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How to Be a Small Business Success Q&A interview with Jay Goltz

by Melinda Emerson, #SmallBizChat on December 8, 2011 in Grow Your Business, Q & A Interviews, SmallBizChat

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 Jay Goltz @Jaysmallbiz Jay has started five “old school” businesses over the last 33 years, and wrote “The Street Smart Entrepreneur”. He is the lead blogger for the New York Times You’re the Boss blog. http://boss.blogs.nytimes.com/author/jay-goltz/

SmallBizLady: Many people are looking for that new big idea. Any tips?

Jay Goltz: Most successful businesses are not new ideas at all. They are better execution of an existing concept. Did Starbucks invent coffee? For every Facebook, there are 100,000 old school businesses.

SmallBizLady: With all of the resources available today, why is the failure rate for new businesses still as high as 75% or so?

Jay Goltz: To be successful in business requires a basic skill set in marketing, finances and management. Most people are great at one, maybe good at the second, and are incompetent at the third. It is like a three-legged stool with one short leg. You fall on your butt. Additionally, some businesses just don’t work for reasons that at not apparent when you are in the exciting start up phase.

SmallBizLady: Do you think it is safer to start a business with a partner so you can share responsibility?

Jay Goltz: That is probably mistake number one, before you even open for business. People go into business with their friend or relative because it is more fun, more comfortable, and less scary. But it is not necessarily safer. A strategic partnership makes sense when both parties bring complimentary skill sets. When they don’t, one person usually works harder than the other, or one is just more critical to the success of the company, if things go well. If things don’t go well, it can create a hostile environment.

SmallBizLady: What are common mistakes you have seen that have ruined what might have been a successful business?

Jay Goltz: One of the bigger ones is the idea that you can just hire a bookkeeper or accountant to “take care of all of that number stuff”. Every entrepreneur should have a basic understanding of accounting. Income Statement, Balance Sheet, and the difference between cash flow and profit.

SmallBizLady: Now that you have over 100 employees, what do you now know about management that you didn’t know when you started?

Jay Goltz: I believe that 75% of management is hiring the right people in the first place. Most entrepreneurs do what I call “accidental hiring” when they start. They hire their friends, their friend’s cousin, the neighbor’s kid… Great companies have great hiring protocols.

SmallBizLady: Do you have any tips on hiring?

Jay Goltz: Sure. First of all, make sure that the person doing the interviewing is a good listener. That is frequently NOT the entrepreneur. Ask compelling questions that get the person to talk. Check references. Think “guilty until proven innocent”. Many people looking for jobs will be a horrible fit for your company. Probably only one in ten “decent” resumes will be a great fit.

SmallBizLady: What is the hardest part about building a staff?

Jay Goltz: “Unhiring” the wrong people. Firing. Many bosses avoid confrontation and hope that an under performing employee will get better. Sometimes they do, but many times they won’t, or can’t. It is a harsh reality, but the one of the boss’s many jobs is to make sure that the right people are in every position. It isn’t always pretty.

SmallBizLady: What is the best way a new company can market themselves?

Jay Goltz: Marketing is about figuring out who your best potential customers are and figuring out what advertising vehicles to use to reach them. It is also about determining what the best message is.

SmallBizLady: What do you tell people who say that “All I need is to find new customers to get profitable!”

Jay Goltz: Keeping old customers should be the first order of business. The next thing I always look at, and frequently find problems with, is the pricing of their products or service. It is a common and costly mistake that many businesspeople make. They don’t understand their costs, and they are undercharging. As a result, they are busy but unprofitable. They assume that more business will fix the problem, but in reality they will just get busier and still not make money.

SmallBizLady: How did you go from working in the business to working on the business?

Jay Goltz: It is all about having the right people, good training, and then delegating. You also have to understand the income statement enough to figure out how to pay all of these people. It really involves everything I have just talked about.

SmallBizLady: You always hear the mantra “never, never, never quit”. Do you think that is true?

