Features

Is this the right time
to go into business?

By Jim Youngquist

[FEB. 28, 2003]  Tough times continue to be upon us in the small-business community. Our lagging national economy has certainly been hard on small and large businesses here in the Midwest over the last two years. Every business has felt the crunch, and many have been forced to fold. Even the most stable business has suffered from diminished cash flow, diminished profits and greater competition cutting up a much smaller pie. Business analysts are split on when the recovery will come, and the stock market reflects the public's greatly diminished confidence in business' ability to recover.

In light of this dismal economy, what do you do if you have entrepreneurial ideas and urges? Is this a good time to start a business? Do you wait? Do you discard your plans? Do you purge your urge?

In my experience, downbeat economic times can actually be an excellent time to start a new business. Over my lifetime I have started five businesses, still am running three of them, and have helped many other people start businesses during economically blue times. The secret to success may not be in your analysis of the business climate as much as having the right method and planning for your upcoming enterprise.

First of all, during a downbeat economy, business is generally at the bottom. Everything is usually up from there! If you start a business in that climate with conservative efforts, very conservative money, and survive while business is bad, most likely your business will thrive when economic times get better. The key here is to start with a well-organized business plan that is reliant on very conservative projections and very conservative spending to accomplish your goals. And when the economy gets better, stick to your conservative plan with conservative expansion, because an upbeat economy is a short-lived thing.

Second, start small and grow it. Most businesses are begun on a shoestring: tiny little enterprises that grow out of personal interests or hobbies. They get started while you don't have to rely on them for income. You establish a product line, network with suppliers, gather customers and plan for the future in your spare time, with little capital, and allow the profits to fund business expansion. This is the safest way to start a business, and it is one of the most successful. So, don't quit your day job, and begin planning your tiny little business startup.

Third, research your business ideas and the competition thoroughly. Know what everyone else is doing in your field and in your geographic area. Research what other businesses outside your area are doing and how they have been successful. The more you know about your upcoming enterprise and how everyone else is doing it, the more chance you have to be successful. And the research does not end there. It is one thing to start a successful enterprise, it is another to keep it successful. Continued product, service and competition research is a necessity in business.

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Fourth, and most important, every business must have a detailed, written business plan. Take the time to detail what you will sell, what you will do, who will be your customers and who will be your suppliers. Include details in your business plan about how you will obtain financing if necessary and when you will hire employees. Use very conservative projections as you develop this plan. And then, when you think your business idea is down on paper, take it to the business experts to get their opinions and their help to make your dream come true. Take it to the local chamber of commerce, to your banker and perhaps even to the mayor of your city or village. Ask them to keep the information confidential before you present it because you don't want to tip off your potential competition. With all these business "promoters" on your side, you now have some allies, some potential customers and some good advice.

As your business continues to grow and change over the years, your written business plan must continue to reflect your current business, the market and the economy. You must continue to update your plan and use it to guide and restrict your steps.

Finally, choose something that's different from what everyone else is doing. These are difficult economic times. Competition for customers has forced prices and profits down to the point where the heartiest businesses have a hard time surviving. If you are selling a product or providing a service, do it in a way that the competition hasn't thought of. Forget about making a mint providing regular commodities: Everybody else has the same stuff, and someone is always selling for less than you. Lowest price generally attracts the most customers. So, predicate your business on a product or service that is exclusive and has a chance of maintaining an adequate profit margin. Be unique and be successful!

Don't allow other people's pessimistic attitudes to smash your dreams or put your plans on hold. Good planning, a positive attitude and lotsa elbow grease can usually make a good business plan succeed. Attitude leads!

[Jim Youngquist]

Illinois has a long history of
producing successful inventors

By Paul Niemann

[FEB. 27, 2003]  While Illinois is known as the Land of Lincoln because President Lincoln grew up here, many Illinoisans do not know that he was also one of the few U.S. presidents who was also an inventor. In 1849, while serving as a representative in Congress, Lincoln was issued a patent for a "device that buoyed vessels over shoals."

While Illinois has been home to such famous residents as Marshall Field, William Wrigley, Ray Kroc and Michael Jordan, this column is not about them. This column is about Illinois' most prolific inventors and their inventions. As we travel throughout the state to shine the spotlight on some of our greatest inventors, we discover some who became household names, while others lived in relative obscurity even though their inventions became household names or led to the creation of some of America's greatest companies.

