Twitter Fest Friday
Welcome to the Halloween edition of Twitter Fest Friday! Today I asked three questions to the Twitter Followers all with a general theme of “challenge”. Since an overwhelming number of people list owning their own business as a life dream I was curious to know what holds them back, what challenges must be faced in order to achieve that dream, and how we go about assessing our weaknesses and fixing them. There was no surprise that money topped the list of challenges faced when starting a small business, and I’ll think you’ll see from the replies we all struggle with the same issues when starting out.
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Friday October 31, 2008
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For the biz owners in the group…what was your biggest obstacle to starting a business? or For would be business owners…what’s holding you back?
brooklynblondie: Marketing my company and funding my efforts!!!!
Betani: Re: starting business — Courage. It was hard to swallow my fear and set up shop
dallisonlee: The biggest obstacle was funding…followed by finding the right clients.http://www.dallisonlee.com/
makingthenews: Finance. Had to pay for website and equipment but with 3 kids (now 4) I had no savings so had to dig deep. A £1k grant helped.http://www.makingthenews.co.uk/-
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WayneLiew:Come think about it seriously, perhaps time and my current studies. I despise attending classes. LOL http://www.affboom.com/
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WhenIGroUpCoach: Money! Lots and lots of it. Stupid NYC and not wanting to live in a closet. http://whenigrowupcoach.com/
life_enthusiast:Biggest obstacle in starting biz was convincing Hubby that it was a worthwhile
ChrisFerdinandi: If you consider my blog a business (and I do), for me its just finding the time to develop it while keeping my day job. http://managerssandbox.com/
MarkRiffey: Obstacle: Inertia. Get off your duff and just do something.-
MarkRiffey: Not just complacent, but scared of that 1st step. Perry Marshall says “Lean into the fear” aka starting down a hill on skis http://www.rescuemarketing.com/blog/
designtwit: MY biggest obstacle to starting my business? Answer: myself. Layoff during last recession in ’99 made me. Thanks recession. http://www.fusionframes.com/
giazzpet: I’ve been with Market America 4 + yrs, and we’ve decided to just be sales reps Pt 1
giazzpet: @smallbizbee Pt2, now we are learning about getting into our own business by doing drop shipping, and I’m learning everyday about marketing
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giazzpet: @smallbizbee Pt3 however, I also want to launch a big idea (w/partner from South Africa) and need $$ to do so, so we still have FT jobs http://www.giazzworld.blogspot.com/
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RussellWhite: my biggest obstacle to starting my business was ME. Once I got my head and insecurities out of the way, I was home free. http://www.pinnaclesolutions.org/
James Wallace: that question baffles me SBB. At one point it was developing a complex web application that met the requirements of the vision. Like minds coming together is another rare occurance(sp?). Execution phase…time to market…continual improvements to keep ahead of the curve…(will be back with more). Thanks for the brain excercise though!!
Tom McFeeley: Getting over the fear of the unknown and realizing my success was directly tied to me, my drive, my confidence and that my services provide real and necessary value http://tommymac71.blogspot.com/
lawschoolexpert: biggest obstacle – convincing my husband ; ) http://lawschoolexpert.blogspot.com/What don’t you know, and how will you learn it?
caddyinfo: How will social media sites improve the integration and access of late adopters, low-tech-ers? Learn: analytics, anecdotal, ???-
caddyinfo: Each SM tries to be easy. But how does one who struggles to use any sm juggle 6? (I do) Will 1 SM be a gate keeper to my cust? http://www.caddyinfo.com/
KyleSC: I don’t know shopping carts well. Will learn by trial subscriptions http://www.virtualadminksc.com/
eclewis: didn’t know about marketing, am trying to learn by going to networking events, trying new things online, and asking people ?s http://www.eclewis.com/
Thanks to all who took part in this weeks Twitter Fest Friday! Have a safe and happy Halloween, we’ll see you next week.
How to Slay the Beast Procrastination!
