The Business Girl

Small Business Tip: Free Shipping Equals New Customers!

2011-09-09T12:42:00.001-07:00

If there's one thing customers love, it's the belief that they are getting a great deal. One of the easiest ways to pass a deal onto your customers is to offer free shipping.

With the growth of the Internet shopper, the offer of free shipping has exploded. Nearly half of the online purchases last year involved free shipping with many consumers declaring that they will cancel a purchase if free or discounted shipping isn't available.

There are lots of ways that a retailer can offer free shipping. It may be a straight up discount or a bonus for repeat customers. It may require a minimum purchase or be offered to exclusive subscribers. The one requirement is that your customer leaves the transactions feeling like they have received a wonderful deal.

Here's a look at some of the free shipping options you may want to consider:

Free shipping on every order. Not many retailers off the all free, all the time option. A handful of big retailers have embraced this model to help streamline the shopping experience for the customers. Fans of the free shipping model are L.L. Bean, Nordstrom and Sears.

Members only. For this free shipping option, you have to be members of the exclusive club. Typically this only involves signing up for a fee oriented online club (e.g. Amazon Prime) or signing up for frequent email blasts.

Minimum order size. One of the most popular free shipping options requires us to buy more than we originally intended to in order to receive the free shipping option.

Site-to-store shipping. One of the newest free shipping options is the site-to-store option offered by some big name retailers. This requires you to order online and then visit the retail store to pickup your goods.

Flat-rate shipping. It may not be totally free, but it represents a big discount.

Small Business Tip: Ready, Set.... Outsource

2011-09-09T12:42:00.000-07:00

Take a look at your to-do list for the week. Do you have items that you know you will never attempt to get done? Do you have a bunch of items that won't help generate revenue? Is there stuff that is just outside your area of expertise?

If the answer is yes, it may be time to call in the experts to help take some of the noise off the line. For example, are you spending your time doing bookkeeping when you really should be seeing clients or are you spinning your wheels writing web copy when you should be designing a website? It's definitely time to outsource anything that isn't driving new business.

Here are some ideas of where you would be better served by calling in an expert:

Writing. This may be totally self-serving, but not everyone is a writer. When it comes to those documents that you plan on using to build your business, it can be well worth the investment to call in a business writer to put your business into words.

Bookkeeping and Taxes. I highly recommend taking a class to ensure you understand your financial statements, but it can be beneficial to call in a bookkeeper / accountant to help pull your books together.

Creative Work. If you spin your wheels when it comes to creativity, there are lots of experts who relish in their creative rolls. A relationship with a great graphic designer will reap benefits for years to come.

Technology Setup. Ok... you can do your own technology setup. It takes hours to get your DSL up and running. Researching the newest technology can take days. A technology expert can streamline all your tech needs so you can be up and running in no time.

Cleaning. You have better things to be doing than emptying trash cans. Every entrepreneur will spend some time doing their own tidying up, but there comes a time when you will need to call in a cleaning service to take the dirty work off your hands. (This can especially be true if you work in a home office!)

Production. Sometimes you get so bogged down in the production of your product that you don't have time to focus on anything else. If production issues are eating your day, it may be time to call in a production expert to help manage all the day-to-day issues.

Errands and Scheduling. Entrepreneurs often have to manage the needs of their business and their daily lives at the same time. Rather than go to an office away from the clutter of home, life follows them everywhere. Often the first position to be filled for an entrepreneur is the personal assistant who can help with everything from picking up the dry cleaning to setting your schedule.

Anything You Don't Enjoy. Life is too short to do the things that you don't really enjoy. You will have to take on these things at first, but once the cash flow comes in outsource them ASAP.

Is Email Ruining Your Small Business Productivity?

2011-09-05T16:30:00.000-07:00

Email can be the best friend of a small business owner or it can a major drain on your time!

Email can be invaluable tool designed to keep you in constant contact with your customers, employees, suppliers, and more. It can also be a distraction that pulls your attention away from the business of running your business efficiently.

If you find yourself being pulled into the email abyss with a never ending flow of messages flowing in and out of your mailbox, there are a few rules that can help streamline your communications and keep you focused on running your business.

Set aside a few dedicated times during the day to respond to emails
Limit the time of each email session to keep your business moving
Prioritize your responses so time critical emails are done first and less critical ones can be done at the end of the day
Clean out your subscriptions. If you don't need to read it or you automatically hit the delete button, it's time to unsubscribe!
Setup an email hierarchy so higher priority emails are sent to dedicated folders (e.g. sales) and less critical ones are set to your personal email (e.g. the latest photos of your sister's kids)

Keep to these simple rules and watch your daily productivity increase along with your profits!

Small Businesses Are Taking Longer To Pay the Bills

2011-09-04T16:34:00.000-07:00

If you are a small business owner, you probably already realize that it is taking small business owners longer to pay their bills these days. If you find yourself doing the daily dance of stalking the mailman hoping for a pile of paid receivables, you are not alone.

