SucceedAsYourOwnBoss.com

Archive | February, 2010

What is Coming up in March on #Smallbizchat on Twitter?

by Melinda Emerson on February 26, 2010 in Grow Your Business, My Recommendations, SmallBizChat, Social Media, Your Small Business

#SmallBizChat is a weekly conversation on Twitter where emerging small business owners can get answers to their questions. If you have a Twitter account join us every Wednesday from 8-9pm Eastern Time.

If you don’t have a Twitter account, not to worry. a Q&A interview with my #Smallbizchat guest is posted on this blog every Thursday morning. Subscribe to this blog to have it sent directly to your inbox.

If you’re new to Twitter, here’s how to participate in #SmallBizChat: http://bit.ly/S797e.

The transcript from every chat is available through the #Smallbizchat community. Just hit the silver “transcripts” button under the video in the right hand column of this blog to sign in. Remember, once you develop a login you have access to all the transcripts.

Who is on #SmallBizChat in March?

March 3 @ErikVonk President, BOTH How to be in business for yourself, but not by yourself

March 10 @Bizsavvymom Malika Duke on Social Media Selling Strategies

March 17 @Colleendebaise Small Business Editor, Wall Street Journal Starting a Small Business in this Economy.

March 24 @Skydiver HARO founder Peter Shankman On How to Launch a Product Online.

March 31 Special guest host Mike Michalowicz @TPEntrepreneur interviews Melinda Emerson @Smallbizlady on How to Go From Corporate to Small Business Ownership

March 31 On SmallBizRadio we have Editor, SmallBizTrends.com - Anita Campbell on The Future of Small Business in America. Join us on Wed at 1pm ET on #BlogTalkRadio

Leave a comment and let me know what topics YOU would like to see covered on #SmallBizChat.

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:

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

Melinda Emerson, known to many as “SmallBizLady,” is a Veteran Entrepreneur, Small Business Coach and Social Media Strategist who hosts #SmallBizChat weekly on Twitter for emerging entrepreneurs. #Smallbizchat is the trusted resource on Twitter to discuss everything entrepreneurs need to know about launching and running a profitable small business. Her first book Become Your Own Boss in 12 Months is out in March 2010.

Comments { 1 }

Small Business Taxes 101

by Melinda Emerson on February 25, 2010 in Uncategorized

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 @lauricehewitt. Laurice Hewitt is the owner of Hewitt Business Consultants. She is a small business bookkeeper and tax preparer. The goal of Hewitt Business Consultants is to answer common business bookkeeping and tax questions, solve the problems that hold small business back financially. Hewitt Business Consultants provide consulting, bookkeeping, tax preparation and financial education workshops. For more information http://www.hewittbusinessconsultants.com

Smallbizlady: What taxes do small business owners pay?

Laurice Hewitt: The tax a small business owner pays depends on the business entity or IRS classification of the business. Typically quarterly sales taxes, federal and state income taxes and if there’s any employees other than 1099 contractors, there’s also payroll taxes.

Smallbizlady: When are federal business taxes due?

Laurice Hewitt: Business Income Taxes are due March 15^th. Individual income taxes are due April 15^th. This would again depend on the business entity.

SmallBizlady: Is there any strategic advantage to applying for an extension on business taxes?

Laurice Hewitt: That would depend on the circumstances of the business. It is always good to file within the deadline as opposed to filing an extension. If the taxpayer (small business) does not pay their taxes by the due date, they should do the following. The taxpayer should estimate their tax liability and send any balance due the appropriate extension form. If you make this payment and cover at least 90% of your real liability, you win. You will not owe a late filing or late payment penalty.

Smallbizlady: What should a business owner expect to pay to have their taxes prepared?

Laurice Hewitt: Charges for preparing quarterly and year-end business taxes vary depending on the complexity, the size of the firm and the kind of business. Fees for preparing monthly, quarterly and annual payroll tax forms are usually included as part of a payroll service. Income taxes for a sole proprietorship with no employees are filed as part of the owner’s personal income taxes.

Generally, a simple income tax return for an LLC partnership, S-Corp with few or no employees starts around $500 and goes up to $2,500 or more depending on circumstances.