Our journey begins in the author's hometown of Quincy, on the banks of the Mississippi River. Quincy is home to inventors Parker Gates, Elmer Wavering and William Lear, who were all pioneers in the electronics industry.

According to Quincy Herald-Whig archives, Parker Gates and his father co-founded the Gates Radio Company in 1922 in a rented storeroom when Parker was just 14. Parker's early inventions included a sound machine that was used in movie houses all over the country, along with the first transcription turntable in 1929. A few years later, he invented a remote amplifier, which enabled radio stations to broadcast events live from outside the station, and in 1933 he invented a smaller version of the microphone as well as the first radio station master console and the first radio broadcasting transmitter.

With the advent of television in the 1950s, the Gates Radio Company began producing television broadcasting equipment and transmission towers. Gates Radio was later bought out by what is now Harris Broadcasting Corporation in 1957, and Gates stayed on to serve as president of the subsidiary.

William Lear was one of America's most successful inventors ever. Lear was born in Hannibal, Mo., in 1902, and his family soon moved to Chicago, where he attended school up until the eighth grade. After serving in World War I, Lear moved to Quincy in 1922 at the age of 20.

Lear and a friend, fellow Quincyan Elmer Wavering, co-invented the first practical car radio later that year. Unable to afford a booth at a major automotive trade show in Chicago, the two inventors devised a way to attract the attention of potential customers who would be attending the trade show. They parked their car near the entrance and cranked up the volume of their radio, attracting the attention of nearly everyone who passed through the doors that day. As a result, they were able to write up more orders from new customers than either of them could have imagined. Lear and Wavering eventually signed over the rights to Motorola in 1924, and their car radio became Motorola's first major product.

According to the Lemelson-MIT Invention Dimension website, other Lear inventions included the world's first reliable aeronautical radio compass, as well as an automatic pilot system. The first fully automatic landing system that Lear developed earned him the FAA's Collier Trophy, an award that was bestowed upon him by President Truman.

In 1962, he made possible the first-ever completely automatic blind landings of passenger flights. Today, Learjet, which Lear formed in 1962, is the world's foremost supplier of corporate jets. Lear also designed the eight-track tape player in the 1960s. Altogether, he earned more than a hundred patents in the audio, automotive and aircraft industries from 1930 to the 1960s.

Leaving Quincy, we get in the boat and travel upriver to Moline, where John Deere opened his first factory. Deere was born in Rutland, Vt., in 1804 and moved to Grand Detour, Ill., in 1837. The cast-iron plows used in the Midwest at that time were designed for the light, sandy soil of New England, not for the fertile Midwestern soil. The rich Midwestern soil would cling to the plow bottoms, causing the farmers to stop every few steps to scrape the soil from the plow.

Deere studied the problem and became convinced that a plow could be developed to scour itself. He created such a plow in 1837 and successfully tested it on a farm near Grand Detour.

The first Deere & Company factory opened in 1848, and today the company sells more than $13 billion in agricultural equipment annually. It is one of the nation's 100 largest manufacturing companies.

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Some of the best new inventions come from simply combining two separate ideas. In 1890, Benjamin Holt and Daniel Best each developed their own types of tractors. Holt developed the world's first steam track-type tractor in 1904, while in 1906, Best developed the world's first gas track-type tractor, which crawled along the ground like a caterpillar. They weren't working together at the time but rather for separate companies. According to the Caterpillar website, Caterpillar track-type tractors were used by the Allies in World War I, and in 1925, the Holt Manufacturing Company and the C.L. Best Tractor Company merged to form Caterpillar Tractor Co. Today, Caterpillar is the world's leading manufacturer of construction and mining equipment, and its diverse product line of more than 300 products accounts for more than $17 billion in annual sales.

Next, we hop on our tractor and continue riding east as we search for more inventions in the town of DeKalb. Farmers all across the country appreciate the work of DeKalb residents Joseph Glidden and Jacob Haish. According to Scott Cook of the University of Virginia, early versions of barbed wire had been invented as early as 1867, including a version by Haish, but Glidden perfected it in 1873 and is known as the inventor of modern-day barbed wire. Haish invented an automatic machine to manufacture it the same year.

