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Archive | August, 2009

How to Become a Family First Entrepreneur

by Melinda Emerson on August 27, 2009 in Before You Start, My Recommendations, SmallBizChat

Each week as SmallBizLady, I conduct interviews with small business experts that could benefit my audience. This is excerpted from my #smallbizchat interview on Twitter with @MarcWarnke. He’s the author of ONO, Options Not Obligations Family First Enterpreneur. Marc has had some incredible life experiences as a result of his entrepreneurial successes. He was able to semi-retire for three years as his first son grew, but he is now back at it, with his first book. Marc decided he wanted to teach others about entrepreneurism, and ONO is the result of that decision. For more info www.familyfirstentrepreneur.com

Smallbizlady: What is ONO about?

Marc Warnke: ONO is the acronym for Options Not Obligations. It challenges readers to enrich their personal lives by rethinking their financial lives. ONO teaches a wealth creation lifestyle that focuses on making a difference first and creating profit second.

Smallbizlady: Why did you write ONO?

Marc Warnke: Sharing my knowledge and teaching the concept of family first entrepreneurism is part of my self-defined higher purpose in life. I wanted everyone to have the opportunity I have of being able to spend less time in the pursuit of wealth and more time with the people they love.

Smallbizlady: You call yourself a family first entrepreneur. What does that mean?

Marc Warnke: A Family First Entrepreneur is simply someone with an entrepreneurial mindset who keeps his or her family first. Family First Entrepreneurs make business choices based on the potential impact they will have on their families first, and on business profitability second.

Smallbizlady: What is the first step to creating options, not obligations?

Marc Warnke: The first step is envisioning what you would want to be doing with your life if money had no bearing on your decisions. That is your higher purpose. Write your own eulogy. What would you want said about you at your funeral? (Hint: there would be no mention of your net worth) Create a financial plan through entrepreneurism that will allow you to accomplish your higher purpose. Begin with the end in mind.

Smallbizlady: Talk about a few other main points in your book.

Marc Warnke: ONO teaches readers how to preserve and create their number one asset, Time. Kids spell love, T-I-M-E. We only have 936 weeks with our children in the home. Don’t sacrifice your time in pursuit of wealth. You don’t have to have a ton of money to have options. It breaks down to the simple principle of saving and investing.

Smallbizlady: Where should you start if you are interested in entrepreneurism?

Marc Warnke: Find something that you enjoy doing and find a way to make money at it. Good transitions start with good decisions based on an intended outcome. Evaluate your goals with the “Ready, Aim, Fire!” decision making process that I talk about extensively in my book. Don’t be afraid to ask for guidance. Find mentors, ask questions, never stop learning. Don’t reinvent the wheel. Find a system that is working and imitate it. Like I say in ONO, “Imitation, Not Innovation.”

Smallbizlady: Is it harder to become an entrepreneur in this struggling economy?

Marc Warnke: Entrepreneurism is actually growing as a whole across America. People are seeing the need to take their financial future into their own hands. When people are struggling, their instinctual will to survive kicks in. For many, entrepreneurism has become the solution to their survival.

Smallbizlady: How do I keep family first when I am crazy busy?

Marc Warnke: It takes work. Start by keeping certain parts of every day and week sacred with your family. I eat 3 meals a day with my wife and kids. I also shut off from my business, no matter what, from 5 to the kids’ bedtime. Weekends are family time as well. Time with your family will not only show the love that every child needs to see, it will also rejuvenate you as well.

Smallbizlady: You talk a lot about spirituality. Why do you feel that it is important in business?

Marc Warnke: A misunderstanding of what one is in control of leads to stagnation because it locks you into shame of the past or fear of the future. Clean and clear spirituality in your business life lends serenity to your family life. Spiritually in business allows for a clear sense that the only two things you can control are your choices and behaviors. Please be clear that I’m endorsing a spiritual life and have no agenda with your religious life.

Smallbizlady: Which is more important when building net worth, income or spending habits?

Marc Warnke: Spending. It’s not about how much you make, it’s about how much you save and invest. American families are threatened, not by an income problem, but by a spending problem. The key is to understand your needs vs wants and to have a powerful reason to stick to a spending strategy, like time with your family.

If you found this interview helpful, join us on Wednesdays 8-9pm ET follow @SmallBizChat on Twitter.

