SHARE:
All In The Family
Women now run 7% of family businesses, but 26% of businesses say that the next CEO may be a woman.
Thirty-one percent of the Florida family businesses expect their CEO to retire within five years, and an additional 24% say the CEO will semi-retire.
While 81% want the business to remain in the family, 19% of those owners aren't confident of the next generation's commitment to the business.
Almost half, 49%, say that more than one family member may serve as co-CEO in the future, and 59% of those businesses say one of the CEOs may be a woman.
Typically, family business owners don't designate a successor until about five years before retirement, according to Randy Macpherson, director of Arthur Andersen's Center for Family Business in Tampa. In part, that's because the transfer of leadership from one generation to another can be difficult. Advises Macpherson, "The best thing the CEO can do is to openly communicate early on."
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DISASTER PLAN 101
BLOWING AWAY
Small businesses without a disaster plan can be wiped out overnight. Are you ready for the 1997 storm season?
Scott Partee figured the wind would do the damage. So as Hurricane Opal approached, the owner of Custom Mattress Co. in downtown Panama City stacked his inventory as high off the floor as possible and hoped for the best. "We were thinking there might be a ?little bit' of water, but we never anticipated the combination of everything that hit us."
What hit Partee's business on Oct. 4, 1995, was a category three storm. Opal's wind ripped off the roof, letting torrential rain douse everything, including cash registers, records of transactions and more. "We lost our roof, we lost 13 of our windows, and we had three feet of water in the store,'' says Partee. "We were totally closed for six weeks."
As Partee learned, hurricane preparedness should begin months, not days, before a storm hits. "The advanced planning should be taken care of before you even think about boarding up the windows," says John Hutchinson. of Gulf Power in Pensacola. Some tips:
Know your risk: Find out whether your business location is vulnerable to storm surge or freshwater flooding. Check your hurricane evacuation zone and flood maps. Have your building inspected by a licensed professional.
Review insurance coverage: Get an appraisal for your business at least every five years to make sure insurance coverage is sufficient. Remember, flood damage requires separate insurance. Consider business interruption insurance that will pay ongoing expenses such as rent, utilities and some or all payroll expenses if the business must close due to an insured property loss. And put copies of insurance policies in a protected, but accessible, off-site location.
Identify and protect critical assets: Analyze what you really need to run your business and find a way to protect it or obtain replacements in an emergency. Inventory, document and photograph equipment, supplies and the workplace itself. Find safe inland storage sites at least five miles from the water for records, back-up computer files and even equipment.
Work out an emergency staffing plan: Maintain an up-to-date employee roster and distribute to several people. Establish a closing policy and pre-assign workers to oversee emergency preparations, such as securing property, records and equipment. Ascertain how many employees you'll need to reopen and plan now for how you'll get in touch with them after the storm. (After Hurricane Andrew, many Dade businesses turned to newspaper ads as the only way to reach workers.)
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HURRICANE RESOURCES
Before The Warnings...
Hurricane season is only a month away. So if you haven't put together an emergency disaster plan yet, do it now. Here are some helpful sources:
The "Emergency Management Guide for Business & Industry" is an excellent free publication with step-by-step information to help companies of all sizes put together disaster preparedness plans that include information on planning, response and recovery. It's a joint publication of the Federal Emergency Management Agency (FEMA) and the American Red Cross and is available on the Internet (http://www.fema.gov) or by writing to FEMA, Publications, P.O. Box 2012, Jessup, MD 20794-2012.
The American Red Cross, which has 35 offices in Florida, sends representatives to small businesses to help guide them in developing disaster plans. Also, two Red Cross publications, "Emergency Preparedness Checklist" and "Before the Wind Blows," are particularly helpful for businesses and individuals.
Florida Department of Community Affairs Division of Emergency Management in Tallahassee has a limited supply of its booklet "Comprehensive Emergency Management Plan." Write or call DCA, Division of Emergency Management, 2555 Shumard Oak Blvd., Tallahassee, FL 32399-2100; 904/413-9838.
- Matt Moore
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HURRICANE RESOURCES
Getting Back On Your Feet
If a small business is struck by a disaster such as a hurricane or tornado, financial assistance may be available from state and federal government agencies. "Most programs are designed to help people who don't have other avenues of assistance," says Jim Loomis, Florida disaster recovery administrator.
Among the most popular programs:
The U.S. Small Business Administration has two low-interest disaster loan programs for small companies. Business Physical Disaster Loans are available to repair or replace damaged property, including inventory and supplies. Economic Injury Disaster Loans provide working capital if a business owner can't obtain other assistance from nongovernmental sources. The total loan amount for both programs cannot exceed $1.5 million. For information, call the SBA's disaster loan office in Atlanta at (404) 347-3771.
The Federal Emergency Management Agency offers cash grants of $200 to $13,100 (adjusted annually for inflation) to help individuals recover from uninsured property losses, including housing, clothing and other essentials. The grants are available when an individual doesn't qualify for an SBA loan. For information, call the Florida Emergency Information Line, which is activated after disasters. Check local news media reports for the telephone number.
