Women: The Male Business Perspective

Two Points of View

Recently, I was talking with a male entrepreneur whose company markets to women business owners. He had some insights about how women entrepreneurs operate that had me nodding in recognition.

First, women take time to build relationships. Second, we love to gather tons of information before making a decision. And third, we rarely buy without getting input from other women first. All these ways of operating made sense to me, but as we talked, I also began to see their downsides.

Relying on recommendations can lead you to buy something that’s great for your friend, but not so good for you. Gathering data is smart, but it’s easy to gather so much that you get overwhelmed. And building relationships is important, but sometimes you can’t afford to “take it slow.”

I left our meeting with a new appreciation of how important a male perspective can be. Next time you’re pondering a decision or stuck in a situation, consider getting some input from men. Whether it’s your significant other, a business colleague or a key employee, most likely, a man will have a completely different perspective on the issue–and you’ll gain a new insight that can get you over your hurdle.

Rieva Lesonsky, Guest Blogger
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Women: Do We Have an Edge in the Recession?

The Female Advantage

Today’s tough economy calls for using every tool in our toolbox to keep our businesses growing. Personally, I think women entrepreneurs have a couple of advantages here.

First, we tend to be more intuitive—more willing to go with our gut to come up with creative solutions for doing things differently. Second, we’re more willing to share advice and ideas with others—and to learn from others, whether that means our colleagues, employees or customers. So take advantage of this fact and start gathering ideas from every source you can think of. That could mean using an online survey tool, holding a focus group, brainstorming with your staff, picking your best customers’ brains over lunch or talking to other business owners in an online or offline community. Find out what your customers want, what your employees think and how other entrepreneurs are handling tough times. Then, use your creativity to make this knowledge work for you.

Rieva Lesonsky, Guest Blogger
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Accounting: Record Keeping 101

Bookkeeping Basics: Boring with Benefits

Entrepreneurs, by nature, are charged up and enthusiastic about running their businesses. Perhaps the last thing they want to think about is recordkeeping. How boring! Yet, how important! It is a must to keep good books and records. Tracking your revenue as well as your expenses lets you know whether you’re making or losing money. It enables you to prepare financial statements that may be needed for loan applications or other reasons, and recordkeeping is required for tax return preparation. Here’s what you need to keep in mind:

Decide how you’ll keep records.
Today most small business owners use software or online accounting solutions for recording income and expenses. There are many easy-to-use no- or low-cost options.

Retain receipts.
You’ll need to keep receipts, invoices, canceled checks and other paperwork to support tax deductions claimed on your return (the IRS provides guidance on record keeping in Publication 583. Whether you use expandable folders or scan paper receipts into your computer, make sure your system protects the records and allows for easy retrieval.

Set up a separate business bank account.
Don’t co-mingle your personal affairs with your business finances; you’ll complicate your record keeping and probably miss out on tax deduction opportunities. Also, it’s a good idea to obtain a credit card used solely for your business.

You’ll want your recordkeeping tasks to become routine. Setting aside time on a regular basis to record your income and expenses will help establish good recordkeeping habits. Or you may want someone to do this for you (an employee or an outside bookkeeper/accountant).

Barbara Weltman, Guest Blogger
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Disaster Planning: Be Prepared

Cover Your Assets

Entrepreneurs are optimistic and don’t want to dwell on the dark side. Unfortunately, bad things can happen—a fire or flood can wipe out inventory, a storm can cut electricity for days or longer, a customer can be injured on your premises. These occurrences can be financially costly and emotionally draining, unless you plan ahead with adequate insurance and disaster planning.

Make sure you have all necessary insurance policies in place before you open your doors for business. At a minimum, you need a business owner’s policy (BOP) to cover your business assets as well as provide liability protection in case third parties (customers) suffer injury. If you have any employees, you’ll need workers’ compensation as well as short-term disability in some states.

You’ll need to avoid insurance gaps. If you use your personal car for business driving, make sure your car policy covers accidents while on business. If you have a home office, check with your insurance agent to determine whether your homeowner’s coverage provides protection for your business assets and for liability claims from business visitors. You may need to add onto your homeowner’s policy or obtain a BOP.

