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How to Grow a Billion Dollar Membership Site QA

By on April 26, 2012 in Grow Your Business, Mompreneurs, Q & A Interviews, SmallBizChat, Women in Business, Your Small Business

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 Alexis Maybank @giltfounder Alexis cofounded Gilt Groupe with her best friend Alexandra Wilkis Wilson. Gilt Groupe took only four years to take the fashionista crowd by storm, transform online shopping, and attract five million members and earn a $1 billion valuation.  Previously, Alexis was an early member of the eBay team and launched eBay Canada and helped launch eBay motors; She has a B.A. from Harvard College and an MBA from Harvard Business School. She has appeared on CBS-TV, CNN and other networks. She and her cofounder recently authored BY INVITATION ONLY: How We Built Gilt and Changed the Way Millions Shop (Portfolio; 2012) www.giltfounders.com Alexis shares tales from her wild ride of launching a hyper-growth startup.

 

SmallBizLady: Gilt Groupe took both the fashion and e-commerce industries by storm with such a simple idea.  How did you do it?

Alexis Maybank: My partner and I were inspired by the popularity of New York’s designer sample sales, and we wanted to make this popular local pastime available online to customers throughout the US.  Gilt Groupe was designed to offer highly coveted fashion labels at insider prices to a passionate group of consumers. Today we’ve evolved to become a website selling diverse luxury lifestyle products to customers around the world.

 

SmallBizLady: In just 4 years you attracted 5 million members and a $1 billion valuation. What is it that sets Gilt Groupe apart?

Alexis Maybank: The most critical factor contributing to our success was its founding team. In addition, we enlisted the industry’s leading and most coveted brands to sell on our site, for the first time sought to curate the best of a season or collection and not feature everything, tapped cutting edge viral and social marketing techniques to scale the customer base quickly, and used leading site creative to cultivate a leading luxury brand online.

 

SmallBizLady: Common advice is to never go into business with friends or family, but you have turned that on its head.  How has it worked for you?

Alexis Maybank: In a startup, it is absolutely critical to be able to trust and rely on your co founders and/or team. If you are considering going into business with a friend or family member, you are likely to put a lot on the line. It is important to communicate. Lay out any potential issues or concerns on the table and talk about them in detail. We did this because people told us to have these discussions, but we were never all that concerned about working together. It is important to think about the context of your friendship. In our case, we were friends from business school, so we had seen each other’s work ethic and drive in action, and we were familiar with each other’s basic business acumen. Most important, we each had seen the other at our best and worst and knew we would not encounter any surprises as we hit the inevitable highs and lows any start-up faces as it grows. Our confidence and trust in each other was absolute.

 

SmallBizLady: You talk about relationships and execution being keys to your success. Why are these two factors so important?

Alexis Maybank: Relationships were absolutely critical to the success of Gilt. Our relationships with the fashion community were necessary in convincing brands to sell their wares on Gilt. Our relationships with friends were important because they helped to form our early base of members and customers of the site. Our relationships also enabled us to find and recruit top talent in all functional areas, from merchandising to marketing to operations technology and finance.  Execution is key; ideas are cheap.  We knew that we needed to execute our vision better than our competitors, and we started having competitors enter our industry very quickly.

 

SmallBizLady: Gilt Groupe’s success was largely built during the recession. What advice do you have for someone starting their business in this economy?

Alexis Maybank: There is no better time than now to pursue an idea you are deeply passionate about, and in fact there are many sources of financing available now to would-be-entrepreneurs. If you have an idea, here are some things that you might consider in determining if now is the right time to pursue it. First the idea should be easy for you to explain in one sentence to a friend or colleague.  Second, does this concept exist in any shape or form already? Why or why not? Take an honest look at the marketplace. Who else is out there? Has someone already tried this and failed—and if so, why? Have times changed? Sometimes an idea can be too ahead of its time and advanced for the market. Importantly, can you test your idea before overinvesting, just to make sure? These days the best way to make sure that the time is right for your idea is to get it out there and see what people think. Getting customer feedback from the start will help you build a better product, one that will maximize your investment.

 

SmallBizLady: In your book you discuss the value of naysayers especially early on in building the company.  Can you explain their value? 

Alexis Maybank: Don’t get discouraged by the people who tell you your idea will never work. Instead listen to them and see if you can apply any of their thinking into refining and improving your strategy. If you can anticipate pitfalls and those hard questions you will get from investors and partners alike in advance and more importantly be ready with great, well-thought-through answers, then you will be better equipped for the challenges ahead.

 

SmallBizLady: With the tech industry still being predominantly male, what are some of the unique challenges you faced getting started? 

Alexis Maybank: We launched a business initially targeting female customers; in fact we were precisely the target demographic. This was very clearly an advantage as we understood the consumer mindset better than anyone. Beyond that it can be more challenging raising money as a woman. Women led 28 percent of all U.S. businesses in 2002. Yet female entrepreneurs historically receive less of the invested dollars coming from venture capital firms, estimates are as little as four to nine percent.  So while this is clearly a challenge, keep in mind that as a female you are more likely to be a more memorable party pitching the partnership as there are not as many women to walk through there doors to begin with!

 

SmallBizLady: Entrepreneurs think that venture capitalists invest in ideas, but you argue they really invest in people.  So what makes them want to invest in someone? 

Alexis Maybank: Because there’s so little due diligence that can be done on most new start-ups, it’s natural that VCs concentrate most on the team involved. Many investors like to see a track record of success and will use this to guide them. Drive, ambition, leadership potential, integrity and the ability to motivate others are also important traits for an entrepreneur. You need to focus on the background and skill sets of the key team members in order to convince investors that you are the right team to back.

 

SmallBizLady: Growth is something all small business owners work towards, but growing too quickly can be detrimental.  How can this be avoided?

Alexis Maybank: There are two areas where you see companies suffer when growing too rapidly. The first is not anticipating the right type of people they will need to lead various teams or functions, hiring them too late or making the wrong choices in hiring.  Hire fast enough, but do not over-hire, and invest in recruiting the right talent so you do not have to rehire later, which is often a time consuming and sometimes costly mistake.  Second, if you grow too rapidly and are not investing enough in making sure your business infrastructure is strong enough then you can find yourself ground to a halt when the site crashes, the orders outpace what you can ship out in an acceptable time, or your accounting systems fail and lead to detrimental errors in expense reporting or others. Try to anticipate what could “break” next and get rigorous as a team in shifting focus fast enough to address these problems.

