Article Contributed by By Karen Armon
Are you a $100K+ executive who is thinking about leaving Corporate America and starting your own coaching or service business?
Making the decision to venture out, take the risk and become an entrepreneur is hard, whether it’s because you can’t find a job in this tough economy or you’re simply tired of working for someone else. And, believe me I know.
In 1992, I decided to start my own business after being laid-off twice in the same year. Now, the idea was not completely new to me. My father, grandfathers, and many uncles on both sides of my family were bit with the “own-your-own-business bug.” Although, I knew exactly what I was getting into and even though I come from a long line of entrepreneurs, I still faced the same questions and fears that you’re facing right now.
Below, I show you how I made my decision to start my executive coaching business 17 years ago. And this process still works today as I ask my clients the same seven questions when they tell me that they want to transition from executive to entrepreneur.
The Top 7 Questions I Asked Myself Before Transitioning From $100k+ Executive to an Entrepreneur
Question #1: What is your motivation for becoming an entrepreneur?
Your motivation to become an entrepreneur must be strong enough to carry you through the ups and downs. Wanting to work part time while taking care of your children, trying to work as a 1099 until a better opportunity comes along, or having nothing better to do are poor motivators for starting your own business.
Question #2: What is your background and experience at work?
If your experience is in a back-office function or you’ve never had the experience of working directly with customers, you need to think about how you will acquire these skill sets. This does not mean that you need to master the art of cold-calling, but you must know how to close a deal.
Question #3: What strategies and tactics will you use to find leads?
More than anything, you need to hit the ground running. You need to find potential customers fast so that you can make deals happen. My advice is to delay building your marketing materials – including your website, brochures, and tools – until you know where and how to reach potential customers.
Question 4: How will you address the three big challenges of Money, Product and Pricing that every new business faces?
Under capitalization is the biggest reason company’s become bankrupt within the first year. You need to know how to finance your start-up. Personal cash reserves, credit and loans from family and friends are the most common methods.
Building a product or service includes the time and money needed to develop these materials and you need clarity about what your target market wants and needs. Take the time to learn through your network before you spend large amounts of money on prototypes that may not sell.
Pricing is the hardest challenge of all. My advice is to slightly under price your product and/or service to enter the market and as you prove your worth and brand, you can raise your prices over time.
Question #5: What course of action will you take to make your business successful?
This question goes to the heart of your commitment and what you are willing (and not willing) to do to make you a successful entrepreneur. Going into any new venture requires you to evaluate your discipline and diligence as it relates to your desired level of success.
Question #6: What are you going to do to market yourself?
Marketing yourself is all about the process of gathering strangers into your network and bringing them to a state of interest. This requires strategic planning that enables potential customers to engage in you, experience your value proposition and build trust before turning them into a potential sale. Building a website or a social networking site is not enough.
Question #7: How long will you stay involved in your business before you receive a consistent revenue stream?
Given that most businesses take nine months to a year to build a healthy and consistent revenue stream, you must look at your finances and determine what you will do in the meantime. Key questions include: How will you supplement your income requirements? What can you do to drastically cut your break-even point? How will you make up the difference?
There is also a personal side to building a business. You must transition from an accidental entrepreneur to taking your business seriously in order to be successful. And your family must be willing to give you the time and the resources to get your business off the ground.
Becoming an entrepreneur is one of the most satisfying, challenging, exciting endeavors any executive can do. If you want to take charge of your career, build something that gives you long-term control and provider yourself with the ultimate in freedom and flexibility, then making the transition from $100K+ executive to entrepreneur is well worth the effort.
About the Author
$100K+ Executive-Level Career Coach Karen Armon prepares leaders around the world for their next move. Her popular book, Market Your Potential, Not Your Past is a hit among executives who want a clear-cut, systematic game plan that drives careers forward. Now get her new FREE eBook, “Ten Micro-Trends that Impact Executive Careers Today” at http://www.marketoneexecutive.com/ebook.asp and take a critical look at today’s marketplace.
