Business Power Blog

I Need A Logo!!!!

2008-06-26T19:38:00.000-07:00

Marketing gurus tell us that we need to become a brand, and that the first step down that road is to develop a logo. Then we will use it in all our communications with the public, be it an add, a website, business cards, stationery, a blog, etc.

But developing a logo may mean hiring a graphic designer, who will charge hundreds of dollars or more. Don't get me wrong, I believe that the talents of a good graphic designer are well worth the hundreds of dollars that he or she will charge, and they deserve every penny. The problem is that many new businesses are counting pennies, and waiting to have the funds to hire a graphic designer may mean delaying the startup date.

Good news, I just came across a website that may be the answer to a new business's prayers. The address is LogoMaker.com. This site allows you to design your own logo for free, though you need to buy the logo if you want to use it. You can design several logos, save them, and share them with friends and family. Your friends can vote on which one they like best,and you can make your decision based on their opinion, or ignore them and go with your own preference. And even though you must pay for your logo, the price is only $49.00. I think that this a great solution for a new business long on dreams but short on cash.

Think Green, Green Business

2008-06-05T16:48:00.000-07:00

Green is not just for hippies any more. Even the Bush administration has finally released a four year-old report telling us about global warming. Al Gore has won an Oscar and a Nobel Price. We are all beginning to really internalize these ideas that just a few years ago sounded a bit odd. Hey even neimanmarcus.com is getting into it. It is selling shopping sacks made out of colorful fabrics, for those of us who might want to be ecologically aware and fashionable at the same time.

This is more than a fad, it really is a change in the way we see the world and our place in it, particularly with the sticker shock that we are getting at the gas pump. So what does it mean for our business? It means that we must find a way to participate in this great revolution. We can do it in several ways. One is to become more efficient about how we operate so that we reduce the amount of pollution that we produce. This will save us money, and will gain much goodwill with our clients and the public. Another is to follow Neiman Marcus’s example, and look for products or services that help others reduce their environmental impact. It will require that we change our way of doing things, but it also offers many opportunities for profit and creativity.

Apple Polish

2008-02-24T11:22:00.000-08:00

Recently I came across an article in the New York Times about the Apple retail store. When Apple opened its stores a few years ago many analysts thought that Steve Jobs had lost his mind. These analysts did not give the retailing experiment much hope, and they thought that the company would loose its shirt (if companies had shirts). These were they years when the Company was not the golden child that it has become.

The article goes on to talk about the Apple Store experience. Yes, the products are great, but it is the employees that make the store the place to be. It talks about a workforce that believes that the customer is king. The public is treated as if it matters. Members of the pubic sometimes go in to use the computers for free. Some just check their e-mail, others even write books on the store’s computers. Imagine that! Not chasing someone out the door because they are not actually buying anything! The article talks about the store as being a gathering place.

As I read the article I kept thinking about the series of articles written by Paul Lavesque on motivating employees (Entrepreneur.com). He believes that motivated employees feel they are furthering a cause, and that cause most definitely is not making the owner rich. The motivated employee will work very hard if he or she believes in what they are doing. In the Apple Store we see what a motivated workforce looks like, and the cause that they are furthering.

Being an Apple fan myself, I can understand why people feel the way they do. The Apple products and the retail store have a following that borders on religion, and both customers and employees are on a mission to spread the word. We love the products, they are chic and elegant, simple to use and sophisticated at the same time. The customer base is so committed that they will put in an extraordinary amount of work in order so further the “cause”.

One example is Randy Singer, the MacAttorney. He writes a newsletter for attorneys who use Mac computers. He will review products and advise on technical issues for the love of the product. A while back he asked for donations to defray some of the costs, but you still get the newsletter whether you have donated or not.

The New York Times article tells the story of a woman who wrote a book in the Manhattan store. It took her months to finish her 300-page manuscript. After she finished it, she was invited to give a reading of her book at the store. She still hasn’t bought an Apple computer!

There is no question that you feel a sense of being part of something special when you enter an Apple store. True, you can buy Apple products in other stores, but you cannot get Apple employees anywhere else.

Free Trade/Fair Trade

2008-01-30T16:53:00.000-08:00

The world is becoming smaller every day. I see it in my blog readership. Though most of my readers come from the United States, I have readers from different parts of the world. Each day people from Mexico, Turkey, France, Malaysia, Australia, and many other countries come to read about being an entrepreneur. They learn about doing business in the United States, and I learn about them.

Whether we like it or not, trade is here to stay. We hear about products or services in other countries, and we want to duplicate what others are doing. And if we find that it is impossible to duplicate, we seek ways to adapt those economic activities so that they will work well in our communities.

But when we deal with people across borders, especially if our contacts are through the Internet, it is easy to be anonymous, at least that is what we think. In fact we are not anonymous at all, and if we hope to have lasting business relationships, we must not be so. We need to forge strong personal contacts in order to succeed. But with those personal contacts come responsibilities, and because our reputation is on the line, we must act ethically in all our dealings

One ethical concept that has been around for a while, but has gathered steam in the last few years is the Fair Trade movement. There have been several scandals about companies and celebrities who are importing products that are manufactured under horrible conditions. The reputations of companies such as Nike, and celebrities such as Kathie Lee Gifford, have suffered tremendously as the public becomes aware of how they are making their money. Others, such as Starbucks, have improved their reputations greatly, and made a lot of money by partnering with Fair Trade programs. Now the coffee giant is perceived as a progressive, fair, and very cool company.

The Fair trade system wants to create awareness, and to improve the lives of workers around the world. The goal is to educate consumers so that they will demand products manufactured by laborers who earn a fair wage within the economic context of their country. The idea is that by encouraging long-term business relationships, the workers have a safe and healthy workplace in which to earn their living; and it will be in a situation that respects their cultural identity.

Many people around the world believe that trade can be detrimental to individuals, but it need not be so. Stopping international trade is like trying to tame the sea, just about impossible. Better to trade within an ethical framework that benefits many rather than just a few. If you are considering, or are now involved in international trade, I believe there is a great business opportunity in pursuing the Fair Trade way, just ask Starbucks!

Lets Continue the Dream

2008-01-21T12:05:00.000-08:00

On this Martin Luther King’s day let us not forget that it is up to all of us to keep the dream alive. As I read the text and watch the video the memories come flooding back. No, I was not there on that August day almost forty-five years ago, I was getting ready to start my senior year in high school that summer day. But thankfully we lived in an age where you could watch the news on television, and there is where I saw this monumental event. It is difficult for us all these many years later to understand the impact that this man had on the nation’s psyche. All I can say is that it crystallized those feelings he expressed in so many of us at that time.

The memories are now fading, and Dr. Martin Luther King Jr. has become almost a saint. But lets not forget that he was not a one-dimensional hero, but a man, all to human, and yet so capable of being the best that a person can be.
And as I watch the video (that you can catch on YouTube) I am reminded that he was only thirty-three years old on that day! It is interesting to hear the words he used; words such as Negro; so old fashioned; so quaint. It seems like such a long time ago. And yet, his words and ideas are absolutely up-to-date because every day we become a more diverse society, often brought together, but also torn apart by this new technology that is the Internet. So we need to become more aware and more understanding of one another because the world is very small now. Not just the person from Montana and the one from Alabama, but the person from Mexico and the one from Albania will be brought together like never before. Let us learn from each other so that we can become richer.

Dr. Martin Luther King Jr. is a hero because, among his many qualities, he pushed on even when he was afraid or discouraged. So what does this have to do with business? Well, as business owners we are in a position to decide who is hired and who is fired. We say who will get an opportunity to advance, and who doesn’t. Let us not cheat others and ourselves by judging on the color of the skin, or religion, or gender. And let us remember his example when we feel afraid and discouraged.

Text from the “I Have a Dream” Speech
Dr. Martin Luther King Jr.
August 28, 1963
Washington, D.C.

I am happy to join with you today in what will go down in history as the greatest demonstration for freedom in the history of our nation.

Five score years ago, a great American, in whose symbolic shadow we stand today, signed the Emancipation Proclamation. This momentous decree came as a great beacon light of hope to millions of Negro slaves who had been seared in the flames of withering injustice. It came as a joyous daybreak to end the long night of their captivity.

But one hundred years later, the Negro still is not free. One hundred years later, the life of the Negro is still sadly crippled by the manacles of segregation and the chains of discrimination. One hundred years later, the Negro lives on a lonely island of poverty in the midst of a vast ocean of material prosperity. One hundred years later, the Negro is still languishing in the corners of American society and finds himself an exile in his own land. So we have come here today to dramatize a shameful condition.

