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How to Be Successful in Business #SmallBizChat QA

by Melinda Emerson, #SmallBizChat on February 2, 2012 in Grow Your Business, How to Start, SmallBizChat, Uncategorized

Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9pm ET. This is excerpted from my recent interview with retail and fashion pioneer Liz Lange @lizlange. In 1997, out of a one-room office, she created Liz Lange Maternity, changing forever the face of maternity fashions. A decade later in 2007, after dressing every major pregnant celebrity, forging licensing deals with Nike and Target (today, Liz Lange for Target is the exclusive maternity department at all Target locations), and opening three flagship Liz Lange boutiques, Lange sold her business though she continues on as the face of that brand. In 2010, her first ever non-maternity clothing collection, Completely Me by Liz Lange, debuted exclusively on HSN. She is the co-founder of the popular woman’s shopping site, Shopafrolic.com.

Smallbizlady: How and when did you have the ‘Ah ha’ moment that led you to launch your first business?

Liz Lange: My Ah ha moment came back in 1997. I was newly married and although I hadn’t yet had my children – pregnancy was definitely on my mind (today my son is 13 and my daughter is 11). After having worked at Vogue, I had left to apprentice for a struggling fashion designer. My friends starting getting pregnant and they would come to our offices to buy clothing. I would say to them, why come here, you should shop at maternity clothing stores but they all said that they could find nothing at traditional maternity clothing stores. Instead, I noticed that they were buying “regular” clothing in big sizes and altering it to make it work. And in our offices they were squeezing themselves into anything that had a bit of stretch in it.

This led to my double Ah ha moment: one) pregnant woman looked better, sexier, more stylish and ironically smaller when squeezed into something stretchy and fitted instead of the tent-like maternity dresses that were typical at that time and two) pregnant women were spending and shopping (they needed to – after all nothing in their closet fit them anymore) but they didn’t like the maternity clothing being offered. I didn’t consider myself a fashion designer so I went to the designer I was apprenticing for and told him that he needed to do a maternity line and that it would turn his business around. But he hated the idea. I found that I couldn’t get the idea out of my mind. I finally realized that if I didn’t create the maternity clothing that I was envisioning and someone else did that I wouldn’t be able to forgive myself. And so I launched Liz Lange Maternity.

Smallbizlady: How did you land your very first big customer?

Liz Lange: My first customers were my pregnant friends. But dressing celebrities really put me on the map. Whenever I heard a celebrity was pregnant I would reach out to them through their assistant, publicist, manager. My first big customers were Cindy Crawford, Terri Hatcher and Bobbie Brown.

Smallbizlady: What kind of money did you need and how did you get it to start your business ventures?

Liz Lange: I started very small. At the beginning I did everything made to order so that I didn’t have to invest in inventory that I may or may not have been able to sell. I borrowed about $10,000 from my parents. I had a phone so that people could make appointments with me to see my designs and a fax machine to fax the factory that was filling orders for me, one at a time.

Smallbizlady: You became a mom while running your business, how did you handle being a pregnant entrepreneur? (other than being a great model for your maternity clothing line LOL)

Liz Lange: Pregnancy did NOT slow me down. I worked until the day before I gave birth to each of my children and was back within a few weeks. After all, my business was my baby too!

Smallbizlady: Pricing is always a challenge for business owners. What’s your advice on getting it right?

Liz Lange: It’s hard to give general advice about pricing. You need to make money and get your margins right. You need to have a feel for what the market place will allow.

Smallbizlady: What’s the biggest struggle you’ve encountered and how did you overcome it?

Liz Lange: Running your own business is filled with highs and lows and to me that is exhilarating. Definitely post 9/11 was challenging. The world was not interested in buying high end maternity clothing anymore! I signed a licensing deal with Target and together we produced Liz Lange for Target which has become the exclusive maternity clothing offered at all Target locations and Target.com. Its success helped bring success back to my high end business too

Smallbizlady: You are a self-made millionaire entrepreneur. How do you stay grounded and humble?

Liz Lange: I think being self-made is what keeps one humble and grounded. I am so lucky to do what I do and I love my customers and my life, my family and friends. They definitely all keep me grounded!

Smallbizlady: How do you measure success?

Liz Lange: Well there are so many ways to measure success. The most obvious in business is financial. I felt successful when I was able to open 3 flagship retail stores (when I sold the business the new owners chose not to keep the stores) but for many years I had boutiques on Madison avenue, Beverly hills and Long island. And signing licensing deals with Nike and Target, dressing tons of A-list celebrities, that all made me feel successful. But maybe what has made me feel most successful is the letters I get from women telling me that I made them feel pretty or sexy or confident during a time that they didn’t think that was possible.

Smallbizlady: What’s your must-read resource for small business owners and Why?

Liz Lange: I love reading books by entrepreneurs whom I admire. Some of my favorites: Phil Knight’s Just Do It, Howard Schultz’ Pour Your Heart Into It, Tony Hsieh’s Delivering Happiness, Mary Wells Lawrence’s A Big Life in Advertising.

Smallbizlady: What’s your biggest business goal over the next 12 months?

Liz Lange: I honestly never set goals, I just do the best I can every day but…I launched a new line, my first ever NON maternity line of women’s clothing a little over a year ago. It is exclusive to HSN and it’s called Completely Me by Liz Lange – I want to see that line really take off. I want to see my fashion/shopping e-newsletter, shopafrolic.com grow and I am working on a book about being an entrepreneur.

