Each one depends on making small and subtle changes to stay alive. The tightrope walker must be constantly aware of the environment around them and react quickly to complete their walk successfully. Most likely their changes are only minor ones as a major change indicates a major problem  – something you don’t want when you are high up on a rope. Likewise, for the small business owner must constantly be prepared to make adjustments -for example price increases from suppliers or to customers must be carefully calculated. Too big an adjustment and it’s a big problem, not enough and you may fail.

In so many other areas the same process is always in play and in every instance, the consequences are same. Make the adjustment, look around to see that you are still upright and moving in the direction you want, take a deep breath and take the next step. Remember, too, don’t look down or back. Focus on what is ahead of you.

Today in the US our economy is a mess.  Unemployment is as high as it has been in years, banks and large companies have collapsed in recent years. Even though it has affected all of us to some degree, in reality more are less affected than harmed.  So it appears the odds are in your (and mine) favor of you (us)  not being the victim of some tragedy.

It seems with every tragedy opportunity presents itself.  Just look at the security industry after 9/11, or changes to the automobile as a result of the “gas shortages” and dependence on foreign oil.

As we view various chaotic events unfold in the world or our life, do we see opportunities that we can take advantage of to change our lives for the better?  Or, do we view these events as “doom and gloom” for our world?   When you see chaotic events whether in the world or in your life, look for the opportunities to better yourself. Remember the odds will be in your favor.

What about, as suggested by Professor Bates, we respond with “yes….and…..”? This approach acknowledges what the other person is saying (a positive) and offers to convey something new or different (another positive). In other words, the proverbial “win, win” situation which we like to see in business.

Research from the SBA and U.S Census Bureau indicated that nearly 80 percent of the businesses in California have less than 10 employees. The U.S. Census Bureau added that small businesses (Sole Proprietorships, S-corporation and home based businesses) contribute nearly $3.0 trillion to the US. economy.  It seems that more and more people are forsaking the corporate ladder for a more simple lifestyle and career.

Be that as it may, going small has it advantages.  Some of them are: (1) it enables the owner to be more creative, (2) the owner can react to market changes more quickly than a larger company, (3) it offers real job security, (4) it offers freedom – to live and work where you want, and you don’t have to work 9-5 five days a week if you don’t want to and the business warrants it,  (5) you only have you and your customers/clients to answer to, and (6) you can fire (I prefer the word graduate) a nasty client anytime you want.

Next time you think Big is better, you may want to think again. Staying small has it advantages. Oh! and being small doesn’t prevent you from making a big income.  I have clients that prove that.

Over the past few days I have heard my wife often say about one of her mother’s notes on a piece of paper, or in a notebook or tablet “I wish I knew what she was thinking” or “I wish I knew when she wrote this”. You see, my mother-in-law left few notes or dates on the many years of materials she reviewed, researched and saved for some future article or project. So we see her as an unfinished work – full of loose ends.

Think about the loose ends or uncompleted tasks you have on your desk or in your files. What would you want your business partner, associate or friend to say about your “loose ends”?

1. Absence of a long-term vision for your business: Without such a vision, it is easy to stray off-course, become bogged down by the daily details, and forget where you are going. In the past, most businesses did a five and ten year plan but in today’s environment a one to three year plan is more practical. However, you should never quit thinking about the future of your business and how you intend to shape it to fit your long term needs.

2. Procrastination: When you own a small business, you will find that tasks and paperwork pile up like snowdrifts on your desk. Putting them off is like piling up debt; eventually, they could overwhelm you. Set aside regularly scheduled time each week to tackle these tasks and paperwork. If necessary make an appointment on your calendar but follow through follow.

3. Ignoring the competition: If you choose to ignore your competition, you may not recognize new products available to you, be aware of accurate pricing for your own product, or you may become overconfident in your ability to determine customer desires.

4. Sloppy or ineffective marketing strategy: It’s crucial that you have a plan and execute it well. Marketing keeps your products selling and money flowing into your business. (see Developing a marketing plan)

5. Ignoring customer needs: Once you attract customers to your business, you’ll have to work hard to keep them — or they’ll find someone who will provide for their needs as well or better than you do.

6. Incompetent employees: These individuals can cause your company to lose customers and profits. A good philosophy to follow is to hire for attitude and train for skill.

7. Lack of business skills: You may be great at making hats or painting houses or fixing computers, but that’s not enough. Develop sound management systems that aid you as you run your business, so that you can concentrate on growing your business.

8. Poor location: Try to find the most appropriate site for your business, for example, a retail site on a high-traffic street or an office in a well-known building.  If you’re developing an e-commerce business online, make sure your Web site is easy to find. Choose a name that is easy to spell and remember, or find ways to link to related businesses that will help drive traffic to your site.

9. Inadequate capital: Many businesses start with too little money. Make sure you consider ALL of the costs to cover the start-up phase and, depending on the type of business, funds for a minimum of six months to one year So many businesses such as manufacturing will require more than one year of funding to reach a stabilized cash flow.

10.  Cash-flow problems: You need to know how to track the money coming into and out of your business. Even a profitable venture will founder if it runs short of cash. (See article Protecting Your Cash Flow)

11. A closed mind: Everyone goes into business with some preconceptions. Don’t be surprised if you find that many of yours are wrong. Look for mentors who can give you advice, and run your ideas by them before you make important financial commitments. Don’t just create a job for yourself, think about how to create a better way of doing something that will last long after you do.

12. Inadequate planning and standards for performance: Start with realistic but precise goals for your firm, including deadlines. Then write down the steps you can take to meet those goals, set deadlines for completing those steps, and document the level of performance you expect in achieving those goals. Communicate the goals to your employees, and encourage them to buy into your goals so that they can help you to accomplish your goals. Their success depends upon the success of the overall organization, and you need to help them realize that.

The increased stress from illness affects an owner’s performance and can lead to poor results for the company.  In some cases times when the owner is out ill there is no revenue because they are the sole source of revenue. This also puts pressures on family finances and alters ones lifestyle.   So again, what can one due in times like this? Or, more importantly how can one prepare to keep their business going?

As strange as it may seem, an illness can provide us an opportunity to reassess our true values. It can remind us that as an owner we are not the “end all, and be all” of our business, but we need others to help us in developing our business and in times of need.  While we’re healthy we should put a plan in place to replace us in the eventually severe illness should strike.  Waiting until an illness happens, may be too late.  Develop a succession plan now.  It could be one of the best things you’ve ever done for your business.

Here’s a saying I picked up on the course that I like to keep in mind when faced with these and other issues: “One shot at a time, one hole at a time, one course at a time.”  How does this apply?

“One shot at a time” simply means you’re only as good as your last shot.  Often times I’ll make a bad shot, get upset with myself and allow it to carry over into my next shot which I make into another bad shot.  When I realize that once I’ve make a bad shot I cannot redo it, I then  focus on the next one which I usually hit well.  In dealing with various business issues we must realize we didn’t get into a bad situation “overnight” and we are not going to get out of it “overnight”, we need to focus on what we can do that will lead us out of our “bad situation.”.

“One hole at at time”.  If we’ve had a bad score on a hole; we must forget that hole and concentrate on the one we’re playing now.  That same is true with business.  Again, forget about the bad situation you are in and try to focus on “playing” your next move to improve your situation.

Finally, “One course at a time” simply means that if you’re having a bad day on the course you have to forget it and concentrate on playing well for whatever number of holes you have left.   Try to finish your round as positive as possible.  Same when facing a bad  business situation.  If sales are down for the year, and you only have a couple of months left; try to concentrate on what you can do to finish the year on a high note.  This can set the stage for getting the next year off to a good start and hopefully better profitability.

One of my clients, a golfer, is following this saying, and it seems to be working for him.  Three years ago his business lost nearly $300,000. Naturally, he was upset, but set about to change things ”one at a time”.  Last year he lost nearly $30,000 and this year is at a slight profit heading into his last month of the year.  His profits are up, yet overall gross sales are down.  He is looking at next year to being a better year due to strategies he has implemented the past two years.

How about you?  Keep this saying in mind, even if you are not a golfer.  Hopefully it will help.

A week ago, my daughter  attended a meeting with her Director and collegues to review upcoming projects and receive assignments to manage those projects.  She went into  the meeting expecting to receive 5 or 6 projects and came out having received 16 projects to manage.  Great for job security but hardly a stress reducer as a single mom with two small children.

I had three tips for her on how to manage her time without going crazy.  Maybe they will help you.

Tip 1 – Do paperwork at home and people work at the office.  Trying to get paperwork done at the office is often a frustrating task. Phone and people interruptions often fill the day causing additional frustrations and sometimes poor quality work.  While at work focus on your people, leave your paperwork for when you get home.

Tip 2 -  How do you get your paperwork done at home, with spouse and children around?  One suggestion is to work later at night, after the kids have gone to bed.   Generally this is a time for no phone calls, no TV (not much on worth watching anyway), and no employees, bosses, etc. to drop in your office to discuss their issues. Those that I know who do this (including yours truly) get more accomplished in far less time.

Tip 3 – Handle the most difficult or urgent tasks only, and either delegate the rest or save them for a less demanding time in your schedule. Developing a check list and systematically working through it may make you feel like you’re getting a lot done, but you may be doing it at the expense of finishing the most difficult or urgent tasks.

Implementing these tips may not be easy, but with time they should help you accomplish more.

As customers, we know how we like to be treated by business owners and other service providers. But as business owners or service providers, are we as sensitive to how our customers would like to be treated by us? Are we really conscious about the experience we deliver to each of our customers, clients, and guests? Do we know why they are doing business with us, or do we even care as long as they continue to be a customer?

Needless to say this is not a site for techies, but for many of us who forget or never really have learned some pretty simple things, it works. I suggested this to a couple of other people who had the same reaction. So, as if often the case, it’s the simple things we learn that can help us. I wish they would expand into the world of Starting a Business but if they did, then my partner and I might not be having as much fun helping people as we are now.

I do recommend you give this a try and if you are a younger/older, somewhat knowledgeable person, I would bet you know someone who could use it. BTW – to check a flight quickly, just go to Google and type in the flight number. Learing can be fun and easy.

Here’s why I say that.  Last May, my daughter was asked to “pinch hit” for her boss and give a keynote address at a conference in Baltimore.  While at the conference she noticed a small ad posted on a bulletin board for a job.  She called the number listed and the person who answered was at the conference.  They got together for coffee and had a casual conversation for about 1/2 hour.  He encouraged her to apply for the position, which she did.

Over three months went by and she didn’t  hear anything.  She was expecting a “Dear John” letter (a rejection letter).  Instead in July she got a call to come from Cleveland to San Diego for an interview.  The person who interviewed her was the same individual (along with his boss) with whom she had coffee in Baltimore.  Seems he was looking for someone to replace him because he was retiring.  The interview went so well that they offered her the job at the conclusion of the interview.

She accepted the job which required a move from the tropical paradise of Cleveland to the frozen tundra of San Diego (smile).   It is a dream job for her in a dream location.  She has been at it for 7 months and her boss, and her boss’s boss, really like her work and she loves what she is doing. She plans to be there for a long time.

So to all you social media folks out there (sorry David – our webmaster) there is a lot still to be said for the old fashioned method of “pressing the flesh”.

It seems in the past 3 years I have received too many calls like this one today.  Most of them have been for individuals who died way too young – some in their 50′s, others in their 30′s and 40′s.  Hard working honest people who lives were  cut short.  Whenever I receive a call like this I,  probably like you, pause and reflect on how short life is and how much I appreciate it.  But it also causes me to look back on my life and ask, “If I had it to do over, what would I do differently?”  Or, “What if” I had done this instead of that, or “What if”, I made this career move instead of the one I made how differently life could have turned out.”

We certainly cannot change the past, nor should we become or stay discouraged by the choices we made.  But “What if” we decided to change our future by preparing for making some changes now.  Instead of putting off starting a business, “What if” we started one now, even part time while we finish out our career, or did a feasibility study for that business idea we’ve  been carrying in our head for the past _____ years.

“What if” we became more proactive about our lives, and decided to take the remaining years we have left (however  how long they may be) and set out to accomplish _________?

VISION: What are your personal goals for starting your business? What do you want to achieve? Can you do something better or differently than the other guy? What product or service will you sell? Where will it be located? Who do you see as potential customers and competitors? Why should they buy from you?

PASSION: What excites you about your business idea? Where did the inspiration for your idea come from? What do you really like to do? What are you really good at? Are you committed long-term to the idea of turning your passion into a business? Are you willing to work long hours each day?

PLANNING: How do you anticipate achieving your vision? How will you know when you are on the right road to your vision? What hurdles do you anticipate you will have to overcome? What are your strengths and weaknesses? What are the opportunities and threats to your business idea? How much money will you need? How will people find out about your business?

PERSONNEL: Do you have a “Dream Team” of individuals who can assist you in achieving your vision? What knowledge or skills do they possess that you can incorporate into your business? Do you have business role models you admire? What traits do you admire about them?

CASH FLOW: How much cash do you need to start and sustain your business for the first three years? Where will the money come from? What is your projected cash flow? How will you monitor it?

HONESTY: Who will you do business with? Why? How do you want others to do business with you? Do you want your customers to continuously come back and refer others to you? How do you plan to keep customers coming back?

SYSTEMATIZE: How do you intend to manage the various components of your business? What systems will you need (i.e.: accounting, internal controls, hiring, etc.) to assist you in operating your business?

CLIMATE: What’s occurring in your industry? What new products/services are your competitors offering? What are the trends affecting your business? How does the global marketplace affect your business?

FEEDBACK: How well are you doing in the eyes of your customers? What do your competitors say? What do you need to change to better satisfy your customers’ needs?  Are your customers contributing value to your business?

INTUITION: Are you listening to your intuition? Are you making money and enjoying what you are doing? Are you working toward the purpose you have set for your business? Are you accomplishing your goals? Is your business going the way you expected or wanted it to do?

Dave, the owner, told me he was going to be seventy shortly and was giving consideration to how to pass along the owneship and work to his sons. I asked what he might want to do if he retired and he wasn’t sure. However, he did tell me what he wouldn’t miss.

He said he gets up every morning at 3:30 AM to come in an get things started and usually works a 16-18 hour day. He wasn’t upset about these conditions but stated them very matter of factly.

After I left the store I began to think about what he said and to realize the sacrifice he makes to be a small business owner. I also began to think about other small business owners I know and to think in terms of what they do to make their products and services available to me. Sure, they do it to make a living and don’t think too much about the sacrifice they make. However, it’s there and I think I’ll look a little differently at those people behind the counter at the dry cleaners, the local hamburger shop, and other local places that I stop by. If they weren’t there, my choices would be a lot more restricted. So thanks Dave for making the effort to get out of bed and make some pastries and coffee for me. Thanks also to those others who take pretty good care of me in more ways than I sometimes recognize.

In reading about this new venture, two comments where made that I would like to recognize. First, Mr. Case noted “America’s story has been forged in large part by entrepreneurs who have, against great odds, created innovative products and services that have changed the world – and created millions of jobs”.

President Obama, who was present at the meeting, said “Entrepreneurs embody the promise of America: the belief that if you have a good idea and are willing to work hard and see it through, you can succeed in this country”.

Both comments are laudable and speak to promise as does the partnership. However, it can only succeed if individuals initiate the effort. Somewhere, out there, a few individuals will have heard these comments and will believe in them enough to make that effort. To those individuals, we should all say thanks. They embody what has made this country work for so many years and will continue to make this counrty what it is – a place for all entrepreneurs.

What if you could “change your game”?  Just go to a website and get yourself changed. If it were that easy we would all do it, me included. Unfortunately it’s a little more challenging than this solution. However, there are any number of websites out there willing to help and many propose to have “the answer”. Like all good things, beware the sales pitch, if it sounds too good to be true, then –you know the rest.

So what do you do if you want to “change your game” and start a new business or change an existing business. There are many useful sites and sources that offer solid valuable help. If only we  knew which ones they were - life would be great.

The good news is you are not alone. If you begin to ask,you’ll find many people are already looking at sites and are willing to talk about them. Also, I subscribe to newsletters for a bit to see if I like what they say. I may go so far as to do an RSS feed if I really like the source.

Point being, no one site can truly change your game, but more than ever today there is a lot of help available. Begin to explore this realm of almost infinite information and you may find the things you need to truly make those changes.

In addition, securing intellectual property rights may play a role in a good business plan, depending upon the type of business.  Generally, intellectual property rights include: patents, trademarks, copyrights, and trade secrets.Patents can protect inventions for small businesses developed around a new product, process, machine, or even a computer-implemented business model.  Design patents can protect new ornamental non-functional designs for new products.

With a trademark, a new business can, in some cases, develop an almost immediate identity in the marketplace for its product or service.  There are different ways of using trademark rights to identify the products or services of new businesses — to develop brand recognition with customers, which can build the good will, and therefore, the asset value of the business.

Copyright rights can be available to those businesses on the creative side– works of authorship such as books, songs, writings, artwork, web designs, and in some cases, computer source codes.

Trade secret protection may be available in areas where not all intellectual property rights are registered, patented, or disclosed to the general public.  These can include proprietary formulas, customer lists, and internal business information.  These can be protected by confidentiality protection systems set up for the particular business.

Each of these types of intellectual property can add important asset value to your business.  For some start-up businesses, your intellectual property can be your biggest asset.  If you are looking for venture capital, a potential investor will initially want to know what has been done to protect your intellectual property.  Therefore, it may be important for a small business entrepreneur to seek intellectual property counsel at an early date so that valuable rights are not lost.  Also, at issue may be avoiding infringement or conflicts with prior established intellectual property rights of others.  For instance, an initial patent search or trademark search may indicate that an idea or trademark name is protectable — or alternatively, that there may be a problem you will need to avoid.

Protecting a firm’s intellectual property rights also can require a lawyer’s drafting a non-disclosure agreement, employee and secrecy agreement, intellectual property provisions in agreements with business partners or outside consultants, and in some cases, intellectual property licensing agreements — especially early-on before unwanted legal entanglements may arise.

Even a short meeting with intellectual property counsel up-front can help set the business owner in the right direction, by answering a few questions and explaining some simple rules that apply to various forms of intellectual property rights that may be available.  This can serve to protect valuable intellectual property assets and save money in the long run.

Seeing what is taking place  in these countries, its affect on the people and businesses,  brings to mind four rights we all have as US citizens in regards to our lives and how they relate to business.  Our government guarantees us: the right to own property, the right to choose a career, the right to start a business (even some that we just as soon not see), and the right to keep the profits from our business.

If tomorrow, you or I decided to open a pizza restaurant we could do that provided we had the capital, and met  local ordinances. You ( not I, I’m a lousy cook) could have  another great way to prepare a pizza and could launch your recipe on the public at any time. You could own the building you’re in as well as the business, and keep all the profits you make.  What a tremendeous blessing!  Not every country in the world allows those opportunities.

So what is our lesson from Egypt and the Middle East?  Appreciate what we have, and take advantage of  the rights we have here.  Let’s make sure we do not allow them to be taken away.  Go business!

In today’s business environment the answer would seem to be “What rules?” Today the first rule seems to be ”look out for number one” or “I got mine, now I’m looking at yours”. We trash talk in sports, intimidate in business and recognize the ones who “break the rules”.

So the question becomes, can you operate a business profitably today following established ethics? For example, can a business person use the “Golden Rule” successfully today?

 Where Should You Start?

Start preparing your business idea by making a list of what you already know and like to do. For example, do you like to work with computers, people, children, or numbers? Do you like to work with your hands or paint? Perhaps something that requires skills in carpentry, masonry work, setting tile, or art would suit you. Do you like to plan parties, cook, travel, write, or do research? Consider the sports or hobbies that you enjoy. How do you fill your leisure time? Do you like to make presentations, do public speaking, teach or train others?

Sometimes it’s helpful to ask for another viewpoint. Check with your friends and family, and listen to what they say you are good at doing.   Don’t worry about creating the right format for your list. Just write down whatever comes to mind. The things you write down here will help you create a wish list of things you might like to try.

 What Are You Passionate About?

Take a look at your list. Now, prioritize it according to how passionate you are about each item.  For example, you may love working with people on an individual basis but not in a group setting. Whenever you have a hard time distinguishing between two items, such as working on a budget or writing sales brochures, ask yourself which item has the bigger “yes” for you.

Look for the Pattern

What has your list told you about yourself? Your list reveals what you really love to do.

Let’s say you enjoy working with people on an individual basis. You could have a business working with individuals as a consultant, party planner, tutor, personal trainer, lifestyle coach, or sports instructor.

Every business requires a unique set of skills and working styles.  By taking the time to think about what your strengths are and where your passion lies, you will have an easier time funnelling your energy into a business that holds your interest.

Whenever I attend a game, my wife and I always plan on getting to the game a couple of hours early and tail gate with friends. It seems to add to the whole ambience of the football experience.  Thinking of this season and tail gating reminded me of an article I once read about a job that I found most interesting and creative.

It was about an individual that made a living attending tail gate parties at various college and professional football stadiums across America during  the football season. He would never go inside the stadium to watch the game, but would remain outside at the parties observing what people were eating and drinking.  Arriving  in his motor home he would be ready to tail gate with the rest of the fans, but with the goal of market research in mind.  Companies actually paid him to watch ( and sample at times) what people brought to these parties.  What types of products did they bring and containers did they use, etc.  Why? To assist  suppliers (like Coa Cola, Frito Lays, etc.) learn how to prepare and package their products to reach this market.

From his research, these giant food companies would develop products and packaging geared toward the football tail gating crowds.  I thought what a way to make a living!    Travel all over the country from week to week and watch people eat. Though it might not set well with my waist line, it sure would be a fun job.

How about you?  Can you think of a creative and fun way to utilize your “skills” to provide a meaningful service to a business? If so, you could be on your way to a whole new career.  One that may even be easier on your waistline.

Mediation can be used to resolve legal, commercial, workplace, community and family matters. Some common examples include:

• Business to business disputes ranging from money owed on goods or services purchased, interpretation of agreements on distribution or selection of product, disagreements regarding product delivered or received, and the like;
• Landlord-tenant disputes, where the terms of the lease may be in dispute, or the parties are unable to negotiate new lease terms;
• Neighbor disputes, where adjacent neighbors are arguing over a noise or boundary issue;
• Family disputes ranging from estate issues to living arrangements.

Parties can mediate a dispute either before it reaches the court system, or as a means of settling an existing lawsuit.  The process can be as simple as one session of a few hours, or multiple days involving multiple parties.

In my next article I will focus on some of the other benefits of choosing mediation as a means of resolving a dispute.

Most of us spend our working years preparing financially for when we retire.  Very few, I believe, spend  much time planning how they are going to use all the “free time” they are going to have beyond those first years of playing more golf or tennis, traveling or spending time visiting the children and grand children, or enjoying volunteering with their favorite charitable organization.

But,  working for intrinsic rewards only, can grow old pretty fast.

How about starting a small business, even a one person business?  Do you have a hobby that you can make into a business?  How about a tourist business involving scuba diving, sailing, nature hiking, or giving lessons in piano, golf, tennis, or teaching a subject you love?  Such activity can keep our minds and bodies active while making the time spent worth it.

Many of us want to feel both valualbe and like we are still contributing to the workforce. If you can’t find a “job”, then go create one for yourself.