In a sense we have come to our nation's capital to cash a check. When the architects of our republic wrote the magnificent words of the Constitution and the Declaration of Independence, they were signing a promissory note to which every American was to fall heir. This note was a promise that all men, yes, black men as well as white men, would be guaranteed the unalienable rights of life, liberty, and the pursuit of happiness.

It is obvious today that America has defaulted on this promissory note insofar as her citizens of color are concerned. Instead of honoring this sacred obligation, America has given the Negro people a bad check, a check which has come back marked "insufficient funds." But we refuse to believe that the bank of justice is bankrupt. We refuse to believe that there are insufficient funds in the great vaults of opportunity of this nation. So we have come to cash this check — a check that will give us upon demand the riches of freedom and the security of justice. We have also come to this hallowed spot to remind America of the fierce urgency of now. This is no time to engage in the luxury of cooling off or to take the tranquilizing drug of gradualism. Now is the time to make real the promises of democracy. Now is the time to rise from the dark and desolate valley of segregation to the sunlit path of racial justice. Now is the time to lift our nation from the quick sands of racial injustice to the solid rock of brotherhood. Now is the time to make justice a reality for all of God's children.

It would be fatal for the nation to overlook the urgency of the moment. This sweltering summer of the Negro's legitimate discontent will not pass until there is an invigorating autumn of freedom and equality. Nineteen sixty-three is not an end, but a beginning. Those who hope that the Negro needed to blow off steam and will now be content will have a rude awakening if the nation returns to business as usual. There will be neither rest nor tranquility in America until the Negro is granted his citizenship rights. The whirlwinds of revolt will continue to shake the foundations of our nation until the bright day of justice emerges.

But there is something that I must say to my people who stand on the warm threshold which leads into the palace of justice. In the process of gaining our rightful place we must not be guilty of wrongful deeds. Let us not seek to satisfy our thirst for freedom by drinking from the cup of bitterness and hatred.

We must forever conduct our struggle on the high plane of dignity and discipline. We must not allow our creative protest to degenerate into physical violence. Again and again we must rise to the majestic heights of meeting physical force with soul force. The marvelous new militancy which has engulfed the Negro community must not lead us to a distrust of all white people, for many of our white brothers, as evidenced by their presence here today, have come to realize that their destiny is tied up with our destiny. They have come to realize that their freedom is inextricably bound to our freedom. We cannot walk alone.

As we walk, we must make the pledge that we shall always march ahead. We cannot turn back. There are those who are asking the devotees of civil rights, "When will you be satisfied?" We can never be satisfied as long as the Negro is the victim of the unspeakable horrors of police brutality. We can never be satisfied, as long as our bodies, heavy with the fatigue of travel, cannot gain lodging in the motels of the highways and the hotels of the cities. We cannot be satisfied as long as the Negro's basic mobility is from a smaller ghetto to a larger one. We can never be satisfied as long as our children are stripped of their selfhood and robbed of their dignity by signs stating "For Whites Only". We cannot be satisfied as long as a Negro in Mississippi cannot vote and a Negro in New York believes he has nothing for which to vote. No, no, we are not satisfied, and we will not be satisfied until justice rolls down like waters and righteousness like a mighty stream.

I am not unmindful that some of you have come here out of great trials and tribulations. Some of you have come fresh from narrow jail cells. Some of you have come from areas where your quest for freedom left you battered by the storms of persecution and staggered by the winds of police brutality. You have been the veterans of creative suffering. Continue to work with the faith that unearned suffering is redemptive.

Go back to Mississippi, go back to Alabama, go back to South Carolina, go back to Georgia, go back to Louisiana, go back to the slums and ghettos of our northern cities, knowing that somehow this situation can and will be changed. Let us not wallow in the valley of despair.

I say to you today, my friends, so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream.

I have a dream that one day this nation will rise up and live out the true meaning of its creed: "We hold these truths to be self-evident: that all men are created equal."

I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood.

I have a dream that one day even the state of Mississippi, a state sweltering with the heat of injustice, sweltering with the heat of oppression, will be transformed into an oasis of freedom and justice.

I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.

I have a dream today.

I have a dream that one day, down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of interposition and nullification; one day right there in Alabama, little black boys and black girls will be able to join hands with little white boys and white girls as sisters and brothers.

I have a dream today.

I have a dream that one day every valley shall be exalted, every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made straight, and the glory of the Lord shall be revealed, and all flesh shall see it together.

This is our hope. This is the faith that I go back to the South with. With this faith we will be able to hew out of the mountain of despair a stone of hope. With this faith we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood. With this faith we will be able to work together, to pray together, to struggle together, to go to jail together, to stand up for freedom together, knowing that we will be free one day.

This will be the day when all of God's children will be able to sing with a new meaning, "My country, 'tis of thee, sweet land of liberty, of thee I sing. Land where my fathers died, land of the pilgrim's pride, from every mountainside, let freedom ring."

And if America is to be a great nation this must become true. So let freedom ring from the prodigious hilltops of New Hampshire. Let freedom ring from the mighty mountains of New York. Let freedom ring from the heightening Alleghenies of Pennsylvania!

Let freedom ring from the snowcapped Rockies of Colorado!

Let freedom ring from the curvaceous slopes of California!

But not only that; let freedom ring from Stone Mountain of Georgia!

Let freedom ring from Lookout Mountain of Tennessee!

Let freedom ring from every hill and molehill of Mississippi. From every mountainside, let freedom ring.

And when this happens, when we allow freedom to ring, when we let it ring from every village and every hamlet, from every state and every city, we will be able to speed up that day when all of God's children, black men and white men, Jews and Gentiles, Protestants and Catholics, will be able to join hands and sing in the words of the old Negro spiritual, "Free at last! free at last! thank God Almighty, we are free at last!"

The Virtues of the Business Plan

2008-01-15T13:52:00.000-08:00

After telling you abut the wonderful virtues of a business plan, I find myself preparing one for a business that my son and I are contemplating together.

Though I find a business plan to be extremely useful, it doesn’t mean that I actually enjoy preparing one, frankly my eyes a glazing over just thinking about it. But the enterprise that we are thinking about is relatively unfamiliar to us, so it is doubly important that we know what we are getting ourselves into.

My main focus at this point is the market analysis, because this part of the plan will tell us a lot about the future success of our business. I believe that studying the competition will reveal much about how to market, how to price our product, and most importantly, how to differentiate ourselves from our future competitors.

Another area in which I am seeking answers is in the starting capital that we will need, and how fast we think we can recuperate our initial investment.

The way I see it is that it is not a waste of time if after the completion of the plan we decide that this business is not for us. Better to spend several weeks preparing the plan, and studying it, than to spend months and a ton of money only to get to the same conclusion.

So I am practicing what I preach, and I am dutifully working on the business plan. This exercise will surely take the pink lenses off our eyes, but will also make us more confident about our final decision.

If you are thinking about starting a business, I advise you to work on a business plan. You will find plenty of help in the Small Business Administration website at sba.gov

The Perils of Reducing Service to Save the Business

2008-01-10T11:59:00.000-08:00

Two items on today’s paper got my attention. One was an article about the airline industry. It seems that if you did not have enough of airline delays, lost luggage, oversold flights and plain bad customer service; well, you are in luck. The airline industry intends to fix all this problems by…..giving us more, much more, of the same, and the plan is to charge more for the lousy service! The article by Jeff Bailey of the New York Times News Service states that while the 2007 flying woes might indicate that there is a need for more planes to ease the overcrowding, in fact some airlines are planning to cut flights in the hope of raising prices.

Another example of cutting service, in this case features, in order to improve your business is the newspaper itself, as the San Diego Union-Tribune has been steadily cutting sections and features for some time now.

Usually the first thing that I read in the morning is the editorial section, which in most days consists of three pages. Well, to my surprise today it only had two pages of editorials and letters to the editor. This in the middle of a dramatic election! Of course, this is not new for the San Diego Union-Tribune. For months, actually maybe a couple of years, it has been tinkering with its content in order to make the newspaper more profitable. But the way they have been going about it is by insulting the readers’ intelligence. One trick that they have used several times is to combine, let say, the Food section and the Living section by telling us how much larger the Food section is now going to be. But you find that this particular section is now half of what it used to be, while the Living section is now also half of what it used to be. Some improvement!

