October 2011

Seven Steps to Starting Your Own Business

by Tim Berry on October 31, 2011

People are always asking for a list of fundamentals, a checklist they can use to start their own businesses. From your business type to your business model to your physical location, there are so many variables it’s not easy to come up with a list that will work for everybody. The key, regardless of what type of business you’re starting, is to be flexible!

That said, here’s are 7 steps to take before you start your business.

Step 1: Personal evaluation.

Begin by taking stock of yourself and your situation. Why do you want to start a business? Is it money, freedom, creativity, or some other reason? What skills do you have? What industries do you know about? Would you want to provide a service or a product? What do you like to do? How much capital do you have to risk? Will it be a full-time or a part-time venture? Your answers to these types of questions will help you narrow your focus.

Step 2: Analyze the industry.

Once you decide on a business that fits your goals and lifestyle, you need to evaluate your idea. Who will buy your product or service? Who would be your competitors? You also need to figure out at this stage how much money you will need to get started.

Step 3: Make it legal.

There are several ways to form your business – it could be a sole proprietorship, a partnership, or a corporation. Although incorporating can be expensive, it is well worth the money. A corporation becomes a separate entity that is legally responsible for the business. If something goes wrong, you cannot be held personally liable.

You also need to get the proper business licenses and permits. Depending upon the business, there may be city, county, or state regulations as well as permits and licenses to deal with. This is also the time to check into any insurance you may need for the business and to find a good accountant.

Step 4: Draft a business plan.

If you will be seeking outside financing, a business plan is a necessity. But even if you are going to finance the venture yourself, a business plan will help you figure out how much money you will need to get started, what needs to get done when, and where you are headed.

Step 5: Get financed.

Depending on the size of your venture, you may need to seek financing from an “angel” or from a venture capital firm. Most small businesses begin with private financing from credit cards, personal loans, help from the family, etc. As a rule of thumb, besides your start-up costs, you should also have at least three months’ worth of your family’s budget in the bank.

Step 6: Set up shop.

Find a location. Negotiate leases. Buy inventory. Get the phones installed. Have stationery printed. Hire staff. Set your prices. Throw a “Grand Opening” party.

Step 7: Trial and error.

It will take awhile to figure out what works and what does not. Follow your business plan, but be open and creative. Advertise! Don’t be afraid to make a mistake.

Above all, have a ball! Running your own business is one of the great joys in life!

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Make The Most of a Media Opp!

by Susan Solovic on October 28, 2011

A television appearance. A radio interview. A magazine article or a mention in a popular blog. Every business owner understands the value of positive media coverage. There’s no better way to build your brand. Media coverage is significantly more credible than paid advertising because the content is developed by an unbiased, third-party source. That’s why companies spend a lot of time and effort trying to capture the media’s attention.

What would you do if the Today show called? Would you be ready? You certainly don’t want to blow your opportunity. A mishandled interview can damage your company’s brand. The key — careful planning and preparation. Even a seasoned professional can make mistakes without preparing properly. So here are some tips that can help you make the most your 15 minutes of fame.

First, never respond to a reporter’s call off-the cuff. When you try to wing it not only do you risk making mistakes, but you also won’t make the most of the opportunity. Find out specifically what the story is about and how it is going to be used. Ask what topics or types of information the reporter is seeking.

Next, find out the reporter’s deadline for the story so you can arrange a convenient time to schedule the interview. This provides you with the opportunity to plan and prepare your key messages. What is it you want the audience to know? Jot down your message points so you can stay in control of the interview.

Practice what you want to say. Rambling, interjecting a lot of “you knows” or stumbling over words makes you look inarticulate and unprofessional. Your mouth has memory so rehearse what you plan to say.

Avoid using slang, industry-specific jargon and acronyms. You want your message to be communicated with clarity. Answer questions in soundbites — in other words be succinct. That’s particularly important for television interviews. Most television segments are only around two minutes in length. Even if the interview is taped, make your answers short and to the point.

