Free daily tips, information, advice and ideas
to help you better manage your small business.
Thinking about starting a business? Stop second-guessing yourself. No matter your situation, no matter the economy, the time is now. Start that business you've been thinking about, and never look back.
Think it's too early in life? Consider the 10-year-old boy who shovels snow for his neighbors. He went on to establish a landscaping business.
Think it's too late in life? Consider the 79-year-old woman who established a bagel shop. She later sold out and retired--again.
Example: Consider the lady who worked in Corporate America and rushed home every day to the thing she really loved--making pots, creating at her potter's wheel. When she was ready, she took early retirement from her fancy position and set up her own pottery operation. Her special glazes attracted lots of attention, and her reputation spread. Today, her pottery commands high praise and high prices.
Adults are frequently locked in pursuits they little enjoy. Some rush off to change career directions--still with the comfort of a regular paycheck. Others start a business built around a compelling interest. They are looking for more fulfillment than that left behind.
Example: Consider the man who spent his spare time working for a local contractor. He honed his skills in painting houses, replacing gutters and windows, repairing stairs, tackling minor plumbing jobs and more. His long-range plan was to own 2- and 3-family apartment houses that needed work. He was setting himself up to do the work, or at least he would know how to judge work he hired done. Today, he owns and manages several small apartment houses and is building up a significant retirement nest egg.
Starting a small business is a now or never proposition. I'm fond of quoting the Good Witch of the North in the Wizard of Oz. "The place to begin is at the beginning," she told Dorothy. As we all know, we make our own beginnings.
If you are stuck in a job you don't enjoy, start making plans to leave. Start your own business built around something that causes you to jump out of bed in the morning. Your dream becomes your alarm clock.
There is never a "right time" to start a business. Get your thinking straightened out. Stop wasting time. Get at it.
Wednesday, January 27, 2016
Tuesday, January 26, 2016
Intro to crowdfunding
Free daily tips, information, advice and ideas
to help you better manage your small business
Small business begins with an idea. To turn that idea into reality takes money. Sometimes, it takes lots of money.
Not all small businesses can attract the funding they need. A therapist's office, for example, will not get much of a hearing at the local bank's loan window. The same is true for an art gallery.
Likewise, a start-up farm or landscaping business needing funds to get off the ground will be hard-pressed to find a loan. You either use your own money or you tap into a network of friends and family.
On the other hand, some business ideas can attract attention. Establishing a new wellness center in town can attract funding from the community it will serve. And a new computer game might get funded by perfect strangers looking to invest in technology.
Crowdfunding -- One of the hottest funding mechanisms today is crowdfunding. And it is being used to fund some operations.
Crowdfunding is exactly that. The funding dollars come from crowds of people unknown to you. You go on the net, tell people what you want to do, and the dollars might roll in from the crowds that see your proposal.
Or they don't. The successes that have used crowdfunding get lots of publicity. While the high fliers have raised mullions, most raise a few thousand at most. And some get no interest at all.
Third party businesses have sprung up to handle the process. They work like a dating service--sort of. Your business or idea needs funds. There are many out there who have a few extra dollars. The third party provides the platform where everyone meets and agrees to whatever rules apply.
To begin, do your research. Google "crowdfunding" and you'll get lots of possibilities. Among these, sort through the platforms you might use. Some sites you'll find are Kickstarter, Fundable, Indiegogo, EquityNet, Microventures, CircleUp, and Selfstarter. There are many more.
Some have minimums and some impose a time limit on the process. Others require an equity position in your business. Some won't take non-profits. And then there are those that just bet on the individual.
Know where you are headed before you jump into this pond. The platform in this business--is a business itself. Somehow, they must get paid for the service they offer. Dig into it.
Crowdfunding can be a godsend for your small business. Before you go for this, however, always do your business plan.
to help you better manage your small business
Small business begins with an idea. To turn that idea into reality takes money. Sometimes, it takes lots of money.
Not all small businesses can attract the funding they need. A therapist's office, for example, will not get much of a hearing at the local bank's loan window. The same is true for an art gallery.
Likewise, a start-up farm or landscaping business needing funds to get off the ground will be hard-pressed to find a loan. You either use your own money or you tap into a network of friends and family.