Businesses have to find creative ways in order to survive. Newspapers, in particular, are going through a rough time. So many of us rely on the Internet for news, and this makes it very hard for the print media. By the time the newspaper arrives at your door 90% of its content is “old news”. What is a newspaper to do? It certainly makes sense to find the right mix of stories that will interest the reading public, and experimenting seems a logical way to do it. As to the airline industry, I do not claim to understand their thinking process. Abusing your customers doesn’t seem to be a great way attracting more; but heck, what do I know?

The problem here is that with experimentation comes the risk of losing more and more customers, until the business finally becomes irrelevant. Therefore, it is very important that the customer is treated with respect while the company finds a solution.

The newspapers have a right to fear irrelevance, as there are now so many other ways that a person can acquire information. As to the airline industry, clearly they do not fear irrelevance, so they mistreat the flying public with abandon

The lesson here is to not lose sight of the fact that the customer is an intelligent and rational actor, If we want our business to survive, we need to treat him as such, otherwise he will find a solution to bad service by going elsewhere.

Some Days You Just Need a Sense of Humor!

2008-01-07T15:15:00.000-08:00

My husband, an avid flying hobbyist and pilot, came across a column on the AOPA (Aircraft Owners and Pilots Association) magazines, Flight Training. He shared it with me, and I had a good laugh.

Mike Collins wrote about the airport in Sioux City Iowa. As you know, every airport has an “identifier”, three letters that identify a particular airport; for example, Los Angeles airport has the identifier of LAX. Well, Sioux City Iowa has the airport identifier of SUX (pronounced “sucks”). It appears that the city and airport authorities were not too happy about this and they petitioned the FAA for a change. Being that the airport is called Sioux City Gateway the FAA answered with the alternate identifier of GAY.

The authorities decided to make the proverbial lemonade out of its lemon. With great sense of humor they have come up with a wonderful solution. They have developed a product line of t-shirts, caps, bumper stickers, etc. with the slogan “Fly SUX”.

I hope that if misfortune ever befalls my business, I will have the sense of humor, and enough wit, to come up with such a clever solution. Who ever said that running a business isn’t fun!

Blogging for Business and Pleasure

2008-01-06T12:53:00.000-08:00

You like to read blogs, but would you ever consider writing one? I had never thought about it until a couple of months ago and I find that I am enjoying the experience very much. I used to write a column in Spanish for a local newspaper. The topics and content were very similar to the ones presented here, but I was so busy with my law practice and other responsibilities that I decided to stop.

So what is the difference between writing a blog and writing a column? Why would I have more time to post on my blog? The most obvious reason is that with my blog I have total control of the content and length of each “column” or post. I also have control in publication, since I say when the post appears, as opposed to being moved around, depending on the needs of the newspaper owner. I also don’t have to worry about deadlines.

You may say that writing a column validates your worth as a writer because someone else has decided to accept you as a writer. But posting on your blog is no different, since your readers validate your worth as a writer by reading your posts. When you see your readership increase little by little, it is very satisfying.

But why would a business owner want to spend time starting a blog? There are many reasons why. Many businesses start one to increase their sales and name recognition. Others do it to communicate directly with their clients. They want to share their business philosophy and values, and they find that this is an excellent way to do it. I personally do it because I like to share information as so many have done so with me. Blogging gives me that opportunity.

There are several excellent books on this topic. I gave one to my daughter for Christmas. The name of the book is The IT Girls Guide to Blogging with Moxie by Joelle Reeder and Katherine Scoleri. I hope she will put it to good use. She is an excellent writer, funny and thoughtful. I am sure she can have a terrific Blog, if she ever catches a few minutes to write between feeding, diapering, and chasing after her 9 month-old twin daughters!

Setting Priorities

2008-01-04T14:43:00.000-08:00

Well, you followed my advice, you looked at your goals of last year, and you have identified the ones that fell by the wayside. You are interested in following up with a few, and adding some for this year. Now it is time to set priorities.

It is easy to get lost if we do not prioritize. When we have no focus we tend to dabble in one project and then get distracted by another that seems more interesting at a particular moment. But operating in this manner may take us down the same road that we took last year, with the similar results of having important goals still incomplete.

No one can tell you which goal is more important; you are the only one that can decide that. For one business owner it may be to grow the business by 20%, while for another it may be to stabilize the business by changing the product mix, and still another may want more flexibility. There are as many worthy goals as there are people in the planet, it is up to you to decide what you want your business to look like a year from today. But in order to see the desired changes, set your main concerns and don’t take your eyes.l; off them until you are satisfied.

New Year. New Directions?

2008-01-03T11:31:00.000-08:00

As we look in the mirror and pick the confetti off our hair, the realizations comes that it is time to get back to work. The New Year brings great hope but also great trepidation as we ask ourselves if we should be taking our business in a new direction. For these reasons it is an overwhelming period.

The end of the year is a crazy time. If you are in the retail business you are either very busy, or worried that you are not busy enough. If you are a professional, you find that most clients postpone big decisions until the beginning of the year, while a few are frantically pushing you as they take care of matters that have a yearly deadline. The period between Christmas and the New Year can be a little bit of a no-man’s-land.

The end of the holidays forces us to take a good look at or business and decide the direction for the future; it can be very scary. Where and how do we begin the rest of our lives? We ask ourselves a bit melodramatically. Well, the best approach is to take it one step at a time.

One good place to start is to pull out your plan or any notes you may have written last year. Take a look at your goals, and how many of them you actually completed. Those who did not get checked off your list, analyze why they did not get accomplished. Were they too ambitious? Did you lose interest in the project? If you believe that those goals (or at least some of them) are still worthwhile pursuing, think about how they can become more manageable. How can that ambitious goal be brought down to size a little bit so that it becomes a reality this year. And that objective in which you lost interest, how can you make it more interesting to yourself and to your clients?

I hope that these simple steps get you on the right frame of mind, and move you in that new direction that you are contemplating.

My best wishes for the New Year

On Your Marks, Get Set….For the Holiday Race

2007-12-21T12:30:00.001-08:00

It’s the season of the traditional Holiday Race, particularly for women business owners. Trying to keep one step ahead of, or at least even with, family responsibilities and running a business. Not that men don’t put in their share of holiday preparations combined with work responsibilities. But, at least in my family and social circles, it is the woman, or women, who have the lion’s share of Christmas planning and executing work. Most men don’t much care whether the Christmas tree is up (In my case, up and running, since my tree tried to run but fell on its face!) or whether grandma’s dressing tastes just the way you remember it.

For me Christmas time has become a crazy mélange of keeping up the Christmas traditions, and trying to help each and every panicky client that waited until the end of the year to dissolve a corporation, or some other crucial shore that could have been taken care of in August!

This year it is even crazier, since I am now the proud grandma of twin girls. My daughter and son-in-law have moved in with us while their house is being remodeled to accommodate the twins. It is hard to spend my time chopping onions when I could be sitting in my living room watching them eat Christmas ornaments! (Not the glass kind, and no lead, thank you very much!) And, as I told you a few days ago, for the first time in my life my Christmas tree fell and I had to re-do the whole thing.

But in spite of all the nuttiness, it is a joyous time. Maybe it is a trick that I am playing on myself, but just when I feel that I cannot do one more chore, I look all around and feel such pleasure and exhilaration at being alive and able to take on all the work that this wonderful season brings. So I wish all of you a very Merry Christmas, and a magical Noche Buena. As for me, back to chopping onions with one hand while I answer my cell phone with the other.

Motivating Employees

2007-12-18T19:53:00.000-08:00

I found an interesting series of articles written by Paul Lavesque, who has written a book with the title of Motivation.

In this series of articles, on Entrepreneur.com, he talks about how cynical many workers are, and he makes the point that most of us need to feel like part of something important in order to be motivated. He believes that making the owner of the business rich is not exactly the inspiration that drives most workers. And he stresses that people will work very hard for a cause, and businesses that emphasize the importance of satisfying the customer’s needs usually have very motivated employees.

I have previously written about treating people as individuals with particular needs that we can fulfill, rather than as dollar signs; and I loved that these articles speak to that aspect of business. Many businesses have tunnel vision that leads straight to the bottom line, without much regard for the customer. That is seldom a great motivator for employees.

There are countless books and seminars on how to upsell. We are told that we need to increase our sales by pushing additional products or services to the client once he appears at our door. If he comes in to buy a toaster, sell him an egg poacher. Sell him on the great American breakfast experience. Just sell him! That will be great for the business bottom line. But does the client even like poached eggs? Or is it one more appliance to clutter his kitchen?