According to the Raleigh-based small-business research firm Sageworks, small businesses across the country are seeing their average accounts-payable days rising. Manufacturing is taking the longest at an average of 40 days, real-estate businesses are at 20 days, and retailers are up to 34 days.

Why is it taking customers longer to pay?

Client payment slowdown. It's the trickle down effect, major corporations that have enough cash flow are taking longer to pay their smaller subcontractors. When big clients take longer to pay, small businesses will tend to pay their vendors much slower.

Poor cash management. When you are a small business, you will have to make collection calls. It is one of those functions that we put off sometimes until it is too late to collect. Many entrepreneurs finding themselves in the position of having to put together credit decisions on the fly that they come to regret later.

Downturn Delay. With the recovery funds not flowing as quickly as small businesses expected, many business owners are scrambling just to keep the doors open day-to-day. As a result, some of the administrative functions of running a business like their billing procedures have fallen to the side. Delayed billing results in delayed payment.

Is your business paying bills slower after the downturn?

Starting Your Business: Assembling Your Team

2010-07-03T12:20:00.000-07:00

Once you have your business plan in place, it's time to build the team that will help you put it into action. The team that you choose will help you start, operate and manage your business. Whether they are employees, contractors, interns or just experts to call in a crunch, there are some factors that you should consider when choosing your support structure.

Vision: Do they fully understand your company's’s vision, mission and goals?

Experience: Do they have the skills and experience necessary to effectively implement the business plan?

Function: Do they bring value to your organization?

At minimum, you'll need a team of professionals you can call on for advice or contract for startup activities. This team may include:

A Business Consultant/Writer: OK.... this is a personal plug, but you'll realistically need an expert who can help with building your business plan and achieving your goals. The amount of documents that need to be developed at startup can be overwhelming and a great writer can help mark off a bunch of those to-do items off your list.

Designer(s): A critical early expenditure that will assist you in building the brand image of your company. From development of the company logo, creation of marketing materials, and design of your website, a professional graphic and / or web designer will set you apart from the competition.

Attorney: Startup is the time to make sure all the t's are crossed and i's are dotted. An attorney will guide you through the legalities of selecting the business structure, guidance on legal matters, and contract review.

Bookkeeper and / or Accountant: The financial aspect is often the most difficult portion of starting up for many new business owners. An accountant can assist you in establishing an initial operation budget and implementing the accounting system. They can also be invaluable in filing quarterly and annual tax statements. On a monthly basis, a bookkeeper can keep the books up to date on a weekly or monthly basis with minimal cost.

Administrative or Virtual Assistant: An administrative assistant can help keep the business organized and moving forward so you can focus on the bigger picture. Most startups can't afford an in-house administrative professional right away, but there are a growing pool of virtual assistants that can be hired to take some of the noise off the line.

One of the first lessons that new entrepreneurs learn is that they can't do everything themselves. It is often cheaper and faster to hire an expert to help you maneuver the hurdles of startup. Take the time to map out your team structure and find the resources available to help you implement your business plan and you'll save yourself many headaches.

Are You Ready to Launch a Business?

2010-07-02T11:32:00.001-07:00

The idea of running your own business sounds promising to many, but in reality most people aren't equipped to start their own business. Before you start down the path to opening a business, you need to ask yourself a few tough questions to see if you have what it takes to enter the world of entrepreneurship.

Leadership: Are you a leader or a follower? Am you decisive or do you second guess your decisions? An entrepreneur needs a certain comfort in making decisions and living with the outcomes.

Adaptability: Can you roll with the punches and take on a wide variety of roles? An entrepreneur needs to be able to take on a wide range of new duties and multitask. Being able to adapt and learn new function is a necessary skill for the successful entrepreneur.

Enthusiasm: Are you excited about the product or services you are offering? You've got to have passion for the service or product in order to successfully launch. You are ultimately the walking billboard for your business and have to be able to sell it to potential clients.

Uncertainty: Can you handle the uncertainty of not receiving a paycheck every Friday or the sudden inflow of a flood of orders? The one thing that is certain with every startup, everything is completely uncertain. You need to be able to adapt and have a certain expectation that things aren't always going to go as planned.

Time Management: Can you manage time well and keep a home-work balance? For many new entrepreneurs, the tendency to work 24/7 can be overwhelming. A successful entrepreneur needs to maintain a balance for the benefit of their business and lifestyle.

American Express Launches AcceptPay

2010-05-14T11:07:00.000-07:00

The first lesson every small business owner learns once they open their doors is that you need to get used to getting paid a little irregularly.

Back when I held a "regular job", I took it for granted that my paycheck would get direct deposited into my bank account every Friday. Since starting my own business, I have had to become accustomed to the feast-and-famine scenario of running a small business.

American Express has launched a new online service that is designed to help small businesses expedite their payment cycle and put all of their billing information in one central location. Many small businesses run their invoicing and payment operations through a combination of applications -- Excel, Quickbooks, PayPal, Merchant Processor, and more. The new AcceptPay application released by Open for American Express seeks to streamline the entire process by processing the accounts receivable cycle from invoicing through payment.