We’ve all been there, you’ve got 1,000,000 things to get done and for some reason you just can’t bring yourself to accomplish one thing on your list. You make excuses, or just don’t get around to it, but whatever the reason for procrastination there is no doubt it can be the silent killer to a small business owner.
Andrew Drapper of www.success-matters.com shares with us his strategies to finally kill the beast of procrastination once and for all, and get you on the road to procrastination recovery.
How to Slay the Beast Procrastination!
By: Andrew Drapper
Procrastination is one of the most pernicious monsters of the business world; it crawls up and down the corridors of offices devouring success and achievement. It hides in files, and lurks in the backs of drawers. It loves the bottom of ‘to do lists’ and celebrates coffee breaks and smoking rooms, (well it did until they where made illegal, it now stands around outside in the new smoking shelters). Its favorite resting place is in pending trays. Pending trays on desks of managing director or in the post room, it makes no difference to him. Sitting there, cowering, and daring anyone to come near. Its nest is made of the tasks which, if only given sufficient attention, would not only transform the profitability of departments or businesses, but even whole economies.
So, who will slay this beast, who will free us from this dragon? I am sorry, but St George died with the era of chivalry, to which he and his like belonged. There is no knight in shining armour, this battle is yours, and it is mine. Each of us will have to face and defeat this dragon, this beast procrastination ourselves. However, if you are going to face a dragon, you better go prepared.
Why is procrastination so damaging?
Submitting to procrastination is much more harmful than just having your progress slowed down. Procrastination, if not slain will not only slow down your own work, but may also lead to some tasks being neglected or perhaps even overlooked permanently. Consider too it’s more hidden or subtle effects. Procrastination nearly always sows the seeds of guilt and stress, and even worse it clogs up your subconscious mind.
If you do not believe that you have sown guilt in your mind, just what do you think causes that hollow, sinking feeling or the flush that comes over you when you find that folder, or when someone asks about the progress of this or that task?
You may believe that, once procrastination is nesting snugly on top of one of your tasks, that you have put that job out of your mind, at least for the time being. Actually all you have done is just to park it in your subconscious. Here it will continually be taking up time and energy from active tasks, just like opening too many programmes on a computer and when you finish, just leaving it open. Soon your computers memory is getting clogged.
On top of this, bad working practices are being reinforced.
This situation is bad enough, but consider the knock on effect. Corporately this could be huge. Just picture a department with 1,000 people all adding their ineffectiveness to the corporate productivity. Much of the time this corporate procrastination will be exponential with the resulting delay and ineffectiveness snowballing out of all imagined proportion.
In business, whether working for yourself or within an organisation it is vital that we put to death the beast procrastination.
Why do we procrastinate?
If procrastination is so bad for us, if it will stifle our productivity, put strain on us emotionally and mentally, and if it is so deleterious to the health of our economy, why do we let procrastination into our lives?
I believe that if we were truthful with ourselves we have been lead into denying that WE have a problem with procrastination. Procrastination is a problem that others have. We may actually procrastinate, but we have it under control, the beast is caged.
In fact the truth is that we all suffer from procrastination to one degree or another. The question should not be ‘do we suffer from procrastination?’, but ‘do we have effective techniques to help us to overcome procrastination on a daily basis?’
Danger signs to look out for!
Do you have a task that is too big or daunting to tackle?
When a job is unpleasant we will often put it off until later. If it is too hard we may leave it until we have had more time to think about it, or until we have the energy to tackle it. This may in fact be a very sensible thing to do. A hard job, late one afternoon, may be more easily tackled when you are fresh in the morning. Sometimes after giving yourself time to think you may find a good way to solve a big problem. All too often though it is not just put off until the morning, but in the morning we put it off until we have some free time in the afternoon, and in the afternoon we put it off until next week. Then you know the beast of procrastination has cunningly sneaked up and attacked you.
It could be that we are scared of doing some task or of the consequences of an action we have to do, or maybe feel intimidated by the person we have to call. It could even be that the task we are procrastinating over is just uninteresting or tedious.
