What I thought it took and what it takes to be successful in my micro business.

Here’s what I thought it took to beat the odds and succeed:

·      Passion, Motivation or Desire

·      Grace & Gentility, and Gratitude

·      Fair Products, Services, or Commodities

·      Cash, lines of Credit, and personal Credit Cards.

Here’s what I learned it really takes to be successful in business:

o   An Impersonal Business Plan (IBP) and an Insensitive Accountant (IA)

o   Sales. Sales.  And more Sales. (No sales = No Income.)

o   No strategy.  No success!

o   Guts, Grit, and Discipline

o   Thick skin, big ears (active listening) and a small mouth.

How much time do you spend each week working “in your business?” 

o   Prospecting? 

o   Writing proposals?

o   Engaging on Social Media?

o   Client work. Production.  Delivery.

o   Handling customer service questions

o   Preparing invoices

o   Collecting money

o   Assessing your Aging Report?

o   Staying in touch with former customers?  Prospective buyers through newsletters, e-blasts, or direct mail campaigns.

How much time do you spend each week, “working on your business?”

Circle your favorite activities about working “on your business.”

o   Reducing expenses to increase your profit margins?

o   Implementing quarterly sales strategies?

o   Generating new leads,

o   Maintaining customer loyalty

o   Becoming a thought leader in your industry?

o   Developing your year-long objectives (month-over-month, year-over-year?)

o   Establishing a consistent brand?

o   Maximizing PR & advertising opportunities?

o   Analyzing your Profit/Loss Statement & Balance Sheet?

o   Creating new products. 

o   Balancing your checkbook, managing cash flow, and turning your inventory?

o   Expanding your customer journey so current buyers spend, more tell more, and keep coming back for more?

What differences did you find between what you thought it would take to be successful and what it actually took?

Strive to be a millionaire

My dad was a salesman and when my husband left the military, I wanted to buy his food brokerage business and move back to Oregon.  My dad told me, “No. Sales are too tricky for girls.” 

So my husband took a job in Wisconsin, and I set out, determined to prove my dad wrong.  I started my first business in 1986 after being completely inspired by at a conference titled, “Uncommon Women on Common Ground.” What I lacked in capital, I made up in passion and partnerships. 

I started out as a motivation speaker but eventually made more money networking for more famous and successful speakers and authors. Some of them were celebrities.  Many of them were business gurus.  One was an expert on Romance.  Many of them made more money in an hour than I’d make in a year.  I was captivated by the words of 

Jim Rohn, “Become a millionaire not for the million dollars, but for what it will make of you to achieve it.” 

So I sought off to become a millionaire. I thought that hanging around wealthy people would make me rich.  But I learned a very valuable lesson. The appearance of wealth does not guarantee a positive net worth (All assets – All liabilities.) My husband was a financial analyst and I knew that income – expenses = profits.  I learned first hand that if earning  $10,000 in a day, and spending $12,000 the same day is not good business. This flew right in the face of everything I had learned that, “You have to spend money to make money.”

After my children grew up and left the house, I became as the General Manager of a distribution center, I spent that majority of my days pouring over balance sheets, calculating profit margins, analyzing Aging Reports, and putting out “fires” (customers, vendors, and staff.)

According to Investopedia, General Managers commonly rank about most employees but below corporate-level executives.

But…I was lucky. I had an Assistant GM that handled inside sales, purchasing, and general accounting; an inside sales rep that took orders and handled in-house and online purchases; a warehouse team that picked and delivered orders, and a small, but mighty, sales team.  Even with access to a parent company including full-time accounting and HR department; marketing director, and IT; it was still an ongoing challenge to build the sales strategy, cultivate a customer loyalty program, and motivate staff to exceed the companies financial objectives.

Our job, the only reason any of us were hired by the owner, was to make money;  maximize profits, reduce expenses, and justify our bi-weekly paychecks.

And yet, people continue to start micro businesses at twice the rate of

80% of Americans are employed by companies employing 15 employees or less and 90% of the Gross National Product is generated by small businesses.

But here’s what I’ve learned:

It takes more than:

A great product

Motivation

Or seed money to succeed.