How to participate in #SmallBizChat: http://bit.ly/S797e

For more tips on starting or growing your small business subscribe to Melinda Emerson’s blog at www.succeedasyourownboss.com

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What Project Runway taught us about Niche Marketing

by Melinda Emerson on August 24, 2009 in Branding & Marketing

Project Runway started its 6th season recently with a bang. The producers got the brilliant idea to bring back 8 top designers from the past seasons to have a “where are they now” face off: “Project Runway: All Star Challenge.” It debuted last Thursday on Lifetime.

Daniel Vosovic

The two hour special featured many of our favorite contestants from past seasons of Project Runway including my favorite reality star Santino. It was a huge lead in to the season premiere. I do not have many TV shows that I try to watch religiously, but Project Runway is one. This hugely popular show, hosted and created by Super Model Heidi Klum, made a surprising switch of networks from Bravo to Lifetime, but that hardly could keep diehard fans away.

Now, let’s get to how all of this is connected to niche marketing. The person who took top honors on this special All Star Challenge was the Daniel Vosovic (Season 2 finalist.) I wasn’t a huge fan of four pieces that Daniel designed, except for his black and white evening look for the red carpet which I did think was fierce. The judges for this special challenge were fashion editor Nina Garcia, designer Michael Kors, Heidi Klum and guest judge, legendary designer Diane Von Furstenberg.

While all of the four finalists created amazing designs, clearly worthy of a fashion week solo showing, what the judges said about Daniel’s collection struck me as something that could help any small business owner. Michael Kors said that what he liked about Daniel’s collection was that each piece was designed for the same woman. Designer Daniel Vosovic could see the face of his customer. He knew who his client was and designed his mini collection with her specific point of view. Whereas the other designers showed more versatility, Daniel’s collection was for a specific niche client. Daniel’s client would never rock an evening gown on the red carpet so he did not make one. Diane Von Furstenberg judged his red carpet creation as “perfect.”

The other challenge contenders were Korto Momolu (Season 5 finalist), Chris March (Season 4 finalist), Sweet P (Season 4 contestant) were also in the final 4. Daniel won $100,000 and a trip for two to Paris and a fashion spread in Elle Magazine. His first collection debuts in February 2010.

In the face of competition of equal quality, niche marketing is an excellent way to stand out in a crowded marketplace or on the runway.

WANT TO USE THIS ARTICLE IN YOUR EZINE, E-NEWSLETTER OR WEB SITE? You may, as long as you include this complete blurb with it: Melinda Emerson “smallbizlady” 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.

For more tips on how to start or grow your small business subscribe to Melinda Emerson’s blog. www.succeedasyourownboss.com

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Healthcare Reform and Your Small Business

by Melinda Emerson on August 20, 2009 in Cash Flow & Finance, My Recommendations, SmallBizChat

Other than payroll, healthcare benefits represent the second or third largest cost center in any small business. Subsequently, too many small business owners often cannot afford to provide health insurance coverage for their employees. The current heath care debate presents an excellent opportunity to examine the pros and cons of the health care reform bill proposals.

Each week as Smallbizlady, I conduct interviews with small business experts on my weekly Twitter talk show #SmallBizChat. This interview is excerpted from my #SmallBizChat interview with Dawn Rivers Baker, one of the nation’s most prominent experts on microbusiness. Her activities on behalf of small businesses range from offering input on federal legislation to addressing audiences around the globe. She has followed the healthcare reform debate very closely.

Smallbizlady: What are the key features of the health care reform bill?

Dawn Rivers Baker: First, there’s more than one health care reform bill. There’s one in the House and at least two in the Senate. Common features include an individual mandate, tax credit for firms that offer coverage, “pay or play” provisions, and subsidies for poor folks. It also eliminates discrimination for pre-existing conditions, gender discrimination, and lifetime and yearly limits on coverage.

Smallbizlady: Is the healthcare reform bill good for small businesses?

Dawn Rivers Baker: It’s a mixed bag, some good, some bad but much better than what we have now. There is a $1,000 tax credit per employee ($2,000 for family coverage) each year, more if an employer contributes more than 60% of the health insurance premium.

Smallbizlady: Are their any down sides to the healthcare reform bill for small business owners?

Dawn Rivers Baker: There is a “Pay or Play” employer mandate that applies to firms with 10 or more employees. There’s also still no allowable premium deduction as a business expense. This means that self-employed Schedule C filers will still pay FICA taxes on health insurance premiums.