Author: Pamela Swift
Technology is an entrepreneur’s best friend. Today’s gadgets make it easier to stay in touch and manage your business than ever before. As e-commerce reinterprets the brick-and-mortar business as a virtual storefront, Smart phones like iPhone and Blackberry reinterpret the office as a mobile communication center. Make your smart phone a virtual office, and run your business from wherever you are.
Your Smart Phone
Think of how much more business you could get done with a personal assistant. Smart Phones can do even more. Small business owners rely on their iPhone to:
• Stay in touch with customers, anytime and anywhere using business networking tools
• Connect and collaborate with business partners. Smart Phones let you find, communicate, and share data with business partners and service providers.
• Keep an appointment calendar. Automated alerts make sure you’re on time for appointments with potential customers and sales leads. Some smart phones offer more robust apps for prioritizing and managing your tasks and to-do lists.
• Manage customer contacts. Your handheld rolodex keeps client and business colleague contact information at hand at all times.
• Manage your money online. Access Web-based interfaces to pay your bills or transfer funds among accounts. Some iPhone apps also offer expense-tracking applications to “track money in real time”: record business purchases and update financial reports instantly. This is an especially useful feature if multiple users are drawing funds from the same account.
• Manage PPC campaigns. Pay-per-click advertising campaigns call for constant oversight. Make instant adjustments to your PPC campaign via your iPhone.
• Track time spent on different projects. If you bill by the hour, this feature helps you track the time you spend on each client’s project, and create invoices and reports.
With these features right at hand, it’s easier than ever to build a profitable business with little overhead and lots of flexibility.
iPhone-Friendly Business Plans
For a business you can manage from the palm of your hand, consider these ideas:
1. Wedding Planner. Staying in touch is ninety percent of any event planner’s job. Wedding planners coordinate an army of service providers: caterers, invitation and program printers, graphic design companies, florists, entertainers, venues, and so on. An iPhone helps wedding planners act as a liaison between these players and the client.
2. Massage Therapist. Your massage therapy skills and your iPhone adds up to a business as a massage therapist. Rely on your iPhone for managing appointments and marketing your business online.
Clients can reach you anytime to set up an appointment. An automated calendar makes sure you’re in the right place at the right time.
You can reach clients by managing your online marketing services from your palm. Work with Website design and SEO services to set up a Web site for your massage business. PPC management can help get the word out to local clients searching on terms such as “Portland Oregon Shiatsu” or “Hot Stone Massage Honolulu.” Adjust your campaign via your iPhone’s wireless access.
3. Electronic Components Broker. As an independent sales broker of used computer and electronics parts, you’re a liaison between buyer and seller. You need to be in touch to locate buyers and sellers and negotiate a deal between the two parties. iPhone-Based Business Idea: Take your electronics brokerage business an extra mile by establishing a virtual marketplace. Once you set up the infrastructure for trades, this business can easily be managed via your iPhone. A Web design service can help you build a robust marketplace where sellers and buyers can connect and trade components. Armed with point-of-sale (POS) and credit card processing capability, your online marketplace offers a forum for your clients to negotiate prices and complete transactions directly.
4. Personal Financial Advisor. The financial markets won’t pause and wait for you to reach the office and log in. To keep your eye on your client’s investments, rely on your smart phone. Today’s smart phones offer more than a continuous ticker-tape report with real-time data from Wall Street. Customized reporting on investments lets you manage multiple clients’ portfolios on the go. The ability to stay connected helps you:
Respond to opportunities instantly, reaching out to investors and completing the transaction on the go.
Respond to clients instantly, providing them with real-time account information or making adjustments to their portfolio.
Your iPhone also lets you take care of administrative functions on the go, such as recording billable hours per client.
Your iPhone may prove to be your most valuable business partner. In today’s virtual world, the three pillars of a successful business are “communication, communication, communication.” Stay connected with clients, with business leads, and with information, and you’ve got a winning foundation for any business plan.
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Social Media Rejection
Rejection always hurts, no doubt. In fact, when I worked as a psychologist, rejection (fear of it, or getting over it) was, perhaps, at the root of many of the issues which brought my patients to my therapy practice. I heard so much conversation about this topic that I actually wrote a book on strategies for overcoming rejection.
Now, working as a social marketer and online business consultant, I see that rejection continues to be an issue- but not in quite the same way as I’ve seen before. Now, people are experiencing social media rejection, and wondering what to do about it.