As I looked at her business pratices, it was easy to see why she faced such a dilemna.  Large companies have numerous departments that could purchase her product but she was only focusing on one – the one that purchased from her.  I asked her why she didn’t call on the other departments.  She had no answer.  I recommended that she build stronger relationships with whom she is working with in each company to seek assistance in being introduced to folks in other departments purchasing similiar merchandise from her competitors. Doing such a thing never crossed her mind.  It never crossed her mind to strengthen her relationship with her clients.  Unfortunately, she just took their business with her for granted.

Interestingly enough, I’ve come across many business owners over the last 15 years who were guilty of the same thing.  The economy was good so why worry about building relationships, why not just move on to the next company, next sale. etc.  When the economy got tougher, many of these client began to “shop for better deals” and business was being lost.

In todays economy, more and more businesses and agencies are looking to cut costs, and beginning with their suppliers. In some cases, these larger companies are going out to bid, even though they have been with a supplier for years.  Never before has it been so important to not take your current client base for granted.  You need to work it as if they are a new client you are trying to land. Building relationships is where it starts. Having strong relationships can keep you from losing a client(s) and even reduce the amount of cost cuts you have to provide.

Having strong relations with a large manufacture kept me from losing a client once, inspite of strong lobbying to eliminate my company as a supplier.  Building a strong relationship with a potential client (who hated the company I worked for) to landing a very substantial agreement with him.

Don’t overlook building strong relationships with your clients(s) it can lead to an increase in business and ultimately profits.

“What’s life? A magazine

How much does it cost?   It costs 20 cents

But I only have a nickel.

Aw Aw that’s tough”

Indeed life can be tough.

Has life in 2010 been tough for you?  Did you lose a job, your business?  Have serious health problems? Sales way down? Facing bankruptcy?

Thankfully 2010 is behind us and we have a new and bright year ahead. 2011 can be a banner year for us , in spite of a bad 2010 if we want. How?  By planning for it to be a year of accomplishments. Prepare an action plan and follow it.

Business having problems?  Maybe you need to hire a consultant to  take a close look at your business and recommend specifics to help it grow.

Too old in your mind to go looking for a job.  How about considering starting a business.

Set  aside some time (if you haven’t done so) and and prepare an action plan for what you want to achieve.  Then commit to following that plan.   Seek out the resources (a doctor, business advisor, financial planner, etc.)  you need to  help you achieve your plan and go for it.

Stay positive, focused, and determined and life in 2011 won’t be so tough.

Have a Happy, Healthy and a Prosperous New Year!

The book titled, You’re Only Old Once! A Book for Obsolete Children, takes a humourous look ( as only Dr. Suess can) at growing old.  He takes the reader through one’s annual checkup with experts at the Golden Years Clinic from eyesight and solvency tests, to internal tests, and finally to being “properly billed and pilled”.

He suggested buying the book now and giving it to your children when they are 70. I’m not sure many of us will live long enough to see our children turn 70. For me I’d have to live to be over 100 which is a possibility in this day and age of modern medicine, yet perhaps not very probable.

His main point throughout the book is enjoy growing old.  After all we’ve worked hard to get here and gained a lot of wisdom (hopefully) that we can use and share with others.  Why not do so beginning in 2011? Your clients, customers, friends and family will probably appreciate it and prosper from it.

Isn’t almost everything produced righthanded? How about tools, slot machines, frying pans (where’s the pour spout),scissors, can openers, musical instruments, rifles, adding machines, the computer mouse (though my partner switches his to the left side occassional – probably a wanna-be lefthander), most lined tablets (see where the margin is), school desks (major reason I didn’t get all A’s), and even merry go rounds(where  they put the brass ring so that you have to use your right hand to grab and throw it.).

Maybe the reason so much “stuff” produced is righthanded is because only ten percent of the population is lefthanded; so claims (he thinks) James deKay in his ode to lefthander’s, The Lefthander’s Handbook. There are supposed to be over 20 million lefthanders in the US!  That’s a good size target market.

Maybe it’s time to produce more products for lefthanders.  We have lefthanded saws for the lefthanded carpenter why not left handed school desks (maybe test scores will improve), or computer keyboards (look where the calculator is located).

It is said entrepreneurs see opportunities where others do not.  How about something for lefthanders?

On the other hand, is getting rich bad, and nothing but greed?  I don’t believe so.  T. Harv Eker, the author of a Millionaires Mind, recently sent me an email that I thought addressed the differences between these two topics well.  Here’s what Eker had to say.

“Rich is good – here’s why:

1. Lifestyle – it allows you to live life to the fullest, send your children to the best schools, travel first class, really enjoy the good things life has to offer.

2. Contribution – by being rich you have a duty to others to help them become richer, and to give back to society.

3. Who you become – to become rich you have to become successful, a better person, a stronger person and one that can discipline him/herself to do what it takes to become successful.

4. Stops Worry – By being rich we can live without financial fear.  We can choose to work and choose the type of work we do.  This relieves stress and adds to our lifestyle above.

Greed on the other hand, is grabbing all you can get, when you can get it, without concern for anyone but yourself, society or others. Yes, one can become rich by being greedy, but most likely, the greedy person is not going to relate to the four points above.

So work at getting rich, but don’t be greedy in the process.

Right now, approximately 5.5 million individuals receive federal social security payments and approximately 58% of these depend on their checks for a major portion of their monthly income. In other words, they spend their check every month.

If we gave every recepient a $10 a month increase that would generate about $50 million per month in new allocations every month. Or, $600 million per year, which is not even one months’ worth of war in Afghanistan, nor does it come close to the bailout funding provided to our financial institutions over the past couple of years.

Most recipients do not put their checks in a savings account, hold for future projects or otherwise, sit on the money – they spend it when they get it. Some, as I said, need it every month, others use it discretionary purposes.

If the seniors put only half of this $50 million into the economy every month it would stimulate, food sales, retail purchases, etc. So why not give the seniors a raise and let them help stimulate the economy.

How about you?

Is there an inner artist within you?  There are many community colleges developing programs to educate and train people for later life careers.  These programs range from weekend workshops to credential programs.  Through one of these programs you may find your inner artist and and how to develop it for pleasure and profit.

Also, the American Association of Community Colleges has a Plus 50 Initiative that showcases and replicates top programs for students 50 and older. Check out their web site plus www.50.acc.nche.edu (click on “About 50 Plus” and “Participating Community Colleges”) to learn more about these programs. It may lead to a whole new you and a career path you never thought about.

All these people were fifty plus when their inventions became successful (Power of 50 – an article in AARP, April, 2010).

We typically put inventors in the early years of their lives, but often as shown above, it isn’t that way. The mind is a wonderful tool for entrepreneurs. How we use it, when we use it and for what we use it, is not age based; nor is perservance and hard work.

Over 50, —  like my tennis partner used to say “furgeddaboutit’. Continue to exercise the power you were born with and to apply all that accumulated knowledge to today’s problems. You may have an answer that will join the list above.

Many of us probably meet hundreds of people a year.  We meet them through business meetings, service clubs, church services, childrens school,  sports events, social occassions (dinners, barbeques, picnics, parties,etc.), and various special occassions such as: weddings, anniversaries, funerals, retirement parties, conventions, trade shows, and educational seminars.  Often times, we exchange business cards, email addresses, or telephone numbers.  What do we do with this information?

The next time you meet someone collect their business card,  write down some notes on the back, as to where you met them, when, the jist of the conversation you had, and how they may be important for you to know.  If they do not have a business card, take some notes on a napkin. Later, you can input that information into a database to review periodically.

You never know when this information could prove very helpful to you, so when you get it – use it.

“Once evening an old Cherokee told his grandson about a battle that goes on inside people.  He said, “My son, that battle is between two wolves inside us all.

One is Evil – it is anger, envy, jealousy, sorrow, regret, greed, arrogance, self pity, guilt, resentment, inferiority, lies, false pride, superiority, and ego.

The other is Good – it is joy, peace, love, hope, serenity, humility, kindness, benevolence, empathy, generosity, truth, compassion, and faith.

The grandson thought about it for a minute and then asked his grandfather: Which wolf wins?

The old Cherokee simply replied: The one you feed.

So the questions becomes, Which one do you feed?”

For many years I have been involved with a service club. One of the primary reasons I mention this is the need to stay connected. These groups, such as Rotary International, Lions, Kiwanis, and many others, offer a good alternative to the stress of working alone or in a small business environment with few people. Regular visits with these groups offer a great opportunity to meet with people in different vocations and discuss “how their business is doing”, hear interesting speakers, maybe share a few laughs or frustrations, and generally shift your mind off your schedule for a bit of time.

We all deal with stress daily and burn out seems to be a more prevalent problem, especially with the issues we confront today. I am not endorsing a particular group, but I encourage you, if you’re not out there staying connected or involved, it might be a good idea to change your habits and see what happens.

While a bit extreme to some, I think this sets the tone for being an entrepreneur. If you’re not willing to try something new and different, will you be able to start a new business and succeed? Most “experts” will tell you that you either must make a change in an existing serivce or product, or, make such a radical new serice or product that it changes the landscape around us. Either way, the opportunity to fail is present. So, maybe we just start something we already know that is safe.

I just finished reading an interesting book that supports the idea that the reason most businesses fail is becasue they do just this – start something familiar and safe. If our failure rate is higher when we do this, then why not stretch ourselves and do that extra thing that is different. Maybe its the push we need to succeed. If we fail, then perhaps as Ms Tharp said, we have accomplished something in our effort.

It prompted me to think about business manners today, or the lack of them I should say. What sort of messages do we send young people today when they see our business leaders, government officials and politicians conducting themselves in very unmannerly ways? They yell;  they curse; they mock each other;  they call each other names; they look you in the eye and say “I didn’t do it and I promise not to do it again”; and most of them are the fifty plus crowd.

How can we serve as models to our young business and political leaders when most of what they see are instances like those above. Granted our society has and is changing. We are tech oriented; we have more people doing more things; we go at a faster pace; we have less control over events that impact us; we are global and deal in a variety of cultures; communication is instant.  All of this at a time when rudeness and a lack of manners seem to be growing.

Like Ms. Post said, “…honesty, respect and consideration … never change regardless of the political, social, or cultural landscape. These ethics are the foundation for the manners that lubricate our society’”. Maybe the fifty something crowd should take a little more proactive stance. We need to raise the bar on how we treat each other, not lower it. Next time we see offensive behaviour let’s remind ourselves and others, not all of us were raised that way.

One of those problems, and certainly not a small one, is the owner lost control of her company. As a result of losing control the owner was becoming overly stressed and is losing business.  Fortunately, the owner realized what was happening and is beginning to make the necessary changes to regain control and get the business back on track.

The specifics of how control was lost or why is not as important as how this happened.  Basically, it occurred because the owner lost focus of the plan to grow the business.  Management of the company was put into the hands of others, who had less passion for, and experience in the industry.  While the owner was off doing what they thought was best, the management team had other ideas of how the company should operate and grow.

As a business owner, you need to constantly stay focused on the plan you put in place to achieve your dream, and not delegate it to others to work that plan.  You need to work it, and if others are hired to help you, manage them closely and keep them accountable to you.  Otherwise the results you achieve will be that of others.

She has a Master of Science in Forestry with an emphasis on International Resource Conservation from the University of Montana.  Prior to spearheading the business, she worked as an Environmental Planner for nearly nine years specializing in regulatory compliance.   She provided environmental consulting services to various firms and government agencies both locally and in the Orange County area. Through Waste Less Living, Inc., she hopes to increase the public’s awareness about waste in an attempt to curb its generation.  She also hopes to demonstrate that less wasteful business and industry practices can help one’s bottom line while also saving the planet.  To date, the company has successfully diverted over 10,000 lbs of waste from reaching the landfill….all composted!

The article also reported that 15 percent of workers ages 50-64 are self-employed and that 25 percent are 65 or older.  Are you in this age category and out of work?   Do you still feel you have the knowledge, skills and vitality to be a contributing member of the workforce?  I’m sure you do.  Why not consider starting your own business. It doesn’t have to be large.  Maybe just you.

Where do you start?  Well how about a hobby you’ve enjoyed.  Can you turn it into a paying enterprise?  Or can you take your business skills from your previous employer or employers and turn that into a business enterprise?  Not sure how to do it?  There are many organizations out their that can help gain the knowledge you need to get started.

There are Small Business Development Centers around the country with excellent counselors that can help you. The organization SCORE can also help.  The latter two organizations are sponsered by the US Government and are free.  There is this web site which offersfree information and  you can also go to our LINKS button and you’ll find a “link” to many more sites.

You may be laid off and  Over 50 but you can start a successful business venture and find great staisfaction in doing so. The opportunity is not without risk certainly, but you have a lot of help out there. Take advantage of it and good luck.

Main thouroughfares or interstates are your basic idea.

Intersections or exit ramps are options you must decide to take -sometimes it is even necessary to reverse course a bit when you make a wrong turn or take a wrong exit just don’t back up the “off” ramp.

Corners or curves can be handled unless you’re going to fast or not paying attention; then you can lose it.

Above all, a map shows you were you started and where you are going. This is the same focus for a business plan.

A business plan won’t keep you from making mistakes but, like a map, it helps you to stay more or less on the right road until you get where you want to go; even with a few corrections along the way, Like our old maps, or the new GPS in your dash, it’s always good to have a plan ready and to actually use it.

The costs are essentially external and although they seem to be outside of our control, the costs are tied to the state of our environment which can be translated into the state of our health.  Put simply, when our air, water and soil are contaminated and polluted, our bodies are exposed and become weakened.  When we waste our natural resources by using too much of them or mindlessly discarding them into the trash, we overburden our planet and its ability to cleanse itself.
Here are a few things you can do now that are relatively inexpensive to implement.  They are focused on ‘wasting-less’…..less energy, less waste, less consumption overall.  And to ‘waste less’ you actually ‘save more.’

1.  Ditch the Styrofoam and disposable coffee cup in your break room and ask your employees to bring their own reusable coffee cups to work. They likely have more than one coffee cup at home that they can spare. It’ll take a few missed morning coffees, but eventually they will catch on and it will become habit. It wouldn’t hurt to place reminders in the break room and to formally send out a memo every now and again to get them accustomed to the idea and practice.  Stay on top of it until it becomes standard practice. Oh….who says you need a dishwasher?  Everyone uses their own cup, hence they wash their own cup….or not.

2.  Adopt a no water bottle policy. Instead, gift your staff (or make available for purchase) a stainless steel water bottle with your company logo on it. Good marketing potential.  Schedule for bottled water in 5-gallon jugs to be delivered to the office.  Better still, avoid the carbon footprint on delivery and cost, and encourage your staff to fill up from the tap. It’s free water and the water is more heavily regulated than bottled water, anyway. For your water connoisseurs, provide for water filter pitchers.

3.  Use both sides of paper for printing or for taking notes and set-up multiple recycling bins in close proximity to work stations. Better yet, purchase recycled content printer paper…not 30%……but 100%!  It’s out there. You need to ask for it and/or switch vendors. Check out Green Line Paper for your office paper needs.  http://www.greenlinepaper.com/

4.  Go paperless! This will definitely save you money. Your printing costs will go down, your labor costs will go down, you increase efficiency. Connect with your clientele base and formally announce to them your intentions to go paper-less, but do give them an option. You can switch to e-newsletters, e-billing, e-banking, e-notices, e-invitations, e-faxing….you name it. There’s an e-opportunity!

5.  Adopt a “lights-out” policy.  Post signs in the bathroom reminding employees to turn off the lights when they leave.  Post signs at each employee’s work station reminding them to shut-down their computers after each work day, including turning off the power strip.  Require custodial staff to enforce the “lights off” policy and/or management to ensure that work stations are shut down completely each day.

By implementing these simple but effective steps, just think how ‘green’ with envy your clients and competitors will be!

At any stage of your business, a business entity affords greater protection from personal liability than does a sole proprietorship. Anytime you operate as a sole prop (regardless of revenue or type of business), your personal assets are exposed to the liability of the business.  Should you have a judgment against your business, your personal assets are subject to that judgment.  Additionally, as a sole prop you would be named individually in a lawsuit.  This could affect your ability to obtain a line of credit or refinance your home even if the lawsuit has no merit.  By contrast, in most cases as an owner of a corporation or LLC you would not be personally named as a defendant; the corporation is usually the main or sole defendant.

Of course, some businesses may not have very high risk factors that require the heightened protection offered by the entity.  Other businesses may not earn enough money to truly merit the extra costs of forming the entity (the minimum annual franchise tax for a corporation or LLC is $800).  Even with these factors in mind, the basic premise holds true: you are far better protected with a corporation or an LLC than with a sole proprietorship.

Keep in mind, too, that there are often tax benefits to forming the right type of entity.  One additional thought to bear in mind is to always consider the benefits of insurance for your business, whether as a sole proprietorship or legal entity.

From a legal standpoint (tax issues aside), a general partnership is similar to a sole proprietorship; there is no legal distinction between you as a general partner and you as an individual.  As discussed above, you as the individual share the same legal burden as the business.  In contrast, the corporation or LLC is a separate legal entity and, when maintained properly, shield its owners from the liability that the entity incurs.  In most cases, as a corporate shareholder (or LLC member), you can only be held liable for the amount that you have invested, while as a partner you may be held liable for any and all of the partnership’s obligations.

One issue faced by businesses with multiple owners is how to divide that ownership, and who will have management control of the business.  A quick look at the pyramid control of a corporation is as follows: the shareholders, who own the business, appoint the directors of the corporation.  The directors then appoint the officers, who are generally tasked with the day to day management of the business.  A shareholder may be (and often is) a director and an officer.  An individual may earn his or her shares either through monetary capital infusion into the entity, or by offering his or her expertise to launch or operate the business.

It is generally up to the incorporating parties to determine who will get what, but a few general principals to keep in mind are: (1) will there be a majority shareholder, or will there be a possibility of a stalemate in decision-making in the entity; (2) similarly, will you have an odd number of directors to avoid ties in decision-making, and (3) in an S corporation or LLC, the percentage of ownership will have a direct impact on each owner’s tax return.

There are on-line services available for the experienced business person. However, there are many issues involved in forming a company and it is best to seek both legal and financial advice from a professional who can ask the right questions to help you get started.

The most powerful brands reflect and convey deeply held beliefs and values of the organization.  Apple, Nike, and Target …

… are three examples of brands that convey a clear message that permeates the organization and its stakeholders, and provide an expectation of experience to its customers.However, we often assume a brand is something that is created from the outside.   We think it is the advertising agency or creative who finds the slogan, the icon, the magic words. This approach can work for a product brand, but all too often it is insufficient for an organization’s brand.   It can be too superficial and produce a result that is skin deep and temporary.

When an organization is clear on its core essence, a powerful brand identity can be articulated and conveyed in graphics, slogans and actions.  The core essence comes from a shared understanding of the values of the organization, the promise of the organization (what it delivers, to whom) and the vision for the organization’s future. Effective marketing and branding campaigns begin with this deep shared understanding.

In the midst of significant changes, knowing your core essence is more important than ever.   Recently, we’ve been working with our clients to help them discover or re-discover this and articulate their brand identity.  We go through a process that results in a renewed sense of inspiration and enthusiasm for the business.   Just like beauty:  when you find your inner beauty, you feel great about yourself.

One of the questions that we use to help our clients get to the core essence of their business or organization has to do with early decisions:

What made you decide to get into this business? What did you promise yourself you would do?  How did that promise inspire you and give you energy?

Reflecting on this myself, I remembered my own commitment.  In my very early 20s, I realized that I love to shine a light on the great work that others were doing, helping them connect with an audience and be recognized for their work.   Over the years, the “light” I shine has become more complex with strategies and various communication tools.  But the bottom line remains:  I am inspired when I can help my clients be recognized and acknowledged.

For organizations with many employees (all individuals with their own early promises), the core essence comes from the shared sense of their powerful individual commitments.  Getting to a shared understanding is a great process and is an essential part of the puzzle to identifying the core essence for the organization.   It is vital to an effective branding and marketing strategy.

We see someone who is proud of their accomplishment and they show it by raising a fist, flashing a “We’re number one” or otherwise letting you know “they done good”, at least according to them. We see others who face a situation, take a deep breath and “just do it” look at their result and move on. 

Are these the same things? I don’t think so. It’s a short journey from proud to arrogant. All too often it seems today we see more of the later than the former. Also, we see a lot of our business leaders today who don’t seem to take pride in what they do as much as they put forth a defiant stance.

Confidence is also sometimes confused with arrogance. People act out of a sense of arrogance and entitlement. Confidence is not putting others down and “slamming” your opposition. It’s acting on your beliefs in a manner that demonstrates to others that you are following your beliefs with a fairness and openmindedness.

We seem to have put these two concepts on the back burner these days. Isn’t it about time we dusted them off and returned them to our business conversation.

For some of us, the computer is still not the “answer to everything”. We see people doing all sorts of things with their cell phones, mini-laptops, and other electronic devices when all we want is to be able to read our emails. Can’t remember how to use word, forgot how to create a simple formula in excel, powerpoint – forget it. We’re Luddites!

Yes, you are not alone.There are enough of the C & S philosophy (see above)  believers out there that we should have our own organization and website. If anyone has started one of these out of sheer frustration, now is the time to share it.

When you are ready to throw the *&^%^&% thing in the trashcan, what do you do?

It is amazing how many individuals who want to start a business have little knowledge of how to do it.  An essential step in starting a business, or expanding an existing one, is preparing a business plan.  It will help you organize your thoughts and provide you with the “how to” to make it a reality.

What Is A Business Plan?

• It is a roadmap to success.
• It is a written journey about your pathway to profits  for your business venture.
• It is a detailed description of your business, and  its uniqueness in the marketplace.
• It identifies your customers.
• It identifies your competition and the advantages you have over them.
• It explains how the business is or will be financed.
• It identifies who will manage or operate it.
• It helps to uncover what problems you can expect to encounter and how you will solve them.

Do You Need A Business Plan?

Yes.  It doesn’t matter how experienced you are, you need one.  Although not all successful business start ups had a business plan, not having one is like driving in the dark without headlights.

Why Do You Need A Business Plan?

• You need a general guide for your business.
• Writing a plan gives you a greater understanding of your business.
• You and your management team need to identify goals and objectives.
• You need to stay focused on your business concept.
• You need to get organized and stay on track.
• You need it to obtain financing form lenders.
• You need an evaluation tool to measure your company’s performance.
• So you can clearly communicate with your stakeholders (employees, suppliers, lenders and others).
• You need to set an exit strategy – where you expect to finish and what return on investment your investors can expect.

Should You Write Your Own Business Plan or Hire Someone To Write It?

It is best to write your own business plan for one main reason.  You will know  what it says and why.  Leaving it to someone else more often than not leaves the entrepreneur uncertain why information was presented the way it was, should they be asked. This could prove embarrassing and result in not receiving financing or other needed support from investors.

See our other articles: Business Plan Content, and Keys To Writing An Effective Business Plan.

1. Be Brief Yet Complete – Keep It “Snappy”. The plan should be enjoyable to read and leave the reader with a clear understanding of your business and how you intend to establish it.

2. Use Key Words. Write using words that are a part of your industry’s vocabulary, but be careful using acronyms. These can be confusing and not easily understood.

3. Write in Third Person. Avoid use of the words I, and we.  Use words such as the Company and/or the Firm. This will help you look at your business concept more objectively.  This is a real plus when approaching investors as it shows them your objectivity and your realistic look at the business idea.

4. Don’t Try to Do it All at Once – Plan Time Each Day to Write. A good plan can take up to six (6) months to complete depending upon the complexity of the business.  Set aside time each day or week when you will work on the plan. The time of day or evening depends upon when you do your best thinking and when your thinking will be uninterrupted by phones, family, pets, etc. A good idea is to schedule a time to meet with yourself to work on the plan, just like you would schedule any other appointment.

