NETWORKS AND COMMUNITY : March 18, 1994 Networks and Community is devoted to encouraging LOCAL resource creation & GLOBAL resource sharing. The 14th report of 1994 is the 20th survey. ---------------------------------------------- This special issue should be of interest to civic nets, free-nets, commercial gopher services and university gopher services. ========== CREATING A SMALL BUSINESS RESOURCE CENTRE =========== Contents: 1. WHAT BUSINESS NEEDS FROM THE FREENET COMMUNITY What civic nets offer. What small businesses want. 2. ON-LINE SMALL BUSINESS CENTRES Local assistance programs as a resource local business and professional associations as a resource 3. SEEKING THE ACTIVE INVOLVEMENT OF BUSINESS SERVICE GROUPS 4. SEEKING FINANCIAL SUPPORT FROM THE BUSINESS COMMUNITY [ a guide to seeking business funding ] 5. INFORMATION & SERVICES YOU CAN POINT TO 6. A sample "SMALL BUSINESS OFFICE" MENU 1. WHAT BUSINESS NEEDS FROM THE FREENET COMMUNITY ================================================== There are a variety of professional groups, university programs, government programs and private external sources that provide service or information that is important to business. Freenets have an opportunity to benefit themselves and the community by providing an opportunity for these organizations to join in developing an online "non commercial" set of assistance services to the small business community. Small business is now creating over 80% of all new jobs. That means that anything we can do to assist the development and survival of small business in our communities is of benefit to everyone. The Freenet movement is now debating the role of business in the freenet sphere. Without taking a position personally. I would like to point out one method for the movement to serve the needs of the businesses in their communities and improve the possibilities of fundraising - without compromising the traditional principals of this effort. What Civic Nets offer the Business Community -------------------------------------------- Before freenets came into existence assistance programs for business operated in isolation. Only the library might have an outdated guide to local assistance resources. Our movement creates the opportunity for a more efficient form of access and use of these dispersed resources. We are all aware of our potential to improve the delivery of government services, non profit services and even recreation information. The same is just as true for business. Freenets can provide information about these resources. Our systems can also provide direct technical assistance. If business assistance is readily accessible at your site; its much easier to gain support from the Business community and local government. Because membership in a Freenet is free; we have unique advantages over any other potential supplier of business information. Most businesses will choose to use commercial access providers for their net services. With competition in your community, the business will be located on several systems. No matter how good the services on any one system are they wont have the "reach" of freenet based services. So freenets will be the necessary glue that ties together the whole business community. This is the basis for gaining business support and participation in our movement. All the other services we offer just makes our system that much more likely to be used by businesses. We have a attractive mix that creates an appeal no one else can match. The primary resources which we can assist locally, are usually local chambers of commerce, university business assistance programs, industry trade associations and the many varieties of Small Business Development Center programs. What Small Businesses Want - and need ------------------------------------- Companies - especially new small businesses - are interested PRIMARILY in learning more about funding sources. More than half the calls received by groups offering assistance to small business ask for information on where to find money. While there are sources for local, state, provincial and federal funding; your local business people often do not know how to find and use the programs. For more established businesses, another major need is information on how firms can benefit from government and university research and technology. While money and technology is what business people want; they usually need a great deal of help with: business plans regulatory and licensing information tax issues employment rules and regulations computerized accounting systems other financial controls other information automation systems improved customer service marketing strategies domestic sales strategies international sales developing new products improving existing products manufacturing production changes health and safety issues. The specific nature of the needs of a business tend to vary with its stage of development. Generally - Start-Up - Expansion and - Turnaround or Crisis Management - stages present unique problems. Women and Minority groups may also benefit from programs that help them with the special problems involved in their participation in Business. 