Free daily tips, information, advice and ideas
to help you better manage your small business.
Deciding what business to go into is a perplexing problem for many. It need not be. If you are sorting through several possibilities, you need to step back and take a fresh look at yourself.
You have several interests that you are passionate about. For some, it's physical fitness. For others, it's gardening or video games or music or dozens of other pursuits.
So you begin with yourself. Among your interests, is there one that can be made into a business? The answer is yes. Any interest can be turned into a business.
Next question. Can the business be grown into a size that I will be comfortable managing? Now, this is when the difficulty begins. Be honest with yourself. Do you want to work alone as a one-person business? Or do you want to grow into a multi-employee business?
These questions must be answered before you begin your new business.
Example: Jesse began playing guitar as a youngster. In high school he was a member of a band. That was 10 years ago. He decided to turn his interest in guitar into a small business built around music. He began teaching guitar to others and built up a following. He decided to open a small music shop where he sells and repairs guitars. Today, he is still a one-person business, supporting his family. He still plays in local bands.
Example: Matt loved sailing. Whenever he had time away from his corporate position, he was at the local lake. Deciding he would make a transition, Matt began offering informal sailing lessons to others. His reputation spread. He got himself certified as an instructor in water safety. He began giving group as well as private lessons. When he was ready, he quit his corporate job and set up a small sail shop at the lake. Today, he sells sailing gear and supplies and sailboats. It took several years to make the transition, but today Matt is happy.
Example: The arts and crafts field offers many opportunities to establish a small business. Artists and artisans today offer painting and pottery, fibers and wools, beads and beading, wood turning, basketry, quilting, glass, metal work and many others. They can work alone or ban together to work with others--the choice is theirs. They set up websites and are on social media, attracting widespread attention. Some are members of co-ops which attract more attention from the buying public than single studios. Others offer their creations through gift shops--or they establish a high end gift shop themselves. But all of them turn their passion into a business.
Deciding where to start can be frustrating. The answers to starting decisions are inside you. Start with what you know and what you are interested in. Then you build.
Deciding what business to go into is similar to the young person's complaint--I don't have the experience to get the job I want, but I can't get the experience without having the job. This is a lame excuse at best. Just do it.
Monday, April 20, 2015
Friday, April 17, 2015
Percent vs. dollars
Free daily tips, information, advice and ideas
to help you better manage your small business.
Every business can use sales to build traffic and move goods and services. Sales can take different forms. Inventory can be marked down, dollars-off coupons can be offered, and then there is the "50% off everything" banner strung across the entrance.
"Dollars off" and "percent off" notices attract the attention of your present clients/customers as well as people who have never done business with you. But what's the difference?
Example: Gretchen runs an upscale shop specializing in women's clothing and accessories. From time to time she held a sale, putting much of the merchandise at 20% discount. She decided to try another approach. She put the word out that certain items would be offered at dollar discounts. Some items were $20 off, others $50 off. When she used "dollars off" as opposed to "percent off" the results were noticeably better.
A variation of this occurs with big ticket items. New cars are frequently advertised with "$1,000 cash to buyer" at the time of sale. It draws more attention in a more positive way than offering a percentage off the price of the car.
Example: Gustav runs a small auto repair shop. He uses coupons to attract attention of current and future customers. Side by side, coupons offer $10 off an oil change and 10% off other auto services. His coupons appear in print (ads, flyers, postcards) and on the Internet (social media, website, emails). The $10 off coupon brings people into the shop, and the 10% off coupon brings them back.
Percent vs. dollars off is all about the perception created in the minds of the people you want to attract. It is next to impossible to pass by that $10 bill you see on the sidewalk--so you bend over and pick it up. Not so with percent off.
The next time you want to do a little promotion, try the "dollars off" method. A coupon that is worth a dollar is a coupon that is just like the dollar bill in your wallet. It's perceived as money. Either people use it themselves, or they pass it on to a friend.
Get creative in promoting. Use both percent and dollars off and test out the results. It might surprise you and get you onto another way to grow.
to help you better manage your small business.
