Growing the Power of One

by Dianne Rinehart, October 2004

It's the happiest of all outcomes. You've launched a small business that sells your skills and talents, and now you have so much business, you can't do it all alone anymore.

The question now is: How to grow your business while still assuring clients that they will get what they're paying for: your personal expertise?

Here, tips from the experts - Brendan Calder, an adjunct professor of strategic management at the Rotman School of Management at the University of Toronto and Catherine Graham Bell, Kingston-based image consultant - on how to grow your business without alienating your clientele.

There are two ways to expand your business, you can hire someone full-time to "be your brand", says Calder, or you can hire contractors whose work you already know and trust, says Bell.

Hiring staff:

1. Choosing someone who can represent you and your brand - as well as you can - is an art in itself.
   • "The only way to find these guys is to observe," says Calder. Be on the lookout for people at conferences - anywhere - who can represent you. Look for a person who could be you if they had your name! Watch how they work, he advises.
   • When you think you've found someone "who fits", says Calder, do the "Toledo test." Imagine spending a weekend in Toledo - or anywhere you would never go! - with them.
   • If they are still who you would feel comfortable working with, confirm that they, in fact, have the skills you need.
   • Make it clear to them that what the client is buying is "you". Say to them: "I'm the brand. Do you like me?" You need to make it clear up front that you are what is being sold.
   • Then put them on assignments with short turnaround times so you can gauge the quality of their work.
   • If they're not working, get rid of them.
2. Don't worry that the client will be disturbed to see someone else working on their project, says Calder. Use phrases like: "this is our work" so they know you're involved and they're getting the results of "your work" and standards. The fact that you are overseeing it is implicit in the fact that you're letting this person use your brand name.
3. Get over the fact that you aren't personally doing the work. The client isn't interested in you, says Calder. They care about results. They want the results "your work" will give them.
4. Another person on the team can actually make a client more comfortable, says Calder. "Clients like to know there's someone to answer the phone in case you're gallivanting around!" What you are as a team is all part of the same person all the time, says Calder.

Hiring on Contract

Sometimes it can be easier to go from a one-person business to hiring contractors on a when-you-need-them basis, says Bell. The advantage to this solution is that you stay in control about who serves the client,, while not having the overhead of a full-time hire.

For example, a client needed an expert on body language for a corporate training seminar Bell was hired to give, and it wasn't something she had expertise in. So she hired someone to do it on contract. "I had already heard this woman speak, and I felt confident in recommending her. And I was there with her," Bell says.

Among the ways to ensure the client still gets your expertise when you are hiring someone on contract:

Hiring

1. The key to hiring well is having seen the person in action, says Bell, and liking their work.
2. Secondly, on a first contract, you will need to be available to oversee their work. But after working with them once, and feeling confident about the quality of what they deliver, you can contract them in future without having to be present to watch over their delivery with a client.
3. Even though the contract work is temporary for a project, hire that person as if you were hiring them fulltime, says Bell. "I always say, when you hire, do so with the goal and mindset that you are hiring someone with the skills to replace you if they have to do similar things. Ask yourself: 'Can this person take over?' Some people are afraid to do that, but it's important," says Bell.
4. Also, take the contractor's image into consideration. "Are they professional? Are they exuding the same messages you are?", asks Bell. "Their image has to be congruent with the company image and the message you want to portray."
5. Remember, image is more than personal appearance, says Bell. Ask yourself if they are going to be able to make casual conversation with the client and put them at ease. Can they go into a room and network and strike up conversations? Are they visible in the community and involved?
6. If you hire more than one team member, you need to match the strengths of each team member to each client. "It may not be their hard skills, but their soft skills" you need to match, says Bell. For example consider how they will relate to that client.

