The following entry was contributed by Rebecca Rodriguez, Regional Director of the Columbia-Harlem Small Business Development Center and Associate Director of the Engaged Entrepreneur Program at Columbia University, in observance of National Small Business Week:

In honor of Small Business Week, we are reaching out to the entrepreneurs in the District 15 area to share guidelines and best practices that affect all entrepreneurs.

But first, let’s introduce ourselves. The Columbia-Harlem Small Business Development Center (SBDC) is a network of 24 Centers in New York State. We offer small business technical assistance to anyone looking to start, grow or expand a business. We were established in 2009 under Columbia University, with the goal of offering one-to-one assistance to the Harlem and Washington Heights community.

In our short time of existence, we’ve noticed a few trends that have affected the businesses in our neighborhoods. As the number of residents in the community has expanded, so have the businesses. For this blog, we’d like to write about restaurants/cafes, procurement (contracting) and the business cash flow. Let’s go over some key pitfalls to avoid in each of these areas:

If you are going into launching a restaurant/café, here’s a very quick synopsis of the good, the bad, and how to avoid ugly:

• The Good: You have a passion for food, a social culture and hospitality. This is great. If you do not have first-hand experience knowing what a restaurant/café environment is like, then you should find a way to learn. There is no replacement for knowing what it is like aside from experiencing it. Spending some time in the environment will help you avoid a lot of first-timer mistakes that can cost you your business.

• The Bad: Lack of planning. A restaurant/café really needs to be efficiently run. Each staff member you have has a specific job to do; each table needs to be turned within a set timeframe; your high-volume times need to run smoothly. If you have not planned for it, you are not ready for it. This industry absolutely needs a business planning document.

• Avoid Ugly: Cooking experience is not the same as business experience. Learn what it means to be a business owner and give yourself the time to understand how you want your business to run. Restaurants/cafes are about much more than good food. Knowing how to manage your finances, your employees and retaining your customers are necessary elements to running a successful business.

Procurement is also an area of focus. Our federal and state entities have taken great strides in securing a M/WBE voice in this arena – however, preparation and being ready for opportunity is key in this very competitive environment.

• Preparation. Coming up with a competitive bid package is a work of art. You will need to prove you are the best person for the job and that you will be flexible to the client’s needs. Do research on what makes a successful bid. Be prepared to ask questions so you fully understand what the potential client wants. This will make all the difference.

• Certification. While being certified can open many doors, it is no sure guarantee. Be diligent in pursuing opportunities. Research what companies have won prior bids and see if you can become a sub-contractor to learn the ropes.

• Winning a Bid. If you have won a project, take a moment and congratulate yourself – no doubt a lot of work was put into it and the winning bid is your reward. You owe it to yourself, and your business to make sure your bid is accurate. If you did not estimate correctly; if you miscalculate operating expenses and site regulations; if you cannot pursue bonding, you may be in danger of failing on the project. This can potentially cost you your business.

And finally, cash flow - it is sometimes referred to as the ‘pulse’ or the ‘health’ check of a business. Here’s how to get a clean bill of financial health:

• Debt Servicing. The benefits of keeping accurate, thorough accounts of your cash flow are significant. It is the only way to understand how your business is functioning within a given time. Debt servicing is a part of that financial puzzle. Any and all debt should be listed and accounted for, with the payments in your projected cash flow.

• Planning Ahead. Understanding your cash flow is necessary in order to plan your business financial future. This will help you anticipate overages, delays, and how much working capital you have.

• Planning 36 months ahead, actually. If you have ever sought a loan, you may know this already. 36 months of financial projections are required for most lender applications. This is also a good planning tool. Make sure your cash flow fluxuates with the cycle of your industry – what are the slow months, the break-even periods, and the profitable ones.

How the Columbia-Harlem SBDC can help. We have counselors with decades worth of experience in advising successful businesses. We understand the mechanics of what is needed, and we also the environment. Join our listserve to learn about our workshops and programs. You can also request to meet one-on-one with a counselor. We can help you connect your passions into successful ventures.