Every business can use sales to build traffic and move goods and services. Sales can take different forms. Inventory can be marked down, dollars-off coupons can be offered, and then there is the "50% off everything" banner strung across the entrance.
"Dollars off" and "percent off" notices attract the attention of your present clients/customers as well as people who have never done business with you. But what's the difference?
Example: Gretchen runs an upscale shop specializing in women's clothing and accessories. From time to time she held a sale, putting much of the merchandise at 20% discount. She decided to try another approach. She put the word out that certain items would be offered at dollar discounts. Some items were $20 off, others $50 off. When she used "dollars off" as opposed to "percent off" the results were noticeably better.
A variation of this occurs with big ticket items. New cars are frequently advertised with "$1,000 cash to buyer" at the time of sale. It draws more attention in a more positive way than offering a percentage off the price of the car.
Example: Gustav runs a small auto repair shop. He uses coupons to attract attention of current and future customers. Side by side, coupons offer $10 off an oil change and 10% off other auto services. His coupons appear in print (ads, flyers, postcards) and on the Internet (social media, website, emails). The $10 off coupon brings people into the shop, and the 10% off coupon brings them back.
Percent vs. dollars off is all about the perception created in the minds of the people you want to attract. It is next to impossible to pass by that $10 bill you see on the sidewalk--so you bend over and pick it up. Not so with percent off.
The next time you want to do a little promotion, try the "dollars off" method. A coupon that is worth a dollar is a coupon that is just like the dollar bill in your wallet. It's perceived as money. Either people use it themselves, or they pass it on to a friend.
Get creative in promoting. Use both percent and dollars off and test out the results. It might surprise you and get you onto another way to grow.
Thursday, April 16, 2015
Business back-ups
Free daily tips, information, advice and ideas
to help you better manage your small business.
Customers and clients don't want to hear about your problems. They have problems, too. This means that your small business cannot afford to go dark. No reason is good enough.
Equipment breaks down. Employees call in sick. Suppliers suddenly go bankrupt. Many things can go wrong. It's up to the business owner to anticipate problems that can occur. And have in place business back-ups.
Example: Elena specializes in finishing kitchens and baths with tile, granite, marble, slate and other materials. Most of the work is with ceramic and porcelain tiles imported from all over the world. She must know and stay in contact with many suppliers who can vary widely in products, availability and price. She has made it part of her business model to keep abreast of the market and maintain alternate suppliers. A client-specified porcelain tile might be in inventory at one supplier at a high price, but it can be delivered in two weeks at another supplier at a much lower price. Elena juggles suppliers against need, price and schedules.
Example: Eric runs a rug and carpet cleaning service. He serves residential and commercial accounts. Jobs are scheduled days in advance, and Eric sends two employees to each job in fully equipped vans. He cross-trains his employees in cleaning techniques and use of equipment--this gives him flexibility and back-up. Sometimes, employees call in sick the day of a scheduled appointment. This means Eric must substitute employees to meet schedules. When he runs out of substitutions, Eric jumps in the van himself.
Example: Dan runs a mid-sized printing operation. He has anticipated equipment breakdowns by having duplicate presses and computers to handle jobs without interruption. He also made arrangements with a friendly competitor--if his shop had a big problem, jobs could be farmed out to the competitor and vice-versa. Both realized that getting the job done on time was more important than competition.
There is never an excuse good enough to let down a client. They have their own problems, and you must fit into their schedules.
Backing up your operation is critical to ultimate success. You back up employees, equipment, suppliers, and anything else that can interfere with on-time deliveries.
Business back-ups include your clients as well. Sooner or later, you'll lose every client you have. You back them up by having a stream of new clients coming on board.
to help you better manage your small business.
Customers and clients don't want to hear about your problems. They have problems, too. This means that your small business cannot afford to go dark. No reason is good enough.
Equipment breaks down. Employees call in sick. Suppliers suddenly go bankrupt. Many things can go wrong. It's up to the business owner to anticipate problems that can occur. And have in place business back-ups.
