Ben Means Business

Blog Has Moved

2008-07-08T10:42:00.002-05:00

This blog has moved to www.ben-means-business.com. I finally made the switch to Wordpress software. Be sure to check out the new site. I believe that the switch has created a much more user friendly experience. Thanks for stopping by! Look forward to hearing from you at the new site!

Thinking About Selling? Better Check this Out

2008-06-04T05:34:00.005-05:00

This is a guest post by Peter Siegel of BizBen. I found his site extremely useful for anybody wishing to sell a business. Be sure to check it out.

One of the first questions most potential business buyers ask is: what is the adjusted net income or seller’s discretionary cash flow on the business they are seeking to purchase? Buyers want to know this number since that is the amount of money they will most likely be “putting in their pocket at the end of the year”. So this figure is of utmost importance to business brokers and sellers because it will ultimately determine the value of a particular business.

A simple definition of Adjusted Net Income:
"The amount of money the new owner will make from the business – the true bottom line; or what the buyer of the business can expect to “clear” from the business once they own and operate it in their own way."

Adjusted net income usually contains these line items below from the business financials and tax returns – these numbers are “added back” to the net income at the end of the year to obtain the adjusted net income of the business.

1. Owner's Salary
2. Depreciation
3. Interest
4. Amortization
5. One Time Expenses (Items like equipment, trucks, etc)
6. Owners Personal Expenses (Auto expenses, entertainment, travel)
7. Owners Pension/Retirement
8. Rent (If the real estate is being sold with the business)

There are other possible “add-backs” such as family salaries - family members that don’t actually work at the business yet magically earn a salary (and will be gone when the new owner takes over), and managers that may be replaced when the new owner completes the deal.

Remember many owners of small businesses “write-off” as many business expenses as possible to limit their tax liability at the end of the year. Many of these “write-offs” can be added back to the net income to obtain the “adjusted net income”.
So remember, when selling a business, to be sure to pay special attention when computing your Adjusted Net Income. Don't nonchalantly turn in a number with the rest of your financials. Take your time, do your research, and you'll get the offer that you desire.

............................................................

Peter Siegel, MBA is the founder of BizBen.com – Businesses For Sale an advertising & resource center for small businesses wishing to sell. Mr. Siegel is a national consultant and author who has written three books on the topic.`Be sure to check out his small business blog to learn more about buying and selling small businesses.

Guest Posts Needed A.S.A.P.

2008-05-29T10:06:00.008-05:00

I didn't want to do this but it looks like I'll have to.

Over the next week or two I will be spending my "blogging time" attempting to move this blog onto a Wordpress platform. I have grown weary of the limitations of Blogger and can no longer avoid the switch I have been dreading for a while now. However, as I quickly discovered yesterday, this is not going to be an easy task.

So, I decided to offer other business bloggers the opportunity to submit guest posts so that I can focus my energies on getting this move completed while still providing something to my readers. I will not place any limitations on word count, subject matter, links, etc....I will, however, ask that you submit only fresh content that is relevant to small business and entrepreneurship. Only the best articles will be posted and appropriate links and credit will go to those respective authors.

What's in it for you?

Traffic

Link from a young Page Rank 4

Link on New Site

Want to submit a guest post?

Shoot me an email(with article included) at benjamin.jones12@gmail.com. Thanks in advance for you assistance and patience as I attempt to make Ben Means Business the e-reading experience that it should be.

Guide to Getting Government Contracts: Part 1

2008-05-27T10:27:00.007-05:00

The U.S. Government is the absolute wealthiest customer any small business could ever obtain. The government always has demands for products and services and is not shy about entering into contracts for large sums of money with companies who can satisfy their needs. Despite the obvious monetary benefits, there are usually only a limited number of small businesses competing for these lucrative contracts. The reason that these small businesses don't go after these big contracts is simple........... it's "fear".

Which is why i decided to write this series. I aim to liberate you of those fears by empowering you with the knowledge necessary to identify, bid on, and obtain a government contract for your small business. To that end, I will dedicate 1 or 2 posts a week to the topic for the next couple of weeks. Today's post should serve as an introduction to government contracts. As such, the first thing that we have to do is dispel those common misconceptions that strike fear in the hearts of small business owners.

Government Contracts: The Common Misconception

Most small business owners think of government contracts as these humungous deals designed for Fortune 500 companies. Deals that will never be obtainable for small operations like yours. Well, you are so very wrong, and even worse, you may be missing out on tons of profit for your business. The fact is that the U.S. government understands the impact that small businesses have on the economy and have set aside certain contracts for small businesses.

They niche these classifications in such a way that would prohibit the large Fortune 500 vultures from getting them. This leaves only you and me to compete over larger contracts than either of us probably ever imagined. Don't believe me? Well, take out a pen and paper and answer the next few questions.

Are you a:

Small Business?

Woman-Owned Business?

Veteran-Owned or Service-Disabled Veteran-Owned Business?

Small Disadvantaged Business?

HubZone Business?

Times up! Put your pen down. :)

If you answered "yes" to any of the questions above, I suggest that you subscribe to rss(don't worry.. it's free) or check back often over the next few weeks to make sure that you don't miss a thing.

Are you currently in contract with the government? Currently writing a proposal? Leave a comment. We want to hear about your experiences.

Sales Volume vs. Profit Margin: Striking it Rich in Today's Economy

2008-05-23T07:32:00.005-05:00

High Price, low sales volume? Or Low price, high sales volume? This can be a very tough decision for small business owners to make because neither choice will be right for every situation. There are a number of factors to consider when attempting to make this important decision. These factors include competition's prices/quality, market maturity rate, your cost, and even location. Despite these usual concerns, the state of our current economy has made it a lot simpler to decide between sales volume and profit margin.

The answer, nowadays, will be the same for most businesses. It's "sales volume" by a landslide. I've always believed that "volume is king" and I believe it even more today as frugality has become more of a concern for most people. Whether our economy is really in bad shape or not is not the issue. The issue is that inflation mixed with all the talk about recession, has caused most people to become more frugal.

People are more likely to choose less expensive alternatives to their usual purchases. When their is the perception that money is getting tight, people won't necessarily stop spending(because they can't); but they will start spending less. So they buy $20 shoes because they can feel better about that than they can about buying $60 shoes. This theory is proven by the recent climb in scooter sales. Motor scooters are not cheap by any stretch of the imagination(ranging from ($800-$8,000) but yet the sale of motor scooters has been on a steady increase since the beginning of gas price inflation(see CNN's article on the topic).

Why? you ask..... The answer is simple. The people who buy motor scooters don't buy them simply because they want to save money on gas (the theory of spending this much money to "save money" is irrational in, and of, itself). They buy them because two-wheeled motorbikes are fun and the rise in gas prices now "justifies" the purchase.

So, what does this mean for Small Business Owners?

It means that wherever possible, small business owners need to be aware of these types of trends and begin to adjust to the mood of the consumer. If you want to earn more profit, it would be wise to try to lower overall cost in an attempt to cut prices. It's better(and easier in today's climate) to sale 500 units for $10 than it is to sell 250 units for $20. Besides the fact that volume gets you better prices from suppliers, sells has a way of producing more sells all by itself.

So if you want to become the king of the jungle in your industry, find a way to drop those prices and people will find a reason to buy it. They may even buy it for no reason at all.

Attention All Small Business Bloggers: The Revolution has Begun!