Jay Goltz: Yes and no. That is a very misquoted piece of a speech that Winston Churchill gave during WWII. The rest of the sentence includes “unless in good judgment”. Besides the five businesses I own are another five that I started and closed. Sometimes things are not well thought out, can’t work because of some unforeseen problems, or maybe you are just miserable. With that being said, being successful does require tenacity to weather all of the storms that are sure to come. Going down with the ship is not being tenacious, it can be delusional.

SmallBizLady: How do you keep balance as an entrepreneur?

Jay Goltz: You mean try to keep balance! It is hard, especially in the early stages. In most cases, it is a case of tolerable sacrifice. Did I go to all of my kid’s baseball games? No. But many of them. Was I at home every night for dinner? No, not even close. Did I pay a price for building a successful business? Absolutely did. Do I have any regrets? Yes, but too few to mention. (My Way-Frank Sinatra) There is an old saying that there is no old man laying on his deathbed wishing that he would have spent more time at his business. They got it wrong. It is the day that you hopefully drop them off at college. In some ways it worse. Instead of dying you get to spend years feeling guilty! Here is what I have figured out. It is not the income that matters, but the outcome.

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 the #1 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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The Minority Entrepreneur Accelerator Program Could Be Your Answer

by Melinda Emerson on June 8, 2011 in Become Your Own Boss Tips, Branding & Marketing, Business Inspiration, BYOB2011, Cash Flow & Finance, Customer Service, featured, Grow Your Business, My Recommendations, Social Media, Technology, Your Small Business

Comcast Interactive Capital, the venture capital affiliate of Comcast Corporation, one of the world’s leading media, entertainment and communications companies, today announced that is has partnered with DreamIt Ventures (“DreamIt”), the leading technology accelerator for entrepreneurs, to provide seed funding, training, mentoring and other benefits to five minority-led startups through DreamIt’s accelerator program. The partnership with DreamIt, entitled the Minority Entrepreneur Accelerator Program (MEAP), is Comcast Interactive Capital’s first investment initiative from the $20 million fund created by Comcast as part of the NBCUniversal transaction that is committed to expanding opportunities for minority entrepreneurs.

Comcast Interactive Capital and DreamIt are now accepting applications and will select five minority-led startups to participate in DreamIt’s three-month accelerator program taking place in Philadelphia this fall. The deadline for applications is July 8^th and the program will commence on September 9^th.

Kerry Rupp, Managing Director of DreamIt, said, “We are thrilled to have Comcast Interactive Capital as a partner and are looking forward to working with them. DreamIt is proud to provide assistance and opportunities to help entrepreneurs grow, and we know that Comcast will provide invaluable expertise and partnership to this process.”

MEAP will provide minority entrepreneurs with the opportunity to engage in an intensive, company-building experience. Applicants who are accepted into MEAP will be a part of DreamIt’s broader Fall 2011 initiative in Philadelphia and will be offered the opportunity to learn from, and be mentored by, recognized experts in marketing, brand building, business development, financial modeling, business plans, distribution and customer acquisitions. In addition, they will be provided with office space, working alongside the other startups selected and be provided with donated legal, accounting and administrative help. At the end of the three-month period, the startups will have the opportunity to pitch to venture capital and angel investors at a demo day in Philadelphia to secure further funding to create a sustainable business.

For details on how to submit an application for the Comcast Minority Entrepreneur Accelerator Program, please visit the DreamIt website atwww.dreamitventures.com/about/Comcast-MEAP.php.

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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Blogging, & Handling Corporate Inquires & Monetizing your Online Brand.

by Melinda Emerson on June 3, 2011 in Ask Smallbizlady, Become Your Own Boss Tips, Business Inspiration, BYOB2011, Customer Service, featured, Grow Your Business, My Recommendations, Social Media, Technology, Women in Business, Your Small Business

Check out this quick video from the Black Enterprise Entrepreneurs Conference. Fellow blogger Jewel Figueras of http://www.JewelsFabLife.com was interviewed by LaShanda Henry creator of SistaSense blogs for entrepreneurs and the Black Business Women Online Social Network.

http://www.sistasense.tv/smallbizlady-and-jewelsfablife-talk-blogging-and-working-with-brands-part1/

We discussed blogging, handling corporate inquires and monetizing your online brand. Enjoy!