AcceptPay lets you electronically invoice customers and accept online payments all in one place. Customers have the choice to remit payment through all major credit cards, eCheck or ACH. The funds are automatically deposited into your bank account helping you maximize your cash flow. You can even sync up the information with your Quickbooks application to make bookkeeping a little easier!

Learn more here.

Kimberly-Clark Launches Grant Program for Momtrepreneurs

2010-05-06T05:41:00.000-07:00

Do you consider yourself a Momtrepreneur? If you do Kimberly-Grant has introduced a new grant program created just for you!

The Huggies MomInspired Grant Program is awarding up to $15,000 for the development of products and services inspired by motherhood.

Visit their site to submit your unique product idea that addresses an unmet parenting need for the chance to receive a grant of up to $15,000 for startup money.

Time is of the essense with the grant submission period already open. You have until June 9, 2010 to submit your proposal.

If you need some help with your proposal, I'm offering a discounted rate for assisting with the proposal process. Email me at terri@thebusinessgirl.com with the subject MomInspired for details.

White House Fashion Favorite Closes Its Doors

2010-05-05T11:16:00.000-07:00

The one thing that is certain - both the fashion industry and politics are unpredictable.

It seemed like the fashion dream-come-true for Chicago based designer Maria Pinto. Her fashions were being seen everywhere -- in the newspapers, on TV, even at the Democratic National Convention. The future first lady Michelle Obama had selected the designer as her go-to wardrobe choices during her husband's run for the presidency. Whether it was the teal dress worn at the convention or the red dress she sported to meet the Bushes on their way out of the White House, Mario Pinto style had arrived in Washington.

So it was incredibly surprising when a "closeout sale" sign was posted in the window of her Chicago store in February. The strain of the recession and the inability to expand beyond her loyal Chicago following had ended the business. Of course, Ms. Pinto admits that she made some rookie startup errors in financial management and general operations that hurt the budding brand.

The nail in the coffin came after the introduction of the spring 2010 line in New York last fall. The rave reviews came in, but there were no orders to follow. Buyers had shied away from her higher price point items -- between hundreds and thousands of dollars per ensemble. The brand just couldn't outlast the current trend to budget friendly fashion.

Lesson to be learned -- even the best of press won't help you if you can't adapt quickly to the changing market.

Market Watch: Organic Food Sales on the Rise

2010-04-26T10:59:00.001-07:00

Americans are on the move to a healthier lifestyle!

Despite the recession, U.S. sales of organic products skyrocketed in 2009 according to a new report by the Organic Trade Association.

Organic product sales climbed by 5.3% in 2009 to a record high of $26.6 billion ($24.8 billion was organic food and beverages.) In comparison, the total U.S. food sales grew by only 1.6%.

Wooing the New American Consumer

2010-01-20T16:29:00.000-08:00

There's no doubt about it, American consumers have been profoundly altered by the recession in a way that will undoubtedly have a lasting effect on how they shop and spend.

A new report released by Decitica, "Marketing to the Post-Recession Consumers," gives one of the first glimpses into the diverse reactions to the recession and how it has changed consumers spending habits.

While age, gender, and income continue to affect the way consumers respond to marketing, today's shoppers have become much more savvy in how they react to marketing messages.

Decitica has identified four new distinct consumer segments: Steadfast Frugalists, Involuntary Penny-Pinchers, Pragmatic Spenders and Apathetic Materialists.

1. Steadfast Frugalists comprise nearly one-fifth of American consumers spanning across all income and age groups. The core value of the Steadfast Frugalists is self-restraint. They are the least brand loyal and expect their new budget conscious shopping behaviors to stay with them for a long time. This group takes pride in their frugal attitudes.

2. Involuntary Penny-Pinchers have been forced to embrace thriftier shopping methods. Unlike the Steadfast Frugalists, they're more flexible in their decision making and less likely to restrict themselves to buying store brands or generic labels. As a group, they have average household incomes of less than $50,000, are largely in their 30s and 40s, and are primarily women (six in 10). The vast majority have been scared into tightening their budgets by the recession and are more worried about the future than the other groups.

3. Pragmatic Spenders have curbed their spending (for now) but are expected to resurrect their past spending habits. As a whole, they have higher spending power, they are primarily male (six in 10), and they are largely individuals in their 60s from the Northeast and West. More than one-third of people with household incomes greater than $75,000 are in this group.

4. Apathetic Materialists tend to be the least changed by the recession. As younger consumers under the age of 40, with most in their 20s, this group group is seemingly unaffected by price and the long-term aspects of the recession.

Business Owners Are the Happiest Workers

2009-11-24T09:59:00.000-08:00

For many of us, the satisfaction we have with our job is affected by the passion we have for what we are doing.

Based on the results of a recent Gallup survey, entrepreneurs are the happiest workers. In a poll of more than 100,000 Americans in 11 sectors, business owners scored highest (72.5) in "overall well-being".

The overall well-being was measured by questions on six key areas of their lifestyles: work environment, self-evaluation, physical health; healthy behaviors (such as not smoking), emotional satisfaction, and access to basic necessities (such as food, shelter and health care).