Smallbizlady: Should business owners do their own taxes? Why or Why not?

Laurice Hewitt: As a tax professional, I would say no. I would not suggest a business owner to complete their own taxes. Annually tax some tax rules change, and you pay experts to stay on top of the changes in federal tax policy. Your tax professional will be knowledgeable of the new rules and their implications. The alternative is to purchase software from your local office supply store. The software should be specific to the business entity. Example: If your business is a S-Corp., then software specific to S-Corps should be purchased and used. I would not suggest using the software, because, as a business owner you may not quite understand the questions being asked or the implications of the answers chosen for each question required by the software.

Smallbizlady: How should non-incorporated solopreneurs prepare their tax returns?

Laurice Hewitt: A non-incorporated soloprenuer should use IRS Form 1040. Their tax return should be prepared, completed and submitted to the IRS by April 15^th.

Smallbizlady: If I am a S-Corp, how should may taxes be prepared?

Laurice Hewitt: S-Corp business owners should have their taxes prepared using IRS Form 1120s for the business and K-1 for personal income.

Smallbizlady: If my business is an LLC how should my taxes be prepared?

Laurice Hewitt: Business owners incorporated as an LLC should have their taxes prepared using IRS Form 1040 and a Schedule C.

Smallbizlady: Why is it so important to clarify a Personal vs. a Business Expense?

Laurice Hewitt: Small business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit. Generally, you cannot deduct personal, living, or family expenses. However, if you have an expense for something that is used partly for business and partly for personal use, divide the total cost between the business and personal parts. You can deduct the business part. For example, if you borrow money and use 70% of it for business and the other 30% for a family vacation, you can deduct 70% of the interest as a business expense. The remaining 30% is personal interest and is not deductible.

Smallbizlady: When can I claim my home office as a deduction?

Laurice Hewitt: If you use part of your home for business, you may be able to deduct expenses for the business use of your home. You need to figure out the percentage of your home is devoted to your business activities. Generally, deductions for a home office are based on the percentage of your home devoted to business use. These expenses may include mortgage interest, insurance, utilities, repairs, and depreciation. The home office deduction is available for homeowners and renters, and applies to all types of homes, from apartments to mobile homes. There are two basic requirements for your home to qualify as a deduction:

Regular and Exclusive Use. You must regularly use part of your home exclusively for conducting business. For example, if you use an extra bedroom to run your online business, you can take a home office deduction for the extra bedroom.

Principal Place of Your Business. You must show that you use your home as your principal place of business. If you conduct, business at a location outside of your home, but also uses your home substantially and regularly to conduct business, you may qualify for a home office deduction. You can also deduct expenses for a separate freestanding structure, such as a studio, garage, or barn, if you use it exclusively and regularly for your business. The structure does not have to be your principal place of business or the only place where you meet patients, clients, or customers.

Smallbizlady: When should a small business owner issue a 1099 form for a vendor or contractor?

Laurice Hewitt: A Form 1099-MISC must be issued when you make payments of $600 or more during one calendar year. A 1099-MISC forms are issued when you pay someone services, royalties or other various fees who is not an employee. The forms must be mailed to all parties no later than Jan 31^st. This does not include rents paid to real estate brokers. A 1099-MISC must also be issued for payments of $600 or more for prizes and/or giveaways with value over $600 such as prizes for winning a contest on television or radio.

Smallbizlady: I am married, and my spouse holds no ownership in the business should I file my tax return(s) jointly or separately?

Laurice Hewitt: The small business taxes should be file separately. Taxes are due soon. Will you be filing an extension this year? Tell me why?

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

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

Comments { 9 }

How is Your Entrepreneurial Literacy?

by Melinda Emerson on February 22, 2010 in Become Your Own Boss Tips, Before You Start, How to Start, My Recommendations, Your Small Business

This is National Entrepreneurship Week Feb 20-27, 2010. This year‘s theme is Entrepreneurial Literacy Empowers Everyone. This is a theme that I truly embrace.

Whether you are still working in corporate America, running a nonprofit, or leading the charge in your own small business - being able to evaluate things from a business perspective will always enable you to be more successful.

So What is Entrepreneurial Literacy?

