Summer Reading List 2019

It’s been a few years since I’ve compiled a suggested list of business books to read over the summer (and beyond). Professional development need not always require enrolling in a semester-long course or workshop. Reading is a gateway to so many positive experiences, from learning to pleasure. If you don’t want to buy books, visit your local library and check one out, at no charge. A library card is a good investment.

  1. How to Fail at Almost Everything and Still Win Big (Scott Adams)

For Scott Adams, creator of the world-famous Dilbert cartoons, life’s path wound through many jobs, failed startups, useless patents he applied for and countless other indignities. In his memoir, Adams shares lessons learned about keeping himself motivated, healthy and happy while racking up all the failures that ultimately led to his success. Dilbert, a clever gallows humor cartoon that allowed him to share his failures and frustrations with the world, has been in circulation for nearly 30 years. https://www.goodreads.com/book/show/17859574-how-to-fail-at-almost-everything-and-still-win-big?ac=1&from_search=true

  1. Million Dollar Consulting: The Professional’s Guide to Building a Practice (Alan Weiss)

Having now written 49 books on the subject, it is reasonable to regard Alan Weiss, Ph.D. as a consulting guru. If you are consulting, or thinking about packaging yourself as such and searching for clients, Weiss is recommended reading. His insights and recommendations are based on lived experiences of starting and operating an international management and organizational development firm.

As the book’s title implies, Weiss claims that he has consistently produced over $1 million/year in revenues. Although his background is in management consulting, his practical advice applies to all types of consulting. The book contains an abundance of ideas. The focus is on helping existing consultants take their practice to the next level, but he includes advice for beginners as well. https://www.goodreads.com/book/show/27289607-million-dollar-consulting

 3. Dare to Lead (Brene Brown)

Brown is an Oprah-endorsed author who gets invited to participate on the global mega-speaker circuit, TED Talks included. In the book, she dispels common myths about modern-day workplace culture and shows us that true leadership requires vulnerability, values, trust and resilience.

Brown asks the reader to think back to the most important leadership role one has had. Were you the captain of your high school football team or cheer leading squad? Or did you take on a leadership role only as an adult, such as overseeing a business unit with dozens, or maybe hundreds of employees? Whatever it may have been, there’s a high probability that you fell into one of the many leadership traps laid out in modern culture.

You may have thought you had to look strong and could never admit to a failure. You may have avoided telling the truth because you didn’t want to hurt someone’s feelings. These things often happen, especially in the office, because that’s how leadership is portrayed in our society. However, we usually figure out later, when it’s too late to make amends, that the exact opposite behavior would have yielded the best result. https://www.goodreads.com/book/show/40109367-dare-to-lead

  1. The Breakthrough Speaker: How to Build a Public Speaking Career(Smiley Poswolski)

“If you want to get paid to speak, you have to speak about something that matters and something that other people are passionate about. You need to speak about something that other people (specifically people that are in a position to book you to speak) are obsessed with. This is the single most important lesson to keep in mind when building a paid speaking business.”  —Smiley Poswolski https://www.goodreads.com/book/show/42039637-the-breakthrough-speaker?from_search=true

  1. Start with Why: How Great Leaders Inspire Everyone to Take Action (Simon Sinek)

“The limbic brain is responsible for all our feelings, such as trust and loyalty. It is responsible for all human behavior and all of our decision-making. It has no capacity for language.”  —Simon Sinek

When we communicate starting with the why, we speak directly to the section of the brain that controls decision-making and we use our limbic brain. In contrast the language center of the brain, the neocortex, allows one to rationalize those decisions. The limbic brain has no capacity for language and that is why it is so often difficult to explain one’s true feelings. When we make a decision that feels right, we frequently have a difficult time explaining why we did what we did. https://www.goodreads.com/book/show/7108725-start-with-why

  1. The E-Myth Revisited: Why Most Small Businesses Don’t Work and What To Do About It (Michael E. Gerber)

The book explains why 80% of small businesses fail and details how to ensure that your venture doesn’t wind up in that group. Gerber says that building a company based on systems and not just on the skill set and labor of a single individual is the secret because having great technical skills does not mean you know how to run a business. Gerber points to this misconception as the entrepreneurial original sin. Being a great baker, graphic artist, or writer does not necessarily make you an expert at running a business in that industry.