2008-05-22T09:08:00.019-05:00

It is becoming ridiculously apparent to me that we (small business bloggers) are the black sheep of the blogosphere. We have some of the most knowledgeable, respectable professionals of any blogging niche and yet you hear but chirps around some of the most informative blogs in our category. We boast gifted minds like Anita Campbell, John Jantsch, Jeff Cornwell(& myself :) but yet we pale miserably (in terms of traffic) to less sought after niches. I mean, come on....we carry the keys to the thing that most everybody in today's society is searching for. Our product is in high demand but we, the suppliers, are not delivering.

And It's not because we're not providing great content(so wipe that look off your face:)); It's because we're not promoting that content. We have no sense of community, low/no participation, low/no camaraderie, and the list goes on and on. There is no way that more people are interested in "digital photography" than are interested in entrepreneurship......... Something has to be done.

This was one of the reasons why I produced the best entrepreneurship and small business blogs list. It was to help to inform everybody of other quality blogs in our niche and it appears to have helped a little. However, we must do more.

What Must We Do?

The first thing we must do is to support and participate with other small business bloggers. Use those $50,000 degrees (or more costly informal education) to provide value to our forums. Forums like Young Entrepreneur's, or Young Go Getter's , StartupNation, or Business Leader. Leave comments or Trackbacks on blogs. Promote, Stumble, Digg, and most importantly Fetch great content. Take back sites like Small Business Brief that were designed for great content from small business blogs(I guarantee that right now the front page of Small Business Brief includes nothing but posts about SEO, affiliate marketing, and the like). Make 'em take it to Sphinn! Great content and great ideas should be rewarded.....we seem to be the only blogging "community" that doesn't think so. But I guess this is what happens when a community has no leader because it consists of leaders.

Coming Down

All I'm saying is that soooo many people are searching for the knowledge needed to start a successful business. Even though I'm tired of listening to people talk about the economy, it is making the information we provide that much more sought after. What we have to do is make sure that the people searching for it actually find it and not some watered down version produced by a poser or a scammer. They need first hand knowledge from you; the people actually sitting at home or in their office everyday writing small educational memoirs about their experiences. This will be good for everyone. It'll mean more traffic, more consulting jobs, more book deals, more opportunities, and just a lot more fun. So let's get busy. Let's do what we do best......Create, Network, and Market!

The Revolution has Begun!

Now back to your regularly scheduled content. :)

Great Business Blogs that were Overlooked

2008-05-21T08:26:00.003-05:00

On Monday, I posted the 41 Absolute Best Blogs about Entrepreneurship and Small Business. In this post I said that I would update the list when I found other quality business blogs that I may have overlooked. Well folks, it's time for our first update. I have found nine more blogs that definitely deserved to be on the list. A link to these blogs has been added to the "Update" section of the original post. I have also listed them below. Enjoy........

Small Business CEO -Steve Rucinski
Seriously Business
Bootstrapme- Shawn Hessinger
Business Opportunities and Ideas- John Crickett
Small Business Answers- Appears to have Several authors
Black in Business- James D. Walton
Up and Running- Tim Berry
Escape from Cubicle Nation-Pamela Slim
Global Small Business Blog-Laurel Delaney

Ladies and Gentleman, our list is now up to 50. Any more exceptional blogs that we may have missed?

8 Steps to Effective Decision Making

2008-05-20T09:49:00.007-05:00

"There is no more miserable human being than one in whom nothing is habitual but indecision." -William James

Entrepreneurs are faced with tough decisions everyday. Our very value, as leaders, is placed in our ability to identify problems, analyze information, and make decisions. Therefore, having a standard process is key to becoming an effective decision maker. Without it, we are just running in circles; plagued by scrambled thoughts and paralyzed by indecisiveness: . So, what is the best method for making tough decisions? Well, let's take a look.

The Decision Making Blueprint

1) Identify the problem
This one is pretty self explanatory but it must be done. One of the things that hinders our ability to think clearly is our proclivity to magnify the consequences and obscure the problem.

2) Determine the Importance
How important is this decision? Usually there are 3 basic options. You can make something better, worse, or just a lateral change. If the decision cannot make things worse, it is not a tough decision. We must save our "stress" for truly tough decisions and situations. Remember, your indifference (or lack of knowledge) about a decision does not make it tough. Therefore, learning to identify importance can help to bring clarity to your decision making process.

3) Identify the Facts
What things do you already know to be absolute truths about the situation. Forget all of the hypotheticals that we drum up. Right now, you just need the facts.

4) Identify the Options
Develop a list of options or possible solutions to your problem. In this step, you don't want to consider consequences. You just want to write down ever possible solution you can think of...even the dumb one's. Sometimes, what you initially see as "dumb" will look like pure genius once all the smoke has cleared.

5) Consider the Outcome
Identify the worst and best case scenarios. Attempt to associate those scenarios with the options you have already identified. Analyze the likelihood of each outcome being a result of each option.

6) Pray About It
"If any man lacks wisdom let him ask of God who giveth to all men liberally" - James 1:5

"But the wisdom that is from above is first pure, then peaceable, gentle, and easy to be intreated, full of mercy and good fruits, without partiality, and without hypocrisy." - James 3:17

Sometimes, prayer will make us more comfortable with a decision and this can be our confirmation from God. Look for guidance from him and you cannot go wrong.

7) Make a Decision
Using the knowledge you've gained from steps 4, 5, & 6, make an educated decision.

8) Create a Backup Plan
Attempt to identify ways that you can absorb some of the shock in case your decision causes things to take a turn for the worse. The reality is that in most cases we are forced to make decisions with limited information. We utilize the limited information available to us at the time, and as such, must make those courageous decisions fully prepared to make adjustments in case of an emergency.

For more on decision making, see: Emotions: The Leading Cause of Death

Can you think of any more steps? Please leave your suggestion in the comments section

The 41 Absolute Best Blogs about Entrepreneurship and Small Business

2008-05-19T08:33:00.015-05:00

There are thousands of small business and entrepreneurship blogs in the blogosphere. Unfortunately, many of them are not at all useful to the experienced or aspiring entrepreneur. We've all seen them. The great majority of which are e-commerce "pros" masquerading as entrepreneurship experts. This makes finding solid, useful information for the traditional small business owner very difficult. Therefore in my frustration, I have decided to create what I like to think of as "The A-List" of entrepreneurship and small business blogs.

The blogs listed in "The List" are solely there on the basis of their knowledge and content. I have given no regard to name recognition, popularity, or any of that stuff. In other words, there is no kissing up and no playing favorites. Now I recognize that there will be some omissions with a list this size but for the most part the "must-reads" are all there. Some of your favorites, or even your own blog, may have been left off the list. It's probably because they haven't posted in a forever, their blog isn't really about entrepreneurship, or it's just not good enough. So no whining! If you think we missed one just drop me a line in the comments section and we'll check it out. I'll update the list when we find some worth adding.

Other than that, enjoy the reading. I'm sure you'll find some new blogs for the old reader.
(These are listed in no particular order)

Small Business Trends- Written by Anita Campbell.
Simple design, great content, daily posts.

Just for Small Business- Denise O'berry
One of several blogs on allbusiness.com

Small Business Survival- Becky McCray, Jeanne Cole, & Genna Mae
Says for small town small business resource but the information is universal.

Small Business Arena- Kirtok
Hasn't posted in a while but good resource.

The Entrepreneurial Mind- Jeff Cornwall
Entrepreneurship Professor at Belmont provides very useful information.