The organizers of this week-long celebration in honor of Entrepreneurship in America define it as having some basic knowledge of how a business is created and managed.

I have a slightly different definition. When you are entrepreneurial literate, you are a student of small business. You do not just rest on your idea and marketing efforts. You constantly work to refine your business model. You are someone who makes sure your passion has a profit center.

Entrepreneurial Literacy is important because too many people who want to start small businesses lack critical understanding about financial matters including budgeting, taxes, balancing a checkbook, managing credit cards or lines of credit, and developing sales projections.

Here’s a fact: if you do not manage your household with a budget you are far less likely to manage your business with budget. The best business owners make business decisions based on up-to-date financial information that is tracked against a budget.

Your journey to become an entrepreneur starts from real experiences that test your knowledge and skills and motivations.

Pursuing entrepreneurial literacy is about the research you do as you prepare to start your business. The more you learn and grow, the better business leader you will be. Real entrepreneurial skills come from your work and industry experience, and your willingness to continue learning.

Entrepreneurial Literacy is a real necessity if you have plans to Become Your Own Boss. These are the skills that empower everyone to succeed in business and fuel the American economy with 60-80% of the net new jobs.

Here are 15 Questions for All Would-Be Entrepreneurs

Do you have the career skills and experiences to become a successful entrepreneur?
What personality traits are more likely to lead to success as an entrepreneur?
What taxes do entrepreneurs pay?
What items are part of a firm’s operating costs?
How can an entrepreneur learn about what his/her customers want?
How can computer skills help with business operations?
How do small business owners deal with risk?
How does personal financial literacy relate to business financial literacy?
What factors determine where to locate a business?
Why is branding important?
How does competition affect entrepreneurship?
What percent of American firms have no employees working for them? Why is this important?
What are some sources of funding to start a business?
What should you do if business drops off?
What should an entrepreneur consider when hiring employees for the business?

National Entrepreneurship Week is sponsored by The Consortium for Entrepreneurship Education which believes that ”Entrepreneurs are not born….rather they ‘become’ through the experiences of their lives.” (Albert Shapero – OSU) For more information http://www.nationaleweek.org/

Are there any other questions that need to go on this list? 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 seasoned entrepreneur, professional speaker, and small business coach. Her areas of expertise include small business start-up, business development and social media marketing. Melinda hosts #Smallbizchat, a weekly talk show on Twitter. Melinda’s first book Become Your Own Boss in 12 months; A Month-by-Month Guide to Start a Business that Works is due out in March 2010 by Adams Media.

Comments { 10 }

Developing an Elevator Pitch

by Melinda Emerson on February 18, 2010 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 Barbara Lopez @Brightfarm who is President of Brightfarm Introductions. Her company originally started out as a video production company specializing in writing :30-second and :60-second commercials. In 2008, she turned her process for writing videos into a simple process for creating elevator pitches. For more details www.brightfarm.com.

Smallbizlady: What is an elevator pitch?

Barbara Lopez: It is your verbal commercial. Usually 30 to 60-seconds. It’s designed to effectively answer the question, “What do you do?”. The term was coined years ago as a business term. It originated as the time it takes someone to ride an elevator and “pitch” what it is that you do to someone else. Other common terms are elevator speech or networking commercial. Nowadays, there are MULTIPLE places to use an elevator pitch, not JUST in an elevator. Obviously it’s used mostly in networking situations. But really, your elevator pitch is the VERBAL commercial that you’re going to use about yourself every single day, which you’re going to share with every single person you meet.

Smallbizlady: Who needs an elevator pitch?

Barbara Lopez: I truly believe that EVERYONE needs an elevator pitch. Think about how often we’re all asked, “What do you do?.” It’s a very common question, especially in social situations. People ask that question because it’s a good way to get to know someone. It’s a safe place to start a conversation. In that case, I think everyone needs one.

Smallbizlady: Why is it so important to have an elevator pitch?

Barbara Lopez: It’s crucial for business owners, entrepreneurs, and anyone looking to promote their business and career to have an elevator pitch. After all, “when your mouth is OPEN, so is your business.” “And when your mouth is CLOSED, so is your business.” That means, if we want people to know that we’re open for business, we need to TELL them. We can’t just assume that people know that we are. An elevator pitch is the perfect tool to do just that. Everything in business STARTS with a bright introduction. It’s your verbal commercial that you use in introducing yourself to every new person you meet. It could be in a professional networking situation. Or in line at the grocery store or post office. Or at a social event. You never know when you might be talking to your next customer.

