Making money versus making a mark

This is the line we walk as small business owners. We start our businesses hoping to do both. Somewhere, however the bottom line... the ability to support ourseves becomes more important than our professional aspirations.

It's not the end of the world if we forget our way for a while in order to put food on the table and clothes on our backs. At some point however, as the financial aspect of business ownership improves we need to find our way back to making the work meaningful, otherwise, we will quickly tire of it.

The funny thing, is that once you get to the point where you can make work meaningful, in many cases, it also becomes more profitable. Go figure.

This article focuses on helping employers make work meaningful for employers, but I think it applies well to business owners too. Here's an excerpt:

According to research by Adam Grant, an associate professor of management at the Wharton School, making this connection doesn’t just improve morale. It also has a huge impact on the bottom line. Grant has discovered that when people get to meet a living, breathing person who benefits from their work, their job performance skyrockets. In one study, Grant found that university fund-raisers who listened to a scholarship recipient tell how the assistance had benefited him increased by 200% the number of weekly calls they made to potential donors. The average amount of funds they brought in jumped 500%, from $400 per week to more than $2,000 per week.

read full article

Tips for Using Twitter for Business

Twitter is a website that users can use to find out what their friends are doing right now... or at least the last thing they reported. People announce that they have just woken up. They tell you about their meals. They say nighty-night. And frankly, I could care less.

Twitter certainly has it's value, especially if your family lives across the miles. You can let your parents know what you are up to. You can keep tabs on your best friends. You can get updates from classmates if you are a student. For many people it is just plain fun. Personally, I like to use twitter to promote my business.

Read full article here

Book Suggestion: Twitter Power: How to Dominate Your Market One Tweet at a Time

Back to school tips for Work at Home moms

For many work at home moms it means more time to work. For others, like me, it means more work because you either homeschool or volunteer at school during the school year.

Here are some things to keep in mind in the coming month.

1. Christmas will be here before you know it. Plan a few open houses and Christmas sale events now. Decide what your Holiday specials will be.

2. Schedule time to work on your business. Don't just let life happen and try to work around it. You will find you have accomplished nothing.

3. Enjoy your kids while you can and remember why you are working from home in the first place.

Encouragement for home businesses

As once thriving businesses struggle to stay afloat in a tough economy, businesses are surviving by relocating to the home. Renting office space in a high traffic area can cost as much as $4000 a month. If you are not making your rent, It would behoove you regroup and work from home. Here is a story of a couple who did it.

Creative Ideas for new businesses

How do you open a new business in a bad economy?

You can consider sharing a space with an existing business to cut costs

A food preparation business can hold a kids summer camp where the kids prepare meals for their family dinners.

These are just a few ideas utilized in Tallahasee FL this past year.


See video



If you have a business that is suffering in the recession, you should take a look at what you can do to cut costs. If you have a Sports Academy or Martial Arts Studio that is closed on the Sunday, consider leasing space for a day to a fledgling church.

If you are a Mary Kay consultant, you can do wedding and special event makeup.

If you sell kitchen items and do lots of food demonstrations, maybe you should consider catering parties.

Let's brainstorm! If you run a business and could use some ideas to expand your niche, leave a comment and maybe we can come up with some ideas together.

Resolutions for Business Success in 2009

Here are 5 rules that I have learned really do help business improve as simple as they may see.

1. Return phone calls and emails: Customers can be impatient. Failure to respond right away is akin to passing business on to the next person.

2. Don't take on more than you can handle. It is better to pass on business to a qualified professional than get a reputation of doing a bad job.

3. Maintain separate finances. Don't mix business and personal money. More money gets sucked into personal expenses than you would expect and wind up causing you business issues.

4. No surpises. Give your customer what they ask for and resist the tempation to give them more. What you perceive as extras, especially in creative services may end up dissatisfying the customer.

5. Diversify. In tight economic times, it might serve you well to move away from your niche business and diversify in order to stay in business. This does not mean that you should sell makeup if your business is writing. It does mean however that you may want to add proof reading and editing to your list of services. If you sell makeup, you may want to add special occasion makeovers to your services (such as weddings and prom).

How to Successfully Navigate Your Business through an Economic Downturn by: Terry H Hill

An economic downturn is a phase of the business cycle in which the economy as a whole is in decline.This phase basically marks the end of the period of growth in the business cycle. Economic downturns are characterized by decreased levels of consumer purchases (especially of durable goods) and, subsequently, reduced levels of production by businesses.