Work Happy- Carson McComas
Links and resources to help entrepreneurs work smarter, not harder

Business Opportunities Weblog- Dane Carlson
Interviews, Success Stories, & Advice

Home Based Business Blog- Frank Ross
Business and Marketing Info. Also hosted on allbusiness.com.

Startup Spark- Shannon Cherry
More about running your business after startup but great information nonetheless.

How to Change the World- Guy Kawasaki
Very popular blog by one of the best in the blogosphere. Interviews, Advice, and everything in between.

Entrepreneur Success Blog- Jared Reitzin
2-3 posts per week. Also posts episodes from his pretty funny Internet show.

Entrepreneurs Journey- Yaro Starak
Very popular. Posts a lot about his experiences as an Internet entrepreneur but interesting and inspiring for all aspiring entrepreneurs.

Babe of Business- Crystal Williams
Pretty young blog, erratic posting schedule, but good content, and great design. Definitely one to watch.

Business Know-How- Tim Knox, Janet Attard
Lots of Adsense Ads in the middle of posts but content is worth looking past the visual distractions.

Young Go-Getter- Justin Nowak
Interviews & advice. Also hosts an entrepreneurship forum on this site. Be sure to check it out.

Duct Tape Marketing- John Jantsch
Design is a little busy but author seems to be very knowledgeable. Worth adding to your reader.

Be Excellent- Skip Reardon
Simple design but consistently good content.

Branding and Marketing- Chris Brown
Clean design, daily posts, passionate author

Young Entrepreneur- Matthew and AdamToen
Great blog, great forums

JD's Blog- Jason Drohn
Incredibly attractive design, invaluable information

Marketing Hackz- Jason Drohn
All-inclusive marketing information. Another nice design by JD.

Small Biz Labs- Steve King, Carolyn Ochels, Anthony Townsend
Business Research, tactics, and trends

Genius Types - Brian lee
Business Opportunities & ideas to build passive income

The Savvy Entrepreneur- Christina Favreau
A little bit difficult to navigate because of some design issues but the entrepreneurship category has some interesting articles.

Small Business Mentor- Yvonne Russell
Clever topics, tons of information

Seth Godin's Blog- Seth Godin
Insanely popular. Not strictly entrepreneurship but entertaining and informative.

Weakest Link Consulting- Erik Johnels
Young Blog but knowledgeable author. A good for the reader.

Instigator Blog- Ben Yoskovitz
Co-founder of "Standout Jobs" writes on everything from VC's to BP's

OkDork- Noah Kagan
Fun blog, very popular, lots of marketing info.

Feld Thoughts- Brad Feld
Just read it

Entrepreneurship and Positive Living- Timothy Winston
Lot's of tips on how to remain productive when your you're own boss

Entrepreneurship: A Different Mindset- Ryan Mapes
One of the founders of the Go Bog Network covers a lot of ground in his blog

Personal Branding- Dan Schawbel
A great marketing blog. Deals largely with personal branding

Branding Strategy Insider- Tom Asacher, Brad Van Auken, Derrick Daye
Wildy popular and for good reason. Definitely one for the reader

Marketing Caddy- Walt Goshert
Nice design, daily posts, great content

Marketing Deviant- David Kam
More psychology than strategy....but isn't our psychology what sets entrepreneurs apart anyway?

Small Business Branding- Several notable Authors
Very useful content by experienced authors. One of the best

Chris Brogan- Unknown. lol
marketing, social media, personal branding

Business Pundit- Seems to be by several authors

Verve Coaching- Erek Ostrowski
Entrepreneurship, Leadership, & Small Business-ship :)

Ben Means Business- Ben Jones
Last but definitely not least. The grandaddy of entrepreneurship/small business blogs. A must-have for your reader :)

**Update**
Great blogs that were originally overlooked

Small Business CEO -Steve Rucinski
Seriously Business
Bootstrapme- Shawn Hessinger
Business Opportunities and Ideas- John Crickett
Small Business Answers- Appears to have Several authors
Black in Business- James D. Walton
Up and Running- Tim Berry
Escape from Cubicle Nation-Pamela Slim
Global Small Business Blog-Laurel Delaney

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What Is the Best Age to Start a Business?

2008-05-12T11:24:00.006-05:00

This is a guest post by Cristian Dorobantescu, author of both the Energybyte and Entrepreneur Interviews blogs.

Quote: Youth is the best time to be rich and the best time to be poor. ~ Euripides

Most people I meet that want to start a business have a set of barriers that they need to get over before they can take action. Those barriers include the fear of being unsuccessful, waiting for a great and unique idea, lack of funding, or simply the unwillingness to take a risk. Although these reasons are always the same, one's perspective towards them change with age.

So what's the best age to start a business?

I would say Mid-20's. I remember some 4-5 years ago I was working in an IT start-up, where everybody from the least employee to the owners were below age 30. The owners of that IT company are now millionaires (they did it before turning 30). Looking back, I realize that starting a business in the mid twenties comes with a set of advantages which where not so obvious at that time. I can now recognizing some of the advantages of starting so early. Let's discuss a couple of them:

Reasons to Start a Business while Your Young

1) The lack of experience is conducive to open-mindedness and creativity. I mean if you ask me now to start a project, I will probably follow the same patterns that I picked up from years of work experience. This might get things done but it definitely doesn't allow for experimentation which is usually good for entrepreneurs because it causes you to stumble upon better ways of doing things.

2) Your lack of experience will also cause you to be a more ready learner, to stay up to date, and to make the most of what you know. This is one of the interesting things about the human mind. When we are forced to learn to do things on our own, we are usually more inclined to keep learning. Some of my professors at the University did not learn this way and they would often teach methods that were outdated.

3) Your youth allows for more failures. Yes, this is a good thing. As strange as it sounds, if you are to fail (and most of us do) it's better to do it while young – it gets you some experience for the latter and the failures are easier to overcome.

4)Young entrepreneurs don't have many responsibilities yet so they are at liberty to take some high risk, high reward opportunities. The lack of family to support allows younger entrepreneurs to work late hours and to focus more on their business.

5) Young entrepreneurs usually have less egos and more desire to make things happen. They are usually striving for acceptance and accomplishment. This is what motivates them in the first place.

6) Young entrepreneurs still have the support of mommy and daddy (and maybe even some older brothers or sisters). Therefore, you can throw your few pennies into your business and eat on mommy and daddy's dime (lol). Plus they're is probably secretly expecting you to fail anyway. This takes some pressure off of you – especially if you do fail.

So, should we prefer the wisdom we'll have as an older entrepreneur over the creativity and freedom we get as a younger one? I would say emphatically "NO" but I would like to see your thoughts on the subject in Ben's comments section. Also, check out Ben's post Is College Necessary for Entrepreneurs

----
About the Author
Cristian Dorobantescu is a part time entrepreneur from Eastern Europe that started blogging back in 2005, with his Small Business Entrepreneur blog (Energybyte). He enjoys writing about real life Entrepreneurship experiences, small businesses and knowledge resources for any entrepreneur wanna be.

See Christian's original post on this topic here.

Small Business Marketing: The Secret Revealed!

2008-05-08T08:32:00.007-05:00

Clate Mask wrote an incredible article over at Small Business Trends earlier this week and I thought that a few points he made would be very helpful to our audience here at Ben Means Business. Clate used the example of the "on again, off again" couple (I know a few who still can't let go of each other.lol) to show how most small business owners approach marketing. The meaning of this metaphor is that when sales are down we feel that we must go out and do things to increase them; and when sales are up, we don't market at all. Then this cycle just continues over and over again. Sound familiar?...........Yup, it did to me too!