Smallbizlady: Complete these sentence: If standing on a rooftop facing crowds of aspiring or struggling small business owners, I would shout:

Liz Lange: “Shut out the naysayers! The truth is until someone does something new NO ONE thinks it’s a good idea. Just do it!!!”

If you found this interview helpful, join us on Wednesdays 8-9pm ET follow @SmallBizChat on Twitter. Here’s how to participate in #SmallBizChat: http://bit.ly/S797e

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

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine recently named her one of the Top 20 women for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)

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Who’s on #SmallBizChat – February 2012

by Melinda Emerson, #SmallBizChat on February 1, 2012 in SmallBizChat, Uncategorized

Each week as Smallbizlady, I conduct interviews with small business experts on my weekly Twitter talk show #SmallBizChat.

Here are the upcoming guests for February 2012…

Feb 1st Retail Pioneer @LizLange How to Be Successful in Business

Feb 8th @DeborahShane How to reinvent your Brand
Feb 15th @DarnyelleJervey How to Monetize Your Message
Feb 22 @Taxmama Eva Rosenberg Getting your Small Biz Taxes Together
Feb 29th Stephanie Chandler @Bizauthor How to Own Your Niche

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How to Build a One-Person Franchise Business

by Melinda Emerson on November 29, 2011 in Branding & Marketing, Grow Your Business, How to Start, Uncategorized

The topic of equity isn’t exactly what I’d call, “top of mind,” with most of the prospective franchise owners that I work with as an advisor. Most of their energy is focused on things like potential locations for the franchises that they’re considering, or other minor details; like how much they’re going to make as franchisees. Equity? Who needs it?

Well, if you’re looking at becoming a franchise owner, I think that you need it. I’m convinced that you’re going to want something to show for all of your hard work as a small business owner, not to mention the up-front investment you made to get your business up and running. And you’ll actually have about 10 years to figure out how to come out a winner.

That’s because in the franchise world, most franchise agreements, (contracts) are 10 years in length. In most cases, you’ll have an opportunity to renew your agreement, so you can stay in business. Or, you can sell it. (You can usually sell your franchise business before the 10 year contract period is up. Make sure you know going in what your options are.)

This is Easy to Visualize

If you end up investing in a franchise that requires you to have a physical location, like a fitness franchise for example, in 10 year’s time you’ll probably have multiple locations. (That should be your goal.) So, if you kick back for a moment, put your feet up, and close your eyes, you should be able to easily visualize the 2 or 3 stores that you own. Are you with me so far?

Now let’s say that you’re getting towards the end of your franchise contract. Let’s also say that you’re approaching 60 years old, and are starting to think about other things…..like a beachfront condo somewhere, for example. Maybe you’re thinking about travelling. You’re actually having lots of interesting thoughts these days….and they all seem to have a common thread; they don’t involve you working!

Sell! Sell!

That’s all you have to do as a retiring franchise owner. Just sell your franchise business. I didn’t say that it would be easy…but, it can be done.

My friend Carol Roth shared 6 things that you’ll need to do to get your business ready to sell over at another friend of mine’s highly rated small business blog. It’s all about the preparation, and it needs to start when you first purchase your franchise. That means that you need to start thinking about your exit strategy the moment after you sign your franchise agreement, and send in your check for the franchise fee. Most franchise owners don’t do this. Go ahead; be the change.

If you go into your new venture with an “investor’s” mindset, meaning that you want to have a real return on your investment, and are able to keep that mentality front and center during the term of your agreement, you could be rewarded handsomely.

For One-Person Franchises

If you’re the owner of a franchise business that is home-based, or office based, you’ll have to do things differently though, to prepare it for sale. As John Warrillow, the author of “Built to Sell,” writes;

“The number one mistake entrepreneurs make is to build a business that relies too heavily on them.”

Now, let’s substitute “franchisee” for entrepreneur, so that I can show you what you’ll need to do if you’re a one-man or one-woman show, and you’d like to have an opportunity to create equity.

The only way that you’ll be able to sell your one-person business is to take someone on as an employee, and teach them how to be The Owner.

Let’s use a coaching-type of franchise business as an example, since they’re very popular, and have the added bonus of becoming the next bubble that’s going to burst.

(The reason that business coaching franchises are going to bubble over soon, is that there are so many of them around that will be approaching the end of their franchise contracts soon, and most of these franchisees don’t have an exit strategy.)

The Model

For around $80,000, you can become the owner of a business coaching franchise. Your role as the franchisee is to call on small businesses in your geographical area that may be interested in your consulting services. Some of the services that you offer may include business planning, sales and marketing program implementation, inventory management…basically anything related to the operation of a small business.

If you can convince enough of the people that you’re calling on to sign on for your services, you can do pretty well. But, since most of your clients engage with you on a short-term basis, you must continue to keep your sales funnel full. That means that when you’re not doing your paid consulting gigs, you’re either calling on potential new clients, or attending business networking events in order to keep your name front and center with fellow small business professionals.

You’re the business. For the most part, your clients aren’t buying your franchise’s brand. They’re buying you; you’re unique personality…your skills. They’re also buying what others are saying about you, and how well you perform. That’s a problem.

Fixing The Problem

In order to make your one-person franchise business one that can be sold someday, you’ll have to start to slowly remove yourself from the picture. That means that you’re going to have to start hiring others that can do what you do. One great thing about the franchise model is that it’s so system-oriented; it’s fairly easy to train new employees.

You can add new employees at any pace you want; just have enough of them to have the ability to start making some choices. The choices that you’ll be making have to do with finding a buyer. That’s right; as soon you start bringing employees on, try to figure out which one could potentially buy you out at some future date.