2. ON - LINE SMALL BUSINESS CENTERS =========================================== A new activity on the Internet is the provision of online business services. Such services can offer many forms of aid. There are 4 primary forms of assistance. Information pamphlets Interactive access to referral assistance Interactive self help forums on-line Interactive access to direct assistance The simplest activity to start with is providing pamphlets about existing programs and organizations along with some general how to information. The innovative services that are perfect for civic nets are the on- line interactive services. These can provide technical assistance in preparing the business plan, and they help with regulatory and licensing problems. They may also provide technical assistance in business management areas, new product development, procurement, energy management and advise or assistance in gaining access to capital from private sources. New business managers often need a full range of services. The owner of an existing business can often benefit from access from a peer based conference dealing with his or her firms problem. DISPENSING PAMPHLETS ABOUT OTHER ORGANIZATION AND HOW TO INFORMATION --------------------------------------------- Freenets are an ideal resource for dispensing passive information. We offer uniquely easy access and retrieval. We never run out of copies of a brochure and its always the most current one available. Groups will want to print their own material to hand out on site; but they can benefit by being able to grab copies of other services' brochures from the free-net's "rack" and provide them on demand to their walk in clients. A good "rack" can include information about: BUSINESS SERVICE CENTRES HOW TO INFORMATION INFORMATION FOR EMPLOYERS LOAN PROGRAM AND GRANT SOURCES EMPLOYEE AND WORKSITE SAFETY INFORMATION SECURITY INFORMATION SOLE PROPRIETORSHIP & CORPORATE REGISTRATION TAXES AND LICENSES PROFESSIONAL ASSOCIATIONS INDUSTRY & TRADE GROUPS LOCAL BUSINESS DIRECTORIES COLLEGE & PRIVATE BUSINESS TRAINING PROGRAMS Vocational Entrepreneurship Technical Managerial PUBLIC LIBRARIES AS BUSINESS INFORMATION SOURCES FOREIGN CONSULS & TRADE OFFICES FOREIGN LANGUAGE TRAINING PROGRAMS REGIONAL & INTERNATIONAL TRADE PROGRAMS SERVICES AND FACILITIES FOR VISITING BUSINESS PEOPLE ON-LINE REFERRAL PROGRAMS ------------------------- The least demanding of the Interactive services is operating an on- line referral service. These can be staffed by local business librarians or by staff from a local assistance center or by volunteer retired businesspeople. These may involve using an existing database of services or your folks may have to design and maintain a new one. DIRECT ASSISTANCE PROGRAMS -------------------------- LOCAL ASSISTANCE PROGRAMS AS A RESOURCE Problem oriented direct assistance activities can be "staffed" by employees of existing programs. The ease of on-line interaction makes free-net based consulting especially useful for dealing with activities like: Loan Packaging Projections Business Plans Cash Flow Analysis Financing Programs Governmental Private Lenders Venture Capital Export Marketing Financing One-on-one Counselling Planning and Research Market Research Assistance Census information Local business lists Yellow pages information Planning for Employee Training On-the-Job Training Classroom Training Custom Designed Training Programs LOCAL BUSINESS AND PROFESSIONAL ASSOCIATIONS AS A RESOURCE Local professional Associations may also be willing to staff moderated listservs or on-line assistance programs that deal with their members areas of expertise. Typical programs include: 1 - ONE STOP OR SHORT TERM SERVICES General Business Assistance Centers Small Business Assistance Centres 2 - PROJECT ORIENTED LONG TERM ASSISTANCE Service Corps of Retired Executives (SCORE) University Based Small Business Institutes 3 - ASSISTANCE FOR TARGETED POPULATIONS Minority Business Assistance Programs Women Entrepreneurs Networks Business Incubator Programs 4 - ASSISTANCE IN SINGLE PROBLEM AREAS Bar Association Programs Accountants Society Programs SELF HELP ORIENTED PROGRAMS --------------------------- A series of unmoderated conferences can also be started. These should reflect your local communities needs. They can be general interest or focused. One especially attractive conference can cover business software and technology. Another could focus on local regulatory issues. 3. SEEKING THE ACTIVE INVOLVEMENT OF BUSINESS GROUPS ============================================================= Generally organizations like Accountant's Associations, Advertising Associations, Insurance Groups, and Law Societies can usually be brought on line. You may also have some success with Computer professionals, and services oriented to specific business sectors like Retail Trade, Real Estate, Manufacturing, or Farming. Existing service programs may see you as a rival, but careful cultivation will generally bring them aboard soon. A business outreach committee composed of members who are business people will do the most effective work in involving these groups. 