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Network: October 1989

Network reader-to-reader advice.

Educating the Owner

Most of the Network responses we received this month concerned the query from Steve Tanner of Bolero Pizza, Subs & Salads (Educating the Public, August, [Article link]). He had expressed exasperation with the intelligence level of his blue-collar customers, who would ask, for example, "How large is a 12-inch pizza?" One reader called in to say he had the same problem. Others were less sympathetic:

It is a shame that Mr. Tanner requires a certain level of intelligence in his customers. I would have thought he needed only hungry people with money in their pockets. And maybe my intelligence is limited, too, but how large is a 12-inch pizza? Four slices? Six? Tanner says the old owner offered items he doesn't carry anymore. If I knew someone who would come in three times a week and pay $2 for a peanut-butter-and-banana sandwich, I'd figure out a way to honor his taste buds. Steve, are you running a quiche-and-club-soda-let's-do-lunch-dahling café, or are you trying to make money on your food kiosk in a blue-collar part of town?

Christi M. Lutz

Office Manager

Todd-Gary Inc.

Baltimore

Why not give customers a paper cutout of a 12-inch pizza, listing all the ingredients as well as the kiosk's address and telephone number? Or what about delivering free pizza samples at lunchtime to different areas of the city where people might appreciate his offerings more?

Jeannine Murphy

Communications Director

ATEC Associates Inc.

Indianapolis

Inventive Solutions

Bob Winter of Bob Winter Designs Inc. had inquired about the types of contract services available to inventors (Help for Inventors, August, [Article link]). In particular, he wondered whether outside contractors could be found to hand parts ordering, order taking, and the like.

Mr. Winter can easily find a contract manufacturer who will order material, fabricate product, and ship to customers. He should be prepared to pay a minimum of 10% markup on materials for these efforts. He would be unwise, however, to let "order taking" get out of his hands, at least in the early stages. How else can he get a feel for the market and a sense of the opportunities and options available? Later on, he can rent an 800 number with operators to take orders.

A. G. Alessi

Principal

J.T.L. Design Group

Ocean, New Jersey

Perhaps what Mr. Winter needs is a business like the one described on page 60 of the August issue (" Inc.'s Guide to 'Smart' Government Money," [Article link]).

John E. Cutting

President

J & N Enterprises

Rockville, Md.

For more about business incubators, see "Mother of Invention," [Article link].

Business 101

Readers also responded to Robert J. Connolly's request for help in structuring his new company (How to Organize a Business, August, [Article link]). Most advised him to get an accountant or to take an accounting course. A representative of the Small Business Administration wrote in offering assistance. Then there was this letter:

Sole proprietorships, partnerships, and corporations are primarily tax and legal liability structures. Any accounting firm would be happy to describe their differences for a fee. That's not how to determine a company's organizational structure, however.

I used to be a small-business consultant. When I founded my own business, I began by writing the world's most structured organization chart. I promptly hired too many chiefs, and their wages almost killed us. What did I learn? You should hire the foot soldiers first. Build from the bottom up, not the top down. What work needs to be done to help you? Write down the tasks; then sort them into well-thought-out job descriptions. You'll find it much easier to decide when and whom to hire. You'll need supervision only as your company grows. Let it grow and shape its structure as you go along.

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