Still using the example of a coaching franchise, if you do this right, you could have 3 coaches under you who are all building a client base, which includes a revenue stream…one that doesn’t only involve what you bring in.

A business with money coming in from several different sources is a heck of lot easier to sell.

If you do this right, which includes proper planning that starts the minute you officially become a franchisee, you’ll have a real shot at building equity in your franchise business that can come in the form of an official bank check that you can use for that beachfront condo.

About the author:

The Franchise King®, Joel Libava, is provides franchise advisory services to those interested in exploring franchise ownership. He’s frequently called on by the media for his no-spin
insights on the world of franchising, and he wrote a book that puts would-be franchise owners into the driver’s seat called, Become a Franchise Owner!

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10 Best How to Start a Small Business Websites

by Melinda Emerson on October 3, 2011 in Business Inspiration, featured, How to Start, My Recommendations, Uncategorized

Let’s face it– starting a small business is hard. There are lots of ways out here to fail in business. The secret weapon that I use for keeping my business strong is being a life-long learner. One of the ways I grow myself and keep my mind sharp is being a veracious reader. I read books, magazine, and a steady diet of business blogs and websites.

I scour the Internet each day, looking for articles, blogs, and actionable tips about small business success for my readers and followers. I thought I would share where I find the information that I often share, so you might build up your own online library of small business resources. There a few online resources out there that I think are the best resources on how to start a small business. Here are my 10 best picks for how to start a small business websites.

Entrepreneur .com. When it comes to educating entrepreneurs the first resource that comes to mind is Entrepreneur magazine. They have vast online resources including their business startup section, http://www.entrepreneur.com/startingabusiness/index.html. I also think they offer the most comprehensive how to start a small business information. They have how-to guides, startup basics, home based businesses, and sections on business ideas, financing and success story profiles. (In the interest of disclosure, I do write a monthly column for their sister website, SecondAct.com, but I was reading Entrepreneur long before that!)

Inc. Magazine has been educating small business owners over 30 years. They have an excellent series of how-to guides that cover everything from start-up to passing the business down to the next generation. One of my favorite sections is http://www.inc.com/tools where you can find templates for how to do just about everything from writing a business plan, to sales forecasting, to developing a job description

SmallBizTrends.com, is an excellent resource for small business owners. If you want to keep your business current. Regularly check out information on this site. Editor Anita Campbell is top notch and makes sure that she says on the cutting edge of the needs of small business owners. (Disclosure: I write blogs for this website on occasion.)

BlackEnterprise.com Black Enterprise magazine is my favorite small business magazine and their online resources for entrepreneurs are invaluable. While their content does not exclusively talk about small business ownership, they have great tips for college age business owners. They also have the Black Enterprise Small Business University which is free video training for small business owners available on their website. (Disclosure: I do write blogs for this website on occasion, and I am one of the instructors for the Black Enterprise Small Business University.)

Bplans.com This is a terrific resource for how to start a small business with a business plan. This free web site offers over 500 sample business plans that you can review for tips and insights. It is published by Tim Berry the creator of Business Plan Pro software, who is the Founder and Chairman of Palo Alto Software. This site also offers terrific blog content from small business experts across the web. (Disclosure: I am an affiliate reseller of business plan pro software.)

SCORE.org is an online mentoring program for start-up businesses and seasoned entrepreneurs. SCORE is a nonprofit association dedicated to helping small businesses start, grow, and succeed nationwide. There are more than 350 SCORE chapters nationwide, and you can get face-to-face coaching for your business as well. SCORE is a resource partner with the U.S. Small Business Administration (SBA), and has been mentoring small business owners for more than forty years.

New York Times “You’re the Boss” Blog. I love this blog from the New York Times because for the most

part it’s written by small business owners for small business owners. They give it to you straight in this blog and I often find great stuff in the daily posts to start and grow a small business.

TheWorkatHomeWoman.com The Work at Home Woman website is a resource dedicated to helping women and moms fulfill their dreams of working at home and/or becoming self employed, while providing inspiration, motivation and support. I like this website because it offers woman business owners and mompreneurs tips especially for them in business.

Lau nchwhileworking.com One of the key things I preach about starting a business is that people should start a small business as a side hustle while still working their full-time job. This website launch while working is all about how to do just that. This website is dedicated to helping would-be entrepreneurs simplify your life so you can successfully launch and run a business while working full-time.

S ucceedasyourownboss.com This is my blog, and I provide valuable tips to start and grow a profitable and sustainable small business 3-5 times a week. I offer a fresh perspective on small business ownership with how-to articles, audio interviews, and video answers to your small business questions. Every Thursday, I also feature Q&A interviews with small business experts who are me guest on my weekly twitter talkshow #Smallbizchat. I also make the transcripts available weekly on the site. I am the bestselling author of Become Your Own Boss in 12 Months and Forbes magazine named me the #1 woman for entrepreneurs to follow on Twitter.

Businessinsider.com Here’s an honorable mention to this list: The business insider blog is a great blog for entrepreneurs. It’s not always about small business, but they provide great trend information that often affects small business owners.

Do you have any other website that you use for fuel in your small business?