I’m always here as a resource.
If you have a question for Melinda Emerson, SmallBizLady, leave a comment on this blog using thecontact us page or send me a note on Twitter @smallbizlady, on Facebook atwww.facebook.com/smallbizlady or you can hit me up on www.linkedin.com/in/melindaemerson

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Do you need a Small Business Makeover?

by Melinda Emerson on June 1, 2011 in Ask Smallbizlady, Become Your Own Boss Tips, Branding & Marketing, Customer Service, featured, 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.

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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4 Things All Entrepreneurs Should Do On LinkedIn

by Melinda Emerson on May 31, 2011 in Ask Smallbizlady, Become Your Own Boss Tips, Before You Start, Branding & Marketing, Business Inspiration, featured, Grow Your Business, Social Media, Solopreneurs, Women in Business, Your Small Business

Linked in Logo

LinkedIn is important! 75% of all professionals in the US have a LinkedIn profile, which means if you want to do business you must have one too. LinkedIn is powerful tool that you can use to promote yourself if you are an individual consultant or a company with 2 or more employees. Here are my four tips that all entrepreneurs should do on LinkedIn.

Make sure your profile is 100%: If you do not have a headshot, please add a profession one. Typically, business owners who are not 100% lack recommendations. Look at your connections and ask at least three people to write why they love doing business with you. To make it easy, write the recommendation for them. This might be rough, but go ahead and do it. Actually, you should get in habit of asking anyone you interact with to give to a recommendation. I have over 47 recommendations and counting, you can never have too many.

Know Your Keywords: Your keywords should be spread across your profile. First your description of who you are should include keywords that your target customer would use to find you on the internet. Your summary and skills should also be peppered with keywords. This will also help you appear higher in Linkedin searches for experts.

Join LinkedIn Groups: You can join up to 50 groups on LinkedIn. You should join at least 10 groups that have your target customer in the group. You should have a strategy for how you will engage and attract members of the group to connect with you. Many groups allow fellow members to connect even though you do not know each other.
Answer Questions: One of best ways to standout in LinkedIn is to answer questions. It should become a part of your social media routine. Try to answer two to three questions a week and see how many new connections you will make for your business.

LinkedIn is a powerful tool and a great way to connect with decision makers. Make sure you are in the best position to promote yourself and your business online. Do you have any other LinkedIn secrets to promote a small business? For more tips on how start or grow your small business subscribe to Melinda Emerson’s blog http://www.succeedasyourownboss.com.

Melinda F. Emerson, known to many as SmallBizLady is one of America’s leading small 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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#SmallBizChat Interview with Small Business Expert Jane Applegate

by Melinda Emerson on May 5, 2011 in Q & A Interview, SmallBizChat, Your Small Business

small biz chat with melinda emerson

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 Jane Applegate @Janewapplegate Jane is the author of 201 Great Ideas for Your Small Business. (John Wiley & Sons 2011) The third edition of this best-seller was released in April. Jane is a former syndicated columnist for the Los Angeles Times and an award-winning writer and producer. Her company, The Applegate Group Inc. creates customized small business content for corporate clients including American Express, Pitney Bowes, Cox Communications and Montecito Bank. She is also founder of The Great Ideas Network, featured on http://www.201greatideas.com

SmallBizLady: Why is this a good time to be running a small business?

Jane Applegate: So much has changed in the past five years. Small business owners now have access to so much affordable great technology and equipment. I rewrote the tech section of 201 Great Ideas for Your Small Business to include Facebook, Twitter and all social media platforms. Even the tiniest company can now appear much bigger online.

SmallBizLady: Thousands of small businesses failed during the Great Recession. What did the savvy ones do to survive?

Jane Applegate: Although many companies went under, hundreds of thousands made it through by cutting their overhead costs, moving back into their homes and garages and reaching new customers online. With cash flow being the toughest business challenge, keeping some cash flowing is essential to survival.

SmallBizLady: How easy is it to be starting a new business right now?