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THE FORTRESS
Protecting Your Assets
It's easy to find secure storage for important documents, photos and computer back-up tapes. For small items, company vaults and safety deposit boxes usually work. But what do you do to safeguard grandfather's antique desk - the one he used to launch the business 75 years ago?
One option is Miami's Fortress. Built in 1983, the eight-story, windowless, concrete and steel facility is designed to protect furniture, paintings, automobiles and even trial exhibits from natural disasters and theft. "We are designed specifically for irreplaceable objects," says Beth Ann Clark, vice president of the Fortress.
Despite Florida's propensity for severe weather, the Fortress' security and protection is unique in the state. Its climate-controlled facility has 24-hour security, video surveillance cameras and licensed, bonded employees. Clark says the Fortress, which also has facilities in Boston and New York, has the insurance industry's "highest protected risk" rating and is designed to withstand a 155-mile-per-hour, category four hurricane. She notes, "We were operating three hours after Andrew."
The Fortress' rates range from $59.99 a month, for a 4 feet by 3 feet by 3 feet unit, up to $359 for a 136-square-foot space (8 feet by 17 feet by 6 feet). Special platforms for automobiles rent for $309 a month. For customers who live outside of south Florida, the company has a bi-weekly shuttle service.
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COMPANY PROFILE: AUTOMATION INC.
Clean Shower Is Cleaning Up
A new cleaning product gets a boost from radio.
On supermarket shelves crowded with Tilex, Clorox, Scrub Free and other name brand bathroom tub and tile cleaners, a new product is making an appearance: Clean Shower. Not only is the aptly named Clean Shower getting shelf space - a feat in itself for a one-product company - it's outselling the competition in Florida, New England, Arizona and Minnesota.
"From the beginning, I thought this was the way it would go," says Bob Black, the 57-year-old Jacksonville chemist who developed Clean Shower in 1993 after he helped his wife scrub mildew off the shower stall. Black's confidence came from his patented product, which he claims will work with no rinsing, wiping or scrubbing.
The non-toxic product, which must be sprayed on bathroom surfaces daily, is designed to remove mildew, hard-water stains and soap scum and maintain a clean surface. What Black didn't count on was the difficulty in distributing Clean Shower. "When I first started going around to supermarkets and food brokers, I had no luck, zero luck," he says.
Black got his break when a local convenience store owner agreed to put the product in 23 stores in mid 1995. After a television station did a story, deals with Winn-Dixie and Kash n' Karry followed.
With Clean Shower's initial success, Jacksonville entrepreneur and Harvard MBA Paul Porter bought a piece of Black's company, Automation Inc., and took charge of marketing and operations. To get the product into stores, Porter focuses on food brokers who have developed relationships with supermarket buyers. "It's less expensive to do business with a food broker than to have an independent sales force," says Porter.
Perhaps the bigger task is publicizing Clean Shower on a budget of $1 million, about 5% of what large consumer companies spend on new product introductions. Instead of pricey TV spots and magazines ads, Black and Porter rely on radio. They've visited 1,000 radio personalities, paying them to tout the product during drive time.
Consumers are listening - and buying. Clean Shower's sales are running at almost $1 million a month and the product, which sells for $1.99 to $3.09 for 32 ounces, is in about 15,000 grocery and discount stores in 48 states and overseas.
What's next? Black hopes to roll out a second cleaning product in May. And Porter is exploring options for an initial public offering or, alternatively, a buyout by a competitor.
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SMALL TALK
Voicing Concerns
There's a new place for Florida's small-business owners to voice concerns about federal regulations. The Southeastern Regional Small Business Regulatory Fairness Board held its first meeting in Atlanta in May. The board, comprised of five small-business owners including Florida's Remedios D. Oliver of All American Container, will review comments and concerns about rules and enforcement actions and report to a regulatory ombudsman. To voice a concern or ask a question, call 1-888-REGFAIR (1-888-734-3247).
Alvarez Confirmed
Aida Alvarez [FT, "SBA's New Face," May 1997] was confirmed by Congress as the new administrator of the Small Business Administration.
Tax Proposals
U.S. Sen. Christopher Bond (R-Mo.) and Rep. Jim Talent (R-Mo.) chairmen of the Senate and House Small Business committees, respectively, have introduced legislation to allow 100% deductibility of healthcare costs for the self-employed (up from 40% currently), to expand the home office deduction and to clarify the definition of an independent contractor. The National Federation of Independent Business, which represents 600,000 small businesses, supports the legislation.
Women's Biz
Delray Beach-based Women's Business Journal, which publishes two free monthly papers in south and central Florida, launches a national edition in conjunction with Women Incorporated, a Sacramento association of 25,000 entrepreneurs. Florida editions are available at Barnes & Noble and select Barnett banks. For the national edition, call 561/265-3389.
