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Should I put my picture on my business card?

By Melinda Emerson on May 20, 2011 in Ask Smallbizlady, Become Your Own Boss Tips, Branding & Marketing, Business Inspiration, BYOB2011, Customer Service, Grow Your Business, My Recommendations, Q & A Interview, SmallBizChat, Solopreneurs, Your Small Business

Ask @SmallBizLady: Should I put my picture on my business card?

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: “Should I put my picture on my business card?”

Here’s the answer: http://www.youtube.com/watch?v=OKXIfQM-Kn4

If you are a solopreneur or a brand of one person with a business you can use your picture on you business card. Particularly if your business involves visual branding such as photography, make-up artist, stylist it could make sense to use your photo on your business card to promote your business. It could also work will for speaking and coaching businesses, financial services or if you a real estate agent. You just need to have a reason for using your photo on your business card.

For the record, I do not use my photo on my business card. My book is on my business card instead.

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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When It’s Gut Check Time in Your Small Business

By Melinda Emerson on May 17, 2011 in Guest Articles, Your Small Business

From time-to-time things may not go the way you need them to in your small business. When that happens, you need to take a deep breath and figure out what you are going to do. You can always seek the advice of mentors, but ultimately you need to do a gut check with yourself.

Here are 5 things to consider when your business is not going well:

Don’t be an ostrich: A major failing of many small business owners is in not taking their head out of the sand to give their business an overall strategic look. It is vital that you step back and research – look for trade association analysis, economic marks, and consume as much information as is published about your information. But you can’t rely solely on what is published – you need to venture into the real world to ensure the data you’re finding is valid. Networking is critical – go to tradeshows, join your local chamber of commerce, and talk to other business owners in your industry. Talk to different sources to make sure the information you’re receiving is consistent. You can spot trends by speaking to manufacturers and vendors that service your industry – they’re the ones that see what’s coming down the line.
Prepare for battle: Take a coldblooded look at where your market is in terms of how you think it will uptick. Then, look outside of your market to see how the larger picture as the buying habits of your target customer may have changed. Use what you learn to formulate a 6-month and a 12-month plan of action, which should include milestone markers that will be used for you to assess your plan as you execute it. But, don’t panic if it takes a little longer than you expected it might– there are frequent delays and changes in the market, and you have to give your plan time, and keep the faith. It’s important to balance belief in what you’re doing with outside data that confirms you’re on the right bath – large companies have teams of people that do this full-time, but for small business, it falls on the business owner to do so.
Call in backup: Every business owner needs a group of people that they truly trust, but whom aren’t involved in the day-to-day operations of the business. Business owners should seek to create an advisory group of individuals that understand your sector, but aren’t in the trenches with you, to bounce ideas off of and then triangulate accordingly. Small biz owners tend to be isolated, and forget the value of having outside perspective. Large companies have investors and boards of directors, and meet quarterly to get that perspective, which gives them a leg up over small businesses that don’t take the time to connect for insights.
Low, slow, or no cash flow: In order to sustain delays in the market, smart business owners will build in a financial cushion. It is vital that business owners go beyond living week-to-week or month-to-month – you need to think about your plan and how you’re spending your cash. What if several customers are suddenly unable to pay in the set window of time? If multiple accounts receivables are coming in slow, instead of waiting for crunch time, prepare ahead – can you tap a line of credit? Contact your vendors to extend payment terms? Order stock/supplies less frequently? Take a close look and do a cash flow projection to make sure you’re prepared to weather the worst.
The laws of (funding) attraction: Investors are largely still on the sidelines and, unless your company has an Internet play (retail or service), they’re going to evaluate you based on traditional models of revenue and profitability. If you go out for funding, you must be able to allocate time away from your business – and it takes a lot of time, and you have to put together a written plan with backup on financials. For small businesses right now, banks are still very tight. Unless you have perfect credit and a stellar background, the bank’s return to traditional lending guidelines means that your best bet is to go after small business loans backed by the SBA (federal government). If traditional lending sources are not an option for your business, don’t give up hope – there are more large groups of angel investors than ever before, and many businesses survive by reaching out to friends and family.

Quincy Yu, has spent her 30+ year career consulting for big and small businesses across a variety of industries, and currently she serves as President of SeaYu Enterprises, makers of Clean+Green natural pet stain and odor removers.