While business owners may not make as much money as professionals (ranked second) and managers/executives (ranked third), they rank in job satisfaction and work environment making them as the happiest Americans.

The Business Girl Holiday Discount

2009-11-24T09:08:00.000-08:00

As a general rule, we don't offer discounts very often. With the current state of the economy we want to help give new business owners an extra incentive to take the step and get started on their business NOW.

For a limited time only, we are offering a discount of 20% off all business plans. Just ask us for a quote for your project or send us the email with your previous quote. When you are ready to get started on your project advise me that you want to take advantage of the 20% off deal.

This offer is only valid through December 15, 2009.

Do you believe?

2009-11-24T08:51:00.000-08:00

Do you believe? The holiday season brings alive a spirit of giving in many of us.

This is definitely a year for belief -- in believing that everything will get better, believing the jobs will return, believing that home prices will recover, and believing in the goodness of others. Leave it to

Macy’s video below to remind us all about the spirit of the season.

Companies Born During Downturns

2009-02-11T05:00:00.000-08:00

Don't think it's the right time to start a new business. Some of today's powerhouse companies were born turning during economic downturns.

Some stories of inspiration:

Procter & Gamble
Founded during: The Panic of 1837
Two brothers-in-law, candle maker William Procter and soap maker James Gamble, decided to join forces to start a small household-goods business in Cincinnati. The two stuck it out through six years of financial struggles and went on to score lucrative contracts to supply necessities to the Union Army during the Civil War. Today, the couple produces many of the most recognizable brands in the United States, including: Pampers, Oral-B, Tide, Iams, Duracell, and Pringles. Revenues for 2008 totaled $83.5 billion.

IBM

Founded during: The Long Depression, 1873-1896
Three startups - the Tabulating Machine Company, the International Time Recording Company and the Computing Scale Corporation - launched during this 23-year period with technologies that were in demand despite the down economy. Their inventions included a time clock for recording workers' hours and a tabulating machine was vital during the immigration wave. The three companies merged in 1911 as the Computing-Tabulating-Recording Company, which renamed to IBM several years later. This technology powerhouse has thrived through rough times in its past including a 1960's antitrust action by the U.S. Department of Justice and the movement away from mainframe computers to personal computers. operations. Despite consumers cutting back on technology purchases last year, the company saw its revenues rise based on the outsourcing of technology services and a had record revenue of $103.6 billion.

General Electric

Founded during: Panic of 1873

Opened as a laboratory by inventor Thomas Edison in 1876, it was there that he produced the first light bulb in 1879. Edison used the economic downturn as a time to gain momentum to start a company he called Edison General Electric Company. The company posted $183 billion in revenues in 2008.

Starbucks Says Hello To a New Day

2009-02-10T17:26:00.000-08:00

Starbucks took a hit last year when McDonalds added coffee house coffees to their menu, now the brand is taking on their newest competitor head-on by introducing their very own "value" oriented menu.

The company announced it's new "Hello To a New Day" promotion which will pair food and drink items at a reasonable price of $3.95. Yep, you can pair a latte with a piece of coffee cake or a cup of house blend with one of their new breakfast sandwiches.

Included in the $3.95 deal are one of four hot sandwiches which are currently sold at half of its U.S. locations or a slice of cinnamon swirl coffee cake or a bowl of oatmeal coupled with a tall drip coffee or a tall latte.

Of course, Starbucks is officially refusing to call it a value menu, but prefers to refer to it as a adjustment to the new economy.

The Stimulus Plan: What's In It for Small Businesses

2009-02-10T14:10:00.000-08:00

As a consultant who specializes in helping small businesses I get a lot of questions about how the economy is affecting my clients. Following last night's Presidential news conference, the topic changes today to what impact the stimulus package would have on the small business marketplace.

Both the House and Senate seem to agree that bank loans need to start flowing again. As we've seen over the past six months, small businesses both new and existing have found it challenging to find operating capital from banks willing to lend in these turbulent times. While both houses of Congress have plans on how to solve the problem, the solutions are wildly different.

The House stimulus plan which was passed two weeks ago, focuses primarily on increasing the guarantees that the Small Business Administration makes to banks that issue small business loans. The House bill directly earmarks $440 million of the total $820 billion directly for these small business initiatives.

The Senate plan which was passed Tuesday wouldn't change the SBA's loan guarantees, but would temporarily eliminate the fees the SBA charges for its guarantees. It sets aside $615 million exclusively to cover the dropped fees. The SBA's small microloans program is a secondary focus of the Senate bill. The Senate would allocate $6 million in new funding for the microloan program - plus an additional $24 million for marketing, management and technical assistance to lenders who make those microloans. In total, the Senate's proposed direct stimulus spending for small business initiatives adds up to $730 million, out of the bill's estimated $838 billion cost.

The Senate and House bills are now moving to conference to negotiate a final compromise bill. President Obama hopes to sign the final bill into law this week.

The 7 Best States to Start a Business

2009-01-09T15:58:00.000-08:00

We know the economy is hurting, but some places are doing much better than others. When you are first starting a business, the question of "where" is one of the key questions you need to ask yourself.