Smallbizlady: What are the key benefits of having an elevator pitch?

Barbara Lopez: It gives us an opportunity to start out with a GREAT first impression when meeting someone new. Has this ever happened to you? Someone asks, “What do you do?” And your mind just goes…..blank? Having an elevator pitch saves us from those types of awkward or embarrassing situations.

When we have a polished and professional elevator pitch, we also set ourselves apart from our competition in a BIG way. It’s one thing just to say, “I’m a realtor”. But it’s more important to tell more to engage conversation. Being able to clearly and concisely describe what we do allows us to show that we are truly professional. We’re not fly-by-night business people, but that we can easily explain what we do. We can get the other person’s attention MUCH easier. We are respecting their time by being concise. It’s a conversation starter.

Smallbizlady: What are some common mistakes professionals have toward elevator pitches?

Barbara Lopez: Not knowing what to say. Resulting in “flying by the seat of their pants”. Which is never the best impression. Also, thinking they have to list everything that they have to offer. That’s not the best thing to do, because it can be overwhelming. Some people also get anxious when it comes to pitching to entire groups at once. Speaking to a group in a round-robin scenario is basically public speaking. And that can add a lot more pressure or anxiety.

Smallbizlady: What are some goals people should strive for when it comes to their elevator pitch?

Barbara Lopez: It’s best to keep these four in mind: 1) Be clear and concise. People want to know what you do in the shortest amount of time possible. 2) Make a great first impression. Deliver it well, so that the person continues the conversation. 3) Stand apart from your competition. Don’t just be pegged as someone in your industry. Be the best in your industry. 4) Attract them to want to know more. Again, it’s just a conversation opener, so have a call to action to move the conversation forward.

Smallbizlady: What are the critical components of an effective elevator pitch?

Barbara Lopez: It basically boils down to 4 key points that other people WANT to know about you. 1) What problem or pain point you solve for people. 2) How you solve it. 3) Why you’re different from your competition. 4) How they can learn more about you and/or your service or product right away.

Smallbizlady: Is it really that simple?

Barbara Lopez: Yes. The key is to focus the elevator pitch on YOU and not so much on your company/product/or service. You want to position yourself as the expert or specialist when it comes to the problem you solve. In networking, people want to connect with people, not businesses. So it’s important to introduce yourself as the person to go to when they have that problem. Or when someone else has that problem.

Smallbizlady: Where are some places professionals can use their elevator pitch?

Barbara Lopez: Most people think it’s strictly for networking. But there are so many other places you can use it. Especially since it’s such a concise message about what you do and offer. You can use the whole elevator pitch or even just parts of it in other areas of your marketing. The back of your business card is great. That way you’re sending people off with your pitch after they’ve just met you. On your outgoing voicemail message. That builds confidence when people call, to know you’re going to help with that specific problem. On your website – especially your About page. In your social media profiles. As a starter for a sales letter or introductory email.

Smallbizlady: What is the biggest piece of advice you can give professionals who don’t have an elevator pitch?

Barbara Lopez: Be prepared. Take some time to focus on at least a 30-second elevator pitch. You’ll feel much more comfortable and confident at networking functions. And in your daily travels. It can make a huge difference in the first impressions you’re making. After all, you never know when you might be speaking to your very next customer.

Comments { 5 }

Working With The One You Love

by Melinda Emerson on February 15, 2010 in 10 Things Lists, Mompreneurs, Pink Slip Entrepreneurs, Solopreneurs, Women in Business, Your Small Business

When you are first starting out in business, you will need help. Good help is especially hard to find when you have very limited resources. Other than interns, you may be forced to look around your personal network to see if you have any friends or family that can jump in and help you build your new enterprise. One of the most obvious helpers that may jump out to you is your spouse. But working with the one you love can be a slippery slope. If you drive each other crazy with simple household work, it’s probably not a good idea to work together. There also are those who believe that you should never hire someone you can’t fire. Why? If you fire your spouse you could ruin or severely damage your marriage.

