Small-business Q&A: First step is deciding what decision to make

Many of the decisions made as a small-business owner can be difficult and stressful. As you gain experience making decisions, you'll be better able to tackle the inevitable choices that are more complex, or must be made quickly.
Here are some tips for making thoughtful, well-informed decisions:
Define clearly what the decision is that needs to be made. Is this really your decision or someone else's and do you really need to make a decision at all? If you do not have at least two options, you have no decision to make.
Brainstorm the alternatives. Draw on all available knowledge resources to learn as much as you can about the implications of each option. Identify contributing factors that potentially can be changed to improve a particular alternative, and those that must be accepted as they are.
Weigh costs versus benefits. The time-tested exercise of listing pros and cons on opposite sides of a piece of paper still works. Try to match up direct causes and effects as much as possible, but also consider intangible influences and outcomes.
Balance your information inputs. Seek out as many perspectives as possible, but remember that many opinions, even those of "experts," are subjective and potentially based on incomplete information. Also, avoid blindly accepting an opinion because it's exactly what you want to hear.
Trust your instincts. Intuition can be your ally, especially if what appears to be a good choice just doesn't feel right. Think about the reasons for the uncertainty and look for further evidence that counters or justifies your concern.
Recognize your limitations. We all have likes and dislikes that can bias our thinking in a certain direction. If you lean toward an alternative simply because "it's always worked," you may be overlooking something.
Divert your attention. Take a break from your decision-making and do something as unrelated as possible. The decision factors may not change in the interim, but a fresh look is sure to make a positive difference in how you evaluate them.
Just do it. Once you have made your decision, get moving on it. Don't agonize about "what ifs" or wonder what someone else might have done. If it turns out that another option was better, so be it. Learn from your mistakes and move on.

6 Foolproof Steps to Reach Your Goals

I remember meeting with one of my very first clients here at the TSBDC.   They owned a local restaurant (no longer in existence.)

Me: So, what is your goal for this year?
Restaurant Owner: Well…to be one of the best restaurants around, I guess. 

Me: Okay, but how much money do you want to make?
Restaurant Owner: You know, a lot. 

Me: Alright, how will you know if you hit the goal?
Restaurant Owner: Well, I reckon if I have money in my account and happy customers, I hit it. 

Me: Hmmm…do you want to write down some specific goals, steps, and measures for that?
Restaurant Owner:  Nah, I have a gut feeling for these things.  Hey, but thanks anyways. 

I swear, they almost patted me on the head like I was a child trying to tie my shoes. 

So why do we need goals?  Goals give you focus, energy, persistence, and make you successful. 

They also need to be written down and visible.  Unfortunately, only 2% of people have written goals and those with written goals are twice as successful, than those without written goals. 

These 6 steps make reaching your goals possible. 

1.  What - What is the goal?  Is it specific?  Is it realistic?  Can it be measured? If not, pick a new goal.

2.  Who – Who on your team is responsible for meeting this goal?  Who will you surround yourself with to meet this goal?  Who are you going to share your goal with that will hold you accountable?

3.  When – When is the deadline?  Sometime this year is not a “when.”  Give it a date.

4.  Where – Where will it be measured?  Is it the profit-n-loss statement, balance sheet, number of customers, number of leads, number of employees, etc.

5.  How – How are you going to reach the goal?  Are there specific steps that you can lay out that will lead you to your goal?   There better be.  Otherwise, that would be like taking a trip to an unknown destination with no GPS.

And most importantly…

6.  Why – Why does this goal matter?  Will it change your business?  Will it change your life?  Will it make you happy?  If you don’t know the answer, start again with Step 1.

And if you need help in setting your business goals for 2016, contact the TSBDC.

Small-business Q&A: Federal agency can help with loans

Starting or expanding a small business takes time, hard work and money. Depending on your type of business and present financial situation, you may need to reach to outside sources for funding. 

One resource you can turn to for assistance in obtaining a loan to start or grow your business is the U.S. Small Business Administration. While the SBA does not directly lend money to small businesses, it can facilitate loans with third-party lenders. Various banks, credit unions, community development organizations and micro lending institutions throughout the U.S. partner with the SBA to provide funding to small businesses without access to other financing options, with reasonable terms.

The agency sets specific guidelines for loans, which are made by its partners, and it guarantees that they'll be repaid by the borrowers. This benefits small business owners by giving them access to much-needed funding, and it eliminates some of the risk to the lending partners.

Points in favor

Among the advantages of SBA loans over conventional loans are lower down payments and longer repayment terms. To qualify for an SBA loan, your business must meet certain criteria regarding business size, financial standing, and others. You must also meet the credit qualifications of the lender.

The SBA 7(a) loan program arranges for loans that may be used to establish a new business or to assist in the acquisition, operation or expansion of an existing business. These loans can be used for various purposes, such as, satisfying short-term or long-term working capital needs; purchasing equipment, machinery and supplies; buying real estate; refinancing existing debt; and more.

The SBA Microloan program provides loans up to $50,000 to help businesses with lower dollar financing needs. You can use microloans for working capital and purchasing inventory, supplies, furniture, equipment, machinery, etc.

For information about SBA loan programs, visit www.sba.gov/loanprograms.

Seminar ahead

Also, learn more about SBA financing by attending the seminar "Business Plans to Launch and Grow & Funding to Make It So," hosted by the Houston Community College and SCORE. This seminar will be held 12:30-3:30 p.m. Jan. 15 at the HCC-Spring Branch campus.

The following senior officials will speak: Tim Jeffcoat, director, SBA Houston District; Nasrullah Khan, chief lending officer of Wallis State Bank, a leading SBA lender; Richard Gianni, regional vice president of LiftFund, a micro lender; and Jeff Jones, president of Advanced Business Brokers and SCORE volunteer.

To learn more about this seminar and register, visit www.houston.score.org/local workshops.