NFIB

You've Got Questions, I've Got Answers
04/ 01/ 2002

by Harvey King

Recently, a small business Web site released its list of "Most asked questions from small business owners." Since they didn't provide the answers, I'll give you mine. Here are the top five questions small business owners ask:

#1: How do I get a small business loan?

My answer: The best way to get a loan is to not need one. Back when I really needed a business loan, the banks were reluctant to extend me one. After my company grew and started making money, the banks were all over me. Some people suggest you ask family and friends for loans. I guess that works, if you have family and friends willing to take their children's college tuition out of a mutual fund so they can finance your business idea. Chances are, if you have family and friends who have lots of money sitting around, then you probably also have access to a really good banker who can show you how to apply for a Small Business Administration loan.

#2: How do I lower my insurance costs?

My answer: This is sort of like the first question. The best way to lower your insurance costs is to not display the need for insurance. However, sooner or later you will have sick employees or accidents or a lawsuit and you'll discover how much time it takes to deal with insurance…and how valuable having a good agent is. You'll also discover being a member of NFIB or your trade association can save you lots of money on certain types of insurance.

#3: How do I hire and retain the best employees?

My answer: I once had a small business owner tell me the best decision he ever made was to never hire an employee. It was a very, very small business. I found it hard to grow a business without hiring employees. So I decided early on that I would have to spread forth the joy of running my small business with others. Rather than look for people who were just like me, I searched for folks who could do stuff I couldn't do. I hired them and didn't tell them how to do the things they could do better than me. And then I encouraged them to hire more people who they would enjoy working with and who could do stuff they couldn't do. Soon, there were lots of people who all had complementary skills who enjoyed working in a place where someone was not standing over them telling them what to do. Oh, and it helps to pay really good salaries and offer competitive benefits and, as I learned recently, have a Foosball table.

#4: What are some low-cost ways to promote my business?

My answer: First let me say with certainty that writing an anonymous column is not a good way to promote your business. However, I've found that when I share advice using my real name and company, it has tended to be the best way to kick-start the word-of-mouth promotional machine. And don't be bashful about getting your name in the paper.

#5: What are the best ways to use the Internet to run my business?

My answer: I suggest the first four ways you use the Internet are for loan applications, lowering your insurance costs, hiring and retaining employees and promoting your business.

Harvey King is the pen name of a real small business owner. Write him in care of the magazine, or at hking@mybusinessmag.com.

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This article originally appeared in the January/February 2001 issue of MyBusiness Magazine, NFIB's member magazine.

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