Gaining an EDGE
Demirdjian, president of Tampa-based Jagged Peak, an e-business solutions provider, knew there had to be a better way. He envisioned a website integrated with back-end operations such as forecasting, fulfillment, order processing and inventory management.
So Demirdjian created EDGE (E-commerce Dynamic Global Engine) software that allows small businesses to use their website as the center of their businesses. The system can be accessed from any browser. And it's integrated, allowing users to see real-time orders coming in, inventory on hand and fulfillment in action.
Nearly all departments in a small business can use the system: Sales, operations, inventory management, shipping and receiving and customer service. If the user desires, even suppliers can access the system to determine when to make shipments.
The system -- which on average costs $20,000 to $50,000 in up-front setup fees and $150 per user per month -- allows small businesses to better compete with the big boys. "Not only can you predict when your orders will arrive, but you can also control your inventory levels and optimize both your inventory and expectations," Demirdjian says.
A few years ago, just having a website meant an advantage for a small business. But times have changed. Now, to be successful and stay competitive, your site needs to do more -- to streamline your operations, to provide real-time information and to integrate all the players in your supply chain.
John Curls remembers the days before his company took its inventory management online. Then, employees at satellite offices couldn't check inventory or enter orders after those in the headquarters office had gone home for the day. "Online inventory management has helped us out with after-hours work," says Curls, branch manager of Coral Springs-based Barney's Pumps, a pump distributor. "Now we can check things at any hour of the day. Plus, with multiple warehouse locations, the computer is the only way to keep track."
"We all started with manual inventory systems," says Ana O. Martinez, IBM Sales and Distribution's territory executive for Florida. "Then we moved to doing inventory on computer, but it wasn't available online through the internet to the entire supply chain."
Measuring success
Now, IBM offers e-business solutions, powerful systems that go beyond e-commerce to help entrepreneurs better manage their companies. Its system integrates a company's forecasting, purchasing, material management, financial reporting and order processing with inventory management. "It's not about measuring how many clicks you got on the internet or how many people visited your site," Martinez says. "It's about measuring your business success."
Online inventory systems save users time and increase productivity. Says Curls: "It's the difference between being a mom-and-pop-type operation and being a professionally managed
operation."
Working With Your Accountant
How to get the most from your relationship.
By Robyn A. Friedman
Lynda Alfano knew she would need an accountant when she started publishing the Orlando Kids' Directory, a shopping resource for Orlando-area parents. She just didn't know how much.
Alfano used the services of Orlando accountant Judith E. Dacey to incorporate the business and for tax preparation. But she also credits Dacey with saving her thousands of dollars in sales taxes. "She did a lot of research for me on sales tax issues and hunted down a little exclusion that I happened to fit into," Alfano says. "That alone makes her invaluable to me."
Many small-business owners use their accountants for tax preparation and little else. But the right accountant can be a valuable adviser on everything from taxes to financing to succession planning.
"People think that accountants do accounting," said Dacey, who specializes in representing small businesses. "But the world's changing. My firm provided accounting services five years ago. We don't anymore." That's because most small-business owners handle their own accounting functions today, using inexpensive, easy-to-learn programs such as Intuit's QuickBooks. Where Dacey's expertise is invaluable, however, is in analyzing the financial statements prepared by her clients. "I review their financial statements, identify financial problems and recommend tax planning ideas," she says.
What can the right accountant do for your business?
-- Tax planning. Accountants do more than just prepare tax returns; they can offer advice on choosing a business entity, establishing financial controls and lease-vs.-buy decisions. Accountants can advise both established businesses and new companies.
-- General business planning.
Accountants can offer advice on all aspects of running a business. Interested in getting into a new line? Your accountant may be able to tell you if it makes sense. Need advice on cash flow or inventory pricing? Accountants can help.
-- Networking. Because they work with so many other professionals, accountants are in a great position to refer new business to you. They can also help put together deals.
-- Personal tax planning.
Business and personal tax issues are often interrelated. Succession and retirement planning are two areas where accountants can be of assistance.
