Starting A Business

Keeping It Real

CommunityTeam — Fri, 05 Jun 2009 17:10:00 GMT

Tailoring your goals and expectations to reality will help you succeed

By Max Berry

A certain amount of ambition is necessary when running your own business. If you aren't expecting a lot from your idea and yourself, it will be hard to deliver much to your customers. But at what point does ambition become a hindrance? If your expectations are too high for one person-or one business-to meet, they may be doing more to hold you back than push you on. Dreams of glory are healthy, but so is the understanding that every race is run one step at a time.

Pace yourself
"There is something rewarding about crossing things off a list," says Duncan Brodie, director of UK leadership development company Goals and Achievements (goalsandachievements.co.uk), "but there is also something rewarding about not putting so much on the list that you set yourself up for failure. The bottom line is that you have twenty-four hours in a day."

Some of us are list-makers and some of us aren't, but a great many of us do our best work under pressure. Approaching a project with the belief that stakes are high and success is imperative can galvanize everyone around you. But without a measured perspective on just how much quality work can be crammed into one day, that galvanizing pressure can quickly give way to a whole lot of stress. "Ultimately, if you don't manage expectations well, you'll become stressed out, you'll lose focus, and you'll start doing substandard work," says Brodie.

Rather than placing all your focus on achieving one goal as quickly as possible, Brodie recommends taking the long view. "There is a difference between one-time wins and losses and running a long term business, achieving sustainability," he says.

Whether you're hoping to run it until you retire or take it public and cash out young, try seeing your business as an evolving enterprise. It is unlikely that one great quarter or one successful project will turn your company into a Fortune 500 sensation overnight, but it may put you on the path to a wider array of clients and more brand awareness. These are both great achievements for any business owner, and meeting either should be seen as a success, whether they're your ultimate goals or incremental steps on your path to something more.

The eyes of others
The most difficult expectations to manage are often the ones that others place on you. Chances are that neither your employees nor your clients expect you to be a superhero, but people aren't always upfront about their expectations, which is why you need to be proactive about discussing them.

"You need clarity with the client," says Brodie. "Ask them questions: ‘What do you want to happen by the end of the project? What do you want to be different?' Clients are often vague about their expectations. It helps if you can give them clarity."

Set the tone with customers at the outset of a project. Establish an agreement and, if applicable, provide your client with a time and cost estimate. When setting a timetable for a project, be realistic. This helps not only with achieving your objective, but also in building confidence in employees and clients. If your timetable doesn't seem reasonable and grounded it may actually cause those around you to question your judgment. You want to project confidence in your abilities, but be careful not to commit yourself to more than you are capable of completing, or to completing the job in less time than you need to do it well.

This doesn't mean you can't strive to outdo yourself. "The reality is, subconsciously, most small business owners will go the extra mile to make the project a success," says Brodie. "They want that relationship to be long term. Surprise [clients] a little bit by giving extra."

As you carry out the steps of a project, provide progress reports to the client and meet frequently with employees to discuss how you're all measuring up to your own expectations. When the project is completed, ask for feedback. Maintaining a dialogue even after the job is done builds trust and encourages future business.

Handling the inevitable
No matter how well you manage your expectations and those of the people around, there will be moments when you wind up frustrated that you couldn't do more. Nobody with high standards will feel like they passed with flying colors every time. The key is to take the disappointment in stride, and to have a support system in place. "For self-preservation, it's important that you've got someone to speak to, someone you can use as a sounding board," says Brodie. Chances are that if you confide your frustrations in someone else, they'll tell you what you probably knew along: that if you never got frustrated that you couldn't do just a little bit more, you'd probably never achieve much either.

Bearing that in mind, it gets easier to see the value of the occasional disappointment. "Think about what you have, in fact, achieved and use your setbacks as opportunities to learn," advises Brodie. "When things don't go well, you can often learn more than if they go perfectly."

Business Plans

SBOCTeam — Fri, 19 Sep 2008 17:21:00 GMT

Do I Need One? How Do I Go About It?

By Christopher Freeburn

You're ready to take the plunge. You have a good idea for a new business. You've done the requisite soul-searching and determined that owning your own business is the thing for you. You've spent some time researching the idea and you've figured out where you will locate the business, who your customers will be and what sort of market exists for the business. Now it's time to sit down and create a real business plan.

Benefits of a business plan
There is no understating the value of having a properly written business plan. A business plan helps to clarify the challenges you will face when trying to get your business off the ground. It helps you anticipate problems and obstacles in advance and thus work out solutions before you actually run into trouble. It allows you to make a reasonable estimate of how much money you will need to get things going and to keep them going through the early days. A well-researched plan can give you a handle on how much revenue to expect and how to target your business's promotional efforts.

Business plans are not for your eyes alone, however. If you need to borrow money to get your business started, having a professional looking business plan is crucial. "You want to demonstrate to any potential lender that you are serious about your new business and that you have a good idea of what running it will entail," says Martin Lehman, counselor at the New York chapter of the Service Corps of Retired Professionals (SCORE). By providing potential lenders with a well-drafted business plan that deals honestly with potential expenses and problems and demonstrates that you have done the necessary market research, you greatly improve the chances of landing that loan.

Anatomy of a business plan
In general, most business plans follow a basic format.

Executive summary: The purpose of the executive summary is to define the business-what it does and why you are the best person to run it. The summary should be no more than a few sentences, a paragraph at most. The idea is to convey your business's basic activities as concisely as possible.

Market Research: Follow the executive summary by making a case for the viability of your business in the marketplace you've chosen. Is there enough consumer demand to keep your business going? Are there enough potential customers in the given area in which your business will operate? What are the costs of getting the business started? What sort of revenues can you expect in the first year? What will be the cost of rent, utilities, office supplies, equipment, and materials for your products or services? Are there any competing businesses similar to your own in the same area? How does your business differ from them? Government publications, industry publications, trade groups and local chambers of commerce are excellent sources of demographic and marketplace data that you can use when compiling your research. Be as realistic as possible.