5. Keep All Reference Materials Close At Hand. You should set aside dedicated space where you work on your plan. It should be the same place each time so your material is readily available and easy to find.  This will save you a lot of frustration and time.  It is also be helpful to keep all your materials in a file box with folders labeled for each section of the plan such as: research, business description, financials, and so on. There is nothing more frustrating than trying to find materials that have been misplaced which can disrupt any thought or writing momentum you have built.

6. Make An Outline And Follow It. There is no magic formula to the business plan format BUT it must contain the following: Cover Page, Table of Contents, Description of the Business, Marketing Plan, Management Team, ProForma Financials, and an Exit Strategy.  See our follow up article on Business Plan Contents for a detailed description of each.

Table of Contents. Make sure you include page numbers.  Many overlook this detail, yet it is so important to keeping a reader’s interest and making it easy for them to find certain information.

Executive Summary. This is the last section you complete but it follows the Table of Contents.  The Executive Summary should be one to two pages at most, and catch the reader’s interest so that they will want to read your plan.  Think of it like an opening scene of a movie or TV show that captivates your interest enough to wade through all of the commercials and “bad acting” to see “who done it”.

The Business Concept/Description. This section describes the business, its product/service, mission, vision, and organizational structure.

The Management Team. Describe the key people and their responsibilities, and backgrounds that “qualify” them to lead the business to success.  You could also include other individuals who provide valuable input and make them part of an advisory board.  This board should provide their services “pro bono” and be called upon on an “as needed basis”.

The Marketing Plan. This section is probably the most important part of your plan. It contain the results of your market research, target market, competitors, market trends, SWOTT analysis (note extra T =Trends), sales plan, pricing strategy, break even analysis, advertising and promotion plans, and critical risks and assumptions.

The Financial Plan. This section contains the budget, breakeven analysis, projected three year balance sheet, three year projected profit and loss statements, three year projected cash flow statements and Required Capital and Use of Funds.  It is very important that you know your numbers, and how you arrived at them.

Appendices. Included in this section would be lease agreements, contracts, brochures, advertisements, credit reports, patents, trademarks, business licenses, Bylaws, Articles of Incorporation, surveys, and market research findings.

Sample Non-Disclosure Statement:

The contents of this plan are proprietary and confidential.
It may not be duplicated or copied in part or whole.

Marketing Plan

This is what you plan to do to appeal to your target market.  It involves getting to know your customers; what are their needs; where are they located; how do you communicate with them; where do they receive your products and services; what are they willing to pay; and how do you attract and keep them. It addresses the uniqueness of your business that distinguishes it in the mind of your customers. This is the implementation process for your plan. It’s the explanation of how you intend to meet the goals and objectives of your plan or simply put – its the way in which you intend to reach and hold your customers.

Marketing Strategy.

Steps in Developing a Marketing Plan:

1. Market Research. This is the process where you gain a better understanding of your industry, your potential target market, its size, pricing, distribtuion channels, and what are the promotional activities of potential competitors. Market research will help you determine what your customers are really like not just what you think they are like and help you to set goals and objectives to market to your target group (s).
2. Identify Your Target Group. Identify the demographic characteristics  of your target group – age, gender, occupation, income, education, martial status, race, etc. as well as their psychographic characteristics – lifestyle, personality, product attitude, and values.
3. Identify Your Competitive Edge. What will you offer that  attracts individuals to your business? Why should they do business with you?  What do you want your customers or potential customers to think about you, your employees, and your business? What makes your product or service important to your customers?
4. Identify The Image You Want To Project. Creating an identity takes time and may require getting  professional assistance,  but it should result in significant returns on your investment. What do you want your customers and others to think when they see your logo, or company name, or when they hear your company name.  How do they identify you? Your company?
5. Define Your Marketing Mix. This includes the product or service you are delivering, the prices you are charging, the methods of promotion and advertising you are using, and the location where your customers receive your products or services. They should all be focused toward your specific target market. If you have a secondary target market you’ll need to develop a specific marketing mix for them.
6. Identify Your Key Competitors. Be as realistic and specific as possible. Analyze them  objectively – Who are they? Where are they located? What are their strengths and weaknesses?  How do they compare to you?
7. Implement Your Marketing Strategy. Based on your goals, prepare a schedule for sales, advertising, promotion, and public relations that covers the first year on a monthly basis.
8. Prepare A Marketing Budget. Develop your costs for the various marketing tactics you will use and project revenues to cover these costs.
9. Evaluate Your Marketing Plan. Establish a method for evaluating your plan at least monthly. Identify the items you are  going to track and control (sales, product returns, complaints, etc.) and how you will measure success. Routine evaluations help you to learn quickly what is occurring in your marketplace and what changes you need to make to maintain your competitive advantage.

Establishing an easily identifiable product/service image in the minds of consumers should  focus on appealing to the purchase preference of your customers and take full advantage of their perceptions of your product/service. You have to effectively communicate those preferences if you want to capture and retain a strong customer base.

1. Determine How It Measures Up Against Competitors.

You don’t necessarily have to be the “number one” product/service in your industry to be successful; however, you need to have an effective positioning strategy to combat your competition.

If, in your customers minds, your product/service is the best you can make “prestige” part of your positioning. If your customer can receive some emotional gratification they may not be able to receive from your competition,then your positioning may be one of instant association; such as the old Rolaids line:  “How do you spell relief? R-O-L-A-I-D-S”.

Finally, brand imagery positioning can be effective.  If you can create some image that the consumer can associate with your product/service that they may not be able to associate with your competitor; such as the “Swosh” or the saying “Just Do It” associated with Nike.

2. Determine How It Appeals To Your Target Market.

In terms of positioning, it is important to understand the emotional gratification and expectations your customers receive from purchasing your product/services.  Ask yourself,as well as your customers, “Why are they buying from you?”

Look for positive perceptions that connect your customer to your offerings. For example, if your a graphic designer, are they doing business with you because you are easy to work with, listen to and try to incorporate your customers suggesstions? Or, is your business perceived as one that “goes the extra mile” to satisfy your customer’s needs?

To determine how your customers feel about your product/service takes a bit of investigation. Once completed, however, it allows you the opportunity to develop a strong position in the minds of your customers.

3. Continuously Redefine Your Product/Service.

Making sure your product/service stands out from your competitors has to be a necessary part of your positioning strategy. This requires you to describe your product/service’s key attributes as perceived by your customers.

You need to look at what your product/service “does; what does it feel,taste and smell like; does the price reflect it’s value; and how easily can they purchase it?  Example of this would be “Pontiac make excitement” or “Strong,and Army Strong” or “BMW, The Ultimate Driving Machine”.

4. Create A Positioning Strategy.

Your positioning strategy should include all of the points discussed above. It should be written in a way that your customers will respond to. It forms the basis of your marketing and sales efforts. If your customers prefer your business over your competition then they will probabily be willing to pay more and expect you to go the “extra mile”.

Your position strategy then might be as follows: ” Bizeinstein Plumbing competes on brand preference and apppeals to our customer by providing friendly, courteous service you can rely on each and every time.  Our specialists our highly trained professionals that continuously outperform our competition.”

5.  Create A Unique Selling Proposition.

This is a short phrase that brings about gratification to your customers. It should be positive and upbeat. Leave room for imagination. Some unique selling propositions that we are familiar with include: “Nothing Beats A Great Pair of L’eggs”, “We’ll Pick You Up”, “You Deserve A Break Today at … McDonalds”, “We Try Harder”. Bizeinstein Plumbing could be, “Making Plumbing Problems Disappear.”

6.  Create A Positioning Statement.

Your positioning statement should be short and simple and tell your customer what your posruct/service is and what is the result they will receive by using it. Using our Bizeinstein Plumbing as an example our psoitioning statement could be: “We’re Bizeinstein Plumbing and we’ll satisfy your plumbing needs in a friendly, courteous manner when you need us.”

You can take all kinds of steps to positioning your business, it’s produicts/services.  In the end it is the customers who decide on your positioning. They are the ones who will decide what they think and feel about your business, it’s products and services. Positioning happens whether you do anything about it or not. So take time and great care in positioning your business.

Your product/service is what you offer to your customers. They should be designed to satisfy a customers wants and needs.  After all, customers buy satisfaction, not just items. No matter how long you’ve been in business it is important to considered your product/service in terms of what needs they satisfy and to whom they are designed to reach?ss and product/services is about establishing an easily identifiable product/service image in the minds of consumers. It should appeal to the purchase preference of your customers. and take  full advantage of their perceptions about your product/service. You have to effectively communicate those perceptions if you want to capture and retain a strong customer base. Here are some step to follow:

1. Reconsider How Each Product/Service You Are Selling Could Be Classified.

There are two general ways a product/services could be classified: one meant for the consumer and the other for a business. Which one is your product/service designed to reach? Consumer products/services are based on how consumers think and shop for them. Business products/services are based on how buyers think about them and how they will be used.  There are sub-classifications within each group. This is important to keep in mind for planning your positioning strategy.

Consumer products/services sub-classifications would include: convenience items (staples, impulse, emergency and items sold over the internet); comparible items (products/services that customers perceive to be basically the same such as banks, cars, some appliances); specialty items (products/services customers ask for by name); and unsought items(newly offered products/services customers are unaware of, or don’t search for unless pressed for a need for them ie. gravestones).

Business products/services include: raw materials, component parts and materials, major equipment, operating supplies, maintenance and repair supplies, and professional services.

Each classification and sub-classification may require a separate strategy depending on how you want your customers to perceive your product/service. For example, convenience items (such as staples -food) are purchased often and without much thought or effort.  Branding is important with convenience items to make shopping easier and a well recognized brand gives an indication of quality.  On the other hand, raw materials become part of a physical good, are expensive  and require much more thought before being purchased. Buying raw materials involves grading, storing and transporting.  Purchasing Professional services can be costly and requires a cost-benefit analysis.

2. Determine How It Measures Up Against Competitors.

I read on the back of a T-shirt once the following; “Caution.By the time you read this article you competition will be one step ahead of you.” The moral, you need to be concerned about your competition. You don’t necessarily have to be the “number one” product/service in your industry to be successful; however, you need to have an effective positioning strategy to combat your competition. If in your customers minds your product/service is the best you can make “prestige” part of your positioning. If your customer can receive some emotional gratification better that they may not be able to receive from your competition,then your positioning may be one of instant association; such as the old Rolaids line:  “How do you spell relief? R-O-L-A-I-D-S”. Finally, brand imagery positioning can be effective if you can create some image that the consumer can associate with your product/service that they may not be able to associate with your competitor; such a the “Swosh” or the saying “Just Do It” associated with Nike.

3. Determine How It Appeals To Your Target Market.

In terms of positioning, it is important to understand the emotional gratification and expectations your customers receive from purchasing your product/services.  Ask yourself,as well as your customers, “Why are they buying from you?”  Look for positive perceptions that connect your customer to your offerings. For example, if your a graphic designer, are they doing business with you because you are easy to work with, listen to and try to incorporate your customers suggesstions? (Unusual for creative people who mostly want to incorporate their own idea, rathers than the customers). Or, is your business perceived as one that “goes the extra mile” to satisfy your customer’s needs?

To determine how your customers feel about your product/service takes a bit of investigation. Once completed, however, it allows you the opportunity to develop a strong position in the minds of your customers.

4. Continuously Redefine Your Product/Service.

Making sure your product/service stands out from your competitors has to be a necessary part of your positioning strategy. This requires you to describe your product/service’s key attributes as perceived by your customers.  In the mind of your customer you need to look at what your product/service “does; what does it feel,taste and smell like; does the price reflect it’s value; and how easily can they purchase it?  Example of this would be “Pontiac make excitement” or “Strong,and Army Strong” or “BMW, The Ultimate Driving Machine”.

5. Create A Positioning Strategy.

Your positioning strategy should include all of the points discussed above. It should be written in a way that your customers will respond to. It forms the basis of your marketing and sales efforts. If your customers prefer your business over your competition then they will probabily be willing to pay more and expect you to go the “extra mile”. Your position strategy then might be as follows: ” Bizeinstein Plumbing compete on brand preference and apppeals to our customer by providing friendly, courteous service you can rely on each and every time.  Our specialists our highly trained professionals that continuously outperform our competition.”

6.  Create A Unique Selling Proposition.

This is a short phrase that brings about gratification to your customers. It should be positive and upbeat. Leave room for imagination. Some unique selling propositions that we are familiar with include: “Nothing Beats A Great Pair of L’eggs”, “We’ll Pick You Up”, “You Deserve A Break Today at … McDonalds”, “We Try Harder”. Bizeinstein Plumbing could be, “Making Plumbing Problems Disappear.”

7.  Create A Positioning Statement.

Your positioning statement should be short and simple and tell your customer what your posruct/service is and what is the result they will receive by using it. Using our Bizeinstein Plumbing as an example our psoitioning statement could be: “We’re Bizeinstein Plumbing and we’ll satisfy your plumbing needs in a friendly, courteous manner when you need us.”

In conclusion, you can take all kinds of steps to positioning your business, it’s produicts/services.  In the end it is the customers who decide on your positioning. They are the ones who will decide what they think and feel about your business, it’s products and services. Positioning happens whether you do anything about it or not. So take time and great care in positioning your business.

Someone once wrote that “money isn’t everything, but it is way ahead of whatever is in second place”. Adequately funding your business is challenging and at times may seem impossible. There are a number of ways, some creative, to find needed capital to start and grow your venture.

Government Grants

Grants do not exist for Start-up businesses. Existing businesses can apply for technical and very specialized area grants, but these businesses must have a proven track record.

Two Categories of Financing

1. Debt. Borrowing money that must be paid back.
2. Equity. “Selling a piece of the rock”. Involves a permanent investment (purchasing stock or warrants) by individuals or organizations who become co-owners of the business.

Sources of Capital

Commercial Banks

All major retail banks have commercial departments and can be approached to secure a loan or lines of credit to finance various phases of a business.

Approaching a Bank: Four questions you must be able to answer:

1. “How Much Money Do You Need?” Be ready to give a definitive answer. Do not ask “how much do I qualify for?”
2. “What Will The Money Be Used For?” Have a plan for spending the money (i.e. equipment, marketing, rent, etc.) by category.
3. “How Much Money Are You Putting Into Your Company?” Most banks will look for around 20-30% cash injection.
4. “Can The Business (or You) Pay The Loan Back?” This is generally shown in the financial projections contained in your business plan.

NOTE: Not all banks are created equal. Just because one turns you down don’t give up. Another branch or bank may be willing to listen to you, and loan you the money.

Government Agencies

There are a number of government agencies at the federal and local levels that provide funding for new and existing businesses. They include:

1. Small Business Administration (SBA). The SBA is a guarantor of bank loans not a direct; although they may a loan on some real estate transactions. They have a number of loan programs available. For details go to www.sba.gov . There are three types of SBA lenders: General; Certified; Preferred. You want to work with a Preferred lender. It should help your loan get approved more quickly than a general or certified SBA lender.
2. Certified Development Companies (CDC’s). These companies work with banks and other lenders to provide long-term, fixed rate, subordinate mortgage financing for acquisition or renovation of capital assets (land, buildings, and equipment)
3. Small Business Investment Companies (SBIC). Private venture capital firms that make equity investments and loans to small businesses. They are licensed and regulated by the SBA.
4. Economic Development Administration (EDA). An agency of the US Department of Commerce that can make loans and loan guarantees to small business with high unemployment and low family incomes.
5. State, County, and Local Loan Guarantee Programs. Check with the local economic development agency to see what is available in your area.

Other Potential Sources of Capital

1. Factoring Companies. These firms purchase the accounts receivables of a business. The business receives cash and the factoring company collects from the accounts receivable customer.
2. Family and Friends. A typical way many start ups get financing. When going this route make sure you prepare a written contract so it is clear when and under what conditions they will be repaid.
3. Suppliers and Potential Clients. Suppliers can extend credit terms allowing you to conserve cash for other business operations. Potential clients can be charged deposits for work to be done which provides a small amount of working capital.
4. Venture Capital. These firms invest in various business ventures. They are made up of companies, or groups of private investors who are looking for high returns and as such generally demand a high percentage of equity in your business, a seat on your board of directors, and possibly an official position within the company. Usually these firms are not interested in start ups below $5,000,000 and are not directly approachable by the individual.
5. Angel Investors. These are wealthy individuals that invest in various businesses looking for a high return on their investment. They may demand a high percentage of equity and a seat on your board of directors and participation in your daily activities.

Occupations & Professions: States require licenses for many professions such as accountants, physicians, contractors, real estate brokers, funeral directors, chiropractors, dentists, and barbers.  Check with your State Licensing Authority to determine what license you may need for your business.

Licenses For Products Sold: States also require licenses and or permits for selling products such as liquor,firearms, gasoline, and lottery tickets.  Check with your State Licensing Authority.

City Business Licenses: These can be obtained from the Business Licenses Department in the City you wish to open your business.  Generally, you only need to take out a business license with the City in which you are headquartered even though you may be conducting business throughout the world. As different cities have different requirements and fees you may want to check with more than one before you locate and take out a permit.  Also, some may require proof of liability insurance before issuing a license.

County Business Licenses: Generally, this is needed if your business is going to be set up in an unincorporatred area of a County.  Contact your County for more information.

Zoning: Before obtaining a Business License, you should make sure that the property you’ve selected allows you to operate your type of business.  Home occupation permits may be required in some area.  Check with your City and/or County Planning Departments.

Fictitious Business Name: When conducting a business under a name other than your surname you often need to file a Fictitious Business Name Statement indicating that your are Doing Business As (DBA) with your County and or State.  Not to be confused with a Trademark, and or Registration, this is to make sure no one else is doing business under the name you’ve chosen.

Seller’s Permit: Selling tangible property may require you to have a Seller’s Permit.  Check with your State’s Board of Taxation.

State & Federal Income and Employee Taxes: Every State is different so make sure you file the proper tax forms for your business. Some States do not require taxes. Check with the IRS and your State Tax Board for information regarding these. If your business has employees you will need an Employer’s Identification Number (EIN).  Check with the IRS’s “Tax Guide for Small Business.”

Other: Other permits that may be required include: Sign, Health, Fire, Alcoholic Beverage Licenses, Parking, Transportation, Hazardous Materials, Environmental, and more.  The Economic Development Departments should be able to assist you with this.

Here are few tips to help you get started along with specific coverage information you have to learn:

• Have an Insurance Plan. Understand what type of protection you need and what you’re buying.  Don’t purchase more than you need but  be careful not to underestimate your needs.
• Manage your Deductibles. High deductibles result in lower premiums but may not be the best way to start your business. You should be able to cover the amount of the deductible from current cash flow.
• Shop and Compare. Talk to at least three agents and compare the protection offered from each.
• Review Your Insurance Annually. Make sure your coverage is meeting your needs and the prices are competitive and the prices are competitive.

Essential Coverages:

• Property Coverage - Building, equipment, furniture, fixtures, and personal property are the basic coverages you should obtain.
• Liability (Legal and Product) - Legal liability covers you for a number of occurrences such as:  injury to others, advertising, contractual and tenant.  Product liability covers you if you manufacture a product that might result in personal injury. Professional liability provides protection for practices of law, medicine, consulting, etc.
• Worker’s Compensation - In the United States this is mandated by state law. Typically it is required when you have a certain number of employees. Check with your State Insurance Board.
• Unemployment Insurance - In the United States it is mandated by state law if you have a certain number of employees.
• Business Interruption - Provides for loss of business income due to an insured property loss.
• Theft - Protects against burglary or robbery and includes coverage for customer and employee theft (shrinkage).
• Valuable papers and records - Includes your computer hard drive and document storage.

Optional Business Coverages:

• Glass Insurance - Important if you have a store front with significant glass and signage.
• Rental - Pays your rent if the property you are renting becomes unusable due to an insured peril (eg. fire).

Other Coverages:

• Key Person Insurance - Protects the company against the financial loss caused by the death of a valuable employee and or owner.  This is often required by banks for financing.
• Disability Insurance - Important to employees as it will cover the loss of income due to sickness and or accidents.
• Health - Typically an option, can be paid by company, or employee or a combination of the two.
• Group Life - Employees typically pay all or part of this type of insurance.
• Commercial Automobile - In the United States this is essential if you have company vehicles or vehicles used for company business.
• Rider on Homeowner Insurance - In the United States this may be required if working from home.
• Umbrella coverage – Offers an additional liability limit for a very low cost.

Here are some steps for you to use to help you manage and control the financial operations of your business. It begins and ends with a good accounting system.

A Financial and Accounting System:

Provides an accurate picture of your business’s financial strength.

Provides for comparisons of current financial condition with a previous period.

Facilitates the preparation of tax reports.

Facilitates the preparation of financial reports.

Exposes fraud, theft, waste and errors.

Provides information for making business decisions.

Gives you insight about making your business more profitable.

Criteria for a Good Financial and Accounting System:

It must be accurate.

It must be reliable.

It must be relevant.

It must be secure.

It must be easy to use.

Key Components of Financial and Accounting Controls

Collection and Filing of Source Documents. Source documents include copies of invoices, sales receipts, purchase orders, employee time cards, canceled checks, utility bills, etc. that illustrate the various transactions of your business activity. They provide an audit trail should you need to trace a certain business activity. You need to have a system of collecting and filing these documents so they can be easily located.

Chart of Accounts. This is the foundation upon which your accounting system is based. It is an organized, numbered list of categories that you will track. This list includes assets, liabilities, income, expenses, taxes, etc. Your chart of accounts should work for you and be able to capture every transaction of your business. It should be able to grow as your business grows.

General Journal. This gives a picture of what occurs in the every day life of the business. All of the Source Documents should be recorded in chronological order with a brief explanation in the General Journal. The account numbers are those identified in the Chart of Accounts.

General Ledger. This is the engine that runs your accounting system. It is the summary of all business transactions. It consists of a section for each of your chart of accounts. All transactions from the General Journal get “posted” to the designated accounts in the General Ledger.

Financial Reports. These provide a picture of what is happening to your money for a given time period. They are produced at least once a month and typically no later than the tenth of each month following the previous month’s transactions (for example, on the 10th of May you should receive April’s financials). The key reports are: balance sheet, income statement, and statement of cash flows.

How to Get Your Financial and Accounting System/Controls in Order:

Collect and analyze the source documents you are currently using. Do they contain the information you want and need?

Review your company’s charts of accounts. Does it reflect the needs of your business?

Set up and record your business transactions weekly in a general journal.

Review the status of your company’s general ledger. How current is it?

Evaluate the frequency of your company’s financial reports. Are they being produced on time? How accurate are they? Do you understand them?

Other helpful hints:

Investigate the various automated accounting software packages and select one that is user-friendly for you.

Seek the assistance of a reputable accountant. In the early stages of your business it is not necessary to have a CPA (they can be costly), a good bookkeeper will suffice. However, as your business grows the financial and tax planning expertise a CPA can provide will be well worth the cost.

Establish dual controls. It is not a good idea to have the same person handling all of your financial and accounting systems. Cross-train or hire someone else to perform certain needed functions (e.g. payroll, reconciling the checkbook).

Develop a written policy that spells out your financial and accounting system. This should include all the policies and procedures (internal controls) you’ve set up to handle your money.

Step 1: Job Analysis

Carefully study all of the tasks required to do a particular job. Ask yourself  “What are the results I want from this position?