With storms and other natural disasters making headlines, don’t fail to plan for the worst case scenarios. Be certain to regularly back up data on your computer (preferably to offsite servers) so you can recoup information if computers are damaged. Think what you’d do if your business location was not operable; maybe you and your staff could work remotely. Write plans for you and your staff to follow in case of emergency.

Learn about the types of insurance you may need for your business from InsureU.

Barbara Weltman, Guest Blogger
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Start: From Home to Business Zone

Working from Home and Making it Work

Many entrepreneurs dream of the flexibility that having one’s own business can provide. Working from home—all the time or occasionally—is often part of that dream. The reality is that it takes planning and realistic expectations to successfully work from home.

Space
You need an adequate work area. A dedicated area—a spare bedroom—is ideal. Make sure there’s good light and space to store work supplies within reach.

Family
Working from home is a family decision. It’s helpful to train children and pets to stay away if possible while work is in progress and to keep hands off work projects.

Zoning
If you’re a freelancer, consultant, or engaged in other work that’s solitary and quiet, you probably have no concerns about town or city rules on operating a business from home. But if you have employees or your business entails noise or odors, check to see whether it’s legal to operate in a home office. If you live in a community or cooperative apartment, review your homeowner’s association rules on working from home.

Connections
To avoid isolation, make sure your work incorporates regular meetings, luncheons and appointments with people on the outside. Joining network local groups not only provides this type of outlet but can also help you market your business.

Marketing: Key Ways to Grow Your Biz

Marketing, Marketing, Marketing

You can never do too much in the way of promotion, advertising, public relations, and other marketing activities. The challenge today is to find no-cost and low-cost ways to effectively promote your business, find new and retain existing customers and clients, and grow your business. Here are some ways to do this:

Web Site
Without a site, you may be at a disadvantage. Yet fewer than half (49%) of small businesses still don’t have a Web site, according to a survey last September by Barlow Research.com. Whether your business is entirely local or has a longer reach, a Web site can be used not only to sell products and services, but also to create trust with customers and explain what your business is all about. You’ll want to include customer testimonials to help establish credibility. You can use your site, for example, to publish a blog so that you have viewers returning on a regular basis.

Email Marketing
Today, it’s relatively easy and low cost for even the smallest business to create a growing database of existing and potential customers. Use opt-in email marketing to stay in touch with your connections—send monthly newsletters, announcements, or other helpful information that will be appreciated.

Networking
Connect with other business people to build relationships that can translate into business down the road. Whether you network in person or online in social media sites such as LinkedIn, be prepared to explain what your business is about and actively seek out connections that can help you grow.

You will find basic marketing information and guidance from the SBA (http://www.sba.gov/smallbusinessplanner/index.html) (click on “Manage Your Business” to link to articles under “Market and Pricing”).

Barbara Weltman, Guest Blogger
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Franchise: Purchase Factor #5

Continued, Top 5 Buying Factors when Purchasing a Franchise.

In previous posts we covered: Safety, Affordability, Success and Fitting Your Image. Now we end with #5, PRESTIGE!

For some people this is a big category and for others it is not. Some people could care less about what other people think about them and others it is a big factor. Others are easily influenced by what others think. This is what we call peer affirmation.

People seeking affirmation from their peers will talk to anyone about what they are thinking about and planning to do. If the others agree and go along with it, then they will keep moving forward. If not, then that business is most likely going to the wayside.

There are definitely some very “sexy”, “white-collar” franchises out there. We are always on the hunt for them, since they can be very affordable and can do quite well for the right people. However, they sell very quickly.

Some franchises do not look very prestigious from the outside. After investigating them and seeing the growth opportunities that can exist, they can become very prestigious.

Almost all clients who come to FranNet are thinking that they know the business that they want to buy. They will most always end up buying something totally different and one that they never even knew was out there. It still needs to meet their prestige factor though, whether the factor exists for them or not.