So how can you find a good accountant? Experts stress that you should seek out an accountant who has small-business experience. Accountants who handle only individuals or large corporations may not be up on the issues facing small businesses. Try to find someone who has experience in your particular industry as well. Referrals are a great way to find an accountant, but meet with the accountant first to be sure that you feel comfortable with the person.
"The most common mistake people make in dealing with me and most other accountants is that they don't expect enough," says Dacey. "Walk in with a goal. Talk and have a dialogue with the person. Make sure they understand what it is you need and what you're looking for."
Government: SBA's New Face
President Bush's new choice to lead the Small Business Administration is Hector V. Barreto. If confirmed by the U.S. Senate, Barreto will replace President Clinton's appointee, Aida Alvarez, who has been SBA administrator since 1997.
A Barreto Snapshot
Age: 42
Home: Los Angeles
George W. Bush Connection: Co-chairman of the Bush campaign in California
George H.W. Bush Connection: Deputy assistant secretary for tax policy, Department of the Treasury (1991-1993)
Business Experience: President of Barreto Insurance & Financial Services, a Los Angeles employee benefits firm (1986-present) and head of Telacu/Barreto Financial Services; vice chairman of the U.S. Hispanic Chamber of Commerce
Smokin'
Business is hot for a central Florida cigar company -- even though the fad has cooled.
By Amy Welch
Like many aspiring small-business owners, Jeff Borysiewisz (pronounced: Bor-si-witz) decided to build a company around something he liked and knew a lot about. Borysiewisz, 32, is an avid cigar smoker, and in the mid-1990s, with cigars growing ever trendier, he decided he wanted to get into the business too. So he spent time with cigar manufacturers in Nicaragua and Honduras, and in 1996, with $40,000 in loans and another $35,000 in credit-card debt, he started selling cigars through a catalog out of his home. The first year, his Corona Cigar Co., based in Ocoee, just outside Orlando, sent out about 7,000 catalogs twice a year. He took out ads in magazines and newspapers and sent catalogs to customers who responded.
Borysiewisz got in early enough to capitalize as the cigar boom crested. For three years, he was a one-man operation, working out of his home. He visited his manufacturers a couple of times a year, added more cigars to the catalog and began sending it out more frequently. Whenever his company generated some cash, he put it right back into the business, mainly sending out more catalogs. He also opened a retail shop in Ocoee in September 1997.
Keeping a step ahead
Another decision helped Borysiewisz stay afloat as the boom fizzled in the late 1990s: About three years ago, Corona Cigar was the first cigar company to sell its product through secure order processing on the internet.
Last year, the company made $2.5 million in revenues, with half of the business from internet sales. Borysiewisz stresses, however, that his catalog is what gets people to the website to order. Distribution of the catalog has increased to 1.3 million copies, and it goes out about five times a year.
"The way you grow a company is by reinvesting and reinvesting," Borysiewisz says. Corona Cigar keeps bringing its customers back, he says, by giving them more variety. And the company is keeping costs low by contracting with overseas' manufacturers to produce cigars with the Corona brand, including Corona Ranchero, Corona Nicaraguan Selection, Corona Intensa, Corona Classico, Corona El Cheapo and Corona El Repo, which was first made from a batch of repossessed tobacco from a company in Nicaragua.
This year the company is concentrating on wholesale markets -- selling in bulk to bars, smoke shops, restaurants and other cigar sellers. Borysiewisz also has hired two salespeople in Florida and one in Michigan. "What's left of the cigar market is a pretty small group," Borysiewisz says. "Now, we're going after market share."
Seeking new ventures
Plans are also under way to build a second store with a coffee bar this summer at Plaza Venezia in Orlando. Instead of sticking with the stuffy, upscale decor found in most cigar bars, Borysiewisz is using a Nicaraguan theme to bring in the average Joe. He also wants to create and sell his own brand of coffee beans, which he is working on now with a coffee grower in South America.
With the new ventures, Borysiewisz projects $3.5 million in revenues this year. But he is still far away from his major goal -- making $100 million in 10 years. "I picture every dollar I spend (on the business) as if I just took it out of my wallet," he says. "This is what I do at night," Borysiewisz says, speaking of how he works from noon to 4 a.m. every day. "I think: 'How do I get that $100 million?' "