Relationships and certainly marriages are hard work every day without adding the complications and stress of working together in a start-up business. My husband and I worked together in my first business Quintessence Multimedia for four years—so I have perspective on this subject.

Whether you go it alone or work with your sweetie… it’s a challenge. One of things that you need to do if you decide to work together is really understand each other’s best skills and work styles.

I am a morning person, who is a hyper Type-A, task master. I make lists and mow down the list daily. My husband is a corporate MBA, six sigma, sales manager, and a procrastinator. We annoyed each other every day, before we even got to the office. We drove to the office together, and were late most days because my husband was usually running late. I found myself sitting in the living room, waiting silently and getting more upset by the minute. One of the things that really helped us was seeking out mentorship from an older husband and wife team who had an office in our building. Once they suggested that we drive separate cars to work, that problem was solved.

One of the critical decisions that need to be made if you are working with your spouse is whether you are going to be equal partners, or if one of you is the boss. Defining this dynamic upfront – and communicating it – is essential. There’s a big difference between being a partner and being a key employee. This especially comes into play when handling disagreements about the business.

Ladies–this is a big issue for you if you started the business, and your husband later joins the business. Some men really can’t handle being a key employee, and may assert themselves like they are the boss.

The long term viability of the business and the marriage are intertwined. Resentment from this dynamic can really spill over into your home life. When you are personally invested in your business; it’s hard to not take a bad day in your business home with you at night.

So How Can You Avoid Having Your Work-life Ruin Your Home-life?

Here’s SmallBizLady’s 10 Rules for Working Well With Your Spouse.

Have clearly defined roles at work, and stay in your lanes.
Regular date nights (weekly if possible)
Drive separate cars
Have separate offices (and separate assistants–if you can afford it)
Have clearly defined roles at home, too
Have regular meetings to air out disagreements
Have separate interests outside of the business
Make decisions based on what’s best for the business
Be accountable to each other (regardless of who get the final say)
Seek out other couplepreneurs to get advice and support.

A great husband and wife business owner team, Donna Maria Coles Johnson her husband Darryl Johnson inspired me in part to write this blog post. They lead the Indie Beauty Network http://www.indiebeauty.com. I interviewed them last year about being successful couplepreneurs.

Do you have a rule or suggestion for how to work successfully with your spouse?

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:

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

Comments { 12 }

From Product Idea to Business Owner

by Melinda Emerson on February 11, 2010 in Before You Start, Branding & Marketing, How to Start, Q & A Interview, 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 post is excerpted from my recent interview with @SandyAbrams author, of Your Idea, Inc. and CEO, Moisture Jamzz, Inc. founded in 1993 around her signature moisturizing glove product. Sandy built Moisture Jamzz, Inc. from scratch into a company grossing millions without a business degree. For more information log onto http://www.yourideainc.com.

Smallbizlady: After you have researched the competition, if you still feel that your product has enough merit to compete, how do you move forward?

Sandy Abrams: You need to bring the product to life! The first step to make it real is to move it from your head into reality. Draw it, write its description, write down who would want the product and why they will want/need it. What solution is it providing? Somehow when you take pen to paper, it makes it real and then you have something to work with. It’s tangible now.

Smallbizlady: Now that the product seems “alive,” how do you actually know the marketplace will welcome it?

Sandy Abrams: Do your own market research. Talk to local store owners (you don’t have to give away your complete idea. You can talk in abstract form). Talk to friends and family; get feedback. Talk to those who like and/or use the marketplace’s current product and ask them if they would rather have your type of product. You may get some interesting constructive criticism that you can implement.

Smallbizlady: Would it help to go to an industry trade show at that point?

Sandy Abrams: Yes, I think it would help to walk a trade show within that industry and see what is happening, what the buzz is. You will be exhibiting at this show at some point, will you be able to compete, stand out enough? You can read the trade papers, always available at the trade shows. In the trade papers you may find some sources for manufacturing.

Smallbizlady: If after all the research and marketplace investigation you feel your product is still needed, what’s next?