Starting a business is like birthing a baby, the fun has only just begun!!!!

Invest in Yourself

What do you do each day to invest in yourself?   If you work in Sales, you are probably constantly encouraging people to invest in your products...your services...your opportunities.  As you "sell" others to invest in themselves, what are you doing to invest in yourself?

According to Wikipedia, the definition of Investment is "Time, energy, or matter spent in the hope of future benefits."  From the same source, "Return on investment (ROI) is the concept of an investment of some resource yielding a benefit to the investor. A high ROI means the investment gains compare favorably to investment cost."

Here are a few of the things I do each day to invest in myself each day:  yoga; meditation; drinking water; laughing (loudly); dancing (wildly); and getting plenty of sleep.

Life is meant to be enjoyed. Life a life full of love.  Invest in yourself. You're worth it.

Greatest Salesman in the World

My dad was a food-broker. Growing up, I didn't know that meant "a person who sells food to restaurants." I thought it meant that we got to eat in restaurants every night because that was his job.

I loved my dad.  He loved Oregon State University and he loved baseball.

In 4th or 5th grade, I borrowed this book, "The Greatest Salesman in the World," by Og Mandino.  I read it from cover to cover.  I had no idea what it meant, but I liked the story.

When I was an adult and wanted to run my own business, I asked my dad if I could buy his food-broker business.  I wanted to move back to Oregon when my husband left the Air Force so we could be closer to relatives and friends.  My dad's response was, "Sales are too tricky for girls."

So our family moved to Wisconsin, my husband got a job as a financial analyst,  and I started my own company.  I set off to the National Speakers Association to learn how to become a motivational speaker.  The evening keynote speaker was Og Mandino.  I couldn't afford to attend all of the sessions for the conference, so I snuck in to massive ballroom to hear Og speak.  He was not only a great salesman, but he was a fabulous speaker.  

A few months later, Og died.  I was glad that I had snuck in to see him speak before his tragic accident.

Many years and many moves later.... I've decided to return to return to an industry I love:  networking, promoting, and selling professional speakers, authors & consultants.  

Last Sunday I found an old copy of The Greatest Salesman in the World in a "free book" box at church.  Now I know exactly what Og was talking about.

"Strive to be a millionaire, not for the money it will bring you, but for the person you will become along the way."

Message for the Day:

• What are some of the well-meaning messages that loved ones have told you that are not true?
• Forgive them today.

• When was the last time you read a book that changed your life?  
• Do it today.

• Who are people in your life that you want to meet?  With social media, it's easier than ever to engage with people you admire. 
• Make a connection today.

Networking Tips

"A network is an organized collection of your personal contacts and your persona contacts' own network. Networking is finding fast whom you need to get when you need to get them in any given situation and helping others do the same."  -Harvey Mackay, author, "Dig Your Well Before You're Thirsty"

Networking: A network provides a path, a way of getting from point A to point B in the shortest possible time over the least possible distance.

In every moment, "You are either networking or being "networked." For me, the most successful networking opportunities are spontaneous conversations that sprout out of nowhere.  In line the grocery store. Sitting next to someone one an airplane.  An e-mail from someone who saw your post in an on-line forum.

Too often people think that networking is collecting a lot of business cards at the Friday night Chamber of Commerce Wine & Cheese Party. Yes, business cards are handy (they have all sorts of good info like Name, phone #, and e-mail address.) But more important than collecting business cards/contact information is creating new relationships. Real relationships...not relationships based on a hidden agenda.  (Can't you tell when someone strikes up a conversation to sell you something, not because they really care about getting to know you?)

If you want to build your business through networking...keep collecting business cards, but remember that it's more important to build relationships. Practice really getting to know people. Genuinely care about them and what they do. If they are passionate about their work, chances are they are good at it too.

People like doing business with people they like. And people like people who are like them. Leveraged networking is about tapping into the people that people know, and nobody is going to want to share their valuable contacts with you unless they "know you." Trust is the key to meaningful relationships and only time will truly expose people for their true intentions. 

