Small Business Boomers

Around BIZZIA this week

Our writers here at BIZZIA (the business channel of b5media) are terrific.  Here are some of my favorite posts from this week, for baby boomers and other business people:

Phil Gerbyshank on Slacker Manager passes along an e-book on asking “more better” questions.  What’s the answer?

Lela Davidson of AccountingSolver on one of my top issues for small businesses - working capital.  Good information to keep in mind at all times.

If you are looking for a job, Darlene McDaniel at InterviewChatter has some advice on how to interview as if you didn’t need the job.

On a “lighter” note:

A little levity (from BizLevity) on the current economic situation, which rivals that of prehistoric times.

And a Saturday Night Live video (courtesy of Miranda at Yielding Wealth) that explains why we needed to spend $700 billion on the bailout and who it went to.

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By Jean -- 1 comment

Top 10 Tips for Successful Business Startup - The Top 3

From Tuesday, the first 3 of my Murray Top 10 Tips for Successful Business Startup, and from Wednesday, the next 4 tips, for Baby Boomers and others.

3.  Know what you are selling.  What is your USP?  A USP is a Unique Selling Proposition.  It describes what you are selling and who you are selling it to. The importance of the USP is in its description of your business as UNIQUE.  In order to be successful, you must set yourself apart from other similar businesses.  I like to use the analogy of the cereal aisle in the grocery store.  Each cereal has a USP:  Wheaties is “The Breakfast of Champions” - it describes itself as good for athletes.  Special K sets itself apart by talking about its benefit in a healthy diet.  What’s the difference between the two? Not much.  But you buy one or the other based on how you perceive it as different.  If you don’t know your USP, you don’t know (1) how/where to advertise it or (2) who to advertise it to.  If you don’t know those two things, how do you know you are spending your advertising dollars effectively?  It’s worth spending time making sure you set up your USP before you go out there and try to get your marketing and advertising program going.

2.  Take one step at a time.  Don’t get ahead of yourself by trying to do too much.  As you are working through the process of setting up your business, you may think that everything is overwhelming.  You aren’t sure what needs to be done or how to do it or what to do first.

Every day, take a 3×5 card and write on it the 3 most important things you need to do.  Then do them.  When you get them done, write down three more for tomorrow.   The two most important tasks for most business startups are (1) finding a location, and (2) getting financing.  If you don’t need to do those two things, there are lots more to do.

1.  Last, and most important, Never give up! I once consulted with a young woman who had just graduated from professional school with a health care degree (and a ton of student loan debt).  She knew where she wanted to be and she worked diligently on her business plan.  She went to bank after bank with her plan in the area where she wanted to live.  They all said, “You are asking for too much money.  Come back with a co-signer, enough cash for a down payment, or a smaller loan request.”  Instead of working harder, being more flexible (see #5 from Wednesday’s list), or cutting back on her request, she quit trying.

I talked with her a few months later, and she was a teller at a bank, where she had worked before she went to school.  She never achieved her dream because she gave up.  Marilyn vos Savant says, “Being defeated is only a temporary situation.  Giving up makes it permanent.“  If you want your own business, you have to be willing to work hard, work smart, and keep on going until you get it.  There is no other way.

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By Jean -- 1 comment

December “Holiday Movie” Contest

I was talking to someone the other day about holiday movies.  I enjoy this time of year because I love to watch the old and new movies we don’t see at other times.  Are your favorite holiday movies the ones you remember from when you were growing up, or are they more recent ones?  Let’s talk about holiday movies!  I’m excited to announce a special December contest about holiday movies.  Here is the deal:

Write me a comment to this post telling me your favorite holiday movie and why you like it.  I’ll run all the comments through my random number generator and come up with two winners.

Each winner will receive a 2-month gift certificate to Netflix, my favorite movie place.

The contest starts immediately and ends at 11:59 on Monday, December 15.  Comments must be submitted by that time.  The contest is only open to those in the U.S.

You must post your comment with a movie name.  And you must provide your email address so I can contact you.  No movie name, no email address, no winning entry.

Just to get you thinking about holiday movies, this photo may be familiar to many of you Baby Boomers, from a Christmas movie that was released 25 years ago.  The house has been restored to its original condition (like it was in the movie) and it is now a museum.   Know which movie it is? (Here is a hint: Mr. Bumpus and his turkey-eating dogs lived next door.)

