Time for a Mid-Year Business Health Checkup

Muncie Journal Article – June 2023

By: Ted A. Baker, CEO/Executive Director

Muncie Innovation Connector, Inc.

Time for a Mid-Year Business Health Checkup  

It is hard to believe that 2023 is nearing the halfway point. After enduring a cold winter and unpredictable spring, warm, nice weather and days full of sunshine are welcomed. During this time of year, it is important to consider reviewing the status of our businesses and organizations. Much like my semi-annual physical with my doctor, assessing what is going well and what is not is vital for businesses and organizations.  Making changes midway through the year related to my personal health and wellness can alleviate the serious problems that could occur if I wait too long. We know that identifying a physical problem in its early stages of development can save our lives and lead to less intrusive and costlier remedies. For my doctor to gain insight into my physical health, he orders a full regiment of blood tests a week before my appointment. The numbers and blood test results do not lie. They highlight specific problem areas so that during my appointment, we can discuss any root issues and possible steps to improve my health. As I have gotten older, I value these times with my doctor.  He celebrates the victories and accomplishments with me but is also very candid in telling me the hard truths if needed. Only when I know the truth can I choose to make the needed changes. And honestly, my health has improved significantly over the past few years because I have chosen to hear the truth and listen to his professional advice.

We owe the same level of attention to our businesses and organizations. Far too often, many business owners have not taken the time to evaluate how they are doing – until it is too late. Just because a business owner or organizational leader “thinks” things are going well does not mean they are. I have often heard, “There is money in my bank account. Things are going great.” Not only are they missing a critical piece of business management, but this mentality is also dangerous and can quickly lead to business failure. I suggest that business owners and leaders of organizations do what I do – get their “business bloodwork” reviewed to learn the truth about their organizations. Of course, what I mean by this is to check the data and information that impacts the health and wellness of the organization. Doing this regularly will uncover and reveal trends and situations that should be corrected before it’s too late. You will also probably learn what parts of the business are going well so you can capitalize on them. I recommend that a few areas be reviewed during a business health checkup.

1. Identify the Key Economic Indicators for your business or organization. In my past business ventures, I always practiced this concept.  While owning a manufacturing business, I regularly looked at four key economic indicators. 1.) Cash in our bank account, 2.) The dollar amount of Accounts Receivable, 3.) The dollar amounts of Accounts Payable, and 4.) The total dollar amount of all outstanding customer orders. Combined, these indicators painted a clear picture of the business’s health. For your business, the key indicators might include total payroll hours or dollars spent each week, weekly sales, the amount of inventory, customer satisfaction reviews, employee productivity, or other factors that are key to your business’s success. These same principles also apply to nonprofit organizations since similar best practices apply to both.  I challenge you to decide on three of four key economic indicators for your business and monitor each regularly.

2. Plan a regular review of the financial documents for your business or organization. This sounds easy, but this is difficult for many business leaders. Just like bloodwork, the numbers tell the true story!  If the documents and data indicate a healthy business,  celebrate and build upon that success.  If the news is not so positive, be thankful that you know the truth and can make the appropriate changes to your business operations. Not knowing will sink your business or organization.  And trust me, the bad news does not go away when we ignore it – it compounds! Many owners fear reviewing their businesses’ financial status with an outside professional. I understand – it can be embarrassing.  But to improve your financial condition, it must be done.  

In my many years working with business owners and nonprofit leaders, I have been shocked by the number who fail to keep accurate records or any records at all. Maintaining accurate and up-to-date records is not merely an activity to keep bookkeepers and accountants busy but are instruments and tools to grow and sustain your business. They compare past business growth or losses and keep a perspective on costs and expenses.  You also might better understand your customer base and what are the most profitable and successful products and services you provide.  

3. Business health checks are important to examine the leader’s mental health and wellness. As the leader goes – so do the followers. Unless you as a leader are healthy, the sustainability and longevity of your business hang in the balance. After all, while leading a business or organization is hard work, there should be some aspects of fulfillment and satisfaction in your efforts.  You are making meaningful contributions to your community. You have the opportunity to influence and inspire coworkers and others around you.  Successful business owners not only create wealth for their families, but they can also financially contribute to the needs of their communities. Another aspect of being a business leader needs to be discussed. Business owners and nonprofit executives can live a very lonely life.  I understand – I have been there too. People in these positions find it difficult to share with others they employ or work with. Many times, we do not believe anyone else will understand or care.  Please find someone you can trust outside your business or organization to talk with. You will find out they will soon be a lifeline for you.

