Running a business is like going on a diet...it sounds like a really good idea until you have to do it. When I started my company nine years ago, little did I understand just how hard it was going to be. My first piece of advice is to understand your target market. If you don’t know your target market, then go to work for someone else and learn. It is far too risky on your own even if you are very competent and capable.

If success means:

• Staying up all night to get a proposal out

• working at the office seven days a week

• getting 45 e-mails in one hour—half marked "Urgent!"

• taking the red-eye to make a meeting

• carrying your cell phone and laptop everywhere you go (like to the beach)

...then I definitely have a successful business.

But seriously, with all the hard work, long hours and frustration, Arrowhead has

• grown from 1 to more than 80 employees

• revenue has increased from $65 K to $10 M

• achieved valuable name recognition

• reveived numerous awards and honors

• was the top technology firm in Virginia in 1999.

I was able to stay aloat in the early days due to No Debt. My children were grown and on their own. I did not tak e a pay check to speak of for two years. All income was poured back into the business. I used investment certificates to guarantee a letter of credit.

My question is, Are you willing and able under difficult circumstances to stay the course to success?

You will need each of these ingredients for success:

• capital

• infrastructure

• technical proficiency

• sound management

• people skills

• quality products/services

A stable financial base for your business is paramount. More businesses get themselves into trouble early on over finances than any other factor. You should have accounting processes for cost control, minimize overhead costs, establish a good relationship with a savvy banker, establish a line of credit, and understand risk management.

By infrastructure I mean, first, accounting, and then defined roles and responsbitilities. Some of my biggest problems in the early days were brought on by this issue. I felt that employees knew what needed to get done and would do it. What I found instead was that you must define employees' roles, your expectations, and have a method of measuring their efforts. Computer networks must be standardized, and rules and regulations must be set up and enforced. Do not wait until you have a problem to act.

Sound management is key. No matter how much of a genius you may be in a specific technology or proudct area, that does not mean you have business skills. Use expert consultants in legal, tax accounting, human resources, cost estimating and other areas. hire only those skills essential to your business seuccess. I still use a contract management firm rather than a full-time staff person. Yes, it does cost, but not as much as salary, benefits, office space, PC, etc. You have to consider all of your costs when hiring a full—time person.

People skills are very important. people do business with people they like. you cannot gain corporate visibility by sitting in your office. Accept speaking engagements. Write articles and attend professional seminars. Have a good web site. On your business card, have what type of company you are, for instance, SBA-8a, women-owned business, hub zone, etc. Sell your self, join organizations, and spend your money with organizations. Have folders with corporate literature. The lowest cost to gain recognition is writing articles and public speaking. They establish you as an expert and promote your business.

Regarding technical proficiency: Bet the best, not second best. Study, and be the known expert. Your preparation, perspiration, inspiration and luck will equal opportunity and success. I real and study about Satcom and IT-related issues every evening to stay up on my business. I tis OK once in a while to say I need to do a little research before giving you an answer, but do not let that happen often. However, make sure you hear and understand the question. My technique is to say, let me see if I understand the question and then repeat it back to them. If you don’t understand the question, you won’t be able to give a satisfactory answer.

Technical proficiency is not enough without udnerstand the business aspect. Even if you ahve built the best mousetrap, you may not be succcessful at brigning it to the market profitably. our motto is, "On target with quality solutions."

Focus on closing the sale. Focus on two to three agencies or two to three opportunities. Understand your competition and your specific skills for the task. Focus on cost analyses and pricing, as well as risk.

• Develop your market niche (small cannot do it all)

• develop a business plan: one year, three years, and update regularly

• recognize your weaknesses/strengths

• don’t give up

• make the commitment.

• Identify agencies that have a need for the services or products you offer

• Meet with the Small and Disadvantaged Business Utilization (SADBU) Office and the Contracting & Program Managers

• If the SADBU is not proactive for small business, run for the door.

• Don’t depend on getting sole source small business set-aside awards

• Review target agency’s existing contracts (note when contracts will be up for recompete or renewal)

• Look for "full and open" competitions that could be done by a small business

• Encourage (nag) the SADBU office to promote carving out a piece of the work as a small business set-aside.

Our company, Arrowhead, has recently won several contracts as prime by following these steps. First, though, we were well-known at the agency. The SBO was comfortzble that we could live up to the task. On contract, at $2.1 billion, is the largest SB procurement in the history of the federal government.

• Running a small business is hard work

• People need recognition and rewards

• A little spice is not an option—it’s a necessity.

Rewards can be monetary as well as status or titles. We have hot wings and drinks for staff and customers twice a month, as well as a birthday party once a month. Employee stock options are very important in promoting pride and ownership. Newsletters are another way to give recognition and keep folks informed.

Whatever your faith, don’t neglect the power of faith and the Golden Rule. It pays to help others. Many others have helped you achieve successes. Pass it on.