Smallbizlady: How will the health care reform bill affect small businesses who offer insurance benefits?

Dawn Rivers Baker: The only impact will be that they will have more choices of plans and more tax credits for coverage.

Smallbizlady: I have seen some statistics that say small business owners on average pay 18% higher insurance premiums than large businesses. A few years ago my firm’s healthcare premium was raised 62% with a month’s notice. Isn’t the health care insurance exchange designed to fix that?

Dawn Rivers Baker: The Health Care Insurance Exchange (HIE) can only be used by individuals (who don’t have acceptable coverage already) and (in two years) by employers with less than 20 employees. So, the plans offered in the HIE will give individuals and small businesses the group-negotiating power of a larger employer. This will hopefully eliminate things like what you experienced.

Smallbizlady: Will small business owners who do not offer health insurance before forced to do so?

Dawn Rivers Baker: You can’t FORCE them to provide health insurance. There will be a “pay or play” provision: cover your workers or pay into this kitty to help pay for premium subsidies.

Smallbizlady: What about mental health benefits under the health care reform bills?

Dawn Rivers Baker: The House Bill, America’s Affordable Health Choices Act of 2009 H.R. 3200 requires covered services, including hospitalization, prescription drugs, mental health services, preventive services, maternity care, and children health care including dental, vision, and hearing services and equipment. It limits annual out-of-pocket expenses to $5,000 for an individual and $10,000 for a family.

Smallbizlady: How are solopreneurs and 1099 freelancers covered under the bill? I believe it says if you don’t have coverage, you will have a 2.5% tax on your adjusted gross income.

Dawn Rivers Baker: It is not clear. It depends on what happens with the public option and with the health insurance exchange.

Smallbizlady: Will I get to keep my health insurance coverage, if I like it?

Dawn Rivers Baker: If you can afford to pay for it, yes.

Smallbizlady: What if you are a business owner whose health insurance is covered by your spouse’s job, will you need to provide health insurance to employees?

Dawn Rivers Baker: Yes, if you have 10 or more employees. The “pay or play” employer mandate applies to firms with more than 10 employees.

Smallbizlady: What should a business owner do who supports health care reform?

Dawn Rivers Baker: They should contact their elected representatives to express support. Use Congress.org to look them up if you don’t know who they are.

If you found this interview helpful, join us on Wednesdays 8-9pm ET follow @SmallBizChat on Twitter.

How to participate in #SmallBizChat: http://bit.ly/S797e

For more tips on starting or growing your small business subscribe to Melinda Emerson’s blog at www.succeedasyourownboss.com

Additional resources:

“Reality Check FAQs,” WhiteHouse.gov, accessed August 11, 2009. http://www.whitehouse.gov/realitycheck/faq#i1

The List on Health Care (Insurance) Reform Bill Nowpublic.com August 7, 2009
http://www.nowpublic.com/health/list-health-care-insurance-reform-bill

“What exactly is in the Healthcare Reform Bill” Smallbiztrends.com, July 18, 2009 http://smallbiztrends.com/2009/07/what-exactly-is-in-that-healthcare-reform-bill.html

“Why We Need a Public Health-Care Plan,” Wall Street Journal, June 24, 2009. http://online.wsj.com/article/SB124580516633344953.html

“5 freedoms you’d lose in health care reform” Fortune June 24, 2009 http://money.cnn.com/2009/07/24/news/economy/health_care_reform_obama.fortune/

“Healthcare Reform Fit For Small Business,” BusinessWeek Small Business May 6, 2009 http://www.businessweek.com/smallbiz/running_small_business/archives/2009/05/health_reform_f.html

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What Can America’s 1st Mega Entrepreneur Teach us Today?

by Melinda Emerson on August 16, 2009 in Business Inspiration, My Recommendations

Benjamin Franklin

Benjamin Franklin only attended school for two years while growing up in Boston – but he was the most famous writer of his time and he made enough money to retire from his printing business at the age of 42.

Some might think he built his fortune from his famous inventions, including the lightning rod, bifocals, the odometer, and the Franklin stove, but Ben Franklin never patented any of his inventions. He believed that everyone should benefit from science. I guess you could say he was an eighteenth century open-source advocate. I learned this after reading the Walter Isaacson biography Benjamin Franklin, An American Life Simon and Shuster, 2003

Ben Franklin was, without a doubt, one of the most successful businessmen of his time, but he perhaps taught us the most by how practical and strategic he was in the way he did business.