As a sales person, would you feel very motivated when selling clients products they don’t need, and may not particularly want? Wouldn’t it be much more satisfying if you could find out how he plans to use that toaster, and then guide him to the best model for his needs? Even if it turned out to be less expensive!

How do you want the customer to see your business and your employees? Will he believe that he can come to you and your workers to have a problem solved? Or will he think twice before walking through you door ever again? When you enlist your employees in the cause of truly helping your clients, you are more likely to keep them happy, and to keep your customers happy as well.

Of People and Things

2007-12-15T21:40:00.000-08:00

Every year I look forward to putting up the Christmas tree. I open up boxes and boxes of ornaments, and I am always surprised to see some that I had forgotten about, a few make me smile, and others make me a little teary eyed. Every year I add to my collection, to me it is like adding to the joy of life. By now you can guess that I am rather sentimental about these ornaments. I always think about Christmas past, and people that I love, including those who are no longer with us.

Last weekend I spent two days decorating the tree. I had bought special ornaments to commemorate my twin granddaughters’ first Christmas. We had the traditional teasing, as my son-in-law chuckles at my extravagant tree. You see, he is a minimalist kind of guy with a mother-in-law who believes that there is no such thing as too many ornaments!

Well, Wednesday evening I came down the stairs and I had the shock of my life. I saw my beautiful tree on the floor! I am amazed that I did not hear the crash; but there it was, broken ornaments all over the carpet, and the carefully placed tinsel now tangled up with the light strings. Just at that moment my daughter and son-in-law walked through the door. They were mortified to think that one of their dogs might have knocked the tree down. We all knew that that was not the case, and that it was much more likely that I did not do a good job of securing the tree to its stand. But they were worried, and I was upset at the loss of my priced ornaments.

After a few minutes I came to my senses. I felt terrible that my sadness over the ornaments had made them feel bad. I tried to reassure them that as much as I like my “stuff”, that is all it is, stuff. The last thing that I want, especially at this time of the year, is to make my family feel uncomfortable or unwelcome in my home. The ornaments are things, beautiful and priced, but still only things. They make me think of people I love, but they do not substitute them. I reminded myself that things, beautiful as they may be, never are as important as people.

This is a key lesson. How often do we catch ourselves valuing objects more than people? Do we see our clients as dollar signs rather than individuals with needs? Do we treat our employees as if we owned their soul, rather than as the valuable colleagues that make our lives better? Fairness and considerate should be our most important principle. As business owners, as well as human beings, we must not forget that things can be replaced; people, not so easily.

And the good news is that I did not lose as many ornaments as I first thought, and that my most beloved ones, including the barrister ornament that I got the year I became a lawyer, survived the ordeal!

Fusion Marketing: What is It?

2007-12-10T16:42:00.000-08:00

Fusion Marketing sounds kind of esoteric, but it is nothing more than collaborating with another business in order to increase sales.

Ideally fusion marketing works best when you find another business that has the same customer base and similar target market. For example, a store that sells wheat grass juice, fruit smoothies, and other health related drinks can form a great marketing partnership with a vitamin and dietary supplement store. The two businesses have the same type of clientele, and their customers have very similar interests.

The following steps should lead you to an effective and successful plan:

Sept 1: Find a partner who has a similar client base but isn’t a direct competitor.

Step 2: Brainstorm together about the type of offer that you both want to make to your clients.

Step 3: Write a letter of agreement. This document can be simple, as long as you both agree about what you will each do, and what each will get.

Step 4: Execute. Write the offers (coupons, etc.), plan the way it will be disseminated, how you will communicate it to your own clients and to the general public.

Step 5: Combine each other’s mailing list and communicate to both groups.

Step 6: Keep the bargain. By this I mean, honor the coupons or offers that the other business has distributed, and be responsive to the other business’s clients.

Step 7: Evaluate. Follow up with your clients to see if this has been of benefit to them, as well as with your marketing partner to see if it is working well for that business.

Step 8: Continue to market to both sets of clients.

And there you are, that is fusion marketing, a simple but effective idea with an exotic name.

Tip of the Day: Don’t Waste Advertising Money

2007-12-05T15:50:00.000-08:00

On the same vein as previous posts, it is important to understand the purpose of an ad, and that is to sell sell sell. Advertising professionals sometimes are too focused on creating clever commercials. The purpose of an ad is to create a need, to persuade, and to inform so that prospect will want your product. An ad shouldn’t be just amusing and entertaining, its sole purpose should be to get the sale, if it charms the public while selling products, so much the better; but make sure that the ad creates a need, otherwise you will be wasting your money.

Getting Results Not Just Reactions

2007-12-04T15:11:00.000-08:00

Lets say that you have come up with a clever sales campaign. You try it out on your friends and relatives and they all love the story line. They think it is witty and darn right funny. They all congratulate you on your ingenuity.

You try it out on the public, and you get the same reaction. People send you emails telling you how amused they are. The whole town is using your catchy phrase. People call you to tell you how much they like the ads. You are feeling mighty proud of yourself about now. But what has it done to your business’s bottom line? If what you have gotten is reaction from the public, rather than results, then all you have accomplished is a boost to your ego, not your business.

You may argue, and you would be right, that the whole town is talking about your business when they use that memorable phrase! And your business’s name recognition has increased tremendously. Certainly that is a very enviable position to be in. Who wouldn’t want such a fantastic outcome? But the fact still remains that goodwill is good, but what you want is goodwill and money in the bank! Make sure that your witty efforts do not overshadow your product or service. Remember that you are not in the copy writing business (unless, of course, you actually are!) You are in the business of selling your product or service, and that is what you want flying out the door.

Should we be Fearless?

2007-12-01T16:18:00.000-08:00

Some motivational speakers talk about being fearless. How we need to be without fear in order to succeed. We hear the rah rah of the presentation and become convinced that all we have to do is be unafraid and we will master the world.

Well, I have a great deal of respect for fear. I don’t love it, but I can absolutely understand its value. I see no great virtue in being fearless because to me it means not truly understanding danger, and if we do not understand the peril that we are facing, we cannot fight it effectively.

To me being fearless is being foolish. Would you not be afraid of a roaring lion blocking your path? Would you not be scared silly if you had to enter a burning building? Of course you would! Fear is a very valuable emotion. It is built into our very being for the simple reason that we need it in our lives. Without it we would not survive very long.

But the fact that it is such a useful feeling doesn’t mean that we always have to give in to it. Fear is valuable because it makes us stop and think. Sometimes there isn’t a whole lot to think about. If we see a boulder coming straight at us, it is time to get out of the way. But when we let irrational fear take over our lives, then we waste energy and opportunity.

Sometimes fear is so strong that we feel totally helpless. We become paralyzed by it, and we allow it to control our thinking and our actions. When we feel this way, the best thing to do is to put one foot in front of the other and start moving. I am not writing figuratively here, I really mean this. There have been times in my life that I have been paralyzed by fear. It is almost as if I am under a spell of dread and I cannot move. The way I have broken that spell is by the simple act of taking a step forward. Just one little step; that is all it takes to shatter that nasty hex. Once I am released I can evaluate the situation from all angles.

Lets think clearly about the problem, can the obstacles be overcome? How would we do that? Is it prudent? Is it a risk that is well worth taking? Or is the boulder about to crush us? Life is full of risk. Getting out of bed in the morning is already a risk. But some risks are well worth taking, while others are pure disaster. Properly managed fear, and not the lack of fear, is the key to conquering our world.

Should you Buy an Existing Business?

2007-11-28T12:49:00.000-08:00

When we think about going into business for ourselves usually we are thinking about starting from scratch. We may have a special product in mind, or perhaps a unique service. But sometimes an opportunity comes along where an existing business is for sale, and the chance is hard to pass up.

When you buy an established business you don’t have to spend a lot of time with start-up activities, such as getting equipment, acquiring the various licenses, etc.; there is a considerable amount of savings in time and energy. You will also have immediate cash flow because the business already has inventory, receivables, and clients. In addition, you will have goodwill and name recognition, and this will probably make it easier to obtain financing.