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Make This May The Month You Become Your Own Boss

By Melinda Emerson on May 11, 2011 in BYOB2011

Contact: Sonia Schenker
(E): sonia@melindaemerson.com
(P): 347-766-4289
FOR IMMEDIATE RELEASE

PHILADELPHIA, PA (May 9, 2011) – Melinda F. Emerson, SmallBizLady is a small business expert and bestselling author who has been featured in The Washington Post, Forbes, Fortune, Essence and Black Enterprise magazines. Known for her savvy approach to ending small business failure, she is crossing the country to coach small business owners through the Become Your Own Boss (BYOB2011) national tour. The conference is designed to give entrepreneurs a healthy slice of the reality of starting and running a successful business.

The half-day program sponsored by http://www.corpnet.com/, will be held in the nation’s capital at Busboys and Poets, 14th and V Streets NW, Wednesday May 25th, 2011 from 8-1pm. Registration is now open for area entrepreneurs seeking to ditch their paychecks and start or grow their own small businesses. All attendees will receive a free copy of Melinda’s new workbook as part of their registration. Seating is limited; tickets are $99 and are available online. Continue Reading →

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Problem-Solving Through Challenges in Your Small Business

By Melinda Emerson on May 10, 2011 in Grow Your Business, Guest Articles, Your Small Business

While entrepreneurs are certain to face challenges from clients, one of the keys to being successful in business is the ability to face problems fearlessly. The three most common problems in business are managing deadlines, managing expectations, and dealing with a changing marketplace. Below, I’ll share with you some of the most common obstacles facing small business owners and some tried-and-true secrets and solutions.

Problem 1: The Late Project

Business is more or less about multitasking. Especially as an entrepreneur, us businessmen (and women) inevitably juggle a lot of things at once – whether it’s juggling advertising work with filling client orders or juggling the many obligations we have in our lives as a whole. With this in mind, one part of business planning is crucial: Having a “game plan” for when something comes up.

For example, let’s say you have a translation job. You also know that you have a meeting with a PR representative, a few advertising-related errands, and a family event that same week. Or let’s say you don’t know about all of them, but you can easily estimate some setbacks – even if it looks like an easy project. If you have a translation job, and you need three days to complete it, tell the client it will take you five days.

Another example: Have you ever noticed how an airplane always manages to leave late—and arrive early? Very simple. It’s just a matter of playing with the math. If they tell you that are going to leave at 8 o’clock, and arrive at 4 in the morning, and really, if you left at 8 and landed at 3, by simply playing with the numbers on the slip of paper that come with the ticket, you are happy that you got in 15 minutes early instead of annoyed that you came in an hour late.

The Solution: Overestimate how much time it will take you to complete a project. Give that date to the client from the beginning. Continue Reading →

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Ask @SmallBizLady: How do I get started with social media?

By Melinda Emerson on May 6, 2011 in Ask Smallbizlady, Your Small Business

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 do I get started with social media?

Here’s the answer:

If you want to start using social media as a lead generator for your small business here’s 4 steps to take to get started:

Develop goals (how many prospects, subscribers, website hits, etc.)
Conduct a listening strategy (know where your customers are hanging out online)
Have a great website that solves your customer’s problem within 3 seconds!
Start using social media by setting up a personal profile on LinkedIn

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.

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 at: 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”, and she writes a column for www.secondact.com and is an instructor for the Black Enterprise Small Business University.

P.S. Want an “I [heart] #SmallBizChat t-shirt? It’s available! for $20.00 plus s/h sizes M-L-XL-2X

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How to Use the Four Types of Income to Your Advantage

By Melinda Emerson on April 19, 2011 in Cash Flow & Finance, Guest Articles, Your Small Business

“The poor man’s budget is full of schemes”. – Proverb

“The definition of insanity is doing the same thing over and over and expecting different results”. – Albert Einstein

How are your budgeting strategies doing?

As a small business owner, it can be far too easy to get stuck in a bad budget rut. We set lines and parameters; we stick to them; and, after a while, we get so engrossed in our new budding business that we forget to check up on our budgeting health once in a while.