Once you start a business, you’re not just the person doing the technical work; you’re also the CEO, CFO, CTO, CMO and a whole bunch of other things. You must bring in customers, track and manage finances, create advertising material, answer customer requests, set a strategy and, and, and… https://www.goodreads.com/book/show/81948.The_E_Myth_Revisited

  1. Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (W. Chan Kim and Renee Mauborgne)

Are you tired of competing head-to-head with other companies? Do you feel like your strategy differs little from the competition surrounding you? You may need to redefine the rules of competition by defining a new strategy. The book describes two types of playing fields:

  • Red oceans, where competition is fierce in bloody waters, strategy centers around beating rivals, and wins are often zero-sum.
  • Blue oceans, where a market space is new and uncontested, and strategy centers around value innovation.Blue ocean strategy pushes company leaders to create new industries (well…!) and break away from the competition. In short, you create a blue ocean by focusing on the factors that customers really care about and discarding factors they don’t appreciate. This often attracts a new type of customer the industry hadn’t previously encountered and so the market grows.
  • The hard part is actually finding a reasonable strategy and executing it successfully. This book contains plenty of examples of successful blue ocean strategies, and it teaches you how to discover and execute them. https://www.goodreads.com/book/show/4898.Blue_Ocean_Strategy
  1. The Non-Obvious Guide to Emotional Intelligence (Kerry Goyette)

Being in touch with the emotions of those around you is key to developing strong, reliable relationships. Kerry Goyette’s guide to upping your EQ is a powerful tool for understanding how you can trnslate emotional skills into valuable business practices. The techniques included show you how to navigate change, find the root causes of problems and make better decisions.  https://www.goodreads.com/book/show/46681827-the-non-obvious-guide-to-emotional-intelligence?ac=1&from_search=true

9. The 7 Habits of Highly Effective People (Stephen Covey)

Increasingly, people look for quick fixes. They see a successful person, team, or organization and ask, “How do you do it? Teach me your techniques!” But these “shortcuts” that we look for, hoping to save time and effort and still achieve the desired result, are simply band-aids that will yield short-term solutions. They don’t address the underlying condition.

Covey advises us to allow ourselves to undergo paradigm shifts, to change ourselves fundamentally and not just alter our attitudes and behaviors on the surface level so that we can achieve true change. Start with a clear destination in mind. Covey says we can use our imagination to develop a vision of what we want to become and use our conscience to decide what values will guide us. More than 15 million copies of this classic have been sold.  https://www.goodreads.com/book/show/35895321-the-7-habits-of-highly-effective-people?from_search=true

  1. How to Win Friends and Influence People (Dale Carnegie)

Since it first appeared in 1936, this beloved book has sold more than 15 million copies. Dale Carnegie developed courses that became famous in the disciplines of sales, corporate training, public speaking and interpersonal skills, from networking to business best practices to Emotional Intelligence. Carnegie will teach you actionable skills such as six ways to make people like you, twelve ways to win people over to your way of thinking, nine ways to change people without arousing resentment and much more. https://www.goodreads.com/book/show/4865.How_to_Win_Friends_and_Influence_People?ac=1&from_search=true

 

Thanks for reading (and read a book very soon, please!),

Kim

Image: The Bibliophiles, 1879 Luis Jimenez y Aranda (Spain, 1845 – 1928), Private collection

Advertisements

Challenges That Impact the Solopreneur Enterprise

There are always challenges associated with operating one’s own business venture. Some challenges are formidable while others are merely annoying.  Many are common and probably inevitable.  Anticipation and preparation are the best defenses and can mostly be addressed in your business plan and its subsequent updates.

TIME CONSTRAINTS

Employees can, on occasion, walk into their office, close the door, and choose to be non-productive for most of the day.  Solopreneurs do not have that luxury.  We must meet or exceed the expectations of clients and prospects every time and hit a home run whenever we walk up to the plate.

Solopreneurs are often faced with a lengthy daily to-do list— client work to perform, a meeting to attend, a workshop to develop, a class to teach, an event with probable networking potential to attend.  Furthermore, there are business operations to maintain, such as financial management, marketing, prospecting and customer service. Every item is mandatory.