Jane Applegate: This is a great time to be starting a business. Technology has never been more affordable or accessible. In fact, I’ve been speaking about how easy it is to start a business in ONE day with only $2,000. You can wake up in the morning with a great idea, register a website, buy a powerful computer, order a smartphone, design a basic website and sign up for a marketing platform like Constant Contact, all before you go to bed. I’m working with several great online companies including Elance.com, a virtual talent agency, and HubSpot.com, which built my website and helps us generate inbound traffic. Continue Reading →

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What is a Press Release and How Can a Small Business Use Them? Part 1

by Melinda Emerson on April 5, 2011 in Branding & Marketing, Grow Your Business, Guest Articles

One tool in the small business PR toolkit should be the news release (also called a media or press release). It’s not as hard to use as it may seem, and any small business including solopreneurs can make use of this tool. Most articles on releases talk about how you write them, but the most important parts are really what you are writing it about, and who you are writing it for. A news release starts with finding the ‘news‘, with identifying the ‘what‘, then linking it with who would actually want to read this info, and what publications they read (I’ll cover the how to write a release in a second post in this series).

What kind of results can you expect from a news release?

There are three main results from a well-written, well-planned release:

Increased site traffic via search engines, which often pick up online releases and social media releases (I’ll cover the social media release in part 2).
Pick up by other sites that expose your news to their readers, which in turn can increase your site traffic.
And the more traditional use of releases – attracting the interest of a freelance writer, reporter or editor at a publication who either writes a story, or contacts you for more info or an interview and then, hopefully, writes a story.

Continue Reading →

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3 Technology Tools For Your Small Business

by Melinda Emerson on March 23, 2011 in My Recommendations, Technology

I love to share great free resources that can save you time and money in your small business. Here are a few free software suggestions that I’m sure you’ll find beneficial to your business.

If you embrace technology tools you’ll be amazed how much more efficient you will be each day. My three great finds are:

1) Dropbox.com – Dropbox is the easiest way to store, sync, and, share files online. There’s no complicated interface to learn. It works seamlessly with your operating system. It’s a great way to make sure you have the right version of any document, which is really helpful when you are working on a team project. Dropbox allows you up to 2GB of storage free and you can sync your files of any size and across all your computers automatically.

2) Rapportive.com – Rapportive shows you everything about your contacts. You can use this service to connect to your contacts across their entire social media footprint on Facebook, Twitter and LinkedIn. It works right inside your email inbox. It helps you know what the web knows instantly. If you use Gmail, it replaces all those Google ads with helpful information.

3)Tungle.me — Tungle.me is a scheduling application that syncs with your existing calendar. It eliminates double-bookings and time zone mishaps. The Tungle.me application supports Google, Outlook, Apple iCal, Entourage for Mac, Lotus Notes, Windows Live, Yahoo! and connects to major social networks including Facebook, Plancast, TripIt, LinkedIn and Twitter.

Have you come across any resource lately that would help small business owners? Do tell.

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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Are You an Authentic Writer? Creating Trust for Greater Sales.

by Melinda Emerson on March 1, 2011 in Guest Articles

The internet is overflowing with marketers and bloggers. Every search reveals hundreds of posts. At last count, WordPress houses millions of blog posts. That’s a lot of written content.

When you sit down to write content for your blog posts or other social media channels, do you often try to think of a catchy one-liner to grab your reader and engage them? Be honest, you know you do. That’s part of marketing, right? Well, it’s one part, but here’s the other part. Do you also ask yourself if what you’re saying is the most authentic and trustworthy way you can say it?

Your writing is a lasting imprint that speaks volumes about your business and reflects on your personal integrity as well. I know, I know. It’s not a flashy promise to boost your sales instantly, but an honest sales pitch doesn’t have to be boring.

An honest sales pitch consists of delivering to your customers the benefits of your product or service in a clear, compelling manner. Sounds too simple to be true, but the crux of your sales pitch should be your product or service. If you don’t have clear, compelling benefits to your product or service that you can focus on as a means to draw people in and engage them, it’s time to refocus.

