Archive for Home Business Tips
Exuberance Can Kill Your Home Based Business
Posted by: | Comments
I was listening to the news today about Ireland being bailed out by the European Union and the International Monetary Fund. It struck me that this event has a lesson for home based businesses.
Ireland has been flying high economically. It’s land prices were jumping. It’s banks were lending money wildly. Companies were building factories and warehouses. All the economic indicators were headed up.
Everyone was dancing in the streets. There was no end in sight.
Then came the world wide economic crisis. Land prices crashed. Factories closed. The banks were left with loans that were shaky or even no good. The bubble had burst.
Suddenly, the government was meeting in emergency session and dark clouds were everywhere. The result? Ireland went with hat in hand to the European Union looking for a bailout. The good times that could never end …….. had suddenly ended.
I live in Las Vegas. We saw something similar here. Massive building everywhere. Multi-billion dollar hotel/casinos. Shopping centers and industrial parks. New houses everywhere.
And then the crash.
Now there are unfinished billion dollar projects. Vacant shopping centers. Empty homes. The idea of "build it and they will come" had crashed in flames.
So how does this relate to your home based business? There are two ways.
First ….. you can get comfort from knowing a whole lot of very smart people didn’t see the meltdown coming. And if you didn’t see it either, you can know you weren’t alone.
Second …. is a reminder that life has cycles. Nothing lasts forever. Good times are fun. It’s wonderful to celebrate and enjoy the fruits of your efforts, but you also need to be prepared for when the winds change.
Remember, Ireland may get bailed out by the EU and the IMF, but you and I have to be prepared to bail ourselves out. Our home based businesses depend on us.
A Little at a Time Brings Success to Your Home Based Business
Posted by: | Comments
Bill Walsh was a long time National Football League coach. His philosophy for his offense has an important lesson for your home based business.
Have you seen the movie Blindside? I haven’t yet, but I’m reading the book. I’m at the part that talks about Bill Walsh’s game plan for his passing offensive. Most teams like to go for the long pass. It creates excitement and gains yardage quickly. The short pass is used to set up the long pass or to save the quarterback from getting tackled.
Walsh took a different approach. Long passes may be exciting, but they’re harder to complete than a short pass. There’s also more chance for an interception, and while the quarterback is waiting for his player to get down field, he’s more likely to get tackled and possibly hurt. Walsh preferred going for lots of short passes and once in a while going for the long bomb.
And the result? ….. Many more completed passes. Long steady marches down the field. Many winning seasons. He was willing to trade the flash for the win.
How does this apply to your home based business?
Too often there’s a desire to go for the big success. The big win. Maybe that means getting a HUGE sale. Or it could be a one time splash in your local newspaper. It feels really good. But when you sit back and reflect, how much further has it gotten you to your vision? And how many things didn’t work out?
What would happen if you had lots of smaller successes? Each one would move you closer and closer to your dream. Slow and steady instead of flash and crash. Yeah, I know. This sounds like the story of the Tortoise and the Hare. The message was true in the fable and it was true for Bill Walsh. It’s also true for your home based business.
Take baby steps with lots of success and you’re get where you want to go. Or you can focus on "the big play" and find yourself with an incomplete pass. It’s your choice. Flash or success.
Costs for Your Home Based Business can Easily Get Out of Hand
Posted by: | Comments
There are only two ways a home based business can increase it’s bottom line: increase it’s the sales or decrease the expenses. Too often, the business owner is focused only on increasing sales.
Hey, it’s much more exciting to get a new customer or have an existing customer buy more, than to spend time going over your bills to see what you can cut. I get it.
But, as hard as we work to get more business, it’s silly to see that money wasted on costs.
It’s true that most of us are cautious when we first incur an ongoing expense. We look for the best possible price before buying. The problem is that over time, it’s easy to ignore watching to make sure the costs are still the best available.
Here’s a real life example: this past year we go a slight increase in our auto insurance. We’d been with the same broker for many years and never questioned the bill. This time we decided to check around.