4. SEEKING FINANCIAL SUPPORT FROM THE BUSINESS COMMUNITY ======================================================= The search for financial support involves teaching local groups like chambers of commerce and private businesses about the ways a freenet can increase the community's income and employment levels. Your hit squad can talk about: Helping existing businesses expand. Attracting new business and investment. Encouraging start-up activity. Fostering small business growth and entrepreneurial skills. Pursuing legislative and administrative reforms Benefiting the business community through superior services. Increasing employment levels Diversifying work opportunities Providing statistical and analytical data to support economic development efforts. WHY BUSINESSES GIVE SUPPORT? When going after the support of individual businesses; it helps to understand what motivates their charitable contributions. Some of that motivation is simple self interest. Creating an on-line small business center appeals to that self interest. When planning a corporate funding campaign, there is one basic fact that must be recognized. THEY DON'T HAVE TO GIVE Companies have no legal obligation to support community or non profit activities. Every contribution represents money that would otherwise have gone to pay taxes, to pay shareholders, or to reinvestment in future growth. Charitable support is generally seen as an "investment". WHAT'S IN IT FOR THEM? Corporate gifts are rarely altruistic. Companies are looking for a primary benefit to their community of customers, employees, and shareholders, and only secondarily to the society at large. Given this very business-like attitude its easy to understand that the following are the main reasons companies give. I list them here in the order they are most often mentioned by companies, not in the order that matters most to freenets seeking support. THE BOTTOM LINE ON SUPPORT A: SUPPORTING SERVICES THAT BENEFIT EMPLOYEES AND THEIR FAMILIES. Freenets serve employees and families by improving their access to community services [like the availability of womens' shelters] or emergency child care services, community information of all types, and to direct personal help in the form of moderated information services. Our services also benefit many of the organizations that employees and their families may turn to. With a business service in our freenet structure we also help build and maintain the economic basis of the community. We will actually help create more customers for all the businesses in our communities. That helps improve job security for everyone. B: SUPPORTING SERVICES THAT EDUCATE EMPLOYEES & RAISE THEIR SKILL LEVELS. While this is usually the motivation for supporting higher education; Freenets can point out two related benefits. First, that we are teaching our members a set of computer related skills that are of growing importance to business. Freenet members are learning RESEARCH SKILLS, ONLINE COMMUNICATION SKILLS, AND IMPROVING THEIR KNOWLEDGE Of A WIDE VARIETY OF INFORMATION RESOURCES, SOME OF WHICH ARE VERY USEFUL TO BUSINESS. Second, freenets are SIMPLIFYING ACCESS to information that can be of direct benefit to business. We are after all simplifying ACCESS TO LIBRARY CATALOGUES FULL OF BUSINESS INFORMATION. Along with a host of government data of interest to businesses. The on-line access you create will directly strength all businesses in the community. It will help them improve their operations and lower the failure rate among new businesses. C: PROVIDING PUBLIC RECOGNITION AND PRESTIGE TO THE COMPANY Most gifts to cultural institutions and the arts are justified this way. Freenets have a special advantage here. Any business support can be acknowledged on line and in the case of support for phone lines, over and over again. Contributing to the success of a major community service does contribute to the good will of the general community towards specific businesses. And freenet are very much cultural institutions - of a very new kind. D: IMPROVING THE MARKET FOR A COMPANY'S PRODUCTS This is the main motivation for corporate support for special events and sporting activities. Its no accident the beer and cigarette companies love to sponsor outdoor summer events. In the early stages of fundraising - this may be the single most important reason that can presented to organizations which can offer interactive services or pamphlets in asking for their support. The case for the value to them must be made in a very professional way. The fundraisers first task is to understand just what your free-net has to offer your business community in the way of a marketing opportunity. Reaching the freenet membership is far more effective -COST EFFECTIVE - than a $50,000 .oo newspaper add. And it works year in and year out. Once the first company donates to you; you can tell the next company you are going to about the brilliant marketing decision company #1 just made. F: SUPPORTING GROUPS IN WHICH EMPLOYEES ARE INVOLVED The vast majority of businesses do not have either staffing or a formal process to control contributions. Instead they let the interests of their employees govern most of their contributions. We are all in the business of recruiting volunteers. Efforts to recruit volunteers from the business community will rarely be wasted. Some Larger companies actually match employee contributions with a similar gift. The most