Business Outline: Here you will sketch the anatomy of your business. Identify your management structure, supply chain, and operations. "Be as detailed as you can," advises Lehman. "This is the time to work out fundamental questions about how everything in your business will work." Ask yourself the basic questions. Where will your business be located? Will it be a sole proprietorship, a partnership or a corporation? Who will be the owner? Are there employees? How does it provide products or services to customers? Who are the suppliers? "Iron out ownership and decision making roles ahead of time," advises Lehman. "Who gets the final word on things? If there are other people involved in the business, this is the time to figure that out." If there are partners or employees already in place, make sure that their duties and powers are well defined.

Marketing: The business plan should make clear exactly what you are selling and how you plan to let potential customers know about your business. Detail any advertising plans and their likely cost.

Cash Flow: How much money will your business need to get started? How much revenue can you expect from operations? This is an extremely important part of the business plan, and the one that requires considerable research and attention. Try to estimate, as best you can, exactly how much it will cost to keep things going for the immediate future and how much revenue you think your business can reasonably gain. "This can be really difficult for the first time business owner," Lehman warns, "If you don't have an established track record to draw on, you are going to have to make an educated guess. This is where your market research becomes essential." Lehman says that the biggest mistake new business owners make is being too optimistic with their revenue projections while underestimating costs. "Then they find themselves stuck with higher than expected bills and too few customers and they can't afford to keep things going," he says. It's better to err on the side of pessimism when estimating costs and potential revenues. Potential lenders or investors appreciate a little pessimism in financial projections since it indicates a more realistic outlook on the part of the small business owner.

So You Want To Have Your Own Business

SBOCTeam — Thu, 04 Sep 2008 13:16:00 GMT

By Adducent

Perhaps you need to do something new, a change from what you've been doing or you hope to build the financial security you aren't able to find by working for someone else. Maybe you can't find the right job to suit you and having your own business could be the solution. Whatever the reason; if you have the "itch" to have your own business you have two choices:

Do you start a business?

Do you buy a business?

Why start a business when you can buy one?

A start up:

Has no customers.
Has no track record.
Has no infrastructure.
Has no inertia. Everything is at square one.

There's a lot to learn about starting and running even a small business. Everything required to launch it is on you as the entrepreneur.

An established business:

Has customers.
Has a track record.
Has an infrastructure.
Has inertia. You become part of a business that is moving.

Generally, when you buy a business there is a transition period between you and the former owner helping get you used to the business. And there are usually experienced employees that know the details of the business operations. That help can be invaluable in cutting down your learning curve if you are new to business ownership or to that type of business.

Why buy a business when you can start one?

A start up:

Can be molded exactly the way that you want it.
Starts with a clean slate; no potential for anything in the past popping up that may be a problem to address.
Can easily be a 1-person operation with very low overhead to support.
Has no personnel management or significant administrative requirements.

An established business:

Has a defined business model that you must fit into initially.
Has a history, some of which may be unknown to you as the new owner.
Usually has overhead to support.
Usually has some personnel and administrative requirements.

Also, keep in mind:

It is usually easier to get funding to buy a business; established businesses have better access to capital and more opportunities to raise capital than does a start up business. Many start up businesses can be done on the "cheap" with the entrepreneur putting the effort and their own money into the business to get it launched.

If you don't want to undertake a financial or management burden of any size ... then you may want to start a small, single-person business where you have total control without management hassles and no overhead to support. That might work best if you are a person with a specific skill-set that translates into a service business.

If you want something that is more "turn-key", where you can step onboard a business already moving then you may want to look at buying a business. That might work best if you are more of a "manager" type and want to grow the business into something more substantial.

The above is all food for thought; and going into business requires a lot of thought on your part.

Bottom line it comes down to the one most important deciding factor.

Want to know what that is?

You! The option that has the most in favor and matches your own mindset should be the one you go with.

Remember, having your own business should begin with you thinking through what it is that you want to do, and what best suits you.

Starting a Business - Part II

SBOCTeam — Mon, 18 Aug 2008 15:18:00 GMT

Do I Need a Great Idea?

By Chris Freeburn

You know you want to be your own boss and run your own business. You've thought it through and asked yourself the hard questions and you are sure that being an entrepreneur is not only something that you find appealing, but something that you believe fits with your personality and work ethic. Now you need to decide what your new business will do.

Some entrepreneurs start off with a great idea. Maybe it's an original idea for a great invention, or software application, or even a service that no one else is providing to the public. In many cases, these people are so motivated by their idea that setting up a business to deliver on its promise is almost a natural step.

Not every entrepreneur has a Big Idea first, however. Many entrepreneurs begin with the desire simply to own their own business and then decide what that business should be. Having a bold, radical idea is good-even helpful-but it isn't a requirement for becoming an entrepreneur. Many entrepreneurs get their start in well-established, almost generic types of business like dry cleaning, landscaping, or repair services.

So how do you find the right idea for your business?

Start with yourself

The best place to begin your search for business ideas is yourself. First, take a good look at your own skills and interests. Do you have any specific skills or work experience that could translate into a business opportunity? For example, do you possess a technical education in a particular field (electronics, computer science, or engineering, for example)? Or perhaps you worked in a company that did something you think you can do on your own. If you did and you found that education or experience rewarding, than you may wish to leverage that asset into a new business.

Prior educational or work experience in a given field can also provide more than just knowledge -it can give you contacts with potential customers or experts who can help you launch your business.

More importantly, is there something that your particularly enjoy doing? Could that activity be the basis for a new business? Debbi Fields turned her passion for baking into a multimillion-dollar cookie empire when she and her husband founded Mrs. Fields Cookies in the 1970's. It's always easier to put in long hours building a business when you genuinely enjoy the work.