I hope this helps you understand the importance of regular business checkups. The Innovation Connector offers this service free of charge to any business or organization in the Muncie community. The only thing required beyond supplying the documents we believe are needed is total honesty and a commitment to move your business or organization forward. If you want to participate in a regular business health check, please get in touch with me at tbaker@innovationconnector.com or our office at 765-285-4900.  Our services are confidential and private.  You and your business will be glad you do.

Spotlight – East Central Indiana Small Business Development Center

The Indiana Small Business Development Center (Indiana SBDC), which is housed within the Indiana Economic Development Corporation, helps small businesses start, grow, finance, innovate, and transition through no-cost, confidential business advising and training. The Indiana SBDC was established in 1985 with funding support from the U.S. Small Business Administration and the State of Indiana and has worked with over 50,000 entrepreneurs and small businesses. With a network of 10 regional offices throughout the state, the Indiana SBDC helps Hoosier entrepreneurs and small businesses start stronger, grow faster, and work smarter.
The East Central Indiana Location is located here in the Innovation Connector, helping hundreds of people a month.

Intellectual Property Basics: USPTO

Unfamiliar with patents, trademarks, copyrights, and trade secrets? Don’t miss this opportunity to learn from Damian Porcari, Regional Director of the Elijah J. McCoy Midwest Regional United States Patent and Trademark Office (USPTO), about intellectual property (IP) basics and potential ways to protect your innovation as you transition from idea to product. Join him in person on Thursday, June 1 from 4:30 p.m. to 6:00 p.m. ET at the Innovation Connector at 1208 West White River Boulevard in Muncie, Indiana. The target audience for this session is aspiring entrepreneurs, innovators, students, small businesses, and start-ups. Space is limited, so register early. The discussion will cover: An overview of intellectual property types: patents, trademarks, copyrights, and trade secrets
Why innovators and entrepreneurs should consider protecting their IP
Local resources and assistance are available through the USPTO and other agenciesFor registration, please visit: Intellectual Property (IP) Basics at Innovation Connector to register for this FREE event. For more information, email  or call 313-446-4800.

Guide to Starting a Business–Delaware County

 Launching Your Own Business

This workshop is your first step towards small business ownership success. Every successful business is built on a solid foundation. This class will help you evaluate your business idea with the end in mind.

Overview of Topics Touched from the “Guide to Starting a Business”:

1. Perform a Self-Assessment

2. Perform Market Research

3. Refine or Reconsider Your Business Idea (Is it Viable?)

4. Analyze Your Startup Costs

5. Refine or Reconsider Your Business Idea (Is it Feasible?)

6. Write Your Business Plan

7. Complete the Startup Checklist

8. Secure Financing

Register here: https://isbdc.ecenterdirect.com/events/16310

 Judy Porter (765) 282-9950
 1208 W White River Blvd, Muncie IN 47303-8002

Entrepreneur Showcase Week Sponsorship Announcement

We are excited to announce that sponsorship opportunities are now available for Entrepreneur Showcase Week 2023, hosted by the Innovation Connector! This highly anticipated event celebrates and empowers entrepreneurship as well as innovation and the spirit of creativity.

We are thrilled to have secured our title sponsor. Their generous support and commitment to fostering entrepreneurship have set the stage for an incredible week of inspiration, education, and networking. Several sponsorship opportunities are available for companies and organizations that want to be part of this exciting event.

One of the big sponsorship opportunities is The Big Idea Pitch Sponsor. This sponsor will have the opportunity to support and present the highly anticipated “Big Idea Pitch” competition. Additionally, we are also seeking In-Kind Food Sponsors to provide delicious meals or snacks. This sponsorship is an excellent opportunity for restaurants, catering companies, and food-related businesses to showcase their culinary offerings to a diverse audience of entrepreneurs, investors, and industry professionals.