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

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small businessexperts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine recently named her the #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)

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How to Launch Your Business While Working Full Time – QA with Tai Goodwin

by Tai Goodwin on June 23, 2011 in Uncategorized

Every week as Small Biz Lady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9pm ET. This is excerpted from my recent interview with #smallbizchat co-host and social media consultant Tai Goodwin @TaiGoodwin. Tai is one of the growing population of employedpreneurs: full-time employees who are also part-time entrepreneurs. As she began making her own transition from employee to entrepreneur, she realized a gap in the resources to support employedpreneurs. She founded Launch While Working (http://www.launchwhileworking.com) an online magazine and community for employedpreneurs. She is also the author of the upcoming book How to Launch Your Business While Working Full-Time. For tips about launching while working follow her @employedpreneur.

Small Biz Lady: You’ve coined a term employedpreneur…can you explain what that is?

Tai Goodwin: Employedpreneurs are hybrids – we are full-time entrepreneurs who are also part-time entrepreneurs. Some of us need the stability and benefits of a day job but refuse to give up the dream of being our own boss. Our PT biz is about finding a way to work our passion for profit using our 9-5 as fundraising to pay the bills

Small Biz Lady: Why do you think more people are taking this approach?

Tai Goodwin: The idea of having a side hustle or side business isn’t new – many of us know people or have that relative who fixed cars or did taxes on the side. I remember growing up, my father baking and selling pies and cakes every holiday, eventually catering weddings and special events all while working a regular 9-5 job. With the stability once assumed with a 9-5 job no longer a guarantee – wise professionals have started creating their own options. You have technology now that makes pursuing your entrepreneurial dreams easier. You can launch, manage and grow your business virtually. Just because you can’t escape your cube right now – that doesn’t mean you can’t launch a sustainable business that can scale over time.

Small biz lady: What are the benefits of launching a business while working full time?

Tai Goodwin: Having an income from your 9-5 job means you can carefully choose your clients and your projects based on fit and not solely on needing a payday. Skills and training from your day job can translate into practice and experience that can help you run your business. Working your business like a part time job allows you to build expertise and credibility if your passion is in a different field. You have time to work on your portfolio, get testimonials, build a showcase what you have to offer. And getting to do work you love – even if it is just part-time can recharge you if your day job is burnout central

Small Biz Lady: On the flipside what’s the downside of launching a business while working full time?

Tai Goodwin: First of all, there’s a huge time commitment – you are working in your business nights and weekends, your social life gets put on the back burner. When you have income coming in, you have to be careful not to over invest simply because you have your day job as a funding source. And for some the cushion of a day job delays the urgency of getting clients or creating a sustainable business plan. Another downside is the time constraints. Your opportunities for face to face networking during the day are limited. Not only that but the hours you have available compared to someone who is in this full-time means that it will take you longer to build your business. Continue Reading →

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Are you Google-able?

by Melinda Emerson on June 6, 2011 in Ask Smallbizlady, Become Your Own Boss Tips, Branding & Marketing, Business Inspiration, featured, Grow Your Business, How to Start, Social Media, Technology, Uncategorized, Your Small Business

google logo

If you’re ready for a midcareer makeover, you can get new clothes and a new haircut. But even more important, you must make yourself what I call “Google-able.” That means you need to create a smart social media footprint.

By day I work as a small-business coach, and I keep coming across amazing professionals with extraordinary credentials who want to build a consulting practice or establish themselves as thought leaders in their industry.

But here’s the problem: When I put their names in Google, I come up with nothing. No website, no social networking profile — not even a guest blog post. These people may have advanced degrees and impressive titles on their resumes, but there is no electronic evidence of their expertise and accomplishments. Since this has happened several times over the last few weeks, it dawned on me that I needed to help fellow midcareer folks understand this new paradigm.

Gone are the days of calling around to get the 411 on a potential business partner or new hire. These days, people do an internet search before you ever get a call about a new opportunity. Recruiters and corporate executives routinely conduct internet searches when looking for talent and don’t always advertise open positions. Many believe you don’t even exist if you don’t have a social media footprint.

Here are five essential steps to get started online.

1. Smile and click.

One of the key things you need prior to establishing yourself online is to get a professional headshot. Go ahead and spend money to get a good photo. It should be a smiling shot that is friendly. Even though you are communicating over the internet, people still want to see who they are talking to.

If you haven’t established an online presence yet, keep this in mind: You are using the skills you already know — how to communicate with people. Creating an online presence simply helps people find you. Think of it as your virtual business card, which is far more useful in 2011 than the paper variety.

2. Sign up at LinkedIn.

The first step to building your brand online is to stake your territory: One of the best moves you can make is to set up a profile on LinkedIn. Yes, you’ll also want to establish a Google profile and sign up for a Facebook or Twitter account, too. But LinkedIn is the most important.

“If you are looking to do anything in the professional world, LinkedIn is where you need to be. LinkedIn is the ultimate buyers’ market,” says Patrice Rutledge, author of Using LinkedIn.

Here are her top tips to make your profile shine on LinkedIn:

Add your profile and be sure to fill it out 100 percent. Your profile should use the appropriate keywords that your target audience would use to search for your expertise (including job title and certifications).
Use applications to enhance your profile (SlideShare presentations, Google presentations, portfolio display or box.net to add a resume).
A detailed company profile is important for a business owner. Be sure to link it to your personal LinkedIn profile.

3. Create a website.

The next thing you can do is register your name or your business name as a website domain and create a simple one- to five-page website. If you are interested in establishing yourself as a thought leader in your industry, adding a blog to your new website is a great idea.

I realize that this might sound intimidating, but it doesn’t have to be. You can register your own domain name and then hire a virtual assistant who specializes in social media to help you set it up. (By the way, a virtual assistant is an entrepreneur who assists business owners and busy people with time-consuming tasks, allowing them more time to focus on profit-generating activities.) With a few basic lessons, and time with tutorials, you can get going in no time.