Let’s talk about the four kinds of income:

1. Work income: You work in the pizza store, and that’s work income – money you’re paid for the hours worked.

2. Transactional income: When I come into the pizza store and buy a piece of pizza, I give you money and you give me pizza. The deal works for both of us. I may come back; I may not. The transaction is finished and a one-time deal.

3. Renewal income. This income renews itself; one real-life example may be a magazine that you continue receiving, renewing every year when the notice comes. This is much better than the other forms of income because you don’t have to keep looking for new people. The same people come again and again–repeat business. Most people will continue getting the same magazine they like.

4. “Till forbid” income. Every single month, money is charged to your credit card or deducted from your bank account–until you say stop, whether it’s a membership site online, or any other form. For example, business magazines automatically charge your card at the current rate. GoDaddy, a popular company for registering domain names, provides this service for the small amount of $7.49. Unless you choose otherwise, the domain name will automatically get renewed every year. When they do it automatically, as opposed to giving you a notice that your domain is going to expire, you will be charged $7.50 (or more, depending on the current renewal rate). That may not sound like much unless you have 50 or 100 domains, or if you just don’t like wasting money you realize they’re really getting you. All subsequent years, your rate will be billed at the non-discounted rate which is currently of $11.99. After the first year at a special rate, the automatic renewal is at full base price. Another example: NEBS is a company that sells blank checks and stuff like that. When you try to order from them the first time, you get what’s called a mail code, which gives you 50% off the price. You’re getting a steal of a deal. You get 1000 envelopes for pennies. However, when you reorder, there is no mail code.

GoDaddy and other online registrars work the same way. They are not exactly giving you the perceived “steal of a deal”; their real money is made on the automatic renewal at a coupon-free, full price. This also works well because by artificially raising the prices, you think of the “true retail price” as being discounted and you feel so slick about having found a coupon code online- while, in all honestly, you are actually paying the “true retail” price.

In business, you really want to try to get one of these forms of income. Work income, once you stop working, you don’t get this anymore. Transaction income, if you’re closed for the day, you don’t get any more income. And out of the two remaining incomes, the “Till forbid” income is the much better income than renewable. You can automatically charge your customer’s credit card every month until they cry, “Stop!” – and the potential for profit triple, because many people may forget to cancel.

What’s my bottom line? Funnel your income into the most profitable type possible. If you can increase the amount of repeat income, you can increase the value of your business tremendously.

Rabbi Issamar Ginzberg is often called “the marketer for marketers”, a strategy and marketing advisor, ideas generator and action planner, experienced mentor and friend consulting to independent professionals and businesses large and small worldwide. For more info visit: www.issamar.com or reach him on Twitter at @RabbiIssamar . Find secrets like these and more at his blog: www.issamar.com/strategy

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Where to Find the Money to Start Your Small Business

By sss4success on April 18, 2011 in Become Your Own Boss Tips, Cash Flow & Finance, Starting A Small Business, Your Small Business

One of the most common questions that I get as SmallBizLady is about start-up financing. ”Do I know where people can get a grant to start their small business?”. Now Hear This: BYOB doesn’t just stand for Become Your Own Boss! BYOB also stands for Be Your Own Bank! There are NO grants! When you are starting out in business you must come up with your own money to invest into your brilliant idea. You also need to have resources to maintain your household while you are building your business. You are your business’s credit and debt. Now there are micro-loan programs when you may be able to borrow up to $25,000, but you better have a great business plan to get it.

If you are ready to start your business, you must develop a plan for yourself to save more money and become debt free. Now, I am not talking about paying off your mortgage, but I do mean everything else. I am talking zero debt—meaning no credit cards, no car payments. Basic living expenses only. Eliminating your debt will allow you to always make decisions that are in the best interest of your business. You also need to establish zero debt to free up your credit capacity. When I realized that I wanted to leave my job to start my first business, I took out a home equity loan (which you need to do while you are still working and can prove income) and paid off every bill I had, even my car. I used home equity because you can write off the interest paid against your income taxes.

Getting your house in order financially will be one of the first milestones on the road to starting your own business.

