
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 13, 1995                   TAG: 9504200032
SECTION: NEIGHBORS                    PAGE: E-16   EDITION: METRO 
SOURCE: MIMI EUBANK STAFF WRITER
DATELINE:                                 LENGTH: Medium

STICK TO PLAN, TECH EXPERT ADVISES ENTREPRENEURS

As far as Michael Tentnowski is concerned, there's only one "do" on the "do's and don'ts list" of opening a small business.

"Write out a comprehensive business plan," said Tentnowski, coordinator of business development programs and the Virginia Economic Bridge Initiative at Virginia Tech. "That's the answer."

Tentnowski works with small business development centers and various committees and organizations to promote Virginia small businesses.

Last year, he published The Virginia Entrepreneur's Guide with co-authors Paul Larson of the University of Montana and S. Michael Hensley, manager of Tech's Economic Development Assistance Center.

A business plan may sound like an obvious tip for opening a small business, but according to Tentnowski, many entrepreneurs either leave out important elements of a business plan or overlook an extensive planning process entirely.

But it's essential, said Tentnowski, because a business plan "forces you to think through all the aspects" of opening a business.

There are several guidelines to follow when writing a business plan:

Substantiate a financial projection. How much money will you need to invest to get your business started? How much profit will you make in the beginning, and will it be enough to cover your investments? And, Tentnowski advises, be prepared to be in the red for at least three to six months.

"Lots of folks figure they're going to get rich immediately," Tentnowski said.

Make your business unique. Know what your competitors offer and try to offer your potential customers more. Consider the quality of your product, guarantees and service.

Use the resources that are available to you. There are federal and state assistance programs, college and university business development centers, chambers of commerce and even public libraries to look to for information.

Know your customer. When selling products, entrepreneurs should sell how the product will benefit the customer, not the features of the product.

The don'ts of opening a business are essentially a reversal of the do's, said Tentnowski, with a few additions.

First, an entrepreneur should never assume that there is no competition. Remember the competition when devising the business plan and think of ways to make your products and services more attractive.

Also, don't over-diversify your products and services. Focus on one product or service, and make it exceptional. "If you're a resume service, stick to resumes," advises Tentnowski.

by CNB