Another serious course of procrastination is when we have other jobs that we habitually or systematically give time to first. Some of you will have a printed or mental check list and each day or week you work your way through this list. If there are, and there nearly always are, too many items on this list the ones at the end of the list get left, day after week as each time you come back to work you start at the top of the list again.
So what can we do to overcome procrastination?
Defeating procrastination is easier than at first might be believed, but it will not roll over and die while you take a coffee break. To defeat procrastination you will need to take positive steps to cut this beast down to size and then to put it out of its misery.
How can we cut it down to size?
Many of us procrastinate because the task is too big or to hard to face, so cut it down. My family and I tend to live in large houses and cutting the lawns at one of them would take up to five and a half hours. I love mowing! The smell of cut grass and a petrol mower just epitomize summer to me, but I could not face over five hours of lawn mowing. I loved mowing our front lawn, and so that was where I used to start. Once that was looking good, it was not so hard to start on the next lawn, often I would spend three or more hours mowing out in the sun, but I had to break it down into smaller more manageable tasks to get started.
What ever your procrastination tasks, if it is too big to swallow in one go, cut it into smaller amounts. You can’t fit a whole box of chocolates into your mouth in one go, but over an evening, just one at a time and they are all gone, too soon.
If the task is very big and does not easily or obviously have a number of bite size steps to it, try to approximately halve the task. Then, if the first half is still more than you can face, halve it again. Keep repeating this process until you have one manageable task.
Suppose you have to plan the teaching that you are going to give over a two day conference. Fifteen hours of teaching is more than anyone can get their mind around. So cut it in half write on your to do list ‘Day One’ and ‘Day Two’.
If a whole day is too much, cut it in half again, under each day write ‘Morning’ and ‘Afternoon’.
Planning a mornings teaching is much more manageable, but we can go on, divide each morning and afternoon in two sessions. Start with ‘Session One’ and keep going until you reach ‘Session eight’.
Now planning a single training sessions is not very hard. You can always break this down if you want. Sometimes dividing it into just two is not the best option. Some things will naturally fit into three or more divisions. Use what fits best. If nothing fits go back to cutting it roughly in half.
We could divide the sessions into ‘Welcome’, ‘Introduction’, ‘Point one’, ‘Point two’, ‘Point three’, ‘Application’ and ‘Conclusion’.
So session one is now cut down into manageable chunks, and may even be complete. Now we work on session two.
When we have finished session two you will find that we have already finished the first morning!
Now we move on to the Afternoon, but… What will we do all afternoon?
Let’s break it down again: ‘Session Three’ and ‘Session four’, divide them into smaller sections and even as you are writing this you decide that session four needs to be different. Let’s give them time to work on something in groups. Gosh session four is gone in almost seconds and you know the subject for session three, it has to be the foundation for session four so now you will work on that.
By the time you have finished session three, not only do you find that the afternoon is finished, but the whole of the first day is done. Tomorrow you can start to work on day two. But already on the train home from work you are beginning to think about it. The freedom of the success of finishing Day one, the power of breaking it down into manageable bite size sections, has taken the fear away and will let your mind work on it without panicking, where as before it was so scary that you would not let your mind even think about it. So now by the time you get home you know that the last session of the day will have to be a conclusion and wrap up session and you want to open the day with the new product that you are launching in the spring and most of it is just falling together. But if it isn’t, you know how to cut it up into manageable sessions.
Give me five
Some jobs will never be fun. Some things you will hate however you cut them up, plan them out or dress them up. But no matter how bad the job, no matter how unpleasant the task, you can work on it for 5 minutes. For this you will need a timer with an alarm. You can use your watch or a kitchen timer, but it must count down with an alarm. If you are working in an office it must have a quiet alarm as it will be going off a lot. I use an alarm called ‘Cool Timer’ that is available as a free download and has a customizable alarm. You can get it from http://www.harmonyhollow.net/cool_timer.shtml.
