Ten Tips to Ignore When Starting a Business

Ten Tips to Ignore When Starting a Business
by Cathy Goodwin

Summary: Everyone has advice for you when you're starting a business, but it's not all good advice! Here are ten tips you'd be better off ignoring.

1. "Career freedom means starting a business."
Clients often assume they can reach career freedom only by starting a business. I know dozens of people who feel very free in a corporate setting. They swim easily in the corporate stream and learn to balance their lives. Some even return after successful entrepreneurial ventures.

2. "Don't worry, be happy."
Some advisors tell you, "You'll be great," even if they secretly believe you're following a harebrained path that is doomed to fail. Do your own research and get second and third opinions.

3. "Visualize success."
While I support visualizing and attracting, I do not believe you can attract business from a non-existent target market. Better to attract prosperity and fulfillment. You might also try to attract knowledge and discernment so you can evaluate your various advisors.

4. "If you can dream it, you can do it."
You can dream of meeting the Queen of England at your local Wal-Mart but you may have to wait awhile. The reverse is often true -- you must have a dream before you experience the reality -- but some people manage to skip the journey and enjoy the arrival.

5. "If other people can have a successful business, you can too."
Unless you strongly resemble those "other people," they're irrelevant.

6. "You will probably fail."
Your advisor may be using fear to motivate you to work harder or sign up for his success course. Do your own research.

7." If you feel energized about your goal, you will be successful."
Feeling energized just means you enjoy some aspect of what you are doing. Figure out what you enjoy and design a life to include more of it.

8. "You can always go back to what you were doing before."
After months or years of trying to start a business, you and your former career will be different and your former colleagues will view you differently. Better to begin with a job that you can leave if you become successful. Stay in a position of power.

9." You have had a successful career so far and you'll figure out how to be successful now."
Basketball players do not always thrive on football teams and baseball is a different game altogether. Enough said.

10. "You will be fine; you just need more confidence."
If you lack self-confidence in several areas of your life, see a clinician. Otherwise your lack of confidence in your entrepreneurial skills is probably reality-based and should be viewed as a signal to find another advisor.

Cathy Goodwin, PhD, is an author, career consultant and speaker, who combines solid expertise with humor, common sense and intuition. Visit her at http://www.makewritingpay.com or for more info, e-mail Cathy at cathy@makewritingpay.com.

Networking without pressure

By Mary Gottschalk

Networking is a bit like flossing your teeth. You know you should do it every day, but often you don't start until you have a crisis on your hands.

Networking can be useful as a crisis tool for finding the next job or getting a referral. But beware. There's a subtle psychological shift in the balance of power between you and your contact if the purpose of the meeting is to get a job. You go into the meeting needing something and wishing you didn't. Your contact knows he is expected to deliver a job lead, a referral or at least a good idea.

This situation can be awkward. It makes sense to present what you think your contact should know about you, what you think will be most impressive. But whether it works has as much or more to do with a contact's ability to provide a relevant job lead or referral as to the effectiveness of your presentation. And if that contact isn't in a position to offer something, he may try to bring the conversation to a close, to relieve discomfort and avoid creating false hope.

The odds are high that you will walk away from such meetings discouraged, something you don't need if you're out of a job. Even worse, a lot of valuable information - valuable to your contact as well as to you - never gets communicated.

An alternative approach is based on the notion that people love to give advice. Don't say that you're looking for a job, even if you are. Instead, explain that you're exploring your career options ... that you want to learn what other jobs or careers your skills might be suited to ... that you don't plan to make any decisions until you have more information.

That approach takes much of the pressure off, if only because both people go into the meeting expecting nothing more than an interesting conversation. You can present a more honest picture of yourself and explore the career implications of your weaknesses as well as your strengths. The format leaves lots of room for a contact to make suggestions and share personal experiences. It allows him to ask what you think about "X" or how you'd handle "Y," thus learning about you in ways that might never have come up if the purpose of the meeting was to "sell" what you assume are your most important skills.

Because it's a dialogue, a contact will feel freer to talk about opportunities in her firm or industry, long-term opportunities even if they are not available on your current time frame. Because it's a dialogue, you can ask probing questions about the pros and cons of her job or profession, the how and why of her firm's internal decision-making and its biggest challenges. She can see first-hand how your mind works. You get more honest answers. And if your contact sees you as interesting rather than needy, she is far more likely to make referrals.

A significant fringe benefit of this approach - a critical one when you actually need a job - is that you rarely walk away feeling disappointed or discouraged.