Example: Elena specializes in finishing kitchens and baths with tile, granite, marble, slate and other materials. Most of the work is with ceramic and porcelain tiles imported from all over the world. She must know and stay in contact with many suppliers who can vary widely in products, availability and price. She has made it part of her business model to keep abreast of the market and maintain alternate suppliers. A client-specified porcelain tile might be in inventory at one supplier at a high price, but it can be delivered in two weeks at another supplier at a much lower price. Elena juggles suppliers against need, price and schedules.
Example: Eric runs a rug and carpet cleaning service. He serves residential and commercial accounts. Jobs are scheduled days in advance, and Eric sends two employees to each job in fully equipped vans. He cross-trains his employees in cleaning techniques and use of equipment--this gives him flexibility and back-up. Sometimes, employees call in sick the day of a scheduled appointment. This means Eric must substitute employees to meet schedules. When he runs out of substitutions, Eric jumps in the van himself.
Example: Dan runs a mid-sized printing operation. He has anticipated equipment breakdowns by having duplicate presses and computers to handle jobs without interruption. He also made arrangements with a friendly competitor--if his shop had a big problem, jobs could be farmed out to the competitor and vice-versa. Both realized that getting the job done on time was more important than competition.
There is never an excuse good enough to let down a client. They have their own problems, and you must fit into their schedules.
Backing up your operation is critical to ultimate success. You back up employees, equipment, suppliers, and anything else that can interfere with on-time deliveries.
Business back-ups include your clients as well. Sooner or later, you'll lose every client you have. You back them up by having a stream of new clients coming on board.
Wednesday, April 15, 2015
Choosing a business
Free daily tips, information, advice and ideas
to help you better manage your small business.
It seems everybody I've ever met has dreamed of starting a business. It's a common phenomenon. Then the dream gets lost in the weeds.
They think about a dozen different businesses. This might work, but I don't have the money. That is a good idea, but I don't know enough about it. Gradually they talk themselves out of every possibility.
In short, weeks turn into years and they keep showing up at their day job. It's easier than making the break. And, besides, I'm too old to start a business.
Your age has nothing to do with when you might start a business. Neither does money. You can still start a business in your home, in your spare time, with little money.
Starting a business has to do with you, your passions, your interests. You can start a business built around the things that interest you.
If you are interested in something, others are also interested. They represent your market. The business you establish brings together your passion with the marketplace. Your business matches your interests with the interests of customers and clients.
Easy examples: (1) Jason collected post cards--you know, the picture post cards showing buildings and bridges. They were popular 50 and 100 years ago. Every city and town had post cards showing the sights. Jason's day job was in accounting, but his nights and weekends were spent chasing down small collections of post cards. When his collection numbered over 10,000, Jason quit his accounting job and spent full time buying and selling post cards--at conventions, on eBay, and directly to other collectors. (2) Roberto had many LPs from the early days of rock, blues, and pop. He was passionate about the sound that LPs produced and had several stereo systems on which he played them. His LPs dated from the 1950s to the 1990s. Suddenly he discovered that there was a wide spread interest in older LPs. He set up a website and put the word out on social media. Today, Roberto's business supports his family. He sells to a marketplace that is world-wide. (3) Jennifer has done a similar thing with beer cans and bottles. (4) Margaret concentrates on items made of glass. (5) Bill is into old tools. (6) Jon turned his matchbook collection into a business.
Harder examples: (1) Ruth turned her interest in gluten-free foods into a small store that offers all sorts of food specialties. Her customers are people who want nut-free, sugar-free, GMO-free, lactose-free and other foods. (2) Carl is one of Ruth's suppliers. He set up his bakery to provide the types of foods that health-conscious customers wanted. (3) Gwen decided that pizza had another life. She set up her pizza shop with all imported inputs. Her oven came from Italy, and the flours, tomatoes, garlic and herbs come from there as well.
Your small business might never turn into a Microsoft or Apple, but the principles are the same. Do what you are passionate about, target the marketplace, and never look back.