Look around

Is there something you think is missing where you work or live? Maybe you've noticed that the nearest dry cleaning business is in the next town, or that there is a pressing need for local child-care or dog walking for people who work all day. You can learn a lot about what products or services people in a given area might be willing to pay for by listening to your neighbors. Is there something they continually complain about needing, or not having nearby? If so, that might be the basis for your business opportunity.

The franchise option

If you want to own your own business, but are having difficulty generating an idea on your own, you might want to consider purchasing a franchise. By buying a franchise you are purchasing the right to open a store, restaurant, or outlet of an existing, and presumably successful, business.

A franchise reduces some of the risk of starting a business by yourself because you are purchasing an already established brand name complete with a track record and some level of support and advice from the corporate parent. Franchises usually have chain-wide policies governing pricing, vendors, location, decoration, advertising, and employment policies. Some entrepreneurs, especially first time business owners, find it easier to have all these decisions already made for them. Additionally, many franchisors-though not all-provide training for their franchisees on the mechanics of running their business, which helps further reduce first time-business owner anxiety.

Thousands of franchises-in diverse industries ranging from food vendors to skin care-are available for purchase in the United States and Canada.

However, owning a franchise isn't for everyone. While some business owners like having the details of their décor, prices, and products dictated by a corporate parent, others chafe under the restrictions. If total independence is something you crave, you may want to look for your own idea for a business.

Starting A Business - Part I

SBOCTeam — Fri, 08 Aug 2008 21:14:00 GMT

Is My Personality Right for This?

By Chris Freeburn

Many people dream of being their own boss - of setting their own hours, making their own terms, and having the big office where all the important decisions are made. It's a tempting idea, one nurtured by a national culture that prizes the ideal of the rugged individual who strikes out and remakes the world according to his or her vision. And every year, tens of thousands of Americans launch their own businesses, hoping that their fledgling enterprises might someday become the next Apple or Kinko's.

But creating a new business is a demanding task. It means that you'll be the one responsible for making sure everything that needs to be done gets done - and probably doing much of that yourself, at least at first. The ability to nurture your business through its infancy will require drive, passion and commitment Most likely, it also means a seemingly unlimited number of late nights, few vacations, and constant effort dedicated to nurturing the nascent business through its perilous first few years.

The Entrepreneurial Temperament

Not everyone is cut out for that sort of effort. Nor will every personality flourish in an entrepreneurial environment. "The thing about being your own boss is that you now have to worry about all the things that the other guy who used to be your boss had to worry about," says Boston - based business consultant Jim Sheridan. "It's easy to underestimate just how much work goes into building a new business and just how much of that you'll have to shoulder by yourself as a new entrepreneur."

In addition to making the big decisions, you'll be making all the little ones, too: paying yourself and any employees, making sure the taxes are done correctly, arranging advertising, dealing with customers and clients and suppliers, taking care to see that your business is in compliance with local codes and regulations. Being the owner means the buck starts and stops with you. A sense of personal responsibility and a willingness to work very hard are essential for entrepreneurs, as is the ability to multi - task, says Sheridan. "When you start a business, you need to be able to wear a variety of hats every day," he explains. "One minute, you're the personnel manager, dealing with your employees, the next minute you're a financial analyst looking at the balance sheet, and the next you're the marketing director planning your ad campaign."

Entrepreneurs must also be able to tolerate risk. "You'll be putting more than just time and effort into your business," Sheridan says. "You'll likely be investing your money, or someone else's." Many people use personal savings or borrow from friends and family or banks to open their own business, and a large percentage of businesses do not survive the first five years. "Not everyone is comfortable working with an uncertain income, or borrowing a lot of money when there's no guarantee of success," Sheridan says, adding, "risk - taking is part of the game."

You are your business

Owning your own business is very different from working for someone else. When the average employee leaves the office at 5 p.m., he or she leaves the job behind them and concentrates on family or the night's entertainment. That is not true for the small business owner.

Edward Paulson, author of The Complete Idiot's Guide to Starting Your Own Business, says that for the first few years, you and your new business will practically be the same entity. "There is simply no way to separate the owner from the company in the early stages. Customers write checks to the company name, but they think of themselves as doing business with the founder/owner. After all, when a company is small, there is really only one decisions matter: the owner."

Paulson notes that small business owners tend to treat their new businesses as if it were their own child at first. "Think about it;" he advises, "you will likely spend more time with your business than with your family, all the while working to improve your family's financial security." Be sure you have the commitment to devote the necessary time to building your business. Having a high level of personal energy is important.

Think Green

SBOCTeam — Wed, 09 Jul 2008 15:20:00 GMT

Opportunities for environmentally sustainable businesses abound nearly everywhere you look.

By Max Berry

Going green is in, but if you're about to start your first business-or even your second or third-building it on an eco-friendly model will help ensure that being green becomes the norm rather than the rage. Here are some real life examples of sustainable businesses to get you thinking green.

Style and Beauty, the Green Way

"If you are a local retailer your customers are going to be aware of what you do [for the environment]," says Joel Makower, Executive Editor of Greenbiz.com. Bearing this in mind, an independent retailer can use his or her commitment to the environment as a marketing tool. Shopping with a retailer that sells clothing free of environmentally damaging dyes and chemicals will appeal to the sensibilities of those put off by less scrupulous chain stores. The clothing sold at organic retailers like Hanna's Dream (hannasdream.com) and Yes It's Organic (yesitsorganic.com) is 100% natural. In the case of Hanna's Dream, the European and American designs often aren't available anywhere else in the U.S., meaning they will also appeal to the sort of independent minded consumer put off by the mass-manufactured clothing of those major retailers.

Those interested in organic apparel will no doubt have a similar interest in organic health and beauty products. The vast majority of organic skin care products available are, not surprisingly, marketed towards women. To capitalize on a less crowded market, you may want to consider taking a cue from Saffron Rouge (saffronrouge.com). Its organic shaving lotions and aftershaves boast ingredients like Atlantic seaweed and the twigs of the Australian tea tree. They also appeal to men looking to subject their skin to something more soothing than your standard drugstore shaving cream.