On the other hand, some business ideas can attract attention. Establishing a new wellness center in town can attract funding from the community it will serve. And a new computer game might get funded by perfect strangers looking to invest in technology.
Crowdfunding -- One of the hottest funding mechanisms today is crowdfunding. And it is being used to fund some operations.
Crowdfunding is exactly that. The funding dollars come from crowds of people unknown to you. You go on the net, tell people what you want to do, and the dollars might roll in from the crowds that see your proposal.
Or they don't. The successes that have used crowdfunding get lots of publicity. While the high fliers have raised mullions, most raise a few thousand at most. And some get no interest at all.
Third party businesses have sprung up to handle the process. They work like a dating service--sort of. Your business or idea needs funds. There are many out there who have a few extra dollars. The third party provides the platform where everyone meets and agrees to whatever rules apply.
To begin, do your research. Google "crowdfunding" and you'll get lots of possibilities. Among these, sort through the platforms you might use. Some sites you'll find are Kickstarter, Fundable, Indiegogo, EquityNet, Microventures, CircleUp, and Selfstarter. There are many more.
Some have minimums and some impose a time limit on the process. Others require an equity position in your business. Some won't take non-profits. And then there are those that just bet on the individual.
Know where you are headed before you jump into this pond. The platform in this business--is a business itself. Somehow, they must get paid for the service they offer. Dig into it.
Crowdfunding can be a godsend for your small business. Before you go for this, however, always do your business plan.
Monday, January 25, 2016
Raising your prices
Free daily tips, information, advice and ideas
to help you better manage your small business
Many small businesses operate on a thin margin. Income scarcely exceeds expenses, leaving little to grow and expand.
When this happens, owners should give some thought to raising prices. You might be letting your competition guide your pricing--instead of the marketplace.
The market for goods and services is all over the place. You can price low and attract the bargain seekers. You can price to meet the competition and struggle to bring clients and customers to you instead of to your competitors. Or you can price higher and attract a higher end market segment.
Example: A baker will not sell many cupcakes priced at $100 each. But that same baker can sell a creatively designed cake for a special occasion at $100--or more.
Example: A hairdresser can struggle to make a living pricing haircuts at $10. Raise the price to $50 and the bargain seekers go elsewhere. Raise the price to $100, and you define a market segment of people who seek you out for your special cuts.
These two examples show what can happen when you target a certain market segment. Your pricing will position your business in the minds of your potential customers. You are branding your business.
Figuring out and targeting your client/customer base is crucial to growing a healthy business. Adjusting your pricing to a particular market segment helps you do this. You want clients/customers who appreciate--and will pay for--your quality product/service and your superior customer service. You price to attract these people.
Example: A fabric artist who designs and sells women's accessories priced competitively with WalMart will struggle to make a living. By raising prices for a scarf or hat to $100 or more, the WalMart shoppers are weeded out in favor of a more selective and appreciative crowd.
Example: A pet groomer who offers an inexpensive grooming service can double or triple prices by offering a little more. Get the word out to drop your dog off on the way to work and pick up after work. The groomer not only grooms but "babysits" the dog all day. The client will pay much more for the convenience.
Figure out what market segment you want to serve. Then price accordingly. Price too low, and people think you product/service is not worth much. By pricing higher, you define the market you want to serve and you end up with a much healthier business.
Pricing must match the quality of your goods/services and your customer service. Brand your business with the prices you charge. Target your customer base with your pricing.
to help you better manage your small business
Many small businesses operate on a thin margin. Income scarcely exceeds expenses, leaving little to grow and expand.
When this happens, owners should give some thought to raising prices. You might be letting your competition guide your pricing--instead of the marketplace.
The market for goods and services is all over the place. You can price low and attract the bargain seekers. You can price to meet the competition and struggle to bring clients and customers to you instead of to your competitors. Or you can price higher and attract a higher end market segment.
Example: A baker will not sell many cupcakes priced at $100 each. But that same baker can sell a creatively designed cake for a special occasion at $100--or more.
Example: A hairdresser can struggle to make a living pricing haircuts at $10. Raise the price to $50 and the bargain seekers go elsewhere. Raise the price to $100, and you define a market segment of people who seek you out for your special cuts.