Step 2: Job Description

This includes: Position Title, Work Location, Employee Supervisor, Classification (salaried/hourly),  Pay Range, Job Summary, Duties, Responsibilities, and qualifications.

Step 3: Recruitment

Find and/or attract qualified applicants using on-line resources, newspapers, networking, job fairs, etc.

Step 4: Screening

Determine which applicants possess the qualifications necessary to be successful in the job. This includes initial screening of resumes, and applications.

Step 5: Interviewing

Conduct an in depth discussion of an applicant’s abilities, skills, experiences, education, and interests. Develop a check list and rating scale that enables you to objectively determine the best applicant for the job. You may also want the applicants to take one or more tests such as math, communication skills, computer skills or physical capabilities.

Step 6: Selection

Hire the individual as part of your team. You may want to include a background check as a condition of sustained employment.

Step 7: Orientation

Prepare the new employee to perform on the job. Explain all information about job tasks, performance expectations, work, rules, salary, benefits, and any training, mentoring, etc.

Step 8: Performance Appraisal

Compare actual performance with expected performance to assess an employee’s contributions to the firm. This should be done formally at least every 6 months to a year.   If done consistently and properly the employee should always know where they stand in regards to their performance.

As customers we know how we like to be treated by business owners and other service providers.  But, as business owners and or service providers are we sensitive to how our customers would like to be treated by us?  Are we really conscious about the experience we deliver to each of our customers, clients and or guests?  Do we know why they are doing business with us or do we even care as long as they continue as a customer?  This article explores issues surrounding good and bad customer service and offers solutions to how you can provide a level of service that is so memorable your customers will never want to go anywhere else.

The entire process of customer service of delivering a memorable experience doesn’t just happen.  It requires careful planning and action to put into place successful systems that result in quality service that keeps bringing your customers, clients or guest back for more.  How then does a business deliver quality service day in and day out?  It is done very systematically and as a direct result of the owners actions.

In order to begin to deliver customer service that is so memorable your customers keeping coming back, we first need to look at what customer service actually is. Then, put it in proper perspective within your business environment.

Customer Service Defined

What customer service is will vary from one person to another depending on one’s experience as a customer or from one’s employer.  Customer service can mean anything from being greeted with a smile upon entering a store, getting what we want when we want it, being treated nicely, getting answers to our questions, not having to talk to a machine for customer service, and so on. It means many things to may people.  Why?

Because customer service in intangible.   You cannot feel it, taste it, touch it, or smell it.

It is perishable, that one experience’s it at the moment of delivery and then it disappears. Customer service doesn’t have shelf life, and depending upon the receiver could be relatively inconsistent from time to time.  All of this makes customer service hard to define and manage.

Nevertheless allow me to offer one definition for you to consider.  Customer service can be defined as “providing numerous individual acts of caring and concern for those who deliver and purchase our products and services”.  It can simply be looked upon as meeting and exceeding our customers needs and expectations.  As a business owner you can provide the right actions that can significantly improve your and your employees people skills that result in the kind of service that they want, deserve and expect.

Who Are Your Customers?

There are two type of customers that every business services. The first, and in my opinion, foremost are the internal customers.  These are your employees. The one’s responsible for meeting customer expectations.  These individuals are impacted by what goes on or doesn’t happen within your organization.  Unhappy, mistreated, or unappreciated  employees can and often do, have a negative impact on our customers.  It is important that business owners understand and appreciate their internal customers.  They are the one interacting with our customers one a daily basis.

The second customer is the external one. Those individuals who we target for our goods and services.  It is important for the business owner to understand who these individuals are.  What is their demographic and psychographic make-up.  What do they purchase from you? And most importantly why do they purchase from you? What is it about your product and or service that keeps your customer coming back? What is it they are expecting your firm to deliver to them?  Lower prices, more durable product, fast just in time service, extended credit?  Fully understanding, not just guessing, what it is you are providing that is meeting their wants and needs is important in managing quality customer service.

Where Customer Service Begins

As the business owner, quality customer service begins with you.  You need to provide the leadership and environment for yourself and your employees that fosters quality service. Your leadership and the organization’s culture that flows from it form a powerful force that will determine the degree of success or failure you will have in providing a memorable customer experience that keep your customers returning.

Customers are the lifeblood of any business.  Customers will repeatedly patronize a business operation that provides them with the best personal treatment. No one likes being  treated rudely, apathetically, condescended to, given the run around or the brush off. Most customers will recognize when they are being treated like this and either leave or certainly never return again.

When customers enter your business they should feel a positive welcoming atmosphere.  The employees should be enjoying their work and communicate a genuine feeling of friendliness and comfort.  These feelings, attitude, begin with one’s internal feelings and thoughts that are translated in behavior and speech.  They are also translated in body language such as facial expressions, posture, hand and body movements, tone of voice, and grooming.  Personal and friendly body language can make a significant difference between a mundane and exceptional customer service experience.

Hiring the Right People and Training

Because customer service is perceived differently by individuals, it is important to hire the right people and provide training for quality service.  This begins with conducting a analysis of the quality service standards expected from each position in your organization.  This will define for you the type of individual(s) needed and the type of training toward which job behavior must be aimed.

Once an analysis has been completed it is important to develop job descriptions for each position to be filled. This will provide the first steps in hiring the right individual(s) and providing effective training.  In developing your job description remember to include the type of attitudes you are seeking.

Once a person is hired, time must be invested in training them regarding your service standards and the day-to-day service operations.  This begins with a quality orientation program.  Orientation is vital, no matter how experienced the individual is, to introduce them to the organization, work site and the job.  Next comes a quality training program that prepares the individual to meet all your standards of quality service. Followed by a method of assessing the individuals progress. Finally, an on-going job development program is needed to periodically upgrade job skills.

Outcomes

Memorable customer service doesn’t just happen.  It is a process of developing and establishing systems that permanently instill quality service behavior as an everyday part of your organization.  This is turn, will generate an organizational culture that should make customers want to do business with you for a long time to come.

• Study Your Budget Numbers. Look for “clues” as to what they are telling you. Are they revealing any problems before they become serious?  Are they confirming your budget assumptions? Do they need to be revised?  Discuss them with your key people and make any necessary changes to improve performance.
• Research and Follow Best Practices. This involves systematically reviewing tools, techniques, and procedures used by other businesses that you might be able to implement into your business.  Exercise care as to what “best practices” you select, not all you discover will be useful or of value to your firm.
• Involve Your Employees. The more involvement they have the more effort they’ll put into making your business a success. Look for incentives to encourage them to cut costs or overhead. Meet regurlarly to discuss product/services.
• Evaluate Your Vendors. All vendors are not alike. Routinely look at the service and price you receive from a vendor. If you have options, check the competiton.
• Look at your Purchasing Habits. How do you buy products and services to support your business. Are you paying the best prices for these items. Can you buy in bulk?

Unfortunately, the storm seems to have settled in around us but If you listen to the prognosticators, we are in for a long run, a short run, or it’s over. Sounds a lot like our weather forecasters. 

So what does one do in this glass house. Some might say, set back and enjoy the show. Others say turn the music up and you won’t hear it so much, and still others say get under the bed and hope. All kinds of good advice available isn’t there.

In my house, we have decided to do a little of watching, a little bit of music and some hiding. We are not buying big items, regardless of the “two for one”, “three for one”  or “get it free” promotions everyone is doing – we’re watching our budget more closely. We are listening to the music more, we turn up the sound a bit to drown out some of the negative things we don’t believe will happen, although we are not taking the “bluebird of happiness” approach to the storm. We are not hiding; we are out there letting people know we are still around and working.

Many of us have weathered these storms before and our house (business) has been a bit battered, maybe even a few broken panes, but it’s still there and still taking care of us.

Everyone has the same amount of time, yet some individuals seem to accomplish more than others.  How do they do it?  They simply set up and follow a method that allows them to utilize their time most effectively.

Evaluate How You Are Using Your Time. Keep a record for the next 14-21 days of how you actually spend your time.  Record the amount of time spent on everything from sleep, meals, work, recreation, family, and friends. Evaluate yourself. What activities are getting in the way of you accomplishing what you need to do? Are you spending too much time on the phone, long lunch hours, sorting through e-mail, scheduling or attending too many meaningless meetings? How can you make time more productive?  Will these changes provide you with the results you are looking for?

Analyze Yourself. When do you seem to have the most energy? Is it morning, afternoon, or evening?  Schedule your most important activities during the day when your energy levels are high and save your more routine activities for when your energy is low.  If you’re a “morning person” get up and get busy with the important things immediately and save those more routine activities for after lunch or early evening.

Set Up A Daily Schedule and Prioritize Your Activities. Develop your own system; use a computer or purchase one of the many calendar/appointment books on the market.  Make sure it will work for you.  Don’t just put together a “To Do” list, this is not time management and often causes you to focus on things that you can get done quickly, not on what you MUST get done. Prioritize each activity that needs to be completed that day and work on the most important first, not the ones you can do easily. Put a timeline for each activity. (e.g. 30 minutes for lunch or 4:00pm-5:00pm to return phone calls). Don’t Overbook Yourself.  Give yourself some unscheduled time – time that you can use to recharge your battery. Also don’t forget to leave time to deal with “unforeseen” activities that come up during the day. Remember, though, focus on what must absolutely get done today.

Evaluate How You Use Your Time. Continuously evaluate how you  spend your time. It is important that you do this or you will not break your old habits.

“Commit To Commit” To Improving Your Time Management. Breaking old habits is never easy.  Being “committed” to change is not always enough.  Every New Year’s day many commit to getting in better shape by joining a gym.  How many actually follow through week after week?  You must establish habits that enable you to get the most out of your time.  Do this and you will find yourself accomplishing more and getting more out of life.

Taxes listed below apply only to businesses in the United States and are presented as an overview.  Contact your accountant or the regulatory body mentioned for detailed information on each.

Payroll Taxes. When you hire employees they will need to complete a Form I-9 and Form W-4.  The Form I-9 is used to provide verification that each new employee is eligible to work in the United States. This form can be acquired from the Immigration and Naturalization Service (INS) office. The W-4 form is used to indicate the employee filing status (ie. married, single) and tax withholding information. This form can be acquired from the Internal Revenue Service (IRS).

Federal Insurance Contributions Act (FICA) Taxes (Social Security and Medicare). You are required to withhold these taxes on each employee.  You are also required to pay a matching amount of FICA taxes on each employee.

The IRS requires any business paying more than $200,000 annually in payroll taxes or other federal taxes to pay through the Electronic Federal Tax Payment System (EFTPS).  To enroll go to www.eftps.gov.  These taxes are usually required to be paid monthly, depending upon the size of your business.  In addition, you are required to file Form 941 (Employer’s Quarterly Federal Tax Return) which provides the government with information on the federal income taxes and FICA taxes you withheld and paid.

Federal Unemployment Tax Act (FUTA). This tax is reported separately from FICA.  FUTA  must be paid on your payroll if during the current or prior calendar year you paid total wages of $1,500 to your employees in any calendar quarter, or you have at least one employee working on any given day in each of 20 different calendar weeks.  As an employer you pay this tax, your employees do not have to pay this tax.  FUTA is generally paid quarterly; and you have to file an annual return.

Business Tax.

Sole Proprietorship. You must file a Schedule C (Profit or Loss From Business) with your individual income tax return -Form 1040.  In addition you must file a Schedule SE (Self-Employment Tax) with your Form 1040.

Partnerships and Limited Liability Companies (LLCs). You must file Form 1065 (U.S. Return of Partnership Income).  Schedule K-1 (Partner’s Share of Income, Credits, Deductions) must be furnished to the partners and LLC members by the filing date (April 15 calendar year, 15th day of the fourth month after the end of your corporate tax year (fiscal year).

Corporations. If your business is structured as a regular corporation you must file Form 1129 (Corporate Income Tax Return).  If your set up on a calendar year the due date is March 15.  If on a fiscal year your due date is the 15th day of the third month after the end of your tax year.

S-Corporation. If you are structured like this, you need to file Form 1120S (U.S. Income Tax Return for an S Corporation). Shareholders must receive a copy of Schedule K-1. Due dates are the same as for other corporations.

Sales Tax. Sales taxes vary by state.  They are collected at the retail level.  Contact your state and local tax offices to learn how these laws apply to your business.

State and Local Taxes. These vary by state.  Check with your state tax/revenue office regarding how these laws apply to your business.

Tax Year. There are two types of tax years: a calendar year ( January 1 to December 31) and a fiscal year (a twelve month period that ends in any month besides December).  You’ll have to decide which one is best for you.

Other Helpful Information.

Employee Identification Number (EIN). This number is issued through the Internal Revenue Service (IRS) and is needed if you operate your business as a corporation, or partnership in the United States. You can acquire a form for an EIN through the IRS website or call toll free 866-816-2065.

Independent Contractors. With independent contractors you do not have to pay the taxes listed above.  However, you must make sure that the individuals working for you are truly independent contractors.  The IRS has a test to determine if the individual working for you is truly independent.  Go to www.irs.gov to look up the test. You have to file and give an independent contractor  Form 1099 if you pay them more than $600 in a given year.

One Final Word.

There is a lot of helpful free publications from the IRS website (ww.irs.gov) that you can download to help you better understand the U.S. tax laws and codes. Most of the above information was derived directly from this site.

Make tax planning part of your business operations. Constantly be looking for ways to limit your tax liability. Work with your accountant.  Remember to keep good records!

This is only a partial list. Based upon your market situation you may need to be more creative in your pricing approach.

1. Skimming Pricing: This is the technique of selling at a high price and skimming extra profits from the strong demand in the marketplace. This strategy is usually maintained for a short period of time because conditions for it’s use do not last very long. For example, the store that receives an early shipment of a popular video game can price it high if they are the only one who has it.

This strategy can also be used when customers are willing to pay a higher price because they perceive a major difference between a high-priced good or service and lower-priced ones. For example, people who stay with their doctor rather than switch to a lesser expensive health plan that may require them to switch doctors. They perceive that the coverage they receive from their current doctor is greater than what they’ll receive from the new health plan.

2. Bundling: This is the strategy of selling products or services in a package at a lower price than selling the items individually . For example, selling condiments such as mustard, ketchup, relish in a premade package, or selling a computer, keyboard and monitor as a “unit”.

3. Penetration Pricing: The is the strategy of aggressiverly sellling at a lower price than your competitors to stimulate sales and gain a greater marketshare. The objective of penetration pricing strategy is to gain quick access to the marketplace and high sales volume as soon as possible. This type of pricing requires strong cost and inventory controls to ensure a profit.

4. Odd Pricing: This involves setting the price just below a round number – for example pricing a good at $1.99 rather than $2.00 or $299 instead of $300. This strategy is based on the belief that the lower price is perceived to be much lower than the higher price. Odd pricing works only when it has psychological benefit.

5. Leader Pricing: Sometimes referred to a “loss leader”, leader pricing involves marking down a popular product to attract more customers.

6. Price Lining: This strategy involves offering a line of products in several different price ranges; for example, a car wash that has several levels of services, from the basic car wash to a deluxe one. This strategy caters to a customer need or desire that changes often and may even change as they approach the business.

7. Discount Pricing: This is strategy involves reducing the list price of an item to attract more customers or to reduce stock more quickly. Discounting considers such variables as seasonal discounts (selling Christmas decorations at a big discount the day before Christmas), special group discounts (advertising a discount to seniors), quantity discount ( buy one at $10.00 or 3 @ $25.00), and cash discounts.

8. Image Pricing: This involves a special label product with a high price verses a lower priced generic brand i.e. deliberately implying higher value through higher price

9. Price for Performance: This strategy involves charging a customer based on the performance or value they receive. For example, a money manager being paid based upon profits generated for his/her clients.

10. Trial Period Pricing: This strategy ivolves lowering the risk for a customer to try out what you sell. For example, offering low refundable “preview fees” on videos of website information.

11. Captive Pricing: This is the strategy of selling a system cheap and then selling higher price accessories needed to make it work; for example, selling razors at cost and then selling the blades separately.

12. Geographical Pricing: This strategy sets different prices based upon where customers are located; for example, an amusement park charges one price for locals and another for out of area customers.

Once you’ve determined your pricing strategy make sure it is consistent with the competitive realities of the marketplace and the forces of supply and demand.

Retail:

In establishing prices for retail goods it is most important to consider the nature of the products. Different types of goods need to be priced differently.  Some retailers will follow manufacturers suggested retail price (msrp) when given; otherwise, they may use markups and markons in setting their prices. Staples, such as newspapers tend to be offered at market price; fashion goods, novelty items can be marked high and lowered once the novelty wears off; and unit pricing ( by the ounce, pint, yard) is listed in certain retailers that enable comparison shopping.  Unit pricing is required by law in some states.

Wholesale/Distributor:

Prices at the wholesale level are generally based upon an established markup for each product line depending upon their cost from the manufacture and what the retailer wants to pay.   In setting prices it is important to keep abreast of competitors prices. Wholesalers may charge different prices to different retailers for the same goods based upon such factors as size of order, frequency, and credit extended to the retailer.

Service Businesses:

Pricing methods vary widely for service businesses.  They are usually dependent upon two factors: (1) charging what everyone else charges and (2) setting a price based upon the uniqueness of the service. When setting prices keep in mind the total cost associated with each job (job costing) and include over-head costs (operating expenses, such as rent, utilities, indirect staff time, etc.).

Manufacturers:

Setting prices involves “cost plus” – a markup charged to cover all expenses.  This not as simple as adding a percentage to costs. It includes tactics such as; 1) negotiating rates with suppliers, 2) purchasing raw materials in a timely manner, 3) buying in sufficient quantity to be able to deliver finished goods at competitive prices, 4) keeping track of production costs, and, 5) continuously seeking ways to operate more efficiently.

The Difference Between Cash, Cash Flow and Profit

Cash is the hard currency on hand and in the bank. Cash flow is the cycle of cash in and out of your business. Profit is simply the difference between revenue (income) and expenditures.

Cash conversion

The length of time between the payment of bills and the collection of cash from sales is your cash conversion cycle (CCC). The key in protecting your cash flow is to minimize the cash conversion cycle.

Shortening Your Cash Conversion Cycle – Have a Cash Plan

Forecasting the timing of receipts and synchronizing it with payment of invoices means you are managing your cash conversion cycle efficiently. To do this:

1. Track Your Cash Flow. Use the “cash flow statement” to track your actual cash inflows and outflows. If you currently don’t use one, ask your accountant or get an accounting software program. Also, there is a sample cash flow statement located at the end of this article.
2. Set Up A Cash Budget. This will help you plan your cash needs for the future. Do this on a monthly, quarterly, semi annual and annual basis. Compare your cash needs with actual cash inflow monthly and adjust.

   A simple cash budget format:

   1. Identifies your beginning cash position by determining how much cash you have on hand and in the bank.
   2. Forecasts the cash you expect to receive.
   3. Forecasts the cash you expect to disburse.
   4. Calculates the difference between b and c. This will give you your net cash flow.
   5. Determines your ending cash position by adding or subtracting your net cash flow to your beginning cash position. This will provide you with the beginning cash position for the next period.
3. Establish A “No Touch Account” and Stick To It. It is important to set aside money for emergencies or unexpected outflows of funds. This money should come off the top of every sales transaction (gross sale) and not after bills have been paid. Whenever someone pays for a product/service, set aside a percentage (5,10,15) of that purchase into this account. Discipline yourself not to use this account unless for a real emergency. You’ll be surprised how quickly it builds up.
4. Change How You Extend Credit. The more you sell on credit and the longer it takes to collect the greater the drain on your cash. One suggestion, if you are a service provider, ask for deposits (a percentage) on work contracted. You can collect the balance due in a schedule of payments or billings based on delivery of your product and or service. Credit card payments are a separate issue and should be thoroughly discussed with your banker to understand the system – collection of service fees; discounts based on volume, and the potential charge backs.
5. Offer Incentives For Paying Early. Offer your clients a discount for paying early -10% percent discount for paying within 15 days of receipt of product or service.
6. “Stretch” Your Payment of Invoices. Just because you receive an invoice doesn’t mean you have to pay it right away. Set up a regular schedule (for example the 15th and 30th of each month) for paying invoices. Start the payment process a couple of days before by gathering and assembling invoices to be paid on your selected date(s). If an invoice arrives within that period of time hold it off until the next pay period unless there is a discount involved.
7. Take Advantage of Early Pay Discounts. Whenever you are given a discount for early payment you should take advantage of it. Over a year’s time it will result in significant savings and additional cash kept in your business.
8. Utilize Automated Clearing Houses (ACH). Ask customers to electronically transfer funds from their account to your account.

Other Helpful Tools of Protecting Your Cash Flow

1. Analyze your capital assets to determine if they can be used more productively. Idle machines, furniture, etc. are the same as idle cash, can they be sold, or used in other ways.?
2. Calculate the appropriate financial ratios, especially the debt-to-equity ratio. The debt-to-equity ratio will tell you how much debt service you have. Compare your ratio to the industry average to evaluate the health of your business.
3. Monitor your receivables and pursue slow-paying customers. Granting credit to those who have a history of “slow pay” keeps needed cash out of your business for a longer than necessary period of time.
4. Calculate the costs of borrowing. Compare these costs carefully before borrowing. If you borrow, choose the lender that can best serve you business needs.
5. Don’t overbuy on inventory. Determine your optimal level and monitor it carefully. Too much inventory “soaks up” cash.

A final word on protecting your cash flow. Invest time to become familiar with your cash flow statements and follow your cash plan.

The Difference Between Cash Flow and Profits.

Cash is the hard currency on hand and in the bank.  Cash flow is the cycle of cash in and out of your business.  It is the timing of cash receipts and cash disbursements during a specific period of time. Profits is simply the difference between revenue (income) and expenditures.  This involves things that are not cash such as depreciation (loss of value on equipment), amortization of a loan, and other allocations (prepaid items such as insurance, supplies, etc.). Credit also affects your cash flow whether your purchasing on credit or paying.  It is not part of your cash flow until the money comes in.

Your Cash Flow Cycle.

Your cash flow cycle involves the cash you receive less the cash you disburse.  What’s left is either more cash kept than paid out or a “positive cash position”; or the opposite or a “negative cash position”.Your cash flow cycle is usually measured over a monthly period; however, it is a good practice to know your cash position daily.  This doesn’t mean knowing how much you have in your checking account but how much cash you have in your business (your cash position). Knowing your cash position involves knowing how much cash you have at the beginning of a period (month or day), the inflow and outflow of cash during that period, and how much cash you have left at the end of that period.  The length of time between the payment of bills and the collection of cash from sales is your cash conversion cycle (CCC). Your key in protecting your cash flow is to minimize the cash conversion cycle.

Shortening Your Cash Conversion Cycle – Have A Cash Plan.

This involves forecasting the timing of receipts and synchronizing it with payment of invoices.  To do this efficiently:

1.    Track Your Cash Flow. You can do this by setting up a “cash flow statement” that tracks your actual cash inflows and outflows.  If you do not have a “cash flow statement” you need to set one up ASAP and use it.  Your account can help you with this or there are many good books available to help you. There is a sample cash flow statement located at the end of this article.

2.    Set Up A Cash Budget. This will help you plan your cash needs for the future. You can do this on a monthly quarterly, semi annually or annual basis.  Compare your cash needs with actual cash inflow monthly and adjust.  A simple cash budget format works as follows:

a.  Identify your beginning cash position by determining how much cash you have on hand and in the bank.

b.  Forecast the cash you expect to receive.

c.  Forecast the cash you expect to disburse.

d.  Calculate the difference between b and c. This will give you your net cash flow.

e.  Determine your ending cash position by adding or subtracting your net cash flow to your beginning cash position.  This will provide you with the beginning cash position for the next period.