While economic downturns are admittedly difficult, and are formidable obstacles to small businesses that are trying to survive and grow, an economic downturn can open up opportunities. A well-managed company can realize the opportunity to gain market share by taking customers away from their competitors. Resourceful entrepreneurs capture the available opportunities, from an economic downturn, by developing alternate methods of doing business that were never implemented during a prior growth period.

The challenge of successfully navigating your business through an economic downturn lies in the realignment of your business with current economic realities. Specifically, you, as the business owner, need to renew a focus on your core clients/customers, reduce your operating expenses, conserve cash, and manage more proactively, rather than reactively, is paramount.

Here are best practices that will help you to successfully navigate your business through an economic downturn:

Goals: The primary goal of any business owner is to survive the current economic downturn and to develop a leaner, more cost-effective and more efficient operation. The secondary goal is to grow the business even during this current economic downturn.

Objectives:

• Conserve cash.

• Protect assets.

• Reduce costs.

• Improve efficiencies.

• Grow customer base.

Required Action:

• Do not panic… History shows that economic downturns do not last forever. Remain calm and act in a rational manner as you refocus your attention on resizing your company to the current economic conditions.

• Focus on what YOU can control… Don’t let the media's rhetoric concerning recessions and economic slowdown deter you from achieving business success. It´s a trap! Why? Because the condition of the economy is beyond your control. Surviving economic downturns requires a focus on what you can control, i.e. your relevant business activities.

• Communicate, communicate, and communicate! Beware of the pitfall of trying to do too much on your own. It is a difficult task indeed to survive and to grow your business solely with your own efforts. Solicit ideas and seek the help of other people (your employees, suppliers, lenders, customers, and advisors). Communicate honestly and consistently. Effective two-way communication is the key.

• Negotiate, negotiate, and negotiate! The value of a strong negotiation skill set cannot be overstated. Negotiating better deals and contracts is an absolute must for realigning and resizing your company to the current economic conditions. The key to success is not only knowing how to develop a win-win approach in negotiations with all parties, but also keeping in mind the fact that you want a favorable outcome for yourself too.

Recommended Best Practice Activities:

The Nuts and Bolts… The following list of recommended best practice activities is critical for your business' survival and for its growth during an economic downturn. The actual financial health of your particular business, at the outset of the economic downturn, will dictate the priority and urgency of the implementation of the following best practice activities.

1. Diligently monitor your cash flow: Forecast your cash flow monthly to ensure that expenses and planned expenditures are in line with accounts receivable. Include cash flow statements into your monthly financial reporting. Project cash requirements three-to- six months in advance. The key is to know how to monitor, protect, control, and put cash to work.

2. Carefully convert your inventories: Convert excess, obsolete, and slow-moving inventory items into cash. Consider returning excess and slow-moving items back to the suppliers. Close-out or inventory reduction sales work well to resize your inventory. Also, consider narrowing your product offerings. Well-timed order placement helps to reduce excess inventory levels and occasional material shortages. The key is to reduce the amount of your inventory without losing sales.

3. Timely collection of your accounts receivable: This asset should be converted to cash as quickly as possible. Offer prompt payment discounts to encourage timely payments. Make changes in the terms of sale for slow paying customers (i.e. changing net 30 day terms to COD). Invoicing is an important part of your cash flow management. The first rule of invoicing is to do it as soon as possible after products are shipped and/or after services are delivered. Place an emphasis on reducing billing errors. Most customers delay payments because an invoice had errors, and therefore, will not pay until they receive a corrected copy. Email or fax your invoices to save on mailing time. Post the payments that you have received and make deposits more frequently. The key is to develop an efficient collection system that generates timely payments and one that gives you advance warning of problems.

4. Re-focus your attention on your existing clients/customers: Make customer satisfaction your priority. A regular review of your customers' buying history and frequency of purchases can reveal some interesting facts about your customers' buying habits. Consider signing long-term contracts with your core clients/customers which will add to your security. Offer a discount for upfront cash payments. The key is to do what it takes to keep your current customers loyal.

5. Re-negotiate with your suppliers, lenders, and landlord:

i) Suppliers: Always keep your negotiations on the level of need, saying that your company has reviewed its cost structure and has determined that it needs to lower supplier costs. . Tell the supplier that you value the relationship you have developed, but that you need to receive a cost reduction immediately. Ask your supplier for a lower material price, a longer payment cycle, and the elimination of finance charges. Also, see if you can buy material from them on a consignment basis. In return for their price concessions, be willing to agree to a long-term contract. Explore the idea of bartering as a form of payment.

