Archive | January, 2010

Good Start President Obama, But More Change Needs To Come

State of the UnionMy first guest post for Smallbiztrends went live this week.  “Will 2010 Be the Year of Start-Up America?” generated much interest, prompting many people to ask for my opinion about President Obama’s State of the Union Address — and what impact it will have on the nation’s small businesses.

My ears perked up when I heard our President say, “Now the true engine of job creation in the country will always be America’s businesses.  But government can create the conditions necessary for businesses to expand and hire more workers. We should start where most new jobs do—in small businesses, companies that begin when an entrepreneur takes a chance on a dream or a worker decides its time she became her own boss.”

There were five key points made by President Obama that are noteworthy and make me somewhat optimistic that this administration finally understands that supporting America’s small businesses will save the nation’s economy.  I have listed the initiatives in order of what I think will be most helpful.

  • Tax credits for one million small businesses that hire new workers and providing wage increases.

Many businesses could be helped by this. The key will be how soon it would take effect.

  • Tax incentives for all businesses to invest in new plants and equipment.

I would suggest that this incentive be connected to building energy efficient plants.

  • National Export Initiative to help farmers and small businesses increase their exports.

Small businesses need to know how to go global. I need more details on this, but I am excited to think that this program could make a real difference.

  • 30 Billion dollars for community banks from the repaid TARP funds.

This is important because previously alternative lenders (CDFIs & CDCs) had about 1.6 Billion dollars to lend.  The challenge that exists with this is two-fold:

1)  Many existing business are no longer credit worthy after nearly two years of struggling there.

2)  No lender wants to fund start-up businesses with no track record or collateral.  So who will qualify to borrow these funds?

  • Eliminate the capital gains taxes on small business investment.

Given that 97% of all small businesses in the US generate less than one million in revenue, the capital gains tax relief is really going to help an extremely small number of entrepreneurs.

At the end of his speech President Obama said, “I know there are many Americans who aren’t sure if they still believe we can change or that I can deliver it. We have come through a difficult decade. But a new year has come. A new decade stretches before us. We don’t quit. I don’t quit.”

We’ll Mr. President you had better not quit!  The nation’s 26 million small businesses are counting on you to be change we can believe in.

Having this conversation about a small business economy is so important right now.  Please leave me a comment to share your thoughts on this subject.

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 resource on Twitter to discuss everything entrepreneurs need to know about launching and running a profitable small business.  Melinda’s first book, Become Your Own Boss in 12 months; A Month-By-Month Guide to a Business That Works will be released by Adams Media in March 2010.

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How to Tame Your Email

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 @MarshaEgan who is a Certified Life and Executive Coach with the International Coach Federation and the author of the book, the Inbox Detox. As one of Pennsylvania’s Best 50 Women in Business, her passion is helping others achieve their career, professional, and personal goals. She is a professional speaker on business success topics such as improving productivity through better organization and running more successful meetings through time management. You can find more about her here: Http://MarshaEgan.com

Smallbizlady: What made you interested in email productivity and email addiction?

Marsha Egan: One of my areas of specialty has been time management and life planning. At one point, five of my coaching clients were all struggling with their inabilities to get out from under their e-mail. To help them conquer that issue, and to add value as a coach, I created a one-hour teleseminar on the subject of the e-mail productivity, and got an overwhelming response. That’s when I first started to realize the pain around all of this. To date, we have conducted 40 of these teleseminars.

Smallbizlady: When did you realize that a 12-step program was necessary and was it a conscious choice to have the same number of steps as similar addiction programs?

Marsha Egan: I developed a formula approach to helping people become more productive with their e-mail, and broke it into a number of steps that build upon each other. We consciously, but very loosely used the 12-step analogy, and called it an e-ddiction, almost as a play on words on both 12-step approaches and addictions. The e-ddiction program began as a tongue and cheek idea — a memorable way for people to become more productive–easy steps akin to a very recognizable program that people could refer to and remember to keep their email use in check.

Smallbizlady: What is the cost of email misuse?

Marsha Egan: It is absolutely mind blowing. Basex, a research firm, has estimated the loss of productivity throughout the world at over $900 billion.  The average worker spends 28% of his or her day with interruptions or recovering from interruptions. By managing your email, the average person can reclaim at least an hour of productivity a day. For a 20 person office, that is 100 hours of productivity a week. The biggest culprit is people allowing themselves to be continually interrupted by the ding of a newly received email. With the average recovery time for any interruption being 4 minutes, if you’re interrupted only 15 times in a day, you’ll spend 60 minutes recovering from the interruption. Most workers receive between 80 and 150 emails a day. You do the math.

Smallbizlady: What needs to be done about email from a business perspective?

Marsha Egan: First, businesses need to “get” the fact that managing e-mail productivity can be a competitive advantage.  Here’s a quick summary of major steps that can be taken…  The business unit needs to stop EVER sending urgent emails. If it is urgent, or needed in under 3 hours, call or visit. Don’t email. What this does is that it allows workers to shut down their inboxes and stop being interrupted. But if they have a boss who uses email urgently, they can’t turn it off, and must handle those continual costly interruptions. Second, check for email 5 times or less per day. Third, differentiate between handling email, and sorting it. If you go into your inbox with the intention of sorting, you’ll be able to manage it much better. And fourth, empty your inbox every time you go into it. It is not a holding tank or to do list, it delivers stuff you need to sort.

Smallbizlady: What can individuals do to better manage their email?