4. Sign up for a Facebook account.

Cathy Larkin, founder of Web Savvy PR, conducts hands-on workshops to teach baby boomers how to use Facebook. Her clients often want to know what to talk about on their Facebook Fan Pages and how to create a good profile.

“I show people how to use Facebook rather than telling them how to do it,” Larkin says. “It’s all about figuring out what your intended audience wants to hear, learn or know about.”

She offers the example of a real estate agent who posted information about how to clear two feet of snow from your roof, which is much more creative — and useful — information than simply listing houses for sale.

Here are Larkin’s three tips for using Facebook Fan Pages:

Consider your keywords. Your domain name for your Facebook Fan Page should include keywords that people will use to search for you online.
Set your Info page as your default page. If someone visits you on Facebook, they will quickly get a sense of who you are and what you do (and hopefully fan your page).
Upload photos and online videos. It’s a great way to promote your products or services and add rich content to your Facebook Page.

5. Don’t forget Twitter.

Thomas MacEntee, the 48-year-old founder of High-Definition Genealogy, says its best to think of social media as a garden you have to tend.

Laid off from his tech job in Chicago in late 2008, MacEntee reinvented himself as a family historian — helping people investigate their family trees — and utilizes social media to connect with clients. It took MacEntee about a year to build his business.

He’s been so successful mastering the intricacies of Twitter — the free service that allows users to share information in 140 characters or less — that he now teaches a social media class for baby boomers called “Twitter: It’s not just what I had for breakfast anymore.”

He says the key to Twitter is giving as much as you get, and listening as much as you speak. He says some boomers have a problem with these concepts. “They think they are giving away their work for free, but it’s part of building yourself as a brand and an expert,” says MacEntee.

Here are some action steps to get you started building your online brand.

Decide what you wish to accomplish before using social media. Are you looking for a new work opportunity or simply want to connect with others who share a special interest or expertise?
Figure out who your audience is and where these folks hang out online. (You want to be as specific as possible in targeting your efforts.)
Create your LinkedIn account immediately. Add a great photo, import your contact database from your e-mail and join one group.
Expand to your own website, Facebook and/or Twitter.
Start developing a list of potentials blog topics. It’s a good idea to developed an archive of blog posts at least three months prior to launching your blog.
Remember that social media marketing is a marathon, not a sprint. You will get out of it what you invest in it.

If you follow all of these tips, when someone types your name into the world’s most famous search engine, they will immediately have your virtual business card — and so much more — right at their fingertips.

Melinda F. Emerson, known as the SmallBizLady, is an entrepreneur, professional speaker, small business coach and the author of Become Your Own Boss in 12 Months. In 2010, Forbes magazine named her as one of the Top 20 Women for Entrepreneurs to Follow on Twitter.

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Developing an Effective Sales Strategy: Q&A with Jennifer Abernethy

by Melinda Emerson on May 26, 2011 in Branding & Marketing, Q & A Interview, SmallBizChat, Uncategorized

Each week as Smallbizlady, I conduct interviews with small business experts on my weekly Twitter talk show #SmallBizChat. This is excerpted from my #SmallBizChat interview with Jennifer Abernethy @saleslounge. Jennifer is America’s Sales Stylist for The Sales Lounge and author of The Complete Idiot’s Guide to Social Media Marketing.

Small Biz Lady: Why is important for small business owners to have a sales strategy?

Jennifer Abernethy: Because they need to know where they are going! Or where they want to be in terms of revenue!

They also need to know how much they want to bring in. Example if you want to make 100K per year…how much will you need to bring in each month?

Small Biz Lady: What’s the first thing folks need to do with their sales strategy?

Jennifer Abernethy: Then they need to figure out the best way to achieve that goal in the fastest way possible. Example: Then you need to account for holiday’s /vacation time etc.

Then they need to figure out the best way to achieve that goal in the fastest way possible looked at Facebook and said..”okay there are 30 million people on this site..I need 30 to become clients.”

Small Biz Lady: What are common mistakes small biz owners make when it comes to sales?

Jennifer Abernethy: They forget to pick up the phone….Daily! They bring their moods to work. On my worst days my clients NEVER know it. They lose focus…and forget they have a goal they have to attain. And they are afraid to ask for the sale! It’s also good to have an accountability coach… or someone to help you stay focused

Use my 5 x 5 rule..(It’s helped me for 20+ years) Make 5 calls a day 5 days a week..to people you DON”T know. Also take your goal..say $100K per year..and break it down per month. Now..what do you need to do to make it? When I was in corporate..we looked at our numbers..not only DAILY but WEEKLY. And I mean LOOKED at the numbers.

Big tip: You NEVER know where your next customer is coming from..could be sitting next to you on plane..everything is business. On calls, do your calls in the A.M. Get names from LinkedIN, Twitter, FB

Small Biz Lady: How can small biz owners incorporate social media into their sales strategy? Continue Reading →

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4 Business Financing No-Nos

by Melinda Emerson on May 25, 2011 in Uncategorized

Four Business Financing No-Nos, by Morgan Leu Parkhurst

You have plans to open a business. Or maybe you can see a business expansion on the horizon. If only you had the money to do it. On the quest to market your business like crazy it’s tempting to go great lengths to obtain the cash you need to do the things you want. But, not all loan options are created equal. Below are a few that might make you think twice before signing on the dotted line.