The significance of barbed wire was that it replaced the more expensive stone, rail or wooden fences that were being used at a time when there was a lack of timber in Illinois. Glidden sold the rights to his barbed wire in 1876 and continued receiving royalties for the next 15 years, while Haish became one of the wealthiest men in DeKalb during the late 1800s.

Cyrus McCormick, the inventor of the mechanical reaper, earns a spot in this article even though he didn't live in Illinois until he was 38 years old. Creating a reaper after his father had tried and given up on the idea, McCormick patented his invention in 1834 after a competing inventor had announced the construction of a reaper of his own a year earlier. He started to manufacture the machine on the family estate in 1837.

Sales were slow in Virginia, and after meeting with Illinois Sen. Stephen A. Douglas in 1846 and visiting the vast grain fields of the Midwest, McCormick decided to move his operation to Chicago.

According to the National Inventors Hall of Fame, McCormick's reaper combined all the steps that earlier harvesting machines had performed separately, allowing farmers to more than double their crop size. By 1860, he was selling over 4,000 reapers a year, and his success in Chicago helped make Chicago the greatest grain port in the world.

McCormick's company eventually merged with a rival to become International Harvester Company, and today it is known as Navistar.

The first African-American woman to receive a patent was also from Illinois. According to the Enchanted Learning website, Sarah Goode of Chicago was a businesswoman and inventor who received a patent in 1885 for her folding cabinet bed. When not being used, the bed folded up against the wall into a cabinet, to be used as a desk. Goode invented the bed for people living in small apartments.

Since Chicago is as far east as one can travel in Illinois without getting wet, we end our search for inventions here. Our journey began in Quincy and it ends, for now, in Chicago. Even though we've only scratched the surface of the subject of inventors and their inventions, it's time to gas up the car, the boat and the tractor, so we'll stop here for now.

Next week: Here's why you've never heard of the OTHER person who invented the telephone

[Paul Niemann]

Paul Niemann is a contributing author to Inventors' Digest magazine. He also runs MarketLaunchers.com, helping people in the marketing of their new product ideas. In addition, he teaches marketing and advertising at Quincy University. He can be reached at niemann7@aol.com.

R & H Farm Supply to close

[FEB. 15, 2003]  R & H Farm Supply, Inc., in business in Lincoln since 1962, has announced plans to close, with the going-out-of-business sale to start Friday, Feb. 21.

Manager Darren Humphres explained that for several years the number of farmers in the area has been going down, and business and industry have also been decreasing. These represent the customer base for the farm supply and hardware store. At the same time competition has gone up.  The result has been more ways “to split the pie up,” leaving a smaller share for each. Eventually, the R & H share grew too small.

Humphres said the going-out-of-business sale will begin next Friday, with 20 percent off. The percentage reduction will gradually increase until the merchandise is gone. According to Humphres no exact closing date has been determined.-  “It could be a month,” he said, or more or less, depending on business.

R & H Farm Supply is owned by Humphres' father Harold Humphres. It is affiliated with Ace Hardware, a buying group or co-op. There are eight employees.

Harold Humphres bought the business from the Custis family in 1985. It was founded in 1962 by Roy and Helen Custis, from whose first names the corporate initials are derived.

[Lynn Spellman]

Paramedics enjoy spacious new home

[FEB. 14, 2003]  On Sunday, Feb. 16, Logan County Paramedics will show off their new 6,000-square-foot headquarters on Postville Road.

The open house will feature tours of both the downstairs business area and upstairs living quarters. Former state Rep. Jonathan Wright, a Logan County Paramedics Association board member, will speak at the 2 p.m. dedication ceremony. Also on the program are Dr. G.E. Blaum, president of the board of directors, and Steve Siltman, chief executive officer and office manager. Hours for the open house are 1-5 p.m. Refreshments will be served.

Siltman said the new location at 1300 N. Postville Road is ideal for serving the entire county. From the edge of Lincoln ambulances can quickly get to either city or county addresses, he explained. The paramedics moved into the building Nov. 16, 2002. Phone numbers remain the same: 911 for emergencies and 732-2212 for other business.