U.S. News is out with a new report based upon two comprehensive studies that different approaches to measuring the which states are friendliest to entrepreneurs: the 2008 New State Economy Index, by the Kauffman Foundation and the Information Technology and Innovation Foundation, and the Small Business Survival Index 2008, by the Small Business and Entrepreneurship Council.

Here is their list of the top seven states for starting a business:

1. Washington. Washington is tops among the states in steps toward energy efficiency and using more alternative-energy sources. It has a well-established, highly productive manufacturing sector with high wages and a tech-intensive economy. In addition to these nonpolitical factors, Washington also has very low taxes, making the costs of growing a business quite low. The state also doesn't have its own income or capital-gains taxes.

2. Virginia. Virginia has a highly educated workforce and a high level of technological sophistication coupled with low taxes. Virginia has been one of the leaders in the information technology revolution, with the highest number of IT occupations in non-IT industries as a share of total jobs.

3. Colorado. Colorado is one of the fastest-growing states (the population is estimated to have grown 13 percent from 2000 to 2007) and currently boasts the third-most-educated workforce in the nation. The state comes in fourth place in terms of the number of patents issued to companies or individuals per 1,000 workers. The state also finishes in the top half of all states in terms of the level of income, capital gains, consumption, and property taxes.

4. Texas. Texas has the most globally-focused manufacturing sector in the country and the lowest workers' compensation costs of any state. It also lacks an income or capital-gains tax for individuals.

5. Nevada. Nevada has no income or capital-gains tax for individuals or corporations, the 15th-lowest property taxes, and the second-lowest number of government employees. Yet it ranks high in the export focus of its manufacturing sector, the productivity of its manufacturing sector, the number of patents issued, and the electronic sophistication of its healthcare system.

6. Utah. Utah has the third-fastest-growing firms in the country. Utah's government lowers the cost of doing business by making few health insurance mandates--the fourth fewest in the nation of any state.

7. Florida. Florida has been hit hard by the housing crisis, more than almost any other state. Its low corporate and unemployment taxes and nonexistent individual taxes attract new entrepreneurs. It ranks ninth in the nation in the export focus of its manufacturing sector and eighth in the number of Internet domain names created per firm.

Donny Deutsch: Now Is The Time To Start a Small Business

2009-01-08T07:28:00.000-08:00

Donny Deutsch is out with a great new book called, The Big Idea: How to Make Your Entrepreneurial Dreams Come True, from the Aha Moment to Your First Million. In his promotional tour for the book, the ad guru stopped by the Today Show to say exactly what I've been telling clients for months -- now is the perfect time to start a new small business!

While big business is hurting, the market is perfect for a small business to take advantage of some opportunities that didn't exist a few months ago. As people and businesses look for deals, small businesses can undersell their big competitors and land new contracts in this new marketplace. Small businesses can also take advantage of reduced prices from suppliers, lower rents on office and retail spaces, a growing potential employee pool, and the availability of consultants at reduced rates who may normally not even return your phone call.

The stage has been set for small businesses to make it big in the new year! This year's growth markets are expected to be in the medical, legal, entertainment, mom and baby products, technology /Internet, beauty, and green industries.

Visit msnbc.com for Breaking News, World News, and News about the Economy

The Keys to Standing Out in a Difficult Economy

2008-11-21T10:37:00.001-08:00

There's no denying it: business is slow these days. Two months ago my phone was ringing off the hook and I was turning away clients due to too much work. These days I am only talking to a few potential clients each day.

We are in the midst of a very difficult economy. Small business owners and entrepreneurs are taking a wait-and-see approach to the credit market and putting projects on hold. And yet I am seeing many more email inquiries and getting alot more requests from established companies.

Despite the credit crunch, it is an ideal time to get started with planning your business so that you can stand out from the crowd when it does come time to get funding.

Loans and credit lines are tight, but that doesn't mean that financing has dried up completely. Equity financing is still available for great business opportunities. Many investors are looking for places other than the stock market to put their funds to use. They are willing to take the risk on a well thought out business idea.

The keys to finding financing in today's economy are the same as they have always been - you just need to execute even better than ever before and put in a little extra work:

Have a compelling business opportunity. A great idea, a vision on how to achieve success, and a plan on how to maximize performance. You will need to demonstrate all of the traits that investors have always wanted to see in a great business plan: an innovative solution to a problem, with demonstrated demand, sustainable competitive advantages, positive financial potential, and a committed management team who's been there and done that.

Tell your story in a clear, compelling way that that stands out from the stack. A downturn is generally a good time to start a business, but with a flood of displaced workers hoping to launch their own business will create a lot of entrepreneurs competing for a shrinking pool of capital. In order to succeed, you need to put a lot of time and effort into developing a killer business plan, practicing your elevator pitch, creating amazing presentations, establishing an executive summary, financial forecast, website, and more.

Perseverance. Even in the best of times, raising money is a hard job. The same process that may have taken three to six months might now take as long as a year. For some entrepreneurs, it will take extra patience and communications to sell your idea to the right investors.