Sandy Abrams: You need to think about Intellectual Property Issues. That is protecting your product with patent (if necessary), trademarks and possibly copyrights. You need to think about what you want to name your product, your company, your website and look into “owning” them with patents, trademarks or copyrights.

SmallBizlady: How do you know what kind of protection your product will need?

Sandy Abrams: I have some examples in my book, Your Idea, Inc. Personally, I find IP (intellectual property) very interesting! My husband is a trademark lawyer and he has taught me the importance of protecting your product. A great starting point full of information is www.uspto.gov. That website is very informative and user friendly. I also recommend a consultation with an IP attorney once you have learned the basics. Protecting yourself in the beginning makes your foundation for business solid.

Smallbizlady: When would you recommend actually setting up the business?

Sandy Abrams: After you have done all of your market research, IP research and think you will be moving forward to a manufacturer. Then its time to set up your business and market your product.

Smallbizlady: What exactly do you do first to set up the business?

Sandy Abrams: You need to take care of 2 things right away: a DBA form, aka Doing Business As or fictitious name. So that you business has a legal name, so you can open a bank account and conduct business under that name. This information needs to be published in newspapers for a few weeks before you will receive your official documentation.

Smallbizlady: Once you have the DBA and can conduct business, what’s the second thing?

Sandy Abrams: You need to get a resale license. This license will allow you to purchase materials for your product at the wholesale level and resell them to retailers so that they can sell them to consumers. Once you have both the DBA and your resale number you are a legal business entity and can buy and sell. I recommend services like LegalZoom.com to handle these forms for you. It saves a lot of time and they are reasonably priced services.

Smallbizlady: Once you are officially set up with those issues, what’s next?

Sandy Abrams: You need to set up your office so that you look like a real business. You want to look just like a business that may have 10 employees, not just yourself. With today’s technology, this is really simple, fast and not too costly. You need to get yourself a business phone number, fax number and voicemail. I recommend eFax and eVoice services. Set up even a basic website for now, even just with your contact information. Just something to add credibility. Get some business cards, letterhead. With these things in place, you can communicate professionally and have the façade of being a big business.

Smallbizlady: How do you know if what you are doing is the “right” thing?

Sandy Abrams: There is no right or wrong way on this journey. Every entrepreneur took a different path to the marketplace, and you will have your own unique path based on your own research, connections and life experience. That’s the beauty of being an entrepreneur, there are no set of rules to follow, no requirements to join “the club.” You will learn as you go.

Smallbizlady: Do you have any final advice?

Sandy Abrams: Don’t get overwhelmed in the beginning stages, zoom into the smaller picture and take small steps. It makes it more manageable and soon enough you will see tangible results and feel confident in continuing to grow.

Disclosure: I was sent 3 books to review and give away on Twitter in advance of this interview being conducted.

Comments { 13 }

Is Everybody Your Boss?

by Melinda Emerson on February 8, 2010 in Customer Service, My Recommendations

The good thing about being an entrepreneur is that you get to be your own boss. The bad thing about being an entrepreneur is that every client is your boss. When you have a job, you generally have one boss, in business every client is your boss. You are not working for a raise; you are hoping to get a long-term opportunity. Anyone will buy something once; you want your client to buy over and over again — from you.

So how do you manage your new bosses? Customers come in three types: those that know exactly what they want, those that know only what they don’t want and the dream client who looks to you for your expertise to solve their business challenge. The dream client comes along two to three times at most in any business. So be sure you are prepared for client option one or two. No matter which kind of client you have the best thing that you can do for your client is carefully manage their expectations. Here are some standard practices you should develop for client management.

Develop a detailed project plan
Create a listserv for all key players involved in the project.
Over communicate with weekly status reports
Anytime there’s a meeting or conference call immediately follow-up with an email recapping the conversation and any action items and delivery dates.

If your client makes a request that changes the scope of a project, never say no. Just explain to the client how this new request will add to their budget and change the delivery timeline. Be careful not to act like you are not flexible. Clients pay for convenience and to have problems solved. Clients will change their mind, especially those that do not know what they want. You must make sure your fee is high enough to include covering these costs. Most importantly, never show your clients that you are overwhelmed or frustrated. Be aware that clients’ staff may sabotage you, too.