For a comprehensive list of sponsorship opportunities, including benefits and pricing details, we invite you to download the sponsorship PDF.

Don’t miss the chance to be part of this extraordinary event. Secure your sponsorship today, click here or contact Ted Baker at tbaker@innovationconnector.com or 765.285.4900

Let’s come together to celebrate and empower entrepreneurship during Entrepreneur Showcase Week 2023!

Enneagram 101 is Back!

Join Jennifer Stanley for Enneagram 101 5-Week Course

This class aims to equip you with powerful questions that will help you live and lead with authenticity, humility, and balance
Virtual: 11:30 am – 1:00 pm
In-Person: 6:30 – 8:00 pm

May 17, 2023

May 24, 2023

May 31, 2023

June 7, 2023

June 14, 2023
$149 total for all 5 sessions, REGISTRATION REQUIRED.
If you are new to the Enneagram, we HIGHLY recommend taking an online assessment as a starting point. Go to www.enneagraminstitute and click “take the RHETI test”. It is $12 and will be valuable as you find your number. You will receive an informational review that you can bring with you to class.

CLICK HERE TO REGISTER

Employee Spotlight: Natalie Smith

Natalie Smith has been working for the Innovation Connector for a year now! She is the Program and Events Coordinator here. Natalie is a 2022 graduate of Ball State University where she earned her bachelor’s degree in Public Relations and Event Management. She has ample experience in event planning working at multiple local venues. She also recently joined the Advisory Board of the Boss Babe Network based in Indianapolis. It is a women’s networking organization that includes events, networking, and much more.

As Natalie has multiple roles in her life, she is focused on growing her career here in Muncie. If you have any interest in hosting business events and meetings here at the Innovation Connector, you can reach Natalie at  or call 765-285-4900.

Starting and Operating a Business is Hard…and a BIG Announcement

MARCH 24, 2023

By Ted A. Baker, CEO/Executive Director, Muncie Innovation Connector, Inc.—

MUNCIE, IN—Starting or growing a business is not easy.  If you have been involved at any level of business ownership, you know this.  Throughout my life, I have started several businesses and worked hard to see them grow.  I know firsthand the long hours I invested in ensuring details were taken care of and deadlines met.  (Many times, 60+ hours per week.)  From taking care of legal business startup details, sourcing suppliers, hiring employees, marketing to customers, finding funding, and setting up QuickBooks, it seemed like more work always needed to be done.

Managing and operating an ongoing business presents unique struggles too.  The single most critical aspect for early-stage business owners is understanding Cash Flow.  Without cash, the business will not exist for very long. Employees, vendors, government and taxing entities, lease payments, and others requiring payment cannot be paid with IOUs.  Cash flow management is the number one issue with most of the business clients I meet with. As a former business owner, I understand this concept due to experiencing the trauma of my business having difficult cash flow issues.  There were many times when I was the last person in the business to receive a paycheck (sometimes weeks or more.)  Employees and bills had to be paid first to keep the business operating. Suppliers required payment within certain terms, but those terms rarely matched when customers paid us. A myth states, “if you own a business, you are rich!” (I’ll take a moment to allow business owners reading this article to have a collective laugh.) But hopefully, if you can hold on long enough, the business will grow and have more financial sustainability.

And to complicate matters more, many entrepreneurs have little or no cash to start their businesses.  But because of belief in their dreams and abilities, they start their journeys by bootstrapping. According to Will Kenton’s article published in Investopedia.com on January 9, 2023, “It is not uncommon for many businesses to start by bootstrapping.  Bootstrapping describes a situation in which an entrepreneur starts a company with little capital, relying on money other than outside investments. An individual is said to be bootstrapping when they attempt to found and build a company from personal finances or the operating revenues of the new company.”  Bootstrapping tends to be a slower way of starting and growing a business, but for many, it is the only way!   This is when we see one of the qualities of an entrepreneur – tenacity and stick-to-it grit!