Over time, fatigue and a sense of being overwhelmed can develop.  Even depression can manifest. The successful Solopreneur must learn to manage and prioritize routine tasks and in fact consider removing some from the plate through outsourcing.  The judicious use of technological tools that save both time and money is smart management, as they help business processes and customer service operate seamlessly.

Click  here  and  here  to assess no-cost and low-cost apps that not only record the time you spend on project work, but also invoice clients and in some instances, accept accounts receivable payments online.

FOUNDER’S SYNDROME

The reality of a single-person shop is that services that generate billable hours cannot be delivered unless the founder is on the job and able to produce them. That means, if you’d like to attend a multi-day skills training session or take a one or two week vacation, be certain to allow adequate time to make key preparations that will help you to discreetly step away from center stage for a few days.

Tasks that you’ve outsourced, e.g. invoicing or bookkeeping, can continue as pre-arranged, but the production and delivery of the services that are the business must be put on hold until you return.  Learn how to prepare your business for your absence (in this case, a vacation) when you click here.

HOW TO GROW

You work alone and that is why you are called Solopreneur.  To promote the expression of your creativity and ingenuity, it will be wise to remove certain routine tasks from your plate, as noted above.  Grow your organization by giving yourself adequate time to concentrate on the money making functions of a business owner: client acquisition and retention, recognizing potential new revenue streams, including niche markets you might enter, effective and timely business strategies to implement, collaborations, beneficial partnerships and networking.

If you elect to continue to perform all administrative tasks as you work to grow and sustain the business, quality control might become an issue.  Spreading oneself too thin is inadvisable and may result in sub par work, diminished customer service, poor decision-making and fatigue. It is far more preferable to spend the money on outsourced help so that you can maintain or enhance the expectations of your brand.

In closing, I reiterate that when you write a business plan, you will be encouraged to acknowledge and prepare in advance for most of the business challenges mentioned.  The initial marketing plan, financial plan and business model will keep you from falling prey to client list, money management and growth challenges.

Thanks for reading,

Kim

Image: Mosaic depicting the Amazon queen Melanippe, courtesy of the Haleplibahce Museum in Urfa, Turkey.

 

Content Marketing Survey Findings

In 2016 the PA based marketing services company Clutch surveyed 300+ producers of online B2B content to obtain insight into how readers find, engage with and act on digital business-themed content.

The Clutch Content Marketing Survey 2016 interviewed 300+ expert content marketing writers from across the U.S. to determine how those who produce B2B content can most effectively create, publish and promote content for their organizations.  Key findings were:

  • 88% of online B2B content consumers read business content at least once a week
  • 45% of online B2B content consumers read content to stay current with trends in their respective industries
  • 20% of online B2B content readers use content to help make decisions about whether to purchase products or services
  • 45% of online B2B content consumers read about technology, 24% read about small
    business and 21% read about workplace/ HR topics
  • 87% of online B2B content readers visit search engines to look for business content
  • 85% of online B2B content readers commonly find business content on social media

Robert Rose, Chief Strategy Officer at the Content Marketing Institute in New York City, emphasizes that “Content marketing is a marketing technique of creating and distributing relevant and valuable information to attract, acquire and engage a clearly defined and understood target audience, with the objective of driving profitable customer action.” In other words, the goal of your content marketing posts, videos, podcasts and images should be to develop a relationship with your customers, using relevant content to win them over.

main goals for content marketing

Furthermore, the expert content marketers surveyed advised that target audience personas are the most important attributes to consider when developing your content marketing strategy. “Most businesses have an idea about their audience and how it is segmented but, when it comes to taking those audiences into a content marketing strategy, they often flounder,” said Quinn Whissen, Marketing Director at Vertical Measures, a content marketing agency in Phoenix, AZ.

types of content enterprise companies create most frequently

Although challenging, clearly identifying and defining target audience personas is the foundation of an effective content strategy.  Understanding who will read the content determines the information to include and the best platforms for presentation.

content that performs best

Content marketing can be an effective tool for creating brand awareness and generating leads that convert to sales or billable hours, but realize also that it can generate benefits that go beyond a page one article ranking in Google or driving traffic to your website. Consider how content might help your organization to meet key business objectives.  How can your content increase sales?”

HubSpot, a marketing services firm based near Boston, MA, found that the more marketing content a potential customer reads on the company website, the more likely s/he is to buy their software.  Jeffrey Vocell, Senior Manager of Product Marketing, reports that HubSpot follows up with a customized email after a user reads three or four articles.