Making the client confident

1. Ensure the client recognizes that you are overseeing or confident that the work performed for them meets your standards. Say something like: "I'm leaving you in good hands," Bell suggests. This confirms the person has the skills that are needed, and you're putting the client at ease, she says.
2. Take steps to let the client know you are part of the process and you are going to have frequent communication and follow-up with your contract representative - that you're not just going to disappear.
3. Remember, clients expect you to be involved. If you send in an employee and the client never sees you again, and things don't go well, it's not good, says Bell.
4. Refer to the person as part of your team. Make it clear that you are setting the program up, but "another one of my team" will be taking care of you, she suggests.
5. Fully inform your contract employees so they can pass on information to the client. Don't think of this as insider information, but as information that will let your contract employee do a good job for you and your client.

Source -- //smallbusiness411.org/cgi-bin/library/jump.cgi?ID=12858

Secret Ingredients of a Great Business

by Entrepreneurship Expert Roger Pierce, BizLaunch.ca, February 2007

Many new and aspiring entrepreneurs want to know, "Will my idea work?" It's a difficult question that no expert can answer. Some great business ideas soar, while others crash and burn.

The secret lies in knowing what makes a particular business idea viable. It's not one magical ingredient that separates success from failure, but several.

It doesn't matter whether you've discovered an untapped market, built an invention or just want to improve on an existing business concept. Before you invest money and energy into a new venture, make sure it contains some of these ingredients of success:

• Does something better, faster or differently. The saying is so true: It's not what your business does, but how it does it. You don't have to re-invent the wheel - in fact, you're better off by simply improving on the way another business is already doing things than trying to launch a completely original concept.

  Here are some examples.

  • Doing things differently. Dell Inc. didn't invent the computer. Instead, Michael Dell decided to sell computers directly to the public rather than through retailers. By doing so, Dell claims to be able to offer its clients truly customized computers at lower prices.

  • Doing things better. Quizno's is not the first submarine sandwich restaurant on the block. They saw a well established and growing market for subs but wanted to develop a unique product twist in order to attract customers away from the competition - hence the marketing slogan, "Toasted Tastes Better."

  • Doing things faster. Legendary pizza company Pizza Pizza decided delivery speed was just as important as taste, so it positioned its brand on a 'faster' premise by promising customers their pizza order will arrive in "30 minutes or it's free."

• Low start-up costs. Many great business ideas can be started with very little money.
  • Don't fantasize about investors giving you millions of dollars to launch your ingenious new business idea?investors buy into performance and profits, not airy promises.

  • While the sky should be the limit for the success of your new business, you can launch a model that's dirt-cheap to get off the ground. That often means a service-based business that can be operated by you alone or with one person at first. Or, consider a sales model that allows you to sell to customers before you order products from the manufacturer. Remember, the most expensive types of business to launch are manufacturing and retail because they require considerable upfront investment in infrastructure and people. Inventions, too, can be quite costly to get to market because you must obtain patents, build prototypes, hire a manufacturer and secure distribution channels to get your new product out into the world - all before you make a dollar.

• Saves people time or money. Your business product or service must offer some clear benefit, otherwise people won't buy it. A great business idea makes people's lives a little easier, simpler or more affordable. Sam Walton built his Wal-Mart empire by helping middle and lower income people to improve their standard of living by making brand-name products more affordable. Jiffy Lube offers to change your car's engine oil in just a few minutes, saving amateur mechanics hours of frustration. By making online shopping so easy, Amazon.ca helps busy consumers to get the books they want delivered to their doorstep.

• Rides a growing trend. Fads come and go within six months while a trend will last for years. Don't be tempted to go for quick bucks by chasing a short-term fad?you'll need quick feet and deep pockets to make any money. Instead, give your new business longevity by making sure your idea is attached to a long-term trend.

  A trend is defined as a pattern of buying behaviour that will last for years. For example, online shopping, home healthcare and adventure travel are well established trends that show no signs of slowing down. Do your homework, read popular marketing books, talk to experts to ensure that your proposed business idea is attached to a trend that will be around for years to come.

• Market research. Your idea must be thoroughly tested to confirm your assumptions. Market research simply involves doing your homework to ask your potential customers if they will buy your proposed product or service?before you launch it. Without research, you could spend all of your money and time launching your business only to find out no one wants what you're selling.
  • Market research typically includes learning everything you can about your industry, including potential customers, your direct and indirect competition, and government regulations that may affect your business potential. It includes taking a hard look at your proposed business and its product or service to assess marketplace strengths and weaknesses.

