation" is suddenly gaining increased attention in the press. 

If you've got a small-ish business and you're looking for financing, you know that there are plenty of challenges. One of these challenges is the fact that many banks are still holding back on making loans at all. Another challenge is that companies are bumping up against the SBA (Small Business Administration) loan limits. Fortunately, progress is being made in Congress to help in both these areas.

When a business is really starting to take off, there are any number of potential obstacles blocking the way to success. As employees are hired, the money begins to come in, and things really start humming, it's easy to think that everything you touch will turn to gold. This is, of course, rarely the case. In reality, it's at just this critical point in the growth of your company that you've got to remain disciplined in your goals, and not overreach. This a lesson that Ken Wolf learned the hard way.

Given the choice, most entrepreneurs would prefer their businesses to grow -- not get stuck on a plateau or, heaven forbid, shrink. But there are times when growth isn't good, and as an entrepreneur, you need to know when to grow -- and when to lay low.

In any business, there are times when you'll hit a ceiling -- when growth slows and sales flatten. How do you get jumpstart your engine of growth and get your business moving again?

While many in our nation bemoan the loss of manufacturing plants and capacity to lower-cost countries -- the losses of jobs and tax base are understandably traumatic to the affected communities and the people who live within them -- the United States is increasingly depending on innovation to lead the way. We are becoming a nation of knowledge workers -- farming out or outsourcing or licensing cutting-edge technologies to manufacturers overseas. It is important that instead of throwing government money after the rapidly disappearing manufacturing base, and instead to invest it wisely in innovation -- the seeds of our future.

Yesterday my wife and I threw a party for my son's "graduation" from fifth grade. Next year he and the rest of his class -- most of whom showed up, with parents and siblings in tow -- will fragment as their paths take them to a variety of different middle schools in the area.After completing my duties on the grill, it was time for me to socialize with the guests. I was talking with one of the moms of one of my son's classmates about just how tough it is getting new business in a crowded field. I told her that I am absolutely convinced (and I am), that if you're really good at what you do -- and if you do what you promise, on time and on budget -- then you'll have more business than you'll know what to do with. And much of this business will come from referrals from happy customers and clients.

Today Stonyfield Farm -- a subsidiary of Groupe Danone -- is the leading producer of organic yogurt in the world, with more than $300 million in annual sales.However, the path the company traveled to get to this place was frought with uncertainty and near-disaster. Stonyfield Farm -- which originated with an organic farming school in New Hampshire -- opened for business in 1983 with CEO Gary Hirshberg's vision for the future and a $35,000 loan from the Institute for Community Economics. The business started with seven Jersey cows and by the end of the year was steadily producing 150 cases of yogurt a week.

You might think with the economy on the skids, that consumers could care less about buying green products -- regressing to old habits of purchasing those less ecologically fit items that generally cost less (often significantly less) than their green counterparts. If that's what you thought, then you thought wrong.

With the business environment as unsettled as it has been lately, you might think that taking time to undertake a planning process might not be the best use of your time right now. I would actually venture that you need to plan now more than ever. One good thing about planning is that it makes you sit down with your team and take some time to think about the priorities and direction of your business. While I agree that the end result should not be a 300-page five-year strategic plan (that might indeed be overkill at this point), a short bullet list of key priorities might just do the trick.