Businesses fail for a variety of reasons, not the least of which is underestimating their capital needs.
SCORE is a nonprofit organization of former and current business people who volunteer to help entrepreneurs overcome business hurdles. Its counseling services are confidential and free. That's right. Free. What began in 1964 now has some 10,500 volunteers in 389 chapter offices across the country. We checked in with the organization's chief executive officer, Kenneth Yancey, to get the skinny on SCORE.
ID: What are SCORE's priorities for 2008?
KY: Providing our services to more small businesses and more individuals who are interested in starting a business. We plan to reach out to underserved demographics and geographic markets. We plan to launch a women's initiative in 2008, and we will develop a diversity task force to assist in broadening the diversity of our client and counselor base. We will continue to leverage technology as a tool to deliver services, including our online counseling and our recently launched online workshop, both of which can be found at www.score.org. We also will aggressively partner with other companies in the small-business arena to create greater awareness of SCORE.
ID: How has SCORE evolved since you joined the organization in 1993?
KY: The biggest change since 1993 is related to the impact of technology on businesses in general and particularly small business. Since 1993, the use of the Web to attract, serve and communicate with clients, volunteers and other stakeholders has had a huge impact. While one-to-one counseling offered by our volunteers remains the hallmark service that SCORE offers, online counseling via e-mail now represents almost 32 percent of our business. We are training existing and would-be small-business owners in more than 3,000 online workshops sessions each month. Today we are considering our role in the world of social networking and user-generated content. We are becoming more active in the world of blogs and online communities. Because of the amount of information available on the Web, our clients are generally more knowledgeable and often better prepared. The Web also provides our counselors with quality information and resources they can use in the counseling process. Our Web site receives more than 250,000 unique visitors each month.
ID: What are some of the most common reasons fledgling businesses fail?
KY: Businesses fail for a variety of reasons, not the least of which is underestimating their capital needs. Often businesses start on a shoestring and the smallest glitch can cause major financial issues. Developing a detailed and well thought-out business plan, including cash-flow projections, is a great way to avoid that mistake. When working on the business plan or a feasibility study, it is a good time to bring in an outsider with quality business experience (a mentor) to challenge the assumptions and ask hard questions. That mentor can come from a variety of places, friends, family, local business groups, SCORE or small business development centers. Often, aspiring small-business owners don't fully understand the challenge and the commitment necessary to be a successful business owner. There are a number of good individual assessments online that allow a person to "test" their entrepreneurial tendencies.
ID: SCORE has some 10,500 volunteer business counselors. What's in it for them? Why do most offer their services?
KY: SCORE is fortunate to have a cadre of very committed working and retired volunteers. When asked, most say that they volunteer to give back. They are in it for the personal satisfaction of using their knowledge and abilities to help others. Many point to specific businesses that they have helped to launch or grow within their communities and talk about the enjoyment that they have received from the relationships that they have developed in the process. In addition to giving back, many of our retired volunteers see SCORE as an opportunity to stay current and stay engaged. Most volunteer with other organizations in addition to SCORE.
ID: What's the best piece of advice you ever got?
KY: My dad was a banker. He said that good business was doing what was best for the client and best for the bank at the same time. I think that applies to all business, and it presents a great challenge to live up to. He also used to say, "the harder I work, the luckier I get." I have been lucky. Dave Buffam, my predecessor at SCORE, impressed upon me the importance of regular, open and honest communication with all stakeholders. Today that's called transparency. I have found that to be excellent advice over the last 15 years.
