Don’t Overlook Insurance When Starting a Business

This article about the insurance needs of pizza delivery companies came out this weekend in conjunction with the Superbowl, but the advice is good for any new business starting up. Don’t overlook your need for insurance. While the probablility of a loss may be small, your potential liability exposure could be large enough to sink not only your business, but also your personal finances, as well.

There are insurance companies that specialize in hard-to-insure industries (such as the pizza delivery mentioned in this article), and it is usually possible to purchase the insurance your business startup will need at a competitive price. An insurance agent or broker will be able to help you assess the risks that your company is exposed to, how likely those losses are to happen, and help you put together an insurance policy that will cover what needs to be covered in a cost-effective manner. So, as you are planning to start a business, don’t forget to consider your insurance needs!

Starting a Business? Don’t Know Where to Start? Start Here. Go Far. LaunchX.com

Take Control of Your Work Life. How? Open a Business!

Like it or not, working is a fact of life for the majority of us. We are pretty much guaranteed to spend at least 40 years at a full-time job…longer if the retirement plan ends up tanking with the rest of the economy. But that doesn’t mean every day has to be a grind, waiting for the bossman to bless us with a puny raise or meaningless promotion. There is a way to take control of your worklife, and that is to go out on your own.

Working for yourself is by no means a vacation. In addition to being your own boss, you are also your own legal counsel, accountant, marketing department, warehouse attendant, and secretary. But everything you do in a day seems to have far more meaning. It is easier to be motivated, easier to put up with the mundane tasks when you know exactly why it must be done and how it will build your venture. There are a million and one things on your to-do list, but they are all yours.

The things you daydream about at the office are really only possible through self-employment. Want more time to spend on your favorite activities? With your own business, you can fit your 50+ hours per week in any way that works for you. We know an IT consultant who does his work late into the evening, freeing up the after-school time to spend with his kids. We know another small business partnership that have divided the workload so that each is completely free half the weekends each month to be involved in their hobbies.

Starting a business will not reduce your overall workload — but it will give you control over when and how much you work.

Starting a Business? Start Here. Go Far. LaunchX.com

Marketing Lessons from Infomercials

If you, like me, find yourself strangely intrigued by the way infomercials are mesmerizing in the middle of sleepless startup nights, this article by Steve Straus from USA Today, has some great lessons we can all learn about marketing from infomercials. In summary:

• Enthusiasm is Key — There is a reason those informercials catch your ear…the sheer enthusiasm of the pitchman.
• Show the Need — Many people don’t realize they need the product until the infomercial shows them they do.
• Keep the Solution Simple — Show that your product is a simple way to meet that need you’ve just shown.
• Testimonials Lend Credibility — Use testimonials from satisfied customers to add credibility as well as a “me too” element to your sales.
• Ask for the Sale -Right Now! — Provide an incentive for your prospect to buy now or contact you today.

Starting a Business? Start Here. Go Far. LaunchX.com

Lessons in Networking from a 10-year-old

This past weekend, our daughter was involved in a co-marketing event for girls hockey as part of Hockey Weekend Across America and the new movie “The Tooth Fairy.” In addition to giving a hockey demonstration in the lobby of our local Regal Cinemas, the girls were also handing out brochures about the local girl’s hockey program to movie goers. She did a great job talking to people and getting the brochures in the hands of people that have daughters, but we all learned some lesssons:

• Some people are going to say no. Always thank them for their time.
• Some people are going to pretend you don’t exist. Say thank you to these people too!
• Some people may not be in your target market — don’t ignore them — you never know who they may know that is in your target market.
• If you don’t make the first move, you may not have anyone to talk to.
• Always smile.

No matter what your business, there will be times that you need to do direct networking. Remember these networking lessons the next time you have the opportunity to talk your business up!

Starting a Business? Start Here. Go Far. LaunchX.com

Starting a Business? Bargains abound in commercial real estate.