(Image source: Newscom.com)

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Top 10 Tips for Successful Business Startup - Part 2

Yesterday, I gave you the first three of 10 Tips for Successful Business Startup.  These tips work for any kind of business, whether you are a Baby Boomer or Gen Y entrepreneur.  Today, the next 4 tips.

7.  Start with a clear picture of your business.  This one comes from my favorite business author Michael Gerber, author of The E-Myth Revisited.  Gerber says that success comes from setting up a clear picture of the business you want then going after it.  Here is what you need to do: Sit down and imagine your business as it will exist in 5 years or so.  Make your picture as detailed as possible and put it in writing.  The detail should include all five senses - How does it smell? What does it taste like? What do you hear?  Imagine the people in the business - employees and customers; draw pictures or find pictures.  What are the employees wearing?  What are they doing?  What are the customers doing?  If your employees are talking on the phone with customers, what are the conversations like?  The more detailed, the better, to help you get a really clear picture fixed in your mind.  It’s a fun exercise and worth your time, believe me. And include financials, which brings me to my next tip….

8.  Create a Business Plan. Many studies have shown a positive correlation between business success and the presence of a business plan.  If you need a business plan, look on the SBA website; they have lots of good information on how to put this plan together.  If you are going to talk to a bank, the most important part of the plan is the financials.  Make sure they are accurate, not too optimistic (remember #? yesterday), and complete.  They are just guesses, for sure, but they will help you form your business concept for the bank.  Even if you don’t need a bank, having

5.  Be Flexible - Stuff happens.  Don’t have your mind so set on one way that you ignore other possibilities.  That includes the picture of your business and your business plan.  Your banker may tell you to cut down on your needs, or you may need to borrow more.  You may discover you can’t find a location for the price you want, and you’ll decide to build.  Or you may find a business to buy that you never thought you would find.  Who knows?  Stay open and flexible and be ready to move quickly when opportunities show up.

4.  Under-promise and Over-deliver.  Relentless, continuous extraordinary customer service is the only way you can  get and keep customers.  Don’t promise customers anything you can’t deliver and deliver more than you promise.  If you say you won’t keep people waiting more than 10 minutes, keep them waiting no more than 5 minutes, or not at all!  It is all about managing expectations.  If people get more than they expect, they are excited.  They don’t expect much from most businesses, so giving them some little extras can turn new hesitant customers into raving fans.

Tomorrow, my final 3 tips for successful business startup.  Stay tuned….

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Top Ten Tips for Successful Business Startup

As I said before, in the future I believe everyone should start a business.  Not only for tax purposes, but for self-satisfaction, independence, and fun.  We Baby Boomers will all need to start businesses because we most likely won’t have Social Security and retirement funds to support us.

Starting a business is a pretty scary proposition; believe me, I know.  I have done it myself, several times.  I have taught small business classes for many years, and I have distilled the wisdom of myself and many others down to the “Murray Top Ten Tips”  for succesful startup.  This week, I would like to share them with you, in reverse “David Letterman” order.  Feel free to comment, share experiences, disagree.

#10 Put It In Writing.  If it isn’t in writing, it doesn’t exist.  This one has been proved over and over.  If you don’t put it in writing, you’ll end up having to put it in writing.  I had a young business person in my office a few weeks ago. He was negotiating to buy into a health care practice and the selling doctor was telling him, “I will sell you the practice, but I’d like you to work here for a year first.”  That might be a reasonable expectation, but what happens to that promise if it isn’t in writing?  I have seen people come in an steal businesses out from under the person who expected to buy it.  I told him to put the promise in writing, and get a right of first refusal for the practice.

#9 Overestimate Expenses/Underestimate Income.  Double your estimated expenses and cut your estimated income in half and  you might be half right. Bankers have told me that most prospective business owners do the opposite, overestimating income and underestimating expenses.   This doesn’t help get a bank loan, because the bank is rightly skeptical that the estimates can be achieved. If the new owner is asking for working capital to keep the business afloat until it gets enough customers, estimating wrong can spell financial disaster, and quickly.  Put together realistic estimates of everything you will need and realistic estimates of your income, then cut the income and increase the expenses.  It’s better to do better than you expected than worse.