• Combines your passion with business opportunity. A great idea combines what you love to do with delivering a product or service that people already want or need.

How do you unearth your true passion? Start by looking within to assess your interests, skills and hobbies. Pay attention to how you spend your free time. Read between the lines on your resume to identify soft skills, such as helping people to resolve conflicts, working with numbers or writing reports. You'll eventually lose interest if you go into a business just because it could make a lot of money. Make sure your venture allows you to apply your passion every day while delivering a product or service that's in demand.

Raising Cash for Your Business

by Entrepreneurship Expert Roger Pierce, BizLaunch.ca, June 2007

There are two things entrepreneurs often want more of: time and money. And while you can't increase the number of hours in a day, there are many strategies you can embrace to improve your cash flow. Whether you need a few hundred dollars or much more, here are some options to consider for managing and raising cash.

1. Reduce financial stress
Before deciding to raise new capital, take a look at your business expenses. By monitoring expenses carefully, questioning fixed costs, controlling variable costs, timing your payables and choosing alternative methods of payment, you can reduce the financial stress on your company. The objective is not to compromise quality or service but to better manage your money. Consider these techniques:

• Negotiate with suppliers to stretch bill payments to 90 or 120 days
• Use a credit card for payables to delay cash outflows
• Defer the full cost of equipment by considering leasing
• Join a barter network or exchange services within your own network
• Take your receivables to a broker

2. Invest in yourself
Regardless of how careful you are with expenses, additional funds may still be required for your new or growing business. The idea of working with "other people's money" may sound good, but investors and lenders want to see some of your "skin in the game." It's important to personally invest something in your business. Banks and outside investors will take you more seriously if you prove that you have invested in yourself. Make sure you consult your own financial advisor to determine how much you can afford to invest without overextending your personal resources.

Your personal investment can come in the form of cash, "sweat equity," or assets you can invest in the business, such as computer equipment or a vehicle. Your personal investment may also include outside funds from:

• Full-time employment income
• Part-time employment
• A business partner

3. Money from friends and family
Called "love capital," money from people close to you is often the easiest to secure. Loved ones already know your strengths, commitment and will be more likely to believe in you and your business vision. It is important to repay their kindness and support by handling their investment with respect. Write up a simple agreement of understanding outlining when the money will be repaid and whether or not interest is expected. Avoid awkward moments at future social functions by agreeing when not to discuss the loan or your business affairs.

Love capital:

• Is often easier to secure
• Can offer more flexible repayment terms
• Can complicate friendships and family relations
• May put people you love at risk through your business activities

4. Debt financing
Financial institutions are a common source of financing for your small business, but it may be difficult without an extensive financial history. It is important to supply them with all the information they need to make a decision. A professional business plan with three years of projected financial statements that support your ability to repay the loan is essential. Before you approach the financial institution, check your credit rating with a credit bureau and clear up any inaccurate or out-of-date information. Be prepared to offer collateral as security against the loan.

Types of loans offered at financial institutions include:

• Long-term loans secured by fixed assets such as property or equipment
• Working capital loans for operating costs such as marketing expenses and salaries
• Specialty loans (e.g. import/export, expansion, consolidation or management buy-out)

To apply for a loan at a financial institution:

• Develop a confident business plan that demonstrates your experience, anticipates why the business will succeed, and contains forecasts that make sense
• Be prepared to show how much you are personally investing and how much you have raised from other sources
• Document exactly how much capital you need and what you need it for — don't suggest a range
• Know what you plan to do if they only offer you part of the money you need
• If a business loan for all your requirements is not available, be prepared to consider other financial products such as lines of credit, credit cards and overdraft accounts
• Always be professional, calm, respectful and confident
• Don't expect a quick decision, as financial institutions must follow internal processes including credit checks
• Always negotiate loan terms
• If one financial institution turns you down, you can try another

5. Secure advance sales
Securing advance sales is an option for businesses selling customized products or unique services. Get your business off the ground by making a sale and asking for a retainer or deposit up front.