 

SmallBizLady: What advice can you offer for how to spot a trend that could reinvent an industry?

Alexis Maybank: There are no simple formulas here.  However if you are intimately familiar with an industry or a customer group, and you recognize a really tough problem that is universally faced or a so-called pain point that confronts all, and you have a pretty good solution that you could introduce or build better than the existing alternatives, then you are probably on to something important.  Some of these problems could have been left for dead or abandoned, and sometimes people need to just take a fresh look at them.

 

SmallBizLady: Can anyone transform a personal passion like shopping into a business?
Alexis Maybank: Not all personal passions should be transformed into a business, but if you think that your passion has a viable market, then explore it, and perhaps find someone who could join you in your venture. We believe doing a start-up with someone you trust is so much more rewarding and fun than going at a business alone.

 

SmallBizLady: What role should style play in a professional woman’s career?

Alexis Maybank: Style is important, not only in terms of looking well groomed and put together in a manner true to who you are as a person, but more importantly personal leadership style. In the book we discuss differences in leadership styles. Not every approach will work for every woman, but over time one can hone in on what feels natural and what is effective in reaching your goals and standing out amongst the crowd.  If you are true to your nature in presentation and style, then you feel most comfortable, and are inevitably at your most confident – the key ingredient to true style.

 

SmallBizLady: Gilt Groupe has since expanded beyond fashion with sister sites such as Jetsetter.com for travel and GiltCity.com for local deals and finds.  Was this always part of the plan?

Alexis Maybank: We have always been close to our customers. We both spend a lot of time with our members, listening to their perspective and ideas and responding to their feedback, as well as investing in regular customer research. Our members communicated clearly that they were not only interested in fashion and decorative items, but they lived or aspired to live a luxury lifestyle which included travel, local experiences, food and wine. We incorporated this feedback into our business and our offerings.

 

SmallBizLady: What are some tips you can share to help people maintain their corporate culture during major company growth?

Alexis Maybank: It is not always easy to maintain a corporate culture as a company grows, but it is important and is absolutely worth the investment. Establishing a vision and a mission and regularly communicating them to the employee base and to potential hires is important. Think about company culture when hiring. The cultural fit for a candidate is just as important, and sometimes even more important, than the candidate’s skill set.  The best way to select individuals who fit your company’s culture is to include employees in the hiring process who embody the culture and are really good at vetting for certain values in the hiring process.  Make sure they are involved in training new hires, too.  You can even do something as simple as hosting lunch or after-work cocktails.  No matter what however, the company’s culture will always be a reflection of the leader or leadership. So you must lead based on what you value culturally.  Any disconnect will lead to a shift, even if not intended.

 

SmallBizLady: What challenges is Gilt currently facing and what are you doing to overcome them?

Alexis Maybank: Our site has always centered on the excitement of fresh inventory daily at insider prices and our customers know we have selected the best of the best from a collection or a designer, so they don’t have to look at everything or spend hours shopping.  It’s a simple, fast and fun experience that revolutionized online shopping.  As we grow into more lifestyle categories and offer hundreds of sales weekly now, we must focus on keeping the shopping experience as exhilarating, speedy and entertaining. This means we have to invest heavily in anticipating what each customer wants to shop for when s/he visits our site.  People want to see the 15 sales best for them – not everything — and feel ‘wow, Gilt really knows me.’  Therefore we are investing in understanding people’s preferences and shopping patterns so that we can deliver the most personalized shopping experience on the web to each person and allow her / him to discover the right products quickly.

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 Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #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 http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

 

 

 

 

 

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How to Be Successful as a Franchise Owner with Dina Dwyer-Owens

By on March 22, 2012 in Mompreneurs, Q & A Interviews, SmallBizChat, Starting A Small Business, Women in Business

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 @DinaDwyerOwens.  She’s the Chairwoman and CEO of The Dwyer Group www.dwyergroup.com over such well-known service brands as Mr. Rooter, Aire Serv Heating and Air Conditioning, and Glass Doctor. She is also a past chairwoman of the International Franchise Association in Washington D.C., the world’s largest advocacy group for franchising. She’s the author of Live R.I.C.H.: How to build success in your company and your life with a proven Code of Values. And many people now know her form her appearance earlier this year on the CBS hit reality show “Undercover Boss” where she went on the front lines of her business in search of her company’s Code of Values at work. For more information www.dinadwyerowens.com

 

Smallbizlady: What exactly is franchising?

Dina Dwyer-Owens: Franchising is a business strategy – a method of distributing products or services. The “franchisor” lends a trademark, trade name and business system. The “franchisee” pays an initial fee and ongoing royalty for the right to do business under the franchisor’s name and system.

 

Smallbizlady: Where do I start if I want to buy a franchise?

Dina Dwyer-Owens: The best place to start is by finding something that you’re passionate about — something that you can look forward to doing every day. That is true of any career. But it is even more powerful when you plan to be your own boss and invest in a franchise! There are over 825,000 franchise businesses across 300 business lines, so the key is identifying which franchise opportunity best fits you and your personal and professional desires.

  1.  Visit www.franchise.org – the website for the International Franchise Associate to look at franchise opportunities.
  2. Talk to existing franchise owners of concepts that interest you.
  3. Request a Franchise Disclosure Document (FDD), a document required by law that details the franchise opportunity.

 

Smallbizlady: What does a franchise cost?

Dina Dwyer-Owens: Investment levels range from $5,000 to multi-millions. There are home-based businesses and then there are large retail opportunities. There is something for everyone and your ability to finance an opportunity will also help define the franchise that is right for you.

 

Smallbizlady: Am I more likely to succeed with a franchise?

Dina Dwyer-Owens: Franchising is not for everyone. And buying a franchise does not automatically guarantee business success. The system works IF you work the system. You should not expect to join a recognizable brand and sit back and expect the customers to find you. A good franchise owner is still proactive about marketing the business and following a system that has been proven and replicated across a successful brand. The most successful franchises still require hard work and dedication.