The Lesson for Small Business Marketers

I loved the authors overall point of this article and there were a lot of points in it that really hit home with me (its a shame b/c its a pretty short article. lol); but there was one point that I think really said a lot about marketing and I wanted to share it with you as food for thought. This point was listed as one of three small business marketing truths and it read as follows:

"You are a marketer of information about the problems your product or service solves. You’re not a marketer of product x or service y. "

This statement was so important because it let's us know that not only are some of us not consistent enough with our marketing, most of us are marketing the wrong thing. This caused some intense thought and what I realized is that all of the most successful products or services solve a popular problem. The first thing that you think of when you picture those products is the problem that they solve or need that they address. We buy most of these products because we want them and not necessarily because need them. So the fact that we still think of them as a solution is due to excellent marketing.

How this applies to your Business

Sometimes we attempt to sell our product or service on the strength of it's price or individuality because we are trying to seperate ourselves from the pack and that's fine. However, we must not forget to address the problem. The truth of the matter is that people spend money on things that address their needs(or at least claim to). For instance, even if you have the cheapest toothpaste, but you don't market the fact that it cleans well, no one will buy it. Most people will write it off as a "cheap knock-off" and then go buy some Crest or Colgate.

So the point here is that no matter what advantages you identify for your product(price, health benefit, etc..), your primary marketing goal should be to show your customers that your product or service addresses their needs. Once you get their attention, you can reel them in with your other strengths.

Small Business Marketing Secret: Keep the main thing the main thing.

What valuable information can you draw from Clate's statement? Anything you want to add to my point? Leave me a comment...Let's discuss it

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5 Ways to Expand Your Business with Your Tax Rebate Check

2008-05-06T10:10:00.006-05:00

Tax Rebate checks have been a hot topic since the start of 2008. Since then, most people have been bent on buying new "toys" or catching up on bills. However, as entrepreneurs, it is important that we take full advantage of this unexpected capital. While there's nothing wrong with paying bills, I think that your government rebate check will be much better spent if you invest it into your business and allow it to grow into something much more significant.

With that said, I've comprised a list of 5 things you can do with your rebate check that will pay you a lot more in the long run. (Keep in mind that most people will get a check between $300 & $1,200)

1) Buy More Inventory

Most small businesses are forced to use profit from previous sales to buy more "product". However, there's nothing better than being able to earn a direct profit from capital that you did not produce. This frees up funds and opens the door for some very smart bookkeeping. Your business will immediately move to the next level.

2) Buy Marketing Materials

Marketing is one of those important things that small businesses neglect because they lack the funds to do it successfully. However, your tax rebate check is a great way to expand your marketing efforts. So go out and buy ads, get that website built, buy business cards, etc... Do anything that will create brand awareness. Trust me, you will be glad you did!

3) Expand to New Markets

Preferably foreign markets..but if your business is local or regional, you should look at what it would cost you to offer your business to a wider market. With the many uncertainties that surround the U.S. economy, it is imperative that we broaden our reach so that our businesses do not go under in the event of some type of crisis. (see also: Export Trade)

4) Buy Back your Freedom

Some people pay for part of their business on loaned or borrowed money and have been using a cut of profit to pay back these funds; Others get partners or stockholders to help cover expenses. If either of these apply to you, I suggest that you use your tax rebate to help buy back your freedom. You want to get rid of all the entitlements while your company is still small. A "buyout" will cost you a lot more in the future and you want sole possession of all profits when your business reaches maturity.

5) Put Rebate In Business Savings

I am not a fan of this method but it is a lot better than blowing the money. At least with this method the money will grow, it will just grow at a much slower rate.

No matter what you decide to do with your rebate check, just make sure that it will generate some money for your business. Spending the check on things that you have the ability to do already is a bad idea. Use Robert Kiyosaki's principal on this one, "put the money to work for you." Anything else would just be considered a blown opportunity(and a blown check)!

Also, for those of you who have yet to receive your rebate, the IRS has created an online tool that will tell you how much your check is and when it will be mailed(or deposited). Get your rebate information here.

Please leave your comments & don't forget to subscribe!

Business Advice for Starting a Small Business

2008-05-01T14:08:00.007-05:00

I've finally landed in my hometown of Detroit, MI and am ready for some R & R (YES...I said Detroit). Therefore, I decided that I won't be posting any new content until Monday. However, this week was full of business advice from some of the best in the blogosphere. So just in case you've missed anything, I've comprised a list of some must reads to get you through the weekend.

1) Top 10 Strategies for becoming Uncommonly Successful-My favorite this week was an article written by Stacey Mayo over at Business Know How. Nicely written article that uses exerts from her new book. Re-iterates many things that we(entrepreneurs) lose sight of when starting a small business(some of which are mentioned in my post Why are You and Entrepreneur?).

2) New IRS Campaign targets help for Small Business Owners -Denise O'Berry over at http://www.allbusiness.com/ has written a very informative article about a phone forum the IRS is providing small business owners to help educate them about filing business taxes. Taxes are never an easy task, especially for the brand new owners. So read the article and make sure to attend the IRS' forum.

3) 10 Things you should know when Marketing - Article written by Evan Carmichael outlines a post written over at http://www.conversationmarketing.com I would've used the original article but it wasn't from last week so Evan gets the credit! I really enjoyed this posts. Very practical advice with a humorous undertone. Great Read!

4)Importance of Time Tracking - This was the second in a series of posts on this subject. It discusses one of the major topics to consider when starting a small business. Great topic, great article. Nuff said :).

5)5 Tips for Success when Traveling with Your Business - This was a post from popular blogger Yaro Starak. It gives practical advice about getting things done while on the road (I will be utilizing some of these tips this weekend).

For those of you attending SOBCON, have a great time, I look forward to reading all about it. To everyone else, enjoy the reading and have a great weekend!

Business Failure Rates-The Shocking Truth

2008-04-29T06:11:00.003-05:00

Business Failure Rate statistics are some of the most widely misqouted statistics in the world. I've heard everything from 90% of startups fail in their first year to 20% fail in their first year. I think it's safe to say that the actual business failure rate is probably somewhere in between those numbers. I can understand why this is such a hard statistic to keep though. There is no surefire way to track every sole proprietorship, home based business, ebay entrepreneur, etc...that decides to start collecting money for their services. This is why I think that somebody needs to take the liberty of breaking these statistics down and displaying failure rates for each type of business entity.

For instance, a corporation will probably not fail at the same rate as a sole proprietorship simply because someone who has taken the time to form an corporation is probably planning to create a larger company and has done his research. Whereas anybody wanting to earn a little extra cash can be a sole proprietor(see 411 on Sole Proprietorships) so they will be quicker to close up shop because their startup costs were not as high. Business failure rate statistics that are broken down this way will be more useful to aspiring entrepreneurs.

However, despite the innacuracies that exist with the way that data is currently collected, I think that Scott Shane over at Small Business Trends seems to have found the most accurate statistics out there. These statistics were collected by the Bureau of Census for the Office of Advocacy of the Small Business Administration. The statistics in his article(as seen in chart above) show that about 25% of new businesses fail within the first year and 36% fail within their second. Now while I do think that these numbers are more accurate than those previously spread around the internet, I think they still beg several questions.