Social media rejection can occur in several ways:
One way is that your request to connect is either denied (harsh!) or ignored (vague.). You might reach out to someone that you know, or would like to know, and get a strong negative reaction or response back. In most cases, you’ll be wondering what happened- what you did to set this person off. Similarly, you might reach out to someone, and they just never seem to get back to you on your connection request.
A second way social media rejection occurs is when you find that you’ve been culled from a list- whether it be taken out of Top Friends on Facebook, or unfollowed on Twitter, or similar. The thing about this is that it might not always be clear what happened. I know, for instance, that sometimes my Twitter account behaves strangely, and my account unfollows people I actually still want to be connected to. I believe, sometimes, that this might be due to some kind of technical glitch, or just a ‘drop’ by the Twitter servers. Anyway, the point is that sometimes people get unfollowed- and then contact me, wondering what happened. Likewise, I know there are times where I’ve been unfollowed, and I’m not sure why.
The third way (more subtle) that social media rejection occurs is when you try to take part in a conversation or make a connection and it is directly rebuffed or ignored, in real time. Again, the challenge with this is you can’t always know if the rebuff or ignore was intentional or accidental.
As with any technologically based method of communication, glitches do happen.
That being said, what about when you are sure that you’ve been rejected? When there is no doubt that you’ve been unfriended or unfollowed on purpose?
Even though it’s virtual, rejection still hurts. Research says that social rejection can actually cause physical pain– a holdover, anthropologists believe, from evolutionary times, where we needed to be part of the ‘tribe’ in order to survive.
Today, while rejection may not impact our survival, it doesn’t make it easier to deal with.
So how to deal with social media rejection? Here are some ideas:
1) If you were unfriended or unfollowed by someone and you’re very surprised, why not reach out and ask what happened? If appropriate, call the person. It might be a technical glitch (as outlined above), or it might be an indication of something that needs to be discussed. While it can seem a bit awkward, at first, to call and say, “Hey, I noticed you stopped following me on Twitter.”- (I mean, who wants to be a social media narcissist, right?), you have to consider whether the relationship is worth the awkwardness. If it’s an important connection, I think the little bit of awkwardness is worth it.
2) If you aren’t close enough to the person to contact them offline, but you are still wondering what happened, try to reach out to them directly. @ message them on Twitter or leave a comment on their Wall- something nonconfrontational, like “hey, just wanted to connect/reach out/get in touch.” This may show them that you do care about them and want to connect or communicate.
3) You can ignore it or just move on. Not all situations are going to warrant follow up or follow through. It’s also wise not to spend a lot of time brooding over people who step out of your social stream. In the same way you can’t focus too much when people unsubscribe from your email list, you can’t focus too much when people unsubscribe from your networks. You never know how or why people make the choices they do, and so it’s not worth being too upset over. You’ve heard this before, but don’t take it personally.
Of course, though, the goal here is moderation and balance. If you find that significant people are unfollowing you or unfriending you, there may be something in your approach that needs adjustment (or maybe your account got hacked.)
But like any other kind of relationship in real life, your online social connections will evolve- with people moving out, and, hopefully, new people moving in.
Dr. Rachna Jain is Chief Social Marketer at The Mindshare Corporation. Rachna works with speakers, consultants, authors, and small business owners to develop and execute effective social media marketing strategies. Her proprietary persuasive social media process (sm) focuses on building influence, credibility and visibility online. This translates into greater recognition, increased website traffic, faster lead generation, a shorter sales cycle, and more opportunity for her expert clientele. She blogs regularly at The Mindshare Blog
Entrepreneurs have a knack for seeing opportunities where others don’t. If you see 2010 as a good time to start a business despite the recession, then you may have an entrepreneurial perspective. Now you need to know if you have some of the other characteristics of successful entrepreneurs.
What helps entrepreneurs these days is that virtual business models put more emphasis on talent and less on administration and infrastructure. After all, e-commerce solutions can give you an instant storefront presence and credit card processing services can handle your receivables, and SEO can give you access to online customers with a minimal up front investment.