 

Smallbizlady: What are the biggest advantages of owning a franchised business versus being an independent business?

Dina Dwyer-Owens: There is a popular saying that franchising is about being in business for yourself, but not by yourself. The advantages to joining a franchise include: (1) buying power with vendors that command a better price for things needed to run your business, (2) national branding and name recognition, (3) support and training from your franchisor, (4) peer-to-peer networking to share best practices with others who know your business and are not your competitors, and more.

 

Smallbizlady: What are a few important things people should know about franchising?

Dina Dwyer-Owens: A franchisee is not completely independent. The franchisee will pay ongoing royalties and advertising fees to the franchisor for the rights to operate under that business.  The term of a franchise agreement is usually limited until that time that it comes up for renewal.  And, likewise, there is often a well-traveled exit strategy at a time that a franchisee wants to retire or desires to sell his or her business.

 

Smallbizlady: Are there special programs to help assist in purchasing a franchise?

Dina Dwyer-Owens: There are several. Two that come to mind are VetFran (which was started by The Dwyer Group) and MinorityFran. VetFran is now supported by the International Franchise Association and the US Department of Veterans Affairs and the Small Business Administration. Today, more than 450 franchisors offer military veterans their best financial discount on purchasing a franchise, and more than 2,100 franchises have been awarded through the program.

MinorityFran provides one convenient place where minority prospects can explore franchise opportunities from companies actively seeking minority franchisees. The program partners with Small Business Development Centers, Urban League chapters, and Minority Business Development Agencies among others.

Then there are also franchisors (like at The Dwyer Group) that assist in providing financing.

 

Smallbizlady: What are some of the latest trends in franchising?

Dina Dwyer-Owens: In today’s economy, it’s increasingly difficult to secure a loan for a small business – even for people with perfect credit. Yet small businesses in America are what have led our country through tough economic times again and again. As bank lending remains tight, franchisors and franchisees are working together to help people into business. At The Dwyer Group, we have always offered financing to qualified prospects. And there is a growing number of people across franchising who are taking advantage of programs like VetFran and other discounts, because together we are making the business world stronger.
Smallbizlady: You have coined the phrase “Live RICH” Can your define that?

Dina Dwyer-Owens: At The Dwyer Group, we operate our businesses with a Code of Values, based on the themes of Respect, Integrity, Customer Focus and Having Fun in the Process. That is what it means to Live RICH, and it’s at the heart of our corporate culture. I consider it a big reason why we are successful across our brands. We do not claim to be perfect, but our values provide us a roadmap to follow that allows us to do our very best. And I’ve written about it to share it with others in my book Live RICH.

 

Smallbizlady: You are the second generation in your family to run your company, in a male-dominated industry, no less. How do you do it?

Dina Dwyer-Owens: I surround myself with a great team, and each team member brings strengths to our organization that work together to create a great company and successful service brands. As for being a woman in my industry, I am also the target customer for our service brands. I am the woman of the house who hires our service brands in a majority of the jobs our franchisees perform. That is a wonderful perspective that we have embraced across our franchise family in putting “Customers First.” For the woman of the house, concerns go beyond just a service repair. There’s a branded van, a service professional in a clean uniform, booties worn in the house, a doormat with a logo and so much more that enhance the customer experience. Being a woman is a win-win in leading an organization that supports this level of service.

 

Smallbizlady: How did you define success in your 30s and How do you define it now?

Dina Dwyer-Owens: In my 30s it was about proving myself capable in the tasks of leadership. It was about attracting private equity and getting back to our roots in focusing on our core service brands. I traveled a lot. I was away from home a lot. But all the work by our team laid the foundation for an even stronger future. In my 40s, success is about growing our team and our brands to the next level with our next private equity partner. It’s championing what we know, which in fact has given me more time to prioritize. I still work hard, but I make more time for my family and my faith on a regular basis. I have more balance today, which I call a huge success.

 

Smallbizlady: If you could stand on a roof and shout small business advice to the audience below what would you say?

Dina Dwyer-Owens: Small business is empowering, and we need much more of it. Small business is the future. We’ve heard enough about the ills of Wall Street. Now it’s time to get back to Main Street and honor the men and women who are truly the backbone of our economy. More people want to be their own boss, want to determine their own destinies, want to create desirable workplaces and do things they are passionate about. Small business is championing those answers.

 

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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How To Be A Pregnant Entrepreneur – #Smallbizchat QA with Darla DeMorrow

By on January 19, 2012 in Mompreneurs, Q & A Interviews, SmallBizChat, Women in Business

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 professional organizer Darla DeMorrow @DarlaDeMorrow  Darla helps people find their desktops, keys, time, money, and sanity as a certified professional organizer, but her kids still leave toys on the floor. She was a pregnant entrepreneur twice and wrote the book The Pregnant Entrepreneur. Website: www.PregnantEntrepreneur.com

Smallbizlady: Once I realize that I’m pregnant , who should I tell and when?

 

Darla DeMorrow:  Disclosure of your news requires a plan.  Start with your spouse, then family when the time is right.  Tell employees, then clients.  Then figure that everyone else will already have heard the news, but still be prepared to tell people.  Don’t let people wonder too long, especially employees and key clients.  You want to assure them that there is a plan for business continuation.  Unfortunately, there is still a stereotype that most women decide to stay home after having children, even if that isn’t reality. It’s unbelievable, but you may be discriminated against for being pregnant, and you may not even know it.  But it’s almost never worth pursuing, other than to perform your best, just as you always have.

Smallbizlady: What kinds of things should I spend my time on while pregnant, getting ready for change?

Darla DeMorrow:  In your first trimester, start any new projects that can better sustain the business, especially passive income streams that you might want to develop. In your second trimester, wrap up any major projects and secure any agreements with colleagues or suppliers.  In your third trimester, spend time on building relationships, scheduling business for your return from maternity leave, and putting finishing touches on any new passive revenue streams.

Smallbizlady: How long will I be able to work while pregnant?