One of the best tag lines I ever saw was for a woman's conference I attended back in the mid 90's.  It was titled, "Uncommon Women on Common Ground."  It was an event put on by Women, Inc. (a former non-profit organization for entrepreneurial women.)  I was sitting in the hotel lobby and started chatting with the lady next to me.  I had no idea who she was.  It didn't matter.  I was excited and my ride was late.  I just started talking. I told her I loved the conference and I was so glad that someone had put together such a great event for new entrepreneurs.  To make a long story short, she was one of the co-founders of Women Inc. She asked me to stay in touch. I sent her a thank you letter when I got home.  She invited me to speak at their next event and I later became their National Spokeswoman.

This taught me that networking takes place any time. Any where. Start today. Be yourself.  Make some friends.  Have some fun. And watch your business grow!

Getting to Home Plate in the Game of Life

When I was growing up, my dad coached my brother's little league baseball team. I spent countless hours on a baseball diamond...packing & unpacking equipment bags, handing out water cups, leading cheers, and sometimes even arguing with umps. 

As I grew older, I started by watching people. I notice how gracefully they handled life's 95 mile per hour curve-balls (or not.)  I observed how they "trained." 

Next, I observed their close relationships with their family & others. 

I also realized that they created their own financial independence (regardless of their income.) 

And lastly, I watched them give back to others. 

It occurred to me that there were "rules," in life, just like in baseball.  

For example, a runner advances from the batter's box to 1st base, 2nd base, 3rd, and then home plate. You don't score a run for making it to first. The most beautiful triple doesn't count if you can't make it Home. 

My father (born in 1935) was raised to hit the ball and run straight to 3rd Base (Work) My mother was trained to always head to 2nd base (Family.) Both gave generously to others in time of volunteer work, but neither lingered on 1st Base (Mind, Body, Spirit.) I always seemed to get stuck at home (Giving Back to Others)...by giving time, money and talent to others before taking care of myself. Whether you are playing in Little League or the Big Leagues, if you don't first tag 1st base, the umpire will throw you out. 

Over the years, I've finally figured out how to traverse the playing field called, "Life." It starts by getting off the bench.

Once I got the hang of my priorities: Mind, Body, Spirit; Family & Close Relationships; Financial Independence; and Giving Back to others, I found myself Home. I found myself Happy. I found myself at Peace.  GETTING TO HOME PLATE IN THE GAME OF LIFE

Top 10 Reasons Small Businesses Fail

According to a study by the U.S. Small Business Association, "only 2/3 of all small business start-ups survive the first two years and less than half make it to four years?

Why is this?

Leaving a company to start my own business was the most exhilarating thing I've ever done. The excitement. The adrenaline.

Until I realized, "oh crap," I just started my own business.  I'm responsible for everything.  Sales, Marketing, Operations and Financial Reporting.  I'm making my own website, calling on customers, and delivery products or services.   When I worked for others, I had people who did all of this for me. Now I am the head of HR, the CFO, and the IT department.

Here's a link to a fabulous article by the NY Times describing the Top 10 Reasons Small Businesses Fail:

1.  The math doesn't work

2.  Owners can't get out of their own way.

3.  Out of control growth.

4.  Poor accounting.

5.  Lack of a cash cushion.

6.  Operational mediocrity.

7.  Operational inefficiencies.

8. Dysfunctional management.

9.  Lack of a succession plan.

10.  A declining market.

If you see your business suffering from any of the above, it's time to take action NOW.

New business owners often think they can't afford help.  Often they can't afford not to get help.

There are virtual assistants to help with administrative tasks and operations (like answering phones and handling invoices); firms to help you create a better sales plan; and fractional general managers to manage working on your business while you work in your business.

Make sure your business plan and cash flow allows for the independent contractors you need to get your business to the level where you can hire full time staff to grow your business and thrive in the marketplace.

Why? Because starting my own business is still the most exhilarating, exciting, and adrenaline producing thing I've ever done.  I'm betting it's the same for you.

And you can bet that I'm going to do everything I can to make sure I am in the 1/3 of small businesses that makes it work, and you can too!