#8 Start with an Employee.  Cutting corners by not hiring someone to help you will cause your business to grow more slowly, and look less professional. It willl keep you from giving excellent customer service.  I know you’re thinking, “I don’t have the money to hire someone,” but there are several alternatives.  If you are working from home, hire an independent contractor to do some of the tasks you don’t want to do, like bookkeeping or marketing.  If you have an online business, hire a virtual assistant to help promote your business, keep you on track, and handle appointments, travel scheduling, and other details.  You can’t afford NOT to hire someone.

More “Murray Top Ten Tips for Successful Business Startup” tomorrow….

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7 Tips for Staying Excited About Your Business

Every business has good and bad times.  And every business owner goes through times when they are excited about their business and times when they are not.  For Baby Boomers who have been in business for many years, this phenomenon is always at work.

We all run in cycles, both emotional, physical, financial, and social.  And we’re all going through a down financial time, which can lower emotional and physical energy.  If the recent depressing economic news and tougher business times has you down, here are some suggestions to help you out of your slump and re-excite your passion for your business.

1.  Think about why you started this business in the first place. I read recently that one of the best indicators of the success of a business is the reasons for starting.  I’m sure one of your reasons was money, but you could get a better return on your money from a CD right now, or a good high-grade bond.  So, why did you start the business anyway?  Spend some time listing all the reasons you wanted to start your business.  I’m guessing your reasons include a passion for this business.  My whole business career, I have been passionate about helping people start their businesses and make them successful.  Some self-reflection might help you focus on your passion again.

2.  Talk to customers/patients/clients.  Just when I think I am not making a difference, someone comes to my office or calls me or sends me a note to say, “Thank you.”  It’s a great shot in the arm.  Every day for a week, take a minute and call a long time customer, just to let the person know you value their business.

3. Take a vacation.  Everyone needs a break.  One of the best ways to get re-energized is to get away for a while.  I know you are saying that you can’t possibly get away.  Try it anyway.  Farmers who have milk cows have to be there every day, but even they can find someone to take over for a week or two.  A weekend won’t do it; you need time to unwind and get your head into a different space.  A week or two and you’ll come back refreshed and ready to go back to work.

4.  Attend a seminar or convention.  Another good way to get re-energized is to attend a seminar and learn something new.  You’ll come back with lots of ideas for your business and a list of contacts to work on.

5.  Start exercising.  There’s nothing better to stimulate your thought processes than exercise.  I used to listen to books while I walked, sometimes motivational Tony Robbins stuff, sometimes good mystery or thriller books.  This was great, especially the motivational stuff, but now I leave behind the iPod and I just think.  I walk every day and I always end my walk with a new idea for a blog post (like this one) and a re-commitment to my blogs.  Even a short time away from the business to do something physical can help.  Even in December.

6.  Celebrate Something.  Make it unexpected and fun.  Involve your staff in the planning process.  A chiropractor I know like to shake things up when she senses that she and her staff are getting bored and tired.  They plan an event, invite patients, and by the time they are done, they have a new excitement about the practice.

7. Try Something New.  Brainstorm a new product or service you can offer.  Try a new advertising slogan. Go to a new place for your holiday party, or do a children’s party instead.  Not only will the process of thinking of something new get you and your staff excited, your customers/clients/patients will be re-energized as well.  And that can be very good for business.

8.  Take time to laugh.  One of the most influential books in my life was by Norman Cousins, called Anatomy of an Illness.  Cousins learned that he had a terminal disease, but rather than give in he decided to fight it with laughter.  He started watching old comedies, like the Marx Brothers, and he found it alleviated the pain and he was able to concentrate on healing.  Interesting book.  Remember Laughter is the Best Medicine, from Reader’s Digest? It’s true.

I know I ended up with 8 tips, but just thinking about all these great ideas gave me even more than I planned.  I hope these tips help.  I’m going to go watch the Three Stooges.

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Holiday Shopping on b5media Blogs

Over at the Lifestyles channel, they have put together a Virtual Mall with lots of great shopping ideas.  Maybe I can talk my family into looking at the list of gifts for quilters and fabric artists on Quilting and Patchwork.

The Splendicity (Beauty and Style) channel will give you plenty of inspiration in its holiday gift-giving guide.  I’m checking out the fabulous shoes list for my daughter-in-law.

I’ll give you more as I find them.