The Green House Effect

Those truly wishing to live green will need an eco-friendly home base. New Life Hardwood Floors in Dallas services this need by reclaiming and refinishing oak and pine flooring originally cut in the early twentieth century. Not only does the service prevent needless deforestation, it also provides homeowners with rustic style and a fully functional conversation piece.

Eco Interiors represents another type of green business opportunity in the home furnishings sector. The North Carolina-based design firm takes a sustainable approach to constructing and designing home interiors, focusing on improved indoor air quality, reduced exposure to toxic materials, and increased energy efficiency. The company is also dedicated to revitalizing the historic city of Old North Durham "into a creative, prosperous, and sustainability-minded destination." Designer Dana Mortensen believes that the word of mouth generated by innovative services like hers can raise the profile of an entire town.

But with home ownership come household chores. There are green opportunities in that market too. Seventh Generation's (seventhgeneration.com) household cleaning products contain no harmful chemicals or dyes and its vegetable-based laundry detergent eliminates the need for the oil used in petroleum-based detergents. For lawn maintenance, Solar Green Lawn Care in Eagle, Ohio uses wind and solar powered electric mowers to provide lawn care to residential and small commercial properties.

Greener Travels

Even the most stalwart eco-activist needs a vacation. Several entrepreneurs have capitalized on this by offering environmentally conscious travel and hospitality services. Manaca (manaca.com), a travel agency that selects in-country operators, tour guides, and eco-lodges, ensures that each one of its clients takes the most eco-friendly trip possible. Ayako Ezaki, Director of Communications for ecotourism.org believes that offering environmental benefits, in addition to high quality customer service, is a recipe for success. "A large and growing number of travelers are interested in eco-friendly travel," she says. "I believe that [the most successful tourism businesses] offer authentic, unique and memorable experiences, as well as genuinely green travel options."

Services like this also highlight the fact that environmentally sustainable lodging is a booming enterprise. Eco Lodges' commitment to cultural sensitivity and respect appeals to travelers looking for a richer experience in their chosen destination than a run of the mill hotel might allow.

Green Tips for Any Trade

Whatever your business, there are several day-to-day practices any firm can abide by to nurture the environment. Using a service like Go Green Messaging (gogreenmessaging.com), which provides paperless advertising and business communications, will allow you to market yourself with no additional cost to the earth's forestland. And don't be afraid to follow the examples set by the big guys: Office Max now offers 100% post-consumer recycled paper at its self-serve copy machines. Pitney Bowes has reduced emissions and saved $3 million in fuel costs by conducting more of its customer service over the phone and making sure its technicians solve consumer problems in a single visit.

And don't forget to align yourself with other green causes. Join a group like One Percent for the Planet (onepercentfortheplanet.org), a coalition of over 898 companies worldwide that donate 1% of their sales to a network of 1,582 environmental organizations. Simply publicizing your allegiance with a group like this will make your customers happy to do business with you, and raise their awareness about the possibility of a greener world.

7 Steps to Small Business Success

SBOCTeam — Wed, 05 Dec 2007 00:04:00 GMT

1. Start Smart
2. Plan Ahead
3. Set up Systems
4. Seek out Sales
5. Aim for Growth
6. Leverage Opportunities
7. Plan Your Exit

1. Start Smart.
Identify a niche. Don't compete to be the lowest cost provider. Look for what makes your product or service unique and adds a special value for the client and charge for that value. Every business has many facets. Start with what you know and like; start a business that has meaning to you. Keep in mind that we don't know what the future holds, many of the jobs and businesses of tomorrow don't exist today. You can create your own success.

Now is the time to dream. To start smart, you should like the idea of the business. The way to earn a good income and build wealth is by serving clients well, making their life better in some way-it's more than filling a need in the marketplace. To succeed you want to test the idea to make sure your potential clients like the idea too. Test your ideas.

2. Plan Ahead.
People often ask me why bother with a business plan? Look at the lottery as an example. You may get lucky and get the winning ticket, but the odds are against you when you rely on random chance. I'm a risk taker...but not that much, minimize the risk of going into business and maximize your potential for success. Take the time to write a plan of how you get from point A to point B. A plan gives you a clear future focus and increases your chances of success.

The first rule of a start-up is put some of your own money in the business. As the owner you must be willing to capitalize the business. The second rule is put as little of your own money as possible in the business. Prepare your plan and look for funding for your business from multiple sources, which can include a business loan or business line of credit.

Don't go it alone. Plan ahead now to build your team. Your team may include a CPA and an attorney that you work with as needed. Add a mentor from your industry and get a SCORE mentor to help you plan for success. No one has all the answers. You get more ideas and information by building a success, support team that can help you plan ahead.

3. Set up Systems.
The most basic system every business should have is a good financial system. Ask yourself how am I going to generate enough income to support myself and my family. Begin here. Put together a personal budget, so you know what it costs you to live. Now, you can move on to the business budget and sales planning, so you can see how many sales you need to break even and make a profit. The start-up expense plan, operating budget and your accounting software are vital to your success.

4. Seek out Sales.
The daunting question is how do you go about seeking out your first sale. Recognize that since you don't have a big ad budget to be seen by everyone, you need to target a niche and get connected in your market community, be it local, regional or national. You need other people selling for you-not employees-goodwill referrals. Get out and talk to as many people as you can. Join organizations that would have clients for your product or service. Become a visible part of your market, and then ask for the sale. You begin the sales process with people that you know. Yes, it's okay to start with friends and family as your first customers, and then broaden from there.

5. Aim for Growth.
The basic tenant of creating a company is that you own the company. You are not just creating a job for yourself. It's less risk and less investment to get a job. Building a business is creating a company that is more than the job itself. Think about the future. How large do you want the company to be in terms of sales, net profit and employees? Your answer to each of these questions will influence how you grow. There are varying costs and profits associated with growth. It's important to make a deliberate choice early about how you want to grow your company.