To find the money to start your business, take these steps:

Develop a plan to eliminate all debt. Make a list of all debt, the balance owed and the interest rate. It is best to start with the credit card with the lowest balance, while you continue to pay the minimum fees on the others cards to keep them current. By starting with the card with the lowest balance you will boost your confidence about your personal finances. Next, should be the card with the highest interest rate. Keep working your way down the list.
Make of list of what you need at the store. To avoid impulse buying, take a list with you to the all stores and do not deviate from it! Be careful not to go grocery shopping when you are hungry. It is very hard to stick to your list that way.
Keep driving your car. Drive you car until it stops running. As a new business owner, you will no longer be able to afford to upgrade your vehicle every two years. Buy a reliable car and take care of it, so you can ride without a car payment as long as you can. (I still do this! My car is more than five years old).
Cut back on trips to Starbucks, Dunkin’ Donuts, and cut your cable bill. The money you spend each month on unnecessary extras can really add up. Treat yourself once in a while to a pay per view, but the pay channels need to go. You’ll be shocked how the money you save will add up.
Check out the library. You can borrow books, magazines, and the latest DVDs from the library. You can also make requests and they will order things for you. If you’re a serious book junkie like me, find a good used bookstore or buy used books on Amazon.com. The books will still be new to you.
Drink at home. Stop drinking alcohol in bars and restaurants. If it’s beer, wine, or mixed drinks that you like, they are much cheaper when you pour them yourself. Pick up a six-pack or a few bottles invite over some friends and hang out at your home.

You will start your business if you develop the ability to control your spending and cut costs. Follow this advice. I promise you will find money you never realized that you had. You cannot kick your addiction to your paycheck all at once. It will be a gradual step-by-step process, but you can do it!

Do you have any other cost saving suggestions for start-up entrepreneurs?

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, and publishes a resource blog at: 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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Ask @SmallBizLady: How Do I Identify My Target Customer

By Melinda Emerson on April 15, 2011 in Ask Smallbizlady, Grow Your Business, Starting A Small Business

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 Do I Identify My Target Customer?

Here’s the answer:

Determine your target customer’s pain points
Examine the competition
Figure out what percentage of the market you can realistically capture
Talk with our potential target customer
This will also help your figure out your target customer

I’m always here as a resource.

P.S. Want an “I [heart] #SmallBizChat t-shirt? It’s available! for $20.00 plus s/h sizes M-L-XL-2X

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SCORE has a new resource for small business owners

By sss4success on April 13, 2011 in My Recommendations, Technology, Your Small Business

On April 12, SCORE kicked off a national E-Business Now initiative. It’s the first-ever public/private partnership to encourage digital literacy by U.S. small businesses. The consortium formed in response to The Broadband Plan released by the Federal Communications Commission. They have created a new website with great technology resources: www.ebusinessnow.org

SCORE is also doing regional events to help small businesses understand how technology can help them run more efficiently and compete more globally. The entire effort focuses on leveling the playing field for business success.

The next regional event will be held Sept. 27,2011 in Philadelphia, PA so stay tuned for details.

Fortune 500 companies and leading technology firms are partnered with SCORE to provide training, tools, and resources to small businesses. Partners include AT&T, Best Buy, Cisco, Constant Contact, Google, HP, Intuit, Microsoft, Skype, and Time Warner Cable Business Class. The small business partner is DRT Strategies.

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Getting Started as a Work At Home Mom Business Owner

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

If 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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Now Read This: Small Business Taxes Made Easy

By Melinda Emerson on April 6, 2011 in Cash Flow & Finance, My Recommendations, Your Small Business

I like this book Small Business Taxes Made Easy: How to Increase Your Deductions, Reduce What You Owe, and Boost Your Profits by Eva Rosenberg (@TaxMama).

It is great no-nonsense tax-advice! Eva is passionate about helping small business owners pay the least business taxes legally possible, but she also provides information (however tough it may be to read) on how to make your business more profitable. This book is full of effective business tax strategies that are good at tax time and throughout the entire year as you are running your small business. I conducted an interview with her to ask her more information about her book. Check out her other tax resources at www.taxmama.com

SmallBizlady: What are the tax characteristics of successful business owners?

TaxMama^®: They take the time to do three primary things for their business.

