Archive for June, 2009

From time to time as Smallbizlady, I conduct interviews with small business experts that could benefit my audience.  This is excepts from my #smallbizchat interview with Karen Greenstreet, a top expert in forming and running mastermind groups.

An Interview with Karyn Greenstreet, the President of Passion For Business and The Success Alliance.  Karyn is also the owner of The Success Alliance – mastermind groups for the self-employed and, The Self Employment Blog, an ongoing resource for the self employed small business owner.  An internationally-known speaker and author, Karyn is a self-employment expert who has taught business and personal development topics to over 250,000 people worldwide.  She is extraordinarily passionate about helping self-employed people to create the life and business they want.

Q: What is a mastermind group?

Greenstreet: A mastermind group consists of 4-8 people, usually your peers and colleagues.  The purpose of a mastermind group is to brainstorm, problem-solve and to find creative solutions.  A major benefit of mastermind groups is the emotional support, keeping your attitude positive.  Some mastermind groups have an educational component where you learn new ideas and techniques.  Mastermind groups can also help you make decisions, and discover where you may be sabotaging your success.

Q: Why should biz owners belong to (or start) a mastermind group?

Greenstreet: I would not be as successful as I am today without the help and support of my mastermind group.  It’s like having a sounding board, a research assistant, and a positive attitude charger, combined.  Some people feel that business ownership is lonely, even if you have a staff to help you.  You can’t always share everything you are thinking and feeling with your staff, family and friends.  A mastermind group is a safe place to bring your challenges, concerns, decisions, ideas, and also to get honest feedback.

Q: What are the steps to putting together a mastermind group?

Greenstreet: First you have to decide what type of group you would like to have.  Do you want a have members from a certain industry (like Real Estate Agents)?

Q: Do people pay to belong to a mastermind group, or is it free?

Greenstreet: Some mastermind groups are free. For the paid ones, fees range from $100 a year to $14,000 a year.  It depends on who is the mastermind Group Facilitator, and what you’re getting from the group.  Many groups fail because there is no real leader; having a strong Group Facilitator will help your group.

Q: What is the structure of a mastermind meeting?

Greenstreet: There is no “official” structure to mastermind meetings.  In the 15 years that I’ve been running groups, I’ve tinkered with a lot of structures.  The one that works best for me is to start by sharing Success Stories.  Then each person gets a certain amount of time to bring forth a problem or decision they’d like to work on.  We end each meeting with goal setting and action items.  Some groups like to include guest speakers, or other activities, depending on timing and what the group wants.

Q: How do you figure out who should be in your mastermind group?

Greenstreet: This is crucial to the success of a mastermind group. You don’t want negative people in your group. You want people who are serious about success (as they define it) and are very committed to participating fully.  You want to make sure the people in your group have a similar level of experience so that the group gels.  It helps to put together an interview questionnaire, so that you can find out more about people in advance.

Q: Where and how often do people hold mastermind group meetings?

Greenstreet: Some groups meet weekly, some groups meet quarterly. Others meet via teleconference, some meet in local libraries, some meet at retreat centers or hotels.

Q: If you want to join an existing mastermind group, where can you find one?

Greenstreet: The easiest way is to Google “mastermind group” or “find a mastermind group” Sometimes people post mastermind groups on www.meetup.com Also check with your professional association to see if they sponsor mastermind groups.

Q: How to you handle a mastermind member who is standing out in a negative way?

Greenstreet: While misbehavior is rare, it does happen. I suggest coming up with Group Guidelines that lay out the rules.  It’s the job of the Group Facilitator to handle disruptive or non-committed members.  I would start by taking them aside privately and talk about what you are observing in their behavior.  Be prepared, however, that you may have to “fire” them from the mastermind group.

Q: How long should it take for a mastermind group to gel?

Greenstreet: It depends on how often they meet. Groups typically start to gel after the 2nd or 3rd meeting.

If you’re ready to start or grow your small business visit www.succeedasyourownboss.com and subscribe to Melinda Emerson’s blog.

1. Track Expenses Using a Budget.  

Budgets are about planning and tracking spending -you need financial information to make business decisions.  Track business expenses by month or by quarter.  Ideally, you should have a twelve month budget, but at the very least, make a three-month budget.

2. Eliminate Unnecessary Expenses.

Club memberships or services with monthly fees can add up over a twelve month period.  Evaluate whether you actually use the private dinning room, the postage meter, the online credit alert service, or your merchant services account.  Sometimes a private memberships club will allow you to park your membership for a reduced fee.

3. Relocate to Cheaper Office Space.

Overhead is one of the largest monthly fixed expenses for a small business.  If you have a long term lease, start first with trying to renegotiate with your existing landlord.  If that doesn’t work, look for other space or consider retreating back into your home.  Contact the county where you are located to seek out HUB Zone space or see if they offer any tax abatement for locating in a certain area.

4. Lower Interest Rates on Loan Payments. 

Work with your bank to arrange for automatic debit payments.  Your bank will lower your interest rate if you agree to automatic debits.

5. Investigate if You Are Eligible For a Reduced Fees For Shipping.

I recently learned that my membership in the National Association of Women Business Owners (NAWBO) made me eligible for discounts for shipping and with rental car companies.  Check member benefits with your local chamber of commerce and any other small business organization where you’re a member.

6. Lease or Buy Used Equipment.

Unfortunately, there are many businesses large and small going out of business theses days. There are plenty of opportunities to pick up gently used office furniture and equipment.  You might also be able to pick additional office supplies.  Try second hand furniture stores, too.

7. Consider Bartering Services.

You never know who might need your services.  Start with business contacts, but do not overlook your personal day care provider, law professional, hair stylist or mechanic.  You can also join barter network organizations.  The key to bartering successfully is good verbal or written communication between the two parties. Whatever you agree to, be sure to communicate it in writing.

8. Comparison Shop for Everything.

Just as large companies require three bids to make a purchase, so should your business.  Search the internet for deals, but beware of shipping fees.  Sometimes the cost with shipping is not a better deal.  Use the internet price to haggle with your local vendor for a better price for services, such as free delivery and installation.

If you make these simple changes I guarantee that you will begin to see more money in your bank.   If this blog post was helpful, please subscribe to this blog’s RSS feed to keep up with the lastest information from succeedasyourownboss.com

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Melinda Emerson is a Veteran Entrepreneur, Small Business Expert and Social Media Coach who hosts #smallbizchat on Twitter.  #Smallbizchat is the trusted Twitter resource to discuss everything entrepreneurs need to know about launching and running a profitable small business.  Melinda’s first book, Be Your Own Boss! How to Quit Your Job and Start Your Own Business 12 Months or Less! is scheduled to be released by Adams Media in early 2010.