So, how do you know if your writing is generating trust or distrust? Easy; read it from the customer’s perspective, and ask yourself a few simple questions. Be honest with yourself. No one is looking. I promise.

What am I selling? When you read your writing, are you selling empty promises, or are you selling a much needed product or service? If your writing is drowning in gimmicky phrases and one-liners, then it’s a good bet you’re not selling the virtues of your product or service.

Would I buy from me? Answering this question requires a great deal of objectivity, but it can be done. Would you? Would you buy whatever you’re selling? If you don’t even have a clue what you’re selling, that’s bad news. Your potential customers are probably completely clueless.

Is there even a hint of slime? Remember that kid’s game show where people would get slimed? It was gross and people would try hard to avoid getting slimed, right? Well, slick, slimy written content gets the same treatment. No one wants to feel like they’re getting taken for a ride, so get rid of any content that even hints that you’re about to get one over on your customer. What classifies as too slick? Posts that promise too much are one of the top offenders. Keep your message honest, relevant, and engaging, and you’ll have long-time readers and a base of potential clients.

The internet is definitely filled with business owners, but your voice can still be heard no matter how crowded the field. Strive for consistency. Craft valuable, informative content and avoid that urge to oversell, and you’ll be ahead of a good number of businesses in your industry. Here’s to your business success!

Shannon Harmon is a writer and business owner committed to helping entrepreneurs craft insightful, intelligent writing strategies designed to grow their businesses. For more information: http://www.jonesharmonwriting.com

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How to Write a Business Plan Part III

by Melinda Emerson on January 31, 2011 in Become Your Own Boss Tips, Business Inspiration, My Recommendations

How to write a business plan

In Part I and Part II of this blog series on how to write a business plan, I have walked you through clarifying the business idea, marketing analysis, defining the business opportunity and customer profile, finding your niche and developing a sales plan and marketing budget.

Now, I want you to define how you are going to run your business, and develop a budget and sales projections. This is where you go from dreamer to business owner folks! It’s about dollars and cents. If your business is not designed to make money, you have an expensive hobby.

The Operations Plan This section explains how you plan to operate the business. Managing your enterprise is serious work. As the boss, you need to orchestrate how the business will run while keeping costs down and maximizing profits. You need to have a clear process for delivery, handling customer complaints, determining how many employees you need, taking mark downs and so much more. If you are manufacturing a product, it is even more important to track all the raw materials, processes, finished goods, and shipped goods and how to work your way through the many emergencies, large and small. Your business plan should include as much detail as you can so anyone can see how you expect things to work.

Running your business can be as simple as going to a big box retailer and stocking up on more hot dogs, rolls, condiments, napkins, soda, etc. for that week’s business or as complicated as having shirts made by a foreign manufacturer, getting them through customs, price-tagged for sale, stocked in the store, scheduling help, and so much more. Other issues include location, business permits, inventory management, power and communications needs, insurance requirements, additional construction needs, and zoning requirements. Any of these areas can stop you from opening your doors and should be addressed as a detailed part of your plan. Personnel issues like pay, skills set needed, training, and total headcount should also be touched on, as they have a direct impact on your operations plan and your financial projections.

If you have the time, I strongly recommend creating a process flow worksheet that outlines every activity from receipt of raw materials to final customer sale.

Operations, as you can see, is all about the details some of which could keep you from opening your business. A page on your business operation will get you thinking about what it will take to get your business up and running

What are going to be your top priorities?
How will you measure the results of your processes?
What is your plan for sources and uses of cash?
How will you manage growth proactively?

Your Management Team One of the essential ingredients for a successful small business is the experience the business owner brings to the table. Highlighting your expertise and background is critical to giving your business credibility, particularly in the early years. My first business was a multimedia production company, my background as a television producer was a key element to my clients trusting me with their marketing projects. Your knowledge of your industry and your relationships with potential strategic alliances and customers will be an important asset to your business. You will probably start out as a management team of one. As your business grows, however, any new employees should bring with them skill sets that might include diverse business experiences, significant business contacts, demonstrated leadership and/or technical savvy.