straightforward way of getting business volunteers, is to make presentations to business related associations. Of particular value are presentation before the many associations of computer professionals. It is occasionally possible to be adopted as a project by one or more of these associations and computer clubs. A poll of your supporters will usually lead directly to several such groups with whom they are affiliated. In the case of the on-line business center it may pay to have the major local business association "adopt" the center as its project. G: RESPONDING TO PEER PRESSURE Many companies don't know who is "real" or worthwhile. Its reassuring to the management to be told that the big guys have checked you out and decided to support you. Once a local corporate leader has contributed, its much easier to get others to give. If the company officers will make even casual calls to their peers on your behalf, your prospects are all the better. H: CORPORATE CITIZENSHIP - MAINTAINING GOOD COMMUNITY RELATIONS This is the least effective direct appeal but it figures in most decisions. So don't forget that you really are creating or running a major new community service. Its important to let them know that even by supporting only the business services they are strengthening the entire free-net and benefit all of your community. Since most freenets are not only available from home and office computers, but also from assorted public sites; its invaluable to know how many patrons your affiliated libraries and agencies are seeing each year. This number should be prominently displayed in your materials and mentioned at fundraising meetings. It creates "goodwill" for companies when they are seen as directly benefiting the community by supporting the freenet movement. Free-nets provide an excellent opportunity to be seen doing good. Of course these same numbers are also worth mentioning to companies that service first time buyers when looking for their support. Training firms, computer insurers, small system sellers, etc., should all be approached to cover phone line costs. And they should all be reminded of the number of potential new customers who can see them mentioned when connecting to your free-net. A NOTE ON CORPORATE RESPONSIBILITY AND IRRESPONSIBILITY Lest this seem to be offering a white wash of the many problems created or contributed to by bad business practices; I have no interest in seeing free-net sell their soul to business. I expect part of every dollar raised to go toward providing better public access to data about polluters, fraudulent schemes, self interested legislative efforts, etc. I just don't believe business is all bad or all good. As a community information resource we have a responsibility to display all the faces of business. The flip side of all of this is something know in the corporate world as CAUSE RELATED MARKETING. This now represents about 15% of most larger companies contributions budget. Business publications have bluntly described its purposes as "enhancing corporate image, thwarting criticism, pacifying customers and easing market entry." Every freenet's directors while have to deal with the ethical dilemmas involved. My personal view is that we have an obligation to ask for this money and see that it is used to create a fully informed public. But, we have to avoid being abused by the worst of these offers. An example of abuse by a cause related marketing scheme is this gem. In 1987, just prior to thanksgiving, American Express spent $50,000.00 on an ad offering to donate 10 cents to New York MEALS ON WHEELS for every meal ordered with their card over the holiday. New Yorkers would have had to order half a million meals just to match the ad budget. WHAT TYPES OF SUPPORT ARE AVAILABLE? A: CASH B: SERVICES - LEGAL - ACCOUNTING - MARKETING Most major firms donate some services. Law firms are often required to do so. C: EQUIPMENT - GIFTS & LOANS If you can't get equipment donated - try getting it loaned. If local resources are poor try getting a preferential price. Freenets by their nature are not on the cutting edge of computer technology. Your success rate will be highest if you know the product lines and consistently ask for last years models. That help remove dead inventory and convert it real advertising and goodwill development. D: ADVERTISING Ask companies to work you into their print adds and handout materials. E: CONTACTS WITH OTHER COMPANIES As mentioned previously no one has better connections in the business community than an active business person. F: FURNITURE Most medium and large firms have a storage area for currently unused stuff. Ask around - why spend money on furnishings. G: SPACE Investigate the possibility of space with the companies having the largest involvement in your freenet. They can be approached with space requests for meetings and special events, even for offices. H: STAFF & VOLUNTEERS Many larger companies support their employees voluntarism and may be able to help you do internal recruiting. Phone companies, banks, major retailers, and major industries are good places to ask about this. A few companies have even assigned staff to work with non profits on a part time basis. I: MATCHING EMPLOYEE CONTRIBUTIONS