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Elaine Pofeldt is an independent journalist who specializes in small business, entrepreneurship and careers. She is the author of The Million-Dollar, One-Person Business, a look at how entrepreneurs are hitting seven-figure revenue in businesses where they are the only employees, tapping automation and other technology to scale their efforts Her work has appeared in FORTUNE, Money, CNBC, Inc., Forbes, Crain’s New York Business and many other business publications She is also a former editor at FORTUNE Small Business. For more information: http://elainepofeldt.com
SmallBizLady: How many million-dollar, one-person businesses are there, and how fast is the trend growing?
Elaine Pofeldt: In 2021, there were 53,460 businesses in this category that have $1-$2.49 million in annual revenue (up nearly 48% since 2012). There are another 3,244 bringing in $2.5 million and up in 2021.
SmallBizLady: What categories are the fastest growing areas for one-person businesses?
Elaine Pofeldt: Which are most promising for the future? The largest category by far is professional services. Construction and finance/insurance are the fastest growing.
SmallBizLady: How will AI affect one-person businesses?
Elaine Pofeldt: I believe that, like cloud-based tools, AI will allow more people to get to $1 million in annual revenue by helping them to run their businesses more efficiently and profitably. AI can help owners offload tedious tasks and focus more on big-picture activities like business development that are tied to growing a business.
How to Exit from a Small Business
Maggie Lord was an early pioneer in the online digital wedding media space, as the founder + CEO of Rustic Wedding Chic, Maggie led the company for 12 years before it was acquired by David’s Bridal in 2020. Maggie is also the author of 6 books. Today, Maggie has become a sought-after strategic advisor to female founded brands allowing her to focus on sharing her knowledge and expertise with other like-minded entrepreneurs. Maggie and her businesses have been featured in Forbes, The New York Times, Business Insider, Success Magazine and much more. For more information: http://www.maggielord.com
SmallBizLady: How can a small business owner craft an exit strategy How do you find the right buyer?
Maggie Lord: It starts with drawing up a plan that identifies the right buyer and why your small business would be the perfect fit for the buyer.
SmallBizLady: How does a small business owner know when it is the right time to exit?
Maggie Lord: People exit at all different times from their business, but I often think people wait just a little too long to exit. The best time to exit is before you are burnt out completely and before you have grown too large that you won’t be able to find a buyer.
SmallBizLady: What are the steps a small business can do to start the exit process?
Maggie Lord: The easiest thing to do is start to get all your ducks in a row with your business financials, a company one sheet and the company profile. After that is in place the next thing to do it start to craft a list of who you think would be a good buyer and write up why they should buy you and how it would impact and change their business to have your business.
How to Get Better at Sales as a Business Owner
Valdez Lasartemay is a lifelong sales professional with over three decades selling everything from shoes to securities. He began selling at 10 years of age going door to door selling subscriptions to the San Francisco Chronicle. These days as a business consultant, he focuses on business development and helping small business owners learn effective sales strategies and techniques, emphasizing servant leadership. His new book is Marketing 4 Salespeople How Servant Leadership Attracts Clients and Increases Sales. For more information: www.Marketing4Salespeople.com
SmallBizLady: Are sales and marketing the same thing?
Valdez Lasartemay: Not at all. Marketing’s job is to make sales unnecessary, though this is rare. Marketing is about lead generation and identifying those who want more information. Sales, on the other hand, is about building relationships and closing the deal. Salespeople in my experience are often at the mercy of companies who are weak marketers. This is another reason I wrote the book.
SmallBizLady: How do you integrate marketing and salesmanship?
Valdez Lasartemay: We focus on the key tenets of marketing that are most beneficial to sales, primarily Branding, Segmenting, Targeting, and Positioning (STP marketing). This integrated approach ensures that salespeople are not just selling but also establishing a strong market presence.
SmallBizLady: How do you help salespeople in today’s competitive environment where customers are price-conscious and do not want to be sold to?
Valdez Lasartemay: The key is servitude. By setting themselves apart and raising their value through specialization in chosen niches, salespeople can overcome these challenges. It is about serving, not just selling. Both the Pareto Principle and The Platinum Rule offer strategic insights that can significantly enhance the effectiveness of marketing for salespeople and the practice of servant leadership. By focusing on key customers and efforts (Pareto Principle) and treating individuals according to their preferences (Platinum Rule), salespeople and leaders can optimize their approaches, leading to better outcomes and stronger relationships.
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