3.  Establish A “No Touch Account” and Stick To It. It is important to set aside money for emergencies or unexpected outflows of funds. This money should come off the top of every sales transaction (gross sale) and not after bills have been paid. Whenever someone purchases from you take a percentage(5,10,15) of that purchase, whatever you can afford, and put itinto this account. Discipline yourself to not use this account unless for a real emergency. You’ll be surprised how quickly it builds up.

4.  Reduce Your Extension of Credit. The more you sell oncredit and the longer it takes to collect the greater the drain on your cash.  This may not be easy to do; one suggestion  is to ask for deposits (at least 1/2) on work contracted for. You can collect the balance due you upon delivery of your product and or service.

5.  Offer Incentives For Paying Early. Offer your clients a discount for paying early such as 10% percent discount for     paying within 15 days of receipt of product or service.

6.   “Stretch” Your Payment of Invoices. Just because you receive an invoice doesn’t mean you have to pay it rightaway.  Set up a time line (for example; on the 15th and 30th of each month) for paying invoices.   Start the payment process a couple of day before by gathering and assembling invoices to be paid on your selected date(s). If   an invoice arrives within that period of time (assembly and payment) hold it off until the next pay period unless there is a discount involved.

7.   Take Advantage of Early Pay Discounts. Whenever you are given a discount for early payment you should take advantage of it.  Over a years time it will result in significant savings and additional cash kept in your business.

8.  Have Your Customer Use Depository Transfer Checks(DTC). If it is possible for your customers to do this have them pay with this simple transfer of funds.

9.  Utilize Automated Clearing Houses (ACH). Ask customers to electronic transfer funds from their account to yours. 

Other Helpful Tools of Protecting Your Cash Flow

1.    Analyze you capital assets to determine if they can be used more productively.  Idle machines, furniture, etc. are the same as idle cash.

2.    Calculate the appropriate financial ratios ( especially the debt-to-equity ratio) and compare to the industry average to evaluate the health of your business. The debt-to-equity ratio will tell you how much debt service you have. This soaks up cash.

3.    Grant credit to credit-worthy customers only.

4.    Establish a sound credit policy, collection policy, and discount policy and follow it.

5.    Monitor your receivables and pursue slow-paying customers.

6.    Calculate the costs of borrowing.  Compare those costs carefully before borrowing.  Borrowing can help you grow your company; but too much borrowing or too costly borrowing can put your business at risk.

7.    If you borrow choose the borrow that can best serve you business needs.

8.    Don’t over buy on inventory.  Determine your optimal level and monitor it carefully. A final word on protecting your cash flow is to watch it closely.  Invest time to become familiar with your cash flow statements and follow your cash plan.

A final word on protecting your cash flow is to watch it closely.  Invest time to become familiar with your cash flow statements and follow your cash plan.

Sample Cash Flow Statement

Beginning Cash Position (Date)                                  $ ___________

Cash Receipts (Items)

$____________________________________     $____________________________________     $____________________________________     $____________________________________     $____________________________________     $____________________________________

Cash Disbursements (Items)

$____________________________________     $____________________________________     $____________________________________     $____________________________________     $____________________________________     $____________________________________     $____________________________________

Net Cash Flow                                                              $____________

Ending Cash Position                                                   $____________ (Use as Beginning Cash Position for next period)

 I was encouraged in schools and on various athletic teams which I played on to identify, correct or strengthen my weaknesses.  The emphasis always seemed to be on my weaknesse and not on building upon my strengths. 

The authors show you how to become an expert at finding and refining your strengths.  They say great organizations capitalize on each employee’s differences, work to identify each employee’s natural talents, and transform them into strengths.

At the heart of the book is an internet based “StrengthsFinder Profile” that allows you to identify your strengths and shows you how to leverage them for powerful results at three levels: for your own development, for your success as a manager or business owner, and for the success of your organization. 

To me, who spent over thirty years in management, it is a very useful tool.

They used their garage for storage and assembled the product in their living room (often late at night) and hauled them to the post office, UPS Store, or FedEx. This was a time consuming, frustrating, and tiring experience. Not to mention, it turned their home into a “warehouse” eliminating the idea of their home being their “castle” or place of “escape”.

One solution that worked well for them was to utilize the services of a local vocational school/training facility. Such facilities, scattered throughout most counties in the US, provide work related training for physically challenged individuals.  The purpose of the facility is to help these individuals earn a living and eventually learn to live on their own. 

Most of these facilities will warehouse your product, have individuals who can assemble it, and also ship it for a very reasonable fee.  Their work has proven to be high quality and completed in a timely manner. The facilities are safe and secure.

If you are having problems with warehousing, assembling, and shipping your product, you may want to investigate utilizing a local vocational center.

I shared some of my own story, and some insights about being an entrepreneur that I have learned along the way. The speech resonated with the audience, and I include it here for those that were unable to attend — hope it continues to inspire.

Keynote address – Collegiate Entrepreneurs Organization – Business Plan Competition
Delivered by Judy Smith Asbury
Woodbury University
Burbank, California
April 4, 2009

Thank you Karen. I am really honored to be here tonight. Also, I want to thank Bud Walker and Aida for giving me the background of the CEO group here and helping me prepare.

It is a challenge to say something inspiring or at least interesting, to those who have done so much to study entrepreneurial ventures, as well as those who have achieved great success as entrepreneurs, particularly, Mr. Tom Baron who made this award and this evening possible, Dean Andre Van Niekirk and Dr. David Rosen.

I am here tonight, not as an expert, but as a player on the court. I am an entrepreneur and I enjoy working with entrepreneurs. So, I am going to give you a sort of “field report” and share some of the insights I’ve learned.

I hope these insights will prepare you for the journey you are about to undertake.

Being an entrepreneur is a wonderful journey. My coach – and I’ll speak more about the importance of a coach later – calls it a sacred journey. The reason she calls it sacred is that as an entrepreneur, you must constantly be examining yourself, constantly learning, constantly ready to re-invent your business, as the vehicle for your own self-expression.

In 1984, there was an American Entrepreneurs Association that came up with the following credo:

“I do not choose to be a common man. It is my right to be uncommon-if I can. I seek opportunity-not security. I do not wish to be a kept citizen, humbled and dulled by having the state look after me.

“I want to take the calculated risk, to dream and to build, to fail and to succeed.

“I refuse to barter incentive for a dole; I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of Utopia.

“I will not trade my freedom for the beneficence nor my dignity for a handout. I will never cower before any master nor bend to any threat.

“It is my heritage to stand erect, proud and unafraid; to think and act for myself, to enjoy the benefit of my creations and to face the world boldly and say:

“This, with God’s help, I have done. All this is what it means to be an Entrepreneur.”

An entrepreneur is someone who wants to do it their way, with a conviction that they know the best way/the best product to solve the problem. They can’t hide – their success or failure rests squarely on their shoulders. No one else is to blame.

It takes great heart, great courage and great conviction. It takes arrogance and humility. It takes a commitment to learning – learning about yourself and about what your customer needs and wants — always ready to adjust and re-create your business. It takes a commitment to marketing: indeed, an e has an intuitive sense of marketing, and the changing desires of customers.

The dictionary defines entrepreneur as a person who organizes, operates, and assumes the risk for a business venture.

Not everyone is an entrepreneur. Others are great at educating, at managing, at inventing, at leading, at marketing. The entrepreneur is an entrepreneur because he/she thrives on taking the risk, constantly promoting themselves and their organization to the world, and serving their customers.

So, welcome to the journey.

I did not have some grand vision of being an entrepreneur when I started.

I had a need. I needed to work close to home to be nearby my 2 year old daughter, and there was no agency nearby that did the media work that I loved.

I was stymied until one day a colleague asked me, why don’t you go into business yourself? I replied, ‘I know nothing about running a business.’ Her reply, “you’ll learn.”

I did learn. I learned that indeed, just as I could not find an agency that did the work I did, clients could not find one either and soon I had clients in Pasadena that were hungry for my services.

But, since I had not done my business homework, in a few years I burned out by over-servicing and under-charging my clients. I did not trust myself. I thought – maybe I really don’t know what I’m doing. I took my clients and went to work for a “real” PR agency. It was the equivalent of a Woodbury Entrepreneurship class for me.

But, I realized I was not happy. I had a taste of entrepreneurism. And I loved it.

So, I started an agency for real in 1987 – one with a plan. This in fact, is my first insight, which you all already know: do your homework and have a reasonable plan as your road map.

I hired a CPA who was a business manager to help me put the financial backbone of the business plan together. It was amazing to me how that plan came true the first year. It was comforting to have a road map to consult and follow. I realized all my financial projections that first year. And, this was the last real recession in the US – so don’t let bad economic news stop you!

But the plan I had for future years did not emerge. I envisioned that I would continue to grow as a PR agency, with more and more account executives until the firm had accounts in the millions, at which time I would sell to someone and do something else.

In fact, the business changed as I changed.

And that brings me to the second insight I have to share with you: appoint a coach for yourself. This is a person who knows you well, who is completely on your side – but who also will tell you the truth and give you a more objective point of view.

An entrepreneur needs to constantly re-examine him or herself. We get caught in complex mind-sets; we are caught in fear, in mis-trust of our own judgment, in hallucinations of what we think “will” be. We need someone that will tell us the truth, who will hold up a mirror so that we can act based on facts, not a story we made up.

And, one thing I have learned is that no matter what the situation, what the client, the circumstance, the product – ultimately, the issue you need to deal with as an entrepreneur is you. You are the business. You are the soul and vision and passion of the business. And, so you need someone who can help keep you on track and see things as they really are. That is what I call a coach.

On this remarkable journey as an entrepreneur, you are on the fast track for learning to dance with life. The secret to success as an entrepreneur is the ability to quickly respond to opportunity. It is what corporations thirst after; and why small businesses that respond quickly to changing realities can succeed when larger corporations fail.

Third Insight: use your business plan as a guide, but don’t get attached to it as THE WAY IT SHOULD BE.

Our agency has evolved many times. After that first year, things didn’t really go according to plan.

After concentrating only on providing media relations services, I realized that this didn’t completely serve my clients. They needed a more comprehensive approach, and so with my new partner Greg Asbury, we began to offer marketing plans with a variety of communication tools.

We launched into new areas of technology as the Internet and mobile communications grew. In fact we started a company, Mocca, to harness the ability of text messaging (SMS) as a marketing tool.

Our vision of growing profits by hiring more account executives began to wane. We found ourselves more involved in managing people than in doing the creative work we loved. We changed our business model from one based on growth by hiring more people to an agency built around the two of us, hiring people only as we needed to for various client projects.

The evolution of our business also came about as result of serendipity.

I was working with a client who was a float builder. One of his floats was from the Republic of Indonesia. I had studied Asian culture in college, and so had some affinity for themes of these floats. Every year, we were invited to attend the after parade party at the consulate. There we would spend a few minutes with a lovely chairwoman of their float committee, named Ibu. Each year she would thank us, “you have done such a good job representing us, but you must come to my country and see if for yourself.” I thought this was just idle chat until one day my fax line rang and the fax coming thru read, “’good news! Ibu has invited you to come as her guest to Indonesia.”

It was an opportunity I could not pass up. But, I didn’t see a lot of business prospects coming from it either. Greg and I went there, and made such a connection with Ibu, her family and the other committee members that we have been doing business in Indonesia in some way ever since. In fact, one of our businesses, the manufacturing firm, Carolina Precision Manufacturing was founded in partnership with Ibu’s oldest son.

Our boutique-publishing firm, Mitra Publishing came about when we were working with Ibu to publicize her national flower garden in Indonesia. We needed a way to give the garden immediate credibility, and we thought, why not make a book with all the photos we have? That experience led us to found the publishing arm, and we use it from time to time for clients with a special need.

It also was the impetus for Greg to learn graphic design on his new Mac computer – a skill that added greatly to our marketing abilities.

And, one last piece of advice for your journey: Embrace your failures. Every failure opens a door to a new opportunity. Take time to grieve for the lost dream, take time to go over the details and learn what you did to get you in this position. But once that self-examination is done, look for the new opportunity. It is always there.

I guess this is the part I love most about being an entrepreneur. Making lemonade out of lemons. What a feeling of accomplishment occurs when I realize we have transformed a tragedy into a great opportunity.

I wish you all the greatest success. This is the BEST time to start a new business. The status quo is broken in many, many industries. And that means opportunity for those that have vision, passion and conviction that they have a new idea, a better way to make a difference in the world.

Back then I thought I wanted to work in the non-profit world where I had extensive personal experience and it was going to be a career change. I began networking and applying to any non-profit organization that I thought could pay me a decent salary.

Nearly a year of interviews with various organizations led to a six month interim General Director’s position at a four branch YMCA.  For the most part the work was enjoyable; however, I quickly realized that it was not what I wanted to be doing, nor did I want to work in the non-profit sector. In fact, I often found myself sitting in an interview wondering why I was there and trying to figure out how I could politely end it.

What I really wanted to do was to be more in control of my own destiny, by having my own business.  I had spent a nearly a whole year looking for work and another six months working in an area where I didn’t want to be in before I started my first business venture.

I’ve had a number of business ventures in the past seventeen years, all of which have prepared me for what I really love doing; coaching, and advising individuals on reaching success in their life and business.  I haven’t completed my journey yet, but I assure you I know exaclty where it is I want to go and accomplish. 

How about you?  Do you know where you want to go? If so, great! Spend time preparing yourself to get there.  If not, take time to analyze yourself to see where it is you really want to go. Zero in on it, and begin to think and prepare yourself to get there.  Keep a positive mental attitude, no matter how difficult that may be at times, and visualize your being where it is you want to be.  You may surprise yourself and get there sooner than you expected.  And, like me, you may not finish up where you thought you would when you started out.

You might want to look at your  business/product/service like a Martian. If such a faraway visitor were to review your business/product/service they would probably ask “99 questions” about “what you do.” Real basic questions such as; “What is that?’ Why do you do it?” What is it for?” 

Think like our Martian friend.  This way you will be more open to change, and to looking at things with a new perspective.  You won’t be locked into your old way of doing things, and will be better equipped to anticipate and see change coming. 

There is no doubt that we are facing unprecedented difficult economic times. Change is occuring more rapidly that any of us could imagine.  Banks and businesses that seemed “rock solid” a few months ago are now on the verge of disappearing.  

A new way of thinking that makes change a friend and forces us to change when we don’t have to might be the ticket to a new competitive advantage in your business.  Use a bit of unconventional wisdom, rather than simply holding on to the old “tried and true” methods.

Many small businesses have discovered that using M.B.A. students can be very beneficial to identify new sources of fundings, discover new marketing ideas, improve marketing strategies,  prepare a business plan, and find ways to operate a business more cost effectively. This help can be crucial in times of economic downturns and developing a competitive edge.

Students typically work in teams of 2 – 10 individuals and work with a business for a semester.  The students skill and experience levels vary, and they are supervised by faculty advisors.  Most are bright, have great ideas, and are energetic and enthusiastic about helping small  businesses.  Some hope that they may even get hired by them after they graduate.

To look into utilizing M.B.A. students in your business, contact the School of Business in your local University or College.  If they do not offer a business consulting program for their M.B.A. students they should be able to refer you to a school that does. Keep in mind programs vary, and you need to thoroughly research the business school and it’s reputation before “signing on with them”.

• Deciding When to Sell. Selling a business requires proper preparation and timing.  Don’t sell your business just because of a short-term downturn in business, or frustration with the way things are going.  Consider your motives for selling and remember the Exit Strategy you prepared.
• Prepare Your Business For The Sale. Consider having a valuation report prepared that would enable you to establish a realistic price for your business.  Make the business as attractive as you can to a prospective buyer(s).  Prepare a strong presentation package covering all aspects of your business.
• Presentation Package. This includes:
  1. A history of the business.
  2. A description of how the business operates.
  3. A description of its legal structure.
  4. A list of suppliers.
  5. An evaluation of the industry and marketplace.
  6. A description of the competition.
  7. A biography of the owners.
  8. A review of key employees, their job descriptions and salaries.
  9. An organization chart.
  10. A disclosure of any litigation or continued liabilities.
  11. Financial Statements of the past 3-5 years.
  12. Owner’s tax returns from the past 3-5 years.
• Price the Business. Some factors to consider in pricing your business:
  1. Profit history.
  2. Profit potential.
  3. Stage in the business cycle of its product/service.
  4. Economic conditions affecting the industry the business is in.
  5. Demand for the business’s product/service.
  6. Goodwill and other intangible factors that can be transfered to the new owner.
  7. Condition of facilities, equipment, and inventory.
  8. Verifiable list of clients.
  9. Skill, knowledge, and morale of employees.
  10. Key employees that will stay with the new owner.
  11. Number and type of business systems in place (ie accounting records, financial, employment, production, etc.)
• Locate Buyers. Some ways this can be accomplished are:
  1. Business Classified ads
  2. Trade Publications
  3. Trade Associations
  4. Business Brokers
  5. Merger & Acquisition Specialists
• Structure The Transaction. It is best to seek the advice of  a professional such as an attorney, accountant, or business broker to help determine the structure the sale. You’ll want to consider such things as: stock sale, installments, leverage, and earn-outs.
• Receiving and Evaluating Offers. The following provisions should be considered when reviewing all offers:
  1. Total price being offered.
  2. All assets and liabilities being purchased.
  3. Terms of sale:
     1. down payment, deposits, financing, date for settlement
     2. condition of the equipment, facilities, and ability to pass all necessary inspections
     3. lease assignments,  pro-rations on as rent, utilities,and taxes
     4. transfer of licenses,
     5. verification of financial statements
     6. wages, and prepaid expenses.
     7. release of liability statement for any pending or potential claims.
     8. an environmental disclosure statement.
  4. How the business is to be operated until settlement are finalized
  5. A resume and financial statement if buyer is an individual or an annual report if it is a company.
  6. If appropriate, a post-acquisition business plans.
• Closing the Sale. In closing the sale use a business or transactional attorney is imperative.

It was featured on www.jaylenosgarage.com.  Leno wanted to replace a broken a part on an early 1900 automobile engine. Because of the age of the part, he could no longer find it, but it could be machined at a high cost and with a high margin for error. 

The 3D scanner took an image of the part and transferred it into a computer.  From here the information gathered regarding size, angles, etc. was placed into a machine that build the prototype from plastic.  Once the plastic part was fabricated, it could be handed to a machinist for manufacturing out of medal. The cost was relative inexpensive and the margin for error nearly nonexistant.

The best thing about the 3D scanner - it is manufactured in the US.  The cost is under $3,000.

Best part, it can be made locally, giving you better control than having it done overseas, where your controls are limited. I’ve had prototypes made overseas which turned out to be a nightmare. Story for another blog.

I was playing golf recently with a former National Football League lineman who is now a successful investment banker (even in these troubled times). 

We came to this one hole known as the “black hole”.  It’s named this because many golfers lose golf balls here and the hole is very difficult. It has a narrow sloping fairway, on the left is a large flood control channel and on the right is a steep hill and fenced off area.  Hitting the ball straight down the fairway from the tee box looks like an ominous task.

Before we teed off, I mentioned to my NFL partner to make sure to avoid the flood control channel. His reply was “What flood control channel”?  He then promptly hit the ball straight down the center of the fairway. A couple of strokes later he pared the hole. Throughout our round of golf I kept noticing how he seemed to focus on where he wanted to hit his ball and not on any of the many obstacles (sand traps, water hazards, etc.) that were on the course.  With few exceptions his ball rarely landed in a “hazard”.

The round of golf turned out to be a good lesson for me. Far too often, we tend to focus on the hazards of business (weak economy, lack of sales, lack of customers, etc.) rather than where we want our business to go (increased sales, positive cash flow, etc.)?  Sometimes, thinking about what we don’t want to happen increases the odds that it will.

I’m not suggesting we ignore any hazard, just that we don’t focus on them. 

1. Clarify your overall purpose for starting the business. Review and evaluate why you started the business and what economic goals you wanted to achieve.
2. Focus on your existing customers. Ask yourself why they are doing business with you. Do you really know their demographic and psychographic make up?  Are they increasing their purchases and is there additional business you can provide them?  It’s a lot more cost effective to keep and grow an existing customer than acquire a new one.Evaluate customers that will help you reach your goals.  Customers that are overly demanding or “difficult” to service will sap your energy and resources at the expense of other customers.  This is more difficult in a retail business, however, with a difficult customer you can politely tell them you are not able to help them.
3. Develop and maintain close personal relationships with your customers. How well do you know your customers?  Identify ways that help you get close to them such as networking through local service clubs, participation in non-profit and civic organizations, sponsorships in local events (golf tournaments, high school sports programs, etc.), a client newsletter, special internet message board, public relation calls (periodic lunches,  “how are you doing calls”, etc.).
4. Strive to become your customers’ preferred choice. Work on positioning your business to be the first thought in their minds when they think of the type of product and or service you provide.  A good way to do this is by continually working to exceed your customers’ expectations.  Another way, is  to help your customer improve their “bottom line”.  Make sure that your customers’ satisfaction is foremost in your mind and your employees’ minds all day, everyday. Always ask your customer “How are we doing?” and “Why are you doing business with us?” You may be surprised at their answers. These will assist you in better servicing your customer as well as help in developing a better marketing strategy for gaining new customers.
5. Be alert to changes taking place in your industry and marketplace, and be willing to embrace it. Keep your eyes on what your competition is doing as well as any new technologies being introduced that can improve your business and competitiveness.  Remember, you operate in a very competitive environment.  Your competition is constantly working to  take customers away from you as you are from them.
6. Be alert to management systems that hinder growth. If you are constantly rushing to “put out fires” or always behind in getting tasks completed you need to evaluate why?  What is happening that is resulting in this type of behavior?
7. Instill a growth mindset in yourself and your employees. Continuously look for new ideas and growth opportunities in your industry.  Have your employees do the same thing. Work to make them part of a team striving for growth.  Don’t forget, though, to step back occasionally and look at your business to determine what would be a good strategic approach to adding new products and or services.

This is done by using resources available outside your company.  Those resources include:  joint ventures, strategic alliances, licensing, franchising, mergers and acquisitions.  We call them resources because they are “tools” or something useable to take your business to the next level.

• Joint Venture: This is a temporary arrangement in which two or more companies join to undertake a project. The joint venture typically disolves after the work is completed. The benefits of working with another company are sharing technology, marketing and management expertise, costs, profits and risks. As an example -  you receive an auditing contact from a large local company and you enter into an agreement with another accounting firm to help you complete the project.
• Strategic Alliances: This is a partnership between two or more companies established to assist each other in building competitive market advantage. Typically a company will have a product or service in one industry and another company in a differnet industry will have a product or service that makes an asscoiation of the two companies mutually beneficial i.e hotels and airlines or airlines and rental cars. Companies generally do not share costs, risks, profits or management. Like joint ventures, it is important to have a clear understanding of the partnership.
• Franchising: This is a strategy whereby you sell the rights to others to use your business name, product or service, and business system.  The development of your business into a franchise operation is a complex operation. To do this it is best to engage the services of a franchise management consulting firm or attorney.
• Licensing: This is a strategy that allows another firm use your intellectual property rights and produce the product or deliver the service in exchange for compensation (royalty). The licensee usually bears the costs of producing and marketing the product and the risk of any potential profit or loss.
• Merger: This is the result of two firms forming one company. Firms merge when they want to diversify or expand their product line or wish to diversify business operations.
• Acquisitions: This is the result of one company purchasing the assets and liabilities of another.  In purchasing another organization, expert legal advice should be sought and careful study of all aspects of the potential sale must be performed as a part of your “Due Diligence.”