J: COMPANY MEMBERSHIPS IN "FRIENDS OF FREE-NET" SPECIAL ASPECTS OF FUNDING FREE-NETS DON'T CREATE A SEPARATE CAMPAIGN FOR SUPPORTING BUSINESS SERVICES Don't just raise money or assistance for the on-line business center. Always get the business community to see that they are supporting it and the other much needed community services that the freenet provides. SHARING THE EXCITEMENT Freenets are an exciting concept. Most health care and international aid organizations appeal to people's pity. We are in the wonderful position of appealing to people's optimism. Make sure that those representing you are visibly enthusiastic. Enthusiasm is infectious. Choose well spoken and well informed representatives. Make sure that they understand business conventions and dress. DIRECTLY SUPPORTING THE NEEDS OF THE BUSINESS Every freenet will have a somewhat different policy on business relations and commercial activities on the net. The more you can demonstrate that your free-net meets the needs of the business community, the easier it is to fundraise. I have written a paper describing what I believe are the major advantages businesses may get from the existence of freenets in their area. Its written for business people who are not telecommunications literate. If you would like a copy; contact me at: samsam@vm1.yorku.ca Sam Sternberg Fell free to modify it in keeping with your policies and use it as piece for distribution. Businesses, that understand the direct benefits they will get from operating freenets, will have a much higher propensity to support your efforts. EVERY COMPANY HAS COMPUTER ENTHUSIASTS WORKING FOR THEM Free-Nets are in an enviable position when it comes to corporate funding. Every company of any size has a few computer enthusiasts on staff. This means you should be able to find support in every company you seek assistance from. While this is easier said than done. It can be done. do it. SENIOR COMPUTER PEOPLE ALWAYS KNOW THE TOP MANAGEMENT And, the SECRET of successful fundraising is PERSONAL CONTACT. Need we say more. ADMINISTRATIVE ISSUES A: DO YOUR RESEARCH Most cities have extensive business directories. Most have companies ranked by size and activity. Public companies have annual reports that may be informative. Check your supporters for contacts in companies of interest. Interview your supporters in the company before making your formal approach. The more you know the better. Don't try to contact everyone. Target your efforts based on an analysis of your ability to reach the company you need to reach. Always assess each company on the number and degree of impact the motivating factors listed above will have on them. Think before you act. B: MAKE CONTACT AT THE APPROPRIATE LEVEL In private companies contribution decisions are made at the top. Your initial contact may be the computer department or the advertising staff. Those people, once interested, can assist you in reaching the decision maker(s). Consider recruiting an advisory board of company executives to help you in your campaign. Also look at getting sponsored or adopted by computer or communications related professional associations. C: KEEP GOOD RECORDS Make a record for each company you research and contact. list your contacts, dates, requests, and results. Save it so that the next group of volunteers can look back to see what's been done. You may be asked to come back next year. if you don't have records, you can't follow up. D: BE PERSISTENT BUT NOT OBNOXIOUS An initial "no" can be the start of a very long and happy relationship. Be prepared to ask again next year. As you grow you will look better and better. You will also be able to show increasing support from peer companies. NEVER DO THE FOLLOWING DON'T ACCUSE THE COMPANY OF SELFISH MOTIVES Our motive are selfish too. We are all benefiting,or hoping to, in various ways from the Free-net. If you run into offers that are too self serving - JUST SAY NO - you don't have to explain. I personally hope all of us will avoid participating in the kind of "promotion" mentioned earlier. DON'T ASK THEM TO SAVE THE PROJECT Always accentuate the positive. No responsible staff person wants to hear that you're in DESPERATE for there support or worse yet in financial trouble. That will just convince her/him that they may be wasting resources on a program that is about to die. DON'T THREATEN THE STAFF OR FIRM Never tell staff that your prepared to go over their heads if they don't co-operate. Or threaten the company with negative publicity. That kind of reaction is just infantile. When fundraising, you will be asked if company "x" has contributed. Be absolutely honest. If you asked but didn't get anything say so. And mention that you hope to improve your level of volunteers from the company and ask again next year. Never disparage a potential donor. The person your talking to may just know and like people in the firm under discussion. E: BE REASONABLE Accept refusal graciously. If your analysis of a company's motivation to support you show that you aren't a primary candidate for them; start small and build their involvement. Perhaps starting by making a request for an IN-KIND gift. Or assistance in recruiting employee volunteers. F: BE PREPARED Have a