But one serious disadvantage is the cost of acquisition. You may have to come up with a large amount of money because the previous owner has already done the basic work. He or she has already bought the equipment, developed the business concept, acquired licenses and permits, developed a customer base, hired and trained employees. You may also get unexpected baggage. Perhaps the equipment is old, or there are ornery employees that have nowhere else to go. It is also possible that instead of goodwill, you are getting a bad reputation attached to the business, and it may be difficult to overcome. Another issue to consider, depending on the type of business, is environmental problems that can be costly to resolve.

There is much to think about, and significant matter on both sides, so weigh the pros and cons very carefully before you decide to acquire an existing business.

Tip of the Day: Gifts to Thank Your Clients

2007-11-23T15:32:00.000-08:00

This is the time of the year to thank your clients and referral sources with a holiday gift. It can be treacherous road, since you may not know that your client suffers from diabetes or high cholesterol when you proudly deliver that yummy cake. And that bottle of wine may be wasted on someone who just gave up drinking. So what is a business owner to do? Here are a few ideas beyond calendars and pens.

Why not give a flash (or USB) drive or a staple-less stapler. These are items that your client will use every day. Other items that may be appreciated and a bit out of the ordinary are back massagers and lip balms.

My personal favorite is books, and for this you need to know a little bit about the recipient. If your client likes mystery novels, give him or her the latest Sue Grafton. Also, there are many beautiful coffee table books on the sale tables at your local book store, find one that appeals to your client. For example, I have a client who took a trip to India. She was absolutely captivated by the country, and she cannot stop tell you about her great experience. I have found a lovely book about India that I plan to give her, and I know that this gift will not add inches to her waist!

If you do not know your clients’ tastes, but you like the idea of giving books, you can give those that reflect your industry, or the region where your business is located.

Giving Thanks

2007-11-21T15:55:00.000-08:00

Tomorrow is Thanksgiving Day in the United States. A great thing about this holiday is that it compels us to take a good look at our lives and see the things that we should be thankful for.

Perhaps you were watching television this weekend, as I was, and maybe you saw interviews with celebrities, where they were asked what they were grateful for. Maybe you heard the standard answer, “I am grateful for my family”. Perhaps you were groaning as you heard them, and you wished that they would come up with something a little more creative.

But I find that, in my case, though I wish I could be more creative, indeed it is true; more than anything, I am grateful for my family, and for very selfish reasons. It is my family who has made me who I am. In my early years my parents and siblings taught me how to live a good life. They instilled a sense of fairness. They also taught me that life is infinitely varied and interesting, and it is all there for us to enjoy. As Rosalind Russell said in the movie Auntie Mame, life is a banquet (though alas she followed up with “and most poor suckers are starving to death”)

This view of life is such a gift to me because it has allowed me to try new things just because they are intriguing and might be enjoyable. I learn about something interesting and I want to take a crack at it, and why not? There is no Don’t Dream police that is going to tell me I cannot do it (And if there is such a police, I will ignore it!) If it doesn’t work out, well then, I have learned new things in my attempt, and that is wonderful because it will lead me down other exciting roads.

My parents are now gone, and so is my beloved brother, who passed away this summer, but my two sisters, my dear husband, my daughter, my son, and my son-in-law, and also my granddaughters and siblings-in-law, continue to give me their love and support. The whole lot is always there for me, cheering me on, telling me to go for it. Without them I would not be who I am, and I would not feel so free to try new things.

I know there have been people like that in your life; those who have given you support and freedom to attempt new things. Probably they have been members of your family, though maybe not. Perhaps it was a neighbor, or your first boss. In any case, be thankful for them; and if you have the opportunity, thank them in person. You would not be a business owners, or an aspiring business owners, if someone had not taken the time to teach you about exploring the world, taking risks, being willing to share with others. This is the nature of a business owner, and that is what a business owner does every day. Sometimes it feels like the weight of the world, but mostly it is a great gift to be enjoyed, so lets say thank you.

Have a very happy Thanksgiving Day.

Between Dream and Reality

2007-11-20T14:24:00.000-08:00

We are cruising along, living perfectly ordinary lives, and suddenly an idea comes into our mind. At the beginning is seems absolutely crazy. “How can I possibly turn this idea into a profitable business?” We begin to dream about the business, selling your jewelry to Saks, writing the great American novel, or becoming a lawyer. And it is our little secret, that outrageous dream that no one but us has to know about. We take it out and dust it off for our own amusement. We think about it when we are cleaning the kitchen floor. But deep down we know that it will probably never happen. It is too scary; it may even be silly!

And do you know something? We are probably right, it will never happen. Not because it is too difficult, scary, and silly, but because as long as we don’t talk about it out loud, it is easy to avoid turning the dream into reality.

So how do we overcome that block; how do we shush that little voice that tells us it is a crazy idea? More specifically, how do you turn the dream into reality? The first step is to say it to yourself, use your most authoritative voice to tell yourself “I am going to start writing right now”. Be convincing, because you are the person that needs convincing the most. Don’t tell yourself that it is possible; tell yourself that it will happen.

Next, tell those closest to you. Here it will probably not be necessary to be quite so authoritative because they almost certainly believe in you already. Maybe they have been waiting for years to hear you say the magic words. Then, tell the world. Be matter of fact, ‘I am a writer”. No need to be defensive, or to go into a long explanation explain, just say it.

Why the talking exercises? Because once you say it out loud you commit yourself to actually doing it. It becomes real.

That is how I talked myself into becoming a lawyer. When my daughter graduated from college I decided that it was my time to go back to school. I knew that if anything happened to my husband, I had few skills that would get me a job that paid above the minimum wage.

I was taking a class in which we had to write about what I call “what do you want to be when you grow up”. At 48 years of age, it was a bit late to be thinking about this, but an assignment is an assignment, and I was going to give it my best shot. I wrote about becoming a court interpreter because I was fluent in English and Spanish, and I had always been interested in the law. I had grown up in a small town in Mexico, at a time when girls did not think about being lawyers. Girls were going to grow up to be mommies, not attorneys. And most certainly I wanted to be a mommy, but deep down I had also wished that things had been different for women of my age.

A few days latter the professor called me in for a chat. Her name is Glenda McGee, a great lady; and she told me that no, I was not too old to be a lawyer, and if I really wanted to do it, I could. At first it sounded silly, but the more I thought about it the more intrigued I became. Still, I wasn’t about to make a fool of myself by telling others what the professor had said to me.

Well, it took me a while to begin to say it to myself out loud. The sound of my voice saying “I am going to be a lawyer” was a bit shocking, but also affirming. After I convinced myself, or perhaps I just got used to hearing the words, I decided to tell my husband about what the professor had said. He looked at me, and with assurance that I did not feel he said, “of course you are not too old to become a lawyer”. And it was still silly, also scary and crazy, but someone who I respected very much had supported me, and I had to believe. After that, I just told everyone in a natural way, “I am going to law school”.

By telling others and myself I made a commitment to taking the necessary steps to reaching the goal. If I had kept it as my deep dark secret, I could always back out. But once I told everyone, I could not go back on my word.

Seven years later, I graduated from law school. That summer I took the California bar exam and passed on the first attempt. In December of 2002 I was sworn in as an attorney at the age of 55. I still have the posters that my daughter and son made for my graduation. One of them says, “Mom shows it is never too late to dream”.

The telling became the first step in turning the dream into reality. So don’t be afraid, tell yourself and then the world “ I will do it”.

Dream Big

Focus on Your Core Business

2007-11-18T13:49:00.000-08:00

The temptation to add products or services to your core business can be great. It can come from your own expectations about what a business such as yours “should” be like; or it can come from your clients, who may be pushing you to fill their every need.

When I first started my law practice, and even today, there was great pressure to be all things to all people. The main reason is that I am one of the few attorneys in our area who is fluent in Spanish. I soon realized that as a solo practitioner I could not help everyone, no matter how meritorious the case.

I knew that I would be doing a disservice to my clients and to myself if I took on every case that comes through my door. I cannot possibly be proficient in every area of the law, so my clients would suffer by not having the best attorney for their case. By the same token, I cannot take every case and keep my sanity.

I how do you choose? You probably came into the business with a strong idea about what your main products or services would be. And this is the case because you are probably quite passionate about those products or services. It doesn’t mean that you should keep your eyes and ears closed to new opportunities. But I am sure that you will come to the same conclusion that I did. The type of case that is most enjoyable, and the one that is the most profitable, should be the focus of the business. No, I am not a genius for having come up with this nugget, but sometimes we get overwhelmed and forget to be practical.