Don’t be fooled by a reporter’s pregnant pause. Sometimes when you have finished answering a question the reporter won’t respond immediately. A lot of people who are uncomfortable with long pauses in a conversation feel compelled to continue talking. That’s when you can get yourself into trouble by talking too much. Keep to your key messages and when you are finished — stop talking.

Always assume the microphone is on. You’ve probably chuckled at a few blunders public officials have made when they’ve forgotten to pay attention. And nothing is ever off the record. Off the record means different things to different journalists so if you aren’t comfortable sharing the information, don’t

Finally, “no comment” is never a good response in an interview. It is best to either answer the question or explain why you can’t. If you don’t know the answer to a question, admit it, and if possible, offer to help the reporter find the information she needs.

Media coverage can give you business a big boost, so plan and prepare to make the most out of your next media opp!

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5 Lessons Offered by An Entrepreneur From the Front Lines

by Tim Berry on October 26, 2011

A couple of weeks ago I got to listen to Amy Boggs, under-30 founder of a Portland,OR house cleaning business called Sparkling Palaces, sharing her story. She was fun to listen to, refreshingly honest about the ups and downs of getting her business going, and funny, too. Amy Boggs Picture

Amy started cleaning houses for most of the classic reasons people start businesses, like having a loss and wanting to make a living. She confesses to being a neat freak. And the opportunity was there.

She framed her talk in five lessons:

Accountability. Amy cites accountability, in her case, as meeting with an advisor regularly, even though it’s entirely her business. Obviously she doesn’t have to, but she says the discipline of talking to outside eyes helps her set objectives and meet them.
Know your numbers. Amy made it clear she doesn’t particularly like numbers, and had no natural inclination to business numbers. But as her business got going, She took local classes (I think at the nearest Small Business Development Center (SBDC) to learn Quickbooks, and now she minds her numbers carefully. I liked the way she related being able to understand the numbers as her way of dealing with fear, managing the worries about the possibility of the business failing. Knowing the numbers is essential, she said.
Business is a vehicle, not a destination. “My business is not me,” Amy said. “My business is a means to an end, not an end in itself.” In context she explained that she needed to get some personal distance, to be able to exhale and live her life without having every minute be taken up with the stress of running a business.
I don’t have to do everything myself. “I have a bookkeeper, a payroll provider, and HR done for me,” she said. Amy never even hinted that she thought she knew everything, or wanted to do everything by herself. As the business grew, it grew into having room and revenues to have key services performed by third parties. That makes total sense to me.
“It takes a vision fueled by values and passion.” Amen. I don’t like cleaning houses, myself, but Amy Boggs was clearly able to re-frame cleaning houses into a vision of doing something well, something that people needed and wanted done. She used that to build the business. She has tried to surround herself with people who believe the same thing.

Amy was a featured speaker at the community session of the National Association for Community College Entrepreneurship (NACCE) annual conference in Portland. It was a good meeting. Congratulations to NACCE for helping people help entrepreneurs.

(Image: courtesy of Homecleaner Magazine)

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Creating a Sales Culture

by Linda Finkle on October 25, 2011

Sales are the driving force behind any company. Let’s face it, without sales there won’t be a company for very long. Because sales are so vital to an organization, how does one create a sales culture that works? Culture is the sum of the values, customs, traditions and beliefs that make a company unique. Basically it’s how you and your staff interpret experiences and behave, individually and in a group. Thus the sales culture is what you do about selling, how you do it, what beliefs you have about selling…everything that you think and do relative to the sales process. What’s important here is to look at how you manage sales people, the sales process and your beliefs about sales people and the sales process. If everything is working as you want, then I suspect you have already created a sales culture that works. On the other hand, if you find sales below targets, turnover rate in your sales team is high, every sale is a struggle or, in your heart, you know something needs to change, then look at your sales culture.

The sales culture of a company needs to change as the business changes. External and internal factors cause companies to change over time. Assuming that what got you here will get you there is foolish and naïve. Sales cultures need to adjust as the needs of the business change. When things aren’t working, the first step is to go back to basics. If sales aren’t what you want, then examine your sales culture. I’m betting it’s outdated or no longer serving your company in the economic climate you live in today.