Now, list your tasks on a piece of paper just as you might normally, but instead of putting one tick box at the end of the task, put five. Now set your timer for 5 minutes and start it counting down. You have five minutes to work on your first task. As soon as the alarm goes off, put a tick or a cross in the first box next to first task, straight away reset and restart the timer. Within 30 minutes you have made a start on each of six tasks.
You may at this point want to pop to the toilet, make a coffee or stretch your legs, but do not take more than five minutes! If you are working at a desk or on a computer it is a good idea to give your eyes some exercise too. Look out of the window or to something at as great a distance as you can and then back to something close to. Repeat this a few times.
Now straight back to the timer, but this time start it at 10 minutes. Work through your list of tasks as before. This time some of your tasks will be completed. Reward yourself by ticking the whole task out or by ticking all the boxes. When you have reached the bottom of the list again take a short break. And back to the timer. This time you may want to set it for 15 or 20 minutes. As the times get longer the list of tacks unfinished will shorten.
Working in this way has a number of advantages.
First it is a very powerful procrastination buster.
Secondly, it will often boost your productivity. You may think that working at tasks in such a fragmented way would disrupt the flow, and this may be true with some tasks. You be the judge of when to use it. However for most tasks it brings into play the great power of the deadline. The nearer you get to the alarm going off the faster you will work and the less likely you are to relax and take it easy for a moment or two, or three or…
Success Matters in your work, life and leisure. May God richly bless you.
Andrew Drapper
Andrew Drapper lives in the south of England, is married to Ruth, and has eleven children. He has been involved in motivational speaking and small business training for many years. He is the author of Five Steps to Success, now available as an e-course from his web site www.success-matters.com.
He is dyslexic and left school unable to read or write. He has a profound belief that we all have the seeds of greatness within us and that a poor education system, that does not recognize or build the business skills that many non-readers have, is wasting their talent and condemning many great people to a life of poverty and mediocrity. He wrote his book Five Steps to Success not for people who can’t read, but who don’t read. “Most success books are 800 pages of black type on white paper”, he says, “but my book is 61 pages packed with illustrations, but probably contains more practical, usable tools, than most success books.”
Can Your Business Compete?
I get asked quite often if I have any tips for small businesses to get a leg up on their competition. A lot of small business owners feel like they are just getting the leftovers from the competition, and not actually eating into their market share. My answer is always the same…It should come as no surprise that business is a competition. Even if you don’t feel it on a daily basis, or think that you are competing, you are!
Really there are only five main ways your business can compete. Be the best at one of them and you’ll make money, be the best at all of them and you can grow your business beyond your wildest dreams.
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Price
If you are the low cost provider, you will get business. Keep in mind I am not talking about what your profit will be, but you will have people coming through the door to buy your products and service. Figure out a way to be the low cost provider, and make a reasonable profit and you got it made.
Quality
High quality sells itself. People will seek you out for a quality product, and word will spread that you provide the highest quality. The good news here is that you will be able to sell your product/service at a premium to your competitors. Think Ford Escort or BMW, both are cars but one fetches a much higher price due to quality.
Service
Providing the highest quality customer service and a first rate customer experience will make you the provider of choice for the consumers you target. Nothing spreads word of mouth quicker than great service.
Location
Sometimes just being in the right place, with the right product, is enough to beat the competition. If you’re selling ice cream on the boardwalk in San Diego you’ll have a leg up on the competition selling the same ice cream in downtown. Location is important when buying real estate, and should be as important when you think about where to locate your business. The closer to your target market the better.
Timeliness
Be a first mover to capture the lion’s share of profits. Also, giving your customers what they want, when they want it will help your business squeeze competitors from the marketplace. Remember, people don’t want to wait, if you don’t have it and your competitor does they will get the business.
Which area is your business competing most effectively?
Your Mission Statement – Use it or Lose It!