Tip of the Day: Don’t Sabotage Your Marketing Efforts

2007-11-16T14:43:00.000-08:00

When it comes to marketing, do what feels comfortable to you and what fits your personality. If you are shy, don’t participate in a huge networking event; instead, stick to one on one networking such as a coffee or luncheon appointment. If the idea of public speaking makes you break out in a cold sweat, don’t offer to give a presentation to the local Rotary Club, the discomfort will show through. As an alternative, if you like to write, offer to write an article for the Club’s newsletter, or a local newspaper. Pick the method that will be most effective for you. Don’t sabotage your marketing efforts by trying to be someone you are not. Marketing should be a daily activity in your business, so make it an enjoyable one.

Tip of the Day: Why Should Your Customer Believe You?

2007-11-15T16:55:00.000-08:00

As a business owner you believe that you offer a terrific product, and you probably think that your potential customers will also believe that you offer a wonderful product because your mother and your compadre believe you do. But it isn’t enough to say that you have the best vanilla ice cream in the county; tell them why it is so. Explain that your vanilla ice cream is made with the freshest milk and cream, that the milk comes from California cows; and as everyone knows from the ad, they are the happiest cows in the world! Tell your customer that you use the finest vanilla beans that Madagascar has ever grown. Explain how you manufacture your ice cream, the care that you take with each ingredient and each step of the process. In other words, explain, explain, explain why your product is the best. Give your customer a reason to believe, and to buy.

Pricing Your Product or Service

2007-11-14T17:32:00.000-08:00

Pricing your Product or Service

One of the hardest things to do when you are a business owner is coming up with a fair price to charge for your product or service. I can tell you that it was the hardest thing for me when I started my law practice. I had worked for a non-profit law office where we provided legal services for the indigent. The lawyers did not have to consider billable hours or thinking about how much to charge for our services. The survival of the law office was the headache of the executive director, the lawyers worried about the legal work. Our salaries were rather modest, to say the least; but the lights were always on, and there was always paper and ink for the printer.

When I decided to strike out on my own I had no idea how to charge a fee that was fair to the client and to me. Now I am the one who has to keep the lights on and the ink flowing! And even today I struggle with the question of fees when I am doing legal work that is open ended. The billable hours can add up very quickly! For this reason I always try to charge a flat fee, even if it isn’t always possible. With a fee that I quote before I start the work, the client doesn’t have a nasty surprise; though I sometimes do, if the client is calling me at all hours of the day and night!

The pricing strategy is essential for the success of your business. You need to price your product within a range called the Price Ceiling and Price Floor. The Price Ceiling, as the name suggests, is the highest price that you can charge. The Price Floor, obviously, is the lowest price that you can charge and stay in business. You want to be between these two boundaries. “Well, that sound great”, you may tell yourself, “but what do I need to consider in order to achieve that goal?”

Lets start with the price floor, since this is easier to quantify. In order to come up with your lowest price you must consider all your costs, and I mean all. You will start with the cost of the raw materials, your office overhead; which will include utilities, employees’ salaries and benefits; insurance, loans and interest, the cost to operate your company’s vehicles, shipping charges, and taxes to name a few.

Determining your pricing ceiling is not quite as simple, as you must consider factors that are not easily quantifiable. Some questions that need to be answered are: How much is a client willing to pay for this product or service? What is the quality of this product? Why are people demanding this product or service? Do they need it, or do they merely want it very badly? How much does the competition charge for a similar product? What image am I trying to project? These questions are not always easily answered. Some clients always think that the fee is too high. On the other hand, I once had someone question how efficient could I possibly be, based on the fact that my fee was considerably lower than another attorney he had consulted.

But I want to be an attorney that a small business can afford, and I am happy to give up the image of the powerful lawyer; and in the eyes of at least one person, an efficient one. In that particular case, there was no contest, I didn’t really want to work with a client who forms his opinion of the value he receives based on whether I can charge three times my usual fee. I rather work with many clients who believe they are getting value for their money. That is my niche, and it is the business decision that I am comfortable with. You will make your own choice about niche and price. The important thing to remember is that your decision must result in profit for your business; otherwise you won’t be in business very long.

Tip of the Day: Your Referral Sources

2007-11-13T20:18:00.000-08:00

You may be lucky enough to have a group of friends and acquaintances that regularly refer clients to you. Don’t forget that every time they send a customer to you, they put their reputation on the line. Show your appreciation, and keep the referrals coming, by staying in contact with your referral sources. Call them or email them regularly. It doesn’t have to be a long phone call or message. A “Hi, how are you” and a bit of small talk will suffice. And definitely call if you have something of interest to one of your referral sources, he or she will appreciate the information. Also, you may invite them, on a rotating basis, for lunch or coffee; or if both of you are too busy, send a gift card from a coffee house or restaurant. You don’t have to spend a great amount of time making these phone calls, two of them a week should be enough. As long as you rotate the names on your list, and you do this consistently, they will not forget.

Tip of the Day: “What Do You Do?”

2007-11-09T19:23:00.000-08:00

When you are asked, “What do you do?” do you go into a long explanation that makes your listener’s eyes glaze over? You should develop what is commonly called the “elevator pitch”. This is an explanation of your business that you can deliver in 30 seconds or less. Why would this be useful? Well, not boring your listeners is the first reason that comes to mind; but beyond that, the short explanation will focus the attention of your audience. This way they will quickly know if they can buy from you, or if they know someone who can. Another reason for developing the elevator pitch is that you will better understand what your business is about. This may sound crazy; of course you know what your business is all about! But you would be surprised at how unfocused some business are. And lack of focus leads to lack of success.

Legal Structure of a Business: Limited Liability Company

2007-11-08T16:05:00.000-08:00

A Limited Liability Company (LLC) is a relatively new type of legal structure. It has only been in the last 15 to twenty years that states have enacted statutes that allow the formation of this type of entity. At present, all states allow the formation of LLCs, though the laws vary from state to state.

An LLC is comparable to a Corporation in that it gives its members liability protection. But unlike a corporation, an LLC does not impose double taxation. Members of a Limited Liability Company have the same tax treatment as a partnership.

Other advantages of an LLC are that it is flexible to operate, and it doesn’t have as many levels of administration as a corporation. For example, an LLC does not have a board of directors; it is managed by all the members, or by one manager chosen by the members. It is important to note, though, that the formation of both entities is very much alike, and it is done with authority of the Secretary of State.

In an LLC members can be foreign nationals without losing the tax treatment similar to a partnership; this is not the case with an “S” corporation.

Some of the drawbacks are: In some states, such as California, professionals cannot form an LLC. In California in particular, anyone who must be licensed under the Business and Professions Code cannot form an LLC. This includes; not only Doctors, Lawyers, Dentists; but also contractors, real estate agents, and many other types of businesses. Another disadvantage is that it is not as easy for a member of an LLC to sell his or her interest in the company because ownership in an LLC is not as universally recognized as ownership of shares of stock in a corporation. Still another disadvantage is that in many states there must be at least two members to an LLC, though this is not the case in all states.

These are only some of the advantages and disadvantages of an LLC. If you are interested in forming one, consult your attorney, as the statutes and requirements vary greatly from state to state. Still, it is well worth taking a close look into this type of entity because of its flexibility and relative ease of management.

Legal Structure of a Business: Corporation

2007-11-06T10:11:00.000-08:00

A corporation, unlike a sole ownership or partnership, is a legal entity that is separate and distinct from the individual owners/shareholders. This type of entity is complex, and can only be formed with the authority of the Secretary of State or the Government of your state.

Once a corporation is formed, the shareholders must apply for a Tax Identification number, as well as licenses and permits, in the name of the corporation.

There are several advantages to forming a corporation. The first one is that because the corporation and the owners are distinct, the owners are not personally liable for the debts of the corporation. It is also a more stable business structure because the corporation doesn’t end when the owners die. It is also easier to transfer ownership by selling shares of the business.

Additionally, it is not as difficult to obtain financing because lenders feel more confident in the stability of the corporation. There is depth of skills and talents, since the business can draw upon the experiences of the shareholders and directors of the corporation.

But the disadvantages can sometimes scare off business owners who might consider this type of entity. First, there is quite a bit of government control in the formation and management of the company. There are many requirements, such as holding regular meetings, and drafting minutes of those meetings. The tax filing requirements are considerably more complex than those for sole proprietorships and partnerships. There is double taxation, as the corporation pays taxes, and the shareholders pay taxes as well. Also, in many states there is a minimum tax that a corporation must pay. Additionally it is more expensive to form and manage this type of entity because of the many requirements.