Revenue Models/Cash Flow Projections The financial plan lays out your operational budget and sales expectations for your business. Typically, the first thing any investor or bank will want to know is at how much money your business will generate and how soon will it be profitable (you might have a need to know as well). You will need to create a tight, well thought out, realistic financial plan that includes the amount of personal financial risk you are putting on the table.

If you are not comfortable with accounting, you should engage an accountant or a seasoned bookkeeper to help you pull together your initial financial projections.

It is also a good idea to work along side your accountant for a while once you start doing business. That’s the best way to get a grasp on the financial inner workings of your company. When it comes to developing sales projections, it is important to be conservative and realistic. I like to focus sales projections around 30-day goals.

Know your numbers, and be able to defend them. The worst thing you can do is develop financial projections that don’t make sense, particularly if you plan to pursue funding. The plan should also include a cash-flow projection and a break-even analysis. The process of developing your financial plan will help you understand how many sales must be generated to cover your expenses and eventually make you a few pennies.

Your financial plan is your best estimate of your company’s financial future. It is an estimate because you really have no idea how your company will perform financially until you operate the business for six-months to a year. Your plan should include a one-year operating budget and up to a three years of company sales projections.

The Executive Summary After the sales projections, it’s time to write your executive summary. You should think of these two-pages as your sales document for the entire business plan. The executive summary should contain enough information for the reader to get interested in reading the plan, writing a check in support of the business or coming to work for your business. Here’s a recent post on how to write and executive summary. http://succeedasyourownboss.com/01/2011/how-to-write-an-executive-summary/

Once again, I strongly suggest that you purchase business plan software. I recommend Business Plan Pro.

Then, sign up for a business plan course to finish your business plan. They are offered at a local community colleges, Small Business Development Center, 1-800-8-ASK-SBA or use this link http://www.sba.gov/aboutsba/sbaprograms/sbdc/sbdclocator/SBDC_LOCATOR.html, or a local nonprofit serving small business, to finish your business plan.

A business plan is the small business owner’s hypothesis of what they think will happen in once they open for business. The plan will change once the business is exposed to the marketplace, which means the plan must change regularly. In fact, in the first few years of running a small business, the business owner should review and update their business plan every two-to-three months to make sure the business is on the right track.

No more excuses, now you have everything you need to finally get your business plan done. Please let m know if this post was helpful, I love to hear from you.

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 in the New York Times, Washington Post, Entrepreneur, Wall Street Journal 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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How to Write an Executive Summary

by Melinda Emerson on January 10, 2011 in Before You Start, My Recommendations, Your Small Business

An executive summary provides a snapshot of the business. It is essentially a sales document that highlights the main points of an in-depth business plan and is written for people who want to understand quickly whether or not your business idea is worth their time. The executive summary should contain enough information for the reader to get interested in reading the full plan; thus it should be the most compelling part of the business plan.

Here is how to write an executive summary.

The executive summary should provide answers to the following questions:

Who are you and who is your management team?

What is the business idea?

Where is your market opportunity?

When will your business be profitable?

Why will your target customer do business with you?

How much money do you need and what will you do with it?

Your executive summary should be written last – after the bulk of your business plan has been developed. It should be no more than two pages. If you can’t sell your idea on paper in two pages, well then perhaps you need to reconsider your business idea.

Your executive summary should list the highlights of your business plan in the order that your plan is organized. Avoid using unnecessary technical material or industry jargon. Chances are the person reading the business plan may not know anything about your business and if they are in a position to make a funding decision, it is best to not frustrate them.

Use plain language and do not hesitate to add supporting sentences to further explain. As a test, ask a friend or family member to read your business plan’s executive summary to make sure your business idea is clear, conveys passion, and above all entices the reader to keep reading your business plan.

Do you have any other suggestions for writing a compelling executive summary? Leave a comment.

