Well, I’ll be a monkey’s uncle! Never in my dreams did I figure a tough street girl from Hell’s Kitchen (HK) would end up living a dream life with financial freedom. Growing up in crime wonderland never afforded me anything monetarily, but gave me something much more valuable, the greatest entrepreneurial gift – a burning desire to make my life better.
I had little supervision as a child, as was the same for many of my peers. We were left to our own devices most of the time. For the most part this was great fun as we pulled pranks on strangers and played in open fire hydrants on hot summer days. On the flip side, our lack of supervision offered great opportunity in gangland. I had a few boneheaded friends who succumbed to this temptation and some lost their lives before the age of 20.
I have always loved dogs and find them to be the most optimistic creatures on earth. There were plenty of dogs that had it rough in HK, but they would always greet me with a wag of excitement in spi...
Creating a recognizable brand should be a top priority of any business, no matter your size or budget. The branding of your business will either attract customers or it will drive them away. It's that simple. Branding should be one of the very first considerations of a new (or existing) enterprise - yet it is shocking how little many entrepreneurs focus on the branding of their company and their products or services.
Nothing screams "small time"to me more than a business owner who hands me their business card which has neither a website to reference nor, more frequently, an email address tied to their domain name.
A serious entrepreneur should never have an email address that is tied to Gmail, Yahoo, Hotmail or any one of the litany of free email accounts. I personally do not like to send or answer emails to these free email sites due to the obvious ease into which they can get hacked! (See the John Podesta hacked emails...)
In a family of 12 children, my father, the oldest of six boys, was told at the age of 14 he was old enough to be on his own. He found a garage apartment and began working as a mechanic. He worked to learn the business then opened his own shop in El Campo, Texas at the age of 17. Shortly after, he met my mother and married her two years later. I was the oldest of four girls and had an older brother.
My mom worked in the family business too by keeping the books and handling the administrative duties. After preparing all of our meals each day and getting us off on the bus to school, my mom and my baby sister (who was not yet in school) would leave with my dad for the shop. By the time we arrived home from school, my mom was always there to greet us. On weekends, after chores at home were done, all of us would often head to my dad’s shop to help him. This is where I learned a little about cars. I learned how check the oil, change the oil, spark plugs and basic engine operati...
Remember this always - "Entrepreneurs bring value to an idea."
One of the most common types of startup businesses is when someone decides they want to make their hobby into a business.
But let's be clear here. Not all hobbies translate well into a business that creates an income. I always advise fledgling entrepreneurs to follow their "interests", which may not exactly be a hobby.
For instance, if my hobby was collecting sewing thimbles or drink shot glasses from all over the world - that may make for an interesting hobby but it's doubtful I could get anyone to invest in it.
The great thing about business principals is that you can apply the same questions to a bootstrapped startup as you can a major startup funded by $10 million from a venture capitalist.
Ultimately, who is your customer? How do you acquire/market to those identified customers? What is your profit on each unit or service sold? Do you have enough capital to sustain the business? What makes your busines...
The emergence and popularity of the TV show "Shark Tank" has helped to crystalize the thought processes used by potential businesses to evaluate investment opportunities in early stage or start-up businesses.
I've received business plans on a napkin (really!) and business plans that are hundreds of pages.
It's really quite simple to grab an investor's attention with the right mix of quality information about your business or start-up.
First, we need to clearly understand what it is the business does? Can this be described in a few sentences? If not, work on it. Secondly, does the business have any revenue or profits yet? If it doesn't it certainly isn't a deal killer for me personally, but my focus is on startups whereas many investors focus on later stage funding. Revenue and profits help however, because it demonstrates there is at least "some" demand for the product or service and there is "some" evidence you can deliver it.
So, what is it that makes someone leave the security of a paycheck and a 401K plan to jump off the cliff into entrepreneurship? I can’t speak for others but I will give you my reasoning.
I worked for a very large consulting firm for many years and the thing I found most incredible was the environment where everyone gets a trophy. The end result in this culture is it breeds mediocrity. The person who planned a party might get the same recognition as someone who identified a huge cost savings and had the initiative to execute a solution. As a manager, we were told to “cycle” pay increases so the same people weren’t getting an increase each year. This meant I would be required to give a pay increase to someone who did absolutely nothing toward the business goals and give the slam/dunk, over-performing, stellar employee zero. Believe me, I would fight for the employee that delivered but would ultimately get shot down in the final “calibration”. Yes – all managers would sit in a room an...
Too often we will bring on a new hire that looked like a dream on paper but was actually a nightmare in disguise. I have more stories than I can count about hiring what seemed to be a mature, hardworking, level headed individual but in reality they had boiled bunnies in pots all over town! Why did I not find this out through an employment reference check? Because it is against the law for a previous employer to offer any information on a reference check other than the dates the person was employed by them and their salary. Therefore, it is imperative to have an accurate BS meter when interviewing people. Dig in, ask for examples if something doesn't sit right with you.
For my company I now require an applicant to go through several rounds of interviews. I even have people not connected with the role we are filling talk with the applicant to get a feel for the person. Still, people have slipped through the cracks.
One lady we hired, we'll call her Agnes, to support a top exec...
This is the time of year when I have to chuckle when people get excited they are getting their tax refund.
It's like a gift from heaven our benevolent federal government sends you a refund, just at the right time when you need it!
Few people realize if they are getting a refund they were paying too much in taxes all year long.
Our brilliant lawmakers have saddled the American public with a tax code that is over 55,000 pages in which even the most astute tax professionals can't agree how to interpret.
Over the years Congress has picked winners and losers using the tax code to reward cronies and punish enemies. It doesn't take those in a tin foil hat to realize the IRS can be weaponized - and is on a regular basis.
When you have a small business that is not incorporated, you file a Schedule C with your income taxes that details the profit and loss from your business. If you operated at a loss, it is a direct reduction of your taxable income. A family making $50,000 per year in taxab...
The answer to this question has a lot to do with what stage of business development you are in.
During the startup phase, you are wearing a lot of hats from service, sales, accounting, technician, marketing, finance and vision. In the startup phase, your business owns you; and it is during this critical time that your efforts, commitment, skill or luck will determine whether your business will succeed. Twenty-five percent of startup companies fail in the first year, 36 percent by year two and 44 percent in their third year.
So why do many well-intentioned, high-energy, optimistic entrepreneurs fail? Entrepreneurs often suffer from fatigue, bad advisers and the inability to perform the numerous roles required of ownership during the startup phase.
Early in my career, I was blessed with a gift from the CEO of the company I worked for. He handed me “The E Myth” by Michael Gerber. He let me know he was expecting me to read it and let him know what I...
We remember growing our career in management with a large Fortune 500 company when our Executive Vice President told us something one day. He said, “Execution is the one thing that separates the good from the great. Let me put it to you this way. If you don’t execute, you’ll be executed.” We guess it’s hard to forget that, but it still rings true in our mind today. Some of the best leaders and managers in business don’t achieve peak results because they simply don’t execute the plan.
Here are three mistakes new entrepreneurs make when it comes to execution:
1. CHANGING THE PLAN TOO OFTEN
One of the sayings we love is that "focus beats brilliance" all the time. In your first year of business, it is very easy to get distracted by five more new money making ideas that you see as ventures that can put additional dollars in your pocket. The problem is that if you lose focus on the plan you put together when you started the business, this can confuse your employees, potential investors, and...