ii) Lenders: Everything in business finance is negotiable and your relationship with a bank is no exception. The first step to successful renegotiations is to convince your lenders that you can ultimately pay off the renegotiated loan. You must point out to your lenders why it would be in their best interest to agree to a new arrangement. Showing them your business plan and your action plan that includes your cost-savings initiatives, along with "the how" and "the when" of the implementation of your plan is the best way to achieve this goal. Explain to them that you will need their cooperation to insure that you can survive, as well as, grow your business during the economic downturn. Negotiated items include: the rate of interest, the required security to cover the loan, and the beginning date for repayment. A beginning date for repayment could be immediate, within several months or as long as a year. The key is to realize that your lender will work with you, but that frequent and continual communications with them is critical.

iii) Landlord: Meet with your landlord. Explain your need to have them extend the term of your lease at a reduced cost. Make sure you have a clause in the lease agreement that entitles you to have the right to sublet any or all of the leased space.

6. Re-evaluate your staffing requirements: This is a very critical area. Salaries/wages are a major expense of doing business. Therefore, any reduction in the hours worked through work schedule changes, short-term layoffs or permanent layoffs has an immediate cost saving benefit. Most companies ramped up hiring new employees in the good times, only to find that they are currently overstaffed due to slow sales during the economic downturn. In terms of down-sizing your staff, be very careful not to reduce your staff to a level that forces you to skimp on customer service and quality. Consider the use of part-timers or the current trend of outsourcing certain functions to independent contractors.

7. Shop for better insurances rates: Get quotations from other insurance agents for comparable coverage to determine whether or not your present insurance carrier is competitive. Also, consider revising your coverage to reduce premium costs. The key is to have the right balance-to be adequately insured, but not under or over insured.

8. Re-evaluate your advertising: Contrary to the other cost-cutting initiatives, evaluate the possibility of increasing your advertising expenditures. This tactic realizes the advantage of the reduced "noise" and congestion (fewer advertisers) in the marketplace. The downturn period a great opportunity to increase brand awareness and create additional demand for your product/service offerings.

9. Seek the help of outside advisors: The use of an advisory board comprised of your CPA, attorney, and business consultant offers you objectivity and provides you with professional advice and guidance. Their collective experience in working with similar situations in past economic downturns is invaluable.

10. Review your other expenses: Target an across-the-board cost-cutting initiative of 10-15%. Attempt to eliminate unnecessary expenses. Tightening your belt in order to weather the downturn makes practical, financial sense.

Proactively managing your business through an economic downturn is an enormous challenge and is critical for your survival. However, through well-planned initiatives, an economic downturn can create tremendous opportunity for your company to gain greater market share. In order to take advantage of this growth opportunity, you must act quickly to implement the above best business practices to continue realigning and resizing your company to the current economic conditions.

Copyright © 2008 Terry H. Hill You may reprint this article free of charge in your newsletter, magazine, or on your website, provided that the article is unedited, and that the copyright, author's bio, and contact information below appears with each article. Articles appearing on the web must provide a hyperlink to the author's web site, http://www.legacyai.com Terry H. Hill is the founder and managing partner of Legacy Associates, Inc, a business consulting and advisory services firm. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. To find out how he can help you take your business to the next level, visit his site at http://www.legacyai.com To download a copy of this article, click on this link: http://www.legacyai.com/Article_Downturn.html.

About The Author
An author, speaker, and consultant, Terry H. Hill is the founder and managing partner of Legacy Associates, Inc., a business consulting and advisory services firm based in Sarasota, Florida. A veteran chief executive, Terry works directly with business owners of privately held companies on the issues and challenges that they face in each stage of their business life cycle. Terry is the author of the business desk-reference book, How to Jump Start Your Business. He hosts the Business Insights from Legacy Blog at http://blog.legacyai.com and writes a bi-monthly eNewsletter, "Business Insights from Legacy eZine." By signing up for Business Insights from Legacy eZine at http://tinyurl.com/2t4fxs you can keep abreast of the latest tips, tactics, and best business practices. You will, also, receive the free eBook, Jump Start Your Knowledge of Business. Contact Terry by email at http://www.legacyai.com or telephone him at 941-556-1299.

Saving Some for Later

I got some business advice from a very wise person today. You see, I have been spending all of my time lately working for paid writing jobs, which is wonderful. However, I have spend very little of my time since the first of the year working on my blogs. That may not sound like a big deal since I get paid a living wage for my articles,and slave wages for my blogs. However, blogging does eventually pay off, and neglecting to work for them is the same as neglecting to put any money away for the future.

With my writing business paying off well, I have been busy focusing on now, and not my future income. If this continues, in five years, I will still be writing for six to eight hours a day or more, and making the same amount of money. If I cut back just two hours a day on my paid writing, and worked more time on my blogs, then in five years, I will be writing only two or three hours a day, and very possibly making alot more money.