1. Franklin was not educated, but he was a life-long learner. He spearheaded the creation of the first lending library in the county as a means of providing himself access to literature and philosophy that would allow him later in his life to be able to converse with the elder statesmen and international political leaders of his time. Not to mention, being a voracious reader also contributed to him becoming an exceptional writer.

2. Franklin was a consummate networker. Franklin had a great personality. He was clever, charming, astute about human nature and eager to succeed. He became an expert salesman. He liked to mix his civic and social life to further his business endeavors. His printing business was initially financed by two businessmen who were impressed by him. He organized weekly meetings of up and coming businessmen called Junto. This early American version of a mastermind group was joined by enterprising tradesmen in Philadelphia’s middle class. They shared ideas, did deals and learned from each other.

3. Franklin sought to improve himself and his community. He and his colleagues in Junto established a university, hospital, lending library, militia, firefighting brigade, learned society, and the first insurance company.

4. Franklin took only very calculated risks. Project printing was how he paid the bills. Franklin knew he could make more money as a publisher. Despite bitter turf wars with fellow printers, he created joint ventures with his rivals to spread the financial risk on large jobs. Franklin published newspapers and almanacs, but when his opportunity came for large government print jobs he used his joint ventures to help to cover a huge upfront cash outlay. This resulted in several profitable deals. Sometimes things still went wrong, but he never lost his shirt.

5. Franklin carefully managed his personal PR. Franklin knew how useful a good reputation was in business. Franklin not only was hard-working and down-to-earth, but made sure that everyone knew it. By managing his reputation, he gained credibility which earned him customers. He also knew how to communicate his vision to others, often using his own press as a vehicle for his strategic public relations work. Biographer Walter Isaacson called Ben Franklin “the country’s first public relations expert.”

6. Franklin was a franchiser of sorts. Once his apprentices became journeyman printers, they were free to set up their own businesses, if they could find the seed capital. Rather than risk one of his journeymen becoming a local competitor, Franklin came up with a franchising idea. He set them up in business as his printing partner in other colonial cities where he did not have any operations. They paid him back with one-third of their annual profits for the next six years – this move gave Franklin significant market share for his publications. The economies of scale enabled him to crush his competition with more competitive pricing.

7. Franklin was an excellent writer. Franklin’s signature publications the Pennsylvania Gazette and Poor Richard’s Almanacs were the most successful publications in the country, in large part due to Franklin’s witty conversational writing style. Franklin often wrote anonymous letters and pamphlets which he published in his own publications to try to sway public opinion.

8. Franklin paid attention to his market. Franklin saw the world around him in terms of how it could be improved upon. When he saw opportunities in his market, he came up with creative ways to meet customer demands. For example, Franklin realized that nearly a third of the settlers in Pennsylvania were German-speakers, and promptly launched the Philadelphische Zeitung – the first newspaper printed in German in the colonies.

Many of Franklin ideals and methods of doing business give us a great roadmap for success today. His never ending search for a better world is best summed up as “doing well by doing good,” his ultimate secret to his success.

WANT TO USE THIS ARTICLE IN YOUR EZINE, E-NEWSLETTER OR WEB SITE? You may, as long as you include this complete blurb with it:

Melinda Emerson “smallbizlady” 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.

For more tips on how to start or grow your small business subscribe to Melinda Emerson’s blog. www.succeedasyourownboss.com

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Managing a Crisis In Your Small Business

by Melinda Emerson on August 13, 2009 in Branding & Marketing, SmallBizChat

Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wed on Twitter from 8-9pm ET. This is excerpted from my recent interview with Jane Jordan-Meier @aussiechic on Twitter. Jane is a famous import from Australia. She has worked for many years in and around the media and consulted on crisis communication in the sports industry and with corporate clients. She’s run two million dollar businesses, including her own PR firm. She’s also working on an upcoming book on crisis media management.

SmallBizLady: What are the warning signs that you are in the midst of a business crisis?