These two examples show what can happen when you target a certain market segment. Your pricing will position your business in the minds of your potential customers. You are branding your business.
Figuring out and targeting your client/customer base is crucial to growing a healthy business. Adjusting your pricing to a particular market segment helps you do this. You want clients/customers who appreciate--and will pay for--your quality product/service and your superior customer service. You price to attract these people.
Example: A fabric artist who designs and sells women's accessories priced competitively with WalMart will struggle to make a living. By raising prices for a scarf or hat to $100 or more, the WalMart shoppers are weeded out in favor of a more selective and appreciative crowd.
Example: A pet groomer who offers an inexpensive grooming service can double or triple prices by offering a little more. Get the word out to drop your dog off on the way to work and pick up after work. The groomer not only grooms but "babysits" the dog all day. The client will pay much more for the convenience.
Figure out what market segment you want to serve. Then price accordingly. Price too low, and people think you product/service is not worth much. By pricing higher, you define the market you want to serve and you end up with a much healthier business.
Pricing must match the quality of your goods/services and your customer service. Brand your business with the prices you charge. Target your customer base with your pricing.
Friday, January 22, 2016
Get help from social media
Free daily tips, information, advice and ideas
to help you better manage your small business
Many owners of small businesses think of social media as a one-way street to sell something. You put your business up on Facebook, and buyers come calling.
There is much more to it than that. Putting up a picture on Facebook or other social media attracts attention. You get the eyeballs for a few seconds. They might read the words you've included, or they might not. They might hit the "like" and pass it on, or they might not. They might click on your website handle, or they might not. Lastly, they might leave a comment, or they might not.
People have a short attention span. The picture you post on Facebook can be just about anything--street scenes, the newest product you offer, close-ups of hands massaging someone's back, a cake you've just baked and decorated, a plate of scrambled eggs and toast. Birds, flowers and puppies always attract attention.
Example: Heather is a Reiki expert. She has a local clientele that is growing. When she went on Facebook and LinkedIn, a funny thing happened. She expanded in a way that she had not considered. Not only did she begin pulling clients from farther afield, but several people pointed her in a completely new direction--teaching Reiki long distance. She reworked her website and now offers courses on Reiki over the Internet. She put together a webinar and attracted even more attention when she began posting on Facebook twice each week.
Example: Patrick runs a cafe offering breakfast and lunch only. He was somewhat reluctant to create a Facebook presence. When he did, he got some comments back that helped him expand. His current customers were mainly trades people--electricians, plumbers and contractors stopped in for breakfast or grabbed a quick lunch. Also, Patrick had a sprinkling of professionals and office workers. Patrick noticed comments from office workers who wanted to eat "healthy" breakfasts and lunches. He began adding items to the menu and saw that just about everyone was ordering "healthy" including the tradespeople. Patrick had caught a market wave by listening to social media feedback. He now posts on Facebook every day--specials and stand-bys.
Feedback from social media can help small businesses stay on top of current trends and grow. When you listen, people are more likely to tell you things you will not hear in person from them. Sometimes it takes reading between the lines of comments, but the feedback is there.
Look at social media as a promotional tool. It's fast, and it's cheap--free in most cases. Success comes only when you use it, and that's up to you.
to help you better manage your small business
Many owners of small businesses think of social media as a one-way street to sell something. You put your business up on Facebook, and buyers come calling.
There is much more to it than that. Putting up a picture on Facebook or other social media attracts attention. You get the eyeballs for a few seconds. They might read the words you've included, or they might not. They might hit the "like" and pass it on, or they might not. They might click on your website handle, or they might not. Lastly, they might leave a comment, or they might not.
People have a short attention span. The picture you post on Facebook can be just about anything--street scenes, the newest product you offer, close-ups of hands massaging someone's back, a cake you've just baked and decorated, a plate of scrambled eggs and toast. Birds, flowers and puppies always attract attention.