Metrics matter

  • Expert content marketing writers prioritize their brand story, mission statement and content types when creating their content strategy
  • 49% say that brand awareness is their main goal for content marketing
  • Research/original data, infographics, product reviews and blog posts are the most effective types of content
  • Metrics that reflect sales (32%), content readership (29%) and lead generation (29%) are more important than content sharing metrics (10%)
  • Paid advertisements outperform organic efforts when promoting and distributing content

content marketing metrics

Survey findings yield three core recommendations for content marketing:

  1. Tailor all marketing content to specific audiences.  First identify the different reader personas, then create content that matches their needs, interests, aspirations and behaviors.
  2. Identify the business goals you aim to achieve and consider how your content can enable that. For example, if you want to obtain more links back to your website, be sure to generate research/original data, infographics, product reviews, videos, blog posts and case studies.
  3. Spend less money on content creation and more on distribution.  Creating high-quality content is useless if you don’t dedicate enough effort or resources to getting it in front of your target audience.  If you can’t afford paid advertising, focus on media outreach, such as traditional journalists and influencers.

tactics used to distribute content

Regarding the most effective content distribution methods, the survey found that expert content marketers most often use paid advertisements  including pay-per-click (71%), organic social media (70%) and traditional marketing channels (69%), i.e. print media, TV, radio and direct mail.

Distribution and promotion of the content must be customized to the target audience.  For example, “If content distribution and promotion is done for recent college graduates, it has completely different channels and focuses, compared to content aimed at executives,” explains Andrea Fryrear, Chief Content Officer at Fox Content of Boulder, CO.

Finally, remember that content marketing can deliver benefits to your company that go beyond achieving a page one Google listing for an article you’ve posted or driving traffic to your website. “We don’t simply want to have an impact on marketing, but rather on the entire business unit within that organization,” said Chad Pollitt, Vice President of Audience at Relevance, an online content marketing publication based in MD.

Thanks for reading,

Kim

Photograph: Vaudeville and film star W.C. Fields as a carnival sideshow barker in Two Flaming Youths (Paramount Pictures, 1927)

Networking Starts With A Conversation

IMG_0018Happy Fourth of July! You may engage in celebrating today’s holiday as a party host or guest and either way, you’ll have the pleasure of expanding your social and possibly also your professional network.  From backyard barbecues to weddings, the meet and greet is on, for business or pleasure. Whether you are an introvert or an extrovert, you will feel more at ease if when you encounter new people you can draw from a little repertoire of conversation starters that you can easily recall.

Here’s a list of conversation starters designed to make your summer celebrations a little more fun.  Keep in mind that when you approach a party guest, or a guest approaches you, smile and show that you welcome that person’s presence and you’d like to converse. While you might encounter the rare monosyllabic type who is too awkward to make small talk, in which case you can smile and slip away as quickly as socially acceptable, most partygoers and attendees at social or business functions are primed to meet and get acquainted with interesting people.  They’ll meet you halfway and together, you’ll create the conversation. You will likely be joined by others and that’s all for the good.

  1. Hi, I’m ______; and you are…? Nice to meet you! Do you live in the neighborhood ?
  2. Hi, I’m ______; and you are…? Nice to meet you! How do you know (the host)?
  3. Have you been having a good summer, so far?
  4. Do you like the summer holidays better, or winter holidays?
  5. Are you a summer vacation person, or a winter vacation person?
  6. I’m walking over to the drink table.  Can I bring you something?
  7. The buffet looks delicious (holding your plate and drink)—may I sit here?
  8. As you see, I’m checking out (the hosts’) books. They have a lot of good titles. Do you see something here that you’ve read?
  9. Who is that singing? Could it be Sarah Vaughan?
  10. OK, pop quiz–How many oceans are there on planet earth?

I hope you meet some good people both today and at the social and business functions that you’ll attend this summer and that you’re able to build one or two relationships that outlast the events you attend.  Relax and allow yourself to have a good time.

Show interest in the people you meet. Tailor your conversation topics to those with whom you are speaking. Don’t monopolize the conversation. Listen more than you talk and listen actively.  At some point in a lively conversation you may want to jump in with a witty retort, but try to avoid interrupting and one-upping.

