SCOREChicago, which connects volunteer mentors with rising entrepreneurs, is seeing more minorities and seniors age 65 and older starting businesses.
So says Douglas Nohe, chairman of the not-for-profit organization, with 130 volunteer mentors and consultants, all experienced business people, who provide counseling.
“One third to half of our clients are older, 50 years and over,” said Peg Corwin, a retired former executive of several small businesses and a SCORE volunteer for almost 10 years. “They’re professional speakers or therapists and typically need help setting up, using social media and computers. They also need counseling on evaluating their retirement assets.”
SCORE offers face-to-face mentoring and workshops, some free, some fee-based, at $20 to $40. Workshop topics include using social media, blogging and marketing. A third of the money to fund SCORE comes from the U.S. Small Business Administration; a third from corporate sponsorships; and a third from workshop fees and client donations.
Besides working with startups, SCORE also works with mature businesses and even with firms with up to $60 million in annual sales.
“SCORE has helped in every facet of my business,” said Bill Hood, CEO of LED Lighting Inc. and LED Lighting Services of Northbrook. “They helped me manage cash, risk, internal operations, everything.”
Hood started his company in 2004, sought SCORE’s help in 2011, and has an ongoing relationship with SCORE, meeting with his counselor, a former top executive with Beatrice Foods, usually once weekly.
Hood pays nothing for the advice he receives. “The [SCORE volunteer] I work with does it from the heart,” Hood said. “He wants to give back something to the world that has given him so much.”
Like SCORE’s older clients, many beginners don’t understand the basics. SCORE’s most frequent areas of advice include:
Social media. “Every client [of SCORE] must understand social media and how to use it [for marketing] and to build a business,” Nohe said. “We spend a lot of time on that. It’s a huge area of education for our clients.” What concretely do they do?
Drafting a business plan: “Some entrepreneurs say, ‘I don’t need a business plan because I’m not seeking financing,'” Nohe said. “But they do need a plan, as a roadmap to success, that they can follow and revise as their business grows.”
When companies need financing, SCORE helps them prepare to request a bank loan or to seek venture capital.
A strong personal commitment to the business and an understanding of its financial obligations, short and long term, are also essential to success, Nohe said.
Metrics: New or fledgling businesses must also understand what metrics to apply to various financial components to determine if a company is successful. These include job costs, margins and cash flow. “It’s really all about cash flow,” Nohe said.
“Some new entrepreneurs neglect adding a salary for themselves to their business plan. I tell them, you’ve got to earn a living and feed your family. Sometimes the counseling can be as simple as that.”
Integrating technology: “No matter what your business, local grocer, hairdresser, whatever, you can’t succeed without technology,” Nohe said. “It’s an essential aspect of business.”