Example: Heather is a Reiki expert. She has a local clientele that is growing. When she went on Facebook and LinkedIn, a funny thing happened. She expanded in a way that she had not considered. Not only did she begin pulling clients from farther afield, but several people pointed her in a completely new direction--teaching Reiki long distance. She reworked her website and now offers courses on Reiki over the Internet. She put together a webinar and attracted even more attention when she began posting on Facebook twice each week.
Example: Patrick runs a cafe offering breakfast and lunch only. He was somewhat reluctant to create a Facebook presence. When he did, he got some comments back that helped him expand. His current customers were mainly trades people--electricians, plumbers and contractors stopped in for breakfast or grabbed a quick lunch. Also, Patrick had a sprinkling of professionals and office workers. Patrick noticed comments from office workers who wanted to eat "healthy" breakfasts and lunches. He began adding items to the menu and saw that just about everyone was ordering "healthy" including the tradespeople. Patrick had caught a market wave by listening to social media feedback. He now posts on Facebook every day--specials and stand-bys.
Feedback from social media can help small businesses stay on top of current trends and grow. When you listen, people are more likely to tell you things you will not hear in person from them. Sometimes it takes reading between the lines of comments, but the feedback is there.
Look at social media as a promotional tool. It's fast, and it's cheap--free in most cases. Success comes only when you use it, and that's up to you.
Thursday, January 21, 2016
Planning your future
Free daily tips, information, advice and ideas
to help you better manage your small business
Every small business needs a road map into its future. If you are driving to a distant city, you will do well to consult a map--it will tell you which fork in the road to take. Likewise, you deserve the many benefits that a business plan can give you.
Business plans force you to face your future. It becomes a sounding board for you as you move forward. It can help you stay on track, moving toward that successful operation you have in mind. It can help you put all the day-to-day distractions into a longer range perspective.
To get started on your business plan, you need to do some work. If you need an outline of a business plan, do a search "Business plans" on the net. Some are free. Others are come-ons to get you to buy in to additional services. Go for the freebie.
A business plan basically boils down to the expected market for your goods and services. Without selling into a market, you don't have a business. Defining the market and the expected sales to that market is the place to begin--everything else depends on this.
Who are your target clients/customers? How will you attract them to your business? What is the present and projected competition? How will you price your products/services? How much will they spend? Why will they keep coming back? What other market questions pertain to your business--and your future?
Answers to market questions must be turned into numbers. A business plan is much more than words. When you turn all your wordy answers into numbers, reality sets in. Numbers bring brutal honesty.
This is not to disparage intuition. Sometimes, you can feel in your gut a market developing. You want to serve and exploit the possibilities. But translating your intuition into hard numbers can put a better face on your business plan. And save you from disasters.
Only when the numbers work do you proceed to put your plan into operation. If the numbers identify a glitch, solve it before proceeding.
Example: You might identify a market segment that works on paper, but it is not big enough to justify going entirely in that direction. It might be a sideline or an additional source of revenue but not much of a business in itself. If this emerges on paper with the numbers, then you don't want to head off entirely in that direction. Sidelines can be important in any business, and they might develop into full businesses in the future, but it's a watch-and-wait proposition.
Many people in small business try to plan in their heads. This is a mistake. Getting your plan out of your head and onto paper will identify paths and problems that you won't otherwise think about.
to help you better manage your small business
Every small business needs a road map into its future. If you are driving to a distant city, you will do well to consult a map--it will tell you which fork in the road to take. Likewise, you deserve the many benefits that a business plan can give you.
Business plans force you to face your future. It becomes a sounding board for you as you move forward. It can help you stay on track, moving toward that successful operation you have in mind. It can help you put all the day-to-day distractions into a longer range perspective.
To get started on your business plan, you need to do some work. If you need an outline of a business plan, do a search "Business plans" on the net. Some are free. Others are come-ons to get you to buy in to additional services. Go for the freebie.
A business plan basically boils down to the expected market for your goods and services. Without selling into a market, you don't have a business. Defining the market and the expected sales to that market is the place to begin--everything else depends on this.
Who are your target clients/customers? How will you attract them to your business? What is the present and projected competition? How will you price your products/services? How much will they spend? Why will they keep coming back? What other market questions pertain to your business--and your future?
Answers to market questions must be turned into numbers. A business plan is much more than words. When you turn all your wordy answers into numbers, reality sets in. Numbers bring brutal honesty.