Darla DeMorrow:  Every pregnancy is different, but with good health, most women will work right up until delivery.  Physical changes do start almost immediately, though, so the golden rule is to listen to your body and don’t do something if it stresses your body.  Although I was able to do much of my normal workload right up until my ninth month, I did find that I was accomplishing work much more slowly.  So if you work alone much of the time, consider bringing in an assistant to help speed things up, even if you are otherwise healthy.

Smallbizlady: How long of a maternity leave can I take?

Darla DeMorrow:  The good news: you decide how long you can take.  Your bank account determines how long you can afford to take.  Do a review of your bank account to see how long your business savings will allow you to run the business and still pay the bills. Decide how to increase revenues or cut expenses if you want to take a longer leave.  If you aren’t good with numbers, use the Maternity Planning Guide I developed to help figure it out. The guide is in The Pregnant Entrepreneur and downloadable free at www.PregnantEntrepreneur.com . If you have the opportunity to establish any passive income streams now, like books, virtual consulting, tele-training and paid subscription programs, they may be able to add income even while you are not working.

Smallbizlady: Will I be able to run my business, even with a pregnancy and with a child?

Darla DeMorrow:  Yes, if you want to.  The keys will be organization, focus, and support. Talk to other business owners.  Read what you can.  Write down your plans for the business. Do it now.  Most women will tell you that flexibility is the most important factor as their family grows, and you probably already have high flexibility as a business owner, so you are ahead of the game.

Smallbizlady: Will anyone else help pay for maternity leave?

Darla DeMorrow:  Sadly, no.  Unemployment and health insurance don’t cover maternity leave for the self-employed.  If you aren’t yet pregnant, you might be able to buy a disability policy to cover time off, but do the math to see if it will pay enough to cover your loss of income.  Start with your insurance carrier or a local benefits and insurance broker to research this, but do it before you
get pregnant.

Who else can help me run the business, even if I am a sole proprietor? Get a team together.  Think like a big company and list out who your key suppliers and subcontractors are.  Figure out if any of them might be able to service clients while you are out.  Forge relationships with competitors to enable new clients to get serviced and old clients to get help.  Consider earning referral fees if you are willing to refer clients out to  Consider hiring help.

Smallbizlady: What if I don’t want to continue to run the business? When should I not continue?

Darla DeMorrow:  Being an entrepreneur is great, but only if you are profitable.  If your review of the business shows a deficit, and you can’t or don’t want to make changes to the business for profitability, then close the business without regret.  According to the SBA, 50% of small businesses close after just five years in business.  That doesn’t signal failure, but keeping an unprofitable business running while you could spend time on a new business or with your precious newborn is not a smart choice. This time will never come again. Having the option to devote time to your family is a luxury, and can be cherished.

Smallbizlady: I had a very difficult pregnancy and was on bed rest for nearly 6 months.  What advice do you have for entrepreneurs who run into complications?

Darla DeMorrow:  Complications that put you out of work are relatively rare, although they do happen.  Plan for the worst, from how you will handle clients or employees to the reserves that you’ll need to close operations for a while, should you run into trouble.  If you do get a bed rest prescription, talk with your doctor about how much work you should be doing, even with the help of today’s technology. Really, as a business owner, you should have a plan B anyway.  Anyone can run into events that would disrupt a business, from a death in the family to a car accident.  We don’t want to think about it, but successful business owners do.

Smallbizlady: Should I still try run my business with a small child?

Darla DeMorrow:  Yes!  If you are passionate about what you do, then your business will continue to be fun and rewarding, and possibly even a welcome break from all the pregnancy and baby craziness.  If you are profitable, even a little bit, the flexibility that you gain from owning your own business will be worth so much more when you have to work around another small person.  If you are passionate, you have a better chance of being successful than established businesses in your field.

Smallbizlady: What do I need to know about those first few weeks with my newborn?

Darla DeMorrow:  Turn off the technology. Everything changes, so plan but be flexible.  Give yourself a chance to unplug.  Six weeks is absolutely not enough time to get used to the new normal and handle a full work load.  Have a backup plan in place if you need to take a little longer getting your bearings.  You may want to keep in touch with key contacts, but don’t immediately jump back into the fray if you don’t have to.

Smallbizlady: What is the one thing you must do as a pregnant entrepreneur?

Darla DeMorrow:  If you don’t already do this, pay yourself.  Mark your paydays on the calendar.  Pay yourself when you sit down to pay your bills, once or twice a month.  Write yourself a check or get to the bank and withdraw cash.  If you haven’t started taking a salary from your business, start now, even if it is only $25 per week.  You’ve probably been pouring all of your profits back into the business, but you deserve a paycheck, too.  This becomes super important since you will probably need more income now, whether for necessities or just cute little baby outfits.  But if you are going to stay in business for the years to come, it has to be worth it, and working for free isn’t fun for long.  Make it pay for you and your family.

 

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 Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #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 http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works.

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Ask @SmallBizLady: How can I get my kids to “buy in” to my business?

By on June 10, 2011 in Ask Smallbizlady, Business Inspiration, Mompreneurs, Your Small Business

Here’s the answer:

 

Every Friday, I answer your small business questions in a video blog segment called Ask Small Biz Lady.

This week, we are taking on the question: How can I get my kids to “buy in”  to my business?

If you want to get your family to support your business follow these steps:

  1. Communicate with them and teach them what you do.
  2. Don’t be afraid to put even the little ones to work; Get them a job in the business
  3. Share your ideas and ask for their feedback
  4. Everyone loves to be asked for advice, so you can’t go wrong there.

If you have a question for Melinda Emerson, Small Biz Lady, leave a comment on this blog using the contact us page or send me a note on Twitter @smallbizlady, on Facebook at www.facebook.com/smallbizlady or you can hit me up on www.linkedin.com/in/melindaemerson

I’m always here as a resource.

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Do you need a Small Business Makeover?