This is not the first down-turn we've seen and it won't be the last, but if you keep your eye on the long-term view you can use these times as a opportunity to grow a successful business.

The Mind of the Entrepreneur

2008-11-17T15:18:00.001-08:00

A new study out by Cambridge University has shown that entrepreneurs’ brains are different to those of managers. The study found that entrepreneurs’ brains were more active in the region of the brain which is responsible for taking “risky or hot” decisions.

The study is the first to look at entrepreneurs through neuroscience. To gather the results, researchers gathered 16 successful entrepreneurs and 17 managers. A series of tests showed entrepreneurs were more apt to be impulsive and mentally more flexible than the traditional managers.

Choosing the Right Business Partner

2008-11-04T10:18:00.000-08:00

One of my favorite sites for women entrepreneurs, Ladies Who Launch, has a fantastic new article posted about how to go about deciding whether or not to go into business with someone. It is absolutely critical to take an objective look at a potential business partner before you take the leap to start a business together.

It often sounds ideal to follow your dream into owning your own business with a family member or close friend. But you have to be realistic when choosing a business partner to help create a positive business model and maintain those close relationships. Nothing ruins a friendship faster than a failed business.

Some of the things you need to look at include

Work Ethics
Values
Individual Strengths and Talents
Trust
Respect
Compassion

Read all of their tips and recommendations on choosing the right business partner at Ladies Who Launch.

New Businesses Rely on Credit Over Friends and Family

2008-11-03T19:02:00.000-08:00

It used to be that new business owners would turn to their network of friends and family for startup funds. A new report out from the Kauffman Foundation shows that more and more entrepreneurs are turning to personal bank loans and credit cards to get their businesses off the ground.

According to the study, nearly 75 percent of most firms’ startup capital is made up in equal parts of owner investment and bank loans and/or credit card debt.

"Indeed, our calculations indicate that external debt financing—primarily through owner-backed bank loans and business credit cards—is the primary source of financing at a firm's inception. The average amount of bank financing is seven times greater than the average amount of insider-financed debt; three times as many firms rely on outside debt as do inside debt."

Giving It Away -- Samples Work!

2008-10-13T11:14:00.000-07:00

We all love to get something for free. Admit it you've waited in line for a sample at the grocery store or asked for a sample taste of a new ice cream (nearly 64% of us have accepted a free sample in the past three months). Well apparently giving stuff away really does inspire us to buy it.

A new study from the research firm Arbitron reveals that 35% of shoppers bought an item the same day they sampled it and 58% said that they would buy an item they sampled in a later shopping trip.

So if you are planning to introduce a new product to the market, add in some marketing budget for some free customer samples. A little upfront expense can lead to increased revenues later on.

Source: NY Times

Getting Your Name Out There

2008-10-12T10:33:00.000-07:00

I spend a lot of time seeking out new ideas and options for new business owners. There is so much "stuff" that you need to effectively run a profitable business and in this economy we are all looking for ways to keep our budgets under control.

One of the most critical steps to starting your business is to let other people know who you are and what you do. Something as simple as a business card can slip to the bottom of the to-do pile because you just don't have the budget or quantity requirements to meet the ordering restrictions of conventional printing companies.

I found a great option while visiting one of my daily reads, decor8. Writer Holly Becker has discovered the amazing calling card designs by Avie Designs which could be a perfect fit for many of my startup entrepreneurial clients. The cards allow you to share with the world all the critical information to contact you in a funky, artful business card.

Avie has two option that are a great fit for a small business. Their customizable calling card lets you to include your name, phone number and website. While the website cards are just that -- no name, no phone number, just your web address. Both options are budget friendly -- less than $15 for 80+ cards.

(images from avie)

And the Survey Says: Men Twice as Likely as Women to Start a New Business

2008-10-11T17:05:00.000-07:00

A new survey by the Kauffman Foundation shows that the percentage of U.S. women starting a business has dropped to its lowest level in at least 12 years.

Their annual entrepreneurial survey showed that the activity rate for women starting businesses dipped to 0.2 % in 2007 down from 0.23 % in 2006. In contrast, the entrepreneurial activity rate for men increased to 0.41% in 2007 up from 0.35% in 2006.

The study is based on data collected by the U.S. Census Bureau and U.S. Bureau of Labor Statistics.

The author of the study, Robert Fairlie, an economics professor at the University of California at Santa Cruz, admits he was surprised to see the decline in entrepreneurial activity by women.

"I don't have any explanation for why it dropped," he says. "One possibility is that female entrepreneurs have more trouble finding capital than men, and maybe this worsened in 2007 as financing became tighter."

There was an overall upturn in the percentage of the U.S. population involved in business start-up activity in the 20-64 age bracket with nearly 300 out of each 100,000 adults involved in entrepreneurial activity.

Another major trend in the survey --the entrepreneurial activity rate among Latinos increased from 0.33 % in 2006 to 0.40 % in 2007, the largest increase for any major ethnic or racial group.

