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Media
Seattle
Times - March 8, 2000 When the Washington Software Alliance (WSA) put out the book "Beyond Code" in 1995, it intended to give entrepreneurs basic tools to start a software company. Doesn't seem that long ago, but the guide-to-all-things-new contained no mention of the Internet. "By 1997, when the Web was pretty much into a good early swing, we realized the whole thing had changed," said Gary McAvoy, a former board member for WSA, the Bellevue-based advocacy organization. McAvoy in late 1998 began assembling a group of experts to write a second book, this one centered on the explosion of high-tech companies in the state. The culmination of their efforts: "Cracking the New E-conomy: Business Tools for the Entrepreneur," edited by McAvoy (Washington Software Alliance, $75). The college-like text covers everything from software costs and international distribution to backing out of a deal and creating a fiscal-year forecast. It also contains sidebars from chief executives in the industry. Ron Kornfeld, founder of Harmonetrix, a Seattle-based business incubator, wrote a section on creating a business plan. "The biggest challenge, really, with going from an idea to a real company is eliminating delay, is not having false starts," said Kornfeld, whose former company, Normandy Partners, worked with Internet start-ups. "When you get it right the first time, you do things inherently quicker." Bill Baxter, president of Bellevue-based Bsquare and a contributor to the book, said it also has pragmatic advice for those who have never run a company before. "I have an engineering background, not a business background," he said. "All of the things relating to business - accounting for the company, human relations, partnering, legal matters - those sorts of things didn't come naturally." Among the book's points: Negotiate a buyout clause upfront that specifies your right to terminate a lease, plus time frames and termination costs. A right of refusal on adjacent space will allow a business to take an existing tenant's space once they leave - a way to expand without relocating. The Washington State Industrial Safety and Health Act requires a company to have at least one employee present, at all times, who is first-aid certified. If a business has 11 or more employees, it must designate a safety committee. For office space, Microsoft sets the standard for software companies in this category, according to the book, providing their programmers with private offices. But other software companies are beginning to favor the "team concept," with open cubicle workstations that promote communication and productivity. The upside to selling the team concept? It costs 30 to 50 percent less. Briefly: A new CB Richard Ellis study found that the Eastside real-estate cycle may be slowing. In 1999, the company's Real Estate Demand Index -- a summary of the average asking lease rates for Class A, B and C office properties, multiplied by occupancy levels -- declined four points from 1,408 to 1,404. Although vacancies
remained tight in the fourth quarter at 3.93 percent, with 1.4 million
square feet absorbed, the study said the Eastside's slower growth is a
reflection of the overall regional economy. With 3.8 million square feet
of office space under construction, expect a slight rise in vacancies next
quarter, the study said.
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