Whatever tool you decide to use requires due deligience on your part. Investigate each one thoroughly. In most cases it may require the use of a business professional such as a lawyer, an accountant,or consultant skilled in the specific tool you decide to use.

Here are some considerations to keep in mind when establishing your price:

Product/Service Value. This has to do with how buyers perceive your product or service. It is more than price. The attitude of your employees/staff; the location, the physical presence; the service provided your customer; and the follow-up all add to the value of the product/service.

Volume Objectives. Prices are based upon the amount of market share one wants to achieve. Offering a lower price to increase volume may make you competitive but be careful it does not change the image of how you are perceived.

Business Strategy. How do you want to be perceived? Is your business strategy to be viewed as a price leader or a discounter? A price leader will offer higher prices because they want to be perceived as offering higher quality products or services. Discounters offer the lowest prices hoping to generate a high volume of business.

Business Climate. Economic conditions will determine what a business can charge. When the economy is doing poorly, you may have to price your products to move quickly. Changes in economic conditions can also force the business owners to pass along prices changes to their customers.

Cost. Your price needs cover ALL costs of the product/services and expenses incurred in selling them. A simple formula to follow is:
Selling Price = Your product/service costs + operating expenses + desired profit.

Competition. Keep abreast of what your competitors are offering and at what prices.

Demand. Demand is fickle. Always be aware of what the demand is for your product/service and how you will respond to both a negative (downtrend) or positive (rising) price situation. Also, understand the level of demand required to meet your profit expectations.

Too often we allow fear to stop us from taking the necessary steps to achieving our dream of owning a business. 

Fear is a natural feeling we usually experience whenever we move outside of our comfort zone.  Many times these fears are self-generated as we tend to “fantasize ” about negative outcomes.  Moving outside of our comfort zone can be terrifying; however, we must learn to confront our fears and move forward toward achieving our goals. 

One way to prevent fear from paralyzing us is to scale down to small challenges and work your way up to larger ones.

Another method is to recall your triumphs over fear, such as when you learned to swim, ride a bike, or drive a car. Triumphing over fear will help you gain greater confidence in yourself and your abilities to succeed.  

A third is to “just do it”, that is be willing to take a chance even though you may be afraid. There are plenty of success stories about individuals who were fearful, but moved forward inspite of their fears. Part of their fear was that if they didn’t act, opportunity would pass them by.

Are you going to let opportunity pass you by?

source

Why do you need one?

It will keep you focused as you begin the business. Is it to build wealth,  to secure and/or finance retirement, to leave to a family member, to sell to a larger company, or to go public?  These issues need to be kept clearly in mind as you start the enterprise.

It will enable you to make better decisions for your venture. What type of capitalization do you need? Where will it come from? What type of organizational/legal will you need? What will annual sales/net profits look like? How will the business needs be balanced with your personal life? Your ability to make the right decisions will have a greater impact on the success of your business than how hard you work at it.

It will help you evaluate progress towards your exit. When working towards one of the issues set forth in the first paragraph you will constantly be measuring the company’s performance against your planned exit.

We can offer you expertise, and help you decide if you are ready for such a challenge. The following short, self-assessment exercises will help you discover your willingness and readiness to start your own business. They are not intended to be a measure of your future business success, but they may be helpful in identifying your reasons for starting and operating a business, as well as your suitability.

To begin, circle the number that best represents your reasons for starting a business after each assessment statement.

5 = Extremely important

4 = Very important

3 = Important

2 = Somewhat important

1 = Not important

Starting a business takes a lot of time and energy. A high score indicates that you are probably more willing to invest your time and energy, or “to do what it takes,” to build a business. A lower score indicates that you may not be ready to expend the time and energy needed at this time.

Am I Suited to Owning and Operating a Business?

Success in a career does not necessarily mean success in owning and operating your own business. Successful entrepreneurs possess certain characteristics that may include good health, high tolerance for risk, strong communication skills, technical ability, vision, self-confidence, leadership skills, and the ability to get along with others. For example entrepreneurs typically work long hours when they are starting. Good health goes a long way towards insuring they have the capacity to work these hours. Communication skills, verbal and written, help the entrepreneur convey the vision, show self-confidence and get along with others. Skills interconnect and seldom does an entrepreneur possess everything. The important this is to recognize what skills you have and then use them to create the business.

To learn more about your suitability as an entrepreneur, rate yourself using the chart below. Start by circling the number that best describes you. Please, be honest with yourself. You’ll get a more accurate rating if you can identify with clarity the characteristics that apply to you.

5 = Most like you.

1 = Least like you.

The key is to understand your strengths and weaknesses. A higher score indicates that your chances for achieving success as an entrepreneur are good. A lower score simply means you need to improve in these areas, or find individuals who can augment your skills and fill the roles where these particular characteristics are important.

Have you ever thought about selling snowplows in Saudi Arabia?  Not too many people do, yet Saudi Arabians have been known to use snowplows to blow sand off their driveways.

It may be the furthest thing in your mind to sell snowplows to Saudi Arabians, but what is important to recognize is that there are many opportunities to expand your business worldwide if you’re willing to look for them.  Conducting business overseas is not easy; however, the challenges are not insurmountable.

Forces Affecting Doing Business Overseas.

To successfully compete, business owners need to understand the forces affecting doing business overseas and how to overcome them.

1. Social and Cultural. To succeed you need to understand the social and cultural differences among countries. You must be aware of and sensitive to a country’s language, social values, religious practices, local attitudes, dress, body language, manners and customs, personal communication, and most importantly how they conduct business.  A good motto to follow is “Never assume that what works in one country will work in another.”
2. Economic and Financial. In evaluating the prospects of doing business in a country it is important to understand the stage(s) of economic development of that country.  Is it an emerging economy, is it a cash driven system, is it a free market economy, or is it a government controlled economy? Consider its infrastructure, basic systems of communication, transportation, energy, technology, education, and human capital, as well as currency and conversation rates.
3. Political and Legal.  Consider the stability of the political climate.  Countries will pass laws that protect their own interests often at the expense of foreign businesses.  Countries have established trade restrictions, quotas, embargos and other laws dictating how foreign businesses can operate. American businesses are required to follow U.S. laws and regulations in conducting business overseas.  Sometimes U.S. laws run contrary to beliefs and practices. In many countries this presents a formidable challenge in being competitive.

Strategies for Conducting Business Overseas.

1. Licensing. Allowing a foreign company to produce or market your  product in exchange for a fee.
2. Exporting. Selling your product in another country.  To assist you in doing this the U.S. government has established Export Assistance Centers (EACs). There are also export-trading companies that can assist you in negotiating and establishing desired trading relationships.
3. Franchising. Selling the rights to use the business name and sell a product/service to others in a given territory.  It may be necessary to adapt your product/service to the countries you franchise.
4. Joint Venture. Developing a partnership with a foreign company to enter a country’s marketplace.
5. Strategic Alliance. This is a long term partnership between two or more companies established to help each company build competitive market advantage.   In overseas markets this can be very beneficial in getting your product/service into the market cost effectively.
6. Foreign Subsidiary. A US company owning and operating a separate company in a foreign country .
7. Outsourcing. Having a foreign country produce private label goods to which the domestic company attaches its name or trademark. Such a practice can reduce production costs.

What Is A Succession Plan? It is a statement of how you will transfer the business, including values, ethics, and traditions of the founders, to an identified individual, corporation or family member to smoothly continue its operation.

Developing a Succession Strategy

Time. The earlier the business owner plans for a successor the better.

Capabilities of the Owner’s Successor. The knowledge, skills, expertise, and desires of the owner’s successor will determine the future potential and direction of the business. For example, a business that relied on the owner’s  personal contacts throughout the industry may  have difficulty finding a successor with similar contacts.

Owner’s Vision. Unless a new vision or direction is needed to insure success of the operation, the successor should share the owner’s vision and expectations for the business.

Identifying the Successors Characteristics. In addition to the capabilities mention in #2, the successor should  have good health, energy, enthusiasm, maturity, honesty, problem solving and planning abilities, organizational skills, people skills, and a strong interest in the business.

Implementation of the Succession Plan. This requires grooming an heir, mentoring an employee, or working closely with an outside associate. Also, it is important to agree upon a plan of action by those most affected by it. Be prepared for unlikely events with a documented method of transfer.

In the city of Wanzhou, three thousand small, privately owned firms have joined together to manufacture cigarette lighters.  In 2002 they made 750 million lighters, 70% of the world demand!  In the city of Datong, entrepreneurial companies manufacture 8 billion pairs of socks a year from 8,000 factories – one third of the world supply!  These privately owned businesses are generating wealth.  The province’s per capita annual income is $1,500, the third highest in China after Shanghai and Beijing and they boast 70 of the 460 richest Chinese.  In Zheijiang province, 90% of the companies are private ventures started by Chinese entrepreneurs.

Guangdong and Jiangsu provinces are also prime examples of successful entrepreneurial ventures financed primarily by investors from Hong Kong and Taiwan.

These examples illustrate the dynamic growth of private companies in China that are springing up due to the inefficiencies and non productive activities of state owned companies.  The trend in China is toward privatization with the leadership of that movement coming from young entrepreneurs who are risk prone and getting their funding from local money lenders with minimum interference from local and central government.

It is difficult to come up with accurate statistical data, but a Beijing think tank estimates that the private sector contributes over 60 percent of China’s GNP.  It is the “most dynamic segment of the Chinese economy” growing at the rate of 20% a year and creating 20 million jobs in the last five years.

Many of the companies funded by entrepreneurs in China are small, employing less than 10 people and tend to concentrate on domestic rather than international business.  However, there are exceptions such as Haier, a leading manufacturer of consumer appliances, Pearl Rive Pianos, the world’s second largest piano manufacturer and Legend, one of the worlds largest chip manufacturers.

The entrepreneur in China faces many challenges and it requires patience and fortitude to establish and maintain a private business.  Government rules and regulations are complex and the government’s desire to take equity in private entrepreneurs sometimes is confusing.  But perhaps the biggest obstacle to the Chinese entrepreneur is lack of access to capital and more favorable treatment to the state owned enterprises.  Loans from banks and financial institutions go mostly to state owned enterprises even though they are poorer credit risks.  This forces the entrepreneur to rely on money raised from family, friends, and retained earnings.  Stock market listings are also difficult to obtain for the private entrepreneurial company.  Management is also an issue for the private company, since most are small, family run firms which limit there growth potential and global presence.

In my judgment, the growth and development of the private sector and the encouragement of an entrepreneurial spirit should be vigorously supported by American private enterprise.  It is the key to economic growth in China and provides a strong linkage between our two countries.  There are several million entrepreneurial companies in China who are creating jobs and contributing to the stability of the economy.

We have thousands of small entrepreneurial companies in the San Gabriel and San Fernando Valleys who should be more closely linked with their counterparts in China.  One of the challenges we have is to provide these entrepreneurs the opportunity to do business together and thoroughly strengthen the entrepreneurial spirit in both countries.

As a college professor, who teaches classes on Marketing and a Boomer myself, the impact of the Baby Boomers has loomed large in my thinking. A few years ago, shortly after I began a discussion of generational marketing with my Consumer Behavior class, a “well-inked and pierced” young woman piped up and demanded that I not discuss the group any further.

Seems she was sick and tired of Boomers and wanted to hear nothing more about them. I noted her objection, thanked her for her opinion, and then proceeded to remind my Gen-X class that while Boomers might pose a pain in the “tush” to them personally, it’s the short-sighted marketer who ignores them.

As a Boomer, perhaps I should have been offended at my student’s outburst. No doubt it was over the top for her to request that a marketing professor lop off the largest single consuming group in the history of humankind. Yet, I must agree with her that my generation can be a hard pill to swallow.

Wasn’t it we Boomers who stormed university campuses in the 60’s and 70’s with all the finesse of advancing army ants? The least I could do was give an ear to her complaint.

Fortunately, the angst-ridden “Gen X-ers” in my classes finally gave way to the mellower “Gen-Y,” (also called the Boomerang Generation or Millennials) born between 1981 and 1995, and the openly hostile anti-boomer sentiment waned.
Yet, underlying tension still remains. It isn’t just those who came after us who get hot under the collar about Boomers and our narcissistic ways. My husband, who was born just before the Boomer juggernaut, holds a distinct dislike of my generation. It makes for an interesting marriage.

I cheerfully remind him on occasion that he willingly chose to pair-up with a quintessential Boomer, but I have made little headway in changing his way of thinking. We Boomers simply baffle his perception of the universal order.
There’s even discord within the ranks. A couple of years ago I read a letter to the editor of “More,” a magazine on lifestyle and beauty for mid-life women, from a younger Boomer in her forties who took umbrage at being lumped into the same demographic lot as the older Boomers.

Evidently, coming-of-age in the post-Kennedy/Viet Nam era warrants special understanding, not to mention a targeted marketing approach. I’d been hearing serious rumblings of this elsewhere in marketing circles.

In 2000, I experienced the discomfort of being caught in a marketing net that was cast too widely when a top-tier company hired me as a spokesperson to help launch a hair product for women who wanted to keep and enhance their gray hair rather than color it.

I was recruited because of my book on mid-life beauty and aging that was published in 1997. I worked the TV morning talk show circuit as an author, discussing my book for a while, and then ever-so-subtly slipped in a plug for the product. On cue, the director would cut to headshots of women models on whom the product had been used. Afterward, the hostess and I would casually chat for a minute or two about this new understanding of graying with both dignity and fashion in mind.

What got my marketing goat each time the video rolled was that none of the models seemed age appropriate to me. They were either too young (i.e. pre-mature gray in their early 40’s) or too old (i.e. very gray) for the promo. Sure enough, although the product was well-researched, well-developed and well-packaged, it failed. A company is doomed if it delivers an advertising message that blurs generational lines.

Recently, when PBS aired a documentary aptly titled “The Boomer Century: 1946-2046” critics of my generation had a field day.

Mary McNamara of the Los Angeles Times wrote, “On the whole, ‘Century’ is hobbled by the self-fascination, and self-congratulation, of which its subject has been so long accused.”

This may or may not be a fair assessment of the documentary. But I suspect it was instead Ms. McNamara’s personal assessment of the Boomer Generation.
If so my response to her is this: “You might well find justifiable fault with the Boomers, but as someone whose livelihood depends on marketing and advertising, you’d be foolish to ignore or offend the 78 million or so folks who populate it.

Copyright 2007 Karen Kaigler-Walker All Rights Reserved. This article first appeared on www.givingyouavoice.com

Come Sunday noon, lines of shopped-out Angelinos talked of deals made, deals lost, and deals that “should” have been, as they waited to board jumbo jets for the flight home.

Such were the days of the strong American dollar, low airfares, and no airline baggage weight restrictions. At the time, mainland China’s depended on Hong Kong as the primary outlet for its endless supply of manufactured designer goods, brand-name sportswear and cheap knock-offs.

Today, however, Hong Kong’s golden-era as the place to shop in Asia is long past. The pan-Asian economic depression of the 1990’s cut deep into the pocketbooks of wealthy Taiwanese, Japanese, Indonesian and Southeast Asians who made up the lion’s share of Hong Kong shoppers. The setback also eroded incomes of the newly emerging middle and upper-classes of Chinese who had begun to flock to Hong Kong to buy consumer goods not available in China.

By the time the Chinese economy began to rebound in 1999, Hong Kong had lost its role as the major marketplace of Asia. Mainland Chinese demand for easily obtained products and an upsurge in tourism in China had created demand in Shanghai and other major Chinese cities for goods once available only in Hong Kong. International tourism in China took an upswing, placing China third in the ranks of world travel destinations. Finally, over the years, prices in Hong Kong shot up, further diminishing its reputation a shopping Mecca.

I first visited China nearly 20 years ago when the Friendship Stores, located (only in) Beijing and other large cities, were the sole place foreigners were welcome to buy goods — mostly handmade souvenirs from the various provinces. When I returned to China in 1999, the Friendship Stores were being edged out by local outdoor markets, such as the Yu Yuan Gardens in Shanghai and Beijing’s Silk Alley. Offering low-end Chinese merchandise and designer knock-offs, they provided excellent shopping for bargain hunters and those with an eye for good-quality fakes.

By 2004 the retailing scene had shifted further. Although the open markets still snared a goodly share of international tourist dollars, shopping centers selling low-end Chinese goods had captured the local trade. Here and there, city retailers offered good-quality, trendy fashion items. A few boasted high-end fashions from France and Italy. Tourists, however, found such stores hard to navigate. In both Zhengzhou and Hangzhou I was forced to take along translators and found that many shops didn’t take credit cards.

Today, shoppers can still bargain for knock-off Chanel bags and Rolexes on China’s streets and out-of-the-way shops, but what’s new are well-lighted, air-conditioned shopping malls that boast International ATM’s, McDonald’s and Starbucks. English-speaking salespeople offer a full spate of Chinese and international clothing, appliances and cosmetics. Even more staggering is number of upscale retailers and international designer shops. With more millionaires and billionaires than any other country in the world, China has become the world’s largest market for luxury brands.

What tickles my fancy, however, is that China now is a hub for fashion-forward shoppers who want cutting-edge styles at reasonable prices — a nod from the Chinese fashion industry to the millions of emerging upper-middle class Chinese women with international tastes and discretionary money in their pockets.  Much to the chagrin of the American fashion industry, such manufacturers are taking their design cues from Japan and Europe and turning out new looks with a distinctly Chinese twist — Chinese fashions that are unavailable outside China.

I recently flew into LAX from Beijing feeling that I had shopped my way across China, although the purpose of my trip had been work that required me to criss-cross the country for three weeks. But by the end of the trip, my bags bulged with new slacks, tops, dresses, and shoes that look better and cost less than anything I can find in LA.

Is it worth the airfare to China merely to shop as in the old days of tripping off to Hong Kong? Probably not, given today’s ticket prices and the restrictions on baggage weight. But for those who travel to China for vacation or work, and enjoy shopping, it’s well worth the time and energy to check out the Chinese fashion scene.

Copyright 2007 Karen Kaigler Walker All Rights Reserved. This article was first published on www.givingyouavoice.com.

It is important you obtain as much information as possible before making a decision. Your analysis of this information should give you a clear indication of whether to buy or not. If the seller is withholding any information it should be a red flag that something may not be quite right.  Exercise caution and good judgment; do not base your decision on emotion or your passion to own a business.

You should seek professional assistance (lawyers, accountants, business evaluation experts, etc.) before moving forward with the purchase.

Here are some factors that to consider when deciding to buy your own business:

• Your motives for purchasing the business.
• Your criteria for selecting the type of business to purchase.
• Your experience in running a business – especially the type you’re looking at buying.
• Will you be able to retain key employees after the change of ownership?
• The profitability and financial stability of the business.
• The cost of the business and how much money you are willing to invest .
• The location of the business.
• The industry in which the business competes.
• The marketplace in which the business competes
• The competition and the business’ market share.
• The current customer base.
• The stage of the product/service life cycle.
• The reputation of the business.
• The reason(s) the business is for sale.
• Determine exactly what you will be buying and its current value.
• Determine outstanding debts (back taxes, liens, etc).
• Review the history of the business and how it has changed (if it has) since its beginnings.
• Review financial statements and tax returns for the past three years.
• Are legal issues facing the business such as law suits, OSHA requirements, state requirements, and zoning requirements.
• Review the articles of incorporation, minute books, bylaws, partnership agreements, union contracts, lease agreements, and insurance policies.
• What is the condition of the inventory - deteriorated, salable, or out of date?

Along with the above, some typical advantages to buying a business include:

• It can save time, money, and effort by not going through a start up phase of a new business.
• It enables you to make immediate decisions about product line, service, and other details of the enterprise.
• An existing business has an established customer base.
• An existing business has an established business reputation (good will) within its community and industry.
• An existing business has an established legal structure.
• An existing business has (or should have) a workable business plan.
• An existing business has management and operational systems in place.
• An existing business has established suppliers.
• An existing business has a proven product line and/or service.
• One can often utilize the experience of the seller in operating the company.

Disadvantages include:

• You inherit the existing problems of the business.
• You may not be able to completely develop something unique about the business.
• Existing employees may decide to leave (retire, etc.) once the business is sold.
• You may be faced with new business licenses and permit requirements and fees.
• You may be locked into existing suppliers, employee benefits  and operating procedures.
• It may be time consuming to determine where the product or service is in its life cycle.
• Growth rate of the business may be slower because it is established and has an existing reputation.

Bottom line, buying a business requires considerable thought about your own situation first. After this, all due diligence must be exercised to analyze and establish a value of the business. The latter should always be done with professional assistance.

The handbook should cover everything an employee needs to know to ensure a successful career at your company.  In addition to the above, it shold also include a description of work hours, overtime pay, vacation policy, holidays, dress code, employee hygiene, employee benefits, a glossary of terminology important to your business, and an organization chart.

By providing an employee handbook you do not want to give the impression that you are guaranteeing lifetime employement.  The handbook should cover all legal notification requirements to prevent lawsuits, but don’t try to spell out what an employee should do in every situation.

We’ll have an article coming out soon describing in more detail what an employee handbook should contain. 

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What Is a Franchise?

A Franchise is the right or license that a company (franchisor) gives to an individual (franchisee) to use its name, trademark, products and business system.  The franchisor owns the right to the name and system and sells the right to use the name of system to an individual. Generally there is an agreement between both parties that specifies what the franchisor will do for the franchisee and what is expected (fees, participation in advertising, promotions, use of supplies etc,).

Is Purchasing a Franchise Right For You?

1. Examine what you like to do and your abilities to do it.
2. Can you work in a restrictive business system that comes with purchasing a franchise?
3. Can you really make a living or reach your financial goals by owning a franchise?
4. Will you enjoy being a franchise owner?
5. Will your family support your decision to purchase/own a franchise?
6. How much support (technical, management, etc.) do you need in starting and operating a business?

How do I Choose The Right Franchise?

1. What type(s) of business(es) interest you?
2. Are their products/services new or established?
3. How strong is the market for their product/service?
4. How strong is the competition in your geographic market for the types of products/services your  considering offering?
5. Would the business venture(s) be successful on their own?
6. Examine various franchise opportunities of interest to you. A good place to start is with the International Franchise Association  (IFA).
7. Narrow those options to the ones you’re most interest in.
8. Contact all of the franchise companies operating the types of businesses you’re interested in and have them send information. Information should be sent at no cost.

Homework To Do Before Purchasing a Franchise

Investigate the franchises. You can do this by going on-line or to your local library to review new articles that may be published about each franchise being considered. What type of reputation do they enjoy?