The new facility is five or six times the size of the paramedics' former headquarters at 1185 Walnut St. Abraham Lincoln Memorial Hospital leased that building plus ambulance space at the hospital to the county at half the operating cost, according to Woody Hester, ALMH president and chief operating officer. Space was the only reason for making the switch, Siltman affirmed.

"I think it's great!" office coordinator Shirley Alberts exclaimed about the roomy facility, which has more than enough closet and floor space for all her files. She said the new office affords a better atmosphere and more privacy for customers who want to discuss their bills. "It's a lot nicer that (the paramedics) have their own rooms," Alberts continued. "They can bring their stuff here, not have to lug it back and forth."

[Photos by Trisha Youngquist]

From the '50s through the '70s the building housed a John Deere dealership. Then it was a Pontiac-Cadillac dealership through the '90s. The paramedics association bought the structure from Jim and Patricia Glenn.

In renovating the building, the paramedics gutted the interior and started over from scratch. Everything is new, Siltman said, including new city water and sewer hookups, plumbing, heating and interior design. The renovation project is virtually complete, except for stripping and staining the garage floor, which will be done later in the year. Plans also include resurfacing the parking lot and adding signage as money becomes available.

The first and second floors are 3,000 square feet each. At ground level are offices, a training room, laundry and storage areas.

The training room includes pull-down screen with rear projection, a computer for Power Point and other presentations, and DVD and VHS projectors. Siltman said the room is heavily used. Besides board meetings and monthly training sessions, it is home to special classes such as a two-day Pre-Hospital Training Life Support course and a 16-week Emergency Medical Technician basic class. Steve Boatman of Loami is education coordinator. The training room, with outside access in the middle of the facade, is available for public use as well.

Also on the ground floor are the ambulance garage, housing four vehicles, and another garage with storage space and some exercise equipment. On the ambulance garage wall are maps to help locate patients. Included are maps of the city, county and multi-building sites such as Eaton Cutler-Hammer, Centennial Courts, Christian Homes and several mobile home parks.

Upstairs are living quarters for the paramedics. Each four-member shift works 24 hours, changing at 7 a.m. In addition to a spacious TV room, kitchen, eating area and two full baths, the living quarters contain 14 bedrooms, one for each full-time paramedic and two for part-timers. Siltman and Alberts, who work eight-hour days, do not have upstairs space.

Alberts said the association averages 260-275 ambulance calls per month. Despite benefiting from a Logan County levy for ambulance service, the association strives to be as self-supporting as possible. Siltman said, "If we ask for something, we're going to need it." The philosophy of the 12-member board is to "be prudent with tax dollars," Siltman emphasized.

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Board members include Blaum, Wright, vice-president Warren Peters, treasurer Shirley Edwards, secretary Bob Thomas, Randal Storm, Clifford Sullivan and Paul Beaver, all of Lincoln; Bill Martin of Atlanta; Eldon Behle of Elkhart; Suzanne Aper of New Holland; and Gene Bathe of Hartsburg.

This year for the first time since the '70s, Siltman said, the county ambulance service provider is not receiving any subsidy money aside from a $50,000 levy to purchase ambulances, down from $125,000 last year. The maximum levy remains at 5 cents per $100 assessed valuation, or .05 percent, and would bring in about $190,000. However, the actual levy has never reached even .04 percent. This year it is .0133 percent.

Siltman noted that the financial status of Logan County Paramedics Association is dependent on Medicare and Medicaid reimbursements, which are subject to change by the federal government. If reimbursements fall, the paramedics may have to ask for a higher tax levy.

Reimbursement levels were cited by ALMH president and CEO Woody Hester in 1999 when he announced that the hospital would not compete to renew its ambulance service contract. He said Medicare and Medicaid reimbursement rates are less favorable for hospital-based ambulance services than for those that are non-hospital based. Therefore it is in the best interest of the community to have a non-hospital-based service. In 2003 the rate differential continues, providing LCPA with more reimbursement money than the hospital would receive for the same service.

The four ambulances owned by the association are 1998, 1999, 2000 and 2002 models. Siltman expects to buy a new ambulance in 2004. One reason this year's levy is down is that there is already enough in the county ambulance fund to make the purchase.