The places with the highest entrepreneurial activity rates were in Atlanta, Phoenix, Los Angeles, New York City, San Francisco, Miami and Riverside-San Bernardino, California.

The First Step to Your Business Plan

2008-10-07T06:03:00.000-07:00

To write a business plan, you will need to be able to answer some vital questions.

Grab a notebook and do some brainstorming to answer the following questions. It may not be formal, but the responses will give you an idea of where your business is going.

1 - What is your business idea?

2 - What are your goals for starting this business?

3 - Who are your customers?

4 - How is your business different?

5 - Who are your competitors?

6 - How much money do you need to startup and how much will the new business make?

7 - Where are you going to get the startup funds?

8 - How will you measure the success of your new business?

9 - What are the key milestones for your business?

Do I Need a Business Plan?

2008-10-06T11:25:00.000-07:00

Every business needs a business plan!!

I don't care how small your business is or how long you've been in business, you need a business plan. It doesn't matter if you utilize a business plan consultant such as myself or if you develop your plan on post it notes -- don't start business until you have at least a basic business plan in place.

The process of creating a business plan is more valuable than the final business plan itself. The steps it takes to create a plan will help you in every phase of your business. A fully developed plan will help you develop the priorities, goals, and path to success for your business.

Although most businesses create a business plan for an outside party such as banks or investors, the most critical audience of the plan is you. You are the one who is accountable for whether you succeed or fail and the plan can help you go through the steps to ensure your success.

Selecting Your Business Model

2008-10-05T13:29:00.000-07:00

Once you’ve determined the type of business you want to start, it is time to start considering your business model options.

In today's marketplace there are many business models available to entrepreneurs. I highly suggest starting with one model and once you have your footing you can evaluate growing your business into one or more of the other sales avenues.

Some of todays business models are:

Home-based

Thanks to our electronic advances, you can easily create a legitimate and competitive business from home. Nearly half of all businesses in the United States are being run from home and that number is growing each year. These businesses are both full and part-time endeavors and may or may not be web-based businesses.

The upside of a home based business is that it has much lower start-up costs and is easily scaleable to your time and financial inputs. You can work a home-based business around family requirements or an existing day job. With the growth of the outsourcing community, you can easily contract with other businesses to do web-design, public relations, keep the books, or even do the manufacturing.

The downside of a home based business are that you are restricted by local zoning ordinances (they won't let your run a factory in your home) - you will need to check with your local government center for your communitities specific restrictuions. Working at home has its own set of challenges and you can easily be distracted by other domestic activities. You should also consider if you want to have customers visit your home.

Brick-and-mortar

The classic business model is the brick-and-mortar business that involves a physical location outside of the home. This type of model has a dedicated facility from which you will operate the business.

There are many upsides to the brick-and-mortar model. You can easily work face-to-face with people and become a part of the local business community. A specific location allows you to benefit from walk-in trafic depending on the type of your business. Many customers still don't trust the web-based retailers and will only shop at brick-and-mortar retail shops. You have the benefit of a space dedicated soley to business allowing for a separation of work and homelife.

The downsie is the increased risks and start-up costs. You will need to establish a location, enter into a lease or purchase, and customize the location to fit your needs. You will typically need to hire additional staff and keep set business hours. In a retail business, you will need to build inventory and develop relationships with suppliers.

e-Commerce

One of the fastest growing models is the e-commerce business model. With this model, you sell products to consumers via a website.

The biggest upside is that an e-commerce business has much lower cost and less risk associated with start-up than a traditional brick-and-mortar business. Typically an e-commerce business requires minimum personnel, inventory, and faciclities. It is very easy to scale an e-commerce business to fit your lifestyle and commitments. The schedule is flexible and adaptable. The biggest difference this model has to a basic home-based business is that you can market your goods to a much broader market and is not fixed to your location as customers are reached via the internet.

The downside is that an e-commerce business can be overwhelming if you don't set up an organized system from the start as you will need to handle shipping, inventory management, customer service, and order processing with limited resources. There is also a lot of competition on the internet and it can be difficult to generate traffic to your website and then convert those viewers to become customers.

eBay

A relatively new business model is a sub-category of e-commerce, an ebay store. An ebay store is a great alternative to start your business.

There are many upsides to using an ebay store to get started. Ebay has a number of tools that can help you get your business off the ground - paypal to accept electronic payment, established customer base, ready to use online templates. The cost is minimal - typically just inventory and sellers fees will get you going. It is easily scalable and you can list as much or as little as you can handle efficiently.

The downside is that due to its vast size, there is a lot of competition. You will need to stay on top of your transactions to compete with well established sellers with strong feedback rating and established customer bases.

Entrepreneur Tip: Buy a Notebook and Write Your Ideas Down!!

2008-10-04T07:45:00.000-07:00

Once you decide you want to start your own business and you make the desicion about what type of business you want to start, you will be surprised at how fast ideas will start to come to you. The first thing I recommend to my clients that are just starting out is to buy a notepad and bring it with them everywhere.