The Innovation Connector works daily with entrepreneurs and business owners dealing with many issues, struggles, and growth ideas. It is very difficult for us to know what help entrepreneurs and business leaders need if they do not contact us. I have heard of business owners who needed assistance finding funding to keep their storefronts open or others needing help understanding their cash flow situations. But again, we can do little if we do not know the need.   We promise that if you contact us, we will reply. The Muncie community is fortunate to have several organizations whose mission is to help entrepreneurs.  If our organization cannot provide the help your business needs, we do our best to make connections that will. We also educate and empower entrepreneurs and business owners through regular workshops, seminars, and courses.  We intentionally offer courses that are relevant and important to the current needs of businesses.

Last November, we did something radical that had never been done anywhere before.  We celebrated Entrepreneur Showcase Week – a weeklong offering of twenty-one events focused on helping any person or business owner who sought to improve their business acumen.  Courses about marketing, finding capital, bookkeeping/accounting, computer and IT needs, mental health awareness, customer service, and others were offered – and all FREE of charge.  It was our way to pull out the stops to help our business community. Over 800 people joined us at the Innovation Connector and participated in events that week. Since Entrepreneur Showcase Week, we have been extremely busy with follow-up sessions with entrepreneurs who asked for additional help.  And again, these services have all been FREE! One of the big takeaways of that week was the interactions between attendees and the continued collaboration.  Building these relationships has been a lifeline for some struggling business owners. If you or your business needs some assistance or need to talk with someone about your business, please contact our office at 765-285-4900. Our services are FREE and CONFIDENTIAL.

Now, for the BIG Announcement

We are pleased to announce that year two of Entrepreneur Showcase Week will take place at the Innovation Connector from November 13 – 17, 2023.  Included this year during Entrepreneur Showcase Week, back by popular demand, The BIG Idea Pitch will take place on Thursday evening, November 16, 2023.  Additional information will be released in the coming months, but please mark your calendars now for this very special week. In the meantime, please visit our website, www.innovationconnector.com, for updates.

The Innovation Connector encourages you to support our community’s local businesses however you can. We are all in this together, so let’s work together.  At the Innovation Connector, WE EMPOWER ENTREPRENEURS

1208 W. White River Blvd.
Muncie, IN 47303
(765) 285-4900
https://innovationconnector.com

Spotlight – Complete Technology Solutions

Complete Technology Solutions has provided expert IT support since 2001, helping hundreds of businesses increase productivity and profitability by making IT a streamlined part of operations. Our mission is to deliver the latest technology consulting, services, maintenance, and support as a highly cost-effective IT solution in order to maximize our client’s productivity and profitability.

They specialize in providing nationwide IT support, management, and consulting services exclusively to the multifamily industry. You and your leasing teams spend no time on IT. Spend less time on IT and more time growing your portfolio.

Side Gigs and Side Hustles

FEBRUARY 24, 2023

By Ted A. Baker, CEO/Executive Director, Muncie Innovation Connector, Inc.—

MUNCIE, IN—Over the past years, the Innovation Connector has become the Muncie community’s hub for business startup and growth assistance.  Calls and emails come to us nearly every day from entrepreneurs and hopeful business startup owners asking for assistance in some way.  Regular requests include the need for funds to start or grow a business, help formally organize the business as an LLC or S-Corp, and some turn to us for encouragement.  Most who contact us for assistance already have full-time employment but want to start “something” on the side. Starting a business is difficult, even starting a side gig, and requires funding for initial startup costs and ramping up the business.

In most cases, when starting a business, it can take one year or more to be profitable and have a positive cash flow.  Therefore, a steady source of funds is needed to pay for personal and household expenses and to feed the new business venture.  This is why maintaining current employment is so important – without cash, your household will suffer, and your business will fail. For this reason, if a person wants to start a business, full-time employment may need to be maintained to keep the household afloat during the initial stages of business development. Businesses started in addition to a full-time job are often called side gigs or side hustles. Chris Guillebeau, the author of Side Hustle, says, “it’s an asset that works for you.”