So what do you do when there is a problem? When you are struggling to communicate a roadblock that your client has created, never communicate about a problem in writing. Request a phone conversation or a better option… which is a face-to-face meeting. You can’t communicate intent in writing. Talking directly to your clients is always the best way to solve any problem. If you or your subcontractors are the problem, it is best to communicate with the client about any delays or mishaps before you miss a deadline. These are the most difficult conversations to have, but when you are the boss, you have to take responsibility for any mistakes or problems and — make it right for the customer.

So how do you make it right for the customer? It depends on how big of a mistake you made. Here are a few suggestions:

Respond immediately with an action plan
Ask for another chance to do a project or ship additional merchandise.
Offer a heavy discount on future purchases
Offer to refund all or a portion of your fee.

Your goal should be to make sure your client walks away thinking you did everything you could to fix the problem. A happy client is a repeat customer who will be an ambassador for your product or service.

Do you have any suggestions for making nice with customers? Leave me 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 in12 Months is scheduled to be released by Adams Media in March 2010.

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

Comments { 8 }

Go From Employee to Entrepreneur

by Melinda Emerson on February 4, 2010 in How to Start, 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 Kim Beasley is the owner of two small businesses, and the author of Your Passionate Business, @passionatebiz or @KimBeasley on Twitter. Kim knew at an early age that she wanted to run her own business and, after earning two degrees and working in Corporate American for almost 15 years, Kim decided it was time for her to start her own business, one is Your Passionate Business which helps others start their own business. The second is Pro Membership Services, specializing in developing business or membership websites using WordPress or Drupal. For more information: http://kimbeasley.com/about/

Smallbizlady: What are some important things that a startup business owner need to keep in mind when starting their business?

Kim Beasley: Be open to change, which means that you should be flexible when developing your business.

Don’t be afraid to ask questions to those who are experts or leaders in your chosen industry.
Use social media to grow your network of business associates and clients.
Develop a solid financial plan that you continuously follow.
Always have a marketing/advertising plan in place to help grow your business.

Smallbizlady: How much time should be invested in researching a chosen business industry?

Kim Beasley: However much time is needed for you to become comfortable with your choice for an industry. Don’t be too hasty when determining which industry will be your niche. Make sure that you are not only comfortable with your choice but also ready to do what it takes to be successful in your industry.

Smallbizlady: What is your philosophy about starting a business?

Kim Beasley: Your skill + your passion = your passionate business. When starting a business, it is important that you center it on a skill you are passionate. Understanding that your passion for your business is what will help keep it going.

Smallbizlady: How do people know if their passion is profitable?

Kim Beasley: Research, research, research! Starting with research to see if your passion can become a viable business is the first step in determining if it can be profitable. If you find that it is not, see if you can combine it with another skill you are passionate about to see if the combination can be profitable. For example, writing can be combined with research or cooking with writing a cookbook and so forth.

Smallbizlady: What are the top mistakes unemployed people make when starting a business?

Kim Beasley: Not doing their due diligence regarding research, not setting up a firm financial foundation and not having a business mentor. It is very important that at least these three things are in place in order to create a solid start to your business.

Smallbizlady: What are some of the marketing avenues that are good for startup business owners?

Kim Beasley:

Sharing information about your business via social media websites like Twitter, Facebook or LinkedIn.
Trading links with others to build a solid “backlinks” process and placement.
Applying good SEO (Search Engine Optimization) techniques to your website such as research what keywords will help drive traffic to your website.
Research websites such as Craigslist.org to see if sharing information about your products or services will be beneficial.

Smallbizlady: What advice would you give to other startup business owners?

Kim Beasley:

Stay focused on the important matters.
Don’t let issues stop you from reaching your goals.
Constantly improve processes.
Build a virtual team that is strong, understands your business, and meets your needs.
Outsource those tasks that you can delegate for someone to do.

Smallbizlady: How important is it to have a strategy plan in place?

Kim Beasley: A business without a plan is planning to fail. A strategy plan is important because it gives you a guideline for where you have been, where you are and where you want to go. Business owners should always have a living strategy plan that will guide them as they manage their business.

Smallbizlady: How do you know where to locate your office (in-home or office building)?