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Is it Harder for Women to Start and Run a Business?

by Dave Thomas on October 21, 2011

While the battle of sexes has dropped quite a bit in recent years, that doesn’t mean that women have it any easier when trying to start up their own business.

In fact, many women believe there is more pressure on them when beginning a business - pressure to be taken seriously, to make the right calls, and in some cases to realize a lifelong dream.

Many of those dreams have been realized, as recent reports indicate that more than a quarter of a million women nationwide own and lead businesses with annual revenue exceeding $1 million. In fact, a large number of these companies are multimillion-dollar enterprises.

Challenges that Come with the Territory

With the prosperity also come challenges, perceived or not. So what are some of the challenges awaiting a wife, a mother, a daughter, a single woman etc., when wanting to start their own business?

Among them are:

Being taken seriously – This is one that gets under the skin of many women, noting that they should be treated no differently than their male counterparts. While that stereotype likely still exists, it is one that can be changed when a woman shows the world that she is equal to or even better at running her own small business than a man. Don’t doubt yourself or live within stereotypes, break from them!

She’s too emotional – Women have no doubt heard this one over and over again. She’s going to let her emotions cloud her judgment and therefore make mistakes. The fact that women tend to be more emotional should actually work in their favor. While men at times make hasty decisions, a woman tends to think things through more clearly, weighing the positives and the negatives. Having some emotion regarding your business is certainly not a bad thing when used correctly.

She can’t handle all her responsibilities – For many women, having their own small business also comes with the responsibility of raising children, sometimes in a one parent environment. The perception from some is that she cannot handle the balancing act between kids and running a business. In fact, many women do just fine being both a mother and a small business owner. Yes, the work hours can be tremendous, but many women eagerly await such a challenge and meet it head on.

Pretty but uneducated – This is probably the most upsetting comment that a small business woman will hear. If you stop and think about it, many women run their family households when it comes to money, the necessary organizational plans and more. Just because she has a pretty face doesn’t mean there isn’t a great education and savvy business sense to go along with it.

She was not raised to be the leader – From an early age on, many women are taught or perceive that men are the leaders, following their lead in the process. While this is the case in some instances, we know all too well that this idea is wrong. As more and more women climb their way up the corporate ladder to head major companies, more and more women seeking to open their own small business need to follow the idea.

Worry will set in – While women oftentimes get the label (deserved or not) of worrying too much, there are countless female small business owners who prove better heads of business than men. Having a little worry in them can actually be a benefit, in that it means the woman is looking at all options and covering all her bases. If someone is a little worried about something, one thing it shows is that they care.

Whether having a small business has been a lifelong dream or a recent wish, women should plow forward the same way men do.

At the end of the day, there are many small business women who can attest to having success following through on their career dreams.

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8 Tips for Starting a Home-Based Business

by Susan Solovic on October 20, 2011

In the past, home-based businesses weren’t taken seriously. If your office was in your home, you did everything you could to hide that fact. But that’s no longer the case. Home-based businesses comprise one of the fastest growing business segments today. People love the idea of being able to be their own boss and work from the comfort of their own home.

Technology is really the key driver behind this trend. Technological advances allow you to do business anywhere in the world, from your spare bedroom. But there are some things to consider so your business gets started off right.

Do you need a permit or license? Some municipalities and neighborhood associations prohibit home-based businesses. Others require special permits or licenses so make sure you take time to check with the proper authorities.
Does your home-owners insurance cover a home-based business? Many homeowners’ policies do not include home-based business coverage. You may need to purchase a rider to protect your business assets.
Establish your legal structure. A lot of home-based businesses are sole proprietorships which require no formal legal documentation. However, depending on the type of business you are in, you may want to consider other possibilities such as an Limited Liability Company (LLC), or a Sub-S status corporation.
Establish professional business practices. Set up a bookkeeping system to keep track of business expenses and income. Also, you need a separate business checking account and credit card. Do not mingle personal and business expenses. The IRS tends to audit home-based businesses more frequently, especially if you are taking the home-based business tax deduction. So keep excellent records of all business activities and transactions.
Consider security. It’s a good idea to rent a post office box to use as your business mailing address – particularly if you are going to be alone most of the time.
Set up a business-like work environment. You should have a dedicated space for your home-based business work area. Your computer should be used primarily for business only. Using your office equipment and space for children’s games, homework and other personal uses should be minimized. Also, your office area should be void of barking dogs, screaming children and other loud noises if you interact with clients or customers on a regular basis.
Set work parameters. Simply because you work at home doesn’t mean you aren’t really working. Make it clear to family and friends that you have “work hours” just like everyone else and ask them to respect that.
Commit to your success. There are many distractions when you work at home. Make a commitment to yourself that you are serious about your business. Be disciplined about your work effort.