Marsha Egan: It is not just one thing. I realized quickly that there is a stepped approach to TAKING control of your email and inbox. That’s how we came up with the 12 Steps. It starts with on the person declaring that he or she wants to change their e-mail habits, and take ownership or a proactive approach to managing their e-mail. It is focused on helping people realize that they can take control, then gives them the actual steps to taking control. These steps include checking email when it fits YOUR schedule, not when you hear the “ding” on your computer, changing your view of the inbox from a holding tank to a mail delivery receptacle, then helping them file items to be worked in separate action folders that they can grab when they are planning their days. We’ve tried this approach with over 300 folks, and have heard great comments. The biggest challenge is for people to engrain the practices, and make them “good habits.” Our website is intended to be helpful to people wanting to improve their habits: http://EganEmailSolutions.com

Smallbizlady: So, once a person decides to take control of his or her e-mail, what is the next step?

Marsha Egan: The next step is to begin a new habit of checking e-mail in the longest intervals possible. We recommend no more than five times daily for the average business.  Tim Ferris, of the Four Hour Work week, recommends twice daily. What this does is it minimizes interruptions, and allows people to get other work done. This is a very big shift for people who, on average check their e-mail 70 plus times daily, or looking up any time a new e-mail is received. It also requires the person to turn off that dang ding and flash. We recommend first thing in the morning, midmorning, after lunch, midafternoon, and 15 to 20 minutes before you close out the workday.

Smallbizlady: Why is it important to get email under control?

Marsha Egan: The reason this is so important is because any type of interruption is very costly.  It takes the average person an average of four minutes to recover from any interruption.  We are not talking about handling the interruption, we are just talking about the time after the interruption occurs and is handled for you to get back in the work zone. In other words, if someone stops by your office to talk about your child’s birthday party, (and it takes only 30 seconds,) after the person leaves, it will take the average person an average of four minutes to get back to the letter he or she was writing, the report they were creating, or the web site they were designing. So if you do the math, if you are interrupted by only 15 e-mail messages pinging and flashing at you in a day, you’re interruption recovery time is 60 minutes, or an hour.  With people receiving an average of 80-150 e-mail messages daily, e-mail has become one of the worst interrupters of our lifetimes, and saps up to 10 hours of productivity per person per week.

Smallbizlady: Once we choose to check the e-mail only a few times daily, how do we handle all those e-mails?

Marsha Egan: You have to shift the way you view your inbox away from it being a disorganized to do list and holding tank for all the messages you have to viewing it more like a U. S. Postal Service mailbox that delivers mail.  I don’t know if many people who put mail back in the U. S. Postal Service mailbox, do you? Using this new approach, then, shift to a new habit of emptying the inbox every time you view it.  This is why viewing it only a few times a day is important.  By going into the each e-mail message briefly and determining its priority level — sort 10 rather than working — you will be able to triage your work rather than be distracted by it.  And, when you do this you start at the top and one by one go down the list, or start at the bottom and go one by one of the list, rather than hunting and choosing.  Don’t move the next message until it is out of your inbox.  It takes a big habit change for a lot of people.

Smallbizlady: Where do we move all these messages?

Marsha Egan: First, the delete button is your friend.  Delete.  Delete.  Delete.  Second, make a choice as to whether the e-mail is a task that you need to take action on, or a message you need to save, but requires no action. If it requires action, you will drag and drop it into an Action Folder.  You need only a few action folders, I suggest Action — a, action — b.  Action — a is for higher priority items, and action — b is for lower priority items.  This is the area where you hold anything requiring action, and it is an easy place to find things when you need them.  But we are not done — for anything of importance and or with a deadline, then set a reminder.  Use what ever reminder system works for you, whether it is a day planner, an electronic feature of your Outlook, or whatever works for you.

If it is an item you need to save for reference, you will drag and drop these in to a reference folder that you create.

Smallbizlady:  What is the two minute rule?

This is one of the secrets to our 12 steps that gets all of this humming.  It is a takeoff on David Allan’s Getting Things Done.  There is an exception to all the dragging and dropping involved in sorting all of your incoming e-mail — and that is to use the two minute rule.  This rule states that if you believe that the item can be handled in two minutes or less, handle it, regardless of priority.  While this may appear to fly in the face of all time management theory, the need to reduce the e-mail clutter trumps that.  So if it will take you three minutes, drag and drop it somewhere. If it will take you to minutes or less, handle it, and get it out of the in box.

Smallbizlady: But what if I forget to check on all that stuff that I have put in folders?

Marsha Egan: You won’t forget.  Because you will start a new daily habit of planning your entire day at a specific, regular time — most people use the mornings. This is when you plan your entire day, not just do e-mail.  You assemble everything you need to consider for the day, return phone calls, meetings, projects, and tasks delivered by e-mail, and this is when you set your priority list for the day.  This helps you avoid e-mail messages arriving sporadically drawing you off your plan.  Of course you may have some urgent items that appear, and require handling — that is business — but viewing your reminders that have popped up in the morning based on what you have dragged and dropped into folders, will enable you to go into the folder access the item and handle in its correct priority.

Smallbizlady: What is your best advice for all of our chatters to manage your e-mail better?

Marsha Egan: The most important thing to recognize is the way we e-mail has become habit, and habits are very difficult to change.  Trying these new procedures needs to be focused on for at least a month.  If it feels uncomfortable, power through it.  If you’re having trouble changing to checking your e-mail only five times a day, start by checking it only a times a day and whittle it down.  Changing habits takes focused attention, but over time it becomes the new habit.  That is why my book is called Inbox Detox and the Habit of E-mail Excellence. It is the only book on the market that deals with e-mailing productivity has a habit that can be changed, rather then just processes to do differently.

Disclosure Note: I was mailed three books to review, to prepare for this interview and give away on #smallbizchat.

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

Melinda Emerson, “SmallBizLady,” is a Veteran Entrepreneur, Small Business Coach and Social Media Strategist who hosts Smallbizchat weekly for emerging entrepreneurs on Twitter.  Her first book is, Become Your Own Boss in 12 Months, is out in March 2010.