Borrowing on a credit card. This is a huge no-no. Credit cards are designed for short-term borrowing. Not long-term financing. Their high interest rates make them a poor match for a start-up business that may not generate revenue right away. There are a variety of loans available through banks that are better suited for start-ups and businesses that are trying to expand. When working with a bank, make sure to ask for the banker in charge of commercial lending. They are often in-the-know about loan options for businesses and can work with you to select the loan that’s right for you.

Taking out a home equity line of credit. This is a no-no for a few reasons. One, if you are trying to pay down your mortgage to eventually own your home, it doesn’t make sense to borrow against the equity you already have. When you borrow against your home, you move farther away from accomplishing your goal of home ownership. If that doesn’t sway you against taking out a HELOC, perhaps this will. The second reason not to borrow against your home is if you default on payments, your home could be at risk. In addition to paying your mortgage, you are now paying on a second loan. Missing payments on either could land you in foreclosure. The final reason not to rely on a home equity loan is that if the value of your home is reduced (as we saw happen in recent years), your available credit could be reduced. As a result, you could be left still scrambling for available cash.

Borrowing from family. My great-aunt, Auntie Wanda, always used to say, never sell a car to another family member. As luck will have it, the car will malfunction as soon as it switches owners. Imagine that family reunion. What does this have to do with borrowing money for a business? Well, if bad blood can build between family members over a used car, imagine the stress that results from a business loan. The minute the loan is transacted, the business will have a bad month or two or three. If you find that borrowing from family is your only option, treat it like you would any other loan. Get everything in writing, establish an interest rate, and create payment terms. You may want to have a lawyer look the agreement over to ensure everything is handled appropriately. If someone balks at the formality, consider yourself red-flagged and look for another loan option.

Pawning items you own. This isn’t as common as the other three, but for people who want cash fast, this starts looking more and more attractive. Pawning, like credit cards, is a short-term loan. It isn’t designed for long-term use. Typical payback time is approximately 30 days. That’s not a lot of time to generate revenue. You’d likely have better luck with a garage sale. At least the money you make isn’t a loan. Although it’s easy to dream that cash will come flowing in, it doesn’t always happen. Make sure you are realistic about what your business can feasibly bring in before signing on any dotted line.

All loans aren’t inherently evil. They are also not equal. Unfortunately many people get themselves into situations they don’t understand or fully appreciate. Whether the business has a good or bad month, the money must be paid back with interest. There are alternatives to loans such as working a part-time job or expanding slowly as revenue comes in. Ultimately, as the business owner, it’s your call as to how much risk you are willing to shoulder. But carefully review your options before proceeding with any loan (either one listed above or otherwise). Your business and personal financial stability rely on it.

By day Morgan Leu Parkhurst helps individuals put the pieces of their marketing puzzles together. By night she teaches marketing communications to aspiring entrepreneurs. Reach her at sharpmindmarketing.com or on Twitter at @. Morgan_LP

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Enchantment by Guy Kawasaki is Worth the Read

by Melinda Emerson on May 18, 2011 in Branding & Marketing, My Recommendations, Uncategorized, Your Small Business

Look for Guy Kawasaki's New Book Enchantment!

Enchantment by Guy Kawasaki is a great book for emerging small business owners. I like that Guy gives readers every trick and good idea that he knows from how to make a great impression, get customers behind your cause, and even how to resist enchantment. He says that enchantment is a process, not an event. It’s all about nurturing the long-term relationship that will generate repeat customers and create a sustainable business.

One of my favorite chapters in the book is How to Enchant Your Employees This chapter is about helping the people who work for you achieve MAP mastery, autonomy and purpose. He’s also a huge advocate of telling people that you want them. He writes, “At the end of every day, one of the most valuable assets in your business goes home. The question is whether they will return in the morning. An enchanting boss make sure that her employees know they are valuable and they are appreciated.” This is some powerful advice.

I love the amount of research that is behind this book. It’s not just a bunch of war stories. There’s real science in here. If you follow Guy’s road map your business will be better for it.

If I could make any criticism of Enchantment it would only be that there’s too many apple “related” examples in this book—but the content is so good this is relatively minor.

Grab this book today. I loved reading it.

Melinda F. Emerson, SmallBizLady, is one of America’s leading small business experts. She is an author, speaker and small business coach whose areas of expertise include small business start-up, business development and social media marketing. As CEO of MFE Consulting LLC, Melinda develops audio, video and written content to fulfill her mission to End Small Business Failure. She publishes a resource blog, www.succeedasyourownboss.com and hosts a weekly talk show on Twitter called #Smallbizchat for emerging entrepreneurs. Forbes Magazine named Melinda Emerson one of the Top 20 Women for Entrepreneurs to follow on Twitter. Melinda has been featured in the New York Times, Wall Street Journal, The Washington Post, Fortune and Black Enterprise. She’s the author of the bestselling book “Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.” She writes a column for www.secondact.com, and is an instructor for the Black Enterprise Small Business University.

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7 Keys to Power Networking

by Melinda Emerson on May 16, 2011 in Become Your Own Boss Tips, Branding & Marketing, Grow Your Business, How to Start, My Recommendations, SmallBizChat, Uncategorized, Your Small Business

7 Keys to Power Networking

Power Networking at Business Event

May 16^th kicks off National Small Business Week and for the next seven to 14 days there are tons of events and awards ceremonies for small business owners which is a fantastic opportunity to meet and greet potential contacts. I keynote and speak at many conferences and small business events, and often I see small business owners doing their businesses a disservice by how they show up and network at events. With tons of networking opportunities taking place from now until Memorial Day, I wanted to provide a guide on how to prepare for a networking event. I call them my 7 Keys to Power Networking.