Jane Jordan-Meier: 1) Sudden unexpected, unwanted media attention; sudden unexpected negative mentions on twitter, negative video on You Tube. 2) If a relatively flat-performing employee is enjoying unprecedented success. They could be doing something illegal or against company policy. 3) A customer who used to complain a lot has suddenly stopped voicing their opinion so strongly. They are probably on-line being nasty. 4) Unfortunately many business crises go unnoticed, are deliberately avoided or pushed under the proverbial carpet – until something gets the nation and the business’s attention think United Airlines, smashed guitars and a You Tube hit

SmallBizLady: Are there any special skills needed for effective crisis communication?

Jane Jordan-Meier: You must be very calm under the intense pressure. It’s best to show empathy – put yourself in your customers/employees/victims’ shoes. Be authentic, genuine & transparent as opposed to evasive, defensive & negative. Be humble & admit when you’re wrong. Be tactical in your responses, never appear reactive. To speak persuasively, speak in everyday language to command a high level of respect.

SmallBizLady: What is a crisis communication plan and why does a small business need one?

Jane Jordan-Meier: When the unexpected happens you need a plan for what to say, when to say it, how to say it, where to say it, why and who will communicate the critical messages. A crisis communication plan is designed to minimize damage to the business brand and basically shapes how the story is told. Knowing what to say and having a plan for what to say and DO is far better than having to “make it up” in the heat of the moment. Most businesses that go thru a crisis loose significant business. 40% never re-open, 25% fail within 2 years.

SmallBizLady: What needs to be in a crisis communication plan?

Jane Jordan-Meier: The #1 thing to have is an up to date contact list! It sounds simple but so many businesses fail to keep theirs up to date. The list should include the business owners, an identified spokesperson, key vendors, external advisers (e.g. legal, CPA, PR) key clients (top 5 list), one-page fact sheet on the company, the products (and logo) in camera-ready condition & available on a CD/DVD in generally-accepted word processor format. You also need a pre-written frequently asked questions list that you have generated through your crisis scenario planning.

SmallBizLady: How long does it take to put a plan together? How do you get started?

Jane Jordan-Meier: Start by imagining what could go wrong – the more bizarre the better. Ask tough questions and involve your staff. How would it look if our problems were on the front page of the Wall Street Journal? Would we survive that test? Practice scenario playing – get a facilitator or someone independent from outside the business to help you brainstorm. You could do a plan in five minutes on the back of an envelope over a lunch if you ask the right questions! A good basic plan will take about 20-30 hrs. Spend $1 on preparedness and save $9 on response.

SmallBizLady: What do you say in a crisis? What are the rules?

Jane Jordan-Meier: There are 3 key questions that need to be answered in every crisis – what happened? How did this happen? What are you going to do to ensure it never happens again? There are also some critical no-no’s in a crisis. Release a statement within the first hour of something happens. Telling angry or frightened people to calm down has the reverse effect. Acknowledge the public’s concern and apologize for mistakes.

SmallBizLady: Should you use the same tactics in managing a crisis online as you would with a typical business crisis?

Jane Jordan-Meier: One of the big problems today is that a lot of people are treating every negative comment on-line as a crisis, when it’s not! It’s a negative issue that needs to be managed. The big difference today is speed – your reputation could be tarnished in hours if not seconds, so if it’s a REAL threat to your business ENGAGE & engage quickly. Also it depends if the issue goes viral or is isolated to a couple of negative tweets. The speed may have changed but the principles have not – act fast, tell it all and do it so with compassion, authenticity & transparency.

SmallBizLady: Can you list three steps to protect your reputation online?

Jane Jordan-Meier: Most important asset to any business, small or large, is its employees so keep them engaged and informed. Unhappy employees can turn rogue. Be authentic, be engaged, and be prepared to share insights and tips. Be a good corporate citizen. Never spam. Never attack, put dollars in the trust bank. Set up listening posts to monitor your brand – check twitter 3 times a day and key blogs daily.

SmallBizLady: How do you manage the media in a crisis?

Jane Jordan-Meier: Act fast; get a statement out within the first hour that says what happened & what steps you are taking to fix the problem. Respect and meet media deadlines, and be available. If not they will turn to someone else to fill the vacuum & that person is unlikely to have your best interests at heart. Have a strong, simple, consistent message & run it through the cynic filter before you speak or do anything. Give some background to the situation to put the incident into context, BUT only after you have expressed empathy & talked about the actions you have taken. Never repeat the negative of the question – state what you are doing in positive, use active language. Hire a PR person to assist with media training.

SmallBizLady: Who should be a spokesperson in a crisis?