One of the most important questions was posed by Susan Cartier Liebel. In the comments section of Scott's post she says:

"When the word ‘failure’ is used here…does this mean simply closed shop? Businesses close shop for different reasons, are reborn under another name. People close businesses not because they failed but retired, moved on to another venture had to move to another state and chose not to sell it. It does not equate to failure…and I’m not talking about psychological use of the word.

So, my question is, does this chart simply show businesses closing after 10 years or does it break it out further? Also, as you say, it is different across professions and this is an important qualifier."

She took it a step further and wrote a post about her concerns for these statistics. It is a pretty interesting read and she actually got some of her questions answered in a reply from Scott. These are the types of questions that always pop into my head when I see business failure rate statistics but I am glad that Scott has located and shared some more accurate(and encouraging) information than what was previously out there. So take a look at some of those articles and share your thoughts on what you believe to be the truth about business failure rates.

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business failure rates, startup, small business, entrepreneurship

Business Class 101: The Fall of EOS Ariline

2008-04-28T06:39:00.006-05:00

As of today, EOS Airlines is officially closing it's doors and has filed for bankruptcy. EOS was one of four "business-class only" airlines that opened in the last two years. Maxjet, one of the others, closed in December. As always, there are things we can learn from these business failures. So let's take a look. Oh, and just for fun, we'll call today's lesson "Business Class 101" (pun intended).

What caused the Bankruptcy?

Well, right off the bat I see some potential problems. The first being that this airline decided to create a very small niche in an already shaky industry. The airline industry was hit hard by the events of 9/11. Gas prices have also been on a steady rise since that time. So why would you want to own an airline, that would charter cross-country flights carrying only 48 people per flight? Seems a little risky....

The second problem that I see with this business niche is that there doesn't seem to be a real market for it. With the state of the economy, most business-owners are looking for ways to cut cost. So the guy who would have flown business-class eight years ago is now pecking on his laptop in the seat next to us(economy class travelers). This has been going on for the better part of a decade(which is when EOS went "business-class only") so how could they not foresee a potential problem only 2 years ago? I don't know. Maybe, it's easier to see in hindsight or from the outside looking in....but I find it hard to believe that EOS execs haven't come to the realization that it was just a bad idea.

All of us (entrepreneurs) have them. We come up with scenario after scenario and all of them seem like gems until we actually begin to put them into action. Then we close one after another, until we find the one that actually works. There's nothing wrong with this process, UNLESS, you learn nothing from those failures. So what did we learn from EOS?

1) Niche does not always equal rich?

Creating a niche is theoretically a great way to expand your business. However, (as stated earlier) theoretical ideas do not always convert into realistic success. Picking a niche can be difficult, so just be sure that it is the correct thing to do for your business at that time. For more on the correct way to "niche" see Niche and Get Rich.

2) Timing Is Everything

I think that EOS' business model would have been great had it been implemented 10 years earlier. However, the window of opportunity to profit from an idea is usually small and this case proved to be no different.

3) Can you think of any?

I look forward to hearing what interesting things you learned from EOS and how we can apply it to our own ventures. Please leave a comment.

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entrepreneurship, EOS Airlines, bankruptcy, gas prices

Social Networking vs. Business Networking-The Art of the Smooz!

2008-04-25T07:00:00.005-05:00

Social Networking is one of the most important things you can do for your business. Notice that I used the term "Social Networking" instead of "Business Networking". Yes, I know that the two are supposed to be different, but as usual I tend to disagree. I think that Social and Business Networking cannot actually be separated. When people get the feeling that you are only associating with them because of what they can do for you, it causes them to remain distant(which limits the help you can actually get from them)....And as you probably know, It is always easier to get things done with people who know you(or at least think they do).

This is why for networking purposes, it is more important that people like you as a person than it is that they know about your business. Now I am not saying that you should just neglect to mention your business altogether, but I am saying that your first priority should be to sell yourself and not your product or your business. Rule of thumb: "People remember People." Remember that! (For more on this read This Entrepreneurship Story)

How It's Done

Well, there is an art to developing this perfect social/business relationship. I have broken it down into 3 sections. Below I have provided tips on each of the 3 major factors of Social Networking:

The Introduction

1) Don't be desperate- If you recognize someone across the room, don't make it so obvious that you are trying to get to them. That makes it a whole lot easier for people to dismiss you as a "nobody" once you actually do get to them.

2) Be Yourself- People can see right through you when you don't. I creates an atmosphere of distrust and the relationship will be over before it even starts.

3) Be Knowledgeable- Even if your not on the "who's who" list for your industry, you must still carry a confidence that says "I know exactly what I'm doing."

4) Be professional yet personable- It is good for people to recognize your expertise and professional capabilities but even in the business world, "nobody likes a stick in the mud."

The Follow-Up

1) Keep In Touch- The meeting is only the beginning. You have to stay in touch in order to develop the relationship. Send an email to find out how things are going, call every once in a while. This makes it a lot easier when you actually have to call in a "favor."

2) Can you think of any? (Leave in Comments section)

The Friendly Favor

1) Don't go overboard- You can easily end a relationship if your request doesn't match your relationship. What do I mean? Ex: Don't ask a guy you just met for a $1 million business loan. He will think your crazy. (Ask for $900,000 and work up to that :))

2) Use frugally- The guy who requests a favor a week will get none. A favor a year works for a healthy business relationship.

For more tips on business networking, check out Lorren Biffin's article over at YoungGoGetter.
One quote I like from his article reads " Don’t ever give false impressions of who you are or why you’re trying to network with them. Anything less than complete honesty is, well, dishonest. Nobody is going to trust what you bring to the table if it smells fishy or you if you can’t at least find a part of yourself to feel confident about."

I thought this comment was right on and it re-iterates Tip#2 of my "Introduction" section. Also check out Stephanie Speisman's article on Business Networking. After reading all 3 of these you should be a networking fool! So get out there and make something happen!

Anything I miss? Wanna add a tidbit? Please leave it in the comments section. I look forward to hearing from you!

business networking, social networking

The Best & Worst Entrepreneurship Story Ever Told!

2008-04-22T11:16:00.006-05:00

The Real Detroit Scandal

Out of respect for my colleague, his identity shall remain anonymous(for now). The wounds of this experience may still be fresh and I wouldn't want to add insult to injury. So for the sake of this post he will be referred to as "Jackson"(don't know... just go with it).

Amid all the recent talk of Mayor Kilpatrick's indiscretions, I think it's time to draw attention to something that happened in the Motorcity that is a lot more newsworthy(and no, it's not about crime). The "real" scandal in Detroit has nothing to do with adultery, text messages, or gangsters in uniform. The main character of this story is not a high ranking official or a sashaying call girl(for that type of "news" please click here).

This is a story about entrepreneurship, scandal, rags to riches (then back to rags), and "the man". It is both one the greatest and the worst entrepreneurship stories ever told. A completely true tale of "Jackson", an entrepreneur that I worked for and learned a lot from as an undergrad.

The Making of an Entrepreneur

Jackson, was a poor Polish/Jewish American, who grew up in my hometown of Detroit, MI. By early adulthood, Jackson was homeless and hopelessly addicted to crack cocaine. Jackson slept on a bench in Detroit's Belle Isle Park every night. In just a few short years, Jackson would manage to not only recover from his addiction but to also enroll in college, earn his B.S. in Guidance and Counseling, and to begin work at a drug abuse treatment facility.

His entrepreneurial genes soon took over and he found himself partnered in a drug abuse counseling business with a friend. They rented office space and Jackson committed himself to doing counseling sessions in between his graduate classes. He would often peer out of the window of his office and point at the bench where he used to sleep(I promise, it's true). As their counseling business struggled to move forward, Jackson had no plans on quitting. Somehow convinced of his business' worth, Jackson went into debt to buy out his partner.