1. Speak with franchisees and visit one or more of those franchises. Observe their operations, location, facility, and employees?
2. Check with the Federal Trade Commission or regulators in your state to determine if there are any problems or complaints about the franchise(s) you are considering.
3. Check to see if they are listed with Dunn& Bradstreet (D & B) and if so, request a report that will provide details about the company.
4. Check if the franchise is a member of the International Franchise Association (IFA). If not, why?
5. Evaluate the reputation, financial strength, and overall stability of the franchise.
6. Determine the financial condition by asking for the franchisor’s financial reports and if possible their corporate tax returns for the last three (3) years. Ask for a franchise disclosure document which must be provided at least 10 days before a purchase can occur.
7. Investigate the backgrounds of the principal officers and other owners.
8. Examine the attitudes of the franchiser towards you.Do they want to build a long-term relationship or just interested in getting you to quickly sign an agreement?
9. Ask how long the franchisor has been in business, how many franchises have they granted and how long have they been granting franchises.
10. Determine the demand for their product and service.Compare their product/service with the competition.
11. Examine their potential for growth within their industry.
12. Examine their assignment of territory offered.Is the territory exclusive? How close are other franchises to the territory you are considering?
13. Examine what the franchisor is going to require of you in the way of fees, royalties, inventory purchases, sales quotas, participation in promotional activities, co-op advertising, reselling the franchise, and renewal rights.
14. Examine what the franchisor will do for you in the way of providing training and training aids (operation manuals), assistance in finding (lease or purchase) a location, supplying management systems (accounting, marketing, purchasing, personnel, financial planning(etc.), supplier contacts, and advertising.

Seek Professional Advice

While doing your homework (“due diligence”) as described above you should seek the assistance from a accountant, franchise consultant, business advisor, or franchise attorney.  The cost of their advice is well worth it in saving you from spending needless amounts of money not to mention the frustrations you will experience by purchasing the wrong franchise.

Here are some tips on preparing and launching a direct-mail campaign:

1.  Develop A Direct Mail Campaign Strategy. This involves developing a long range plan: when will you mail pieces (monthly, quarterly, etc.), how will it be delivered (mail, internet,), how much you’re willing to spend, and to whom you intend to reach.  Also decide on the results you are seeking - increased sales,  new leads, better branding or all of these.

2.  Systematize Your Direct Mail Campaign. If you plan to send out four mailings a year, determine when you want the direct mail piece to be received by your target market and work backwards as to when the piece needs to be developed and when it has to be mailed.  A master schedule should be developed so that those in charge of the campaign know exactly when everything has to be completed.

3.  Make Your Piece Stand Out. Odd-sized mailers often help your piece stand out from the dozens of pieces sent out each week.  One client I work with has a piece that features a picture of a comically dressed lady that people actually keep on their refrigerator for laughs.  It also is a continual reminder of the products and services offered.  Many times individuals call months after receiving the mailer.

4.  Double check Your Mailing Lists. The average response rate to direct mail is about 2%.  The percentage increases the more accurately you identify your target audience.  If you purchase a mailing list, make sure you double check to insure the information is accurate and current .

5.  Consider Using An Outside Marketing Company.  Depending upon the size of the campaign or mailing,  consider using a company that specializes in direct mail.  It could  make your life a whole lot easier.

6.  Follow Up, Follow Up, Follow Up.   Once you’ve sent out the piece have a plan to follow up to measure your impact. This is crucial to make sure you stay in front of your customers and be ready to act when they are ready to buy your product or service.

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Those of us who have been through an IRS or state tax audit know how stressful they can be.  Here are some tips to better prepare you should your business be one of the “chosen” to have the records audited.

1.  Not all accountants have experience in dealing with an IRS or state tax audit. If your accountant is not experienced in working with these agencies,  hire a tax accountant – someone who specializes in appearing before these units.

 2.  Keep good bookkeeping and accounting records. This will always help you know where your business stands financially.

3.  Develop an understanding about the tax law(s) as they apply to your industry/business. Either invest in a copy of these codes or become familiar where you can find them. Then take the time to read up on those that apply directly to your industry. You can also be proactive by calling a local IRS or state office when a tax question comes up and ask for an answer.  Then leave the conversation by asking the agent if they wouldn’t mind you calling them from time to time for clarification on tax related matters.

Feel free to add to this list.  I’m sure there are many of you out there that could benefit from it.

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1.  Develop A Realistic Budget.  This starts with completing a realistic assessment of how money flows in and out of your home/business. List where your income comes from and how you spent it.  Identify the necessary expenses and prioritize the rest.  In tough economic times, it may be best to forgo those expenses that are not absolutely necessary.

2.  Work With Your Creditors.  If you are having difficulty making ends meet, contact your creditors and try to work out a payment plan that reduces your payments to a more manageable level(s).  Do this before you get too deep in debt, and before they start calling you.

3.  Seek Credit Counseling. This can be in the way of a good accountant or credit counseling service. They can assist you in keeping track of your bills, income, and setting up a debt reduction plan.

There are two other options; debt consolidation and bankruptcy.  We don’t necessarily recommend either, unless it is a last resort.  Debt consolidation loans, can be very costly as you pay “points” on the amount you borrow in addition to interest.  Bankruptcy will stay with you for 10 years, and will make it very difficult to get credit.

Set up a good financial plan now!  Don’t wait until you’re over your head in debt to do something.

Ever feel down and out, that life has passed you by, that you are a born loser?  I think there are times when most of us have felt that way.   Truth of the matter is, many of us, including me, have had more victories than failures.  

One way to focus on our victories is to keep a Victory Log – a written record of your successes.   It can be as simple of keeping a spiral notebook or a file on your computer.  Just record your successes each day;  finishing a book you are reading, getting your teenager to clean his/her room, learning to ski, acquiring a new customer, or starting your new  business.

I started my Victory Log in 1992 with a small spiral notebook and have over 250 recorded victories thus far and growing.  That’s nearly 17 victories a year!  Far more than any failures I’ve had.  I use it as a source of inspiration regularly.

I suggest you start your Victory Log today, and update it daily.  Every time you’re feeling down go to your Victory Log and read your entries. You might find it a Great Tool for Encouragement.

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There’s a lot of truth to the title of this blog.   Just like those who are addicted to drugs find it difficult to rid themselves of using this substance, there are those who are so used to receiving a steady paycheck they can’t  give it up to own their own business. 

They fear losing what they have already achieved rather than taking the risk of doing what it takes to become independent. These individuals may have the experience and knowledge to start their own business yet they hesitate. They’ve spent too many years building up their wealth, or “company” career, they reason, not to lose it pursuing a risky venture. 

But does that have to be the case?  I am not suggesting “quiting your day job” and going off half cocked on some reckless venture.  But rather, making a deep assessment of yourself, and where you want to go with the rest of you life. If having your own business has always been a dream of yours, why not take a closer look at how you can achieve this? 

Assess your talents, knowledge, skills, risk tolerance, your attitude toward failure, and your business idea.  Then , perhaps with the help of a business coach or a web site like this one, conduct some research on the feasibility of putting your idea into action.  If it makes sense to you, “Go For It!”   You will never achieve your dream of owning your own business unless you do.

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It has often been said that more business is conducted on the golf course than in the office.  Whether or not that is true is subject to debate.  However, there is no doubt that a significant amount of “business” and business talk is conducted on the golf course.  I’ve conducted a fair amount of it there myself.

The nature of the game of golf gives you so much time with a client, employees, prospects, or even job applicants.  It may be difficult to schedule a “5 hour meeting”, but with golf you’re spending nearly that much time (or longer) with an individual.  Golf is a great way to build relationships and really discover who you are going to or are doing business with.  Here’s some tips on how to conduct yourself on the golf course to insure you build the right relationships.

1.  Choose the Right Course.  If you’re the host, make sure you select a course that is appropriate to    your guests level of play.

2.  Dress Appropriately.T-shirts and tank tops (no matter how hot) are not appropriate for most courses. Dress in nice slacks or shorts with matching golf shirt.  Look sharp without overdoing it.

3.  Set the “Tone” of Play.  Set the tone when you schedule the match. Restate your intentions before you go to the first tee.

4.  Keep the Conversation Casual.  Remember you are out to build relationships first, and sell second. If you try to be too aggressive you not only ruin what could be a good day on the course, but run the risk of your guest wanting to leave early.

5.  Keep your Cell Phone Off.  Focus on your guest.  There is nothing that could be more annoying to your guest than you constantly stopping to take a phone call.  Taking a call could also slow down play and interrupt ones “flow of play”.

6.  Keep Your Cool.  Golf can be a frustrating game, but tossing a club because of a bad shot says a lot about how you might react in a real crisis.  It also says the same about your guest.

7.  Compliment Judiciously.  When someone make a good shot, compliment them.  However, you don’t want to go overboard otherwise your compliments may be taken as patronizing rather than uplifting.

8.  Always Be Gracious.  Help your guest find out-of-bounds balls.  Pick up their clubs and be “quick” to tend the flag.  Don’t make a big issue on the course if you note your guest has violated a rule; kindly make them aware of their violation and move on.

9.  Never, Never, Cheat.  Little things can tell a lot. Keep  an accurate count of your strokes; hit your ball from where it lies (unless your partner agrees that it can be moved). These are some of the “ethical issues” you face on the course that can make or break a relationship.

10. Enjoy the 19th Hole, but Don’t Sink in It.  One too many rounds could lead to disaster. Always maintain control self-control,  and watch that your guests doesn’t become too indulgent.

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Earlier today I was  in one of my favorite coffee shops  and noticed an announcement for a singer to appear at a local venue.  Having worked with this individual in the past, seeing the poster reminded me of her enthusiasm and desire to “make it in the business.” 

A tool she uses to keep her focused ”making it in the business” is a “Vision Board”. A Vision Board is simply a white (actually could be any color) poster board where you paste pictures that provide a vision of what it is you want to achieve.  For example, if you want to own a big house in the country, you would cut a picture out of a magazine of a house that most resembles the house you want and paste it on the board.  You’d repeat the same procedure for all your goals, until the board is filled with all you want to achieve.  Then mount it on a wall in whatever room you spend a lot of time.  It will constantly be a reminder of what you want to achieve.

My former client - I can see she is achieving some of the items on her board.  Why don’t you try it too. You may achieve more than you’ve anticipated.

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Do you love to fish, play golf, paint, snow ski, write poetry, or do woodworking?  Ever wish you could make a living at what you do for pleasure?  Who says you can’t?  Here’s some points to consider:

1.  Decide that you want to turn what you do for pleasure into a business.

2.  Determine if there is a need in the marketplace for your product or service.

3.  Identify if anyone else (competition) is doing what you want to do. 

4.  Evaluate your personal experience and expertise in starting and making the business viable.

5.  Determine your risk tolerance for starting a business.

6.  Estimate the profitability and growth potential of your business idea.

7.  Prepare a comprehensive written business plan.

8.  Seek and find a business mentor/coach who can assist you in your business venture.

9.  GO FOR IT!!

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It is  easy to pile up debt and get behind in paying off the balance.  Also credit card interest rates can change with the owners credit score.  Keep in mind credit card companies can keep changing the terms and conditions of your “loan” based upon your spending habits with the card.  As our economy gets worse, and lenders get tighter with lending money, the temptation to pull out the plastic is greater than ever.  Using your credit card to finance your business can work, but for it to do so, you really need to manage it’s use well, which in our opinion is use it very very sparingly.

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Every week during football season, a fellow by the name of Joe Cahn, 59,  tailgates before and after college and NFL football games as well as NASCAR races.  A retired businessman , Cahn, has a 40 foot motor home in which he travels to sporting events throughout the country collecting demographic data for Coca Cola, Campbells, Bullseye Barbecue Sauce and other corporate sponsors. 

He meets lots of interesting  people and helps companies learn what people are eating and drinking at tailgate parties.  He never attends the actual event; he is, after all, The Commissioner of Tailgating.

It shows how creative some people can be when it comes to “developing a business” after retirement.   Know of an interesting/unique occupation for our readers?  Pass it along. 

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To be frank, in my opinion, not very.  What is important is the execution of that business idea.  That is, taking it from the dreaming stage and making it a reality.  This takes a lot of work, resourcefulness, determination and drive.

There have been many individuals who have come up with good business ideas only to see them fail, or be capitalized on by someone else. Just because you have a good idea, doesn’t necessarily mean it will be a successful idea unless you develop a sound strategy to “make it happen.”

So, if you’re really excited about your idea, take the appropiate steps to make that idea become a reality.

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She founded the marketing agency Smith Asbury Inc. in 1987, serving individuals and organizations who are visionary experts in their respective industries.  With her husband and partner, Greg Asbury, she has founded additional businesses including Mocca, a text messaging firm; Mitra Publishing Group, a boutique publishing firm; and Carolina Precision Manufacturing, producing small precision parts.

She has helped many leaders fulfill their vision by defining the distinguishing attributes of their product or service.  She believes that it is essential for an organization to have alignment on their brand identity, and works with her clients and their various stakeholders to achieve that alignment as a foundation for marketing campaigns.

She is currently developing her own body of work in marketing, exploring the subtle shift of communicating from a perspective of “we” rather then the traditional us/them paradigm.  Marketing, by its nature, defines “target” audiences and segments customer groups in order to direct key messages to them.  But underneath those actions, marketing campaigns have greater success when there is a clear perception that there is no “them” in reality: clients and customers alike are part of the vast interconnected network.

Dedicated to giving back, Judy currently serves as the President of the Board of Directors for Mothers’ Club Family Learning Center, a critically acclaimed two-generation learning center. She has been active in a variety of community organizations, including Rotary Club of Pasadena, Old Pasadena Business Improvement Center and the Chamber of Commerce and is a member
of the distinguished Counselor’s Academy of the Public Relations Society of America.

Prior to founding Smith Asbury Inc. in 1987, Smith served as Director of Public Relations for USC College of Continuing Education and Account Supervisor for a Los Angeles-based public relations agency.

She lives in Sierra Madre with her husband and partner Greg Asbury, and their 13-year old son, Ryan.

Profession: Marketing
Website: Smith Asbury

Noteworthy:
Mercedes Benz R-Class, B-Class strategic marketing work on University campus with client principal as marketing professor.
(2007-2008)

Speech to the Jonathan Club (among top ten oratory venues nation-wide) on ‘Cybercentrism: The New e-Commerce Business Model’ (March 18, 2003).

Profession: Marketing

Mr. Harwood is the Founder and President of Total HR Management, a company providing strategic and administrative HR management solutions with an exclusive focus on the small business market. Total HR Management provides a variety of HR services on an outsource basis.  http://www.totalhrmanagement.com

As a part-time faculty member at Woodbury University, Harwood teaches courses in multiple departments including Psychology, Management and Organization Leadership.  Courses taught include Human Resources, Influence and Persuasion, Personality Theory, Leadership, Organizational Behavior, Organizational Communication, Workplace Diversity, Labor Relations and Conflict Management. http://www.woodbury.edu

Profession: Business Consultant
Website: Total HR Management

Since the company’s beginnings in 1992, her client list has included Earthlink, Cedars-Sinai, Georgetown University, Art Center College of Design, Rusnak Automotive Group, San Diego Polo Club, See’s Candies, Cal Tech and Whole Foods Market. Majcher has also produced notable events for the Hollywood Bowl, the Critics’ Choice Awards, luxury car manufacturers Porsche and Rolls Royce’s Bentley brand as well as celebrations for Britney Spears, Jennifer Love Hewitt and Ross McCall, Pierce Brosnan, Katherine Heigl, Snoop Dogg and Cesar Millan (Dog Whisperer). From understated elegance to rock star fabulous, Majcher is known for creating the most well talked about parties of the year.

As a regular on air contributor to the nationally televised Fox and Friends program and with appearances on Entertainment Tonight, CBS Morning News in Los Angeles, HGTV, KABC – Los Angeles, E!, The Wedding Channel and MTV, Majcher is the expert that people turn to for all things entertaining. Her featured articles and interviews in such publications as The Wall Street Journal, Fortune, In Style Weddings, BusinessWeek, Entrepreneur Magazine, The Robb Report, OK! and Us Weekly, have allowed Majcher to champion her unique style and inspire many to create lasting memories of their own. And, in addition to guest spots on various radio programs such as Martha Stewart’s Sirius Radio show and speaking engagements across the United States on small business, entrepreneurship and entertaining, Majcher has contributed to several books including Extreme Entertaining Made Simple, by Eduardo Xol, the star of “Extreme Makeover: Home Edition,” Restaurant Newsletters that Pay Off, Nobody’s Business But Your Own and How to Plan an Elegant Second Wedding.

In Majcher’s home town of Pasadena, California, she has served on the Board of the Pasadena Chamber of Commerce and chaired its’ Million Dollar Business Series, which showcased entrepreneurs whose businesses grossed at least one million dollars in annual sales and was meant to inspire individuals through entrepreneurial success stories. She has won the Chamber’s Entrepreneur of the Year Award three years in a row and was named an Outstanding Young Woman of America. In 2006, she was honored by the State of California as Small Businesswoman of the Year and in January of 2009, Majcher was honored by Pasadena Magazine, a premier lifestyle magazine,  as one of their “40 under 40”.  Winners included those who give back to their city and keep it vibrant and energized.

Majcher is a graduate of the Georgetown University School of Business where she earned a degree in Marketing with a focus on Entrepreneurship. With her continuing desire to be on the leading edge of gastronomy and design for her company and clients, Majcher has blanched, flambéed and fricasseed her way through the Smithsonian Institution’s culinary series and cooking schools in both Paris and Normandy. She is constantly seeking out cool and creative individuals with style and personality to work with and attends premier design exhibitions whenever she can. Majcher currently spends any free time she might have, usually between 10:45pm and 11:15pm on Tuesdays planning her own annual blowout party every November.

Profession: Event Planning
Website: The Party Goddess! Inc.

He has developed several workshops that explain the ins and outs of business success and the complexities of business laws, all with a sense of humor and without the confusing jargon. He is a speaker / facilitator of the famous “My Own Business” workshop program and has conducted the workshops for Rio Hondo College as well as at the Federal Correctional Institution at Terminal Island, California. He has written a number of articles on legal and business issues and is well known for his many public speaking appearances before college classes, chambers of commerce, and government agency sponsored events.

His Pro Bono activities include helping Non-Profits and their management. He earned his Juris Doctor degree at Southwestern University School of Law and his Bachelor of Science degree in Business Administration from California State University at Los Angeles.

A practicing attorney, he is a member of the California State Bar and has been admitted to practice before the Supreme Court of the State of California, the United States Federal Courts of Appeal’s 9th Circuit, and the U.S. District Courts for both the Central and Southern Districts of California.

Profession: Legal Services

Many times when an individual’s business is slowing down the immediate reaction is to increase the marketing efforts to gain new clients.  Often times, however, to gain “new business” an individual really has to look no further than their existing customer list.

I remember one such client – an advertising specialties company.  She had a client list to “die for”.  Many of her clients were Fortune 500 companies or large municipalities. Whenever business got slow, she wanted to go out and “bring in new customers”.

It was suggested that she look at her existing client base and try to market to other departments within the companies she was currently servicing.  Other departments were purchasing the same products and services she was providing from other suppliers.

Since she was already on the approved vendor list, it would be much easier and more cost effective for her to solicit those other departments rather than solicit new companies.  She hadn’t thought of that, and immediately began to seek other departments within her current client companies.  The result, her business began to grow.

If you’re looking to increase your business,  you need to look no further than your existing customers and work your customer list.

Business contributes to the standard of living and quality of life of all nations, regardless of political systems. It provides jobs, pay taxes, and contributes to various charitable organizations. The money businesses and its employees spend leads to the building of schools, hospitals, libraries, parks and roads. Businesses provide the goods and services you and I purchase and  wealth to owners. Each of these contributes to the raising of our standard of living.

Business also impacts the Quality of Life, such as our political and religious freedom, our health and safety, our environment, our education, and our freedoms of speech, property ownership, right to compete, own a business, and land ownership.

How these efforts are conducted are subject to great interpretation. A responsible and forward thinking business community invariably can raise the standard of living and promote a quality of life.

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An individual I just met over the telephone passed on to me information about a TV show called the Big Idea that addresses the naysayers of business ideas.  It is on CNBC at 7:00pm and 10:00pm daily.  The host David Deutsch interviews and discusses principles of business success with many individuals who “rose from nothing” to become “self-made” millionaires.  I found the stories of the various individuals inspiring, but the host was a bit too “on” for me..

They have a web site – www.BigIdeaCNBC.com you may want to check out.

In another blog I’ll address some tips they gave to achieving a successful business.

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Do your employees know where they stand regarding vacation policy, dress code, code of conduct, sexual harassment and other human resource issues?  If not, maybe it’s time to put those policies in writing by developing an employee handbook.

A good employee handbook will contain the following information:

1. A disclaimer specifying that employment with your firm does not guarantee lifetime employment.

2. Your employment policies regarding work hours, pay, vacation, holidays, performance evaluations, tuition reimbursement, health and other insurances, retirement programs, employee discipline, termination, training, dress code, personal hygiene, body art (tattoos), ethics and other items that affect employment.

3.  You should also include a company organization chart .

The employee handbook is a useful tool to explain your company’s policies and help orient employees to company beliefs and how they are expected to perform.  The handbook also provides you with a measure of legal protection should an employee sue you for wrongful termination, sexual harassment, discrimination, or any other reason. 

The employee handbook doesn’t have to spell out specifics on what the employee should do in every situation, but it should contain enough information to let the employee know what your value system is as an employer relative to your employees and conducting business in general

It won’t necessarily prevent you from being sued, but it will strengthen your position in court if your policies are in writing.

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 When setting up your business, you should decide what sort of reputation you want.  Do you want to be know as for the best products/services, the lowest price, or the best customer service?  The answer to this question is important, because it is impossible to be all things to all people.

You need to realize what it is your customers will value the most.   If it is price, then it will be important to constantly look to cut costs, so you can keep your prices down.  If it is convenience, then you’ll need to focus on ease for them to  purchase and receive your products.  Should customer service be most important, then it will be imperative that you seek to build long term relationships with your customers after the first purchase.

The key here, is to know your customers and focus on exceeding their expectations. This will help position your company in their minds, and possibly give you a competitive advantage.

After all, can you really be all things to all people? It’s highly unlikely.

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Profession: Legal Services

His specialty is innovative strategies in sales, marketing, and leadership and development. Mark partners with clients to help them identify the best solutions for the evolving needs of their company. He presents customized strategies that provide a distinct competitive advantage that contributes to the profitability of their business. His expertise guides clients to a market leadership position.

Since establishing the Mark Mitchell Group in 1988 he has worked in both the U.S. and international markets with many organizations where he motivates others to increase productivity, while inspiring individuals to achieve greater levels of performance. His programs achieve breakthrough results for clients.

Profession: Marketing
Website: The Mark Mitchell Group

6.  Be passionate about what it is you’re doing.  This oftentimes will help you conquer various challenges.

7.  Believe in your product/service.  You can’t waver just because someone doesn’t like your idea.

8.  Aggressively get out there.  Don’t hold back in promoting your product/service.

9.  Figure out how to fit in.  That is, where in the marketplace does your product/service best fit.

10. Never lose sight of your goals.  If you do you will only see obstacles to your dreams.  

He served as the webmaster for Walt Disney Art Classics (the art publisher of the Walt Disney company), NATPE (National Association of Television Production Executives) and IFP (Independent Feature Project). He continues to consult with the J. Paul Getty Museum on their web initiatives and most recently is providing web development services to several non-profit organizations. He also teaches web design classes at various locations in Los Angeles.

He graduated with a degree in Marketing and International Business from the University of Hawaii with specific concentration in the globalization of sales and marketing strategy. After serving as the Marketing Coordinator for a local bank, he went to work for the art publisher of the Walt Disney Company (Walt Disney Art Classics) where he was charged with developing and implementing a database to catalog the thousands of animation cels from various Walt Disney film and television productions. He successfully transitioned this database into a private dealer extranet to allow gallery owners to view and purchase artwork online.