Jane Jordan-Meier: It depends on the type and scale of the crisis, and whether your business has a significant profile in your industry or town. Go with a spokesperson that is well-spoken. If the CEO does badly, where do you go from there? The spokesperson must have credibility, must be believable, must look and sound trustworthy to be acceptable to your key audiences. The spokesperson must be able to handle the anxiety of standing before reporters and cameras. If you run a franchise, then you as the franchise owner may have more credibility in the local area then the President of the franchise corporation.

If you found this interview helpful, join us on Wednesdays 8-9pm ET follow @SmallBizChat on Twitter.

How to participate in #SmallBizChat: http://bit.ly/S797e

For more tips on starting or growing your small business subscribe to Melinda Emerson’s blog at www.succeedasyourownboss.com

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How to Run a Successful Home-based Business

by Melinda Emerson on August 10, 2009 in Before You Start, Branding & Marketing, Solopreneurs

Many folks think that building their own home-based business is the opportunity of a lifetime. We fall in love with the idea of being our own boss, setting our own schedule, even the idea of no longer having to wear a corporate uniform every day is a huge draw for some would-be entrepreneurs.

Every day, I see ads on the internet and twitter, “How to make $1000 a day from home.” or “I made $671 today on Twitter, let me show you how.” There are a lot of opportunities out there but none of them will make you a fortune overnight. In fact, if someone tells you that, they are lying to you and just trying to get your enrollment fee in their program.

When I was a kid my father told me, “There are no free lunches. You get what you pay for.” In terms of business, his advice is still true. There are NO legit get-rich-quick schemes. Do not be fooled. Home-based businesses are enterprises based on direct transactions, not just entities where checks start magically appearing in the mail.

Most of the self-made millionaires I know, said it took 5 to 10 years for them to become an overnight success. There are all kinds of multilevel marketing programs (MLM) out there, but beware of the business model that has more emphasis on signing other people up to sell, as opposed to selling the actual product.

Real effort and thought is required to build a successful business, and much of it is required before you ever open the business.

Develop a Lifeplan Have you really thought about what your life is going to be like as an entrepreneur. Will you work 7 days per week, 12-hour days? Do you have the energy to work like that? Working all alone in a back bedroom or in your basement behind a lonely PC could be a big adjustment. Isolation is the enemy of entrepreneurship. Working at home can also present a lot of distractions such TV watching, noisy neighbors, personal calls phone, napping, chores etc. How will you combat your environment?

Build Your Network People do business with people they like and know. Are you now more internally at your company than externally? Do you have a complete Linkedin profile? How many times per month do you attend or plan on attending networking functions? Everywhere you go, you need to talk up your new business. Try the hair salon, trade association, supermarket, your child’s daycare – even at your current job. Build the contacts you will need to build your business. Always be ready to promote your business.

Know Your Industry Have you done extensive business research on the market and industry trends? Even if you are going to sell May Kay, you need to know how many other Mary Kay ladies are in your area or operate in your church. Is the market saturated? Is there already a lady with a pink Cadillac in your neighborhood who’s cornered the market?
Develop a Marketing Strategy How will you do the bulk of your advertising and marketing? Will you strictly use the internet? Will you blog and use article marketing to attract clients? Will you outsource your social media? Will you need a social media coach or virtual assistant to help manage your internet footprint? Whatever your strategy, you will have limited time and resources to make a big splash, so be willing to do what your competitors are not willing to do to get noticed in the marketplace..

Develop Strategic Alliances Approaching a complementary business is a great strategy. You can help each other grow in business, trade tips and resources. If you are a massage therapist, partnering with a chiropractor could be a good move and a great referral business. See what kind of referral agreement you can work out. You never know what kind of deal people might be willing to make with your business. Now, not every business owner will be eager to partner with you, but networks are built one relationship at a time. You will never know until you ask. They might not be interested now, but maybe later…

Having a home-based business is like opening any other business except that your business happens to be headquartered in your home. If you plan well, do your market research, build your network before you start and while you are running your business, develop a comprehensive marketing strategy, and build strategic alliances your business will be far more likely to be successful.

WANT TO USE THIS ARTICLE IN YOUR EZINE, E-NEWSLETTER OR WEB SITE? You may, as long as you include this complete blurb with it:

Melinda Emerson “smallbizlady” 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.

