Mike Michalowicz @TPEntrepreneur Author, Toilet Paper Entrepreneur interviews Melinda Emerson @Smallbizlady Author, Become Your Own Boss in 12 Months. She also has great start-up tips at www.becomeyourownbossbook.com
Q: What makes your book different from all the other start-up business books?
Melinda Emerson: Become Your Own Boss in 12 Months provides a realistic, month-by-month planning guide to start a sustainable and profitable small business. Become Your Own Boss in 12 Months is not a book about writing a business plan; it’s about planning your successful small business.
Q: Why did you write Become Your Own Boss in 12 Months?
Melinda Emerson: My mission as the SmallBizLady is to End Small Business Failure. I wanted to develop a tool for people who are unhappy with their jobs and look to transition into small business ownership. I also wanted to discourage people from just quitting their jobs without a well-researched plan. Too often I got calls from people seeking my advice about starting a business–after they had already quit their job — which is just too late to begin planning. Since the recession began, small business owners have even less time to hit it big with their entrepreneurial ideas. I developed the Emerson Planning System to help plan a successful small business which is illustrated in my book Become Your Own Boss in 12 Months.
Q: Why does it take 12 months to start a business?
Melinda Emerson: 12 Months is an ideal time-frame to start a business, it’s not meant to be restrictive. I have been an entrepreneur for more than 11 years. Based on my experience, I believe the longer you plan, the more research you will do, and the more money you save, the more likely you are to succeed in business
Q: What if you don’t have 12 months?
Melinda Emerson: Sometimes people are forced to start sooner. This is triggered by layoffs, getting fired, buyouts or retirement packages. I only planned for three months with my first business, but the challenge with that approach is you learn plenty of lessons the hard way, and that can be expensive. If you live by a budget, have your debt under control, and have a significant amount of savings, you will be able to start your business much sooner. Depending on your individual situation, it may take more than a year to get your personal finances in order.
Q: How did you become the Smallbizlady?
Melinda Emerson: When I first began using Twitter, my own name was taken, so my friend @cathywebsavvypr and I brainstormed a name for me that would describe what I do. She came up with @smallbizlady and I have been that ever since. It was probably the best branding decision I ever made. How I really became a Smallbizlady was in 1999 when I became an entrepreneur, after my career in television as a news producer. I started a television production company called Quintessence Multimedia. About five years into my business, I started speaking on panels and doing workshops about small business start-up, web development and marketing techniques. Then, I got calls from people looking for help to start a business. I began by sending would-be entrepreneurs a one pager with start-up tips. That was expanded into a special report, 44Things To Do Before Going Into Business, which was the basis for my book, Become Your Own Boss In 12 Months. Over the years, I joined the National Speakers Association and I became a business coach and expert on small business best practices. I thought the best way to help entrepreneurs would be to provide a step-by-step proven method to start a successful small business.
Q: Who should start a business?
Melinda Emerson: Anyone with a solid, profitable business idea, willing to learn the business of running a business can start a successful small business.
Q: Why do small businesses fail so often?
Melinda Emerson:
No Life Plan–You need to develop a life plan and then build a business around that.
No Network–People do business with people they like and with people they know. Who do you know and, more importantly, who knows you?
Lack of Target Market–You have limited time and limited resources. Choose a niche so you can focus your marketing efforts.
Undercapitalized–If you do not save enough money to run your household for at least a year and fund the business, you may not be able to hang on until the business can generate any real revenue.
Lack of Fiscal Discipline–Do you run your business with a budget? Do you just rob the cash register when you need some cash? Do you make business decisions based on up-to-date financial information?
Q: How do you transition from a job to starting a business?
Melinda Emerson: Inside Become Your Own Boss in 12 Months, I write about the Emerson Planning System which is a six step system to transition from having a job to starting a business. It includes developing a life plan, a financial plan, validating the business concept, developing a marketing plan, the business plan and then finally starting the business.
Q: What is a Life Plan and why and do I need one to start a business?
Melinda Emerson: You need a Life Plan before you ever write a business plan, because you need to make sure that the business you start is the right business for you.
Q: You write a lot about personal finances and business planning. Why is that so important to starting a business?
Melinda Emerson: Your ability to save will be the key to whether you are financially able to become an entrepreneur.
Q: What are the 7 Essential Principles of Small Business Success?
Melinda Emerson: Throughout the past seven years, I have interviewed hundreds of entrepreneurs and business executives. After listening to what they said about running their businesses and observing how they did business, I realized thatthere were seven things they all had in common. They include having an entrepreneurial mindset, utilizing strict fiscal discipline, and having a kitchen cabinet of advisors. They make use of a well-defined brand identity; have a niche market customer, excellent customer service, and a firm understanding every day of their cash position by carefully managing their banking relationship. Using these principles can help any business run at its best. It’s the gold standard all businesses need to strive for from the very beginning.
Q: Who can benefit from this book?
Melinda Emerson: This book is for anyone looking to create a plan to fire their boss and start a small business. It will also help people who are within a few years of launching a new enterprise. I have also heard from seasoned business owners who tell me that this book could serve as a professional development course or a great roadmap to reinventing a struggling business.
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I just received my copy of your book, Melinda, and I can’t wait to dive in! I started my own business after being laid off last June. I would have loved a 12-month guide and hope to learn more helpful tips as I contine to grow my business!
I just received my copy of your book, Melinda, and I can’t wait to dive in! I started my own business after being laid off last June. I would have loved a 12-month guide and hope to learn more helpful tips as I contine to grow my business!