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How to Tame Your Email

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The Entrepreneur’s Job Description PART II

Just as you would write a job description when hiring an employee, you need to understand what is fully involved in your new job as an entrepreneur and business owner. Everyone at some time or another has dreamed of becoming their own boss, but I’m here to tell you there’s a lot of work involved in running a successful small business. This post is the second of a two part series on what it takes to be an entrepreneur; click here to view Part I of this article.

This blog post is excerpted from my new book Become Your Own Boss in 12 Months; A Month-By-Month Guide to a Business That Works which will be released in March 2010 by Adams Media.  Become Your Own Boss in 12 Months walks you step-by-step through the Emerson Planning System, which will reduce your learning curve as you start your business.

Starting a business is a huge commitment of time, money, and personal energy.  Here’s a list of five more jobs you must hold as a small business owner.

Chief Operations Officer– Once you have your vision for your business, then you must run it.  Issues such as office space, banking, insurance, inventory management, budgeting and financial management are all things that must be handled in order to run a small business effectively.  You must also make sure there are processes in place for hiring, sales and customer service.

Chief Project Manager— You must know who is going to really get the work done once a sale is made to a customerWho’s going to communicate with the client, attend all meetings and make sure the project or delivery stays aligned with the timeline? Will you need to hire employees or freelancers to get the work done?

Web/Social Media Manager— In addition to having a website that is updated regularly, you also need to make sure that you are maintaining a presence on social media sites where your prospective customers are spending time. Three top social networking sites are LinkedIn, Twitter and Facebook.  If you decide to launch a blog to keep your website updated and promote your expertise, you will also need to write regular blog posts. Using social media consistently is the best thing you can do to build your small business brand online.

Bill Collector— One you make a sale, you must have a process in place to collect your money.  In the current economic environment many businesses and corporations are paying their bills late.  Small businesses are always on the bottom of the list, so you must be aggressive about getting paid.  On day 31, you should be on the phone and emailing about the status of your payment.  This is one of the least fun things to do as a business owner, but you must be paid for your products and services.     

Secretary— In addition to writing your own letters, you will do your own mail merges, labels and take your mail to the post office or over night mail drop off.  You will probably answer your own phone as well.  It will be important to screen your calls.  Never hesitate to tell a caller you are on deadline and need to call them back. Be sure to use a message pad so that you can actually remember to return the call.

This information will help you think through having your own business – before you get too far down the road pursuing your entrepreneurial endeavor.

Click here to view Part I of this article.

What else do you think needs to go into the small business owner’s job description?  Please leave a comment.

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 resource on Twitter to discuss everything entrepreneurs need to know about launching and running a profitable small business.  Melinda’s first book, Become Your Own Boss in 12 months; A Month-By-Month Guide to a Business That Works will be released by Adams Media in March 2010.

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How to Blog for Money

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 Katherine Reynolds Lewis @CurrentMom. She is a former newspaper national correspondent who now runs her own freelance writing business focusing on work, personal finance and parenting for magazines, Web sites and newspapers. She’s the founder of CurrentMom.com, an incubator for emerging mom-focused technologies and women entrepreneurs. For more information www.currentmom.com

SmallBizLady: What skills and background make someone likely to succeed at blogging for money?

Katherine Lewis: Obviously, you have to be a decent writer. But some of the most gifted writers I know would never succeed as bloggers because they don’t have the business sense and the ability to budget their time. You need to be ruthlessly efficient in creating high-quality content that people want to read. You have to avoid the tendency to get sucked into a topic and spend way too much time on it. It also helps to have the self-confidence to present yourself in an appealing way and the commitment to make it through the start-up period when you’re writing reams and making very little.

SmallBizLady: What are the biggest mistakes beginning bloggers make starting out?

Katherine Lewis: The biggest mistake is assuming that everyone will be fascinated by the minutia of your life or that you are funny if you’re not. It’s easy to look at personal blogs that skyrocketed to success, like Dooce or the Julie/Julia Project, and think, “I could do that too!” The truth is that blogging is a lot of work and making it big on a personal blog is like winning the lottery. Be a critical editor of your own writing. The next biggest mistake is relying only on advertising for revenue. You need to put together a business model that includes other revenue streams, such as sponsorships, affiliate commissions, direct product sales, donations, e-courses or seminars, network marketing, consulting or even pay per post. But don’t expect a blog that is heavily sales oriented to resonate with readers; one rule of thumb is 80 percent valuable content to 20 percent sales messages. (At most.)

SmallBizLady: How do you get a gig writing a blog for a corporation, association or Web site?

Katherine Lewis: Writing a blog for hire can be less work at first if you are guaranteed a certain income. Many of the outfits that pay you only for pageviews you receive will be just as much work as starting your own blog from scratch — with the downside that you likely don’t own your own words. You land a paid blogging gig the same way you get any job: network, network, network. These days, every business owner either has a blog or thinks she needs one. If you can demonstrate your blogging skills, you can market it as a skill alongside the other business services you may perform.

SmallBizLady: How much can you expect to get paid to blog?

Katherine Lewis: This is a very controversial topic in all of the blogging and writing groups I belong to. There are lots of organizations offering $5 or $10 a post, or only paying based on your pageviews or conversions. I would discourage anyone from traveling this route, unless you want a platform to sell an existing product/book or market yourself as a consultant. But there are decent gigs out there where you can earn $50 to $100 for a relatively simple post. The most I’ve ever made for a single blog post was $500.

SmallBizLady: How should you use social media to promote your blog?

Katherine Lewis: Any way you can! Everyone who creates content needs to have a Twitter account and Facebook page, in my opinion. I’d also add LinkedIn and StumbleUpon to that list, if you have the time. Use social media to find like-minded bloggers and develop relationships with them. Make sure you leave comments on their sites and link to them, and you might also swap guest posts. Social media is also a great way to expose your off-line network to your blog posts.