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It’s Your Biz Is an Excellent Resource Book for Starting a Business

by Tim Berry on October 19, 2011

After way too much traveling, I finally got back to my office Monday morning to find a fresh new copy of Susan Solivic’s new book It’s Your Biz: The Complete Guide to Becoming Your Own Boss. I hope you know Susan as a frequent author here on Up and Running. She’s founder of itsyourbiz.com, and SBTV.com before that, a frequent talking head on several national television programs, and author of three previous books and thousands of web posts and articles.

She knows this territory well. She’s been there. And she’s written a great summary, comprehensive, a start-to-finish how-to manual on starting a business. (Aside: which I hate to call being your own boss, because your customers’ are your own boss, but this is still a great book, even with that subtitle).

In 12 chapters, Susan gives a reader a very nice mix of deep and thoughtful behind the scenes guides for thinking, plus specific, practical on-the-ground advice. She covers concepts and strategy, sales and marketing, hiring, dealing with legal matters, protecting yourself, choosing a location, and even – the magic secret sauce – pricing.

For an example of the deep, thoughtful, and – to my mind – essential, here’s a quote from Susan’s chapter “Purpose, Promise, and Principles:”

Why are you doing what you’re doing? It’s amazing how many business owners and their teams go through the motions of running their businesses on a day-to-day basis without ever understanding the purpose behind what they’re doing. They might as well be zombies. Business without a purpose don’t have a heart. They don’t stand for anything, and as a result, they don’t stand out from similar businesses.

And as an example of practical advice tempered by true stories and learning from mistakes, I like this simple real-world personal example for her chapter on hiring employees, titled “People Matter:”

I didn’t listen to my own advice once when it came to hiring a new employee. Not only did I pay the price, but so did my team. My choice had been between two job applicatns; one had slightly more digital media experience than the other, but the one with less experience seemed a better personality fit. What did I do? I hired the one with more experience.

He was a bad fit from the very first day. In the end, he slammed the door to our executive producer’s office and marched back to his office. I followed closely on his heels and dismissed him on the spot.

If you’re looking at starting up, this book is easy to read and full of useful advice, examples, questions, and stories.

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How to Overcome Resistance to Change with Employees

by Linda Finkle on October 18, 2011

Change happens every day in business and in our personal lives. The same person who adapts well to personal change may not adapt well to change in their professional life. As a leader, how do you overcome resistance to change with employees? I think it depends on the nature of the change. Changes that personally impact many employees, such as a downsizing, merger/acquisition, change in the top leadership…these are changes that have widespread implications. Other changes, such as a change in technology, direction of their department, change in their individual roles/responsibilities…these, I believe, are more easily handled. But the question ‘how to overcome resistance to change’ is not easy to answer regardless of the magnitude of the change. Truth is, change is difficult for many and there is not a one-size-fits-all solution.

However, you can take some basic steps to manage through the changes. Communication is key. Communicate often and openly. Resistance to change happens when people don’t have all the facts, assumptions are made and rumors fly. Secondly, acknowledge their feelings about the change and empathize. Don’t, however, let them wallow in their feelings. Sooner or later they will have to step up and accept the change, or step out. Finally, understand that there will be some employees who cannot or will not adapt to the change. People are people and you can’t affect all of them. Accept this as part of the process.

I wish I could offer specific answers to the question on how to overcome resistance to change with employees, but frankly it’s a bit of trial and error. You know your people, and what works for one company may not work with yours. But just keep talking to them. Sooner or later they will come around … or they won’t and they will leave. Either outcome is OK.