6. Leverage Opportunities.
Good luck. Good fortune. Good timing. All play a part in business. As a business owner, be very clear about your core focus for the business and how it serves clients. Your core business is what pays the bills. Then, as an entrepreneur you are about opportunity. When you see a potential opportunity or stroke of luck measure it against your core business focus. Good fortune is great, when it matches your vision for the business. Always consider if a good opportunity is the right fit for your business. If something looks great, but it's not in sync with your long-term plan and budget, think carefully before committing your company's resources.

Take advantage of good opportunities that make sense for you long term. A perfect example is McDonalds. Ray Krock started a small business that became a large franchise network with a consistent product, consistent systems and an ability to seize opportunities such as the Arch card and offering healthy salads to meet the interests of today's consumers.

7. Plan Your Exit.
Someday you may want to sell your business or retire from business. Today, ask yourself what's next? How can I have an asset in the future that someone will buy? If you are going to sell someday, you have to have something to sell-a plan, vision, business on the books, equipment and systems. Whether you have been in business for one week, one year or 15 years-look ahead to what the business itself will be as an asset. Your business has value, value you are creating today. To sell or distribute equity in the business you need to have it down on paper and keep good financials. Know the worth of your business, so you can know the value it can bring to your future wealth and/or retirement.

Brought to you by SCORE "Counselors to America's Small Business" www.score.org

Do You Have the Mindset and Skills to be an Entrepreneur?

SBOCTeam — Thu, 15 Nov 2007 14:43:00 GMT

You probably already know that starting a small business requires extensive research and analysis of many factors. But the one requiring the most critical assessment is often overlooked by many entrepreneurs. And, it's as close as the nearest mirror.

That's because wanting to be an entrepreneur is one thing; being one is quite another. You will take on responsibilities and commitments far different from those of an employee, even if you have management experience. It's a challenge that can be exhilarating and rewarding. Unless you're prepared mentally and emotionally, however, it can also be overwhelming.

Before you study financing options and plan store layouts, sit down and conduct a probing interview with yourself to see if you're the right person for the all important job of entrepreneur-owner-boss.

Are You a Self-Starter?
Nothing in business happens by itself. As the owner, you're responsible for everything from establishing your firm's vision to setting the daily work schedule. The fact that you're exploring small business ownership and asking questions is a good sign.

Are You a Positive Thinker?
The moment you become a business owner, you represent yourself, your business and your expectations for success. What you say and do must convey confidence and commitment to moving forward. Employees who sense these qualities will share that determination to succeed, even under difficult circumstances. If you work alone, there will be days when you have to be your own cheerleader.

Are You Disciplined?
Your days of the "9-to-5 routine" are over. Running a small business requires a continuous commitment to quality and detail. You cannot afford to cut corners, miss deadlines or make promises beyond your capabilities. If you plan to run the business from home, you must be able to resist temptations and distractions in order to get your work done.

Are You a Lifelong Learner?
Entrepreneurs who continually seek information, new ideas and sound advice have the best chance for success. Being attuned to market trends and issues makes it easier to adjust products and services to customers' needs and preferences. You're also in a better position to enhance your competitive advantage and efficiency, and address potential problems before they harm your business.

Can You Market Yourself and Your Business?
Some people have trouble with this one because of the negative (and often unfair) connotations associated with being a "salesperson." No business, no matter how good, will succeed without some kind of marketing. The good news is that promoting your business is easier than you may think as long as you know what to do and how to do it. After all, we all enjoy saying good things about ourselves. When you craft and tell your story in the right way, more people will be willing and eager to hear it.

Can You be Objective?
Your ideas and practices may seem "bulletproof," but reality may be far different. Is there really a need for a particular product or service in your area? Are the hours of operation fair to your employees? Is renting equipment better than owning it? A good business owner knows how to examine an issue from many perspectives and understand that strengths and limitations of each.

So how did your "candidate" for entrepreneur-owner-boss do? If every answer was a "yes," your small business dream is on its way to becoming a reality. For areas of concern, the solution may be business counseling, management courses, or a concerted effort to discard some unproductive habits in favor new ones.

Finally, make it a point to conduct regular self reviews. Thinking and approaches that worked in the start-up phase may not be as appropriate for a thriving concern, or if a major market shift occurs. When you work for yourself, you want to be confident the entrepreneur-owner-boss knows exactly what he or she is doing.

Brought to by SCORE "Counselors to America's Small Business" www.score.org

Mom and entrepreneur are you among the growing number?

SBOCTeam — Mon, 15 Oct 2007 18:23:00 GMT

According to the Center for Women's Business Research, there are over 10 million firms in the U.S. that are at least 50 percent female-owned.
By Kenyunia Ransom

Women-owned firms employ 19.1 million people and generate over $2.5 trillion in sales. With those numbers growing each year, the number of women who are both entrepreneurs as well as moms keeps growing too.

So are you among these estimated 6.9 million women? It's a 24 hour a day job, you are a mom, you are a business owner, and you are busy!

People often marvel at how you do it. But what people don't often see are the long hours you put in, the lack of sleep and lack of time for yourself. Like all working moms and working dads for that matter, there is often a struggle to balance work and home life. For entrepreneurs at times this issue can be even more difficult as all business decisions usually stop and start with you.

So we offer these tips to help the woman who is the boss at her office and at her home.

Work from home
Working from home has become a viable option for many busy working women. The influx of technology and the relevant comfort level many people have doing business over the phone or online has made this phenomenon more acceptable. In fact, home based businesses ranging from property management to Internet businesses have become a multibillion dollar industry over the past few years. Sharifah Gavins, mom to 4 and President of Baltimore based event planning company The Social Butterfly says, "My home based business allows me the opportunity to not only work from a comfortable environment but allows me the flexibility to manage my household without a negative impact on my business." There are also moderate tax benefits for home businesses, but be clear you must designate exactly what portion of your home and personal services (phone, Internet, etc.) will be used for your business. A downside to some home based businesses, particularly when you are in the service industry is seeing your clients at your home or potentially seeming smaller than you may be because of lack of an outside office. However for many entrepreneurs, the home office provides a great way to balance home and work.

