Posts Tagged ‘small business info’

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

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

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

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

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

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

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

Melinda Emerson, known to many as “SmallBizLady,” is a Veteran Entrepreneur, Small Business Coach and Social Media Strategist who hosts #SmallBizChat weekly on Twitter for emerging entrepreneurs. #Smallbizchat is the trusted resource on Twitter to discuss everything entrepreneurs need to know about launching and running a profitable small business. Her first book Become Your Own Boss in 12 Months was released in March 2010.

Has Your Business Hit a Brick Wall?

Lack of Discipline:  When you work for yourself, you are the engine that drives your small business. This also means that you kill for your dinner day after day. As an entrepreneur you need to stay on task daily to accomplish your business goals. Don’t believe hype about making millions in your bunny slippers. I believe there’s something psychological and positive that you feel internally when you take a shower and get dressed before you start the day. It’s best to develop routines to avoid distractions. Do not work in a room that has a bed; it is far too inviting to take a nap when the pressure starts getting to you. Especially if you work from home, treat your work hours like you are in a professional office. Try not to run errands during the day or hold off on personal calls until after 5pm.

Lack of Organization:  It is amazing how much time you can waste looking for things when you don’t have your files in order.  That means your physical files as well as your computer files.  Use inbox, outbox and to be filed bins to keep your mail under control. You should also create general computer files and then use subfolders that track information by year.  For example, I use a proposals folder and then I have subfolders for each year 2009, 2010, and so on to track my information so that I do not need to re-create contract proposals every time I need one.  You should have file folders for your email as well.  One of the things I do to cut back on paper waste is to use my http://www.delicious.com account to file articles online that I want to read or refer back to later.  You should also have a folder where you keep monthly bank statements and receipts for your bookkeeper to reconcile your account monthly.

Lack of Niche Focus:  Too often, small business owners sell to anyone that they think has money as opposed to focusing on a niche target market.  You must niche to get rich!  You have limited time and resources to hit it big in business; you will have a much better shot at it if you hone in on a specific target customer. You should be able to see the face of your customer and tell a story about her. Where does she live? Does she have children? How much education does she have? Does she use the internet? Does she feel comfortable buying things online? Is she married? How often does she buy what you sell and how much does she usually spend? This is how much detail you should know about your customer to develop a niche marketing strategy.

Lack of a Marketing Plan:  In addition to knowing your customer, you need to have a great answer for “Why will they buy from you?” In other words, you need a signature move or secret sauce. There are lots of small business coaches out here, but why do you need the Smallbizlady? Here’s the answer: “After 12 years as an entrepreneur and five years as a business coach, I’ve developed a six-step planning system to help people transition from having a job to starting a business. The Emerson Planning System will help you plan a successful small business.”

Lack of a Business Plan:  This is the most common of all things that undermine small businesses. You need a business plan to run a successful small business. In the first few years of a business it is especially important that the business plan be reviewed and updated every 2-3 months to make sure the business is on the right track.  Your initial business plan is your hypothesis of what you think is going to happen in your business— and it will change once your business is exposed to the marketplace.  Do not treat your business plan like a historical document—use it to run your business.

What else do you think undermines the success of small businesses?

Melinda Emerson, known to many as “SmallBizLady,” is a Veteran Entrepreneur, Small Business Coach and Social Media Strategist who specializes in small business start-up, social media marketing and business development. She hosts #Smallbizchat weekly on Twitter for emerging entrepreneurs.  Melinda also publishes a resource blog www.succeedasyourownboss.com Her first book Become Your Own Boss in 12 Months http://bit.ly/asEgeR was released in March 2010 by Adams Media. For more information http://www.becomeyourownbossbook.com