• Invoice early and consider offering discounts (such as 2/10, net 30: 2% discount if paid within 10 days; or pay the full amount within 30 days.)
• Negotiate an up-front commitment and payment during the sales process
• Take your sales contract to your financial institution to demonstrate the viability of your business

6. Consider an outside investor or partner
Outside investors, or equity financing, means selling shares in your company. You must be provincially or federally incorporated to issue shares. If you decide to go this route, try to retain majority control and be sure to clearly define the role of any investor. You may prefer a "silent partner" who has the capital but doesn't want any day-to-day involvement in your business. Alternatively, you may prefer an investor who is prepared to contribute their expertise as well as capital.

Before talking to potential investors:

• Decide how much of the company you are willing to sell
• Determine whether you want silent or active investors. Venture capitalists typically want a say in the running of the business and "angel" investors are silent
• Hire a business lawyer to review investment options and agreements
• Define how your investors will be paid (share dividends, percentage of profits, salary, retainer, etc.)

Many new small businesses fail because of insufficient cash flow. Sales and revenues are often farther away than they seem. Expenses are often closer and greater than expected. Therefore, it's extremely important to plan carefully. Consider these suggestions and seek out other advice from experienced business owners to help take the pressure off your cash flow so that your business can prosper.
Source - //smallbusiness411.org/cgi-bin/library/jump.cgi?ID=12858

Under One Roof: Running a Home-Based Business

by Entrepreneurship Expert Roger Pierce, BizLaunch.ca, October 2007

Setting up shop in a spare bedroom, basement or garage is how most small businesses get their start. Working from home is an appealing idea to new entrepreneurs who want to save money, eliminate the commute or be accessible to family. Others choose to work from home to achieve their ideal work-life balance.

Over half of all small businesses in North America operate from home. Proving size really doesn't matter, many home-based companies generate millions of dollars in revenue. Some employ people who actually work in the home office. Others simply house the owner/operator.

Whether you choose to run your business from home for the short or long term, it's important to get the balance right between your personal and professional life, otherwise, the benefits of working from home could turn into huge negatives that impact your small business growth.

Consider these suggestions to set up and run an effective home-based operation:

• Investigate local laws. With more home businesses opening up, some municipal governments have passed bylaws restricting the type of enterprise you can operate. Concerns can include attracting commercial traffic to residential neighbourhoods, manufacturing a product, or pitching a business sign on your lawn. Check with City Hall to ensure your home office complies with any such requirements.

• Physically separate work from home. It's tough for "Homepreneurs" to mentally leave the office when it's just down the hall. That's why it may be important to establish some physical distance between your business and living spaces.

  Consider building a wall, commandeering a spare bedroom, clearing out the garage, building an addition, hanging a curtain, or otherwise distinguishing your work from your personal space as best you can.

• Turn it on and off. An entrepreneur may physically leave their workspace, but it's more difficult to stop thinking about their business. In fact, thinking too much about the business after hours can lead to mental burnout and exhaustion.

  If you're working and living under one roof, you may want to explore some triggers to help you "get into business mode" each day. Some Homepreneurs go to their neighbourhood coffee shop at 8 a.m., then return home to start their workday. Others put on a tie or jacket to mentally shift into work mode. The same routines in reverse can work well at the end of your business day.

• Plan for paper. Space can be an issue for many home-based businesses. Without room for those bulky filing cabinets, you'll want to create a storage system that works for your particular set up. Forget the idea of a "paperless" office - most small business owners generate mounds of paper. Without the proper storage provisions, those files quickly stack up on the kitchen table, spare bed or staircase.

  Consider hiring the services of a professional organizer to help you design an efficient workspace. There may be ways you can eliminate unnecessary paper build-up. Equip your home office with sufficient bookshelves, filing cabinets, and boxes to house the stuff you must keep.

• Set some hours. If you want to work from 10 to 5, make it your policy and stick to it. During those hours, household tasks such as mowing the lawn, doing the laundry, or cleaning are strictly forbidden. Otherwise, you'll be stealing time away from your business and it won't develop as quickly as you want.