Foundation: They take the steps outlined in Chapter 1 of Small Business Taxes Made Easy to get the proper licenses, file with the proper government agencies, get the minimum requisite insurance coverage, and find the best advisors, vendors and resources for their business.
Prosperity: Successful business owners have business plans. They look at the big picture relative to their business goals, tying them in to their personal and family goals. Not only is this essential for building a good life, it ensures the business becomes ever-pro profitable, and protects them in the event of tax audits.
Tax Planning: They meet with their tax advisors, and perhaps their advisory team, at least twice a year to lay out a tax plan and to rebalance it as the year’s profits or losses emerge.

o This avoids the complaint one talk show host got from a local CPA. His client complained that his CPA wasn’t letting him take the medical and health care insurance deductions that TaxMama^® said his business should have.
o Why couldn’t he use those deductions? Simple. He had never taken the time to call his CPA to do the planning to establish the written plan his business needed in order to claim those deductions. Continue Reading →

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Getting a Financial Game Plan For Your Small Business

By Melinda Emerson on March 31, 2011 in Q & A Interview, Q & A Interviews, SmallBizChat

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 @DorethiaConner Dorethia Conner, MBA, is president of Conner Coaching. Dorethia provides results-oriented personal finance and business coaching services to small business owners . Known for her no nonsense approach and charismatic personality, Dorethia is passionate about helping entrepreneurs successfully manage their money and increase their bottom line. For more information on her coaching services www.connercoaching.com.

Smallbizlady: Why is it important for small business owners to develop a financial game plan?

Dorethia Conner: Without a plan you won’t know the potential for your business. It’s important that you reach your growth goals and know where you stand financially. Every business should have a revenue goal to reach each year that is more than the previous year, along with a strategic plan outlining how they will reach that number.

Smallbizlady: What is the first step to creating a financial game plan?

Dorethia Conner: The first step is to evaluate the previous year’s finances and initiatives. You want to look at your marketing, operating processes and expenses. For example, what marketing campaigns worked? How much did they cost and what % of sales can be attributed to each campaign? Does your business flow smoothly? Is there a more efficient way to run it by adding technology or processes? Did you have to hire new staff or contractors and how did that help your bottom line? Is it working? Did you invest in machinery, buildings or other expenses, did this increase or decrease your bottom line? What is the expected return on investment for the next year, 3 years, etc.? Essentially, you want to fairly evaluate where you are spending your money and eliminate what isn’t generating income in a reasonable amount of time.

Smallbizlady: What would a strategy for the current year consist of?

Dorethia Conner: It will involve: 1. Setting your sales/revenue goals 2. Developing and implementing a marketing strategy to meet those goals 3. Having a plan in place for allocating the revenues that come in. After you’ve paid your monthly business expenses – including your salary, it’s necessary to have a specific place for additional revenues

Smallbizlady: Is there an effective way to manage business banking?

Dorethia Conner: Number one is to keep personal and business banking separate. I know we’ve all heard this, but it never fails that a client comes in who is mixing the two. I also can’t stress enough the importance of good accounting software that links with your bank accounts. Online banking saves the day in that it allows you to pay your expenses, transfer money, etc. without leaving the office. Also, all transactions can be downloaded into the accounting software. This makes reconciling and record keeping must easier.

Smallbizlady: What is the best way to set up business bank accounts?

Dorethia Conner: Business Checking – General Monthly Expenses

Business Savings 1 – Allocate quarterly, annual, etc. business expenses ie. taxes, licenses, insurance, etc. Business Savings 2 –– Lean times – an emergency fund for your business

Business Savings 3 – Growth, new development, etc.

Smallbizlady: What are some strategies small business owners can use to scale back expenses?

Dorethia Conner: Re-evaluate office space, is it too big or too expensive, what alternatives do you have? Can you operate effectively in a cheaper space or allow employees to work from home? Do you need to warehouse your products or will using a fulfillment center help slash your overhead and other costs? Consider equipment as well, do you have gas guzzling trucks where more economical vans will serve the same purpose? This will not only save you money on gas, but maintenance as well. Are you paying for expensive monthly advertising that isn’t yielding any results?

Smallbizlady: What role does business debt play?