Last Friday we published an article on how to write a mission statement, and as with all the blog posts here at Smallbizbee.com we tweeted it out to our followers on Twitter. Within minutes Darrin Dickey of www.a-startup-guy.com connected with me and expressed his views of the importance of not only writing a mission statement, but also USING it! I agreed that a mission statement is a “use it or lose it” type of document, and if you aren’t going to live your mission you’re actually doing your business a disservice by publishing one, so I invited Darrin to follow up my article with a post on the importance of using your mission statement once it’s written, and below are Darrin’s thoughts on the matter.
This also serves as a good example of how we can leverage those online social networks as the whole exchange between myself and Darrin took about 20 minutes, but now we have another great article to share with you all.
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By: Darrin Dickey
On Friday, Matt wrote a really good article on SmallBizBee.com titled “7 Steps to Writing a Killer Mission Statement.” In it were some great tips on creating a mission statement that will serve and guide your business for years to come. I commented via Twitter that it’s also important that companies actually USE their mission statement. Matt agreed and invited me to write a post about that thought, so here goes.
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It seems like so many companies create a mission statement because they feel they should or have to, but then it gets relegated to a pretty plaque on the wall or words posted on the corporate website. They fail to carry out the most important part of a mission statement – live it! The mission statement actually has a purpose. It states your mission, your company’s very purpose for being. It says, “This is who we will be and why we exist.” Notice, I didn’t say “who we want to be.” These aren’t suggestions or things to do if it’s convenient
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One of the most important lessons I’ve learned is that success comes from focus and your mission statement is the lens you use to help refine your focus. Everything you do should pass through the lens of your mission statement. If what you’re considering doesn’t fit the mission, discard it or refine your mission.
Example
Let’s look at an example from Matt’s article.
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Starbucks Mission Statement:
Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.
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Starbucks has been incredibly successful following this mission. I’m sure Howard Schulz never imagined in his wildest dreams the success his company would have. However, it hasn’t been all wine and roses for Starbucks. They’ve stumbled a few times and frequently its because they stray from this mission. Starbuck’s Hear Music label is a good example. It doesn’t fit into their mission. It has distracted them from pushing forward with their mission and their coffee business has suffered. Earlier this year, Starbucks finally refocused on their core mission and rolled back the Hear Music label as well as the music offerings in their stores. (They haven’t given up on it, so maybe they haven’t completely learned their lesson.)
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Starbucks needs to either:
* quit the music business altogether,
* revise their mission statement to include “…the finest coffee in the world and products that promote the coffee house environment…” (or something to that effect),
* or they need to spin the Hear Music label off as a separate business.
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I would recommend #1 or #3. Option #2 dilutes their brand and focus, if done incorrectly.
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I’ve been fortunate enough to work in a business where this idea was instituted very well and I’ve never been able to look at the corporate mission statement the same since. Business ideas were only fleshed out and evaluated after they had first passed through the lens of our mission statement. If an idea couldn’t align with our mission, it was discarded; no matter how promising it seemed. There was already enough to do within the confines of our mission to keep us busy and profitable for years. If you wanted to chase after an idea that wasn’t aligned with our mission, you were more than welcome to do it on your own.
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Your mission statement is more than a slogan or platitude. A good mission statement is a tool that helps keep your team focused and on track. Define a great mission statement and use it. Or don’t even bother writing one.
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Darrin Dickey is crazy about startups, entrepreneurism, marketing, history and all things digital. For more than a decade, he’s been involved in marketing in one form or another for companies ranging from small mom-and-pop shops to Fortune 100 companies. He currently does graphic design and web development for a major wellness company. In his “spare” time, he looks for great startups to get involved with and runs a directory of US historic sites at www.Pastigo.com. You can also check out his brand new (barely out of the gates) blog at www.a-startup-guy.com where you can read his nuggets of wisdom (and then throw rotten tomatoes at them).
