Galesburg Register-Mail from Galesburg, Illinois on July 26, 1973 · Page 16
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Galesburg Register-Mail from Galesburg, Illinois · Page 16

Galesburg, Illinois
Issue Date:
Thursday, July 26, 1973
Page 16
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16 <k>le*buro Reoistef-Mail, GolesbufQ, HI. Thursday, July 26, 1973 Things To Consider When Starting (Business Editor) So you want to go Into tfusi* hiss foryourself. You're get- tlnf tired of the same old 40- hoUf-e-wcek ripoff, and the boss has been getting on your nerves lately. Besides, you're UrraerpaKi, overworked ana no one appreciates (he Job you're doing. Why not Mart your own business? EVERYONE at one time of another kicks around the idea of going into private business. While the profit motive is usually the foremost eon' sideration, there's a certain glamor to owning a business and being your own boss. You give the orders and decide who goes to lunch at wCiat v time. There are tax shelters and extended coffee breaks, not to mention the monthly out-of-town business trips. With this in mind, a local citizen, Caivin God, strolls Power Company Appealing Recent ICC Rate Order ::, Illinois Power Co. is appeal ing to the courts a decision by the Illinois Commerce Commission to deny a rehearing aid reconsideration of a recent rate order by the IOC. Earlier this year, Illinois Power Co. requested a rate in crease which would bring the company an additional $24 million revenue. The ICC approved an annual increase of $8,700,000 in electrical revenues based on -1972 usage. Illinois Power contends tha "the increase will not meet the company's financial needs. Also questioned in the rehearing request was the ICC's use of an original cost base in its computations. That concept and other matters in the order will now be tested in the courts, according to an Illinois Power Co. spokesman. Tiie suit is being filed in the ^Circuit Court for the Sev enth Judicial Circuit in Springfield.^ Galesburg Agent Is Honored For Sales, Service William A. Armstrong, 1117 Hawkins^n Ave., an insurance representative with Combined Insurance Co. of America, has received an award for outstand .ing sales and service. Michael Hester, regional sales manager, said Armstrong won the SIP Pearl Award in the W Clement Stone International Sales and.Management Achievement Club for his work in the company's health income-protection insurance program. The international club is named afr ter the company's founder and board chairman. The combined group of companies specialize in non-can­ cellable accident and health income-protection and life insurance. Last year the group paid benefits in excess of $93 million. Midland Coal Production Figures Given Midland Division of American Sineitlng and Refining Co. reported, that it produced 151,329 tons of coal in June. With its processing plant located in Victoria Township, Midland mined 94,349 tons in June 1972. Over-all last month, Illinois mines produced 4,586,375 tons of coal, according to Russell T. Dawe, director of the Illinois Department of Mines and Minerals. Perry County led in production with 863,514 tons; St. Clair County was second with 553,880 tens, and Jefferson County was third with 495,678 tons. Nineteen underground mines accounted for 2,356,333 tons in June, and 27 strip mines accounted for 2,230,042 tons. So far this year, Illinois mines hove produced 30,479,757 tons of coal. According to the department's casualty report, there were 43 accidents in June. No fatal accidents were reported. Three mines in Fulton County produced 327,635 tons of coal in jurieT while Stark County's only mine produced 38,207 tons. Peoria County, with three mines in operation, produced 197,644 tons last month. I into a Galesburg bank and announces that he's going to make a mitton dollars by opening a Shoe store somewhere between Prairie and Seminary streets. CALVIN is going to revolutionize the business by giving green stamps and goid-piated shoehorns with every purchase. Specializing in farm and work shoes, our aspiring young entrepreneur plans, as an added feature, to hire shapely young giiis decked out in hot pints and go-go boots. "Not a bad idea, Mr. Clod," says the friendly bank president "But do you realize thai there are already 10 shoe stores on Main Street. No, you didn't stop to think of that. Well, do you have any suppliers lined up? What do you mean 'what's a supplier.' " SLOWLY the bank president] begins to lose his pa­ tience, "fell me this, Mr. Clod," he continued, "do you have any money?" As Caivin spurted out something about one good idea being worth $10,000, the president said there was another bank down the street that definitely would be interested in becoming a part of his operation. WHILE MOST good businesses, are built on dreams, they grow and prosper through hard work and sensible planning. Owning a business doesn't mean instant success and financial security. More accurately, owning a business involves the risk of losing everything you have. The business world has often been described as a jungle, and it's all too common knowledge that "only the strong survive." But under the American free enterprise system, everyone has the right and opportunity to go into private business. Business And Industry Named District Manager Walgreen Co. has announced the promotion of Jerome B. Karlin, registered pharmacist, to Illinois district manager. Walgreen Drug Store, 156 E. Main St., will be among those stores under his supervision. Karlin joined the nation's largest drug store chain in 1963 as a clerk. He qualified for the Walgreen Employe Pharmacy Study Program and graduated from the University of Illinois in 1965 with a bachelor of science degree in pharmacy. Karlin was promoted to assistant store manager after graduation and later became a store manager in the firm's chain. Karlin entered Walgreen's Manager Training Program early this