Prior to the early '70s local ambulances were operated by funeral homes. Then ALMH contracted with the Logan County Board to provide ambulance service for the county. At first Decatur Ambulance Service supplied the vehicle and one EMT, while ALMH contributed the other EMT, space for the ambulance and a bedroom. Attendants also worked for the hospital, primarily in the emergency room, Siltman said.

In 1976 the county passed an ambulance service referendum. With the new tax dollars ALMH was able to sever its relation with Decatur Ambulance Service, purchase an ambulance and receive a $50,000 annual subsidy for operating expenses, including salaries. At about the same time all EMTs enrolled in nine-month paramedic school at St. John's Hospital in Springfield, graduating in 1977.

ALMH continued to operate the ambulance service until 1999, when it did not seek to renew the contract. Then the Logan County Board bid out the ambulance service. The successful bidder was the newly formed Logan County Paramedics Association, made up of hospital paramedics plus a board of directors from the community. In December 1999 the association began serving the county.

The current full-time paramedics are organized in three alternating 24-hour shifts. On A shift are shift manager John Olmstead, Gene Simer, Deana Jones and Troy Howie of Atlanta. B shift comprises manager Penny Thomas, Danny Dean, John Short and Molly Williams of Mason City. C shift consists of manager Corey Slack and Steve Boatman of Loami, Heather Bree of Springfield and Polly Riggs. All not otherwise identified are from Lincoln. In addition to Siltman, Alberts and the full-time paramedics, there is a part-time fill-in roster of 10 paramedics, one EMT and several clerical workers.

[Lynn Spellman]

Automotive business plans
move to Woodlawn Road

[FEB. 11, 2003]  The most colorful buildings in town are about to come down, and J&S Auto Centre will soon have a new home on the corner of Woodlawn and Palmer.

Jim Horn, who owns J&S Auto with his wife, Shelley, said he expected to close on the Woodlawn Road property and begin demolition soon. "Permits, permits, permits," he said in explaining one element that makes the process take a little longer.

The Horns have already succeeded in getting the property rezoned from residential to commercial.

"We're shooting for a June 1 grand opening," Horn said. Realistically, though, he knows it may take a month or month and a half longer to complete construction and the move.

[photos by Bob Frank]

The Horns plan to erect a 4,000-square-foot building to house their automotive store and Bombardier all-terrain vehicle dealership. The building will include a showroom for the ATVs. There will be two overhead doors for vehicles on Palmer and an entrance each on Woodlawn and Palmer. It will be a "nice-looking, unique building," Horn said.

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Most of the 31,000-square-foot property will be purchased from the Buelter estate. In addition, there is a 9-by-110-foot strip at the rear that comes from a neighbor's property.

Horn said the reason for moving is that J&S Auto Centre has outgrown its current home on Logan Street. The Horns began the business 13 years ago at 101 N. Logan. Seven years later they moved across the street to 103 S. Logan. That move also was motivated by the need for more space.

[Lynn Spellman]

Announcements

The Chamber Report

Chamber's annual dinner initiates Legion facility

[FEB. 27, 2003]  Chris Coyne of State Farm Insurance and Barbie Carter of Logan County Bank were recognized as king and queen of the Lincoln/Logan County Chamber of Commerce's Mardi Gras-style annual dinner. The dinner Saturday night, Feb. 15, was the first event to be held in the new American Legion Hall.

Mary Conrady, manager of the Lincoln CEFCU office and immediate past president of the chamber board of directors, reviewed chamber accomplishments for the past year. Twenty-two new members were inducted into the chamber, 27 traditional ribbon-cutting ceremonies were conducted by the Ambassadors, and eight chamber businesses hosted after-hours mixers. In addition to the "Meet the State Candidates" breakfast, morning programs focused on technology tips and advice for owners of small businesses.

Continuing to bring agriculture and business leaders together, the chamber organized the third annual Logan County Ag Day breakfast and hosted a chamber mixer on a farm. Quality-of-life community events organized by the chamber included a luncheon for office professionals, the Lincoln Art & Balloon Festival, a golf outing, and the Christmas parade. Local trade was promoted through the Chamber Bucks program and cable TV exposure.