SmallBizLady: Should you blog for free in order to put together a portfolio of work that will land you future paid work?

Katherine Lewis: I don’t ever blog for free. But I’ve been a professional writer for 15 years. If you’re just starting out, I could imagine blogging for free just to get into the practice of writing regularly for an interactive audience. Or if you want to explore a new voice or new content area. Just don’t expect it to lead to a dream gig; at most it would give you a step up.

SmallBizLady: What are the best resources for beginning bloggers who want to make money at it?

Katherine Lewis: I like @Problogger @copybloggger @typeamom - and for those on a more professional track: @mediabistro @poynter @ONA

SmallBizLady: How long does it take to start making real money blogging? How much time do you need to spend and how do you structure your blogging?

Katherine Lewis: A lot. A lot. If you’re starting a blog from scratch, it takes at least six months to establish yourself with Google and other search engines. Then you can build some serious pageviews and eventually make something more than bus fare. I’d suggest structuring your blogging in a very disciplined way because it’s easy to let it take over your entire day. Better to limit it to two extremely focused hours, if that’s a pace you can maintain over the long term.

SmallBizLady: How do you come up with ideas for content? Don’t you run out of ideas for blog posts?

Katherine Lewis: At any given time, I have about a dozen ideas that I am dying to write about, in each of the topic areas I cover. I can’t imagine running out of ideas. I keep ongoing lists of story ideas and add to them as I read the news or talk to people. I’m a voracious consumer of all forms of media, and usually that stimulates more ideas. If you are at a loss for ideas, search Google Insights or Adwords for the keywords that you imagine your readers would be searching for. Look at your blog statistics to see what keywords are bringing people to your blog; create more content along those lines. You can always write about events in the news or upcoming holidays.

SmallBizLady: Do I need to worry about the new Federal Trade Commission guidelines for bloggers?

Katherine Lewis: Absolutely! I’m not a lawyer, but my basic understanding is that bloggers must disclose any benefit we get in exchange for a review or a blog post, whether that’s free products or outright payment. When in doubt, disclose. More: http://bit.ly/2Cuu2F

SmallBizLady: What’s the best advice for people who want to blog for money?

Katherine Lewis: This is not a pursuit for the faint of heart. You must pace yourself so you don’t burn out before you can start making money. Network relentlessly, and give at least as much as you take along the way. Be willing to adapt your business model along the way to add new elements or abandon ideas that aren’t working. Be stingy with your time — only spend it when you have a clear vision of how it will help you achieve your goal. Most important, don’t neglect your real life. Have fun blogging, but take a break from the computer once in a while!

Links to relevant articles:

http://www.currentmom.com/currentmom/2009/11/get-started-freelance-writing-for-money-3-questions-to-ask.html

http://www.currentmom.com/currentmom/2009/11/why-are-you-blogging-money-or-selfexpression.html

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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10 Bible Verses Every Small Business Owner Needs

MistyPathAs a Christian and a family focused entrepreneur, I believe that faith is a key ingredient in small business success.  In this current economy, the people of God must remember that if you honor God through your business he will direct your path.

Each year, I pick a bible verse as my theme for the New Year.  As I considered which bible verse would guide me in 2010, I thought it would be helpful to share some of my favorites. Use these bible verses in the good and tough times in your small business.

1. “Trust in the Lord with all your heart. Lean not on your own understanding, in all your ways acknowledge him, and he will direct your path.” Proverbs 3:5-6 (NIV) Learn something every day.  If you only lean on your own knowledge in your business, you will not be able to grow.  You must grow yourself to grow your business

2. “Behold, I am doing something new! It’s already happening; don’t you recognize it? I will clear a way in the desert. I will make rivers on dry land.”  Isaiah 43:19 (GOD’S WORD® Translation) Sometimes your business will need to move as the market pulls you in a different direction. You might need to reinvent your business, and you should not be afraid. God’s always got your back.

3.”Do not be anxious about anything, but in everything, by prayer and petition, with thanksgiving, present your requests to God.” Philippians 4:6 (NIV) One of the most important things you can do for your business is to pray every day.

4. “Faith without works is dead.” James 2:26 (KJV) You can’t just pray for success. Develop a plan and work your plan. If you can do something about your situation, then do it. Stop making excuses, stop procrastinating, and do it!

5. “Have I not commanded you? Be strong and courageous. Do not be terrified; do not be discouraged, for the LORD your God will be with you wherever you go.” Joshua 1:9 (NIV) There will be contracts that you really need that you will not win. There will be days when you drop the ball on your customer service, but you can not let that define you or your business. You will get another opportunity and even if you don’t, God is with you always.

6. “As I think in my heart, so am I.” Proverbs 23:7 (NKJV) Your thoughts can be your number #1 asset or your biggest liability. When you are alone in your office or back bedroom, your thoughts can easily turn on you. Your ability to stay positive, learn from all experiences and shake off mistakes quickly will be a big asset to you and your business.

7. “God has not given me a spirit of fear, but of power, love and sound mind.” 2 Timothy 1:7 (NKJV) Making decisions in your small business based on fear is never helpful. For that matter making decisions in anger is not good either. Try hard not to be reactionary with clients, vendors or employees. Use factual information and up-to date financials to make sound business decisions.

8. “But these things I plan won’t happen right away. Slowly, steadily, surely, the time approaches when the vision will be fulfilled. If it seems slow, do not despair, for these things will surely come to pass. Just be patient! They will not be overdue a single day.” Habakkuk 2:3 (TLB) You need to understand that God’s time is not your time. There may come a time in your business when you just know you have a contract, one that you really need and things fall through. Those are the times when you need to trust in the Lord the most. When we accept God’s timing, we can learn to live in hope and enjoy our lives while God is working on our problems.