In order to avoid double taxation many corporations elect to be a subchapter “S” corporation. In this case the corporation is taxed as a partnership, so the corporation itself does not pay taxes. But a subchapter “S” corporation cannot have more than 35 shareholders, nor can any of the shareholders be foreign nationals. Additionally, if the corporation offers benefits to its employees, such as health insurance and 401K programs, the shareholders often cannot participate, depending on their percentage of ownership in the company.

These are some of the advantages and disadvantages of forming a Corporation. If you are interested in this type of entity, make sure that you consult your lawyer so that she can fully explain the requirements in your state as well as at the federal level.

Legal Structure of a Business: Partnership

2007-11-05T10:17:00.000-08:00

A partnership is a business that is owned and operated by more than one person. Often two or more friends find out that they have similar passion for a particular product or service, and they decide to form an alliance. As with a sole proprietorship, it is relatively easy to form a partnership. There are no major requirements to form this type of entity.

But the fact that there are no legal requirements doesn’t mean that it is advisable to be informal and nonchalant about this type of business ownership. It is prudent and very wise to have a written partnership agreement because it can prevent, or at least minimize, headaches down the road.

A partnership agreement will spell out who will contribute what, and how much of it; how the business will be managed, under what circumstances someone else can join the partnership, as well as how the partnership will be dissolved if and when the time comes.

Some advantages of a partnership are: it is easy to start, given that there are fewer legal formalities than starting a corporation or LLC; there is flexibility, though not as much as with a sole proprietorship; there is depth of experience and perspective, as there are several owner with various talents, skills, and points of view. There is also more ability to obtain capital, since there is more than one person to contribute money to the enterprise. Additionally, there are tax benefits; as the profits will be go directly to the partners and become the partners personal tax liability.

But, as with almost everything in life, there are disadvantages to this type of business ownership. The main one is that in a general partnership, each partner has unlimited liability for the debts of the business. Many believe that each partner is responsible according to the percentage of ownership, but this is not the case. Each partner is wholly responsible for everything. Another drawback is that there isn’t much stability because the illness or death of a partner can severely affect the business. It is also difficult for a partner to sell his or her share of the business because the other partners may not have the capital to buy him out at the time that he wants to sell, and they may not be willing to have that share of the business go to someone they do not know nor feel comfortable with, so the options are limited. And, if a partner dies, the other partners may resist giving the heirs of the deceased partner much say or control, with ensuing tension.

If you are considering this type of business ownership, it is imperative that you consult an attorney for advice, and to prepare a detailed written partnership agreement.

Legal Structure of a Business: Sole Proprietor

2007-11-03T15:48:00.000-07:00

A sole proprietorship is a business owned and operated by one person. The majority of businesses are sole proprietorships; the reason being that it is very easy to establish. You do not need to file documents with the Secretary of State, you don’t have to agree with someone else, you do not need anyone’s permission; all you need to do is open the doors, and you are in business. Of course, it is a little more elaborate than that, as there are several licenses and permits that you will need, depending on your type of business. Baring those requirements, a sole proprietorship is indeed the easiest form of business ownership.

But the ease of business formation is not the only advantage. As a sole proprietor the owner makes all the decisions for the business. He or she has complete control over the management and decision-making of the enterprise. There is also a great deal of flexibility because the owner can respond quickly to any problems, and can make changes without having to consult anyone else. In addition, there are no special taxes to be paid, as there are with corporations, LLCs, and other types of entities. The profits become the owner’s personal income, and are part of his or her tax liability.

But there are disadvantages. One of the most important ones is that the owner has total liability for the debts of the business, as well as any lawsuits filed against the business. This means that the owner can lose not just all his investment, but also all his assets, including his or her personal residence. Another disadvantage is that there are limited business deductions for health insurance and workers’ compensation insurance to name a few.

Other drawbacks include difficulty in obtaining capital for the business, risk to the business if the owner becomes ill or dies, and lack of depth in experience and perspective since only one person has the responsibility and control.

If you are considering a sole proprietorship for your business, talk to other business owners who run their companies as sole proprietors, and weigh carefully the advantages and disadvantages. Additionally, make sure that you consult your attorney for more information.

Tip of the Day: Is There a Market for your Product?

2007-11-02T12:07:00.000-07:00

Often a motivation for starting a particular business is the excitement of offering a product or a service that we are interested in. But is there a market for this product or service?

If you are in the planning stages of your business, find answers to the following questions:

Do people really want what you are offering?
Who are your potential customers?
Will they want the product or service at the price that you are offering it?
Do your potential customers live or work near your business?
Can you create a demand for your product or service?
Who are your competitors?
How will you differentiate yourself and your business from them?
Will your business be able to compete effectively in price and in product?
What marketing methods are your competitors using?

Tip of the Day: Wacky Marketing Ideas

2007-10-31T13:23:00.000-07:00

I found a list of wacky marketing ideas online, and I thought I would share a few with you on this Halloween day. Some were too wacky for me, like the one about nominating yourself for an award, but I will share a couple of my favorites.

1. Give a customer of the month award.
I thought this idea was great, not only do you thank a good customer; it makes you think about who your ideal customer is, which is something that I have talked about in previous posts. You can place a photograph of your customer receiving his or her award in your place of business. You can also take out an ad, or write an article about your award, and have it published in your local newspaper.

2. Hold a wacky contest.
One example is an ugly tie contest; or a mad hatter contest, where the public is invited to design and wear outlandish hats. Another idea is a pet costume contest. People love their pets and love an opportunity to show them off.

3.This one could be called wacky contest on steroids.
It is a very elaborate wacky idea that I saw on the nightly news last week. They had a story about a furniture store owner who announced in April, at the beginning of the baseball season, that if the Boston Red Sox won the World Series everyone that bought furniture from his store for a period of time, I didn’t catch how long the period was open, would get their furniture free of charge. They said in the news that about thirty thousand people took him up on the offer. He explained that he wasn’t loosing money because he had taken out insurance to protect himself from the potential lose, that became very real in late October. Think about this one for a minute, not only did he keep the marketing campaign going for six months; he got a huge bang at the end by having his story told on a national newscast!

I hope that these ideas get your creative juices flowing.

Palace of Justice, Paris France

2007-10-30T12:05:00.001-07:00

I am that small black figure that you see on the steps of the Palace of Justice in Paris. It was a cold November day in 2004. My daughter shot this photograph during a wonderful trip that we took together to London and Paris. To me the massive size of the building symbolizes the power of the law.

Is the Customer Always Right?

2007-10-30T11:35:00.000-07:00

Most marketing experts will tell you that acquiring a new client is very costly, so it is important to hang on to the ones you have. And the mantra of “the customer is always right” is well engrained in the business owner’s mind. It seems that the first commandment of a company is that no matter what the client wants, we must go along in order to keep him or her happy. I disagree. There are some clients that are not worth the trouble. Sometimes a client will want you to do something unethical or illegal. Other clients want to micromanage every minute of your day. Still others are just plain toxic.

I personally have fired a couple of my clients; very politely, I have to say, but nevertheless, they are gone. The reason why I have done this is that these clients wanted something from me that I was unwilling to give.

As a business owner you have many worries and responsibilities, but this is one of the perks of the job. Yes, obtaining a new client is costly, but keeping a difficult one can be more so. Getting new customers isn’t nearly as difficult as hanging on to troublesome ones. Don’t be afraid; being free of a toxic customer will liberate you, and you will find that you have more time in your day, time to find new clients.

Tip of the Day: Your Target Market

2007-10-29T11:40:00.000-07:00

As I mentioned before, an important part of your business plan is a marketing plan; and one key factor in the marketing plan is identifying your target market. Of course, most of us would say “my target market is everybody in God’s green earth!” But you can well imagine that it is very difficult to develop an effective marketing campaign targeted to every person on earth.

There are two ways of defining your target market (well, I am sure there are more than two!). One way is; if you already have a product, ask yourself who would be most interested in your product? If it is a service you offer, who would be most interested in your service? Another way is to ask yourself who would be your ideal client. Who is the client that you would most like to work with and why? This method works best if you are still trying to find a product to sell or a service to offer in your business.

Now, go find that ideal client!

Tip of the Day: Business Plan, Not Just a Good Idea

2007-10-27T09:20:00.000-07:00

Having a business plan is not just a good idea; it is a most important and helpful tool. By focusing your attention on the parts of your business that need tweaking, you can have more control and your business can be more profitable.