"If I had to choose one accomplishment over the past year that stands above all others," said Conrady, "it would have to be the community video that was produced by the chamber's marketing committee. The video is a powerful tool to attract businesses, individuals or families to locate here."

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Conrady then introduced the new chamber president, Brian Ash of Logan County Bank. Ash unveiled his theme for the coming year, "Planting Seeds for Progress." "The actions we take today will have an impact on tomorrow," he said. "We have already taken steps for our future within the chamber. Our director, Bobbi Abbott, recently completed the four-year Institute for Organizational Management certification, and we have added Jeff Mayfield as economic development director and Senator Bob Madigan as government liaison. We're ready to grow the economy!"

Ash introduced new chamber board members Diane Van Dorn-Slack of Midwest Records Storage; Ed Block, Saint-Gobain Containers; Rick Hamm, State Farm Insurance; and Steve Smith, Illinois American Water Company. Conrady recognized retiring board members Todd Lowman of Garland Gehrke Trucking and Terry Werth from the Logan County Board.

[Press release]

Lincoln/Logan County Chamber of Commerce

Bobbi Abbott, Executive Director

303 S. Kickapoo St.

Lincoln, IL 62656

(217) 735-2385

chamber@lincolnillinois.com
www.lincolnillinois.com

[Click here for information on ag scholarships sponsored by the chamber of commerce]

Honors & Awards

Main Street Corner News

Main Street Lincoln offers
business start-up monies

[FEB. 17, 2003]  To entice new businesses to open in downtown Lincoln, Main Street Lincoln is offering financial assistance through a $20,000 grant from Illinois FIRST.

Eligible businesses must locate in Lincoln's Courthouse Square Historic District and have a business plan based on the Small Business Administration model.

The Business Builder Fund is aimed at new businesses that need financial assistance to get started. Funds are available to business owners who would not be able to meet bank loan down-payment requirements without these funds. The grants will provide no more than one-third of the equity or down payment for a bank loan, or a maximum of $10,000.

Application for the grant is made as part of the business loan application process at participating lending institutions. A lending institution recommendation is required for the award of this grant.

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"We are offering this money to encourage people who would like to own a business but don't have the financial means to get started," noted Dale Bassi, chairman of the Main Street Lincoln Economic Restructuring Committee. "Downtown Lincoln is a great place to open a business, with its mix of retail and service businesses and restaurants," he added.

For more information about the grant and available property in the historic district, contact Cindy McLaughlin at Main Street Lincoln, (217) 732-2929.

[Main Street Lincoln press release]

[Click here for more details from an earlier posting in LDN.]

Main Street Lincoln recognizes
volunteers and elects new officers

[FEB. 13, 2003]  At its annual meeting last week at the Maple Club, Main Street Lincoln announced officers elected for 2003. The new officers are David Lanterman, president; Dan Doolin, vice president; Susie Fuhrer, treasurer; and Linda Churchill, secretary. Main Street Lincoln also welcomed newcomers Dr. Kristin Green-Morrow and Chris Slack to the board

The Lincoln College Express provided a festive evening of entertainment for the annual meeting. Recognition was giving to outstanding volunteers of 2002: Paul Beaver, Linda Churchill, Ron Keller, Dick Logan, Michelle Schick, Melody Shew, Angela Stoltzenburg and Betty Verderber. Awards of outstanding service were given to exiting board members Jan Schumacher and Dale Bassi.

Sen. Bill Brady joined in the festivities as did several Lincoln government officials.

"It is obvious by the great attendance and enthusiasm of the attendees that Main Street Lincoln plays a positive role in promoting our downtown and enriching our community," said incoming president David Lanterman.

Main Street Lincoln is a volunteer-driven organization. It is only with the help of the community that goals are achieved. Volunteer opportunities, big and small, are always available. If you'd like to help with the goals of 2003, please call Main Street, 732-2929, for more information.

[Main Street Lincoln press release]

Main Street Lincoln

Cindy McLaughlin, Program Manager

303 S. Kickapoo

Lincoln, IL 62656

Phone: (217) 732-2929

Fax: (217) 735-9205

E-mail: manager@mainstreetlincoln.com