The best fringe benefit is that interesting conversations lead to interesting job offers, often from the people you really only approached for advice.

Mary Gottschalk is the owner of MCG Strategic Services, which provides financial services to nonprofit organizations.

How To Market To People Who Are Not Like You - Business And Breakfast

How To Market To People Who Are Not Like You - Business And Breakfast

One of the most important issues to address within your marketing plan is new market segmentation. No longer does mass marketing and mass media effectively reach your audience. Diversity marketing is the new norm, and this doesn’t simply mean racial diversity but extends to gender, race, age, life stage, sexuality, special interests, etc. By recognizing and segmenting these different groups, you can tailor your product/service and its message to reflect customers’ uniqueness. Kelly McDonald will share her insights on how to effectively segment new markets and then devise messaging to reach them.

This opportunity is made possible through sponsorship assistance from MyEntrenet at the Regional Business Development and Incubation Center at the University of Northern Iowa. Maureen Collins - Williams, Director

Join us for breakfast, networking and a wonderful presentation.

Kelly McDonald is a marketing and advertising expert with more than 20 years of global advertising agency experience, in both the general and Latino markets. Prior to starting her own company, Kelly was Director of Client Services at one of the nation’s top Hispanic ad agencies, where she worked with Nissan, Bank One, Kimberly-Clark and Budweiser. Learn more about Kelly McDonald and her business at McDonald Marketing.

The New-Iowa Group is the home for the Coalition and is sponsored in part by American Express OPEN and by E-Myth Benchmark. You can Contact Bob or Susan Clements at 888-959-0621 for more information about E-Myth Benchmark.

Date & time
Wednesday, September 9, 2009 7:30 AM
Location
StayBridge Suites
6905 Lake Drive
West Des Moines, IA 50238
1-515-223-0000
Who's organizing?
Kent Sovern
“ Look for the NIEC Signs ”
Price
$10.00 per person – RSVP at http://www.meetup.com/New-Iowa-Entrepreneurs-Coalition/


New Iowa Entrepreneurs' Coalition The New-Iowa Group is the home for the New Iowa Entrepreneurs' Coalition which is sponsored in part by American Express OPEN and by E-Myth Benchmark. Please visit our Sponsors' web pages and you can Contact Bob or Susan Clements at 888-959-0621 for more information about E-Myth Benchmark.

SBA Launches YouTube Channel

To reach a larger audience, the U.S. Small Business Administration is now posting informational videos on YouTube. The Small Business Administration recently launched it's own YouTube channel, joining an increasing number of federal agencies that are taking advantage of the popular video-sharing platform to reach a larger audience.

“With millions of visitors, most of them under 35, YouTube offers a prime opportunity to use current technology and the appeal of a popular online platform to further promote the agency’s programs and services,” SBA Administrator Karen Mills says. “By expanding its outreach, SBA will be providing more current and potential entrepreneurs with the necessary tools to start, grow and succeed in their businesses.”

In a statement released Aug. 26, SBA said it is intent on reaching this audience with its message of entrepreneurship, the importance of small business to the nation’s economy and information on the agency’s programs and services.

The SBA YouTube channel debuted with a 60-second introduction to SBA, its programs and services, and a 10-part “Delivering Success” series co-produced with the U.S. Postal Service.
Future content will include a variety of videos with more in-depth information about SBA programs and services to inform current and potential entrepreneurs. Topics will cover how small businesses can take advantage of the Recovery Act loan programs, government contracting opportunities, exporting to increase market share, counseling and training on how to start and grow a small business, and small business success stories.

Top Seven Tips for Taxpayers Who Have Started or Are Starting a New Business

John Berger
Communications Analyst at US Government

Anyone starting a new business should be aware of their federal tax responsibilities.

Here are the top seven things the IRS wants you to know if you plan on opening a new business this year.

1. First, you must decide what type of business entity you are going to establish. The type your business takes will determine which tax form you have to file. The most common types of business are the sole proprietorship, partnership, corporation and S corporation.

2. The type of business you operate determines what taxes you must pay and how you pay them. The four general types of business taxes are income tax, self-employment tax, employment tax and excise tax.

3. An Employer Identification Number is used to identify a business entity. Generally, businesses need an EIN. Visit IRS.gov for more information about whether you will need an EIN. You can also apply for an EIN online at IRS.gov.