Now I realize that not everyone's business works the same way I do, but in theory, anyone who owns a small business needs to spend a certain amount of time in active work, and also a portion of their time in planning, and marketing to bring in future business.

So here's where you talk back. What do you do, how much time to you spend on making income for now,and how much time do you spend working toward future income?

Do You Thank Your Customers?

This article discusses the importance of sending thank you cards to your customers.... If I am correct, we have a member who can actually do this service for you if you don't have the time.

Your Government Rebate Check and Your Business

When You Get Your Government Tax Rebate CheckBy [http://ezinearticles.com/?expert=Viola_Bontrager]Viola Bontrager

What are YOU going to do with YOUR government tax rebate check??
Blow it?? Invest it?? Pay Bills??

Rebate checks could soon be coming as the government attempts to jump start the economy and minimize the impact of a recession this year. Congress and President Bush reached agreement on the size of the checks, and who will qualify to receive one.

The goal: to stimulate the economy by getting consumers to spend again. There will be a $1,200 family maximum. Most individual taxpayers will receive a $600 check, with another $300 per child. The average American will think the Government is giving them a gift. Uhhh... slightly mistaken! We will not have to pay income tax on the checks, as they are an advance on next year's tax cut.

So.... My fellow American entrepreneur.....

ARE WE GOING TO BLOW OUR TAX REBATE CHECK OR ARE WE GOING TO TAKE ADVANTAGE OF IT???

We have several options and a lot of people are thinking of paying off debt with it, or buying all that stuff we have been wanting to get, BUT REALLY, it won't go very far in today's economy AT ALL!!

What about INVESTING your tax rebate check?? And reap returns from your investment all next year.... There are many successful home based business opportunities available , that you can get started in for anywhere from $300 - $1300. Unlike traditional businesses, where you have to invest in a building, have high overhead or inventory, most home based businesses have very low overhead, if any, and can be run right out of our home and from our computer.

The world is our market place so we have the advantages of marketing our product or services to millions of potential customers... Regardless how we look at it, by investing that money - we at least, have a chance at increasing our income this year, and if we blow it at the mall, (which is what Uncle Sam wants us to, by the way!)... we are no better off than we were AND WE WILL PAY TAXES ON IT NEXT YEAR!

Viola is an entrepreneur and home business owner. [http://montanamom5.com]Click Here to find out how how YOU can find financial freedom, through owning your own business at home!
Article Source: http://EzineArticles.com/?expert=Viola_Bontrager http://EzineArticles.com/?When-You-Get-Your-Government-Tax-Rebate-Check&id=948562




UPDATE: While the writer of this article is suggesting you put your money into her MLM business, the point I want to get across is that it may make some sense to use your rebate money to invest in your own business, or get one started.

What a Great Business Idea!

Being involved in Business Networking over the years, I have seen many business models that I felt would be a good idea, and even a natural fit for me. I always get that momentary feeling of "I could do that, and probably do it very well. Perhaps I should try it". I never do.

The reason I don't latch on to a business idea of someone else's is not because I am lazy or unmotivated. I don't do it because it was not my idea. I have learned over the years that people are far more successful when their business idea comes from someplace within themselves, or they are inspired by another's idea, but have a unique twist on the idea.

When someone picks up on the business ideas of another and attempts to run with it, they are often missing an unknown element unique to the person who's idea they copied. It is far better to come up with your own idea, or contact the person for their help and even pay them a franchise fee, or other fee to help get them started. The person may even help them get their first customers. This is why franchises and party plan consultants of course, are an exception to this rule.

Take Some Down, and Pass Them Around

No this is not about beer, it's about business.

In business we often get some requests that are not in our areas of expertise. As an artist, someone may want a painting in a style that is not yours. As a writer, someone may want 1000 words on a topic that you could care less about. Sure, it may be possible for you to stretch yourself and do the job, but will you be happy with it? Will the customer? Do you want to take that chance.

If you know what I know, you will pass that job on to someone who is more naturally qualified to do the job. They person you pass the job to will be pleased. The customer will be happy. You will have made two loyal contacts. One will pass a job they can't do onto you first. The other will contact you whenever they have an assignment knowing that if you can't do it, you will know someone who can.

What come around goes around.

Women of Gwinnett Holiday Show is Almost Here

On December 1, from 1-6 pm, the Women of Gwinnett, a local womens business networking group is having a holiday show where we will demonstrate our businesses and hopefully make some Christmas sales.
I know I for one will be doing my holiday shopping at this event. I feel it is very important to support local business people in order to maintain a healthy local business environment. No folks, Walmart will not be getting any of my money this year. Except maybe for groceries!

