Networking Can Help Get an Errand Service Up and Running

Q: I would like to start my own errand service. Can you give me any ideas for running this type of business? Are there any organizations I could join that would help me out?

--Gregory J. Spencer,

Rosamond, Calif.

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A: Starting a business can be exhilarating and challenging. Many questions will arise as you get started, but there is a powerful tool you can use to get answers to those questions. That tool is networking.

Begin by networking within the errand services industry to get information about start-ups and industry trends. Contact people who do what you want to do but who operate their businesses elsewhere. To identify these companies, try the Yellow Pages directories. Visit a library and check the Encyclopedia of Associations to determine whether an industry organization exists. Check the Internet for articles about this service.

Membership and active participation in business, civic/charitable or special interest groups (such as tennis or ski clubs) provide myriad opportunities for networking and gaining visibility for your errand service. Knowing who your target market is will help you decide which organizations to join. Attend meetings of a number of groups before making a membership commitment.

For example, if you determine that home-based business owners can use you to run to the printer, office supply store, post office, dry cleaners or supermarket, you’ll want to explore the local Chamber of Commerce, Rotary and networking leads groups. Contact the American Assn. of Home-Based Businesses at (800) 447-9710 for information about that group’s local chapters.

But just attending meetings isn’t enough. Think about becoming active on a committee or project where you can build relationships and create alliances with other business owners, exchange referrals and marketing ideas, ask to leave fliers or business cards with retailers and offer to send them referrals.

Before you attend a meeting, know whom you want to meet and what you want to accomplish. Along with distributing printed business cards, prepare a “verbal” business card--be able to describe the benefits of your service in 30 seconds. Listen and learn from prospective clients you meet.

--Dee Helfgott,

Dee Helfgott & Associates, business coach and author of “Network Smart!” West Los Angeles

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Q: I am looking for a resource where I could find out about protective statutes for independent sales representatives. I know that these statutes, which protect sales people from liability, vary from state to state. Can you give me a lead?

--Eric D. Kauffman, research consultant

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A: The Manufacturers’ Agents National Assn. (MANA), based in Laguna Hills, publishes a manual listing state laws that apply to sales representatives, which are generically called “commission protection acts.” I edit the manual and update it quarterly so it remains current. You can order the manual, State Laws, Manual II, directly from MANA for $114.50. Call (714) 859-4040 for ordering information.

The other alternative is for you to find a law library that carries the state statute books from every state and look in the indexes under commission protection acts.

--Gerald Salmen, national counsel to MANA, Cincinnati

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Q: Do any of your experts know of resources for independent start-up record labels? I have explored recording industry associations and performing rights societies, but I was wondering if there are opportunities to pitch my business plan to investors and distributors that specialize in this type of business.

--James Sumbi

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A: The short answer is no. I do not know of any group of venture capitalists that would take a chance on funding a start-up recording company--especially when they can make 20% in the stock market! Anyone who would take a risk by funding you would want your arm and leg too.

However, if you have a promising artist or plan to produce music that fills a particular niche, your best bet is to try to attach yourself to an existing company. That is how rap music basically got started, with independent garage labels that produced music cheaply, saw it catch on and then got distribution agreements with large recording companies.

If you are working with some talent, I would advise you to produce some low-budget initial recordings, put out some CDs, and then distribute them like crazy until you attract attention from one of the bigger labels, which might agree to work with you if you have something it feels is promising.

--Mary Yoel, senior vice president/assistant manager, entertainment division, City National Bank

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If you have a question about how to start or operate a small business, please mail it to Karen E. Klein in care of the Los Angeles Times, 1333 S. Mayflower Ave., Suite 100, Monrovia 91016, or e-mail it to Kklein6349 @aol.com. Include your name, address and telephone number. The column is designed to answer questions of general interest. It should not be construed as legal advice.