So now all you need is the right set of skills and characteristics. Consider whether you have the following ingredients of successful entrepreneurship:
1. Talent.
You should be able to identify at least one area of ability that makes you stand out from the crowd. This can be anything: technical expertise, sales skill, marketing insight, or logistical know-how. Since small businesses are talent-driven, you have to start out with the belief that you have the raw material with which to compete and succeed. It helps if your skills happen to be in areas with growing demand, such as health care or computer technology. If you have medical knowledge or a skill such as Web design, you may have a little wind at your back.
2. A new or different perspective.
“Me-too” businesses have a tough time making a mark, especially during a weak economy. Your business should be founded on the idea that there is a better way to do things. Ideally, you should have enough experience in your chosen industry to be familiar with the normal way business is done, and to have developed some unique insights as to how that can be improved. Being able to clearly articulate a differing perspective should be central to your business plan. In turn, it should also become the vision you communicate to everyone you hire, and the selling proposition you use to pitch potential customers.
3. A business network of connections and affiliations
Experience is valuable not only for knowing how other companies do things, but also for helping you form a business network that will get your new company up and running more quickly. Remember, people–especially business-to-business customers–can be reluctant to do business with a start-up. You should have some contacts who respect you enough personally to take a chance on your new business. Of course a network of contacts can also help you identify potential investors, suppliers, and talented employees. If you need to build your network think about joining a business community of interest.
4. A war chest.
Don’t start your business venture unless you have identified sufficient funding to not only get started, but to keep your business running through the inevitable lean months at the beginning. Many businesses are forced to go under just as they would be starting to gain some momentum, simply because they underestimated the amount of time it would take for profits to start rolling in. Funding can be from your own savings, outside investors, or loans. Of course, external sources of funding are harder to come by in a recession, but you can use techniques such as virtual offices to reduce the need for this type of funding.
5. Ability to take risk.
You should start any new business with a commitment to succeed, but an acceptance of the risk involved. Entrepreneurs are often people who are willing to trade a sure thing working for someone else for even a risky chance at running their own show.
6. An eye for complementary talent.
Once you start hiring people, you should think in terms of rounding out the team rather than looking for people just like yourself. It can be a mistake to have too many would-be leaders in one organization. If you have an independent and visionary outlook, you might do well to complement that with a strong administrator who can take care of the details.
7. Persistence.
Not only does it take a long time for a new business to gain traction, but entrepreneurs often don’t succeed on their first try. As long as you have confidence in the first two items on this list–your talent and your unique perspective on the business–you should be willing to keep trying.
It is no surprise that there will be from time to time employees that steel from your company. Many times it is as small as a few pens and post-it notes—other times it could be they are doing the unthinkable and steeling money from you. Whatever it may be the fact is that according to the U.S. Department of Commerce, employee dishonesty costs business owners around $50 billion a year. Because of this it is time you start thinking about simple ways to stop employee theft from your company.
Lights
Just adding some lights to the outside of your business can do wonders and save a lot of money when it comes to business security options. If your parking lot is brightly lit it will be harder for your employees or anyone else to steel anything from your business. Keeping the outside well lit will also keep from anyone hiding in dark places who could jump out and attack someone on their way to their car—making your employees feel safe.
Video Camera
If you have a video camera installed in your stock room and in high secure areas it should help prevent your employees from shoplifting at your store. If your parking lot is prone to vandalism having a well lit parking lot and a video camera can do wonders. Cameras come in all shapes and sizes and finding an inexpensive camera should be fairly easy.
Card Access Terminals
Card access terminals are a great idea and fairly inexpensive way to keep track of who is coming in and out of your office or store. These devices will be able to keep track of each employee so if a situation arises you will be able to know if he or she was in the office during an incident.
If your company doesn’t already have a business security system it is defiantly time to start thinking of cost efficient ways to monitor your business. It doesn’t have to be the latest state of the art system—minor changes can really do wonders for your company and could end up saving you money in the long run. One last tip to remember is to check with your insurance company for deductions if a business security system is implemented. Many times you will find that there are deductions for having some sort of security system for your office.
Shannon Suetos is a writer based in San Diego, California. She writes extensively for Resource Nation, an online resource that provides expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs.