Tips for covering small businesses

By David Hayes

Kansas City Star

JoNo 10-Q, no 8-K, no proxy. In fact, few -- if any -- public documents at all.

Covering small business presents its own set of challenges: Finding interesting companies to write about; avoiding puff pieces when few documents or competitors are available; and dealing with business owners who only are interested in talking when the news is good.

Marcia Pledger (left) of the Cleveland Plain Dealer, Brian Kaberline of the Kansas City Business Journal, Kelly Spors of the Wall Street Journal and moderator John Corrigan of the Los Angeles Times talked about those challenges during a session at the Fall Workshop of the Society of American Business Editors and Writers.

The four offered advice and tips for those who cover small business, an industry that is composed of 70 million workers and 99.7 percent of all U.S. employers.

Tip one: Turning a potential promotional piece into a news story you can feel good about.

--Make it relevant. Don't rely on pitches from public relations firms, Spors said. Most of the pitches, she said, "aren't telling me why other small businesses should care about this story. I look for interesting stories that a lot of businesses care about." Pledger's take: "I always want it to be something people can learn from."

--Like a CFO scoping out an acquisition candidate, do some due diligence. Kaberline suggested viewing the company the same way you would if you were going to invest. After all, he said, you're investing time and newsprint. "We all know the stats on the failure rates of small business." Kaberline suggests staying away from companies that haven't been around for at least six or nine months. Corrigan suggested requiring companies to provide basic revenue information, or skipping the company.

--Talk it out. Talk extensively with the owner and employees, if possible, Spors said. "Talk about the good and bad together, don't just focus on the good."

--Check court records, property records and local tax records.

--The Plain Dealer has developed a following ­­- but rarely companies offering to cooperate -- for a monthly column on "My biggest mistake and how I fixed it," Pledger said.

Tip Two: Finding sources. Or, the small business owner as hostile witness.

--Small business owners like to be seen, especially when the news is positive, Kaberline said. When seeking sources for a trend story, for instance, "tell people it's better to be seen as an expert sometimes than the star of a feature."

--Sources won't come to you. "I network to death," Pledger said. "I network with lots of business groups. Business incubators. I just try everybody."

--Don't forget the tried and true. Talk with business owners you've dealt with before, both for story ideas and to find sources for trend stories. They might not be the perfect candidate, but they might be able to steer you to one that is. "A lot of my best story ideas come from come from small business owners and entrepreneurs," Spors said. "Often it's while I'm working on another story."

--Use your own resources. Kaberline and Spors said their newspapers sponsor business awards and business networking events that can open up sourcing opportunities.

--Don't forget to have a good breakfast. Kaberline said he urges his reporters to attend breakfast gatherings held by local industry groups. "We've got so many shoe leather reporting opportunities that other reporters don't take advantage of."

Tip Three: Hot topics.

--How health care economics is affecting small businesses.

--The affect of rising transportation and energy costs. "Don't just talk about a business grappling with rising process. Find a business that's found a way to cope," Spors said.

--How taxes and tax reform programs affect small business.

--Watch for small businesses trying to expand globally.

Posted Sept. 9, 2008