What did we find? Yup, you guessed. We found better coverage for less. Lots less. So much that we decided to shop our homeowner’s policy too. (We had that coverage with the same agent that had our car.)
By now, you’re probably not surprised to learn that we were paying too much there too. Combined, we saved over $1,000 per year and had better coverage.
Here’s the rule: to maximize the profits in your home based business, you need to review your costs at least once a year. That doesn’t mean you need to leave your current supplier. But you do need to go through the conscientious review you did when you first bought the product or service. And no, the lowest price is not always the best, but you need to be able to make an informed choice.
Taking Short Cuts in Your Home Based Business
Posted by: | CommentsDocumentation.
Paperwork.
Policies.
Procedures.
Do those words make you cringe?
That’s the effect they have on lots of home business owners. You got into business to do what you’re good at, right? And that’s usually delivering a product or service.
But don’t take any shortcuts when it comes to doing the paperwork or you could be creating a future problem you don’t really want to have to face.
There are several problems with not doing the paperwork, many of which you probably already know. Here’s one you many not have thought of:
What happens if you’re sick for a while and your spouse or someone else needs to run your business?
Without having written instructions, how will they know what to do? Who do they need to contact? Are there things that need to get done on a specific day? How do they process your credit cards?
It may not be a fun part of your business, but it’s an important part.
This doesn’t have to be anything fancy. Just create some written instructions of the things that need to happen to keep your home business running if you happen to incapacitated. And be sure you update any instructions when something changes.
Home Business Board of Advisors
Posted by: | CommentsI’m teaching a class called "Small Business Success" at a virtual school I’m associated with. During our conversation this week, we discussed some of the challenges facing smaller businesses.
One of those was that management is usually the responsibility of one or two people, not a large contingent of vice presidents and others. There’s also no Board of Directors to work on strategic planning and other issues.
During the conversation, I suggested something I’ve seen at many smaller companies and that’s a Board of Advisors.
This is a group of people who simply advise the owner. They have no fiduciary responsibility and don’t need to be identified to the outside world.
Who you ask to join your board is completely up to you. There are no requirements other than the ones you set. You can meet as often as you like and people stay on the board as long as they want to and/or as long as you want them to.
So how do you use them?
That depends on who you choose and how much information about the company you’re willing to share with them. You choose the topics of conversation and they might include things like:
- Strategic planning
- How to deal with threats
- Should you expand your product line
- etc.
Some people will pay their board members some small amount or simply take them out for dinner at a nice restaurant where you can talk.
Some possible members are your:
- Accountant
- Attorney
- Insurance broker
- Other business owners.
My one word of caution is don’t choose people who will tell you what you want to hear. Get people who will challenge you and push back.
Home Business Joint Ventures
Posted by: | CommentsThere’s a saying, "If it’s meant to be, it’s up to me." Self reliance and accepting responsibility are good things, but not when they end up creating obstacles to getting something done. Too often homeprenueurs think that everything that needs to be done, needs to be done by them. Outsourcing and delegating are valuable resources. Another is a joint venture.
The concept of a joint venture is that two or more people or organizations have bring something to the table that allows a project to be completed quicker or more easily than if each did it on their own.
For example, lets say I want to put on a seminar. I have great material and I know I can be effective in the front of a room. The problem is that I don’t have a mailing list of qualified people who would be interested in my topic. If I want to do this on my own, I can spend lots of resources developing my list. I could also hire a salesperson to enroll participants. Both of those will take some time and may require resources that I don’t have or would be better used some other way.
Instead of doing is all myself, I could find someone who already has a strong mailing list and joint venture with them. They send a mailing to their dababase and I offer to split the seminar fees with them. It’s a win/win. I fill my seats, and they get some income.
Some things to consider before joint venturing: What is expected from each person? How will expenses be paid? How will profits be split? How will each of you be held accountable to do what you commit to? Is what the other person bringing truly valuable enough and is it the right resource? And finally, is the other person someone you want your name associated with?