4. Good records will help you ensure successful operation of your new business. You may choose any recordkeeping system suited to your business that clearly shows your income and expenses. Except in a few cases, the law does not require any special kind of records. However, the business you are in affects the type of records you need to keep for federal tax purposes.

5. Every business taxpayer must figure taxable income on an annual accounting period called a tax year. The calendar year and the fiscal year are the most common tax years used.

6. Each taxpayer must also use a consistent accounting method, which is a set of rules for determining when to report income and expenses. The most commonly used accounting methods are the cash method and an accrual method. Under the cash method, you generally report income in the tax year you receive it and deduct expenses in the tax year you pay them. Under an accrual method, you generally report income in the tax year you earn it and deduct expenses in the tax year you incur them.

7. Visit the Business section of IRS.gov for resources to assist entrepreneurs with starting and operating a new business.

To keep up with IRS new, announcements and products and services, subscribe to e-News on IRS.gov at http://www.irs.gov/businesses/small/article/0,,id=154825,00.html , click “Subscribe Now” at the bottom of the page and enter your e-mail address.

IRS Link for New Businesses: • Small Business and Self-Employed Tax Center http://www.irs.gov/businesses/small/index.html

How To Turn An Idea Into A Business in 1 Day

Have an Idea For a New Product, Service or Business?

FREE INFORMATIVE SEMINAR – June 30 (5 – 7 pm)
WHERE: Impromptu Studio, 300 SW 5th St #220, Des Moines, IA 50309

Join Us & Preview the Weekend Startup Business Boot Camp Where:
· You Bring the Idea, We Help You Launch It
· Save Thousands of Dollars and Tons of Time
· Test Your Ideas Quickly & Cheaply
· Identify and Head Off Potential Points of Failure
· This Event is Hands ON! Don’t Just Learn It, DO It!
· Do In-Room Market Research & Enjoy the Synergy of Fellow Entrepreneurs
· Meet 1 on 1 With the Experts (attorneys, CPAs, etc.) at no Additional Charge
· Learn Effective Ways to Market Your New Business or Service For Next to Nothing
· Little Known but Simple Ways to Get Capital for Your Idea
· The Information and Our Process Will Last You a Lifetime

Call 641-204-9476 For More Info and To Register For This FREE Event
http://www.blogger.com/www.StartupBusinessBootCamp.com/desmoines
1-877-Biz-Nation (877-249-6284)

WHO BENEFITS MOST FROM ATTENDING:
People Currently Employed – Looking to start a side business to supplement their income.
Job Seekers – Who are tired of the humiliating job hunting process and want to take control.
Stay At Home Parents – Who are looking to supplement their household’s income.
Business Owners – Who want to learn how to rapidly launch most any idea in under 24 hrs.

SMALL BUSINESS WEEK: ‘Building a Community around your business'

This is the week that small is big.

National Small Business Week begins Monday May 18, and the New Iowa Entrepreneurs’ Coalition will note the occasion with a series of education and networking events throughout Central Iowa. The Coalition's theme for the week is "Building a Community around your business".

The week will kickoff with two featured events on Monday. The first is a 'Lunch N Learn' titled 'Building Business Intelligence and managing reputation through social media'. The event will begin at 11;30 am at the The Des Moines Social Cub—1408 Locust in the Western Gateway.

What are your customers saying about you online? This workshop teaches you and your team how to harness listening and monitoring technology (Google Reader, Technorati, Twitter Search, etc.) for the purpose of scanning conversations in blogs, social networks, user forums, message boards and online communities for mentions of your business, competitors and other relevant topics. You'll also learn how to effectively engage your online audience on their own turf with honest, human-to-human discourse, as well as how to deal with detractors.

This session is conducted by Nathan T. Wright and Hillary Brown of Lava Row, a Des Moines-based social media education, consulting and strategy firm.

Register through the New Iowa Entrepreneurs' Coalition web site or through a hot link from the New Iowa Group web page. Tickets are $25/person. You may want to arrive at 11:30 for conversation and casual networking. Bring your own lunch…

Small Business Week Events continues at 5:30 PM with a second featured event —'Personally Powerful Presentations: Two-Minute Make-Over Moments.'

Our featured presenter is James Sandin of Dynamications, LLC who will explain how to present yourself and your business with power in "making over" your prospect's impressions and interests in you and what you are offering. It's the two-minute commercial approach supersized.

This meeting will be held at the RDG Offices at 301 Grand Avenue in downtown Des Moines. Register through the New Iowa Entrepreneurs' Coalition web site or through a hot link from the New Iowa Group web page.