Dorethia Conner: Business debt can hinder your financial game plan, especially if you are overextended. Make sure you have a handle on what you owe and are current on payments. Develop a debt payoff plan. Here are a few action steps you can take:

List all your business debts so you can know how much money you will need to pay it all off. Include the money you borrowed from your rich uncle. I tell my personal and business clients to attack their debt paying off the smallest amount to the largest. This gives them a sense of accomplishment.
Develop an attack plan – what will you have to bring in financially to cover expenses and have extra to pay down your debt. Is there a contract or big deal you can go after?
Determine what you are willing to do to make it happen, stick to your goals. What sacrifices are you willing to make in your personal and business life, to get out of debt? Continue Reading →

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Do you have an Army of Entrepreneurs in your company?

By Melinda Emerson on March 30, 2011 in Business Inspiration, Grow Your Business, My Recommendations, Your Small Business

Author Jennifer Prosek thinks that’s what you need to build long term success. She’s the founder and CEO of CJP Communications, an award-winning international public relations and financial communications firm. In her new book, Army of Entrepreneurs: Create an Engaged and Empowered Workforce for Exceptional Business Growth (AMACOM 2011) , Prosek teaches businesses how to inspire and motivate their employees to think like entrepreneurs to ensure the optimal success in the business. The two things that stood out in this book to me was how Jennifer proved with her own business how to emerge from a financial rut by engaging her company’s employees to solve problems. I was also intrigued by her Commission for Life™ incentive program. Too often entrepreneurs think they have to do all the rainmaking, but Prosek contends this is not so. Here’s a recent interview I had with Jennifer Prosek to get more insight into her new book, Army of Entrepreneurs:

Smallbizlady: What is an ARMY OF ENTREPRENEURS?

Jennifer Prosek: An Army of Entrepreneurs is an internal force of committed, creative employees. It is also a proven management and leadership model that can help business owners and managers grow their businesses by tapping and harnessing their existing workforce. There’s a replicable process for introducing and implementing the Army model in any organization and the best part is that the assets needed to initiate this new model are already in place – since they are your current employees.

Smallbizlady: How did the strategies that worked for your firm evolve into the management model you share in your new book?

Jennifer Prosek: Once I successfully deployed this on my own company, employee confidence and satisfaction soared. Identifying, nurturing, and watching the entrepreneurial spirit grow within my company has been a source of great pleasure to me both personally and professionally.

At CJP Communications, the Army model has helped to forge stronger teams, increase sales and client satisfaction, and develop employees who truly embrace the company’s brand. I know that it can do the same for other companies if they follow the roadmap outlined in the book.

Smallbizlady: How does this management model inspire and empower employees to develop an “owner’s mindset?”

Jennifer Prosek: With innovation and creativity driving the new economy, human capital has never been more important. But old management models don’t truly encourage the kind of entrepreneurial thinking needed for success. That’s where the Army model comes in. Every employee is empowered to develop an “owner’s mindset” and use his or her own resources and initiative to help the business succeed. That may mean coming up with a new product, a breakthrough idea for a client or a streamlined process. The unifying idea is that each person becomes a powerful force for growth within the organization.

Smallbizlady: What are the four key steps entrepreneurs need to take to lay the groundwork for creating a business environment and culture conducive to entrepreneurial behavior in order to increase growth and drive success?

Jennifer Prosek: The Army of Entrepreneurs model is comprised of four key components including an entrepreneurial culture; a powerful incentive program; a workforce that has a big-picture understanding of how a company works and makes money; and an ongoing program to maintain momentum. Specifically, to create an Army of Entrepreneurs business leader needs to follow the below steps:

a. Establish and nurture an entrepreneurial culture. Culture isn’t optional. To truly build an Army of Entrepreneurs, companies must have the right practices and outlook. The four elements of a core culture are authenticity, commitment to people, commitment to the business, and continuous effort.
b. Create a Commission for Life™. At CJP, any person who sets up a meeting that leads to new business – that’s it, just sets up the meeting – receives a 5 percent commission for the life of that account. While this is a cash reward, any ongoing incentive works. The idea is to create a reward that enables employees to align their own financial/professional goals with the growth/success of the company.
c. Teach them the business. While many businesses are focused on teaching employees the skills they need to do their jobs, an Army approach is focused on “teaching the business” – how it makes money, where clients come from, why they stay or go and other big-picture issues.
d. Maintain momentum. Building and sustaining an Army of Entrepreneurs and the culture that sustains it takes ongoing effort, initiative and originality. It’s critical to maintain momentum; inertia is the enemy.