Bring that notebook with you everywhere. Ideas and questions will come to you at the park, as you wait in line at the coffee shop, or as you are picking up the kids at daycare. As quick as they come, they will quickly disapear unless you write them down.

At this stage, there are no dumb ideas and no dumb questions. Write everything down and flush out the details later. I'll give you ideas later for ways to use your notebook, but for now just find one you like and make sure you have it with you wherever you go.

Choosing the Right Business For You

2008-10-03T12:32:00.000-07:00

Millions of people dream of starting their own business - nearly 2/3 of the American public say that they want to go into business for themselves. A small fraction of those are brave enough to take the plunge.

The most difficult decision that entrepreneurs face after they make the decision to work for themselves is in deciding what type of business they want to start. Before you rush into something merely based on what may make the most money, you should take an honest look at the priorities of you and your family. Running your own business can bring you much more than financial success or failure, it can bring you a much broader sense of fulfillment and control that you could ever expect.

To help you make an insightful decision, there are some simple steps that you can take to help you choose your own path.

What do you want to do?

In the United States, the average employee spends 40 hours a week at work, 2080 hours working a year. That is a fraction of the time you will work if you run your own business. In an office, you have a departments for finance, office management, human resources, sales and marketing, business development, and much more. In your own business, you run the whole show 24 hours a day / 7 days a week / 365 days a year. Choosing the right business for you is critical to your success when you are investing that kind of time and passion into something. Pick something that will keep you excited and interested. If you do something you truly love, you won't mind the long hours. If you like what you do, it won't feel like the grind of doing work (at least most of the time.)

What are your skills?

We all have things that we are good at. Sit down and make a list of things that you do well (even things like hobbies) and you may be surprised at some of the business options open to you. For example, if you’re good with people or business you may select a business that relies heavily on interpersonal activity, such as consulting, sales or public relations. The important thing is to find a business in which you will really shine and be well-suited for the critical functions of that business. You don't need to do everything well, there are lots of outside consultants and contractors that can help you in the areas where you don't shine so don't let what you don't know scare you away from doing something you will truly enjoy.

What business fits your lifestyle?

When you are considering businesses make sure you take into account the type of lifestyle you want to lead. If working at home is your priority, you should consider an e-commerce based business that doesn't involve travel. If you need flexibility in your schedule, you can consider project based businesses such as graphic design, website development or writing where a set schedule is not critical to business.

What about money?

Let's be honest, money needs to be a criteria in determining what business you want to run. You need to sit down and carefully consider your business financing requirements. If you have limited resources and don't want to see out financing, select something that you can grow organically without outside funding. Start small and let the business revenues provide the operational and growth capital you’ll need. Many businesses can require small amounts of capital to start and that may be the best route to take if you are just starting out. For example, with my own consulting business, all yI started out with was my laptop and a phone line. Once you get established you can develop additional marketing materials such as business cards and brochures or a website as you grow.

Do you have an exit strategy?

It may surprise you but you should always have a plan of how you will exit your business if or when the time comes. Do you want to sell it? Do you want to keep it forever? Are you ready to liquidate if it doesn't work? Picking an exit strategy at the start will help you eliminate future legal and tax headaches for later.

It is absolutely vital for you to think things through before you jump into business ownership. Too many entrepreneurs end up bored and discouraged because they didn't take the time to consider their options and select the right path for them. Take a little time now to set a vision for yourself to set up the ultimate success of your business, it will make the road you take that much more enjoyable

The A-Ha Moment

2008-10-02T06:17:00.000-07:00

Most businesses start with an a-ha moment. You know the kind, it's the moment when something just fits together like a puzzle and all of the sudden it makes sense.

For me it was when I was laid off from my Finance job at which I had been telecommuting from home when my son was 18 months old and I realized I didn't want to start back with another company that would require me to travel or work extra-long hours. I liked seeing my son and I had to make my job fit that requirement.

I started freelancing by helping one of my old employers write a Finance manual and then a friend needed help writing a business plan and then another friend needed some training documents written and I was on my way.

Freelancing is wonderful. You don't get pulled into office politics. You can set your own rules. The downside is no benefits and an unpredictable work flow. Sometimes you are so flooded you can't see straight, other times you are nervous that you'll never work again. If you can make it through the first downtime, you'll survive as a freelancer.

For many of my clients, the a-ha moment comes at the end of busy project when they realize its not really the end but just the start of another cycle of running around crazy for someone else or when we go through life's transitions - job changes or family changes - and for others it is just time for a change. The key is often to find something that you actually enjoy doing and decide to do that for a living.

The first step to really starting your own business is deciding that you want to do something different. Once you decide you want a change, you'll be amazed at how fast the path for you will become clear.

Welcome to The Business Girl!

2008-10-01T06:14:00.000-07:00

Welcome to The Business Girl! I have been helping start-up businesses for almost 10 years. I have helped many businesses go through the opening phases of start-up to developing into a successful profitable business. I will share my own experience as a business owner and offer some tips and guidance to help you on your path to being a successful entrepreneur.

I hope to share some of my insight on how to start your own business and how manage that business through the daily challenges we all face.