Now a sole proprietor, Jackson expanded his business by adding niches and providing services for clients classified as "difficult/resistive". This tactic proved genius and his business exploded. Jackson's services were in such high demand that Jackson was able to open a residential treatment facility in addition to his original outpatient center. He was now the man, and a pretty wealthy one. He owned two companies that provided quality services that no one else really wanted to provide. His business would soon prove to have major problems. The quality of his services, however, would not be one of them.

Image Is Everything

Jackson was the flamboyant type. Mink coats, aligator shoes, expensive jewelry, and a armpiece/wife who was a couple decades his junior. Health Insurance Companies (who were paying his clients bills) began to take notice. They didn't like seeing a guy live so lavishly off of services that were costing them a fortune. So his lawyers (and everyone else) began advicing him to tone it down a bit......but he wouldn't listen. What would you expect from a guy who was poor most of his life, then homeless, addicted to crack, and could now buy anything he wanted? I mean, come one, the guy earned a P.H.D. a few years after sleeping on a park bench. I would think, he deserves to strut his stuff a little....or at least he deserves for people to understand why he would want to!

Well, the insurance companies didn't understand, and Jackson quickly became a target for them. United by one determined(but evil) representative, these companies banded together and began to withhold payments, opting rather to engage in lengthy legal disputes over pricing(and anything else they could think of). This was the beginning of the end. Jackson would go on for months juggling expenses as he awaited payment for his services. After almost a year, he had nothing left to give so he had to shut the doors to his residential facility. The expensive, designer clothes he had once worn were now being auctioned off on the internet. Oh, and his wife? Well....let's just say that it's not looking good for the relationship.

Lessons from My Entrepreneur Guide

This whole thing is terrible.....and I feel bad for him, but I must say that the guy who taught me a lot about entrepreneurship through his success has taught me so much more through his failures. Here are a few life, I mean business, lessons that I learned from my entrepreneur guide's misfortune:

1) Corporate Responsibility is a Personal Responsibility

We always hear about the importance of corporate responsibility. Now I understand that there is really no such thing. The business has no hands, no eyes, and no mouth but yours. To your customers, you are your business. So it is just as important to protect your perosnal image as it is to protect your business' image. For the outside viewer, there is really no way to seperate the two.

2) Prepare for Hard Times

The business world is so fragile. You have to learn to prepare for bad times while times are good. This is something that I think Jackson must have done well because he was able to float all of his expenses for the better part of a year before his resources were gone. In normal instances, that kind of cash would probably suffice. In this extreme instance though, it did not. Just be sure that you remember that business will not always be "this good".

3) Public Success is a Sin

Now this one goes way back to elementary school. Whether it be due to jealousy or some other factor, most people will never celebrate your success with you. It usually just makes them feel worse about their own life. So keep the public displays of wealth or accomplishment to a minimum. If not, it forces people to choose sides. They will either become a way too vocal friend or a silent enemy. Both of whom can equal added drama.

A Message for my Entrepreneur Guide

So this post is for Jackson. A person for whom I hold the utmost respect. You are definitely a trailblazer, worthy of all you had received. If only they could have seen past the external..... I wish you the best and know that this setback is only another piece of the story of the ultimate overcomer. When you find yourself back on top, I'll update this article and even include your name and a picture. Here's to you!

I hope you guys learned something form my friends story. Please leave a comment and add to the list of points I already posted. Thanks and look forward to hearing form you!

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real detroit scandal, small business, entrepreneurship, entrepreneur guide, entrepreneur story, Kwame Kilpatrick

Hold Off on the Business Plan- Read This First!

2008-04-21T06:25:00.003-05:00

It seems that more and more people are deciding to leave their 9-5, choosing rather to launch out into the deep, unforgiving waters of entrepreneurship. Many of them, however, return to the docks drenched in debt and deplete of all ambition. Unfortunately, this will be the fate of most small business owners but it does not have to be yours.

So what will stop the grim reaper from dragging your business to the bankruptcy yard in the sky? Will it be your brilliant business plan? Your enormous budget? Maybe that adorable smile? Uhmmm...NO...No....and...Heck No! All of these things will contribute to your success as an entrepreneur(especially that smile) but there are some questions that you need to ask yourself about yourself that will ultimately determine your success as an entrepreneur.

WHY DO YOU WANT TO START A BUSINESS?

The first of those questions is "Why do you want to start a business?" The answer to this question for most people will either be because they want more money, their tired of their boss, their tired of having a set schedule, or some combination of the three. While these reasons certainly have their place in one's motivation to start a business, they will not provide you with the drive necessary to fulfill your dreams. Your dreams must be grounded in something much more.

This is why my first advice to new entrepreneurs is to re-evaluate your business idea to see if it is something you have a passion for. Ask yourself, "Would I do this if it had no chance of making me rich?" or "Could I do this everyday without assistance if I had to?" Your answers to these questions will tell you a lot about how successful your business can be.

The majority of entrepreneurial failures occur simply because people give up too soon. They become weary of hurdling obstacle after obstacle and decide that the reward is just not great enough; or they've grown so weary that the can no longer envision a reward at all. However, if you are truly passionate about your product or service you will make it through these rough times because you can continue your journey for the love it alone. As you continue to work strictly for the love of it you will one day find yourself earning a profit(probably greater than you imagined).

WHAT IS SUCCESS?

The second question you want to ask yourself is "At what point can I consider my business a success?" This is something that most people would never stop to ask themselves. They will just leap into a business venture and expect to gage their success according to the standards of people or other businesses. This is absolutely the wrong thing to do. You have to set realistic goals for your business.

Sometimes we are striving to push our business at the speed or to the level of another business and we never stop to realize that we have been productive already. I remember when I was working with a network marketing company that so many team members would complain about how bad they were doing and how good others were doing and I would have to constantly remind them that they were not that bad off. I would say, "You've presented to five people and 3 of them joined your team. You're signing 60% of the people you present to. Maybe you don't have 100 people on your team yet, but 60% is a darn good number." Nonetheless, it was always just a matter of time before these people quit because they were measuring their success on the wrong scale.

This is why you always want to set realistic goals according to your own expectations for your business. Success for you may simply be being able to cover your bills and having more time to spend with your family. It may not necessarily be becoming the next multi-millionaire. If this is the case, you want to make sure that you measure your success according to the scale that you are on. Doing so will help you to avoid the feelings of despair and hopelessness that fuel most business closings.

business plan, startup, entrepreneurship, small business

Why Negativity is Great for your Business

2008-04-14T08:13:00.010-05:00

There are hundreds of things that must go right in order for you to succeed as an entrepreneur. Let's just be honest.......it's difficult. However, it becomes ten times more difficult when you begin to listen to your critics. Ok, so maybe you've went into a few hundred "surefire" business opportunities and none of them have materialized as of yet; Or maybe they have shown some promise but not to the extent that you originally thought. That shouldn't cause people to lose faith in you and to speak negativity over every new idea you bring to the table, should it? Well.......honestly.............YEAH, IT SHOULD!

Those people usually only propel you to greatness. Without them you become tired and and are more apt to give up. Every successful entrepreneur has had to deal with it. I know that sounds pretty cliche but it's true. Look at the biography of any successful entrepreneur that you know and I can almost guarantee you that their business began simply because of some larger entity that didn't believe in the person or the product. These naysayers are simply a part of the success process.