Launching Your Startup – Social Media
We’ve recently talked a bit about physical and virtual social networks, and their importance on growing and leveraging the resources available to your small business. The following 7:00 minute video from www.podango.com is a panel discussion on incorporating social media into your business, and explores strategies to best use social media with your small business or startup. There is a wealth of possibilities with social media, and proper use of social media can jump start you on the road to success. The question is what is YOUR business doing to be on the forefront of this exciting media opportunity? Hopefully this video at least gets you thinking about a social media strategy for your business, if you haven’t been already.
7 Steps to Writing a Killer Mission Statement
Every organization whether it be a Fortune 500 company, or a sole proprietor, should have a mission statement. A mission statement defines your reason for being in business. It should encompass your core business objectives, the values of your organization, and your purpose. Below are some tips and examples to help you write a winning mission statement.
Tips
- A good way to start is by answering the question “Why am I in business?” or “What purpose does my business serve?” The answer to this will go a long way in writing your mission, and should be more than “To make money”. Making money will be a byproduct of your business operations aligning with your mission.
- Keep it short and sweet. By keeping to a succinct format you will force yourself to put in your mission statement on those things that truly matter to your business. Five to seven sentences should be the maximum.
- Ask yourself what values you and your organization have, and how are they integrated into your work. Are you a company that prides itself in being eco-friendly? Perhaps faith plays a big part in your value system? The dovetailing of your purpose and your values will create a much stronger mission statement.
- Keep in mind you are writing this not only for yourself, but your employees and your customers. If part of your mission statement is to treat every customer like they were the first customer, then you should make sure your mission is shared with your customers in some way. Likewise for any mention to how your company values it’s employees, all of your employees should see and know your mission statement.
- Use the “Front page of the newspaper” rule. Whatever you put in your mission statement you should believe in enough to have it printed on the front page of the newspaper, and be proud of it.
- A mission statement is no place for slang or jargon, keep it business professional.
- Lastly, write a mission statement that really resonates with you and your employees. Don’t just write words on a paper that sound good in a sentence. Your mission statement are the rules, beliefs, and attitudes that you will live by on a daily basis, so make it genuine.
Keep In Mind:
- Your mission statement is setting the long term objectives and strategies that will guide your business for many years to come. You should write your mission statement in such a way it will not have to be revised for quite some time.
- Be sure to share your mission statement with key stakeholders. This could be employees, customers, vendors, suppliers, or anyone you do business with. Get their feedback and adjust as necessary.
- To be really effective your mission statement should be woven into your corporate culture. Everywhere you go, and anyone your company touches, should see and feel your mission in action.
Examples:
Notice how simple some of these are, but how they completely address why these companies are in business, and set the standards for which they will be held. Coca-Cola Company: “Everything we do is inspired by our enduring mission:
- To Refresh the World… in body, mind, and spirit.
- To Inspire Moments of Optimism… through our brands and our actions.
- To Create Value and Make a Difference… everywhere we engage.”
Starbucks: Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.
Nike: “To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete.”
Apple: Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.
Ben & Jerry’s
| Product Mission To make, distribute & sell the finest quality all natural ice cream & euphoric concoctions with a continued commitment to incorporating wholesome, natural ingredients and promoting business practices that respect the Earth and the Environment. | Economic Mission To operate the Company on a sustainable financial basis of profitable growth, increasing value for our stakeholders & expanding opportunities for development and career growth for our employees. | Social Mission To operate the company in a way that actively recognizes the central role that business plays in society by initiating innovative ways to improve the quality of life locally, nationally & internationally. |
Minority Owned Small Business By the Numbers
The Overall Picture
- Minorities own 15.1% of all businesses in the United States
- More minority business enterprises are being created at every level, from small/micro
operations to rapidly growing technology companies. According to this report, State of Minority
Business Enterprises: An Overview of the 2002 Survey of Business Owners, minority-owned
firms generated over $668 billion in annual sales, and employed about 4.7 million people in
2002.
- Businesses grossing over $500,000 annually in sales represented 75 percent of all minority
annual gross receipts and 73 percent of all employees in the minority business community.