By on June 1, 2011 in Ask Smallbizlady, Become Your Own Boss Tips, Branding & Marketing, Customer Service, Featured Post, Grow Your Business, Mompreneurs, My Recommendations, Social Media, Technology, Your Small Business

Pitney Bowes wants to give your business a communications makeover worth up to $10,000. If you could use some help with your email, direct mail and social media communications, you can win a free year of using Pitney Bowes’ full suite of business tools.  The grand prize winners will also receive in person one-on-one coaching from me @Smallbizlady and my colleagues marketing expert Jane Applegate and technology expert Phil Simon.Pitney Bowes Makeover Small Business

 

 

You have until July 19th to tell us how you’d improve your business communications. The earlier you enter the better as you will need to get a social media pals to vote for you in order to become a finalist. To enter write a 300 word essay on your biggest communications challenge or send in a one minute video. Click here to enter the Pitney Bowes Small Business Makeover Contest     http://www.pbsmartessentials.com/makeover/

Disclosure: I am a paid consultant to Pitney Bowes to participate as a judge and business coach in this makeover contest!

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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Getting Started as a Work At Home Mom Business Owner

By on April 11, 2011 in Become Your Own Boss Tips, How to Start, Mompreneurs, Starting A Small Business, Women in Business, Your Small Business

Gettings Started as a Work-at-Home MomIf you’re a stay at home mom who’s ready to get back into the workforce as a work-at-home mom small business owner you are in for quite an adjustment.  I believe you should plan your business at least 12 months prior to starting your business as you already have two full-time jobs as a wife and mother.  As a small business owner you are now about to take on a third full-time gig.  Talk about a juggle!

Here are 5 steps that will help you get started so that your juggling act won’t make you feel like running away to join the circus:

1) START RECONNECTING WITH FORMER CO-WORKERS

Your network IS your net worth went starting a business.  Start reaching out through social media.  Everyone should have a LinkedIn Account.  If you haven’t had a picture done in a while invest in a professional headshot.  Facebook is another great way to connect with former work colleagues and potential customers.  Once a week try to schedule a lunch meeting with a former co-worker or mentor.  They will be able to give you valuable insight about getting back out there and pounding the pavement for business and quite possibly give you a lead or two.

2) GET YOUR BABYSITTING SUPPORT LINED UP

If you are going to work from home, you need be in the position to really get work done at home.  I can’t imagine being able to work with children at home all day, without them developing some addictive TV watching habits.  Prepare a budget that includes taking your kids to day care at least three days a week.   Line your night time babysitting support too. You’ll need to make sure that you can attend evening networking events, and you don’t want to get stuck if your hubby is traveling or has to work late.

3) EVALUATE YOUR SKILLS

When you start a business you immediately take on 10-13 jobs at once.  Be sure that you really know your strengths. Have an honest conversation with yourself and list your core strengths and what you like to do. Then list what skills you’ll need to have to run your business.  This will help you understand what kind of support team you’ll need to have to run your business. Continue Reading →

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How to Have Balance in Your Life as a Small Business Owner

By on January 6, 2011 in Business Inspiration, Mompreneurs, My Recommendations, SmallBizChat, Social Media, Women in Business, Your Small Business

Tune in to Smallbizchat with Smallbizlady on TwitterEach 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 Debi Silber @themojocoach.  Debi is a Registered Dietitian with a Master’s in Nutrition, a Personal Trainer, Whole Health Coach, author, speaker and founder of www.TheMojoCoach.com . Debi’s branded The Mojo Coach® because she’s personally led hundreds of clients to achieve their ultimate body, mind, image and lifestyle; inspiring them to “get their mojo back.” She’s also the author of A Pocket Full of Mojo: 365 Proven Strategies To Create Your Ultimate Body, Mind, Image and Lifestyle. http://www.themojocoach.com/book_pocketfull.php

SmallBizLady: What are some of the common health issues you often see with small business owners?

Debi Silber: The most common health issues I see are stress related illnesses, chronic disease (which is largely caused by stress and bad habits/conditioning), unmanaged stress, frustration and overwhelm.

SmallBizLady: Why are stress related issues so common?

Debi Silber: It’s a combination of many things but with the small business owner, it’s usually due to where we place our priorities. Many of us put our work at the top of the list. This usually means that our health and wellness gets pushed to the bottom of the list and we take care of ourselves if we have any time, energy and motivation left after all of our other priorities are taken care of. Unfortunately, by the time we’re finished with everything else, we’re usually too tired to do anything different, especially if it involves change. For many people, we’ll live this way until a health crisis or illness forces us to make changes.

SmallBizLady: What can a small business owner do to find more balance?

Debi Silber: There’s really no such thing as balance because your attention is given to whatever you deem important at the time. The key is to make the decision to view health and wellness as important too because really, the better you feel and live, the better your business will be. You’ll have more energy, confidence, be more productive and positive. You’ll exude a sense of confidence and personal power that makes people want to work with you. Can you wake up earlier and get your exercise in? Make lunch plans with a friend each week? Cook healthier meals on the weekend when you have more time? Journal, meditate, or find another way to de-stress? Take away from any unproductive time during your day and allot it to time spent on making yourself healthier and happier.

SmallBizLady: What are a few tips to eat healthier during a busy day?

Debi Silber: Always start with a healthy breakfast. It kick-starts your metabolism and is a great place to fuel up on fresh fruit, whole grains, lean protein and high fiber. Also, pre-plan your day. If you’ll be out, make sure you have some healthy snacks/meals and plenty of water to keep you nourished and hydrated. It’s also best to eat well-balanced meals (healthy carbs/protein/fruit or veg/little bit of fat) every 3-4 hours to keep your blood sugar and mood stable. This will prevent an energy surge and crash as well as prevent a binge because you got overly hungry or ate too much sugar.

SmallBizLady: What are some unhealthy habits you often see with your small business clients?

Debi Silber: We think we can only have a dysfunctional relationship with people but we often have it with food too. Binge, mindless, social and emotional eating behaviors can have us struggling with food, weight and health for years, and often decades. Some are just bad habits and something like emotional eating for example, is a way to soothe, calm, numb and relax us. It’s a way of self-medicating. We stuff ourselves to “check out” or “stuff” the pain from an uncomfortable emotion we don’t want to deal with. It’s an easy way of meeting an unmet need like anger, frustration, loneliness, boredom, feeling unfulfilled and even fatigue.

SmallBizLady: Exercise is important but we’re either too busy or we just don’t want to do it. What are a few tips to make sure we exercise?