For more tips on how to start or grow your small business subscribe to Melinda Emerson’s blog.www.succeedasyourownboss.com

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How to Start a Business In This Economy

by Melinda Emerson on August 6, 2009 in How to Start, SmallBizChat, Social Media

From time to time as SmallBizLady, I conduct interviews with experts that could benefit my audience. This is excerpts from my #SmallBizChat interview on Twitter with Mike Michalowicz aka Toilet Paper Entrepreneur @TPEntrepreneur. Mike Michalowicz has a driving passion for entrepreneurialism. Michalowicz wrote The Toilet Paper Entrepreneur with the sole purpose of giving first time entrepreneurs the information they need to grow their concepts into industry leaders. Michalowicz has successfully launched three multimillion-dollar companies. His most recent venture, Obsidian Launch LLC, partners exclusively with first-time entrepreneurs, to launch their ideas into niche industry leaders.

Smallbizlady: Why is this a great time to start a business?

Mike Michalowicz: When the economy slows down, two things happen. Established businesses that are weak close up, and new businesses that were going to start get put on hold. In this economy there is way less competition. If you start now it will be hard (just like it is in a great economy), but you will have the advantage as the economy recovers since you will have momentum going in when others are just starting.

Smallbizlady: What is the first thing someone who wants to start a business needs to consider?

Mike Michalowicz: You MUST consider what you love to do. Your passion. Since if you do your passion, you will likely stick with it during the lean years, and you will naturally excel at it because it is your passion.

Smallbizlady: Where is the funding coming from to start a business right now?

Mike Michalowicz: Funding is coming out of the entrepreneurs own pocket. Even hedge funds are starting to push more and more entrepreneurs to practically go on welfare before the fund adds any money. The great irony is that if you use only your own money, you typically will do better since it forces better decision making and more out of the box thinking.

Smallbizlady: Are there certain industries that make more sense to pursue as a business in this economy?

Mike Michalowicz: Self help always booms in a down economy. Any business that helps others become more self-reliant is a good thing. Another great sector is “micro-luxuries”… these replace the big ticket luxuries like vacations and the new car. A perfect example of a booming micro luxury is alcohol. Instead of going on vacation, people take many “mini-vacations” with a bottle of wine!

Smallbizlady: Do you need a business plan to start a business?

Mike Michalowicz: No. In fact they often are big dust collectors. To start and BUILD a business you need a dynamic planning strategy. Something that adjusts with all the craziness that goes on. The best dynamic planning strategy is the 3-sheet method (which I detail in The Toilet Paper Entrepreneur fully).

Smallbizlady: How do you develop a Unique Selling Position or secret sauce as I like to say?

Mike Michalowicz: The fastest way is by asking “what sucks about my industry?” When you discover the stuff that sucks, your job is to make it “un-suck”. That becomes a very unique selling position, and customers will flock to you.

Smallbizlady: Is it best to start an internet business right now?

Mike Michalowicz: I would argue every business is an internet business. Since we all have a presence on line, and if you don’t you are being left behind. So, hell yes, it is good to have an internet business right now… but it must compliment your passion.

Smallbizlady: Where should you look for your first clients?

Mike Michalowicz: That is a hard one, since every business is different. But the general answer is to go where they already are. For example if you sell to baseball fans, don’t go to the local chamber of commerce… go to the ball park.

Smallbizlady: Can you give three low-cost marketing suggestions for start-up businesses?

Mike Michalowicz: Blogging is amazingly powerful and effective marketing. The key is sticking with it. Another is speaking engagements. If you do it well, you get paid to speak to a group and at the end they are will want to buy from you, too. Collaboration. Find complimentary vendors and make partnering deals. They may have the audience and you have the goods. Can be a win all around.

Smallbizlady: Can you list a few resources that a first time entrepreneur should read before starting a business?

Mike Michalowicz: Definitely read The Toilet Paper Entrepreneur, and I am not just saying that. Also read E-myth to get you in the right mindset to scale the business and read Purple Cow to get to the marketing mindset.

Smallbizlady: How important is social media to a start-up business?

Mike Michalowicz: It is a powerful tool, but it isn’t critical. What is critical is consistently getting the word out. If you only did it through face to face networking, that is in fact ok…. you just need to do a lot of it and build strong relationships. If you just do social networking, make no mistake, you need to do just as much, if not MORE than face to face networking, but you can reach out to a lot more people a lot faster.