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, in Forbes, the Wall Street Journal and Black Enterprise Magazine. 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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There’s No Better Time to Start a Small Business

by Melinda Emerson on January 4, 2011 in Become Your Own Boss Tips, Before You Start, Your Small Business

January is my favorite time of year. The start of a new year is always exciting. There are new year’s resolutions to lose weight, save more money, get more sleep and to make it your best year yet—and I am for all of that. Well, this year you should work toward accomplishing your financial resolutions. I feel that the best way to do that is to start your own business. What I want everyone to focus on is finally getting a side hustle or full-time business going in 2011. The world is still waiting on a better mousetrap and in the absence of that, even silly ideas with great marketing will sell (Think “Keeping up with the Kardashians”). Despite the economy, now is the perfect time to start a business if you have three important things.

a)     a solid business idea

b)     a niche target customer

c)     a plan to tell the world you are open for business

In my book, Become Your Own Boss in 12 Months, I outline the Emerson Planning System, which was developed to help transition from having a job to starting a business. It’s a month-by-month guide to start a profitable and sustainable small business. It concerns me that most often, when someone declares they want to start a business, the first thing most experts will say is that you need a business plan. Here’s what I say: Yes you need a business plan, but there are a few more things you need before that. Here are my six steps to starting a small business.

Develop a Life Plan – You should not just start a business because you need money; becoming an entrepreneur should be a part of your big picture plan for your life. Take the time to figure out what you want out of life, and then build a business around that. Make sure your passion has a profit center.
Analyze Your Financial Plan – You must be in a position financially to support your lifestyle and have the personal resources to start your business. Keep in mind it typically takes 18-36 months for a small business to break even. Can you go that long without a paycheck?
Validate Your Business Concept – Once you have a business idea, the next thing you need do is to evaluate what skills you have and need to run your particular business. This will help you learn if you need to attract a partner or how to hire your initial team.
Marketing Plan — You really need to know who’s going to buy from you and why — before you write a business plan. There’s a difference between “need”, “want” and “willing to pay for” in business. There’s must be a market for your product or service; you must know your opportunity landscape and understand the competition.
Business Plan—The easiest way to write a business plan is to purchase business plan software. You can grab a copy of Business Plan Pro software, one of the best on the market, from my affiliate link, and I would also suggest taking a business plan course from a local college, SCORE, or a Small Business Development Center so that you can complete your business plan.
Launch Your Business —The best way to launch a business is to do it while you are still working a job, if you can. Join the 5-9 club, which is when people work evenings and weekends on a side business. Since it takes two-to-three years to get a business off the ground, it’s the best option. Now, if you are starting a business with the goal of quitting a job—keep those paychecks rolling as long as you can. Give your business the best possible shot of being successful.

Do your own due diligence and find a small business that you can succeed in today!

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. She has been featured on NBC Nightly News, in Forbes, the Wall Street Journal and Black Enterprise Magazine. 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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Best of How To Succeed As Your Own Boss 2010

by Melinda Emerson on December 27, 2010 in Business Inspiration, Grow Your Business, My Recommendations, Your Small Business

Many of you who follow this blog are aware that I believe that the best thing you can do for your small business is pray over it every day. The most popular post on my blog this year was this one I wrote last January on the top 10 Bible verses that I thought could strengthen and encourage small business owners along this rough road we call entrepreneurship. 10 Bible Verses Every Small Business Owner Needs http://bit.ly/8XSFBf

Do you want to know if you have what it takes to be a small business owner? It takes enthusiasm and energy for starters. Then you have to grow your business into a profitable and sustainable enterprise. If you think you work hard now in corporate America, you are in for a real awakening once you launch your small business. Your paid support staff will no longer exist. Do you think you can hack it? This is a Two Part series on what it takes to be an entrepreneur. The Entrepreneur’s Job Description — PART I http://bit.ly/i7WLCk, PART II http://bit.ly/gXcBma

Regardless of the entrepreneurial idea, it all starts with a dream of the kind of life you want to have as a small business owner. In order to be successful, you must have a big picture vision for your life. You need a life plan first, then build your business around that. You need to know how much money you need to make to be happy, and how many employees you want your business to have. Do you just want one great pizza shop or a chain of bakeries with wholesale and retail operations? Regardless of your business goals, you need to understand what kind of resources you would need to start a business like that. Be careful that your dreams do not convince you that you will be an overnight success; there are not many of those. The formula for small business success is dream + plan + pray + hard work = success, 4 Keys to Small Business Success: Dream, Plan, Pray and Hard Work http://bit.ly/cYuK3X