financial statement or business plan Have proof of your not for profit status Provide a list of Board of Directors and their background List all your current donors and supporting Institutions Produce an annual report or progress reports. G: ACKNOWLEDGE EVERY CONTACT IN WRITING. Its important to thank every company you made a request to, especially when they REFUSE YOUR REQUEST. Nothing does more to improve your chances on a second request than someone remembering the Free-Net as that very professional group which said thanks for taking the time and we understand the demands on you funds didn't permit a gift this time around. H: FUNDRAISING WILL BE A PERMANENT ACTIVITY OF THE FREE-NET Do it right. Right from the start. Corporate funding can be especially rewarding because companies often make gifts year after year. No other source, except your members, can be so reliable. 5. INFORMATION & SERVICES YOU CAN POINT TO =========================================== Some of the business type resources that can be found freenets & civic nets include: Agriculture (Coin - Columbia) Business & Industry Park (Youngstown Freenet) Buyer's Rights (Denver Freenet) Consumer Price Index (Buffalo Freenet) Entrepreneurship (Heartland Freenet) Foreign Missions (Singapore Citynet) Jobs (Triangle Freenet) Living & Working (Singapore Citynet) Major Companies (Singapore Citynet) Planning & Zoning (Blacksburg Village) Professional Organizations (Triangle Freenet) Rules & Regs (Triangle Freenet) Small Business Development Forum (Buffalo Freenet) Start-up Information (Buffalo Freenet) Supreme Court Decisions (Buffalo Freenet) Transit (Blacksburg Village) Yellow Pages (Triangle Freenet) You can visit all of these from one central launchpad. Try using Uhura.neocom.edu port 1070 it points to all the existing civic nets and its full of interesting information about our efforts. Other sources of information for Small Business include: Agricultural Business info (unlvm.unl.edu) Census (gopher.census.gov - for US info) ( Environmental protection for Industry (gopher.rtpnc.epa.gov) Human resources info (vuinfo.vanderbilt.edu /library/guides) National & International business (lambada.oit.unc.edu) Small business (econ.tucson.az.us) Worker Health & Safety resources (eshserver.pppl.gov) Visit these sites and "Borrow" whatever makes sense for your local use. And remember that each of these sites points to others with additional useful information. This is the Internet after all! 6. A sample " BUSINESS SERVICE CENTRE " MENU ======================================== Mayor's Letter to the Business Community 1. Business Assistance Directories INTERACTIVE business services on-line referrals self help conferences on-line assistance programs Introduction to the Financial Guide The Business Plan Business Education Services Employment Services Employee Safety Business Security Assistance Programs in the Community Small Business Service groups Community Loan Funds Bank Loan Programs Information for commercial visitors Internet Commercial Access providers Glossary 2. Elected Officials Directory Municipal Regional State / Provincial Federal 3. Starting a Business Checklist. Initial Research Methods Developing a Business Plan Legal Issues Accounting Issues Tax Issues Registration and Licensing Employee Issues Marketing & Sales Issues 4. Calendar of Events (What's happening) Business Meetings Special Events Seminars & other Training events 5. Trade leads Local Business Directories Regional & National Directories International and Foreign Directories Marketing Services 6. Other business info sources ON-LINE Local Census Information Local Trade and Employment Information OFF-LINE Local Library Business resources Business Publications Cd-roms with Business Information On-line commercial search services Business information special collections 8. Trade Missions - foreign trade assistance p.s. A - If you do create such a center - please let me know. I would love to have a look. B - I am working on an international information site for Business. In the future I will be sending out an announcement about this site. I will also be providing pointers to specific topic areas at the site as these are set up. Sam Sternberg ============================================== NETWORKS and COMMUNITY is a result of the work of people located throughout the global Internet community. Net facilities for the preparation of this newsletter are provided by the DISTRIBUTED KNOWLEDGE PROJECT - York University - Canada. Editing is done anonymously by a UNB librarian. Back issues are archived through the kindness of the staff at the WELL : gopher ---->gopher.well.sf.ca.us ->community --> civic nets... ---> networks & community; & the NATIONAL LIBRARY OF CANADA : gopher ----> gopher.nlc-bnc.ca "subscriptions" are available through the generosity of the listowner for the RRE NEWS SERVICE: subscribe by sending e-mail to rre-request@weber.ucsd.edu) with a SUBJECT LINE reading "subscribe ". Additional distribution is assisted by the managers and owners of NET-HAPPENINGS, COMMUNET, & the CANADIAN FREENET listservs This newsletter is in the PUBLIC DOMAIN and may be used as you see fit. To contribute items or enquire about this newsletter contact Sam Sternberg .