9. “Happy is the man who finds wisdom, and the man who gains understanding;” Proverbs 3:13 (NIV) You need to be a life long learner in order to be successful in business.  You should constantly seek to improve yourself and increase your knowledge about the business of running a business.

10. “I have told you these things, so that in me you may have peace. In this world you will have trouble. But take heart! I have overcome the world.” John 16:33 (NIV) This is my new bible verse for 2010. It came to me watching a college football game. I believe I was only watching the game to see it.

Remember, whether you are religious or not you can always pray about your business.

Special Shout out to Joyce Meyer Ministries for her book The Secret Power of Speaking God’s Word which gave me guidance for this post and to Pastor F.L. Anderson who gave me some biblical wisdom for this article. Read his blog http://www.FLAnderson.com.

Do you have a special bible verse that has helped you in your business? Please leave a comment and tell me about it.

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 resource on Twitter to discuss everything entrepreneurs need to know about launching and running a profitable small business. Melinda’s first book, Become Your Own Boss in 12 months. A Month-by-Month Guide to a Business that Works will be released by Adams Media in March 2010.

For more tips on how to start or grow your small business visit http://succeedasyourowboss.com and subscribe to Melinda Emerson’s blog.

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When Growth Stalls in Your Business

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 an excerpt from my recent interview with Steve McKee  @whengrowthstall on Twitter.  Steve Mckee is the author of When Growth Stalls and a columnist for BusinessWeek.com. A marketing strategist for more than two decades, he runs his own firm advertising firm, McKee Wallwork Cleveland, which was recently recognized by Advertising Age as one of ten top small agencies in the nation.  For more information or to purchase a book log on to http://www.whengrowthstalls.com/.

Disclosure Note: I was mailed two books to review and to give away on #smallbizchat to prepare for this interview. 

SmallBizLady: How did When Growth Stalls come about? 

Steve McKee It was actually a fairly serendipitous thing. My firm, which had been named to the Inc. 500 as one of America’s fastest-growing companies, suddenly and inexplicably stalled. We went through a very difficult two-year period of drifting. During that time we commissioned a research study among other Inc. 500 companies to see what we could learn about their ability to maintain growth, and that’s when the lights came on for us, I began sharing the findings in speeches around the country and one thing led to another until the book came out.

SmallBizLady:  The book seems well-timed. Did you plan it that way? 

Steve McKee The fact that the book came out during the worst recession in our lifetime is pure coincidence. Our original research was completed in 2003 when the economy as a whole was doing just fine. We started the book project in early 2007, and it wasn’t until late that year that things started to go downhill. My publisher did try to move the pub date along once the economy started to tank, but it wasn’t any more planned than that.

SmallBizLady:  Has the depth of the current recession impacted your thinking? 

Steve McKee Only to reinforce it. Economic factors are the cause most often cited for stalled growth, and that’s happening in spades this year. In fact, my research shows that in an average year between ten and fifteen percent of companies stall. I’ve seen estimates that during this recession as many as nine out of ten companies’ sales are flat or down. Truly unprecedented.

SmallBizLady:  You talk about destructive factors that correlate highly with stalled growth. What are they? 

Steve McKee There are two main categories—external events, which we call “market tectonics,” and internal dynamics, which are the most insidious and destructive.

SmallBizLady:  Let’s start with the externals. What are market tectonics? 

Steve McKee We call them market tectonics because just as with plate tectonics in the geological world, when the economic ground starts to shake, it affects every company. Recessions, new technologies, government regulations, competition—every company has to deal with these in one form or another. That’s not to downplay their impact (the current recession being the most powerful case in point), it’s just to say that they’re not unique to any one company. Typically when growth stalls, other things are going on.

SmallBizLady:  Which must be the internal dynamics, right? What are they? 

Steve McKee They’re what make life really interesting in a stalled growth environment. There are four that we see cropping up over and over when things get rough: a lack of consensus among the management team, a loss of focus in the marketplace, a loss of nerve, and inconsistency. All can do their damage by stealth, which is why they’re so destructive.

SmallBizLady: Lack of consensus sounds a little odd to be the first one. Why is it? 

Steve McKee It is odd, but it also tends to be present in virtually every stalled company. There’s this place between autocratic leadership and management by committee (two unworkable management situations) called consensus—some might call it strategic alignment—where healthy companies operate. Because everyone on the management team is a unique individual, we all tend to think a little bit differently about objectives, strategy and tactics. There’s room for some disagreement and lengthy debate when things are going well, but when a company is in decline (and tensions are on the rise) a lack of consensus can grind things to a halt. The reasons I list it first is because until it’s solved, none of the other internal dynamics can be.  

SmallBizLady: Loss of focus is #2. Is that common? 

Steve McKee Very common. Sometimes successful companies start believing they have the Midas touch and lose their focus, which causes growth to stall. Other times a loss of focus is a response to stalled growth, as companies desperately seek new revenue streams. Either way it can take them way off track.

SmallBizLady: I’m intrigued by the loss of nerve dynamic. Why is that an issue? 

Steve McKee Largely because of both of the above. If you’re not sure where you’re going—if you’re not even entirely sure what’s wrong—you tend to get very cautious. The place it manifests itself most often is in the wallet, as stalled companies cut or quit investments in the things that drive business forward—training, innovation, marketing, to name three. That loss of nerve only serves to slow things down further, reinforcing the lack of consensus and creating more pressure that can cause additional focus problems. It can get complicated fast.

SmallBizLady:  Factor #4 is inconsistency. Why is consistency so important? 

Steve McKee Primarily because it tends to go out the window when growth stalls. And in our over-communicated culture, consistency can be your best friend. Every time a company launches a new initiative or kicks off a new campaign, in some ways it’s starting over. It’s one thing to refresh your advertising along the same lines you’ve been doing for several years; it’s quite another to try to be something in the marketplace you’ve never been before. And since it can take some time to realize marketing effects, companies that need a quick fix tend to lose patience. That only leads to more change as they dig an even deeper hole without even realizing it.