This is not to disparage intuition. Sometimes, you can feel in your gut a market developing. You want to serve and exploit the possibilities. But translating your intuition into hard numbers can put a better face on your business plan. And save you from disasters.
Only when the numbers work do you proceed to put your plan into operation. If the numbers identify a glitch, solve it before proceeding.
Example: You might identify a market segment that works on paper, but it is not big enough to justify going entirely in that direction. It might be a sideline or an additional source of revenue but not much of a business in itself. If this emerges on paper with the numbers, then you don't want to head off entirely in that direction. Sidelines can be important in any business, and they might develop into full businesses in the future, but it's a watch-and-wait proposition.
Many people in small business try to plan in their heads. This is a mistake. Getting your plan out of your head and onto paper will identify paths and problems that you won't otherwise think about.
Wednesday, January 20, 2016
Searching for loans
Free daily tips, information, advice and ideas
to help you better manage your small business
Every business needs funding to expand and grow. Some businesses generate excess cash internally and use it to gradually get bigger. Others go outside for a loan.
Small banks have traditionally been there when you needed them. They were the go-to place for expansion funding. That's changed. New and onerous regulations have put many community banks out of business, and those that survive are reluctant and wary--because of the regulations imposed by the federal government.
Technology is galloping to the rescue. Players other than small banks have moved into the loan market. There are today dozens of lenders who are anxious to lend money--either to you personally or to your business.
Example: Lending Club does personal loans up to $35,000 and business loans up to $300,000. This is not some questionable upstart--it has a history dating back more than 5 years. Lending Club is a peer-to-peer lender that made its debut on the New York Stock Exchange back in December, 2014. It is an online marketplace that puts people like you in front of prospective investors. You agree to a fixed rate for 1 to 5 years of monthly repayments. The funding agreed to shows up in your bank account in a few days. You apply online and get approval in as little as a few minutes. Yes, fees are involved and an interest rate applies, but these can be less than you pay on credit cards. This is not a recommendation; rather, it is a possibility for you to thoroughly check out before taking any plunge. Go to LendingClub.com for more.
Example: Another possibility is Prosper Marketplace. This company offers fixed rate unsecured loans from $2,000 to $35,000 with a 3 to 5 year payback. Rates and choices can vary depending on your situation. There is an online application and turnaround is faster than you might expect from your local bank. Again, this is not a recommendation; rather, it is a possibility for you to thoroughly check out before agreeing to anything. For more information, go to Prosper.com.
Example: There are others--OnDeck.com is another online lender providing loans to small and medium-sized businesses only. For others, do a search "Business Loans" and check them out. All of them will check you out.
Whatever you decide, make certain that the path forward fits into your long-range business plan. Using credit cards to fund your business, for example, is a bad idea.
Any lender will want confidence in you and your plan for the future. So, do your business plan--showing that you will be able to repay the loan.
to help you better manage your small business
Every business needs funding to expand and grow. Some businesses generate excess cash internally and use it to gradually get bigger. Others go outside for a loan.
Small banks have traditionally been there when you needed them. They were the go-to place for expansion funding. That's changed. New and onerous regulations have put many community banks out of business, and those that survive are reluctant and wary--because of the regulations imposed by the federal government.
Technology is galloping to the rescue. Players other than small banks have moved into the loan market. There are today dozens of lenders who are anxious to lend money--either to you personally or to your business.
Example: Lending Club does personal loans up to $35,000 and business loans up to $300,000. This is not some questionable upstart--it has a history dating back more than 5 years. Lending Club is a peer-to-peer lender that made its debut on the New York Stock Exchange back in December, 2014. It is an online marketplace that puts people like you in front of prospective investors. You agree to a fixed rate for 1 to 5 years of monthly repayments. The funding agreed to shows up in your bank account in a few days. You apply online and get approval in as little as a few minutes. Yes, fees are involved and an interest rate applies, but these can be less than you pay on credit cards. This is not a recommendation; rather, it is a possibility for you to thoroughly check out before taking any plunge. Go to LendingClub.com for more.