So if you live in or near Gwinnett County GA and want a unique shopping experience this Sunday, Please some to the North Georgia Fencing Center at 4403 Mendi Court, Suwanee Georgia.

For more info, you can call Andrea at 678-642-2993 or email me at ahermitt@gmail.com

Is Business Distracting You from Business?

You've spent time evaluating what you love doing. You have analyzed, planned, and started your business, but progress is slow going. A friend is doing an mlm business or party plan that looks like fun, you decide to join, just until your original business takes off. Did you do the right thing?

This is actually one of my pet peeves, but also my biggest temptation. I have been distracted from my main business by kitchen goods, baskets, makeup, soaps, curriculum books, and just about everything else that turned a profit. While this is great in the short term, my enjoyment was short lived as it took me away from my goal of working a business that I truly enjoyed. (I actually hate selling things.) I have learned over the years to say, "I really like your products/ plan, and may even make a purchase from you, but I cannot take my business focus from what I am doing."

On the other hand, I am currently putting more effort into a business other than what I originally started. I started out focusing on Mural art and decorating kids rooms. As my life took its turns, I found that I did not have time to do murals and decorating and began writing about it instead. Now I work mainly as a freelance writer (writing about everything under the sun) squeezing in only a few murals a year.

Writing is working out well for me, and I plan to use that to get into illustrating which will take me full circle artistically.

So while holding on to your business and avoiding distractions is important, flexibility is also needed... Where do you draw the line?

What Have You Done for Your Networking Group Lately?

Over the years I have noticed a trend in new people joining networking groups. (I have belonged to several, and am a founding member of this one.) People mistakenly assume that by joining the networking group, they are going to instantly increase their business sales, and when that does not happen, they leave, or become inactive. Unfortunately they are missing the whole point of networking.

While networking groups certainly can help grow a business, or give a new business the kick start it needs, this happens as a side effect and should not be the main purpose of joining a networking group. A business networking group consists of a group of people who join forces combining strengths to simultaneously strengthen networks, and learn from each other. The most successful person in any networking group (without a doubt) is the person who contributes the most.

If I believed in Karma, I could attribute such success to it. I do however, believe in doing unto others as you would have them do unto you. It works. It really works. At this point I am going to use our beloved Darla Dixon as an example. She joined this group when it was a floundering start up. Frankly, it was not going to make it. I was struggling with a serious illness, and meetings (which at the time were in person), were inconsistent at best. But Darla knew a good idea when she saw it, picked up the ball and ran with it. This is why we are 67 active members today with over 140 people in our Yahoo Group. Darla has moderated our group, organized get togethers, recruited new members, built our websites, which includes this new and wonderful blog, and has served us all in may ways.

It is no wonder that if any of us hears the words "looking for an artist", that Darla comes to mind. She has given to us all, and none of us would hesitate to give back to her. I am not saying that any member needs to do as much as Darla does for the group. I am saying however, that lending your special talents to the group would make both it and your own business much stronger. Here are some examples of activities you could do to help grow your networking group.

Organizing functions and meetings formal and informal
Sharing Business Knowledge
Charity Coordinator
Cross advertising and promotion
Giving public reviews when pleased with anothers service (using the email list and sites like Kudzu)
Lending Your Special Talents to the group: marketing, design, etc.

by Andrea Hermitt, www.ahermitt.com

Using Direct Mail & Mailing Lists

Did you know you can purchase mailing lists? The price of your mailing list depends on how many options you select. You can be very specific, for example, you can request a mailing list by families with children and income levels. A mailing list is also a good option if you want to only mail to specific zip codes.

Many mailing list suppliers can allow you to obtain your mailing list on CD-ROM, if you want to use the list more than once, or you can opt for the mailing list to be sent to you on pre-printed mailing labels, which saves time. Most mailing list companies will require you to email or mail in a sample of the mailing material if you request a list that includes families with children. This is a good sign - it means the company cares about the safety of children.

There are many services that also offer a mailing list and they will handle all the mailing and affixing postage for you. If you use one of these services, be sure to also include some 'blinds' (names and addresses of family and friends, so you can be sure the mailings are actually happening, and are taking place by the schedule you selected. In other words, if you add a friend to the list and the friend says they never got the mailing, yet you paid for it - you will know you have an issue to discuss with the mailing company!

w3Data, a mailing list supplier, allows you to look up your previous or current customers (the information is secure) and they'll help you find more customers just like the ones you've had! This is a pretty sure-fire method of creating a successful direct mail campaign, if you don't know where to start.