Are you afraid of the financial side of your small business? It’s great to have a nice blog, an email marketing list, a sales process and glossy business cards to drive sales in your business. You must look credible in order to do business with anyone especially a corporation. Having key relationships is essential to generating business, but how are you tracking your profits? Are you using up-to-date financial information to manage your business? It’s not about revenue, it’s about profits. How Do You Make Business Decisions? http://bit.ly/9aov1P

As this year winds down, it is my hope that you go into the New Year with an updated business plan. Successful businesses are run based on a budget and sales projections. In order to make your business plan turn into a document that you can actually use to run your business, there are 5 common mistakes to avoid when writing a business plan. Top 5 Business Plan Mistakes http://bit.ly/buMEqi

This blog post was ripped right from my client work. I have a set of clients who have been in business for a while — 7 years +, and all this change going on in the marketplace has them significantly losing business. The recession has changed everything, and some business models are obsolete. Everyone these days wants to hire specialists. And, competing on price in the computer age is a bad idea, for competition is world-wide. If you are ready to reinvent yourself and your business, now is the time. Start with these 7 steps and get your business back on track. 7-Steps to Course Correction in Your Small Business http://bit.ly/cGhY2b

The goal of this blog is to end small business failure. If you think there’s another blog post from the year that should be on this list let me know.

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. She has been featured on NBC Nightly News, in Forbes, the Wall Street Journal and Black Enterprise Magazine. 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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Big Things to Come From SmallBizLady in 2011

by Melinda Emerson on December 24, 2010 in Before You Start, Business Inspiration, Grow Your Business, How to Start

I am so excited to announce Become Your Own Boss in 12 Months has won a Reader’s Choice Award in 2010 Small Business Book Awards by Smallbiztrends.com. If you still haven’t grabbed a copy click to order an autographed edition.

I am writing a new book in 2011 which focuses on the “cardinal sins” of small business and how to avoid them. Look for sneak peeks on this blog.

More Resources from Author Melinda Emerson

Become Your Own Boss in 12 Months now has a companion workbook. Click to order the Are You Ready to Become Your Own Boss Workbook

Are you unsure of what type of business you want to start? Try Smallbizady’s Life Planning Journal. This download is 76-page dynamic PDF that allows you to type right into the document, then save and print it for your records. This comprehensive journal will help you get clear about what you want out of life. Whether you’re getting started or ready to reinvent, this life planning journal could be just what you need. Click now to order the life planning journal.

Starting Jan 20th, Become Your Own Boss 8-week Mastermind Group returns. It you would like Smallbizlady to help you start or reinvent your small business, this is your chance. Only 20 people will be able to sign up to be personally coached by me. Click for details.

Are You Ready to Become Your Own Boss, 9-week College Course will roll out in the summer. If you are small business trainer interested in adding a prerequisite course to your Continuing Education, Credit or Small Business Development Center training program, we’re excited to provide training, an instructor manual and student materials. Send an email to Melinda at melindaemerson dot com for more information.

Smallbizlady hits the road with a six city Build Your Own Business national tour in March. BYOB 2011 will come to Philadelphia, PA, DC, Atlanta, GA, Los Angeles, CA, Chicago, IL, and Houston, TX.

We’re also hosting a series of #Smallbizchat tweet-ups in cities across the country. I am looking forward to meeting more people and sharing tools to help start and grow successful small businesses. Look for me to do more TV appearances this coming year.

Succeedasyourownboss.com will add new features

Succeedasyourownboss.com is going 5 days a week in 2011. We’re featuring a new video segment called ASKSmallBizLady, answering your small business questions.

We’ll also feature 2-3 guest bloggers per week with how-to topics like small business technology, young entrepreneurs, productivity, small business finance, your faith and your business.

As always, I am your resource for small business. Connect with me on

Happy Holidays everyone.