Example: Another possibility is Prosper Marketplace. This company offers fixed rate unsecured loans from $2,000 to $35,000 with a 3 to 5 year payback. Rates and choices can vary depending on your situation. There is an online application and turnaround is faster than you might expect from your local bank. Again, this is not a recommendation; rather, it is a possibility for you to thoroughly check out before agreeing to anything. For more information, go to Prosper.com.
Example: There are others--OnDeck.com is another online lender providing loans to small and medium-sized businesses only. For others, do a search "Business Loans" and check them out. All of them will check you out.
Whatever you decide, make certain that the path forward fits into your long-range business plan. Using credit cards to fund your business, for example, is a bad idea.
Any lender will want confidence in you and your plan for the future. So, do your business plan--showing that you will be able to repay the loan.
Tuesday, January 19, 2016
Hiring a new employee
Free daily tips, information, advice and ideas
to help you better manage your small business
New employees need to be trained. You can train a person to do just about anything. What you look for is someone who knows how to apply himself/herself to the tasks at hand, comes to work on time, has an interest in what they are doing, and shows self discipline and integrity.
You are always short-handed. Never do you have all the help you could use. So you tend to do everything yourself.
But you can be overwhelmed. It's causing you stress, you don't get enough sleep, and you could use a vacation--never an option when you are operating a small business.
If you cannot afford to add a full time employee, consider a part timer. High school and college students always need a little extra money. Hire one for 4 hours a day. Retirees also can use more money and many want to remain active. Hire one for part time--they make good employees.
You might consider bringing in an intern. Not every business is appropriate for an intern. But a law office, a chef, an insurance agency, a small advertising firm, even a grower of plants and others can bring interns into their business. Interns work for the experience and little pay is involved. It helps you and it helps them. To find someone, talk with your local vocational schools.
If you decide to add a full time employee, consider the position carefully. This is an opportunity for you to extend yourself. It's a time to carve out those activities that take up lots of your time and turn them over to the new person. Or, it's a time to bring in new talent--someone who can do things that you don't know how to do or no longer want to do. In this case, write down the things that you expect the new person to do--be specific and discuss it with them so they get off on the right footing.
Whichever path you take--part timers, interns, or full time employees--you are extending yourself. Then, you can concentrate on the parts of the business that you enjoy and the parts that are critical to the future of the business. Extending yourself allows you--and the business--to grow.
It's time to grow when you are overworked. Just make certain that your new hire fits into your long-range plans.
Always bring your business plan up-to-date before hiring anyone. That new employee must fit into your business plan.
to help you better manage your small business
New employees need to be trained. You can train a person to do just about anything. What you look for is someone who knows how to apply himself/herself to the tasks at hand, comes to work on time, has an interest in what they are doing, and shows self discipline and integrity.
You are always short-handed. Never do you have all the help you could use. So you tend to do everything yourself.
But you can be overwhelmed. It's causing you stress, you don't get enough sleep, and you could use a vacation--never an option when you are operating a small business.
If you cannot afford to add a full time employee, consider a part timer. High school and college students always need a little extra money. Hire one for 4 hours a day. Retirees also can use more money and many want to remain active. Hire one for part time--they make good employees.
You might consider bringing in an intern. Not every business is appropriate for an intern. But a law office, a chef, an insurance agency, a small advertising firm, even a grower of plants and others can bring interns into their business. Interns work for the experience and little pay is involved. It helps you and it helps them. To find someone, talk with your local vocational schools.
If you decide to add a full time employee, consider the position carefully. This is an opportunity for you to extend yourself. It's a time to carve out those activities that take up lots of your time and turn them over to the new person. Or, it's a time to bring in new talent--someone who can do things that you don't know how to do or no longer want to do. In this case, write down the things that you expect the new person to do--be specific and discuss it with them so they get off on the right footing.
Whichever path you take--part timers, interns, or full time employees--you are extending yourself. Then, you can concentrate on the parts of the business that you enjoy and the parts that are critical to the future of the business. Extending yourself allows you--and the business--to grow.
It's time to grow when you are overworked. Just make certain that your new hire fits into your long-range plans.
Always bring your business plan up-to-date before hiring anyone. That new employee must fit into your business plan.
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