Choosing the business to go into is not an easy task. But you always begin with yourself. Start with what you're passionate about and build out from there to find your market.
to help you better manage your small business.
It seems everybody I've ever met has dreamed of starting a business. It's a common phenomenon. Then the dream gets lost in the weeds.
They think about a dozen different businesses. This might work, but I don't have the money. That is a good idea, but I don't know enough about it. Gradually they talk themselves out of every possibility.
In short, weeks turn into years and they keep showing up at their day job. It's easier than making the break. And, besides, I'm too old to start a business.
Your age has nothing to do with when you might start a business. Neither does money. You can still start a business in your home, in your spare time, with little money.
Starting a business has to do with you, your passions, your interests. You can start a business built around the things that interest you.
If you are interested in something, others are also interested. They represent your market. The business you establish brings together your passion with the marketplace. Your business matches your interests with the interests of customers and clients.
Easy examples: (1) Jason collected post cards--you know, the picture post cards showing buildings and bridges. They were popular 50 and 100 years ago. Every city and town had post cards showing the sights. Jason's day job was in accounting, but his nights and weekends were spent chasing down small collections of post cards. When his collection numbered over 10,000, Jason quit his accounting job and spent full time buying and selling post cards--at conventions, on eBay, and directly to other collectors. (2) Roberto had many LPs from the early days of rock, blues, and pop. He was passionate about the sound that LPs produced and had several stereo systems on which he played them. His LPs dated from the 1950s to the 1990s. Suddenly he discovered that there was a wide spread interest in older LPs. He set up a website and put the word out on social media. Today, Roberto's business supports his family. He sells to a marketplace that is world-wide. (3) Jennifer has done a similar thing with beer cans and bottles. (4) Margaret concentrates on items made of glass. (5) Bill is into old tools. (6) Jon turned his matchbook collection into a business.
Harder examples: (1) Ruth turned her interest in gluten-free foods into a small store that offers all sorts of food specialties. Her customers are people who want nut-free, sugar-free, GMO-free, lactose-free and other foods. (2) Carl is one of Ruth's suppliers. He set up his bakery to provide the types of foods that health-conscious customers wanted. (3) Gwen decided that pizza had another life. She set up her pizza shop with all imported inputs. Her oven came from Italy, and the flours, tomatoes, garlic and herbs come from there as well.
Your small business might never turn into a Microsoft or Apple, but the principles are the same. Do what you are passionate about, target the marketplace, and never look back.
Choosing the business to go into is not an easy task. But you always begin with yourself. Start with what you're passionate about and build out from there to find your market.
Tuesday, April 14, 2015
Galloping technology
Free daily tips, information, advice and ideas
to help you better manage your small business.
Technology moves at an incredible speed. Getting a website for your small business was an early concern. But we've moved far beyond that first website.
Today's technology offers many alternatives to finding and keeping clients and customers. There are many choices. Facebook, LinkedIn, Instagram, Pinterest, Twitter, and more--all these represent paths to growing a business.
Then came the app. Many big companies try to reel us in with apps. But the big boys are still learning the ropes. Some do a good job, others not so much.
Apps differ drastically from the older website. Content on websites is usually lengthy and requires some navigation. Content on apps is very brief and to the point.
Example: Justine runs a restaurant serving people from a wide area. Many of these customers come from local corporations, businesses, and professional offices. In the past, Justine sent out faxes to regulars showing the special of the day. This brought in diners for lunch who otherwise might have gone elsewhere. But faxes are so, well, yesterday. Justine discontinued the fax in favor of an app for mobile phones. This has taken ordering to a whole new level. Customers now order ahead and their meal is ready when they arrive. Justine still posts on Facebook her mouth-watering creations, and the website still shows the entire menu. But the app has captured the attention of many more.
Today's tech-savvy customers do not waste their time trying to find you. Today, it's more and more about them, not you. They lose interest with anything that's hard to navigate, that takes multiple steps to get what they are looking for, or that lose track of where they were when they interrupt the experience.