You can download a complete listing of the Coalition's Small Business Week events from the 'FILES' section in the New Iowa Entrepreneurs’ Coalition web site. Visit the Calendar page for mote networking and education events.

Scare Your Kids - Friend them on Facebook!

The Graying of Social Networking Sites

Mark Marich

Facebook, MySpace, and many other social networking websites got their starts as places for college students and other youth to interact online. Today, as a new Pew Internet and American Life report shows, online social networks are regular part of the online experience for all of us.

The study, "Adults and Social Network Websites," shows that the share of adults with a profile on an online social network has quadrupled in the past four years. In 2005, only 8% of adults had such profiles compared to 35% today. Because adults make up a larger part of the population, this share means that adults are now the primary users of online social networks.
MySpace is far-and-away the leader for adults with 50% of that demographic's users. While Facebook currently sits at 22%, my non-data-supported guess (based merely on old friends popping up daily) is that it will narrow that gap before too long.

Given that 89% of all adult users joined these types of sites to stay in touch with friends, it isn't surprising that LinkedIn is in a distant third at 6%. It is, however, the site of choice for those of us fostering business or professional networks. Sixty-seven percent of LinkedIn users use it to 'Make new business or professional contacts'.

The percentage of users who use LinkedIn to flirt?

Zero. Zip. Zilch.

I suppose that isn't a big surprise either.

Check out this short video -

Seth Godin on social networking and small business

New Year's Resolutions for Small Business Owners in 2008

As 2008 comes to a close, looming resolutions from last year are still hanging over my head. New exercise routine? Sort of... Healthier diet? Check (except for RAGBRAI and the State Fair) A new small business operation that's geared to maximize impact on the community? Well... I did finally get New Iowa Group, Ltd. properly organized as an Iowa Corporation and I've landed an anchor client (more on that in the next posting).

I know I was supposed to change a few things up with the New Iowa Entrepreneurs’ Coalition ...but...

"Those 'shoulda, coulda, woulda' business goals are attainable for every small business owner in 2008," says Ridgely Evers, CEO and founder of NetBooks (http://netbooks.com). "By doing these five things, you can ensure success and avoid disaster."

As a financial software expert, small business owner and CEO of several technology start-ups, Evers' has refined a tried-and-true game plan for revolutionizing a small business:
1. Define your success. It's different for everyone. What's your measure of success? Define realistic and measurable goals, and communicate them to your employees. Put goals up where you and everyone in your business will see them on a daily basis, and track progress against them. Give out rewards when they're met and exceeded.

2. Understand and fix the sources of error. Pinpoint the errors that seem to keep happening, requiring everyone to run around and fix them. Cleaning up messes prevents employees from focusing on their jobs. Figure out what is causing the error, and fix it. Address one at a time, and when you're finished with the most common one, move on to the next one. Your profit margins will thank you.

3. Make your data safe, and have a back-up plan.
"Everyone knows they should do something about this, but assumes they'll get away with it. Bottom line: your luck will run out sooner or later," says Evers. "And catastrophic data loss is a leading cause of failure for small businesses - no need to risk it."

Right now, your data is probably on a hard drive that will crash or get overwritten accidentally, and there isn't a current back-up in place. Keeping all pertinent data in a web-based system gives small business owners a reliable system for storing data securely...and is accessible from any computer. No more worrying about the life expectancy of your PC.

4. Create a marketing program and use it consistently.
Marketing is crucial to growth and success. A marketing plan doesn't need to be complicated, but it needs to be executed consistently. The first step is to make sure you know who your customers are...and then figure out where they get their information and how to reach them. A great resource is "Duct Tape Marketing - The World's Most Practical Small Business Marketing Guide," by John Jantsch. Execute your plan.

5. Increase sales - and start by raising prices.
Most successful business owners focus their energies on growing revenues to the point where the business can stand up comfortably, and keeping them there. Cutting expenses never hurt, but success come from growth.

"Growing sales should be a focus for you all year long, but the first part of the year is the best time to raise prices," says Evers. "And you can reinvest added revenue into making sure this coming year is the most successful your business has ever had."

Share your best ideas with other business owners by using this forum and the New Iowa Entrepreneurs’ Coalition message boards. Ridgely will publish the most helpful in his blog (blog.netbooks.com), which is also a great resource for tips and ideas on improving your business. Go to http://netbooks.com and click on "Share your Best Ideas" to enter your top resolution for 2008. One winner will be selected to win a free year of NetBooks (approximate value of $2,400).