Here are 7 things to consider when networking:

1. Set a Goal. Don’t go to any event without a goal in mind. You should always know why you are attending the event. You should not go to any event where your best target customers are not the majority of the attendees. When I attend events, I try to secure 5 quality contacts and that’s it. Why? Because there’s only so much time to follow-up with people. The fortune is in the follow-up, I’ll talk about that in next week’s blog post.

2. Research Attendees. Try to find out who is attending the event. Look at who’s on the board of the event sponsor. Check out the names of the honorary committee hosting the invitation. Make a call to the organizers to try to get as much information as a possible. (If they utilized an online invitation, you can see who else was invited. Use Google and LinkedIn to research as many attendees as possible. This makes having conversations much more interesting and you’ll show your prospect you’ve got legitimate interest in them. You want to learn any information that will help you make a personal connection as quickly as possible.

3. Bring You’re A Game. You can’t bring your A game in your B suit. Make sure you look great head to toes. Men shoes are important. Ladies make sure the makeup and neckline are appropriate. Everything should fit well, and it will really boost your confidence. You don’t get a second chance make a first impression! Dress how you want others to perceive you and your business.

4. The Reception IS The Event. Game time is the reception. DO NOT BE LATE! The reception is your best chance to track down your targets. You must be on time and armed with your business cards at the reception. Why? Once you take your seat you can only network with the other 9 people at your table. If you are going to attend an event with a friend– divide and conquer the event.

5. Go For The Relationship– Not The Chicken. Do not head immediately to the food table. Work The Room! Be fearless and ready to introduce yourself to anyone. Once you make a contact maintain eye contact. Don’t look over their shoulder at your key target who just entered the room. Be present where you are. Anyone could potentially be a great contact.

6. Moving On From A Contact. Moving on can be tricky. It’s important not to be rude. But most likely the person you are talking to has an agenda too, so do not hesitate to shut down the conversation and move on. Here’s three great lines you can use to make a graceful exit. Use one of these lines as appropriate; “It was so nice to meet you, I’m going to head over to get a drink.” or “It was so nice meeting you and I’m going to give you a call.” “I do not want to monopolize you at this event, I am sure there are more people in here you want to meet. Let keep in touch and see how we can help each other.” With any of these lines you can smoothly move on to your next potential prospect.

7. Take Notes. You’ll want to remember the details of your conversations, write down a few notes on the back of the contact’s business card to help your memory later. If you meet a lot of people each week sometimes it’s hard to keep people straight relying on your memory. Your notes will help making follow-up much more personal.

What other networking tips do you have? I love to learn about other good ideas.

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Is Your Small Business The Most Important Thing To You?

by Melinda Emerson on September 13, 2010 in Mompreneurs, My Recommendations, Pink Slip Entrepreneurs, Solopreneurs, Uncategorized, Women in Business, Your Small Business

When I started my first company, I made a vow to myself that no one would be able to “outwork” me. I believed that if I put more time into my business than my competition, it would make me successful. I became the worst workaholic you could imagine. I would actually leave church on Sunday—and then head into the office. I worked 7 days a week and I created that culture for my employees, too. You could call my office at 8pm and my assistant was still there answering the phone. Now, I always bought lunch and dinner for my staff, but I didn’t have a life and neither did they. And even though my company did well, I am not so sure it was because of all those hours at the office.

It is true that in the first couple of years your business, it really owns you. But be careful not to give all of your energy to your business and completely neglect your family and friends. Make a point to at least twice a week end your work day at a reasonable time. There are too my entrepreneurs who are divorced, because they did not make their families their #1 customer.

Here’s a small quiz that will help you figure if you are on the road to burnout in your business. Answer these questions Yes or No.

Do work long hours = 5 or more nights a week?
Do you prefer to be at a networking event instead of at home?
Do you know how to relax?
Do you still have a date night with your spouse?
Have you recently spent time hanging out with friends?
Do you still regularly do any of your hobbies?
Have you recently read a book for fun?

Your answers to these questions should make you think hard about what your top priority is for your life.

So, how did I finally stop devoting every waking hour to my business?
I was forced to take it easy when I became pregnant with my son. Due to complications with my baby, I had a high risk pregnancy and was put on bed rest for 6 months. I was forced to get a smart phone, and use technology more effectively. I was really only able to work 4-5 hours a day when I felt up to it. I had to delegate more and depend on my staff much more than I ever had. Once I had my son, I never returned to my workaholic ways. I am now a family first entrepreneur. I figured out that my time is what my family needed most, if I wanted to have a family.

Are you a reformed workaholic? Tell me how you finally got your life back from your business?

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

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of MFE Consulting LLC, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. She has been featured on NBC Nightly News, the Tavis Smiley Radio Show, in the Wall Street Journal, Entrepreneur and Black Enterprise Magazine. She hosts #SmallBizChat weekly on Twitter for emerging entrepreneurs and publishes a resource blog www.succeedasyourownboss.com Melinda is also the author of the national bestseller Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. (Adams Media 2010)

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Winners of the $25,000 Entrepreneur’s Challenge

by Melinda Emerson on May 10, 2010 in Branding & Marketing, Grow Your Business, Mompreneurs, Pink Slip Entrepreneurs, Solopreneurs, Uncategorized, Women in Business, Your Small Business

In celebration 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 is annoucning contest winners featuring a prize of weekly small-business coaching sessions. “The contest brought so many worthy applicants that I found it impossible to choose one winner,” describes Emerson. “I narrowed it to two winners who agreed to share the one-on-one coaching.”