The news reports are full of stories about occupancy rates being at record lows for commercial real estate. Many of these stories are told in depressing terms — and how bad it is for the local economy. But, if you are starting or expanding a business, you should be able to see the silver lining in these news reports. With occupancy rates down, rental rates are also down, so you should be able to pick up a good to great location for your business at a lower than expected cost. In a buyer’s market, you, the buyer have a lot of negotiating power. Do you need graduated rent (low the first year and increasing over the lease)? Do you need a larger tenant improvment allowance? Do you want extra parking spaces? A bigger share of the center’s common sign? Now is a great time to shop for your retail or other commercial space!

Starting a Business? Start Here. Go Far. LaunchX.com

Starting a Business is a Path to Higher Income and Wealth

A study recently released by the U.S. Small Business Administration’s Office of Advocacy found that small business owners, as a group, experienced substantial gains in real income and wealth from 1998 to 2007. Read the full study here. Only about 12% of US familes own at least one small business, a rate that has held fairly steady over the years. Are you ready to join the ranks of business owners?

Starting a Business? Start Here. Go Far. LaunchX.com

How To Calculate A Return On Investment When Starting A Business

Just came across this article How To Calculate A Return On Investment – ROI Calculation at Entrepreneur.com. Calculating ROI is one of the startup financial calculations that is easily mis-calculated and mis-stated. Use this quick and dirty calculation to estimate the ROI for your startup or to evaluate the plans of people requesting an investment in their startup.

Starting a Business? Start Here. Go Far. LaunchX.com

Decision-making — Finding a Happy Medium

One of my favorite children’s books, A Wrinkle in Time, has a character called the “Happy Medium.” It is a play on the adage of needing to find a happy medium between two extremes. When starting a business, may entrepreneurs are at one extreme or the other when making business decisions.

Some are highly deliberative, research all possible options, get 45 prices before buying a case of printer paper, and delay a decision “in case” new information comes to light.

Some are lightning fast, accept the first offer, by full-price at the local store because its close to home, and jump to decisions without considering any options at all.

To have a successful business, you need to find a happy medium when it comes to decision-making. Get several bids in a reasonable time, then pick one. The time waiting for a better deal to come along is time you are not using the item or selling products. Do consider the most likely options and outcomes of a decision, but then make a decision and push forward. You may have to change direction later, but at least you have made progress in the meantime.

If you are usually a fast decision maker but find yourself dragging your heels, you may need to gather more information before you can make a decision. If you are usually deliberative, but find yourself jumping at a “must do it today” deal, watch out. There may be pitfalls you haven’t seen that slowing down a little will help yousee.

The bottom line — find a Happy Medium for your decision-making process and propel your business forward.

Starting a Business? Start Here. Go Far. LaunchX.com

Do We Really Need a Written Partnership Agreement?

We recently held a coaching session with a small business that has been in business for about a year. It was started by two friends as equal partners. Each brought a different skill set to the table, and they seemed to be very complementary. The trouble arose when one partner had less time to devote to the new company and the other partner wanted to make the company grow.

Because they didn’t start with a written partnership agreement, they now have two very different memories of what they each agreed to do as well as some fundamental principles of the business. Worse, they have no provision for one buying the other out or one exiting the partnership gracefully. There is a potential here for not only the company to fail, but also for their long-standing friendship to be irreparably harmed.

Although it takes some time to hammer out the details when starting a business, it is worth every minute (and then some) to discuss each aspect, including an exit strategy, and commit it to writing before the business launches. A partnership agreement is absolutely necessary, no matter how small the business you are starting.

Starting a Business? Start Here. Go Far. LaunchX.com

Are You an Accidental Entrepreneur?

This article from MSNBC.com describes the lives of several “accidental entrepreneurs” who started their own businesses when they were unable to find a job working for someone else. One, Andy Owen, really liked being an employee and wasn’t sure he wanted to be on his own. But, after taking the plunge, he found that the freedom and control that owning a business gave him was something he loved, much to his surprise.

The article also quotes a study by Bill Dunkelberg. It showed that three years after deciding to start a business, most owners did not regret the decision, although about half said that the business wasn’t financially where they projected it would be.

Are you thinking of starting a business? Joining the ranks of the “accidental entrepreneurs?” If so, now is a great time to do it. Be realistic in your expectations (especially in the first few years) and reap the long-term rewards of owning your own life.

Starting a Business? Start Here. Go Far. LaunchX.com