• Set some rules. Similar to your rule about office hours, you need to set some rules with visitors, children, and spouse.

  Well-meaning friends and family are more likely to think it's alright to drop by unannounced because you're working from home. Consider communicating your office hours and rules to loved ones, asking them to support your need to work undistracted in your business.

  Be sure to limit other distractions such as watching television, lengthy lunch hours or personal phone calls during your work day.

• Outsource. Successful small business owners don't try to do it all themselves. Look for non-essential and routine tasks you can assign to suppliers, contractors, or part-time help working from outside locations.

  Some of the more common outsourced functions include bookkeeping, filing, lead generation, direct mail campaigns, database management, graphic design, and website management. You may even elect to outsource personal errands such as walking the dog or cleaning the house. Worried about the cost of outsourcing? Think like a CEO and commit to spending your time developing business relationships, planning, promoting, selling, and leading your team. Offload any task that distracts you from those responsibilities.

• Get legal counsel. Depending on the nature of your business, you may want to obtain some legal advice if you're operating from your home. For instance, a lawyer may recommend setting up a corporation and obtaining a P.O. box to help separate your business and domestic operations. If you receive clients or deliveries at your home office, you may want to consider purchasing commercial insurance to protect you from "slip and fall" lawsuits. Or, legal agreements may be advisable to distinguish your business assets from marital ones - a blurry line when everything is under one roof.

• Find a second space. No matter how much you love running a home-based business, you'll want to get out of the house from time to time. A second space is somewhere you can go to get away from your business, perhaps hold meetings or to do some big-picture thinking. Consider joining a fitness club, a business centre (to access boardrooms and conference rooms), or just camp out in your favourite coffee shop.

Some of the world's largest corporations started as home-based operations. Other wealthy entrepreneurs plan to keep their ventures home-based, even though they can well afford a swanky downtown office. Whether you intend to work from home temporarily or permanently, try to set some ground rules to keep you - and your family - happy under one roof.

Source - //smallbusiness411.org/cgi-bin/library/jump.cgi?ID=12858

A Stress-Free Small Business Owner

by Entrepreneurship Expert Roger Pierce, BizLaunch.ca, October 2007

Owner burnout is a common cause of small business failure. With long hours, lots of stress and a seemingly endless to-do list, many small business owners risk mental and physical exhaustion.

As a business owner, you likely balance diverse responsibilities such as production, marketing, sales, bookkeeping, and running to the bank now and then. You likely feel the clock is constantly ticking away against you.

While those multiple tasks are important to your business, so are you. Try these suggestions to keep your most valuable business asset - you - operating in peak condition.

Know your priorities. It's so easy to fill up your small business day with a flurry of important tasks, phone calls, emails, and errands. These things that "must be done" can make you feel productive, but, in reality, they may be distractions preventing you from truly advancing your business.

Best-selling author Stephen Covey got it right in his famous book, The 7 Habits of Highly Effective People, when he devised a system to keep achievers achieving. Covey suggests identifying your biggest priorities ("rocks") and simply scheduling them in first. Those "rocks" may include things like attending your son's soccer matches, drafting that proposal for a prospective account, or training a staff member to manage your invoicing system. By putting the "rocks" in place first, Covey says all of those smaller, less important tasks (he calls them "pebbles" and "sand") receive appropriate priority weighting.

Take out that Business Plan to identify what's truly important for you to accomplish during the next three months. Break down those projects into weekly "rocks" and schedule them into your week. The smaller tasks will then fit in where they should.

Separate personal time. North American culture can encourage people to become "workaholics," as if the amount of hours we work is some sort of badge of honour.

Bringing work home every night and every weekend is a sure path to burnout. It can also lead to isolation from your friends, your family ("Mommy's working now"), and your spouse. Much like sleep, entrepreneurs often view their personal time as some reserve fund they can draw upon when too much work piles up.

Setting firm working hours will force you to prioritize your time, delegate nonessential tasks, and help you to keep your workload reasonable.