Entrepreneurs Jennifer Furr, owner of PictureThatSound in Raleigh, North Carolina, and Chris Bell, owner of ChrisBell3rd & Company in Columbia, Maryland, will work with Emerson weekly and blog about their experiences.

In 2009, Jennifer Furr decided to leave her steady job in the pharmaceutical industry to pursue a dream – bringing a product to market that she couldn’t find in the retail world.

Jenn Furr

Furr founded PictureThatSound to fill an unmet need in the US memory-keeping market. The company’s first product pairs a photo matte with a recordable device for sound. Furr describes being pregnant with her second child and wanting to capture the ultrasound image with the heartbeat sound in her scrapbook album. “There are so many sounds that we take for granted, that we think we’ll always remember. Sometimes I close my eyes and picture a sound in my head, like my toddler’s giggle, my grandmother singing, or even my husband snoring. We provide a product that allows you to capture a photo and an audio snapshot of that memory, all in one.” Visit www.PictureThatSound.com.

Chris Bell

In June 2009, Chris Bell decided to use his creative business development and technology sales expertise to launch his consultancy, ChrisBell3rd & Company, LLC to exceed sales revenue objectives on behalf of executives, investors, and owners of small to mid-sized IT software and life sciences software companies. “This is a once in a lifetime opportunity to be coached by Smallbizlady, and I am thrilled to have been chosen. I know she will help me grow my business,” said Bell.

ChrisBell3rd & Company, LLC exercises proven best practices with the latest in Sales 2.0 technology to deliver customized business development and sales approaches that uniquely fit their client’s product-type, corporate culture, and revenue goals. His mantra is simple: “Nobody cares what you know, until they know that you care – all is business is personal.” Visit http://chrisbell3rd.com

Emerson says, “These two emerging entrepreneurs are exactly the type of dedicated small-business owners that I love to coach. I was so touched by each of their stories of starting a business.”

Jennifer and Chris will receive coaching twice a month for one year and an autographed copy of Melinda Emerson’s book Become Your Own Boss in 12 Months, her life planning journal, and her Audio CD: 10 Things You Must Never Forget in Business. Emerson will also coach both entrepreneurs every other week throughout the year. The winners will be required to blog twice per month about their entrepreneurial journey.

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 is a well-known expert in achieving bottom line results and has helped many entrepreneurs to start and grow their businesses. Melinda hosts #Smallbizchat, a weekly talk show on Twitter for emerging business owners. Melinda publishes a blog about running a profitable small business www.succeedasyourownboss.com. Her first book Become Your Own Boss in 12 months; A Month-by-Month Guide to Start a Business That Works” was released March 2010 from Adams Media. For more information, please visit www.becomeyourownbossbook.com

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Niche to Get Rich

by Melinda Emerson on March 1, 2010 in Uncategorized

What the heck is a niche? Webster’s Business Dictionary defines a niche as a “particular market or specialty area where a company finds it profitable to concentrate its efforts. Niche marketing offers a concentration of clients in an area of limited competition.”

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 on March 9, 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.

Most start-up entrepreneurs make the mistake of trying to go after too broad a market. They chase either too many clients or too many diverse industries. Even though they have limited time and resources they chase every ambulance going down the street that they think might have money in the back. After months of doing this, it is their business that is on life support in need of emergency care.

If you try to sell to anyone with money—you’re going to struggle in business. And you will not be known for anything. Consider this; lots of people sell shoes. Why should anyone buy them from you? Lots of people sell marketing consulting services. What makes your services so special? Anyone can print my business cards. What difference does it make to my business if I use your service? Do you have an answer for this in your business?

Nobody wants a generalist; they want a specialist—with experience in solving their specific business need. When a vendor has exactly what the client needs to fix their problem, the conversation moves past selling straight to budget, timeline and delivery. And the best thing about being a specialist is in most cases you can charge more for being one, too.

Some advantages of niche businesses are :

It is so much easier to market your services when you know your customer.
Running a Niche business removes a lot of the guess work in your marketing efforts.
Industry circles are typically smaller so referrals (which is how 90% of business is done) can happen much more quickly.

But how do you choose a niche that’s right for you? A niche can be anywhere from under (or on) your nose (think Breathe Right strips for snorers), to cyberspace, where eBay and YouTube, among others, have generated millions. You might stumble on it. I spoke to a CPA friend of mine who only specializes in restaurant accounting.

Go With What You Know. Some popular niches include virtual call centers, personal training, beauty salons/spas, travel agencies, gyms, computer repair, technical/online support and business coaching.

Work for A Business Like The One You Plan To Start. If you work for a business like the one you plan to start, you may see a niche that your employer is ignoring.

Look for “You Must Be Kidding” Opportunities. The enterprising entrepreneur will find a pot of gold in everything from bathroom maintenance services, pest control, window washing, maintaining septic systems, to building a business pet sitting.

Turn a Hobby into a Money Machine. Stories abound about cookie makers (Famous Amos, Mrs. Fields, etc.) who went from the kitchen to national enterprises because they were tuned into America’s taste buds.

Invent Something. Mother Necessity is always looking for solutions to problems. The Butler Bag, PedEgg, plastic garbage bags, the Jet Ski, and WD-40 are just a few of the many products created by inventors who made a niche where none existed before.

Focusing on a niche market is a choice. Would you like fish in a big lake or a small lake just after the trout have been stocked for the fishing season? The smaller lake gives you far better odds of eating fish for dinner that same night.

Are there any other ways to fine a niche for a small business? I want to hear your experience.

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.

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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.

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