year. Completes Drug Seminar Gary Atto of Galesburg Cottage Hospital recently completed a 2-day seminar on the clinical implications of drug evaluations conducted by the St. Louis College of Pharmacy. The program was arranged and directed by Dean Byron A. Barnes. Atto was one of more than 150 pharmacists from Illinois and Missouri who took part in the seminar, which was sponsored by Schering Corp., international pharmaceutical manufacturers. The program dealt with the increasing complexity of pharmaceutical products and the key role of the hospital pharmacists in providing professional evaluations for their safest and most effacious use in hospital settings. The seminar was held at the Marriott Motor Hotel, St. Louis. New Owner of Bonanza Russ Sexton, 257 E. Water St., is the new manager and owner of Bonanza Sirloin Pit, 1349 N. Henderson St. Sexton purchased the restaurant last month. Prior to that, he had been an employe at Bonanza for more than a year. , Sexton said business at the eating establishment has been good. "In fact,' it's been getting better every week," he said. Bonanza Sirloin Pit employs 18 persons. Attend Annual Convention Mrs. Frank Skrivan and Mr. and Mrs. Walter A. Scott of Skrivan Quality Gift Shop, 325 E. Main St., returned recently from Dallas, Tex., where they attended the 24th annual Christian Booksellers Convention. More than 2,500 exhibitors and dealers attended the convention. Astronaut James Ervin was among the guest speakers. New religious items, books and Bibles were featured at the convention. In addition, many persons—including the Galesburg group-^attended workshops. Nursing Home Underway Construction of a 182-bed nursing home on Carl Sandburg Drive is underway. The nursing home, called Galesburg Convalescent Home, is being built by Carlson Construction Real Estate Developers of Dixon, N. D. The building, which will be located on Carl Sandburg Drive approximately 400 feet from Seminary Street, will be a single-story brick structure. The 48,000 square-foot building is expected to be completed in nine months. Area Couple Wins Trip Roger and Lois Olson, owners of Olson Electric, Altona, have won a trip to Hawaii by selling RCA and Whirlpool appliances. The trip will include days on the island of Oahu and Maui. Company Holds Meeting Mr. and Mrs. Robert Buckman, Maquon, recently attended Jacques Seed Company's 12th annual sales meeting held at Dubuque, Iowa. District sales managers and area supervisors attended the meeting. In addition to general business discussions, the group journeyed to Cuba City, Wis., to view the firm's new expansion program- Jacques Seed Co. executives told the group that the past year was the most successful one in the company's history. Record Sales, Earnings Bonanza International, Inc., operator and franchisor of the nationwide chain of Bonanza Sirlon Pit restaurants, tody reported record sales and earnings for both the first six months and the second quarter of the year. Net earnings before tax-loss credits were $504,000, up 128 per cent over the $221,000 figure for the same period last year. Bonanza president Webb Lowe said revenue—which consists of sales by company-operated restaurants, rentals and royalty fees and other income—rose 130 per cent to $11.8 million for the quarter and 131 per cent to $21.3 million for the six months. This compares with 1972 figures of $5.1 million and $9.2 million, respectively. If this is your goal, here's a few things to remember: — KNOW something about the type of business you plan to go into. The more you know the better. While a business background isn't always necessary, it certainly helps when talking money with banks. — Decide on a store location after checking out competition in the area. Try to locate near steady, if not heavy, flow of traffic. — Line up suppliers and establish credit terms with them. As a drawing card, it is particularly helpful to have State's Retail Sales Picture Good: Report Illinois' retail sales picture for the first half of 1973 is good, according to the Illinois Retail Merchants Association's monthly performance comparison report. Figures summarizing statewide sales for all merchandise lines indicate an increase for June 1973 of 13 per cent over the same month one year ago. Averaged sales for the first six months are also in a favorable position, being up 11 per cent over the same time period in 1972. In the merchandise line division, shoe merchants showed the biggest increase for the month of June. Retail shoe sales last month were up 18 per cent ever June 1972. The six-month comparison put this division's sales 12 per cent ahead of last year. Department stores, hardware, appliance and home furnishings divisions all reported gains of 12 per cent in June over the same month a year ago. The divisions also reported sales increases of 10 per cent for the six-month period. Sales for firms in the specialty and food group were up four per cent in June and compared favorably in the year-to-date group, being up 13 per cent. a nationally advertised brand product for sale. - DETERMINE what kinds of equipment will be needed and how much inventory to begin with. '-Study the labor market and decide how many em­ ployes you need to help run the store. — Don't forget the rent and utilities! -^Decide if you want to be in the credit business, that is offer monthly payment plans to customers. Businesses can defer this to national groups, such as Master Charge, and avoid a host of headaches. PROBABLY the most important thing to do when starting a business is determine how much money will be needed to get the store into operation. Once this has been determined, it's essential to set up a good accounting system. While the average person can keep his own books, it's important to keep them up to date so he knows how much it costs him to stay in business. In addition to numerous hidden costs, there are many federal regulations which have to be met. ANOTHER