Just say 'no'. To remain true to your biggest priorities (those "rocks") and your personal time, it's important to practice saying the word "no." Unfortunately, many polite Canadians don't say that word often enough. Small business owners love to get involved in exciting new projects, be it a local fundraiser, coaching Little League or even starting a second business. Such commitments can distract you from your true business mission. Spreading yourself too thin often means you're not doing your main job well.

Revisit your priorities and learn to say "no" to people requesting your time. Turn down additional projects, distracting initiatives, or time-consuming requests that do not advance your business mission.

Delegate. A true entrepreneur simply orchestrates the work of others-managing and leading the efforts of their team.

The expression "think like a CEO" involves attaching a big dollar figure to your time. If you were the head of a large corporation, you'd be expected to spend your time developing new markets, creating strategies, implementing cost-saving measures, and leading your people. Such activities would warrant your large CEO salary.

The same thinking applies to your small business. Ask, "What do I do now that I could pay someone else to do for less?" To identify such tasks, try writing or re-writing your own job description as the head of your growing company. Then, delegate routine functions such as cold calling, bookkeeping, or paperwork if you decide your time is best spent elsewhere.

Sharpen the saw. There's the analogy of Bob the lumberjack who worked all day trying to saw through a large tree trunk. Noticing Bob's lack of progress, another lumberjack suggested the work might be easier if Bob stopped for awhile to sharpen his saw. Bob grunted and replied, "I don't have time to stop and sharpen my saw?I'm too busy trying to cut down this tree." The moral of the story: combine long working hours with a seemingly endless to-do list and you've got a recipe for entrepreneur burnout.

Many entrepreneurs get caught up in their own self-importance, talking themselves out of any significant time away from the business. Believe it or not, your business will survive a week or more without you. It will certainly survive for a few hours while you "sharpen your saw" by going to the gym or sitting down to read a book.

At the beginning of each year, schedule - in stone - your vacation time over the next 12 months. Space it out so you've got a few breaks scheduled every few months. It doesn't have to be a three-week European vacation - consider a few self-made long weekends or a week relaxing at home.

As your break time approaches, don't find excuses to put it off using the "something-came-up" excuse. Make a formal commitment to your planned retreat by issuing iron-clad promises to your family or by buying non-refundable airline tickets.

The amount of personal time an entrepreneur enjoys away from his or her business is perhaps the truest measure of success. If you're out playing golf three times a week or taking a two-month vacation with your family, it's a good sign that you've created a business that runs well without you. Make it your long-term goal to actually work fewer hours each year. You'll be amazed just how much you can get done when being away from your enterprise becomes your top priority.

Source - //smallbusiness411.org/cgi-bin/library/jump.cgi?ID=12858

Those who really wanna get success in Business

Here we are going share some important information for those who are really want to reach some thing in their life (particularly in their Business Activities) .. Here some points to follow those who would like to start Business and want to get succeed in business . And this would help the existing Entrepreneur’s also those who would like to Express their selves more .. Here I give you simple example that would help you get understand these thing. I am a business man . From my experience , the 1st most thing needed to every people is self – confident .. I am saying it generally but for the new or Existing entrepreneur self confident is very important. Self confident along gives all thing to our life . Particularly for Enterprise owner should have this attitude. If you are having confident on your self you are the king for this world. That confident gives you lot of ideas over this market. Here I list out some attitude when you are having self confident . Those who wanna start a new business . You should throw out your fear. FEAR IS THE ONLY THING WE SHOULD FEAR FOR.

And of course when you are having self confident , you can come out from the FEAR. SELF MOTIVATION IS THE BEST MOTIVATION. You should be a motivator for you. Then only you can achieve any kind of thing. And when you are having self confident , you will be self motivator too. PLANNING is the very important thing 1 should think for when start a business. Planning in the sense , What kind of Business we are going to Handle ? Which Segment of people we are going to target ? What is the potential Market for that particular Business ? So these Analysis comes under PLANNING a Business . If you are a self confident person then there will be no problem for PLANNING too. Plan it and make a Market survey for that Particular process. That analysis gives you lot of suggestions about the product / service which you are going to start with.