Examples: Apps have exploded in popularity. If you are not quite ready to have your own app, consider the other social media. Facebook offers an easy alternative for small businesses. You can post for free or you can buy ads. The list of users is endless--restaurants, dress shops, cafes and pizza shops, fitness centers, gift shops, chiropractors, holistic practitioners, auto repairers, galleries and artists and artisans. Quick pictures uploaded to your social media pages attract customers and referrals.
Get on board today's galloping technology. If you already have a website, take it to the next level with Facebook. Consider having your own app. Hey! You have to keep up. Apple is changing the way you'll get paid in the future. One day you'll be explaining to tomorrow's kids just what a credit card was.
The marketplace is on the move. Galloping technology provides the horsepower today. Are you still driving a stagecoach? How about slipping behind the wheel of a Lamborghini?
to help you better manage your small business.
Technology moves at an incredible speed. Getting a website for your small business was an early concern. But we've moved far beyond that first website.
Today's technology offers many alternatives to finding and keeping clients and customers. There are many choices. Facebook, LinkedIn, Instagram, Pinterest, Twitter, and more--all these represent paths to growing a business.
Then came the app. Many big companies try to reel us in with apps. But the big boys are still learning the ropes. Some do a good job, others not so much.
Apps differ drastically from the older website. Content on websites is usually lengthy and requires some navigation. Content on apps is very brief and to the point.
Example: Justine runs a restaurant serving people from a wide area. Many of these customers come from local corporations, businesses, and professional offices. In the past, Justine sent out faxes to regulars showing the special of the day. This brought in diners for lunch who otherwise might have gone elsewhere. But faxes are so, well, yesterday. Justine discontinued the fax in favor of an app for mobile phones. This has taken ordering to a whole new level. Customers now order ahead and their meal is ready when they arrive. Justine still posts on Facebook her mouth-watering creations, and the website still shows the entire menu. But the app has captured the attention of many more.
Today's tech-savvy customers do not waste their time trying to find you. Today, it's more and more about them, not you. They lose interest with anything that's hard to navigate, that takes multiple steps to get what they are looking for, or that lose track of where they were when they interrupt the experience.
Examples: Apps have exploded in popularity. If you are not quite ready to have your own app, consider the other social media. Facebook offers an easy alternative for small businesses. You can post for free or you can buy ads. The list of users is endless--restaurants, dress shops, cafes and pizza shops, fitness centers, gift shops, chiropractors, holistic practitioners, auto repairers, galleries and artists and artisans. Quick pictures uploaded to your social media pages attract customers and referrals.
Get on board today's galloping technology. If you already have a website, take it to the next level with Facebook. Consider having your own app. Hey! You have to keep up. Apple is changing the way you'll get paid in the future. One day you'll be explaining to tomorrow's kids just what a credit card was.
The marketplace is on the move. Galloping technology provides the horsepower today. Are you still driving a stagecoach? How about slipping behind the wheel of a Lamborghini?
Monday, April 13, 2015
Speeding up referrals
Free daily tips, information, advice and ideas
to help you better manage your small business.
Everyone in business knows the value of referrals. Referrals come to you on the wings of another's reputation. Mary mentions you and your work to Janice who calls you.
Referrals happen quite naturally. And they happen all the time. People love to talk to others and your business can come up in their conversations.
You can speed up this process using all sorts of methods. Today's social media can put older advertising methods to shame. Facebook is much quicker and more effective than an ad placed in the local newspaper.
Example: John is a plumber. He did not renew his telephone book ad when it ran out. Instead, he put the word out on Facebook--posting pictures now and then showing leaky faucets. The pictures were reminders that everyone needs a plumber--sooner or later. John got calls as the referrals went around the neighborhood.
Fitness centers, salons, wellness centers, bakeries, garden centers, and others use social media to extend their referral reach these days. But some older methods still work beautifully.
