Archive for the ‘How to Start’ Category

One of the great things about having a small business is that you get the opportunity to learn every day.  Hopefully you are not learning too many expensive lessons. I thought it would be helpful to share a few important lessons that I have learned over my years in business so that you can benefit from my mistakes.  Now, there are plenty more where these came from, but here’s what I would call my top 5 entrepreneurial lessons.

Be early; On time is already late. You need to be 15 minutes early everywhere you go.  If you are going to a networking event, the cocktail hour is the event for you.  Once the event starts you can only network with the 9 other people at your table. If you have an appointment and you only give yourself enough time to show up right on time you are asking for something bad to happen. There could be traffic or you could have a tough time parking or maybe you’re not sure of exactly where the office building is located. Being late is deadly when making a sales call.  Always be early.

Don’t take a “NO” from someone who can’t say “YES”. Gatekeepers are there to protect the time of the big boss.  Do everything you can to get to the decision maker, but be respectful about it. No one responds well to being talked down to. My favorite technique is to say, “I’m returning their call.”  Many times mid-level managers or gatekeepers will try to block you. Make sure you have a relationship with more than one contact at a company you are targeting.  If you can, turn the gatekeeper into a friend. Give them some attention and try to make a personal connection. When you are successful, they’ll help you get to the people you really want to talk to you.

Never start work without a signed contract. As small business owners, sometimes we are so enthusiastic that we’ll take people at their word and start work before we get a signed agreement.  I have even delayed a vacation on someone’s word – thinking I needed to be around to do work – on a contract which never materialized. Be willing to talk to everyone, but do not spend on money on inventory and materials, and certainly don’t change your travel plans until you have a signed contract and a deposit.   

Always know your next hire. I once had a mentor tell me that even your best employees will leave you someday, and when you least expect it. You should always have a Plan B person in mind that you would bring in for every key position in your small business.  

Always know how much profit is in every deal. As small business owners we have a tendency to focus on revenues—which is important, but I would much rather you focus on profits.  I believe that if a deal is not making you money it doesn’t make much sense or cents. You should know how much money you’re making on every sale or contract.  There will be times early on in your business when you need to do work at cost so that you can get a certain client on your roster, but don’t make a habit of doing that.  Also make sure you calculate a percentage of your overhead and administrative costs in your pricing as well.  Every customer should pay a percentage of what it costs you to run your business.

Do you have any lessons to share about what you’ve learned in business? Please leave a comment.

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 was released in March 2010.

It’s more than a notion to launch your own business. Nowadays it’s common for folks to leave a job via layoff or early retirement and jump right into starting a small business.  Some become small business owners because they always wanted to do it…and others are hanging their shingle out of necessity.  Regardless of how you found your path to entrepreneurship, you need to keep these 8 tips in mind as you Become Your Own Boss.

1. Figure Out What You Want Out Of Life. It’s just like when you are driving a car – places are so much easier reach when you know the route. Take the time to map out a plan for a successful life. Get clear about what will make you happy. In order to have a successful business, you need a life plan before you ever write a business plan.

2. Get Your Money Straight. Many businesses do not get off the ground because of too many financial obligations in a business owner’s personal life. You need to be prepared financially to go without a paycheck for a year or two in order to make your business dream a reality. Then you’re going to need money to run your new business. You must consider whether you can afford to become an entrepreneur.

3. Evaluate Your Business Concept. Many people who are struck by the entrepreneurial bug have more than one business idea. Make sure that you don’t just follow the idea you love the most. Make sure there’s a real market for your product or service. There’s a big difference between need, want and willing to pay for. I’m all for finding your passion and making it a business, just make sure your passion has a profit center.

4. Get Yourself a Kitchen Cabinet of Advisors. I think you need a fan club of people who believe in you and will tell you the truth about your business ideas. This should be a 3 to 4 people, including an existing entrepreneur, a friend who’s a potential customer, a retired executive who has a rolodex that can assist you and a lawyer or accountant that can give you advice that you otherwise probably couldn’t pay for. I call this group a kitchen cabinet of advisors because they will usually work for food.

5. Spend Time Building Your Network. In business your network is your net worth. People do business with people they like and know. If you are known more internally at your job, you must get out there and start networking at least six months before you start your business. Your first customers will be people who know you or referrals from those same people.

6. Know Your Niche Customer. In this new economy, it’s more important than ever to have a niche target market. Niche to get Rich is a saying, but it is true. The more specialized your target market, the better for your business. You should be able to see the face of your customer and write a story about him or her. Even if you’re using social media you need to know who you want to talk to before jumping out there.

7. You Need a Marketing Plan. Use your marketing plan to clearly identify that there’s a market for your product or service that you can actually reach. You need to figure out who’s buying and why. You also need to develop a signature move or signature service as you are developing your marketing plan. If you can answer those simple those questions you should move forward with your business plans.

8. You Must Have a Business Plan. You must plan for success, it will not just happen to you. You need a business plan to give yourself a road map to run your business. Do not treat your business plan like a historical document. Your first business plan is your hypothesis of what you think will happen in your business. Your assumptions will change once your business is exposed to the market place. In the early years of your business, you should review and update your business plan every 2-3 months to make sure your business is on the right track. 

Do you have any more tips on How to Become Your Own Boss?

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Melinda Emerson “SmallBizLady” is a Veteran Entrepreneur, Small Business Coach and Social Media Marketing Expert 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 also publishes a resource blog on small business best practices at www.succeedasyourownboss.com  Her first book, Become Your Own Boss in 12 Months was released by Adams Media in March 2010.