SmallBizLady: since so many companies are so slammed by economic events, can this book really help? 

Steve McKee Absolutely. The recession has been terrible, but one way to look at it is as one big tectonic event. It has affected every company, and many (if not most) are now dealing with some or all of the above issues. Those that recognize them and take steps to address them now can actually gain competitive advantage, positioning their companies for greater success as the economy starts to rebound.

SmallBizLady:  Any other words of advice? 

Steve McKee Yes. Don’t neglect or ignore these issues. They’re real, and they’re terribly destructive. They’re not as easy to see as something that shows up on a P&L, but I guarantee you they’re affecting what that P&L says. Face up to what might be going on psychologically within your company, and don’t be afraid to confront these destructive dynamics. You may never rid your organization of them entirely (not as long as any human beings are involved), but you can keep a lid on them if you remain alert and aware.

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

Melinda Emerson “SmallBizLady“, is a Veteran Entrepreneur, Small Business Expert and Social Media Coach who hosts #Smallbizchat on Twitter. #Smallbizchat is the trusted resource on Twitter to discuss everything entrepreneurs need to know about launching and running a profitable small business. Melinda’s first book, Become Your Own Boss in 12 months. A Month-by-Month Guide to a Business that Works will be released by Adams Media in March 2010.

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The Entrepreneur’s Job Description PART I

It will take every bit of enthusiasm and energy you have to grow your business into a viable enterprise and a powerful brand.   If you think you work hard now with a job working in corporate America, you are in for a rude awakening once you start your small business, particularly if you are used to having a large support staff.  This is the first of a Two Part series of blog posts on what it takes to be an entrepreneur.

cover_becomeboss_11-16-09This blog post is excerpted from my forthcoming book Become Your Own Boss in 12 Months! A Month By Month Guide To A Business That Works! The book will be released in March 2010 by Adams Media.  Become Your Own Boss in 12 Months! is organized by month to lead you step by step through the process of how to transition from a job to small business ownership. In other words, it’s a 12 month planning guide to fire your boss and start your small business.

What Does It Take To Be an Entrepreneur?

1. Chief Visionary Officer You must visualize what you want your small business to become over the long haul. Stephen Covey’s most famous concept is “Begin with the End In Mind!”  This is true in business and in life.  This is the step that gets people in trouble all too often.  Don’t get excited about making one initial sale.  Take the time to plan out your business model and write out a business plan. Think about what you want your business to be ultimately in terms of number of employees, number of locations, and amount of revenue etc. this will dictate everything you do as you start and grow your business.

2. Chief Sales Officer Nobody should be able to sell your business better than you. You need to be a selling machine.  Networking feeds the sales of your business.  People do business with people they like and know.  If you are known more internally at your current job than externally, spend the time to build your network before your start your business.  If you are really not that great at networking, there are two options: get a partner with a great rolodex who loves to network or take some sales training courses to develop a structured system to get it done.

3. Marketing Manager Your marketing efforts are the life’s blood of your business.  You must market strategically. You have limited time and limited resources. The narrower your niche market, the easier it is to focus on where to engage your customers. When you are just starting a business you should do marketing activities weekly.  Social media marketing activities must be done at least three times a week.NameTag_CVO

4. AR/AP Manager (Accounts Receivable /Accounts Payable) One of the most important things you need to do to have a successful small business is to stay on top of who you need to pay, and who owes you money.  You should develop a set policy for when you cut checks to vendors and payroll such as every two weeks.  When you can, try to negotiate credit terms with all of your vendors. Push for Net 45 if you can.

5. HR Manager All part time, full time and contract employees will be hired by you.  That means you will need to develop job descriptions for each position and conduct interviews for all positions needed. If you work with a temp agency you will still need to provide a job description.  No employees should be hired until you can afford their salary, taxes and benefits for at least six months. A year is even better.

What other jobs do you think a small business owner needs to do?  Please leave a comment.

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, Become Your Own Boss in 12 months; A Month-By-Month Guide To a Business Than Works! is scheduled to be released by Adams Media in March 2010.

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Brand Design for Start-Up Businesses

This is excerpted from my recent interview with Erin Ferree @elfdesign. Erin Ferree is a branding expert who develops logos, print graphics and websites and online designs that make small businesses stand out from their competition. She is CEO of elf design and Author of the E-book; Stand Out! Differentiate Your Business to Build a Solid Foundation for Your Brand. Erin can be reached at http://www.elf-design.com or on her blog www.not-just-pretty.com. She also has a free gift for readers of this blog: “A Roadmap to Designing a Stand-Out Brand available here www.elf-design.com/roadmap.html

SmallBizLady: What Is Brand Design?

Erin Ferree: Many people think that Brand Design is just about designing a logo and marketing materials. That’s a part of it, but not the whole story. Brand Design means that you first create the Brand of your company: the story that you want to tell about your company.

Then, you design your graphics and the visuals for your company to tell your company’s story to your best potential clients.

SmallBizLady: Why Do Start-up Businesses Need to Design a Brand?

Erin Ferree: A brand helps your business look established, stable and successful and it helps you look more trustworthy, like you’re a “real” business and like your business will be there for your clients when they need you.  A Professional brand helps start-up businesses overcome three of the most common sales objections you’ll hear:

Objection 1: That you haven’t been in business long enough to be trusted.

Objection 2: That your start-up business might “go under” at any moment, leaving the client without a solution – and out their deposit.

Objection 3: That you might not have the experience to complete the project successfully.

SmallBizLady: What Else Can a Brand Do?