Kim Beasley: It is important that you determine your location immediately when developing your business. If you find that you will have customers visiting your office on a regular basis then it might be better to have an office that is away from your home. But if most of your work can be down from your home then save yourself the overhead cost of having an external office and just setup an office in your home. Make sure that your home office is a dedicated space that is not shared. This is important for tax purposes.

Smallbizlady: Is it important to have a business mentor?

Kim Beasley: Yes it is important to have a business member because they can help guide you around the “hiccups” that business owners can experience when in the “startup phrase”. When determine who will be your business mentor, make sure that you hire someone who is knowledgeable about your industry. Don’t be afraid to ask them for references so that you can check to see how they have helped others to become successful.

Smallbizlady: What type of people do you need to have on your business support team?

Kim Beasley: The type of people you have on your business support team can vary. Just make sure that as soon as you can, hire a Virtual Assistant (a VA can help mange your business), graphic design (for branding), web design (online presence), or bookkeeper/accountant (manage finances). If you feel comfortable outsourcing these services, do so because it can help free up your time so that you can spend more time developing your business.

Comments { 5 }

Why I Love Twitter

by Melinda Emerson on February 1, 2010 in Branding & Marketing, Grow Your Business, How to Start, SmallBizChat, Social Media

Twitter is a social networking site that is a micro-blogging platform. It is designed for people who need the bottom-line and not much else. In short, if you can’t say it in 140 characters or less, forget about it. Twitter demands that you “hit it and quit it” as James Brown would say.

Can small biz make money from Twitter?

I got on Twitter in 2008 and instantly I had access to anyone I wanted or needed to talk with. I love Twitter because anything I need for my business. I can find on the social networking site. I am able I am going to give you examples of how Twitter has helped me enormously in my business.

I am a book lover and one of the great things about Twitter, is that ability to contact just about anyone who uses it. One of the best marketing books I’ve read in recent years is The New Rules of Marketing and PR by David Meerman Scott. I was so moved by his book I wanted to contact him. Email wasn’t fast enough. So I went to Twitter, found his name @dmscott then sent him an open tweet and got an instant response. I now communicate with him regularly.

Another author Twitter experience was my interaction with @thewritermama. She wrote a great book Get Known Before the Book Deal, which I really enjoyed as I was getting my first book completed. Her book explained how the publishing industry worked and how to build a marketing platform, which very was helpful at the time. I reached out to the author Christina Katz on Twitter to tell her how much I liked her book in an open tweet. She was so moved by me reaching out to her, she offered to read an early draft of my forthcoming book, Become Your Own Boss in 12 Months, and write a blurb for the cover.

I was in need of a new assistant and was far too busy to hire one, (which of course is why I desperately needed one). Every Wednesday on Twitter I host #SmallBizChat which is a Tweetchat (or Twitter Talkshow as I like to call it) to help emerging entrepreneurs get answers to their questions as they start and grow their small businesses. After the first, one or two chats, a woman approached me on Twitter and offer to produce a weekly transcript of each chat. This was great for participants and anyone who missed it. After she did a few transcripts we built a relationship and now Sonia Schenker @yourjobmyoffice is my virtual assistant and my right hand.

Twitter has grown my @SmallBizLady coaching brand. I have gotten several coaching clients and hundred of business contacts. I have also been invited for at least five speaking engagements, numerous blog talk radio interviews, and to do guest blog posts on several major small business websites just because of the content, resources and blog posts I tweet out regularly on Twitter.

Twitter is also an excellent resource for vendors and quick questions. In fact the header for the blog you are reading with designed by @paintermommy who approached me on Twitter to offer her services. There have been many days when I needed an answer to a technical question about WordPress or a media contact at Good Morning America and my Tweeps rush to my aid with answers in minutes.

Twitter has a culture which you should learn before you dive in, but once you find your niche it’s an amazing resource to grow any small business.

I often get asked, “Do people really make money using Twitter or are they just talking about what they had for breakfast? Absolutely, that is what I use Twitter for.

Do you have a Twitter story to share? I would love to hear it so please leave me 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:

For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog 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 Start a Business that Works. is scheduled to be released by Adams Media in March 2010.

Comments { 16 }