Example: Takisha opened her small neighborhood restaurant offering meals based on her mother's recipes. After the initial grand opening activity, business settled into a ho-hum routine. She knew that, if she could get more people through the door, they would become regulars--and bring even more people. To spread the word, she had some special cards printed. One side showed a colorful picture of a plate overflowing with food. The other side was printed like a coupon--present the card and receive any menu item at half price. The card was not to be used by the customer but passed on to a friend, and there was an expiration date. Soon the cards began to come back in, and Takisha saw faces she had not seen before. For the price of one half-price menu item, she doubled her customer base by putting regulars to work in the field. She continues using this method about 2 or 3 times each year.
Example: Robert runs a small construction company. He handles projects small and large. To grow he actively follows up with clients by visiting them, ferreting out any problems they might have, nails down any future work they might be planning, and he asks for referrals. These follow-ups enhance Robert's reputation and keep his construction capabilities fresh in their minds. Many of his customers refer people to Robert, especially since Robert reminds them what he can do by following up.
When you go looking for ways to speed up the referrals, don't ignore methods that have worked in the past. Social media can be very effective, but older methods can still work. The trick is to get the balance in place that works for you and your business.
Asking for referrals still works. If you have a good relationship with your clients and customers, they won't mind being asked to refer others to you. As with anything else, don't become a pest about it.
to help you better manage your small business.
Everyone in business knows the value of referrals. Referrals come to you on the wings of another's reputation. Mary mentions you and your work to Janice who calls you.
Referrals happen quite naturally. And they happen all the time. People love to talk to others and your business can come up in their conversations.
You can speed up this process using all sorts of methods. Today's social media can put older advertising methods to shame. Facebook is much quicker and more effective than an ad placed in the local newspaper.
Example: John is a plumber. He did not renew his telephone book ad when it ran out. Instead, he put the word out on Facebook--posting pictures now and then showing leaky faucets. The pictures were reminders that everyone needs a plumber--sooner or later. John got calls as the referrals went around the neighborhood.
Fitness centers, salons, wellness centers, bakeries, garden centers, and others use social media to extend their referral reach these days. But some older methods still work beautifully.
Example: Takisha opened her small neighborhood restaurant offering meals based on her mother's recipes. After the initial grand opening activity, business settled into a ho-hum routine. She knew that, if she could get more people through the door, they would become regulars--and bring even more people. To spread the word, she had some special cards printed. One side showed a colorful picture of a plate overflowing with food. The other side was printed like a coupon--present the card and receive any menu item at half price. The card was not to be used by the customer but passed on to a friend, and there was an expiration date. Soon the cards began to come back in, and Takisha saw faces she had not seen before. For the price of one half-price menu item, she doubled her customer base by putting regulars to work in the field. She continues using this method about 2 or 3 times each year.
Example: Robert runs a small construction company. He handles projects small and large. To grow he actively follows up with clients by visiting them, ferreting out any problems they might have, nails down any future work they might be planning, and he asks for referrals. These follow-ups enhance Robert's reputation and keep his construction capabilities fresh in their minds. Many of his customers refer people to Robert, especially since Robert reminds them what he can do by following up.
When you go looking for ways to speed up the referrals, don't ignore methods that have worked in the past. Social media can be very effective, but older methods can still work. The trick is to get the balance in place that works for you and your business.
Asking for referrals still works. If you have a good relationship with your clients and customers, they won't mind being asked to refer others to you. As with anything else, don't become a pest about it.
Friday, April 10, 2015
Goodbye corporate
Free daily tips, information, advice and ideas
to help you better manage your small business.
Leaving corporate America to start a small business can be an education in itself. I know, because I did it.
Lucky for me, I grew up in a family of small businesses. Drawing on that past experience, I was prepared for the daily activities of running a small business.
In corporate America, you don't worry so much about absent employees, finding new clients and customers, cash flow shortfalls, and cleaning the place up on a regular basis. In small business America, you are your own back-up.