The key to success, however, is not to allow theses negative forces to destroy your confidence in yourself or your business. You have to learn to put everybody's comments into the proper perspective. Remember, you have the power to control the way you see things. Below you'll find a few key points that will help you to put the negativity in its place.

NOOOOOOBODY KNOOOWS........

The first thing that you have to realize is that nobody will believe in your vision. Not family, not friends, not co-workers, not church members......NOBODY! The vision is not theirs, it belongs to you. I like to look at it this way, "If everybody could see the value in my idea, then it's probably not revolutionary at all. Thus, not that profitable." The fundamental principle of profiting from "the next big thing" is to be the first to see it coming. So don't expect anybody else to immediately jump on board with you.

ITS NOT FOR EVERYONE

The second key is to realize that entrepreneurship is not for everyone. Your drive to create a path for yourself is a God-given instinct. That is why you've always envisioned the "cube life" as settling and also why people don't understand your passion. There is something in you that, despite the failures, ensures you that YOU are a founder, a visionary, a leader. At a young age you probably found yourself driven to create earning opportunities for yourself; Or you were at least intrigued with the idea that you would own your own business as an adult. You must realize that this drive does not belong to everybody............and for good reason. I give much respect to those people who have the perseverance to be an employee for 30 years and retire. I have just come to the realization that we don't share like passions.

Fulfillment for us, entrepreneurial types, comes from taking a thought and pushing it past adversity into stability. We thrive on the liberation that comes from being able to create a dollar rather than to earn one. So don't be discouraged if it seems that you are in those turbulent waters all alone, just know that success means different things to different people......and you share your definition with the minority.

FIND THE SILVER LINING

Another key to fighting through the negativity is to find something positive. One thing I learned from network marketing is that there is power in positive thinking. As a network marketer, you could have had a terrible week and be about to give up on your business, but once you make it to the big conference or even a conference call you would come away with new life and optimism to spare. I would know everything that would be said before I got there, I even knew that they were saying it just to make me go out and work harder....BUT.....IT STILL WORKED! This reminds me of the scripture that says "Faith comes by hearing." It is the exact same principle and it is the absolute truth.

So, when other peoples negativity threatens your growth, go out and find something positive to get your juices flowing again. Read a blog, or a success story in a magazine, or even call a friend who shares your ambitions. I guarantee that it will not take much to get you back in the right state of mind again, because everything that you need to succeed has already been placed inside of you. All you have to do is protect it from the grim reaper of negativity.

negativity, motivitation, entrepreneur, small business, christian, business growth, entrepreneurial growth, skepticism

The Defining Moment

2008-04-02T12:27:00.004-05:00

One of the most difficult things for most entrepreneurs to do is to stay motivated. There always seems to be an overwhelming amount of discernibly justifiable reasons to give up and to concede your ambitions for contentment. One minute your up at all hours of the night carefully constructing your business plans, or on a family outing and the whole time your thinking about what you will do when you get back to your laptop; One short month later you can't think of one good reason why you should put any more of your time into that dead businss venture.

I've seen it time and time again...........................................................................................in myself. I had been working pretty hard on trying to obtain business for our Export Trading Company and things were actually going pretty well. Then we hit a few deadspots and it was incredibly hard to get myself to make pushes for the business again. The only thing that will usually get you going when you reach this point is a sudden influx of opportunities(which thankfully did happen in my case, but does not always).

Therefore, most people just close up shop when they reach this point in their business' life. This is the main reason for the incredibly low success rates of new businesses. It's the desire and the determination to persevere through rough times. It is incredibly easy for most people to give up their dreams because they usually have some previous "career" that they can fall back on. Well, believe me, I've had those thoughts too but if your like me there is something in you that just won't allow you to totally surrender. You always feel that success is right around the corner.

I read a post on my favorite blog the other day that spoke to this very issue. If your struggling through a similar time in your business venture it may help to give you the insight and motivation that you need to keep going. HERE IT IS.....Enjoy!

It's Been a Long Time

2008-03-12T06:39:00.003-05:00

Well, it seems like forever since I've written on this blog but it feels good to be back. So much has happened since I last posted here. Some things good and some things bad. One good thing was that I was pleasantly surprised to see that this blog was still receiving hits even though I hadn't posted since June. My Google Page rank went up and everything. That is incredible! I really appreciate all those who continued to visit this URL while I was on my little hiatus.

I am now in a position where I can begin to write again and I plan to publish at least 2 posts a week. My focus will still be to publish posts that will empower entrepreneurs. So check back later this week and there should be something to help push your business to the next level. God bless!

Choosing the Perfect Business Name

2007-06-13T11:12:00.002-05:00

The name is one of the most important aspects of your business. Once you've decided to become an owner, the name is probably the first thing that most people start to consider. While I do think that there are probably some other concerns that should be addressed first, considering the name of the business should absolutely be given some priority.

Sometimes people will decide upon a name simply because they are tired of putting thought into it. I guarantee that this will come back to haunt you. Make sure that the name that you choose will be a sustaining representation of what your business is about. I have listed a few things that you should consider when naming your business:

1) Is it Descriptive?

This is probably the first thing that you want to ask yourself when you have tentatively decided upon your business name. You want to make sure that a potential patron can easily figure out what product or service your provide just from the name of your business. How many times have you driven by a building without paying it much attention because you don't know what it is that they do? People will automatically assume that if they don't know what you do, your product or service is not applicable to them.

For instance, I drive by a tall building everyday with the words "Bad Ass" sprawled across the top of it. Of course I payed attention to the building because the title of the company was just ridiculous. However, i had no idea what it was that they offered. Turns out, they are a coffee company very similar to Starbucks. It is allegedly some very good coffee too! So how many people do you think drive right by that place on their way to the Starbucks up the street? Hundreds, I can guarantee it.

One day everybody will catch on that this is a coffee shop but how much many potential customers will have rode right by it by the time their name gains the Brand Awareness of Starbucks? Hmmm..... Makes you wonder about their marketing technique doesn't it. So make sure that your title is representative of what you offer your customers(especially in crowded industries). This will give you an advantage from day one.

2) Is it Memorable?

Well, the company I mentioned above gets extra points for this one. A memorable name is essential to building brand awareness (although its no point in being memorable if nobody knows what you do). Short, simple names that are descriptive are very easy to remember and tend to stay on the minds of customers longer. For instance "Burger King" is a premium names because it conveys a message about both what they serve and about the quality of their products. The best part about it is that they've done this in two words. How easy is that to remember?

A memorable name coupled with some clever marketing tactics could gain you an immediate influx of customers. However, without the memorability, marketing is much less effective and will end up being much more expensive.

3) Is it Timeless?

We have to remember that most business will evolve over time to become slightly different than was initially envisioned. So it is imperative that you choose a business name that will be a great representation of you even in the future.This particular factor is the one that usually requires a great deal of thought and some insight. Nonetheless, it is something that must be considered. For instance, you wouldn't want to name your store "Burgers Only" because you may want to sell fries in the future (bad example but you get my point).

If your gimmick was that "your burgers are so filling that you don't need fries", I would recommend that you use that in your marketing schemes and not your name. That way if your gimmick does not go over as well as you had planned, you can easily adjust your menu to include some products that may bring in more customers. Get my drift?

