Small Business Lessons Learned

1. Small Business Lessons Learned Directions for Success Russ Watson, January 2007

2. Background • Who Am I? • Why I’m Here? • Accomplishments? FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

3. Start to Finish • Hatching The “Idea” • Developing a plan • Humble Beginnings • Marketing Plan • Manufacturing Support • Operations and Responsibilities • The Here and Now FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

4. Hatching The “Idea” • Identify Market • Identify Key Players • Identify Competition • Get the “Right” People • Do you have experience • Do you have the personnel • Build to Your Strengths • Improve existing skills • Train or develop new skills FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

5. Developing a Plan • Write a Business Plan • Statement of purpose • Clearly define expectations (goals versus expectations) • Establish Business Structure • Corporation type • Small-Business, Women-Owned, HUBZone, Veteran, Etc. • Determine Financial Requirements • Determine Goals and Needs – Use the plan • Secure Banking Relationship • Be selective • Talk to more than one • Write Your Quality Assurance Manual FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

6. Humble Beginnings Doesn’t matter where you start… FCCI’s humble beginnings in down-town Tacoma. FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

7. Marketing Plan • Who are your Market Targets • Understand your niche • Study the market • Business Types • As defined by your governing plan • Distribution model, contracting model, or consulting model • Stay with core competencies FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

8. Marketing Plan • Emphasize Small Business Certifications • Find and engage SMB advocate • Search for projects with small business goals • Driving New Business • Register in supplier portals • Federal agencies – DOD, DOE, GSA • EPC’s – Bechtel, Parsons, Fluor • Central Contractor Registration FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

9. Manufacturer Support • Develop Relationships With Manufacturer • Find appropriate manufacturers • Find those that are serious about partnering • Make sure they have a quality assurance program • Make all data available – No Assumptions • Plant visits • Understand “Buy American Act” • Compliance Bulletins • Suspect counterfeit material • Be clear on the 51% rule • Document verification • Best At What They Do • Only like minded companies • No compromising commitment to detail FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

10. Operations and Responsibilities • Have Basic Project Understanding • Learn about the plant / process • Environmental benefit • Have a Rock Solid Computer System • Project documents are large • Create concise files with all data • Name files with document name / number • Use upload system – Email may not work all the time • Learn Project Speak • Learn document titles G – 321E, G321-V, FOP, Reps/Certs • Buy an ASTM reference book • Make your exceptions and clarifications clear • Engage the team FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

11. Operations and Responsibilities • Deliver Complete Proposals • Representations/Certifications • Form of proposal • Scope of work • Technical form of proposal • Product submittals • Project references • Failure to do so = Lost Business FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

12. Success by Association Project commitment Form alliances Trust and integrity Mitigate risk Be professional Technically acceptable Protect your D&B rating WTP - over 50% small business Iraq reconstruction - over 30% small business Reputation The Here and Now FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C

13. The Here and Now • Fanatical Attention to Detail Always • Good is the Enemy of Great • Avoid “Good Enough” mentality • Self improvement Always • Better Tomorrow Than Today Always Enjoy the Journey FCCI F L U I D C O N T R O L S A N D C O M P O N E N T S I N C