September 11, 2006

Paying Back with Wisdom

Patt Johnson

Diana Kautzky was about six years into her downtown Des Moines business, Deaf Services Unlimited, when she reached a roadblock. She was looking to expand the business, but also wanted to create a succession plan. "I knew I didn't want the business to die when I leave," said Kautzky, whose company provides sign language, captioning and other services to companies, agencies and individuals. Retired clothier Paul Whitmore gave Kautzky the boost she needed. "We met just the one time, but he gave me an awful lot of insight," Kautzky said. Whitmore doles out business wisdom based on his 20 years as a business owner. He is one of hundreds of retired and nearly retired folks in Iowa who volunteer their time and expertise to entrepreneurs. Through a federally funded program called SCORE, Counselors to America's Small Business, about 2,700 business owners have been given advice and direction from people who have been in similar positions. There has been an uptick in requests for SCORE counseling, said Dave Lentell, spokesman for the Des Moines Small Business Administration office where the local SCORE chapter is housed. For the first six months of 2006, SCORE volunteers have assisted 526 businesses, or about 50 more than the same period last year. Layoffs and cutbacks at large corporations, such as the former Maytag Corp. in Newton, have contributed in part to the increasing numbers, Lentell said. There are also folks who are dissatisfied with their incomes "and think maybe they could do better working for themselves," said Gene Strawman, 82, a SCORE volunteer from Johnston. SCORE is funded through the U.S. Small Business Administration. Nationally, the organization has about 10,500 volunteers in 389 chapters. Volunteers receive no pay for their services but may be reimbursed for mileage or other out-of-pocket expenses. "I feel I need to give something back," said Whitmore, 72. "I enjoy meeting people and talking with business people. It's a nice shot in the arm to help people if they gain something from it." The program offers one-on-one counseling that can include one or several meetings. The relationship terms depend on what the small business owner wants or requires, Whitmore said. Common concerns and questions include how to market a business and "how to find more money to operate on," Whitmore said. He helps clients look at their expenses and how to cut costs by finding less expensive space to rent or reducing payroll. The Small Business Administration estimates there were nearly 23 million small businesses in the United States in 2002, which accounted for about 99 percent of the nation's employers. Joel Steenhoek, 21, of Reasoner recently attended a SCORE seminar held in Newton. The carpenter had worked for a local cabinetmaker and decided to strike out on his own. His initial stumbling block was how to get started. He sought help from SCORE. "I had one-on-one counseling where I showed them a business plan I had written," Steenhoek said. "They ripped it apart. They know what the banks are looking for. It's amazing there are older people out there doing this for free." Sisters Jan Baker of San Diego and Pat Jones of Clive sought help from SCORE when they were putting a plan together to make and sell foot jewelry online. "I attended one of SCORE's one-day seminars," Baker said. The sisters learned about marketing their product, tax implications and how hiring employees would affect their bottom line. Baker said much of the invaluable information from SCORE volunteers helped the pair craft a solid business plan. "They are an invaluable resource," she said. "(Counselors) can't give you legal advice, but they can point you in the right direction. I would never start another business without advice from SCORE." At the local SCORE office, volunteers - mostly men - staff the telephones five days a week to answer questions and match callers with volunteers. Counselors also set up monthly seminars where entrepreneurs can learn about taxes, insurance, marketing, drafting a business plan, or securing a loan. Strawman has been volunteering with SCORE for more than a decade since retiring from a 40-year career in the industrial supply business. "There's some satisfaction in being able to point out the pitfalls ahead of time for people," Strawman said. All companies receiving Small Business Administration-backed loans automatically receive calls from SCORE volunteers. "Not every person who gets a loan needs help from SCORE," Lentell said. But for those who do, SCORE can provide a comfortable atmosphere for a would-be business owner or small business person, he said. Kautzky said she and Whitmore spent several invaluable hours over coffee discussing her business. "It was good just to be able to pick his brain," she said.

Des Moines Register, September 11, 2006