Debi Silber: The first step is to understand our “fitness personality” so we can create a program we like based on our needs, health, preferences and lifestyle. Next, it’s usually best to get it in before the day starts because as the day progresses, things come up and exercise is one of the first things to go if you have a lot to do. If that’s not an option, keep your gym bag packed and ready to go, exercise on a lunch break, hit the gym before you come home, find a fitness buddy for accountability, TiVo your favorite shows and treat yourself to them while you exercise, create a reward system for getting your workout in, etc. The key is to find a way to get exercise in and stay motivated while bringing results.

SmallBizLady: When running your own business, especially from home, it’s difficult for many of us to “leave the office.” Any suggestions?

Debi Silber: Having my business from home, I find it helpful to physically leave the office and shut the door behind me once my kids come home. Shutting the door subconsciously reminds me that that part of the day is over and it’s time to move back into my role as wife and mom. I try not to go into the office much once the kids are home but when you love what you do, it’s especially hard to leave because it doesn’t feel like work! It’s also important to realize that there will ALWAYS be more to do so learn how to pace yourself for the sake of your health, your wellness, your sanity while keeping your priorities and values in check.

SmallBizLady: How does stress affect our health?

Debi Silber: When we’re stressed, we’re not interested in making healthy choices, reading labels, etc. We want comfort foods (which are loaded in fat, sugar and calories) because we’re looking for that feeling we felt when they were served to us long ago. Under stress, we’re also secreting more stress hormones, which encourage us to eat more. Stress also suppresses the immune system. A weakened or compromised immune system puts us at risk for many illnesses and diseases. Stress also affects our ability to heal, affects our nervous system, digestive system, reproductive system, hair, skin, organs, cells…just about everything.

SmallBizLady: What are some of the dangers of stress?

Debi Silber: Stress creates physical, mental, emotional wear and tear. It’s hard to imagine though because we think a physical cause causes a physical pain (ex: stub your toe, it hurts) but think about it. You hear something and your face reddens with anger, you’re embarrassed and you flush, you’re nervous and you feel butterflies, you’re upset and your stomach hurts. These are physical reactions to emotions/feelings. These emotions release stress hormones and chemicals and over time, these chemicals cause huge wear and tear.

SmallBizLady: Sometimes our lifestyles (spouse, family, running a business, etc.) can affect our sleep. What’s the link between a lack of sleep and our health?

Debi Silber: When stressed, we’re not sleeping well and will look for more energy through sugar and caffeine. The empty calories coming from sugar is one of the easiest ways to gain weight. A lack of sleep also leaves us groggy which makes us less productive during our day. It also makes us irritable, less patient, etc.

SmallBizLady: What’s the best way to start living a healthier lifestyle and making changes that last?

Debi Silber: Start small, making changes that work for you. Make 1 change in each of these areas-nutrition, fitness, relationships, emotional health, stress, and spirituality.

Here’s some examples: Nutrition-can you leave over a few bites of food at dinner, drink more water, make a healthy substitution? Fitness-can you commit to walking 1 day this week, bumping up the intensity of your jog, joining a class, working out with a fitness DVD or taking the dog for a run every day? Relationships-can you go out on a “date” with your partner, make plans with a friend, play more with your kids, call an old friend or make a new friend? Emotional-can you talk back to your “inner bully” (that voice that tells you that you can’t, you’re too old, not smart enough, not ready, etc.), change your perspective, lighten up? Stress-can you take 10 minutes to read a magazine, get more sleep, journal, meditate, relax in nature, listen to soothing music, laugh more, exercise to de-stress, knit, do yoga, etc.? Spirituality-can you find a way to feel more connected to something bigger-be more appreciative, donate your time or money to a cause you find meaningful, pray daily.

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

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

Melinda 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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Women Entrepreneurs Are Better Because…

By on October 25, 2010 in Mompreneurs, Women in Business, Your Small Business

As women, we already play multiple roles in a day. Small business owners on average perform 10-13 jobs all at one time, including chief sales officer, market researcher, bill collector and secretary. Moms do too.  In fact, 82% of all women business owners are mothers, so managing details from work to home is a skill most women do as a reflex. In the early stages of a business, it’s all about the juggle, and women are better equipped to handle the stress and responsibility of running a small business.

We are better delegators. We understand that we can’t do everything, even if many of us believe that no one can do it better than us. We put support systems in place to get the job done. Whether it’s a team of virtual assistants to follow up on sales leads, chase down opportunities or keep our social media networks working or a college student or nanny so that our children will have someone looking after their safety, we make sure that a full team is in place so the trains run on time. While our team has our back, we can be present wherever we are, so that everyone we connect with knows we care.

We are willing to ask for help. We don’t just ask for help with driving directions, we are willing to ask others (especially other women) for advice and mentorship in our businesses. As women, we are willing to admit that we do not know everything and can show enough vulnerability to get what we need for our businesses. We are also willing to take advice. Being coachable is our secret weapon.

We are better equipped to make big decisions. We think about the long-term impact of our business decisions on our families, customers, vendors and employees – we’re not just about the short term gain.  We also use our intuition as an additional tool when dealing with customers.  If it feels like a client is going to use double the project management budget with a bunch of hand-holding nonsense, we might have an upfront hunch and hopefully, the sense to double the budget – or walk away from the contract.

We are better communicators. As women, we believe in talking through opportunities, problems and conflicts. We work better at consulting with others on critical decisions, especially if we think we need more information.  We are not afraid to get face to face with a difficult customer to work through any challenges and we are also naturally friendlier and less likely to intimidate sales targets or our employees.

Share your thoughts.  Leave a comment about this article.

Become Your Own Boss in 12 Months Books By Melinda EmersonMelinda 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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Is Your Small Business The Most Important Thing To You?

