Surviving the Home Office Meltdown

Anyone running a home business or working from home has had some trouble staying focused. Although there are great benefits to working from home, such as no wasted time getting ready in the morning, save on gas and less calls to Jimmy John’s, it can be hard to stay motivated with so many distractions around. I’ve created some guidelines that have helped make my day more efficient and rid myself of some distractions.

1.       Dedicate a space of your house just for work. Often working in the same room where you spend your leisure time will result in less work and more leisure time. Get rid of the TV and don’t work from the couch.

2.       Keep your work space organized. Keeping your work space organized, no matter your specific organization habits, will prevent you from walking around the house looking for things and noticing unfinished chores that should be left for after your work is done.

3.       Don’t be afraid to use inspiration. Even the best need to be inspired in order to keep motivated. Put up inspirational pictures, quotes, etc… Whatever keeps you focused on your goal, keep it close.

Trying to Hook That Big Fish? Make Sure You’re Using the Right Bait

It seems harder than ever these days to locate funding for your next big project. There is virtually no Angel Investing going on right now in the State of Michigan and the banks are coming up with excuse after excuse on why YOU are not qualified to receive a loan. What can you do? Traditionally, investors and banks want to see a business plan. Investors will take business plans seriously if they are well written and thought out. They aren’t too picky, just looking for a few things:

·         What problem is your product or service the solution for?

·         How is it going to make money (your business model)?

·         How much will it take to get started?

·         How much money will it make them?

·         Most importantly, who is going to get the job done (your management team)?

Before you can “reel them in,” you need a killer executive summary. If it’s good enough, they will jump in the boat for you.

Banks on the other hand are a nightmare. A business plan used to work but now banks are requiring:

·         Business Plan

·         Promises from vendors

·         Collateral

·         Legal Documents

o   Franchise agreement

o   Commercial leases

o   Contracts with third parties

·         Schematics for your building

·         What color carpeting is in the building?

Ok, so I made the last one up but once you have everything a bank is looking for which is usually more than I listed, they will ask for something else. These days the best way to go is with an Investor but you have to be prepared if you want to get funding.

Do You Know Your Numbers?

Large corporations know their numbers but I bet most small businesses don’t know theirs. I know it’s not my strong suit but I’m glad I found out what my numbers were. What I mean by “knowing your numbers,” is knowing how many leads you must get if you’re a salesman, how many potential customers must walkthrough your store if you own a shop or how many people you must add to your network if you’re a consultant. These numbers are extremely important to the success of any company. As a young entrepreneur, I thought in terms of sales instead of thinking in terms of what leads to my sales. Before I realized it, my sales were dwindling because I was focusing on the wrong things. If you are trying to achieve a goal, find your number by playing the law of averages. The law says that one person in ten will say “yes” to what you’re offering so if you want ten more clients this year, plan on shaking hands with at least 100 new faces. One success for every nine failures sounds bad, but it could be worse.

"I have not failed. I've just found 10,000 ways that won't work." - Thomas Edison

Local Events Promote Entrepreneurship

There is a new wave of young entrepreneurs poised to take over Michigan. A colleague of mine participated in Startup Weekend Kalamazoo last weekend, where entrepreneurs pitch their ideas and form teams to start the company in a mere three days. At the end of this three day event, in which entrepreneurs spend over 12 hours each day working on their idea, entrepreneurs present their ideas again with awards going to the top companies. My calendar is filled with more of these exciting events that are coming up in April. Central Michigan University is sponsoring a New Venture Competition with awards totaling $45,000. There will be another Startup Weekend this time in East Lansing. Even Detroit is getting in to the mix with the Ignite Detroit event at Motor City Casino. These are great networking events for young entrepreneurs to attend. Even if you’re not participating, you need to get out and meet people.

“The only difference between where you are now and where you’ll be five years from now are the people you meet and the books you read.” –Charlie “Tremendous” Jones

What Most Small Businesses Don’t Have?

I’ve been talking with small business owners and entrepreneurs for a number of years now. One thing I know for certain is that most of them lack project management skills. They have fantastic ideas and even larger dreams but they only see the end goal. They have a hard time grasping what steps it takes to get to the end goal. To me, the best analogy for getting to that end goal is similar to playing sports or trying to lose weight. Everyone starts with a certain set of statistics they wish to achieve the next season or a goal weight they wish to achieve by a certain date. An entrepreneur’s dream is no different. If you wish to lose weight, you know that by working out for 30 minutes a day everyday for two months will get you closer to your goal, and then add in a better diet over the same period of time and you can get there.  A business is no different, just figure out the steps and follow them.

1.       Goal. What are you trying to achieve? Write it down.

2.       Steps. What do I have to do to get to the end goal? Write everything down that must be done.

3.       Timeline. Where do I start? Number the order the steps need to be done.

NOW GET TO WORK!

Who Says Social Media isn’t Worth It?

I constantly hear from the non-believers that social media doesn’t work. That it’s just something people do to pass their time. I say “Nay” to that concept. These people merely do not understand how important social media is. As a matter of fact, Coca-Cola decreased their mainstream advertising budget by 6.6% and focused more of their budget on social media. If the one of the world’s most recognized brands is taking social media seriously, then why shouldn’t you? If you are at all serious about your business, you must adapt to using social media. If you don’t, not only you but your business will be left behind.

Many people don’t know how to use social media properly but it’s as easy as reading a book or searching for some how-to videos on YouTube. If you are uncertain about the importance of social media in your business, I suggest reading the book 33 Million People in the Room by Juliette Powell for some insight.

“The definition of intelligence is having the ability to adapt the environment around you.” -Unknown

What business are you in?

Many people come up with the greatest new invention or idea, quit their job and start their own business. What exactly does that mean?

 Did they start their own company or are they self-employed?

Doesn’t self-employed mean they own their own business?

Owning a company or being self-employed is the same thing, if you have to show up for work every day. The real business you are in is owning a job not a business. Sure, if you’re self-employed you can choose whether you work or not, but if you don’t work you don’t get paid. Doesn’t sound like a business to me (sarcastic voice).  A real business can run on its own without you. So the question you must ask yourself is, do I own a business or does my business own me? I hope you answer yes to owning a business but if you unfortunately found out that your business owns you, I strongly recommend reading the book E-Myth Revisited by Michael Gerber. This book is the beginning to freeing yourself from your business and seeing it a different light.

“Life isn’t about finding yourself, it is about creating yourself” –unknown.

Don’t find a business you can work in, create one that works for you.