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Black Friday - To Spend or Not to Spend

Today is Black Friday.  The official start of the holiday shopping season.  Some are predicting a dismal season.   Lots of bargains will be available, I predict.  But should all of us rush out and spend money or not?

Although it hasn’t been officially announced, we certainly are in a recession.  Defined as two consecutive quarters of negative growth in the economy, a recession is clearly underway. With the decline in home values, the hit we Baby Boomers took on our retirement funds, and the media’s constant bad news, it’s no wonder the predictions are for a dismal holiday shopping season.

According to financial guru Jeff Thredgold (his publication Tea Leaf is excellent) , consumer spending was down last quarter 3.7 percent, the largest percentage drop in 28 years; consumers spent $80 billion less last quarter than the previous quarter.

And consumer spending is the largest portion of economic activity.  In the U.S., consumer spending represents 70% of this activity.  Consumer spending declines = much lower economic activity = recession.

So here’s the question:

• Should we encourage spending, particularly spending via credit, to get the economy moving and get us out of the recession?
• Or should we suggest restraint, less spending, to make a long-term impact on strengthening the economy and stop the spending spiral that caused this mess in the first place?

I first thought “We should tell everyone to SPEND, SPEND, SPEND.  We need to get out of this recession.”  But I decided that is short-term thinking.  I believe we (and I’m talking about baby boomers and all consumers here) need to stop the profligate spending and be more restrained in our expectations.  We don’t all need big new houses.  We don’t need those lavish vacations.  We don’t need to be living beyond our means.  In the long term, the U.S. and world economies will be better off if we spend less.

What do you think?

 .

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By Jean -- 1 comment

7 Reasons I’m Thankful for Small Business Boomers

In honor of Thanksgiving in the U.S. today, I got to thinking about things for which I’m thankful.  In my list, I decided to include being thankful I’m a Baby Boomer and for my really great job here at Bizzia with Small Business Boomers.  Here is why:

1.  I like being part of history - Baby Boomers are the largest single demographic group in history.  I think that’s pretty cool.

2.  I enjoy interacting with other Baby Boomers who have similar interests and ideas.  It’s fun to get emails from people who “get” what I’m trying to do.

3.  I figure we all got a raw deal with the recent stock market crash and we have to stick together.

4.  I am thankful to be part of a generation that volunteers. Baby Boomers take the time to give to others. Many of us volunteered when our children were younger (PTA, kids’ sports, local community and church efforts), and now we have the time and energy to volunteer more.

5.  I am thankful that Baby Boomers will have a significant effect on politics for many years to come.  Our last two presidents have been Baby Boomers, and our new President-elect is also a Boomer (albeit at the younger edge of the generation).

6.  I’m proud that Baby Boomers launched the Civil Rights movement and the Peace movement and that we are at the forefront of the Green movement.  Baby Boomers care about the world and its people.

7.  Finally, I’m thankful to be part of a generation that has weathered many storms and difficult times  - from the assassinations of John Kennedy, Bobby Kennedy and Martin LutherKing, Jr., to the Challenger disaster, and September 11 terrorist attacks - and we always show our courage, our patriotism, and our determination.

Happy Thanksgiving, Baby Boomers!

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Why Baby Boomers Should Keep Investing in the Stock Market

You probably think I am nuts.  You just lost a bunch of money by having your 401(k)/IRA invested in the stock market.  But now is the best time to keep investing.  For some of us, who are on the verge of retirement, it may be too late, because you are done investing, or need the money as income.  For the rest, take advantage of this opportunity:  It’s called “dollar cost averaging.”

Your contributions to your 401(k)/IRA will buy you more shares of mutual funds or stocks/bonds now.  In part, it’s the principle of “buy low/sell high.” I know we all missed the boat on that “sell high” thing, but we can definitely get into the “buy low” thing.

Dollar cost averaging says you keep investing the same amount. This evens out your returns.  Simple example:

If you invested $1000 in Blue Chip Mutual Fund a year ago at $50 a share, your investment would have given you 20 shares.

If you invest $1000 in Blue Chip Mutual Fund today at $30 a share, your investment gives you 33.34 shares.

You can see that your investment today gets you a bigger piece of the “pie.”  As prices rise (and they will, over time), your shares will increase in price.  More shares, more total investment.

For more information on how this works, check out Joshua Kennon’s Beginner Investment Guide Site on About.com

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By Jean -- 1 comment