By on September 13, 2010 in Melinda Emerson @SmallBizLady, Mompreneurs, My Recommendations, Pink Slip Entrepreneurs, Solopreneurs, 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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25 Business Women to Follow on Twitter

By on July 26, 2010 in Business Inspiration, Mompreneurs, My Recommendations, Social Media, Women in Business

As many of you know, I think Twitter is a fantastic social media tool to grow a small business brand.  There are many fabulous people who I’ve met online and these ladies are a special group of women who handle business in a way that I respect and admire.  I thought that I would share them with you so that you would know who I follow on Twitter.  If you follow me @smallbizlady you will often see me “retweet” information from these ladies:

@Smallbiztrends Anita Campbell, Editor Smallbiztrends http://www.smallbiztrends.com

@DawnRiversBaker  Dawn Rivers Baker, Editor The Microbusiness News Journal http://blog.microenterprisejournal.com/

@thebossnetwork Cameka  D. Smith Founder  of http://www.thebossnetwork.org/ Great site for women of color and all women in business

@Holly_hanna  Holly R. Hanna  Founder of http://www.Workathomewoman.com , a solid resource for WAH Moms and all business women

@ithinkbigger Kelly Scanlon National Chair, National Association of Women Business Owners http://www.NAWBO.org

@paulag01 Paula Gregorowicz Life Coach/Blogher Blogger http://www.thepaulagcompany.com

@bizauthor Stephanie Chandler Author/Speaker/Business Coach http://www.stephaniechandler.com She wrote one of my favorite books;  Entrepreneur to Infopreneur

@elenaverlee  Elena Verlee is a PR expert for small businesses http://www.prinyourpajamas.com

@darnyellejervey She’s the passion to profit coach http://www.darnyellejervey.com

@currentmom Katherine R. Lewis, editor of www.Currentmom.com Sunday is the day they focus on business, but they always have great info on the other days too.

@womanzworld Natalie Sission Founder of http://womanzworld.com/ great resource for female entrepreneurs

@shessothere Sweetie Berry High-level strategist and southern powerhouse for women with an emerging brand. http://www.shessothere.com

@cathywebsavvypr Cathy Larkin is a social media strategist and co-host of #Smallbizchat http://www.websavvypr.com

@indiebusiness Donna Maria Johnson Coles is A Small Business Blogger and Founder of the Indie Beauty Network http://www.indiebusinessblog.com

@simplicityinc A. Michelle Blakeley Micro Business Therapist and Blogger www.simplicityinc.com

@kgreenstreet  Karyn Greenstreet  business coach and queen of mastermind groups http://www.passionforbusiness.com

@richelleshaw Richelle Shaw is millionaire business coach and email marketing genius http://www.richelleshawmarketing.com/

@sueyoungmedia blogger/communications consultant http://getinfrontcommunications.com/

@CEOtoday Tachelle Daniels hosts CEO Today on Blogtalkradio—always an informative show http://www.blogtalkradio.com/ceo-today

@merylkevans Meryl K. Evans is s professional writer/blogger on small business, technology and writing. http://www.meryl.net

@pamperry Pam Perry PR coach and amazing book publicist http://www.brandingsuperstar.com

@janeoutofthebox  Michele DeKinder-Smith Marketing research expert and creator of http://www.JaneOutoftheBox.com

@ZimblerMiller Phyllis Zimbler Miller Power marketing and social media coach www.MillerMosaicLLC.com

@lenawest Lena West Social media strategist/blogger www.xynomedia.com

@allyson7minutes Allyson Lewis Productivity Expert/Author, 7 Minute Difference http://www.7minutedifference.com

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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8 Tips to Become Your Own Boss

By on June 28, 2010 in Become Your Own Boss Tips, How to Start, Mompreneurs, My Recommendations, Pink Slip Entrepreneurs, Solopreneurs, Starting A Small Business, Your Small Business

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?

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 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.

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On The Road To Oprah’s Own Network

By on May 31, 2010 in Business Inspiration, Mompreneurs, Pink Slip Entrepreneurs, Solopreneurs, Women in Business, Your Small Business

Vote for Smallbizlady!Many of you may not know this but Oprah Winfrey is who inspired me to become an entrepreneur.  When I was in college she opened Harpo Studios.  That planted the seed and really gave me the confidence that one day I could own my own production company.

I will never forget that time.  I was interning that summer in New York for the Today Show and back then, Lexisnexis was the way you looked up information. I used to hide in the ladies room until everyone went home so I could get onto the Lexis system and look up articles about Oprah’s new business. What fascinated me most about Oprah’s business acumen was not her number 1 talk show, but the fact that she owned her own creative product and negotiated her own syndication deal with King World.

It was the summer of my sophomore year in college when I caught the entrepreneurial bug and I started making plans. I even came up with the name of my first company – Quintessence Entertainment, Inc. I chose Quintessence because it means perfection I also thought it sounded kind of feminine (which I liked).

One of the things I knew about business was that I needed to get some experience before I started my own business. So I finished my broadcast journalism degree at Virginia Tech and then I got a job as a news producer. I worked in the industry six years as a producer and learned every job I could. Then I started thinking back on my business idea. After years of writing about murders and fires and working every Christmas in the news business, I knew that I was meant to do something else. It was a strange feeling as it was my dream job – and I hated it. 

While I was still working for the television station, I got a freelance gig working for a production company and then after February sweeps, I walked away from the news business and decided to start my own production company. The Oprah show was always one of my favorites.  I was very lucky I worked at a TV station where I got to watch her show most days before the news.

One of my favorite episodes was one show where a woman in the audience came to return a pair of Oprah’s shoes. Each year, Oprah auctions all of her clothes and shoes to raise money for charity. One year, a woman who was quite down on her luck, bought a simple pair of flat shoes in the sale. She didn’t even wear Oprah’s size. But she wanted the shoes for encouragement. She said whenever she felt depressed she would just stand in Oprah’s shoes until she felt better. She came to the show to give Oprah back her shoes because she didn’t need them anymore. I talked about this episode so much that when I started my production company, one of my best friends bought me a pair of slippers that Oprah said was one of her favorite things and told me that now I was walking in Oprah’s shoes.  It’s been almost 12 years, and I still have and love those slippers.

In 2005, in addition to running my multimedia production company, I became a professional speaker and small business coach.  It was an unintentional business. So many people called me for business advice and to present workshops and participate on panel discussions that after losing precious work hours each month, I realized that I’d better figure out a way to monetize my expertise. I started with my special report 44 Things To Do Before Going Into Business and that led to my book, Become Your Own Boss in 12 Months which was released in March 2010 by Adams Media.