Hire a great assistant
As a business owner and mom, you wear many hats. A good assistant (if you can afford one) will help keep you on schedule, take away some of the administrative takes that keep many working moms at the office late, and if the working relationship is a good one, the assistant could also help with child care if necessary. Sharon Ellis, mother of 2 and owner of Athens, GA based Onepoint Visions says "I could not live without my assistant, she not only keeps my schedule, she is the first line of defense with my clients, and my boys absolutely love her." She goes on to add "At times her job description gets clouded, however we have become more than boss/assistant, she is my right hand and ensures I am a successful businesswoman and mom."

Be clear when you are mom and when you are boss
This is often the hardest thing for entrepreneurs to do. For business owners drawing the line between work and home often becomes clouded because ultimately the buck stops with you. Time management is critical - develop a set schedule and attempt at all costs to stick to it. Do your best to realize that during work hours it's time to be the business owner and save updates from home for after hours (unless of course there are emergencies). Doing this will ensure when you complete your day at work, there are no interruptions (unless absolute emergencies) from the office that could take away time from your family. Joy Mitchell mother of 1 and CEO of New Jersey based Syndicorp LLC says "My staff is well aware that I give 110% during my 10 hour workday, however when the clock strikes 6, I am off to spend my evenings with my daughter and husband. Unless there is an emergency at the office, email alerts are off, my Blackberry is off, and my employees don't call."

Remember to take time for yourself
Whether mom or entrepreneur you'll always need time to release and just be you. Wearing these two hats can make for a 24 hour a day job. However like all individuals you need time to recharge, even beyond sleep. Give yourself some alone time and find ways to refresh yourself without the family and business issues. Activities like exercising; reading books, or your favorite hobby are all ways to release after or before a busy day. Stacy Williams, mother of 3 and principle of Gotalou Finance of Charlotte, NC says "I set aside two hours each day just for me. Before I wake up my husband and the kids to prepare for the day, I take time out to exercise, read, or just meditate during quiet times. It really helps me recharge."

Kenyunia Ransom is a freelance writer whose work has appeared in the Exclusives Review and Black Opinions.

Getting Started Part III: The Money Chase

akgold — Sun, 22 Jul 2007 22:01:00 GMT

Finding the capital you need to get your business started may be easier than you think.
By Max Berry

You've come up with a business idea; you've done the necessary research and written a sure-fire business plan. Now what's the next step? Finding the money to turn that business plan into reality. There is a wide array of potential sources of funding available to entrepreneurs. Each comes with advantages and downsides.

All in the Family
Friends and family members are often the first place a budding business owner turns to when looking for money to start his or her company. “Your family is a great starting place for a loan,” says Skip Honigstein, chairman of the Orlando chapter of the Service Corps of Retired Executives (SCORE). “If you have a strong idea, the first people you are most likely to persuade are those who know you the best.” Honigstein notes that family lending is particular common among many immigrant communities, in which families often work together to launch new businesses. “You’re also likely to get much more favorable repayment terms from close relatives than you would from any bank,” he adds. If your family can’t fund your fledgling company directly, they may still be able to help obtain funding from a bank or other financial institution by guaranteeing a loan. Ted Waitt co-founded Gateway Computer in 1985 with a $10,000 loan guaranteed by his grandmother. Today Gateway has revenues of almost $4 billion a year and employs over 1,600 people.

Of course seeking money from family members and close friends has its risks as well. "Money issues can poison what were once close relationships," says business consultant C. Davis Fogg. Being in debt to the bank is one thing, feeling indebted to a family member or friend is a much more personal experience. “If your business runs into trouble and is slow to repay a loan—or unable to repay altogether—that can create serious problems with the family members who gave you the money. Remember, you don't have to spend Thanksgiving with your bank.”

"If your business runs into trouble and is slow to repay a loan—or unable to repay altogether—that can create serious problems with the family members who gave you the money. Remember, you don't have to spend Thanksgiving with your bank."

Play Your Cards Right
Increasingly, budding entrepreneurs are turning to the easiest form of borrowing around—credit cards. "Many people use their personal credit cards to start a business,” Honigstein says. “Credit cards offer a quick and convenient way to purchase needed assets while spreading out the costs over time.” Nevertheless, like any other borrowing instrument, credit cards demand careful use. “You need to watch the balances and make certain not to take on more debt than you can handle." Interest rates on credit cards often rise after certain debt levels have been reached, as well as in the event of a late or missed payment, which can cause your debt to increase rapidly.

“There are genuine advantages to using credit cards wisely,” says Gerri Detweiler, author of The Ultimate Credit Handbook. “Credit cards also provide convenient billing statements that allow you to track expenses,” she adds. However, using personal credit cards can negate that advantage by mixing your personal finances too closely with those of your business. “If you are late with a payment or run too high a balance on a personal card that you are using to run your business, your credit rating will suffer.” That can hurt you in the long term if you need to borrow money for non-business related reasons—car loans and home mortgages, for instance. Detweiler advises trying to separate your business and personal finances as soon as possible.

“Most banks and other lenders are working hard to recruit new small business customers,” she says. “So as soon as you file the forms with the state to open your business, you may find yourself deluged with business credit card offers.” Detweiler says that business credit cards will help insulate your personal credit rating from any trouble your business experiences. (To find and compare business credit card rates, try searching my3cents.com or bankrate.com.) Many business credit cards offer some form of rewards program for specific purchases that can result in considerable savings on items like office supplies. “You should definitely take advantage of rewards programs,” Detweiler says. She adds that having more than one business credit card is often useful because the rewards programs and rates and fees vary significantly between different cards.