After leaving Walt Disney Art Classics in 1998, he started his own web development company and began offering creative and affordable solutions for small and medium-sized companies that were just discovering the internet as a place to do business. He coupled his love and fascination of technology with his experience in marketing to provide real value to his customers and help them maximize their online budgets. David firmly believes that a company website is a natural extension of a business’s marketing efforts and should be used synergistically to promote their products and services.

With recent developments and changes in the way people use the internet, David has focused on expanding and broadening his services. This includes web-enabled applications, audio and video editing/encoding for online streaming, flash-based demos for web and standalone distribution, and implementation of social media marketing strategies including e-newsletters, blogs, Twitter, and Facebook.

Whether he’s creating a user-interface for an e-commerce site, or finding ways to save a business money by automating services on the web, David naturally pulls together his design and business knowledge in a cohesive and creative way.

Profession: Website Development
Website: Pipeline Graphics, Inc.

         1.  Develop an expertise in the business field in which you want to start your business venture.

         2.  Always display confidence that your business idea will work.

         3.  Never “flip flop”.  That is, stay focused on your business goals. Don’t waver.

         4.  Believe in yourself that you can make it happen.  Ignore any negatives about your idea or yourself.

         5.  Be brutally honest with yourself, and don’t be embarassed to ask for help.

Stay tuned.  The last five will appear in another post.

In speaking with today’s entrepreneur’s,  I often find, that many of them have started their business or want to start a business with the sole purpose of making lots of money, or enough money to live comfortably (what’s comfortably?). They really don’t consider what they want their business to become. 

In my opinion you need to give both making money and creating a comfortable life a great deal of thought.  After all, it is the business that supports your lifestyle long term.  

I suggest you need to develop “double vision”. That is, you should be looking at your business both with  the “vision” of making  money -a short term goal, and the “vision” of living comfortably - a  long term goal.

Here’s a short exercise you can do to look at both short and long term goal setting.

First list your “don’t wants”,  for example I don’t want to work 24/7, or I don’t want to work after 5:00 PM, then list your “wants”  such as I want a global business or I want a local business. Then list barriers to both areas. For example, I don’t want to work after 5:00 PM, but most of my customers stop in after they get off work; or I want a global business, but I don’t have the resources to start one.

Once you’ve identified barriers  you can develop goals to eliminate them. Some of these goals will be short term and some long term because some problems can be solved more quickly. Now, you’re getting “double vision”.

As the first Director of the Rio Hondo Small Business Development Center, he established six (6) outreach centers; and produced over $20.M in economic impact.

As a consultant and Satellite Manager for the Small Business Development Center in Glendale – Eastern Small Business Development Center, he assisted numerous existing businesses and start-up businesses in securing capital, developing business plans, and addressing issues concerning marketing, sales and overall business management.

Prior to his work in the Small Business Development Center program, he was co-founder of a publishing company; founder of a business consulting/education firm, and Chief Operating Officer for a start-up manufacturing firm.

Additionally he was Interim General Director of a metropolitan YMCA, Executive Director of a large aerospace company non-profit organization; worked in corporate relations for an international engineering firm, and was part of a sales and marketing team for a nationally known oil company.

Bob has been and active member of local Chambers of Commerce and professional business associations. He has served as a national president of a professional management association, published articles on business and authored a management book. He routinely conducts business seminars and training sessions for small businesses and speaks on businesses issues before service organizations, radio and television.

He has a Masters Degrees in Business Administration – University of La Verne, Master’s degree in the Administration of Physical Education and Athletics – California State University, Los Angeles and a Bachelor’s Degree in History – University of San Francisco. He currently teaches business classes at Pasadena City College and the University of Phoenix and resides in Pasadena, California with his wife, a partner in a local accounting firm.

Profession: Business Consultant
Website: Bizeinstein LLC

Mr. Stavropoulos primarily practices on a time and effort (hourly rate) basis.  He also works on retainer basis, both monthly and quarterly.

A unique aspect of Mr. Stavropoulos’ practice is his business background.  For approximately seven years, he co-owned and managed a commercial custom spice products business, during which time he was personally involved in the day to day operations of the business, including employee relations, account management, and ultimately the sale of the business.

Mr. Stavropoulos has been a member of the State Bar of California since December 1999.  He is an active member of the Pasadena Rotary Club, Pasadena Chamber of Commerce, Business Network International Rose Bowl Chapter, and a contributing author to rosecitybusiness.com, a site dedicated to assisting small and medium businesses.  He also sits on the board for St. Anthony’s Greek Orthodox Church, and is a member of the alumni committee for The Chandler School in Pasadena.  You can also learn more about Mr. Stavropoulos on his www.linkedin.com profile.

Profession: Legal Services
Website: www.petestavlaw.com

Larry also is an angel investor and manages two private investment funds, one making early round angel investments in start up companies and the second in real estate. These private investment funds are actively making new investments and are not available to the public.

Profession: Financial Advisor
Website: Steinberg Financial

Through his firm, Compass Development, he provides real estate analysis, develop-ment consulting, limited brokerage services and property management to individual investors, corporate investors and non-profit organizations.

He has held corporate positions in real estate companies and commercial insurance agencies and staff positions in local and state governmental planning agencies.

He has served on the board of directors of non-profit charitable organizations, private businesses and a City Planning Commission.

Using his experience in private enterprise, he developed a course for Woodbury University in Entrepreneurship. He has been an adjunct faculty since 1990 teaching courses in Entrepreneurship, Risk Management, Real Estate Finance and New Venture Creation. He served as Woodbury University Principal Consultant in developing a local government incubator. He currently serves as Director, Entrepreneurship Initiatives for the School of Business.

A native of Indiana, he holds a Bachelor’s Degree in Political Science from Indiana University, and both a Master’s Degree in Political Science and a Certificate in Urban Planning from the University of Hawaii. He served in the United State Air Force Security Service.

Mr. Walker is Co-Chair of the Pasadena Developer’s Club, member and Past President of the Rotary Club of Pasadena, and other professional and social organizations.

Prior to moving to Southern California in1988, he and his wife, Dr. Karen Kaigler-Walker, author and college professor, lived in Texas.

Profession: Real Estate
Website: Bizeinstein LLC

This morning I was responding to an email from a new member of our website who lives in South America. Suddenly I thought, it really doesn’t make a difference about the language or culture, the basics of business are universal.

Given cultural differences, laws and regulations and education, the central theme to business is clients/customers, satisfaction of these individuals or companies, and at the end of the day, having put something more into your bank account. Admittedly, that covers a lot yet leaves a lot unsaid about such things as green issues, ethics and charitable giving, etc.   But in every culture, business is business and as a business person, we must recognize that we have counterparts who are similar to us.

We may speak differently, but our issues are similar and our desire to provide products and  services exists to the benefit of all.

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A recent article in the Los Angeles Times indicated that the time may be right for more government involvment in our economy.  The sub prime mess, subsequent housing crisis, skyrocketing oil prices, increased threats of recession, loss of jobs, and pending failure of some banks, have led our politicians and some citizens to wonder if our free market system is “key to a fair, stable, and efficient society”.

Is this really the answer to our current economic situation? Is it really time to change our free market system?  I say no and I believe most of you will agree.

We don’t need more government involvement, we need businesses acting more responsibly to shareholders and stakeholders. For example, had top level management in banks and other lenders been more responsible(and not so greedy) in their lending practices perhaps we would have avoided this crisis.

Should the free market economy end?  We say no.  Rather it needs to move forward faster than ever, but much more responsibly.

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Success in today’s business world is largely dependent upon building strong relationships with our customers.  The Ritz-Carlton Hotel discovered a number of years ago that to bring in a new guest, it cost the company an average of $5,000.  To keep/retain an existing client cost them almost nothing. 

How do we build these strong customer relationships?  Don’t take their business with you for granted.  The best way, in our opinion, is to maintain constant contact with them after you’ve made the sale, and as long as you are in business. You never make your money on the first sale, you make it on the repeated sales.  

Many times, providing good services to existing customers brings in additional business, and it requires very little effort on your part.  Simply put, it is cheaper to expand an existing customer’s business than it is to get a new one.

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Products selling for under $1.00 psychologically are more attractive than if they are marked for $1.00. For products in the $1.00 to $10.00 price range the best numbers in this category end in 5 and 9.  Again, a $5.00 item is more attractive priced at $4.99 or $4.95 than $5.00.  Products priced between $10 and $100 dollars are more attractive if they end in $.25, $.50, or $.75.  So an $11.00 item looks more attractive if priced at $10.75 or $10.50 than $10.99.

At higher levels above $100.00 smaller number are not that attractive. A $1000 television doesn’t draw anymore interest at $999.99 or $999.50 than if left at the whole number of $1,000. However, it may sell better if priced ending in a whole number of $9 or $5 rather than $3 or $7. 

The whole idea behind this type of pricing strategy is to make your product’s price more attractive to the potential buyer without giving away much profit.

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Taking your business into a foreign marketplace can be a very difficult challenge. Understanding the sociocultural forces (religion, language,manners customs, values and attitudes), economic forces (exchange rates, currency valuation), laws, and infrastructure and environmental forces are vital to a company’s success in the foreign markets.  These factors will vary from country to country.

The KFC patented slogan “Finger lickin’ good” was understood in Japanese to mean “Bite your fingers off”. Selling a 100% all beef patty in India will not be highly acceptable to the Indian populace. 

If you intend to take your business international, research each and every country in which you intend to do business.  Don’t fall into the trap that “one’s own culture is superior to all others”.  Learn to adapt to the culture of each country where you want to do business.  

Also, often times your success will depend upon building a good relationship with local business people to gain their support and trust.  These individuals can assist you in understanding; the local infrastructure, business environment, penetration of the marketplace and dealing with various bureaucratic barriers. Many times, these local contacts are the only reason for success. Cultivate these carefully.

With today’s technology, getting into foreign markets is much easier, but the  potential for mistakes is probably greater. Research pays off – always.

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During the initial stages of a business, most business owners concentrate on working their business, ie. developing a revenue stream, and spend little time on setting up operating systems that help them manage their business.  

Without proper systems in place the business is working you, not the other way around.  Developing operating systems is a matter of setting up a series of steps that lead to a desired result.  For example, when you receive an invoice from a vendor, what is the process that invoice goes through from the time it reaches your mailbox until the time it is paid and filed?  How effective is it? Does it need improvement?  Is it documented? 

If you’re frustrated about how things are “not going”, perhaps you need to look at your business operations and determine which systems you need to put in place.

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Volunteering for various community activities can be an excellent way for you and your business to get known.  There are many organizations you can get involved in such as; service clubs, chambers of commerce, youth sport leagues, church activities, municipal commissions, private foundations, school boards, and more.  They are continuously looking for talented volunteers to assist them in accomplishing their mission.

Your involvement enables civic and community leaders, business owners, and other “movers and shakers” to get to know you in a different way than just as the “owner of…”  This results in them feeling much more comfortable about referring individuals to you, as well as, doing business with you themselves.

I know an individual in a Southern California city who receives nearly all of her business from referrals from the local chamber of commerce of which she is a member.

It is also a way of giving back to your community, church, etc. that’s been helpful to your business.  If you’re not volunteering for anything, start today.  It may be the best thing you’ve done for yourself and your business. 

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Did you “grow up” in a family business?  Do you own and operate one?  If so,you are part of a business venture that historically has been has been the backbone of our economy and led to the creation of giant corporations.  As the owner and operator of a family business you continuously face many complex challenges such as competition from larger firms, government regulations,  hiring “top flight employees”, and management issues.  Among the most pressing family issues according to George Abbott of the National Family Business Council is management succession. 

Who will take over for the owner when he or she can no longer wants to function in the business?  As important as this issue is, it is one that most family businesses fail to address.

No one likes to face the possibility of retirement or death, or no longer having the capacity to operate the business.  But in order for the business to continue to thrive it is extremely important that a well-conceived succession plan be in place.  Even if the successor to the owner if obvious, a well prepared plan will create a favorable transition for family members, vendors, bankers, employees, spouses and friends. 

Does your family business have a well-prepared succession plan?

I am asked many times “When should I quit the business, change my product line and/or services”, or “Should I continue to “plug” along doing things with the same old products and services”? 

The answer to this question is ”that depends”. 

If your product/service has great long term potential you should probably stay with it, that is, as long as it is fulfilling your needs for starting the business in the first place.:

If you are making “gobs” of money and are unhappy, you should think about making changes (quitting).

If you are  enjoying the business but not making any money, you should think about changing (quitting). 

“That depends”  also includes many factors such as: market conditions, type of product/services you are offering (are they obsolete?),  viability of your short term strategy, your ability to handle the stress of operating the business, and are you progressing towards achieving your goals (having fun, making money, saving the world). 

Bottom line: If you are enjoying what you are doing and it is meeting your financial and intrinsic needs – then stick with it. 

When asked how he gave grades for his final exams, a professor once replied; “I draw four circles on the floor – one for A, another for B, a third for C and a fourth for D.  Anything else is an F.  I toss the exams in the air and whatever circle they land in that’s the grade the receive.  Anything not landing in a circle receives an F”.

Fortunately the professor was only kidding, but from my years of business coaching, this story isn’t too far from the way some business owners make decisions.

How do you make decisions? Do you “flip a coin” or, let everything “fall where it may”, or do you give ”real” thought before you act? Evaluate your decision making style. If it looks like the professor’s, does it scare your customers or employees?  Is that really good business? Thought before you act?  You may want to evaluate your decision making style and make appropriate changes.  It may lead to better decisions and increased profits.

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Many of us have been ingrained with the thought that retirement is going to be this time of bliss when we can do what we want whenever we want.  We often view it as that period of our lives when we no longer want anything to do with “punching a clock”. We’ll travel, play golf, visit the kids and grandkids, complete long delayed projects, and visit friends. 

Once we have satisfied these desires, we may find ourselves bored and wanting to do something more.  Many may return to work and others may choose to start a business.  Some may view you as being nuts – especially if you want to start a business at “your age”.

I recently talked with two such individuals, and they are happy to be starting their business venture.  They feel they have the health, life and business experiences, wisdom and financing to launch a successful business venture. They look at it as a challenge not just an opportunity to make money, or “get out of the house.” 

Studies by AARP and Morgan Stanley, confirm that many individuals over 50 want to, and are, starting businesses. If you’re contemplating starting a business there are plenty of resources available to assist you. 

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Looking for that million dollar idea? 

Seeking a creative solution to a problem? 

Try thinking with the “brakes off”; that is with a mind that is free to think and freely thinking.  What do I mean? 

When the brake is on the car can’t move, or move as easily as when the brake is released.  Our minds are many times, like the emergency brake, locked into a mode of thinking that limits our creativity.  They become locked due to a subconscious way of thinking developed over time through influences by parents, peer groups,  education, observations, and perhaps the fear of failure.

In order to unlock our mental brakes we have to be willing to let go of our old way of thinking and be willing to adapt to new ways of thinking.  You have the ability to change and look at and do things differently.  

Here’s a couple of tips: 

• wear your watch on the other wrist for awhile
• write a sentence with the opposite hand
• periodically rearrange your office
• try a new food and write a brief description of how it tastes

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Last time we talked about working from home as a way to offset the rising costs of doing business. There are some negative factors to consider, too.

• Lack of social interaction – it’s not so easy to sit and talk with someone or bounce ideas off someone.
• Routine hours – unless you are careful you will usually find yourself working either several hours more each day or several hours less each day depending your work regimen.
• Motivation – you won’t have any external motivation to work, unless you routinely receive phone calls from customers or suppliers.
• External distractions – such things as children, home projects or spouses can create problems with “getting your work done.”
• Customers – you may not want a customer to come to you- that professional image;  or be able to schedule a meeting that includes you, a customer, and a third party because of space limitations at home.

There are a lot more, but this will give you an idea.

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Often times,  you may feel like you only have the “four walls of your office” to turn to for business advice.  You may also feel that the only solution to getting the help you  need is by hiring a business consultant who may prove to be very costly to a start up entreprise or small company. 

 Assembling an advisory board can be a valuable way to  provide you with guidance, credibility, and knowledge to assure success of your business venture.  These advisors allow you to “bounce” ideas off them and can help you make important business decisions.  They can also provide valuable business contacts and networking opportunities.  How do you assemble such a group?  Stay tuned.

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I just read what I consider a great definition of the word luck.  It comes from a book by Douglas Andrew titled Missed Fortune.  LUCK can be thought of as an acronym representing: 

L = Laboring, U = Under, C= correct,  K = knowledge. 

Think about that.  Isn’t luck really being prepared to recognize and capitalize upon opportunities when they cross your path?

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In a tight economy, such as we’re experiencing now, networking may be the key factor in maintaining a strong position in your marketplace.  In starting out, it is a great way to introduce your business and “tell the world” you’re here to service them.  If you’ve been in business for awhile, maybe it’s time to ask; “How well is your net working.”

Is it time to spread your net and/or evaluate how well it is working? Yes

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Just like chewing gum the flavor is great in the beginning but quickly it loses it’s flavor and has no value except to cause unnecessary exercise to one’s jaw.

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As the cost of fuel continues to skyrocket, working from home is one way of reducing your business costs.  Thanks to technology, especially the internet, you can operate a competitive world wide business from home. While working from home will not be for everyone, it may be right for you.

Here’s some of the things you need to consider if you want to work from home, whether starting a business or working for someone else.

1. Can I stay focused on business work?
2. Do I have the self-discipline to maintain a work schedule?
3. Can I deal with the loneliness of working from home?
4. How productive can I be working from home?
5. Am I a self-starter? Can I avoid procrastination?
6. Does my home have the space for a business?
7. Can I successfully run the business from home?

In addition to these questions you need to consider the legal requirements for working at home. Many of the same laws and regulations affecting other businesses apply to home based businesses as well, such as: zoning regulations, product restrictions, making of food and beverages, business licenses, state certificates and compliance with safety laws.

Working from home can be cost effective, cutting commuting costs, space leasing costs and more time to work on your business. However, there are downsides to consider – next time.

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Age today is not as relevant as it used to be. We hear about and read often about individuals in their 60’s, 70’s 80’s and even 90’s still teaching, starting/managing businesses, and being involved in an active lifestyle. Individuals today are generally more healthy, more interested in doing things, and have access to more information on life long active living.

So how old is too old really depends upon each individual. We can find a 50 year old who is ready to retire and  “play golf all week”, and we can find other older individuals who are ready to take on new challenges such as starting or buying a business. Some good examples include; Ray Kroc (McDonald’s), Colonel Sanders (Kentucky Fried Chicken), Jack Weil (Rockmount Ranch Wear), and Lisa Gable (L.G. Accessories).

We think an individual who has energy, passion, motivation, and interest, can create a business.

So how old is too old? – you tell us.

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From my experience in working with hundreds of business owners, whether they are trying to sell a prospective customer or asking for funding, I find they quit selling or asking too soon. Some of my most successful clients have found the prospective customer that gave them the hardest time when they made their “sales pitch” ended up being their best customers.

To start and grow a successful business you need to have tenacity and never stop asking. Never, never, give up!

When you look at the numbers regarding startups, you may begin to wonder if you can start your business.
First, 95% of new startups never reach a milllion dollars a year in sales. Next, of those that do reach a million dollars a year, 98% of those never reach five million in sales.

New startups fail at high rates. Some industries failure rates are as much as 75% for the first year. Others are in the 40% – 75% range. Still a major concern.

Why?

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The last time we wrote about Football and Your Business we discussed how important it is for business owners to have results in mind when hiring someone. Just as football coaches recruit players to fill certain positions and produce winning results; you as a business owner need to hire individuals that will produce winning (profitable) results.

It all begins with a clear picture of the results you want from the position you are looking to fill. For example, if you are looking to fill a sales representative’s position you should first conduct a job analysis for that position.

A job analysis is a systematic evaluation of all the elements and requirements needed for a job. Or simply stated, what the employee should do in that position. This analysis is necessary in order to recruit individuals with the right skills to achieve desired results.

Doing a job analysis requires lots of thought. If you currently have a sales force, you can observe what your most successful sales representatives are doing and have them keep a diary of their activities. If you have been doing all of the selling, and are looking to replace yourself by creating a sales representative position you can retrace your own sales activities.

Use the information gathered in the analysis to serve as a basis to develop a job description and job specifications that details the duties, responsibilities, and characteristics of the “right” individual for the job.

More to come about developing job descriptions and specifications that lead to hiring the right person and “getting results.”

Recruiting, hiring, and retaining talented employees are keys to operating a small business. How an employer goes about doing this is paramount if he/she wants to have the right players on their team.

In college football, coaches recruit by position and have a clear picture in their minds of the skill level of the players they are looking for in each position. Much of this is based upon the coach’s philosophy and style of play. If they are looking to build a strong defense against the run they recruit players that can defend against the run; similarly if they focus on defending against the pass, they recruit players who can defend against the pass.

In business recruiting the right players requires the owner to known his job positions, skill levels required, and the results those positions should deliver. The owner must have a plan in mind of how to build a solid team of talented people. So many times we see owners hire someone because they like the person, with too little regard for the results they are looking to achieve. The key word here is results, not just fulfilling job duties and responsibilities, as presented in a job description. Stay tuned and we’ll talk about getting results and hiring to get results in future blog.

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Last week I gave a presentation to a local Chamber of Commerce about Bizeinstein. . The meeting was interesting in many ways. There was a wide range of ages from twenties to seventies; all were struggling with marketing on the internet; many were having issues with web designers. They were there working in a common atmosphere of learning and asking question about starting and growing their businesses. They had all made the effort to drive to the local university, fight student parking; and find the right room – at 6:30 pm; almost all then put in a full days of work first. That is both dedication and commitment.

 I believe people need a sense of community, common purpose, common interest – whatever. Even though you are starting or growing a small business, communicating with others is important. Sharing concerns and ideas helps us all to maintain our belief in what we are doing. Developing an on-line community is challenging, but others have done it for many different reasons. I believe a community of people talking and sharing ideas , concerns, thoughts, and opinions about starting or growing a business is going to make our small business community stronger and more competitive to the marketplace.

 Big business gets most of the publicity, but start ups and growing small businesses are the backbone of any business community.

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Both our backgrounds include starting and growing companies (small ones), many years working in the field of business consulting, coaching business owners, working with business incubators and as adjunct college professors teaching business courses.

Two years ago we decided to put our knowledge and experience together and start a new company that would develop an on-line busines incubator. Our goal was to offer the individual or small business owner an opportunity to receive a more personal set of business services and to build a community of people who wanted to gain information and talk with each other about starting and growing businesses. The site would include both a free, general information area of articles and information and a subscription area that would offer professional assistance, on-line networking opportunities, seminars and other types of business services.

That was two years ago and we have had our share of trial and error. Our first “web consultant” designed our site but couldn’t take us any farther much to our consternation. After several conversations between us we took in a techinal partner and eighteen months later, we are on the street again interviewing web consultants to help us finish our membership side. Needless to say we didn’t expect this but fortunately, we’ve been down the startup road before – although this is our first venture together – and we’re not upset, just determined to get going.

So to those of you who are using the internet as your primary business mode or those of you who are using it as a supplement, our compliments. We have a much greater appreciaton of the trails, tribulations and successes you have been through.

So what have we now? Our free side is up and working. It provides a series of articles for both starting and growing a business and it has some other sections as well. We are working on the memberhsip side and will take it live soon.

WhyBizeinstein? Well, partly it’s a labor of love as are most start ups and partly it’s a desire to fulfill a perceived need in the field of business development or incubation. We are an ongoing story and we will tell the next chapter soon.