In 2008, I decided to use Twitter to grow my speaking and coaching business, but when I got to the social networking site, my name was taken.  After I got over the initial shock, my friend Cathy Larkin came up with the idea that I should call myself “SmallBizLady” which has turned out to be the best thing that happened to my brand. In January 2009, I launched this blog as a resource for small business owners.

In early 2010, around that time was book was released, I had an idea for a reality TV show that would send me across the country helping America’s small business owners with their biggest small business challenge and leaving them with an action plan for success. Think of my show as a cross between The Suze Orman Show on CNBC and Tabatha’s Salon Takeover on the Bravo Network.

On May 4, 2010, Oprah partnered with mega producer Mark Burnett, the creator of Survivor and The Apprentice, to find a reality star to create a show for her new cable channel the Oprah Winfrey Network which will begin airing in 2011. 

I happened to see the announcement live on TV that day.  I had a strange feeling as I watched the contest announcement; it was like Oprah was talking directly to me.  In an instant, my cell phone was ringing from three different friends wanting to know if I saw it. They also thought that Oprah was looking for me.   Last week, I posted my show concept video to Oprah.com. Here’s the link http://bit.ly/9z13IT .  Please vote for me. There are no restrictions on voting. You can vote as many times as you want each day until July 3, 2010.

Oprah is also hosting live casting calls in four cities across the country at Kohl’s stores.  Several friends have agreed to go to the casting with me on June 5th.  I am going to get in line on June 4th, as they only promise to see the first 500 people. We are going to camp out in the parking lot — like back in the day for concert tickets.  I will be in line by 10 am Friday morning at the Kohl’s in Linden, NJ feel free to come and hang out with me and my friends in line as we continue this journey to win a show on the OWN Network.     

I believe everything that I’ve been through in business and in the television and production industry has prepared me for this moment—and I’m bringing along my Oprah slippers for good luck! 

Please tell everyone to vote and leave me a comment below about what you think about my pitch video on Oprah.com.

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 for emerging entrepreneurs.  Melinda’s first book Become Your Own Boss in 12 months; A Month-by-Month Guide to Start a Business that Works was released in March 2010 by Adams Media.

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5 Common Myths About Starting a Small Business

By on May 24, 2010 in Become Your Own Boss Tips, Cash Flow & Finance, How to Start, Mompreneurs, Pink Slip Entrepreneurs, Solopreneurs, Starting A Small Business, Women in Business, Your Small Business
The real deal on starting a small business.

What's the real deal about starting a small business?

This is national small business week.  In honor of that I thought I would use my blog to dispel 5 common myths about starting a small business. I chose these five as they are the most common questions I get when I speak around the country and do workshops on how to transition from a job to small business ownership. Entrepreneurship is the only way to build true wealth in America, but you need to make sure that you understand what you are getting into for the long haul.  

Myth #1: Starting my own small business will give me more control over my schedule.

Reality: Starting a small business is not a 9 to 5 job. In the beginning your business owns you—you do not own it or your time.  For many startups, 14-16 hour days are not unusual.  As an entrepreneur, you do 10-13 jobs at once including being the chief sales person, business planner, secretary, payroll manager, human resource manager, brand manager, chief financial officer, technology manager, project manager and bill collector. Carving out time for yourself will be a luxury. If you duck out early to run a personal errand, you’ll need the make the time up once the kids go to bed.  For the first three years, do not plan on spending lots of time on the golf course, or taking off every Friday. Your business will need every minute you have to spare.

Myth #2: I don’t want any loans to start my small business – I can get grants.

Reality:  There’s no such thing as getting a grant to start your small business. Expect that the money to start your business will come from your right or left pocket. Successful startup entrepreneurs save 20-40% of every paycheck for at least 12 months prior to starting the business.

In fact, there are three pools of money you should have before your start a business 

  • An emergency savings account 
  • Enough budget to go for 12-24 months without a paycheck 
  • The first year of operating capital to run your business

Banks do not typically loan money to start-up businesses either. You need to be in business for two to three years to qualify for even a line of credit. The only chance you have of earning money you don’t need to pay back is if you win a business plan contest or new inventor competition, but that’s a long shot.  Now there are some franchises that provide funding, but 20-30% of the loan must come from your own resources.   

Myth #3: My business idea is so great my products will sell themselves.

Reality: Do not fool yourself. Building sales requires time, money, and a disciplined sales process that starts with strategic relationship building. How strong is your network? That’s where your first customers and sales will come from for your business.  What are your weekly marketing activities? Marketing is the engine that fuels a small business — no marketing = no sales.  Even if you have a big client, you do not want to put all your eggs into one basket.  Make sure your client base is diversified.   

Myth #4: I have been successful in corporate America; running a small business will not be too hard. 

Reality: If entrepreneurship were easy, everybody would be doing it. The biggest difference between working in corporate America and self-employment is infrastructure. You must build everything. You will have to do every job until you can afford help. Your corporate job can survive without you for a day or a week.  In your own business, if you don’t work, you don’t eat.  Sick days, hour lunches, health benefits and 401K perks don’t really exist in the start up phase of a small business.  You must be prepared to learn everything you can. If you already know everything, keep your good job—if you can.

Myth#5: Anybody can use my product or service.

Reality: One of the top reasons why small businesses fail is lack of having a niche target market.  Do not make the mistake of trying to sell to anyone that you think has money.  Take the time to develop a customer profile.  You should be able to see the face of your customer and know everything about her. How old is she? Does she have children?  In what country does she live? Does she make purchases using the internet? How much education does she have? What is her income? How often does she buy your product or service?

What other myths are out there about starting a small business?  Please let me know.

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 for emerging entrepreneurs.  Melinda’s first book Become Your Own Boss in 12 months; A Month-by-Month Guide to Start a Business that Works was released in March 2010 by Adams Media.

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Winners of the $25,000 Entrepreneur’s Challenge

By on May 10, 2010 in Branding & Marketing, Grow Your Business, Melinda Emerson @SmallBizLady, Mompreneurs, Pink Slip Entrepreneurs, Solopreneurs, 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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