Erin Ferree: A brand contributes to your business’s visibility, credibility and memorability.  Visibility: You want your brand to be visible in the marketplace with a recognizable brand design that appears on all of your business materials. Credibility: Having a consistent brand makes your business look more believable. Your customers will be more likely to trust your claims and to trust your company with their business. Brand Design helps your company be more memorable – which means that it’s more likely that people will call you when they need your services. Memorability: 40% of people are better at remembering what they see (graphics) than what they hear or read. When you combine graphics with text or audio recordings, that 40% memorability skyrockets – to 70% and more.

SmallBizLady: How Should a Start-up Business Go About Designing a Brand?

Erin Ferree: There’s a 3-step process that every business should go through. Defining these factors will help you determine what your business’s brand designs should look like.

Here’s a quick outline of the steps:

Step 1: Define your business’s Brand Story: who you are, what you do, what makes you different and who you can best help.

Step 2: Brand Message. Determine your brand message to communicate: who you are, what you do, and what makes you different to the people you can best help.

Step 3: Brand Design. Develop consistent marketing and online materials to showcase your brand and to market your business.  Making sure that these materials are consistent is key. Consistency gives your business the repetition and reinforcement needed to create brand recognition.

SmallBizLady: How Can a Company’s Brand Design Communicate Their Brand Story to Their Customers?

Erin Ferree: There are 3 major design elements that a brand design can use to communicate:

1. Choose a Symbol. Symbols, forms, shapes and even objects all have meanings. Choose symbols that have meaning for your specific target audience. And, make sure that meaning aligns with your Brand Story.

2. Font meaning. Fonts are a major design element.  Each font has a different meaning or message. For example, Century Gothic is a modern, geometric font and Times New Roman is a more traditional font. Choose your fonts carefully to communicate your Brand Story.

3. Color. You’ve heard that a picture is worth a thousand words? Once you add color to that picture, it can be worth ten thousand words. Colors have different meanings in different contexts and cultures. Make sure that your business’s color palette communicates the message that you’ve laid out in your Brand Story.

SmallBizLady: How Should a Start-up Use Design Elements to Communicate?

Erin Ferree: The most common way to use design elements (symbols, fonts and color) is in your logo. A logo should consist of a unique icon, or picture, that shows what your business is all about, and your business name. Your logo should have a color palette associated with it (though you will have a black and white version too)

SmallBizLady: Should a Small Business Design a Logo Immediately Upon Starting Up?

Erin Ferree: A logo may not be the first piece of marketing material you design – you should wait to design it until your business has its’ “legs”.  You will probably need to design some temporary marketing materials when you first begin your business. This will allow you test your business ideas, refine them, and to get the first few paying customers. By waiting to design your brand, you can make sure your brand story is solid and that you have a story that you want to live with for the life of your business.

SmallBizLady: What Can Happen if You Design the Logo Too Soon?

Erin Ferree: You could waste money. You need to make sure that your logo will be your business’s logo for life – because you don’t want to redesign your logo.  Redesigning your logo is not only a costly process, but means that you have to redesign all of your other marketing materials.  And redesigning your logo means that you lose all the memorability that you’ve built up around your original logo.

SmallBizLady: When Should a Start-Up Business Approach a Graphic Designer?

Erin Ferree: Once you have a defined Brand Story then you should find a graphic designer and have them create a logo that communicates directly to your customers. I recommend working with a designer who has been trained in symbology, font meanings and color psychology.

SmallBizLady: Is a Brand Design Just a Logo?

Erin Ferree: No. A Brand Design consists of a logo and your company’s Visual Vocabulary. A Visual Vocabulary is all of the other design elements that you will use in addition to the logo on your marketing materials. The most basic Visual Vocabulary will include an extended font palette (headline and body fonts chosen to compliment your logo font)… and an extended color palette. These colors can be used for backgrounds, highlights, headlines, etc.

A more advanced Visual Vocabulary will have background colors, effects, specialized font treatments (such as a treatment for your tagline), the type of paper that you print your materials on. All of these elements, plus your logo, are the foundation of your company’s brand design.

SmallBizLady: What Brand Elements Should Be Designed First?

Erin Ferree:  Once you’ve designed your logo, you can begin designing your print and online marketing materials. You should start designing a business card and a basic website or blog. Then, take stock of which additional pieces would help you communicate with your target audience – and design those strategically.

SmallBizLady:  Why Is It So Critical to Invest In Professional Brand Design?

Erin Ferree: Brand Design helps a start-up – or any small business – to connect more quickly and efficiently with their potential customers.

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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Win a Year of FREE Business Coaching From Melinda Emerson “SmallBizLady”

For Immediate Release: January 5, 2010, Philadelphia, PA In celebration of the release of her first book, Become Your Own Boss in 12 Months: A Month-by-Month Guide to a Business That Works (Adams Media, March 2010) Melinda Emerson has decided to offer one lucky business owner the opportunity to be coached weekly personally by her.

If you are an early stage entrepreneur with one year or less in business or someone with a side hustle looking to go full-time,  or  someone looking to start a business in 2010 this opportunity is for you.  One of the main selling points of her book is the Emerson Planning System, her innovative method for starting a successful small business.

In addition to FREE one-on-one coaching, the selected business owner will receive an autographed copy of her book Become Your Own Boss in 12 Months and the workbook, her life planning journal, and her Audio CD: 10 Things You Must Never Forget in Business. This is a once in a life time opportunity worth over $25,000 to a start-up business. You supply the energy, the idea, and elbow grease—and SmallBizLady supplies the plan.

To enter, entrepreneurs need to write an essay explaining in 500 words or less why they want to be an entrepreneur including their basic business concept, and a 100 word biography.  Entrants should also provide a headshot, email address, website/blog, and any social media accounts (Facebook, Twitter and LinkedIn) in their contact information. No purchase necessary to enter. Coaching with Melinda will be 50 minutes a week for 50 weeks. The winner will be required to blog weekly about their entrepreneurial journey.