The Importance of Side Hustles

Side gigs are an important part of the entrepreneurial ecosystem.  According to Zippia, the Career Expert, October 12, 2022, by Jack Flynn, 45% of Americans had a side hustle in 2022, with an average monthly income of $483.   The global gig economy is expected to be worth $455 billion by the end of 2023. And Americans spend an average of 13 hours per week on side hustles.  People often start working side hustles to earn passive income and use the money as extra disposable income. The top industries and categories of work for side hustles include online and social media, freelancing, selling crafts and art, ridesharing (Uber, Lyft,) delivery services, and software development.

Side hustle choices are often connected to a person’s area of expertise or experience. For others, the side hustle may be completely different.  I have a friend who worked in IT for a major university and drove for Uber Eats in the evenings and on Saturdays.  The extra money he earns delivering food is significant – often $500 – $750 weekly. I know another person who drives for Uber and Lyft during hours he is not working his regular full-time job.  When he was downsized at his job, his side hustle became a source of income for his family.  He started accepting more rides during daytime hours; before long, he was netting over $1,400 weekly.  In this case, this person’s side hustle provided extra income and served as a safety net in case of job situation changes that happened.

Advantages and Disadvantages of a Side Hustle

I found an interesting blog post on the Washington Trust Bank’s website that mentions some pros and cons of starting a side hustle.  The following content is excerpted from that blog.

The Pros:

Turning a passion into a money-making opportunity has some distinct benefits. If starting a side hustle sounds appealing, consider the upside:

  1. Enhancing your career. While it may seem counterintuitive, establishing a side hustle can create a competitive advantage in your career. Depending on the chosen path, developing skills that complement your day job may be possible. Exposure to a different line of work can broaden your experience and contribute to a fresh perspective on addressing challenges in the workplace.
  2. Mixing it up. A side hustle can provide a welcome change of pace from the usual 9 to 5, particularly if it involves using another part of your brain. If you’re normally writing code for 40 hours a week, a weekend working as a wedding photographer might be a refreshing break from the ordinary. Or your side hustle might provide an opportunity to give back to the community in ways you can’t manage during the work week.
  3. Growing your network. If you are promoting a side hustle, you’ll likely meet people that might not cross your path in your normal line of business. You can make new contacts for your side hustle; some may benefit your day job. Additionally, you might find your social circle widening when meeting others who share or appreciate your passion.
  4. Developing a creative outlet. Crunching numbers all day may pay the bills, but it may not provide the level of creativity you crave. A side hustle can provide a creative outlet without forcing you to sacrifice the financial security of your day job.
  5. Supplementing your income. Many people start a side hustle to supplement their income. If relying on this additional cash flow, be sure to calculate anticipated expenses to ensure that the venture will pencil out. As a side hustle takes off, it can provide a cushion in an emergency or unexpected change in your employment situation.

The Cons:

As with most situations, a side hustle’s positive attributes are tempered by some drawbacks:

  1. Reducing your downtime. If working full-time during the week and dedicating the weekends to side hustle, you may be robbing yourself of enough downtime to relax and enjoy pursuits that don’t involve making money or marketing yourself. This always-on mindset can be wearing, and if others – partners, spouses, children, and even pets – are in the picture, there’s a danger of leaving some feeling neglected.
  2. Becoming distracted at work. A side hustle that becomes all-consuming could have dire career consequences. If your passion project is taking too much time and energy, there is a risk that your day job – and main source of income – could suffer. Before embarking on a side hustle, limit how many hours you can devote to it and stick to them.
  3. Adding more stress. Filling valuable time with more work, even a passion project, may pile on the stress. In addition to taking time away from friends and family, a side hustle will require additional record keeping and may complicate tax filings. Additionally, if your project involves custom work for clients, you’ll be pressed to keep them happy to ensure referrals or repeat business.
  4. Determining your worth. It can be difficult to put a price tag on your work. Do research to determine the going rate for similar products or services, and don’t sell yourself short. You’ll be responsible for collecting payment and setting a fair price, so establish your expectations upfront.

Conclusion:

If you need assistance setting up and organizing a side hustle or want to discuss how they work, don’t hesitate to contact our team at the Innovation Connector – 765-285-4902 or tbaker@innovationconnector.com.  The Innovation Connector has many services and connections to assist you in your journey.

In next month’s article, I will be making a very special announcement. Stay tuned.