- Using a proxy for measuring minority business growth, Black-owned firms had the highest growth rate for several measures between 1997-2002
Source: State of Minority Business Report 2002
Where are Minority Owned Businesses Located?
- 57% of all minority businesses in the nation resided in California, Texas, New York, and Florida in 2002
- Fastest growth in number of minority owned firms occurred in Nevada, Georgia, New York, Florida, and Minnesota between 1997-2002
Minority Owned Business % of Firms Owned By:
Hispanic: 40.2%
Asian: 28.1%
Black: 28%
American Indian: 6.7%
Source: SBA, "Dynamics of Minority-Owned Employer Establishments, 1999-2001," February 2005
Four Year Survival Rates:
Sources of Capital (click for larger)
How to Be a Successful Franchisee
As a follow up to a recent article we ran, Is a Small Business Franchise the Answer?, Sebastien Page of WorldFranchising.com submitted this guest post on steps you can take to ensure your small business franchise is successful.
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By: Sebastian Page
A franchise can be a good option if you are thinking about starting your own business. Franchises are considerably less likely to fail than independent businesses because they benefit from name recognition and a proven business model. But if you are thinking about buying a franchise, remember that it is not foolproof. There are things you will have to do to be a successful franchisee.
The most important step to being successful in buying a franchise happens before you even purchase the franchise. This stage involves a great deal of self-assessment. First, you need to figure out if buying any franchise is right for you at all. Franchises are less risky than independent businesses, but they also require you to follow rules and run your business within certain parameters. You will be your own boss, but you also have to answer to the franchisor, and follow their rules. Furthermore, do some self-assessment to figure out what kind of franchise you want. You need to pick a franchise concept that you can believe in. If you cannot commit to the product or service your franchise offers, you will not be as successful.
Once you have bought the franchise, there is more work to be done. Stay organized, keep within the parameters of the franchisor, and communicate with them if there are any problems. Remember, if you become a franchisee, you may have to deal with things like hiring and training employees, buying supplies, and working long hours. If you are not committed to doing these things when you purchase your franchise, you are unlikely to be as successful.
Even if you pick a franchise you really believe in, follow all the rules, and work hard, there are still some things that can cause a franchise to fail that would be completely out of your control. Even if your franchise is successful, if your franchisor runs into trouble, you could be in trouble too. Franchisors can have financial difficulty for a variety of reasons.
If the franchisor is relatively new to franchising their company and doesn’t have a track record of franchised businesses, they might have a flawed franchise structure. To avoid this affecting you, as a franchisee, look for franchisors that have been franchising for a long time or at least make sure that they have done sufficient testing so that you can be sure that their model is sound.
Another thing that could cause problems for your franchisor is poor performance on the part of other franchisees. Even if you are working hard and are successful at your franchise, your fellow franchisees may not be so lucky, or may not be doing a good job, which can put the franchisor in financial difficulty. A franchisor should have a rigorous selection process to avoid acquiring franchisees who are not very competent. If it seems too easy to sign up for a franchise with a company, consider avoiding that company – their other franchisees could be a big problem for them and for you.
Sebastien Page is Vice-President of Marketing for WorldFranchising.com, a website that provides franchise opportunities information to potential franchise buyers.
The Insider Truth About Terminal Leases
You all know from my rant a few weeks back that one of my big pet peeves in business is when a merchant makes it difficult to pay them.
As small business owners we recognize the need to make the payment process easy, and being able to accept many forms of payment is critical. That usually means not only accepting cash and checks, but credit cards from your customers as well. Finding the right credit card terminal to accept credit can be a daunting task, especially since that process usually falls outside our areas of expertise. There seems to be an endless myriad of plans, programs, and processing solutions, and picking the right one is like a crap shoot for most of us. In our euphoria to give the customer what they want, it is common for small business owners to jump at the first deal we see to get our credit card terminals setup.