Submissions are due to Melinda@melindaemerson.com by 5pm on February 5, 2010.  The winner will be selected by March 5, 2010.

About the Melinda:

Melinda F. Emerson “SmallBizLady” is a seasoned entrepreneur, professional speaker, and small business coach whose areas of expertise include small business start-up, business development and social media strategy . She hosts #SmallBizChat weekly on Twitter.  She is also the founder and CEO of Quintessence Multimedia, an award-winning strategic communications and digital media firm. She has created productions for such companies as Johnson & Johnson, Verizon, Enterprise Rent-A-Car and Comcast. Emerson was named one of the Top 50 Women in Business in Pennsylvania, one of Top 30 Leaders of the Future by Ebony magazine and the Philadelphia Business Journal/National Association of Women Business Owners gave her the Woman of Distinction Award.

MFE Consulting, LLC

67 Long Lane, Suite 50, Upper Darby, PA 19082

Web: www.melindaemerson.com / Blog: www.succeedasyourownboss.com

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10 Things To Do Before Going into Business

The following is excerpted from my forthcoming book Become Your Own Boss in 12 Months: A Month-by-Month Guide To a Business That Works! which is being published by Adams Media, March 2010.

cover_becomeboss_11-16-09Are you tired of your boss nagging you throughout the day? Are you fed up with the small amount of pay you get as compensation at the end of the month to put up with his repeated verbal attacks? If this is the case, it is high time that you chucked your 9 to 5 job and started your own business. The best way to do this is to develop a plan for success.

Life is too short, and jobs are no longer secure anyway. When you are your own boss, you can work how and when you like in your own business. The key to launching a successful small business is to developing a firm plan, saving enough money before you quit your job, and learning the business of running a business.  Below is a list of the Top 10 Things to Do before Going into Business.

  1. Plan Your Departure 12 Months Before You Quit Your Job. Create a 12 month countdown to accomplish all the things that you need to get in order personally prior to starting your business e.g., financial resources, upgrading your technology skills, building marketing platform, business planning, office space/inventory needs, etc.
  2. Develop A Life Plan. Decide what kind of entrepreneurial lifestyle you will lead.  Do you have the energy to start a business?  How many days a week will you work.  Will you work 6 days a week or be off every Friday?  Will you work weekends, every weekend? You should design your life plan around what your best day looks like 5 years from now.
  3. Calculate Your Net Worth. List all of your fixed and liquid assets, such as real estate and cars, cash, stocks, and bank accounts at their current value.  List all jewelry, furniture and household items at their current value.  These are your total assets.  Subtract all of your debts, such as your mortgage, car loan and credit card balances, from your total assets. The result is your net worth.  Remember: Pay off all credit card debt! Carrying large amounts of credit card debt will strangle you financially as you start your business.
  4. Save As Much Money As Possible. Time to tighten your belt.  All too often, people go into business without any personal savings, exclusively using loan money from friends and family, home equity and credit cards.  You may expect to pay the loans back right away with the profits from your business; however, it typically takes 12-18 months to generate revenue and an average of three years to break even.  Please note: You will also need a separate emergency savings account just for your household.
  5. Upgrade Your Technology Skills. 80 percent of the people know less than 20 percent of their software’s capabilities.  Invest in online training or video professor to learn any software and social media marketing skills essential to your business operations.  Quickbooks is a very common small business accounting software program that will be helpful to learn even if you hire a bookkeeper.  Learning how to maximize your technology resources will give you skills that make you more valuable in your business.
  6. Determine How You Will Cover Your Health Insurance.   The ideal scenario is when your health insurance is covered by your spouse, but for those that are divorced or single parents, health insurance is serious business.  There is COBRA, which is offered by your most recent employer, but it is only available for 18 months after your quit your job and is very expensive.  You may also obtain health insurance through the National Association for the Self Employed (NASE), local Chambers of Commerce, and trade organizations.
  7. Expand Your Network. Evaluate your network.  Are you known internally or externally at your job? Make a real effort to join organizations and attend networking functions to build and reinforce relationships.  When you first start out in business, many of your customers typically come from your personal network.
  8. Get Yourself a “Kitchen Cabinet” of Advisors. Find four supportive mentors or friends who you can safely bounce ideas and concerns off of.  It is helpful if at least one of these people is already an entrepreneur or a potential client.
  9. Get Yourself a Personal Theme Song. Pick a song that always makes you feel good!  Play it everyday to energize you.  The journey you are about to start is hard and lonely, and your theme song  will help lift you up and keep you focused on your goal – especially when you need extra motivation.
  10. Stay Positive and Encouraged. You are the power source that will make your business a success!  Find ways to keep your battery charged and sustain your optimism.  Make a list of your accomplishments every day – it will keep you from dwelling on your never ending to-do list.

There are many different types of opportunities available for you in the form of a small business.  If you are experienced in any field, you can make money working for yourself.  Start realizing your real potential and make money for yourself by selecting the right business opportunity.

Good Luck! An expanded version of this article titled; 44 Things You Need To Do Before You Go Into Business is available as a free download on my website at www.melindaemerson.com.

This is insight into starting – and more importantly, staying – in business.  I love to get feedback. Tell me if you have any other good tips to add to the list.

Melinda Emerson “SmallBizLady”is a Veteran Entrepreneur, Small Business Expert and Social Media Coach who hosts #smallbizchat on Twitter. #Smallbizchat is the trusted resource on Twitter to discuss everything entrepreneurs need to know about launching and running a profitable small business. Melinda’s first book, Become Your Own Boss in 12 month! A Month-by-Month Guide to a Business that Works! will be released by Adams Media in March 2010.

For more tips on how to start or grow your small business visit http://succeedasyourowboss.com and subscribe to Melinda Emerson’s blog

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