A couple years ago, we thought about doing a joint venture with someone who has a 20,000 person mailing list. He would send a mailing endorsing us and telling people to attend our seminar. We planned to split the fee. Before we got very far, we asked him about how many people open his emails. When he proudly said, "about 2000," we withdrew our offer. Because he didn’t have an opt in list, we saw his list as 2000, not 20,000. Big difference.
Joint ventures can be a great way to leverage your resources and that may be just the edge you need to be successful.
Big Ego vs Strong Ego and Your Home Business Success
Posted by: | CommentsThere are many characteristics of a successful homepreneur.
One of those is a strong sense of self confidence, a strong ego, for instance.
Belief in yourself can make the difference between taking action or getting stuck in indecision. Having a strong ego is also demonstrated by how you come across to people.
People trust people who are confident about themselves and their product or service. Can you see yourself choosing to have surgery from a doctor who waffled and said they might feel comfortable doing your procedure? I know I couldn’t. I want a doctor who projects a strong sense of confidence.
And yet there’s a line where a strong ego becomes a big ego. That’s what we call "arrogance". The person is no longer confident, they are over-confident, or a blow-hard, or a …… well, you can fill in the blank. Their sense of themselves makes us want to run away instead of being attracted to them.
The person who has a big ego is never to blame for anything. It’s always someone else’s fault. However, when something goes well, they are at the front of the line to claim the credit. All of the credit.
As you build your business, if you come across someone like this, we strongly encourage you to find someone else to work with, whether this is a customer, supplier, or vendor.
And if think you might be coming across this way, check with the people you trust. If they confirm it, change your ways.
Netiquette Tips for Homepreneurs – Part 2
Posted by: | CommentsIn my last post I gave you the first 10 of the 22 Rules for using email. Of course, you only need to follow them if you want your email messages to be read.
Here are the final 12 of the email rules you need to know:
11. Don’t Send Attachments Whenever Possible
There are so many versions of common computer programs and not everybody is literate with computers. Attachments can be challenging just in getting them open and can spread viruses. There is also a likelihood the files will become corrupted in transit and be unusable anyway. Whenever possible, send information in the body of the email.
12. Don’t Use Special Graphics Or Formatting
Not all email users have the ability to see what you’ve created. Using a color for your text other than black can also make your message difficult to read. There are people who are color blind and colors show differently on different monitors. Black on white is absolutely the easiest to read. Graphics can also slow down the sending and receiving process.
13. Don’t Use Background Color Or Images
Like graphics and special formatting, while they might make your email look pretty, what it really does is make it more difficult for your readers to read your message. the ABSOLUTE EASIEST text for people to read is black on white, using upper and lower cases appropriately.
14. Eliminate What Comes After Your Response
Unless necessary to your response, delete old messages and signatures from the email you send. It makes your response cleaner and faster to send and receive.
15. Check Your Spelling
Nothing can block an easy read like misspelled words. Use your spell checker and have a dictionary handy.
16. Learn Your Grammar
English teachers probably cringe with emails. Learn at least the basics so your message flows.
17. Don’t Send Spam
Spam is considered to be anything sent that’s unsolicited. No doubt you’ve been a victim of it. Don’t become and abuser.
18. Acknowledge Receipt Of Email
Return Receipt is not reliable. Many people choose not to notify the sender. It can also be an annoyance to the receiver of your message when the Return Receipt window pops up. Be considerate to your sender and if a response is indicated or seemingly expected, respond.
19. Be Careful What You Say
While email feels light, easy, and informal, it’s permanent. Your email can be printed, circulated, shared, forwarded, …. Make sure what you write is not something you don’t want made public.
20. Ignore Chain Mail, Jokes, and Petitions
Often these are hoaxes. Even if they’re not, most people don’t like receiving them. Don’t forward them unless they seem relevant and then be sure it’s relevant to the people you forward to. If you do choose to forward one of these items, check it out first on Truth or Fiction or Urban Legends.