So, safety, affordability, success, fitting your image, and prestige are the top 5 buying factors of buying a franchise. All of them must be answered to your satisfaction to say yes to that business. Jot them down on a piece of paper and weigh them against the franchise(s) that you are researching. If you can come up with answers to all of them, you are most likely making a well-informed and educated decision.

Now that you are experts, go out there and do your research. More importantly go after your dream!

Jania Bailey, Guest Blogger
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Franchise: Purchase Factor #4

Continued, Top 5 Buying Factors when Purchasing a Franchise

Today, we will cover FITTING YOUR IMAGE.

Is the franchise you are researching fit your image and will you feel good about what you will be doing? Sometimes you need to slow down and ask yourself, will you be happy with the franchise? Only you can answer this question. If you are not sure about something, then make a list of questions and concerns and do some more research. If you come to the same conclusion that is not what you are looking for then move on to another franchise.

You definitely need to be happy with yourself and the franchise that you are considering, otherwise just the opposite will most likely happen. You will be doing things you do not want to do and therefore you will not do them and the business will suffer.

Do yourself a favor and ask yourself if you will be happy and do you have a good self-image of yourself in that franchise.

Jania Bailey, Guest Blogger
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Franchise: Purchase Factor #3

Continued, Top 5 Buying Factors when Purchasing a Franchise

Today, we will cover SUCCESS and FITTING YOUR IMAGE.

Most people get into franchising to be successful. They usually have a dream and are trying to fulfill that dream. Success is in the eyes of the beholder and it means different thing to different people.

In fact, according to the U.S. Department of Commerce, 95 percent of franchises are still in business after five years. Compare that to less than half of traditional start-ups are reportedly still in business five years later. Due to the high satisfaction ratings, it is not surprising that nearly two-thirds (65 percent) of the franchise owners said they would purchase the same franchise again.

As you can see, most feel that they are successful but you have to determine what success means to you. Your next step is determine the franchisees in the franchise that you are researching are achieving the goals that you would set for yourself and living the lifestyle that you would like to lead.

If you find that only the top franchisees are successful in your mind, then take the advice of putting the franchise to the side and start looking at others. Chances are you are not going to be the top franchisee in that system. I certainly hope you are, but it is better to be conservative and play it safe.

Remember, define success and make sure the franchisees are achieving the success that you have defined for yourself.

Jania Bailey, Guest Blogger
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Franchise: Purchase Factor #2

Top 5 Buying Factors when Purchasing a Franchise

Today we will cover AFFORDABILITY.

Having affordability listed as the second most import factor usually surprises people. Unfortunately, some people feel safe about the decision that they are making, but sadly they end up not being able to afford it. This is where your CPA comes in very handy. We usually use the typical rule of thumb that you should have 1/3 in liquid capital of the total amount of the franchise. You should also have some extra reserves just in case.

Here is an example. The average franchise according to the International Franchise Association costs approximately $150,000. Therefore the average person should have about $50,000 in liquid assets that they are willing to invest. Most people can get the financing for the remaining two-thirds from a SBA approved bank or other financing sources. There are many services available to roll over money from 401k’s and IRA’s to help with the expenses.

The number one reason that franchisees and business owners go out of business is lack of funds. Whether it is a Fortune 500 company or a brand new business, if you cannot pay your bills, then you are done. Do not over extend yourself financially. It is unfair to you and your family. If you take the rule of thumb into account above, you should be all right. But please, consult with your CPA or financial advisor so you can make an educated decision.

The other nice thing about purchasing a franchise is that there is no correlation between the cost of the franchise and how much you can make. Franchises range from approximately $20,000 to over $3 million. The ones that have the large price tags, have large price tags because they have a lot of build out expenses, needed working capital, equipment, etc. Just because they have the large upfront fees, does not mean that it is going to be more successful compared to one that does not. Some of the most successful franchises that I know of are in the $75,000 range or less.

Remember, do not overextend yourself financially and you do not have to spend a lot to make a lot.

Jania Bailey, Guest Blogger
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