THING to consider is this: How much cash (working capital) wiH you need on hand to meet daily expenses? The difference between current assets and current liabilities is working capital. Most bankers feel you should try to have at least as current lutibiMiet. Edwin Hick. aatfatent .MM president at First Galeebunj National Bank and Trust Co., believes "moat people go under because they didn 't know what their coata were." He went on to say that ethers fail because «ney are undercapitalised in the beginning, poor management ana changes in the pricing structure. "A BUSINESS that can get through the first couple of years should make it," Hick said. "Let's face M, there are very few instances of a busi- r.ess becoming successful overnight. It takes a lot of hard work and patience. In the beginning, you'll work longer hours, have more com' mitments and probably not make any more money than you were at your old job," Hick said. "But on the other hand, wmn you own a outness, you're working for\ yourself . . . there's unhmited potential for advancement. If a person has Investigated the business opportunity and has money that he's wUUng to nak, the hank wiH usually go along. After all, we're in business to make loana. "After we carefully study the situation," Hick continued, "the bank makes an educated guess. Sometimes they're good guesses, and sometimes they're bad guesses. But they are educated guesses." WouM Hick advise local citizens to go into private business? "From a banking standpoint, I would encourage those people who have bettor than a 50 per cent chance of becoming successful," Hick said. "But from a personal standpoint, I've seen enough businesses to know I'm content working for someone else." BN Reports Drop in Earnings Burlington Northern Inc. today reported second-quarter consolidated net income of $3.2 million, compared to $13.8 million a year ago. The drop in earnings came despite a seven per cent increase in consolidated 'transportation revenues during the period, and was anticipated in a statement last week by Louis W. Menk, chairman, who said that second- quarter earnings would be sharply reduced by unusually high expenses. Consolidated net income for 1973 Car Won By Local Mail Weaver-Yemm Chevrolet's annual summer sales campaign ended last week with a new car and several paid vacations being won by Galesburg residents. The local Chevrolet dealership, located at 2195 N. Hender' son St., was offering a new car in connection with its sales promotion. The car, a 1973 Vega, was won by Fred Welch, 1470 E. Knox St. During the campaign, which lasted from May 1 - July 20, Weaver-Yemm Chevrolet sold a record 723 cars. Dick Yemm, a partner in the dealership, said today that the local sales con^ test was held in connection with nationwide contest. Weaver- Yemm Chevrolet finished first in regional competition. Mick Hillier was the top salesman during the promotion, and Ken Harmison and Rod Godsil were the leading managers. As resuM, all three men and their wives have won trips to Bermuda. Also part of the contest, Yemm won a vacation trip to France and Vienna. the first six months of 1973 was 116.9 million, compared to $20.3 million for the same period a year ago. Transportation revenues in the second quarter rose from $278.5 million to $296.0 million, and for the six-month period from $528.8 million to $587.1 million. Transportation costs and expenses for the second quarter increased from $263.4 million to $296.3 million, and for the six- month period were up from $502.3 million to $570.0 million. Menk's earlier statement at­ tributed second-quarter expenses to higher wage costs not offset by rate increases, an accelerated maintenance program and flood repair costs in the Mississippi and Platte river valleys. "Our disappointing second- quarter results underscore the critical need of the entire railroad industry for adequate rate increases, and for the Interstate Commerce Commission to act more promptly in granting increases, especially in the face of continually spiraling wage costs," Menk said. Take Part in Drive Participating in the annual kickoff and membership drive of the Western Illinois Chapter of the American Institute of Banking are, from left, E. K. Condon, past president of the chapter; Pauline Sollenberger, secretary; Chris Jordan, president, and Dr. William D. Masters, director of vocational, technical and adult education at Carl Sandburg Junior College. The meeting was held Wednesday night at the Sheraton Motor Inn. He added that some of BN's western lines are being rebuilt to meet the requirements of increasing coal traffic moving in 10,000-ton unit trains. "This is a costly but important long-range investment for Burlington Northern," he said. "From 1968 to 1972, our coal increased from 15.5 million tons to 25 million tons, and the big growth in low : sulfur western coal is still ahead. We expect BN's coal volume to reach 55 million tons by 1977, and 90 million tons by 1982," Menk predicted. SBA Approves Record Loans Robert A. Dwyer, midwestern regional director of the Small Business Administration, reported today that a record- breaking $95,759,794 in loans were approved by the SBA in Illinois during the 1973 fiscal year. The total — the result of 9,997 SBA-approved loans — exceeded by 52 per cent the previous record of $62,961,987 established in 1972. In that year, 993 loans were approved. According to Dwyer, 6,528 of the 1973 bans — totaling $69,840,043 — were approved by the SBA's Chicago office, which administers activity in the 36 northernmost counties of Illinois. The remaining 3,469 loans for $25,919,751 were approved by the agency's Springfield office, which administers activity in the state's remaining 66 counties. Dwver added that statewide 8,858 loans for $23,727,641 had been made in connection with the SBA's role in providing relief aid to victims of disasters,

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