Michael Guerin, President of Automated Merchant Processing, LLC submitted this post to help us avoid what he calls “the biggest rip-off in merchant account services”
By: Michael Guerin
In my opinion, there is no bigger rip-off in merchant account services than the credit card terminal lease.
So what’s the catch?
Well, for starters, you can’t cancel them. At least, not until 48 months have passed since signing on the dotted line. And then when you’re finally able to cancel, provided you remember to call up the company to stop your monthly payments, nine times out of ten they’ll ask for the credit card terminal back.
Which means… you’re right back at square one, needing a credit card terminal. Again. And wasn’t that the problem when you signed up for the lease in the first place?
So what can you do?
Three Reasons Owners Sign a Lease
To understand why do many business owners choose to sign up for a lease, rather than buying the equipment, there are three key points.
First, the majority are opening their first business, or are accepting credit cards for the first time. Their concern, understandably, is to get up and running as quickly as possible. The focus is on the grand opening.
Or if they’re already in business, getting set up like yesterday because, more likely than not, they’re responding to customers asking (begging?) them to accept credit cards.
So time is usually a critical factor. And this means NOT looking at or asking about the finer points of these contracts.
The next reason why business owners fall for the “lease trap” is the failure to realize that accepting credit cards is much more complicated than they initially thought.
In fact, I hear this one all the time.
Let’s be honest with ourselves for a moment here – how many of us read the fine print of service agreements or contracts? Very few people, in my experience, will pour over tiny fine print covering 4, 5 or 6 pages of legal-speak.
And most sales reps know this.
Their goal is to get you to sign on the dotted line. It’s is NOT to educate you, to explain all the finer points of the agreement or contract (heck, many of them don’t even know all the details). So no one mentions that the lease is non-cancelable.
Or that, in the long run, it will cost you WAY more than the credit card terminal is worth.
And that bring us to the third reason, which we’ll discuss below. This point involves the “psychology of pricing.” What sounds like or seems like a better deal to you, $700 out of your pocket right now, or $39 a month?
If you’re like most people, the second price point SEEMS like a better deal. Hey, it even looks better on paper. Which is why we’ll discuss…
The True Cost of Credit Card Terminals
Lease programs are sold by hiding the true cost to the business owner. Though they are disguised as a payment plan (the QVC effect), they are NOT a payment plan.
So how does this work?
The first step is to over inflate the price of a credit card terminal. Often the cost is disclosed as $500, $600 or more. And so, the pitch is…
“why pay $500 out of pocket, when you can lease a terminal for $35 a month?”
The key is to focus your attention on the “low” monthly fees. Along with the “no out of pocket expenses” line.
But in reality, most credit card terminals will wholesale for around $200. And if you still don’t want to put up any money for “your own” terminal, lots of providers have free equipment programs.
So do a little research. Ask for references. Know which questions to ask. It will save you in the long run.
How much? Well, here’s a real example:
A client of mine was paying a lease at $49 for 48 months. That comes out to $2352 over 4 years, or $588 per year. When he switched over to me, he still had a year to go, so we reprogrammed his terminal. By the way, he had the Nurit 2085. Go look it up online to find out what it really costs. And if you don’t want to, follow the link above.
After his 48 months expired, he called them to cancel the payments. And they said “ship it back to us.” Now, he thought that those 48 months of paying meant he owned it. No such luck. So he boxed it up and mailed it back.
And I replaced it for free.
Bottom line, not all companies are the same. And there’s more to accepting credit cards at your business than most people know.
Or want to know.
Michael Guerin is President of Automated Merchant Processing, LLC, a merchant services firm helping business owners, entrepreneurs and online merchants get better service while saving money on their credit card processing.
In addition to working with clients, he’s authored two e-books which can be found on the AMP site: “The Merchant Account Survival Guide,” and “Gift Card Marketing Secrets.” Both books include tips, strategies and “insider secrets” designed to help business owners “amp their cash flow.”
When not working on his business, Michael spends time with his wife of nine years, Rumpa, and their two children Adam and Amy.



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