Example: Catherine had a successful career at a major corporation. When the company offered early retirement packages, she took advantage of it and left with a substantial payout. She took some time off and looked around for a small business. She homed in on a fast food franchise, joined the local chamber, and proudly held a grand opening. Then the hard lessons came--fast and furious. She dealt with kitchen inspectors and signage people, she mopped the floor when the cleaning people didn't show up, she calmed upset customers, she jumped in the cook fell ill. Exhausted, Catherine sold the business. Today, she makes pottery in her garage studio and is building a business she loves.
In corporate America, other departments are at your beck and call. Someone else can handle all the small problems. If there is a big problem, you hold a meeting.
In small business America, you are it. You handle whatever comes up. The hands you depend on are at the ends of your own arms. And there's no time for meetings.
Example: John also took an early retirement package from a major company. He had long experience as a company sales representative, and he had built up a substantial list of satisfied clients. John invested his payout in municipal bonds. Then he started a one-man business as an independent manufacturer's representative. He was careful not to compete with his former employer, but the clients knew him and he knew them and they needed other products and services. John used these relationships to quickly build a business of his own.
Most of the people I ever knew in corporate America have thought about leaving. There is something about being your own boss that is very appealing.
When you decide to leave, look in the mirror. Are you up to running your own operation? Do you know the business you are considering getting into? Do you have enough money to last at least a year with no paycheck? And, most importantly, what is the market for what you are considering? Where is that market headed? What is the competition? With the marketplace in mind, can you see your way clearly ahead?
The market for your products/services forms the basis for a business plan. All the pieces of your business plan come down to the bottom line. Numbers don't lie.
Corporate America and small business America live on different planets. They speak different languages. The culture is completely different. Before you jump, consider it carefully.
If you leave corporate America to establish your own small business, make certain that it is something you love. You must be passionate about the business you go into. That way, you won't mind all those dirty little details--like mopping the floor.
to help you better manage your small business.
Leaving corporate America to start a small business can be an education in itself. I know, because I did it.
Lucky for me, I grew up in a family of small businesses. Drawing on that past experience, I was prepared for the daily activities of running a small business.
In corporate America, you don't worry so much about absent employees, finding new clients and customers, cash flow shortfalls, and cleaning the place up on a regular basis. In small business America, you are your own back-up.
Example: Catherine had a successful career at a major corporation. When the company offered early retirement packages, she took advantage of it and left with a substantial payout. She took some time off and looked around for a small business. She homed in on a fast food franchise, joined the local chamber, and proudly held a grand opening. Then the hard lessons came--fast and furious. She dealt with kitchen inspectors and signage people, she mopped the floor when the cleaning people didn't show up, she calmed upset customers, she jumped in the cook fell ill. Exhausted, Catherine sold the business. Today, she makes pottery in her garage studio and is building a business she loves.
In corporate America, other departments are at your beck and call. Someone else can handle all the small problems. If there is a big problem, you hold a meeting.
In small business America, you are it. You handle whatever comes up. The hands you depend on are at the ends of your own arms. And there's no time for meetings.
Example: John also took an early retirement package from a major company. He had long experience as a company sales representative, and he had built up a substantial list of satisfied clients. John invested his payout in municipal bonds. Then he started a one-man business as an independent manufacturer's representative. He was careful not to compete with his former employer, but the clients knew him and he knew them and they needed other products and services. John used these relationships to quickly build a business of his own.
Most of the people I ever knew in corporate America have thought about leaving. There is something about being your own boss that is very appealing.
When you decide to leave, look in the mirror. Are you up to running your own operation? Do you know the business you are considering getting into? Do you have enough money to last at least a year with no paycheck? And, most importantly, what is the market for what you are considering? Where is that market headed? What is the competition? With the marketplace in mind, can you see your way clearly ahead?
The market for your products/services forms the basis for a business plan. All the pieces of your business plan come down to the bottom line. Numbers don't lie.
Corporate America and small business America live on different planets. They speak different languages. The culture is completely different. Before you jump, consider it carefully.
If you leave corporate America to establish your own small business, make certain that it is something you love. You must be passionate about the business you go into. That way, you won't mind all those dirty little details--like mopping the floor.
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