The Traditional Approach
Beyond family and credit cards, there is still the traditional bank loan. Many first time entrepreneurs are wary of approaching a bank with plans for a new business, assuming that they will be rejected, but today most banks are eagerly looking for small business accounts. “Banks are going out of their way to find new businesses,” says SCORE’s Honigstein. “But you will still have to demonstrate to them that your idea is workable and that you are a good risk.” That means providing them with a well-conceived, well-researched, clearly written business plan. “Your presentation to the bank needs to be professional in every way,” Honigstein advises.

Among other things, banks will scrutinize your financial history, including your credit record. So make certain you have resolved any outstanding issues before applying for a loan. The Small Business Administration (SBA) has a program to assist entrepreneurs with the process of obtaining a new loan and works with participating financial institutions to provide small business loans for startups. You can learn more about the SBA small business loan program at sba.gov.

Max Berry is an Associate Editor/Writer for Business 24/7 Magazine.

Gettting Started Part II: Get A Plan

akgold — Sun, 22 Jul 2007 21:37:00 GMT

A well-executed business plan is a critical first step for every new business.
By Max Berry

You think you’re ready. You know what sort of business you want to start. You’ve written down your idea, narrowed its focus, and done the basic research. Now, what’s the next step? Turn that idea and research into a formal business plan.

Writing a detailed business plan is an essential step toward getting your business off the ground. Not only will the business plan help guide you through the challenges and complexities of launching your business, but it will also prove essential if you decide to apply for a loan to fund the business. “Banks look for signs that you know what you are doing and that you are really committed to your business idea,” says Martin Lehman, counselor at the New York chapter of the Service Corps of Retired Professionals (SCORE). “They need to see that you’ve worked through the details of your idea in a systematic way and have given real thought to the problems you may face.” The existence of a well thought-out, clearly written, well researched and realistic business plan will prove critical to demonstrating your seriousness and professionalism to any financial institution you decide to approach.

So what goes in the business plan? Business plans have a general layout. The plan should open with an executive summary that states in a few sentences, or a short paragraph, what the business will do and why you are the person—with the right experience, education, etc.—to make it happen.

Research, Research
After the executive summary you will want to lay out your market research and analysis, demonstrating that there exists an adequate pool of consumers willing to purchase your product or service. You can find precise data from government publications, industry publications, trade groups, and local chambers of commerce. You should also define the extent of the competition your business will face within the area it operates and how your business will stand apart from that competition. “You need to be realistic when assessing how much competition your new business is likely to face,” says business consultant C. Davis Fogg. “Too many startups don’t realize how difficult it is to attract customers—especially if there are well-established similar-type businesses already in the area.”

A Solid Structure
Describe your new business’s structure. How will your business deliver its products or services? Who will do what? Where will your operations be located? It may make sense to create charts that lay out the company’s critical processes, and executive decision-making responsibilities. “It’s a good idea to answer as many management questions as possible ahead of time,” advises Lehman. “If you have a partnership, for instance, who gets the final word on difficult decisions? The more detail the better.” Be sure to define the company’s ownership—will you own it completely, or are there co-owners or partners in the business? If you already have a team of key personnel in place, include their resumes or biographies and descriptions of their roles in the business.

Be Descriptive
Be sure to describe your product or service as well as your marketing plans in detail. “Again, detail is key,” says Lehman. “Don’t assume that a simple description like ‘coffee shop’ or ‘retail clothes store’ is enough.” Explain exactly what your business sells with as much specificity as possible and how your product or service distinguishes itself from the competition.

The Bottom Line
Finally, you need to explain the financial workings of your business. How much money will it cost to produce your product or service, rent a location (if applicable), pay any employees (including yourself), market the business, and purchase needed supplies? “If you are just launching your business,” Lehman says, “this can be tricky, since you don’t have an established track record to rely on.” So you will have to project your likely expenses and revenues based on your research. “And this can be the trickiest part of all,” Lehman warns, “because there’s a huge temptation to put everything in the best-possible-case-scenario kind of thinking.” Too many fledgling businesses, he says, are too optimistic when it comes to forecasting just how much money they will need to start the business and keep it running, and even more optimistic when assuming how many customers they will attract in their early days. “Sometimes its better to be a little pessimistic,” he says. “In any range of estimates, look at the less favorable ones.” In short, be conservative—assume expenses will be higher and initial revenues lower. Calculate a break-even forecast that shows the sales figure you will need to achieve just to break even, and then make sure your market research backs up the idea that you will get at least that many customers.”

For more information, including templates and guidelines for writing a business plan:
U.S. Chamber of Commerce (www.uschamber.com)
Small Business Administration (www.sba.gov)
SCORE (www.score.org).

Offline Resources:
Business Plans for Dummies by Paul Tiffany and Steven Peterson
The Complete Book of Business Plans by Joseph A. Covello and Brian J. Hazelgren
Both are available from online vendors or at many public libraries.

Max Berry is an Associate Editor/Writer for Business 24/7 Magazine.

Be sure to look for Part III of this article, which will examine how to raise money to start your business and how to market your products or services.

Damage Control - Mistakes to Avoid

akgold — Sat, 21 Jul 2007 01:44:00 GMT

Before you consider starting your own business, be aware of the three most common mistakes to avoid
By Max Berry

When Doug Malone tried to start his first home renovation business in Boston, Massachusetts, several years back he quickly discovered that the market was already so saturated with general contractors that he had trouble attracting customers. “I just assumed that because I had a lot of experience working in home renovation and that it was something so many people were interested in, I wouldn’t have any problems.” After barely scraping by for two years, Malone relocated to another town further outside Boston with fewer contractors and tailored his business to specialize in remodeling kitchens. His new business flourished. “If I’d done my homework the first time, I’d have known that there was too much competition where I’d been living, and that I needed more focus,” Malone says.