21. Respond Timely
While immediate response is unrealistic, make a policy to respond to emails within a specific amount of time and let your customers, clients, friends, and family know what that is. Don’t become a slave to your computer by thinking you have to respond sooner than is comfortable for you.
22. First Impressions Are Everything…And You Only Get One Chance
You will be judged by the quality of your writing. If it doesn’t matter to you, don’t change a thing. If you want to be taken seriously, pay attention and take the extra 30-seconds to make sure your email presents the image of you and/or your company you want it to. are the final 12 of the rules you need to know.
Netiquette Tips for Homepreneurs – Part 1
Posted by: | CommentsBecoming a Savvy Email User
Email is more and more becoming the accepted form of communication in business and in our personal lives. It’s a wonderfully convenient way for people to keep in touch. However, the drawbacks are great and can be very annoying.
When somebody sends an email, there’s now an expectation that it be answered almost instantaneously. We’re moving more and more into instant gratification and this is not good for stress reduction.
As a group, we have also moved away from writing notes and letters so our writing skills are not polished. People are lazy in their writing of email thinking the informality lets them off the hook when it comes to form, grammar, and spelling. Not true! It’s probably more important now than ever to be clear, concise, and precise in our written communication. Once you hit the send button it’s too late.
The goal of being a savvy email user is to make it easy for your reader(s) to read and respond to your message. You’ve been on the receiving end of emails that didn’t make it easy and you know what annoys you. If that’s true, you can bet the same thing annoys a lot of other people.
Here are the first 10 of the Top Twenty-Two Rules For the Savvy Email User:
1. Don’t Use All CAPS
This is difficult to read. We are conditioned to upper and lower case letters and the flow of our reading is slowed when reading text in all CAPS. And, by email standards, using all CAPS is the equivalent of shouting at the top of your lungs.
2. Don’t Use All Small Letters
Similar to all CAPS, our conditioning for reading includes both upper and lower case letters. Further, it’s bad form to eliminate the capital letters that begin sentences and proper nouns.
3. Identify Yourself As The Sender
We’re all getting spammed with unwanted and unsolicited email. It’s become more and more the practice for people to automatically trash emails when they don’t recognize the sender’s name. Your email address is not enough. Not everybody knows you by your email address.
4. State Your Topic
Don’t keep your recipient guessing about why you’re sending them mail. Be concise in your description and ALWAYS fill in the subject line before sending so your receiver has some idea of what your email’s about. Keep it short, 35 characters.
5. Use The K.I.SS. Principle — Keep It Simple
In our hurry up world, people aren’t interested in reading long emails. Ideally, you want your email to fill no more than one screen.
6. Make Longer Emails "Chunky"
When a longer email is required, break it into separate, shorter paragraphs. People are daunted by screens full of solid text. White space makes it easier for people to get through.
7. Keep Your Body Text Lines Short
Bearing in mind all the differences there are in the email programs people use, we want to play to the lowest common denominator of your readers. That just means that you want to be sure your email is easy to read. It’s hard for people to read very long lines of text so you want to be sure what they see on their computer monitor is short lines. To that end, make sure you make your body text lines are no longer than 55-60 characters. That means using hard returns to go to the next line.
8. Use The BCC Option When Sending A Message To Multiple People
It’s a matter of having a clean email and of protecting the privacy of the recipients. If you don’t use the BCC option, all recipients addresses are visible to all the rest and, besides having to scroll through them to get to the message, it makes the addresses available to other recipients for potential spam and unsolicited emails.
9. Get Rid Of The Trash When Forwarding Emails
When you forward messages, something we do often, get rid of all that comes before the information you want to pass on. If you been on the receiving end of an email that’s been forwarded multiple times, you know how annoying it can be to have to scroll through all the garbage. Don’t make your recipients have to do it.
10. Respond To Messages So Your Response Can Be Easily Read
Don’t scroll to the bottom of a page and type your response there. The person waiting for your answer already knows the questions. Respond either at the top of the email, before the original message, or within the body of the original message by setting your response off from the body with symbols and/or spaces.
In my next post I will give you the final 12 rules…