Smallbizlady: Can you give suggestions for maintaining work/life balance as an entrepreneur?

Mike Michalowicz: There is no such thing. Being an entrepreneur is your life. And it is impossible to separate the two. So instead of trying to bring balance, I encourage you to blend them. I have my family come to my office, my children will work here at times and my wife too. When it is slow at work, I will head home right away…. Because when work needs me I will head there right away!

If you found this interview helpful, join me on Wednesdays 8-9pm ET for @SmallBizChat on Twitter. Here’s the link for how to participate: http://succeedasyourownboss.com/07/2009/how-to-participate-in-smallbizchat/

For more tips on starting or growing your small business subscribe to Melinda Emerson’s blog at http://www.succeedasyourownboss.com

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10 Books That You Should Have in Your Small Business Library

by Melinda Emerson on August 3, 2009 in 10 Things Lists, Before You Start, My Recommendations

SmallBizLady’s Recommendations:

How to Win Friends and Influence People by Dale Carnegie

First published in 1936, this is one of the best self-help books ever published with 15 million copies in print. This book touches on the fundamental techniques of handling people, six ways to make people like you, and twelve ways to win people to your way of thinking. Remember, people do business with people they like and people they know.

The Successful Business Plan Secrets & Strategies 4^th Edition by Rhonda Abrams

This book has the detail needed to write a serious business plan. The book features dozens of worksheets covering every phase of developing a business plan. Some of the financial worksheets are not very easy to understand, but it is still one of the most thorough business plan books I have ever read.

The 25 Most Common Sales Mistakes and How to Avoid Them by Stephen Schiffman

Schiffman is the man. This is one of my favorite small business books. This book is not only entertaining, but it also gets down to the fundamentals of being a killer salesperson, which should be every entrepreneur’s goal. This book is practical, concise, and straight to the point.

Guerilla Marketing Small Businesses by Jay Conrad Levinson

Guerrilla Marketing will teach you how important it is to make it easy for people to do business with you. This book will help you use your imagination rather than your bank account to tell the world you are open for business. If you are just starting in business or are unfamiliar with sales and marketing this is the book for you.

Finance for Non-Finance Managers and Small Business Owners by Lawrence W. Tuller

The book takes the fear out of small business finance. It breaks down essential finance concepts including cash management, analyzing financial statements, forecasting, banks and bank terminology, operating budgets, and financing options.

Entrepreneurial Finance: Finance and Business Strategies for the Serious Entrepreneur by Steven Rogers

Professor Steven Rogers was highlighted by Fortune magazine as one of the Top 10 Minds in Small Business. Entrepreneurial Finance provides a straightforward, practical overview of the business and financial knowledge required to become a successful entrepreneur. This book also alerts entrepreneurs about the kind of financial problems they may face and recommends action to prevent them.

This Is How We Do It: A Practical Guide for the Working Mother by Carol Evans

If you are a single mother or woman with a family and starting a business, this book will help you manage your three full-time jobs. (without medication, I might add) This book offers innovative solutions from working moms on how to successfully balance work and family. Written by the founder of Working Mother magazine, this is an excellent guide to managing it all without the guilt.

The Ultimate Guide to Electronic Marketing for Small Businesses by Tom Antion

Tom Antion is a master at selling on the web. This book is about how to create a website that drives traffic and makes money. A perfect resource for the e-marketing novice, this book is about low cost/high return web techniques that really work.

The Seven Minute Difference by Allyson Lewis

What kind of small business coach would I be without a productivity book on the list? This book gives some really good advice on ways of improving your business habits as well as your personal life. This book especially gives you procrastinators out there things you can do now to be more effective.

The New Rules of Marketing & PR by David Meerman Scott

This book teaches readers how to launch a marketing campaign strategically using social media tools. It is an invaluable guide for anyone who wants to make a name for themselves, their ideas, and their organizations.

If you are one of these people who buy business books and never get around to reading them, consider subscribing to a service by Soundview Executive Book Summaries, www. summary.com. This company provides concise summaries of recently published business books.

If you have time to listen but not to read, think about purchasing audio books. Each audio book can be downloaded to your iPod or MP3 player — if you have a long drive time, this is a perfect way to keep up with the latest small business trends and techniques.

For more tips on starting or growing your small business subscribe to Melinda Emerson’s blog at http://www.succeedasyourownboss.com

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