Final Thoughts

Your business name is your first impression and we all know how important first impressions are. Most people will draw conclusions about your company from the very first glance. So even if your product isn't great, people may have a good image of them from your name alone. It's kind of like cooking. Most chefs will tell you that the majority of taste is sight and smell. Therefore, the greatest chefs are able to make food aesthetically pleasing. Although actual palatability is important, modern chefs have recognized that there are other factors that influence their desired result. The same principles apply to your business name. The name alone can go a long way towards making your company a successful one. Leave your comments...

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choosing a business name, entrepreneurship, small business, startup

The Key to "True" Financial Freedom

2007-06-11T14:47:00.000-05:00

Every entrepreneur has dreams of developing financial freedom through their business. However, you have to ask yourself at what point are you independent and how much will this freedom cost you. Success cost something and most of time the price of success cannot be measured in dollars and cents. My experiences have caused me to measure potential business opportunities differently.

I now consider how much time the venture will cost me in comparison to the amount of money I will make. Freedom for me is more about time than it is about luxury. As Yaro Starak states, I would rather make "$5,000/month working 2 hours per day than make $10,000/month working 10 hours a day." It's all about what is important to you. If you view potential business opportunities this way it will help you to make business moves that will enhance your life as well as your bank account.

Greed vs. Accomplishment?

There are some people who would rather work the 10 hour day for more money. They may just possess a drive to get more; or for these people, money may be freedom. Now I must say that most people who prefer this method are simply greedy, but there are some who do it simply because money, for them, signifies accomplishment. In this case it is totally understandable. We have all contributed to this way of thinking. It is common practice to see large houses and luxury cars and immediately give a certain level of respect to the owner of them. Therefore, most people are motivated to obtain "things" rather than personal freedom.

True Freedom

I used to be one of those people until I began to try and achieve this status and realized that I was not happy. So I now choose to participate in ventures that yield a high return for a limited investment of time. I am constantly on the look out for these types of opportunities. I have attempted several money making ventures that I eventually quit because I just didn't want to make the kind of time commitment that was required. The lure of the million dollar business initially attracted me to those opportunities but I soon recognized that I would rather make less money and have more time.

The "Store Owner Lady"

I was recently talking with a colleague who told me about a lady he recently met that owns a dollar store. He spoke about how she was 1 of only 2 employees in her store that was working that day. She was running around, noticeably stressed, attempting to be the manager and an employee at the same time. She would often go into the back in order to complete office work and return to the floor to work the cash register when lines backed up.

This lady is obviously not in a situation to leverage her time effectively. The store is probably not be making enough money to hire more employees, so she is required to work extra hard in order to maintain her income. This is absolutely the worst way to make money (other than being in a cubicle). This all goes back to Robert Kiyosaki's "Cash Flow Quadrant", which clearly expresses that the most efficient way to make money is by owning a "system" instead of a "business".

The "Store Owner lady" has the right idea by choosing to own her own business but she obviously did not take the time to evaluate what this type of "freedom" would actually cost her. So, while we all endeavor to seek financial freedom, I encourage you to make sure that your entrepreneurial path leads to your desired end. Be blessed and Leave your Comments.....

The Seasons of Your Business

2007-06-04T08:49:00.000-05:00

We've all been to the point where we feel like our business (and/or our life) is just not where we want it to be. You feel like your doing everything you should be doing but things just don't seem to be going your way. Sometimes it may seem like the work that you are doing is actually doing more harm than good. Well, I can assure you that this is not the case. I can also assure you that you are not alone in feeling this way. Everybody who has ever become wealthy has faced a similar time during the course of their business. The key to overcoming this situation is to keep everything in perspective. Let me explain...

I was talking to my father yesterday and something he said (sorry, can't remember exactly) caused me to remember a sermon he once preached at my church. As I started to think about the message of that sermon, I noticed that several factors in the text related directly to what we experience through entrepreneurship (stay with me I promise this is relevant). The text that he chose was from Ecclesiastes Ch. 3, which reads:

Ecc 3:1 To everything there is a season, and a time to every purpose under the heaven:
A time to plant and a time to pluck up.
3:4 A time to break down and a time to build up;
3:6 A time to get, and a time to lose.
(So on and so Forth)

What does this mean to my business?

Well, what I learned from this text is that we are never really at a stand still; it just seems like we are. Most people will look at this text and conclude that there is a "time for every purpose". But we should look at this text and take it a step further. Not only does every purpose have a season, every season has a purpose. There is never a time when we are not contributing to motion. Either we are moving ourselves forward or we are moving ourselves backwards, but we are making a contribution.

If we find that we are doing the work that is necessary for forward progress but have yet to see the fruit; it is probably just because we are expecting a harvest during the wrong season. We have to learn to continue to plow and sow and do the things that are necessary for growth with the understanding that a season for harvest is coming. The people who do this are able to one day realize the benefits of their labor while the other 95% will pack it up and quit having completed their work for naught.

Im sure you've heard this...

You will often hear successful entrepreneurs speak of the theory of "feast or famine". Most of them will testify that their business ventures go from seasons of extreme debt to seasons of extreme wealth. Well, "feast or famine" is probably not the correct phrase to describe this situation. If they were to place things in proper perspective they would recognize that the "famine" season is nothing more than the season for "building or planting." The "feasting season" is the season of reward.

If you keep up with professional athletics, you will know that most of them consider the "off-season" the most important time. It is not the season where they complete the activity that directly brings them money. But the off-season is the time when they put in all the blood, sweat, and tears to enable them to to produce during the season. So it is with us and our businesses. If we do not put the work in during our "off-season", there will be no production during our "season".

I say all that to say that if we learn to keep things in the proper perspective it makes it much easier to do what is necessary to accomplish our goals. We know that we will face adversity. We also know that building a business takes time. However, what we should remember is that for everything there is a season and that the season for harvest will come only to those who have endured the season for sowing. So stay faithful and dedicated because, just like on earth, there must come a change in the seasons.

Turning Opportunity into Prosperity

2007-05-31T11:11:00.000-05:00

With all that I have been through in the last week or so I have a lot of things stored up that I need to say. My experiences have caused me to re-evaluate my life and my businesses. I have realized that a lot of times my focus was not in the right place, and therefore, my business did not flourish the way that I expected it to.

Are You Guilty of This?...I Am!

We all sometimes become self-absorbed and think that we have it all together. We will come up with the perfect business plan, conceptualize the ultimate marketing strategy, and attempt to carry out the plan according to our own brilliance. Well, I have recently realized that every ability and opportunity that we have is simply another opportunity to glorify God. We were given these opportunities and/or abilities for that purpose.

So they will flourish only when we are alert and responsive to opportunities for us them as a ministry. I am not saying that you have to stand behind the cash register quoting scripture to every customer; but I am saying that people may see something different about you even from the way your business operates.

Even the simplest things will draw people to you that need to hear your story. Will you allow yourself to be used to bring that person to God? or will you selfishly send them on their way with a receipt like every other customer?

My Own Experience

I can remember times that I was blessed with an opportunity and didn't even think about the reason that I may have been given that opportunity. Because of that oversight, I would not recognize when God was trying to use me for something. It would not hit me until later that I had missed the "opportunity" that was probably the reason I was put there in the first place. How foolish of us to think that our blessings are of our own power and come with no price.

Our whole life should be a ministry, including our businesses. We have to re-structure the way that we see the word "opportunity". In every "Business Opportunity" there is a "Glory Opportunity". If our focus is on the latter, you will begin to see the true potential of the former. So lets learn to be "about our fathers business" even while operating our own. Because if we are about his business, he will be about ours. Be blessed!

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