Smallbizlady: You stress the importance of giving everyone in a company a financial incentive to embrace entrepreneurial behavior. Please explain how your “Commission for Life™” program does this, and why it works?

Jennifer Prosek: The crux of the Army strategy is to create an incentive that rewards the employee and helps align his or her personal and professional goals with that of the company’s. To kick-start the Army, I introduced the “Commission for Life™” program, in which the employee who sets up the first introductory new-business meeting—which turns into a full-fledged client account—receives a percentage of the revenue for the life of the business relationship. This “nudge” is essential to lighting a fire under your staff.

The reason this program works so well is that it levels the playing field and gives everyone at the firm from an executive assistant all the way up to the CFO the same opportunity to leverage their network of contacts to help drive the company’s growth. It also increases their individual financial situation and status at the agency.

Smallbizlady: Outside of financial incentives, what else can companies do to give employees at all levels a “nudge” towards embracing their entrepreneurial potential?

Jennifer Prosek: For some, the best incentive may be strictly financial. For others, it may involve more autonomy, creative control, or public acknowledgment of their good entrepreneurial ideas and behavior. The idea is to create an ongoing reward system that enables employees to align their own professional goals with the growth/success of the company.

While this book does focus a lot on what larger firms can do to become entrepreneurial, I do think there’s a lot of value for entrepreneurs. Grab your copy of Army of Entrepreneurs today.

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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Surveys Made Simple

By Sonia_YJMO on March 22, 2011 in Guest Articles

Get to know your customer. This theme drives not only blog articles but also magazines, business books, textbooks, and executive meetings. As I teach classes to aspiring entrepreneurs, I find myself saying the same thing. But my students have posed a very real, very astute question to me, “How do we do that?”

When I mention the word “survey,” their eyes glaze over. Surveys are a major expense they can’t afford. Or are they? There are many ways to conduct a successful survey without spending a lot of money. Here are a few tips to make the best out of yours whether you have a long client list or are just getting started.

Use yes/no and open-ended questions. Ask what you really want to know and leave participants the opportunity to share their feedback. This often means striking a balance between yes/no and open-ended questions. There are often basic questions you need to ask. And there will be times when clients need to share or suggest ideas. Give them the chance to do so. Asking them to explain what you do well and where you can improve is a start.
Ask for demographical information (but include it at the bottom of your survey). This information is helpful for you, but not everyone is comfortable answering questions about their age, race, income, marital status, and zip code. So ask for this information at the end of the survey. Let them focus on the open-ended and yes/no questions. Then if they choose not to provide their demographics, you don’t walk away empty-handed.
Explain the purpose for the survey. Somewhere on the survey explain why you are conducting it. If client/prospect participation is optional, then tell them that too. In some cases, participation is required. This is usually found when product/service recommendations will be given based on client answers. Think healthcare and financial services. Also note if the survey is confidential. And if it is, make sure you work hard to keep it that way.
Ask “Would you recommend us to others?” This question, according to a former professor of mine, is the motherload of all survey questions. Better than, “would you do business with us again,” it gets to the heart of how pleased the customer is with your business. If the experience was okay, the customer might come back but not refer others. It’s a missed opportunity and a false sense of security. You don’t want to be just “okay.” You want to be stellar. You want your customers to come back and bring their friends with them.
Look for ambiguous or over-simplified answers. If answers don’t relate to the questions it’s time to tweak the survey. Your questions may be too broad and need more focus. Take the survey yourself. If you need more than three minutes to complete it, according to this same professor, it’s time to whittle it down (unless you need details for product/service suggestions). And if you are just as confused as your clients when taking it, you probably need to proofread it and get a second pair of eyes to refine it.

Developing surveys doesn’t have to be terribly complicated. But you do have to be willing to put forth the effort to gather what you need. Over time you will likely need to ask different questions as trends and preferences change. It isn’t a static document. Instead it is ever-changing as it brings you closer to your clients and prospects. From there you can create a customer experience that exceeds their expectations (because at least now you’ll know what those expectations are).

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 www.sharpmindmarketing.com or on Twitter at @Morgan_LP.

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