Mistake No. 1: Little or No Research
Malone’s problem illustrates a common mistake new entrepreneurs frequently make when trying to start their businesses: failure to properly research their idea. All too often, fledgling business owners are so impressed with the brainstorm they had for their business that they neglect to ask fundamental questions regarding both their business concept and the marketplace where they plan to locate. Will my products/services appeal to enough people? Are there any similar businesses operating in the area? Are the local economic and cultural demographics likely to support the sort of business I’m contemplating? Has anyone tried to start such a business there before?

Learning about the type of business you are planning to start is critical, says Martin Lehman, counselor at the New York Chapter of the Service Corps of Retired Executives (SCORE), which offers advice to small business owners. “Have you ever worked in the field? If you plan to open a store, for instance, have you ever worked in retail? Before you open your own apparel store, you should probably take a job at another clothing store to see how a store like that is run,” Lehman advises. Getting hands-on experience is critical for making realistic judgments about the viability of your idea and how much getting it running will cost. “Write up a business plan,” Lehman says, “and be as specific as possible.”

Mistake No. 2: Not Asking for Help
Gathering enough information to adequately plan for your new business may require more than just looking through phonebooks, business directories, chamber of commerce reports, and studying the neighborhood. You may have to consult experienced business people who can help you navigate the often complicated and hazardous challenges of your company’s earliest days. Unfortunately, that’s another mistake new small business owners often make—failing to seek help when they need it. Many entrepreneurs are willing to consult family and friends, most of whom have no experience building a business, but are reluctant to approach a professional organization or consultant who has experience truly relevant to the entrepreneur’s needs. Organizations like the Small Business Administration (sba.gov), or SCORE (score.org) offer considerable resources and counseling to would-be small business owners and can help you research and develop your business plan, as well as providing useful advice once you have the business up and running. Also check with your local chamber of commerce for any small business advocacy organizations in your area.

Mistake No. 3: Being Unrealistic About Time and Money
Perhaps the biggest mistake entrepreneurs make is underestimating the time and cost involved in launching a new business. Even though technology has made it possible for small businesses to accomplish more for less money, building a business still requires an ongoing financial investment. Moreover, it requires time—a lot of it. Many would-be entrepreneurs try to start their businesses while still holding down a full time job, and when they see the costs and time demands escalate, they throw in the towel rather than endanger their savings or career. Computer industry observer and author Paul Graham lists this as one common problem in his book 18 Mistakes that Kill Startups. Graham argues that many entrepreneurs secretly lack confidence in their new business effort and balk at the idea of spending too much time or money on it. “Most startups fail because they don’t make something people want, and the reason most don’t is that they don't try hard enough,” Graham says. “The biggest mistake you can make is to not try hard enough.”

Max Berry is an Associate Editor/Writer for Business 24/7 Magazine.

Getting Started: Part I

akgold — Sat, 21 Jul 2007 00:33:00 GMT

Be sure to do all your homework before you take the plunge and start your own business.
By Max Berry

So you want to start your own business? Maybe you have an idea you think is so good, you believe it will be a sure-fire hit. Or perhaps you are simply sick of working for someone else and just want to strike out on your own. The first step in founding a business is to define exactly what your new business will do, in as specific terms as possible.

If you don’t have a specific idea for a business of your own, you might want to consider buying a franchise—that is, opening an outlet of an existing successful business. If you have your own idea for a business, the first thing you should do is to write that idea down on paper. You can start by writing down a general idea, and then develop it, narrowing its focus. “Too often,” says management consultant C. Davis Fogg, “people have too vague an idea about what they want to do. Just saying ‘I want to open a store,’ or ‘I want to build computers’ isn’t enough. A small business can’t be General Motors—it needs a tight focus in order to distinguish itself from the competition.”

Putting your idea on paper makes it easier to focus on the details. “There is no substitute for writing it down,” say Martin Lehman, counselor at the Service Corps for Retired Executives (score.org), which helps small business owners get their businesses off the ground. “Write down your idea, and then break it down to the smallest elements: Who exactly will be your customers? What products or services will you offer?” Be specific, Lehman advises. Write an exact description of the products or services and to whom they would appeal. “Don’t just assume ‘people’ will want whatever your business is selling—try to figure out what type of people, what age, income, gender. You need to know who your business appeals to before you can judge how it will do in the market.”

Understanding the specifics of your idea is the most important starting point for launching your business. Once you know exactly what you want your business to do, you can begin to research the mechanics of your idea. Where should you locate the business? In what geographic market will your business function? What is the competition? Is there enough consumer appetite for your products or services to keep your new business going? Has anyone else opened businesses similar to yours in the area and what happened to them? What will it cost to procure the equipment or supplies you will need? This applies to franchise operations as well. Franchises generally offer fairly specific information about costs and often have rules regarding location, advertising, and the décor of franchise outlets. Still, whether a particular franchise is a good fit for a given area and for you is something you can only determine through dedicated research.

Your research might include visiting similar businesses, or even working for one in order to gain experience in that business, if you’ve never worked in a similar field. This is particularly true in the case of a franchise. “Seeing how a particular business operates on a day-to-day basis is crucial to figuring out if you actually want to run one of your own,” says Fogg.

If you have never run a business before, or have little experience in the type of business you wish to start, you should seek out people who have and talk to them about their experiences. Their advice can alert you to difficulties you may not have anticipated and point to possible solutions.

“Before I opened my first retail store, I went to several possible locations and stood outside them all day long, just watching who passed by,” Lehman says. “That way I could see what sort of people would be walking past the store on a regular basis, and then I chose the location with the most people I thought likely to buy what was in my store.”

As you progress with your research, you can begin to create a detailed business plan. Your business plan will assemble all the information you gathered during your research and translate that data into a clearly stated outline of your business.

Max Berry is an Associate Editor/Writer for Business 24/7 Magazine.