Though many business owners dread the idea of preparing one, and you may be one of them, you need to know that you are not alone. There is plenty of help available. Contact your local office of the Small Business Administration for information about their classes, or go to their web site at www.sba.gov. There are also several companies that sell software to help you with this task. You will find many different programs and templates on the market. A quick search on line will lead you to products that fit your needs.

The Importance of a Busisness Plan

2007-10-25T18:06:00.000-07:00

It is understandable that many business owners and prospective business owners hesitate, or outright refuse, to prepare a business plan. The business plan is a detailed map to your business. But the emphasis is on “detail”, and that is why so many people shy away from this tedious task.

But the business plan is a most important tool, and it is often the key to your success. It isn’t that the plan by itself will make you successful. But because it forces you to look at every aspect of your business, it really makes you focus on all the components that make a business flourish.

If you are in the planning stages of your business, the plan will help you to consider all the costs involved in the start-up phase of your business. This way there will be few surprises, and you are more likely to stay within your budget.

Because the business plan will include a market analysis, you will be more likely to treat your business as a money making enterprise, rather than a hobby, or something that “sound like it will be a lot of fun”. There is nothing wrong with having fun; in fact, I recommend it. But if you are not making any money, or if you are running into many unforeseen problems, believe me, the fun will go out of your life faster than you can say, well, “fun”.

When it comes to preparing your business plan, you are not alone. There is plenty of help available. Your local office of the Small Business Administration has classes that can help with this task, or your can go to the website www.sba.gov. There are also several businesses that sell business plan templates, and these can be very helpful.

For established business the task is no less important. Perhaps you have been running a successful business for several years; well, the plan will help you to analyze it in detail to see if you want take it in a different direction. Also, you will see how money is being spent, and you can make adjustments and cut costs. You can look take a close look at your market and see if it is feasible to seek a different type of client, or offer new products.

Don’t shy away from preparing a business plan. It is a very empowering tool. Use it wisely.

Tip of the Day: Your Professional Team

2007-10-23T19:49:00.000-07:00

It is very important to bring together a good professional team to help you run your business. You will need a good accountant as well as an attorney that has experience in business law. Among many other things, your accountant will help you to organize your records so that you do not run afoul of the IRS. Your attorney can advise you about legal issues such as: the best entity to form for your business, help you with trademark issues, review contracts, just to name a few. Running a business can be a bumpy ride, your professional help to clear some of the rocks from the road.

Have a smooth ride!

Tip of the Day: Check Zoning Laws

2007-10-22T15:28:00.000-07:00

If you are planning a home-based business, make sure that you check the zoning requirements in the city where you live. There may be restrictions put on your activities if you are going to be attracting traffic to your home. But if your business will consist of contact with clients through phone or email, most likely you will not violate zoning regulations, nor will you be annoying your neighbors.

Tip of the Day: Marketing

2007-10-20T10:23:00.001-07:00

Remember. No market, no business! Start working on a marketing plan that is appropriate for your product or industry. Be creative with your marketing, but do not ignore the traditional marketing methods for your type of business.

Tip of the Day. Are you Ready to Start?

2007-10-19T09:40:00.000-07:00

Are You Ready to Start Your Own Business?

These are 10 important questions that you should ask yourself in order to determine if you have the personal characteristics of a business owners.

1. Do you think of yourself as a leader?
2. Do others think of you as a leader?
3. Do you like to make your own decisions?
4. Do others seek your help in making decisions for themselves?
5. Are you confident?
6. Are you hardworking?
7. Do you like to learn new things?
8. Are you flexible?
9. Can you stay focused in the face of adversity?
10. Do you work well with others?

Starting a Home-Based Business

2007-10-18T19:59:00.001-07:00

Operating a business from home is a simple and efficient way of starting a new enterprise. It is much easier than it has ever been before, and it no longer has the stigma that it once did. Now it is an accepted manner of conducting a commercial activity.

In the past home businesses were viewed more as a hobby than a real money making activity. But with the arrival of the Internet; and the ease of communicating; whether through a cell phone, a landline dedicated solely to your business, through e-mail, blackberry, or all of the above, home-based businesses have truly come into their own.

At the start of business activities, it is very important to conserve as much of your business capital as possible. A home-based business eliminates the need to rent office space, pay insurance and utilities, and hire employees.

But in order to succeed, a home-based business must be organized with the same care and focus as any other business. There is no room for sloppy planning and unprofessional behavior, even if you are wearing your pink polka-dot pajamas while answering the phone. This is your business and your future; treat it with the respect it deserves.

The first thing that you must do in order to start your home-based business is to inquire about zoning requirements in your community. Each city has its own set of rules about operating a business at home. Much will depend on the type of business in which you are involved. It could be a problem, for example, if you expect lots of deliveries. Your neighbors may not be too happy about truck traffic in your area. On the other hand, if your business involves phone contact with clients, the neighbors are not likely to be disturbed, know, or care whether you are working from home. But rest assured that the city where you live will care whether you are running a business from home. They will want you to obtain a business license, and renew it annually. So make sure that the first thing you do is contact the department that issues business licenses, you don’t want any unpleasant surprises once you have started your activities.

Another requirement in most counties is obtaining a fictitious name. If you are going to be doing business under a name other than your own personal name, it must be registered as a fictitious business name. In most counties, once the business name is registered, it should be published in a local newspaper. This gives notice the public about the person or persons behind the business name.

The next step will be to open a business bank account. Most banks will require that you present the fictitious business name and the city business license in order to open said bank account.

Once you have taken care of those requirements, it is time to think about your work area. How you organize your work environment is very important because it will make a huge difference in your productivity and comfort. If you have to be looking under toys for a work order, it will cut down on your effectiveness. Besides the desk, file cabinet, good chair, and telephone set-up, make sure that you have the best computer, and particularly best printer. I once had a printer (a brand that shall remain nameless!), which made my life a living hell. It would not print more than two pages without a paper jam. It was as slow as L.A. traffic during rush hour, and every few pages it would show the dreaded exclamation point! I hesitated to replace it because it had cost quite a bit of money, and I kept stocking up on ink cartridges, which made me keep postponing the inevitable decision. I kept telling myself how it was bad for the environment to replace something that was relatively new. I kept thinking about all the money I had invested in ink.

Finally I could take it no more. I bought in a new printer, and donated the old one to Goodwill. I do feel a bit guilty about passing on my problem printer to an unsuspecting person, but I console myself with the thought that perhaps that person’s printing needs are not as demanding as mine, and I do have to say that the scanner was awesome! In any case, make your life as easy as possible, have the best equipment that you can afford. Skimp on other things if you must, but your working tools are key.

A business plan is the next item on your planning list. Actually it should be the first. But human nature being what it is, most business owners postpone this step until they are forced by a bank or other institution to prepare one. I have dealt with many start-up operations and I know that 99% of my clients do not prepare one as a first step, and sometimes never. And yet, it is such a useful and important tool that it is hard to understand why most people resist this step.

A business plan forces the business owner to look at all the details of starting and operating a business. It is the reality check of the start-up world. It gets us to look at how much it is going to cost. It makes us focus on our competition and what they offer. This in turn will force us to differentiate ourselves from our competition. We begin to ask questions such as “Why do I want to go into this line of business?” “ How am I different from those many others who offer the same thing I do?” “What niche can I fill?”

The marketing plan, which may be a part of the business plan, or it may be a separate document, is another indispensable step in the planning stage. No market, no business, it is that simple! Make sure that you thoroughly understand your market, and how to spread the word about your product or service. It seems that certain types of businesses utilize particular marketing strategies. While it is desirable to be creative, make sure that you do not ignore the traditional marketing avenues for your particular industry.

The last two points that I will touch on are extremely important. The fact that they are last on the list does not mean that they are not essential, believe me, they are. Make sure that you keep exact account of every transaction. Keep meticulous records of every expenditure, and every penny that you receive from your clients. The IRS is particularly wary of home-based businesses, and it keeps a close eye on them. In case of an audit, you will be grateful that you kept every scrap of paper. The last point is: consult your attorney. Make sure that you are complying with laws and regulations related to your industry, and to business in general.

OK, sorry, that was not the last point. The last point that I will make is to get in touch with your Small Business Administration office . The SBA offers free or low cost education and consulting services. They are a great resource for any small business, whether start-up or ongoing. Take advantage of their knowledge and expertise, you will be glad you did.