Don’t Blame the Economy: More than Half the Fortune 500 Born as Start-Ups in a Downturn

Silver lining in hard times?

According to a new study by the Ewing Marion Kauffman Foundation, challenging economic times can serve as the rebirth of entrepreneurial capitalism, leading to the creation of much-needed new jobs.

The study, “The Economic Future Just Happened,” found that more than half of the companies on the 2009 Fortune 500 list were launched during a recession or bear market, along with nearly half of the firms on the 2008 Inc. list of America’s fastest-growing companies. The report also suggests a broader economic trend, with job creation from startup companies proving to be less volatile and sensitive to downturns when compared to the overall economy.

“You can see the story of the American economy in these numbers,” said Carl Schramm, president and CEO of the Kauffman Foundation. “History has demonstrated this time and again: new firms create new jobs and fuel our economy. Policies that support entrepreneurship support recovery.”

The study points out that while recessions often create widespread economic grief, they also can encourage potential entrepreneurs, acting “as an extra spur to founding a new company, if the founders perceive their prospective competition might be weakened.” Rising unemployment can benefit new enterprises: entrepreneurs may view unemployment as an opportunity to start a company, and seize the advantage provided by the ability to tap into a larger pool of potential employees.

“While startups may not begin with the intention of reaching the Fortune 500 list, they’re hard at work under the radar,” said Dane Stangler, senior analyst at the Kauffman Foundation and author of the study. “These companies may remain invisible to most of us, or they may one day grow into household names. Either way, they’re steadily recreating our economy—generating jobs and innovations.”

Stangler said companies that reach the Fortune 500 and Inc. lists demonstrate the strength and flexibility of successful entrepreneurial enterprises.

“We imagine the Fortune 500 to be giant dinosaurs lumbering across the landscape,” Stangler said. “That’s not the case. The turnover and churn on the list is remarkable. Successful, big companies have to be entrepreneurial, and they are.”

FREE DOWNLOAD: The Economic Future Just Happened (PDF, 21 pages)

Jean Caragher: Eight Ideas to Jump Start your Marketing program

Is Your Marketing Program Stalled?

Jean Caragher, president of Capstone Marketing and a leading consultant to accounting firms, offers eight ideas for jump-starting your marketing program:

1. Determine your firm’s ideal client and go after more clients like it.

2. Identify your firm’s specialties and brainstorm how you can sell these services to new markets.

3. Train your professionals to identify cross-selling opportunities and to offer additional services to clients in an intelligent manner. An easy way to identify cross-selling opportunities is to use a spreadsheet that lists clients down the left-hand side and services across the top.

4. Conduct a client satisfaction survey.

5. Meet with your referral sources regularly, whether you have an established network or are trying to build one.

6. Have every professional join one trade or civic organization to enhance the visibility of your firm while learning about a particular industry or giving back to the community.

7. Review your marketing budget and look for ways to cut back.

8. Write a marketing plan that includes (1) mission, vision, and core values, (2) situation analysis, (3) goals/objectives, (4) strategies, (5) implementation, and (6) budget.

For the complete article, click here.

From Capstone Connection, Marketing Ideas and Strategies for CPA Firms, Capstone Marketing, www.capstonemarketing.com, April 21, 2009, “8 Ideas to Jump Start Your Marketing Program.”

Read the rest here: Is Your Marketing Program Stalled?.

25 Years in Accounting Technology: Before Excel, when Lotus 1-2-3 was King

The magazine Accounting Technology ends its 25-year run this month, with editor Bob Scott writing the swan song.

It’s a great history of the profession, and its innovations. Here are the top-selling products from July 1984:

Accounting Software: BPI, (later purchased by Computer Associates) 15 percent; Peachtree, 5 percent; State of the Art, 5 percent; Open Systems, 3 percent; Star, 3 percent. Other, 51 percent.

Word processing: Micropro (WordStar), 29 percent, Apple; 13 percent; Software Publishing (PFS: Write), 3 percent; Perfect, 3 percent. Other 29 percent.

Database: Ashton-Tate (dBase), 25 percent; Software Publishing (SuperBase), 14; Apple, 8 percent; Stoneware, 7 percent. Other, 31 percent.

Spreadsheet: Lotus, 31 percent; Microsoft 17 percent; Visicorp, 10 percent. Other, 29 percent.

Personal computers: Apple, 25 percent ; IBM 15 percent; Kaypro, 9 percent; Sanyo, 5 percent; Commodore, 4 percent. Other 22 percent.

Read the rest at What Has 25 Years Changed?

Personally, I’ll miss Accounting Technology and The Practical Accountant, which is also folding. I was their publisher and group vice president until 2000, along with Accounting Today and what is today WebCPA. Congratulations to Bob SCott, Howard Wolosky, Jeff Stimpson and Stuart Kahan for many years of hard work, dedication and great journalism.