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How to Not Waste Your Time with SEO

by Guest Author on October 17, 2011

You could spend the rest of your life reading detailed guides to SEO and meticulously cramming keywords into every possible tag on your website. You could also empty your bank account on marketing consultants or a crack marketing team that works day and night to raise your company’s search engine profile. For marketers and companies with limited time and resources, it’s critical to focus on the SEO strategies that bring in the best results.

Whether you’re designing your blog or hiring an expert to handle it for you, here are the key aspects of SEO that you need to focus on in order to get the most for your time and money.

Use the Google All in One SEO for WordPress
There aren’t any magic tricks you can do to make your site rise in the search rankings. Perhaps the closest you can come to magically raising your rankings is using WordPress and its plug ins. If you are using WordPress for your website or blog and you want a simple way to bump up the SEO of your website, a simple plug in is a great place to start. The Google All in One SEO plug in will make your site search-engine friendly and provide a simple interface for plugging in keywords and clear titles.

If you are a DIY marketer, this tool is a great place to start and a real time-saver. Some developers claim that Headspace2 has more features than the All in One plug in, and you can compare them in this chart.

Optimize Your Page Title’s SEO for Readers
Of course every guide to SEO is going to trumpet the importance of nailing the keywords for your page title and description, but there’s one critical angle that you don’t want to overlook. By using Google Instant’s auto fill for searches, you can learn what your potential readers are already searching for and which keywords go together in the most common searches.

In other words, you can use Google to tell you what people are already searching for and then refine your website’s title keywords accordingly. Learn more about how Google Instant works.

Use Long Tail Keywords for SEO on Your Web Page
While it’s critical to include the top keywords for your field, don’t overlook variations and less common keywords—the long tail of keyword traffic so to speak. By using a broader range of keywords you can improve your website’s copy for readers while ensuring that you fill up your h2 and h3 headings throughout your pages with a wide range of relevant terms that will reach the broadest segment of readers.

In fact, too much keyword repetition could hurt your page rankings as Google’s search capabilities have grown wise to keyword stuffing techniques. Don’t spend your time on the increasingly insignificant meta keyword tags for your site. Google and Bing don’t even bother with them. Even ‘alt tags’ for your images are believed to have a minor impact on your search rankings. Nail the title and subtitle keywords and write a diverse keyword article full of information that readers need. If you nail the content, you’ll get inbound links.

Focus on Generating Meaningful Inbound Links for SEO
Another key to the SEO game is making sure you have meaningful inbound links from sites with high authority. It’s far more important to have links from twenty experts and leading trade sites than to enter your information in a hundred no-name directories. The relationships you build with top notch bloggers and the articles shared on top websites will give your SEO a significant boost.

Take Stock of What You Can Do
If you can’t do everything the SEO experts suggest, review this list that ranks the top SEO practices according to a grading system that indicates their importance. SEO is too important to ignore, but every business operating within the constraints of a budget and time and space—which hopefully includes all of us—will need to prioritize what will work and what produces the best results. In fact, if you aren’t already, make sure you track the effectiveness of your SEO regularly.

Optimizing your website for search engines takes time and planning, but by cultivating several practices you’ll get better at integrating keywords in the places where they matter and producing content that readers are looking for online.

This guest post is written by marketing enthusiast, Lior Levine, who works for a variety of MA In Israel programs, particularly the MA in political science department at the Tel Aviv University.

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The Process of Planning

by Chelle Parmele on October 14, 2011

When is a plan not a plan? When it’s a tool.

Perhaps the most important factor in achieving your desired result and turning your plan into a management tool is regularly reviewing the plan.

In the final two videos of Tim Berry’s video series on how to write a successful business plan, he talks about the actual heart and soul of business planning.

It’s not in the number of pages you have, or in how the finished product looks, or even if everything is spelled right. It’s in its ongoing success. Were you able to take your thoughts, ideas, forecasts and plans and make them work? Did your work on the original plan give you the proper base from which to continue your business by making adjustments, setting goals and milestones and achieving them as close as possible to what you’d planned?

This is the key.

A business plan is never done.