Finally, don’t over-share and if you meet someone with whom it appears there could be a mutual interest to talk business, exchange cards and plan to follow-up a day or two after the party.

Thanks for reading,

Kim

The Tall Ships Parade in Boston Harbor. June 16, 1017    Photograph by Kim Clark

 

 

LLC vs. S Corp: Which One for Your Company?

At any point in the life of your business venture, you may choose to create for it a separate legal entity.  Creating a separate entity is essential for those businesses where the potential for liabilities associated with normal operations is an issue.  There are also potential tax advantages that derive from the establishment of a separate business entity.

There are two categories of business legal entities: corporations, Chapter S and C, and Limited Liability Company (LLC). Corporations are tax structures and are regulated by the federal government through the IRS.  LLCs are created and governed by the states.

Founded in the state of Wyoming in 1977 and now available in all 50 states plus Washington, D.C., the LLC is a comparatively more lenient structure than either the S or C Corporation and for this reason, it is the preferred entity for the majority of small businesses and Solopreneurs.  Unlike the S Corp, LLC members, as they are called, are unrestricted in number and are not required to be U.S. citizens nor must they reside here, with the exception of the Registered Agent, who receives official correspondence such as tax and legal documents on behalf of the entity and must reside in the state where the LLC was formed and operates.

Multi-owned LLCs are advised to develop an operating agreement (not required in all states) that along with the percentages of member ownership also specifies member titles and responsibilities, such as Managing Partner and Registered Agent.

In the LLC, whether single or multi-owned, all business income and expenses “pass through,” meaning they are reported on the members’ tax forms.  There is no double taxation of business and personal income for single-owner LLCs, but multi-owner LLCs must file U.S. Form 1065 Return of Partnership Income to report profits and losses.  All LLC owners must pay the self-employment tax, due quarterly (multi-owners pay on their share of entity ownership).

Real estate investors will find that the LLC is the only available legal entity option that allows passive income (rents) to exceed 25% of gross annual revenues.  A big added bonus of real estate LLCs is the ability to create a separate LLC for each property owned, thereby shielding the owner(s) and other properties held from cross-liabilities.

A drawback for owners who plan to attract investment partners (as opposed to those partners who operate the business) is the lack of stock, preferred or otherwise, and this represents a deal-breaker for venture capitalists, who do not invest in businesses structured as LLCs.  Even smaller investors prefer stock certificates to LLC member shares.  A positive for this structure is that it’s much less expensive to set up than are corporations, costing just a few hundred dollars for the filing (plus the initial set-up fee charged by your accountant or attorney).

If you are considering establishing a legal structure for your business, consider your plans for business growth and also your exit strategy as you do.  Growth may cause you to seek money partners, which could point you in the direction of the S Corp.  If you see venture capital or an IPO in your future, then only a C Corp will do.  If you might want to sell your company to employees as your exit strategy, or if attracting key C Suite level talent to your team would also point you toward the corporate structure, so that stock can be offered as an incentive.  If some of your business partners live outside of the U.S., or if acquiring real estate holdings is your business model, then only the LLC will be allowed.

It is strongly recommended that you consult with a business attorney or accountant before you file legal entity paperwork at the Secretary of State’s office.

Thanks for reading,

Kim

Business Structure Face Off: S Corp vs. LLC

Whether you are preparing to launching a new venture or you’ve been operating as a Sole Proprietor (Sole Trader in the U.K.) for a few years, you may decide to establish a business legal entity for the enterprise. The benefits of creating a business legal entity, whether you operate as a Solopreneur or participate in a partnership that consists of independent professionals who occasionally collaborate (like dentists or physicians) or co-owners who run a business together, are:

1.) protection of business assets from (certain) financial liabilities

2.) reduced tax liability

Entrepreneurs and Solopreneurs who have no worries about legal actions that might arise from bankruptcy or other business debts (or client litigation) may comfortably operate as Sole Proprietors.  Business owners of any kind, plus the self-employed, may at some point decide to organize their venture as a corporation (either the original C Corporation or subchapter S Corporation) or a Limited Liability Company (LLC).

FYI in the U.S., corporations are tax structures that are overseen by the IRS (a federal entity) and LLCs are created and governed at the state level.  Application to form either entity is made at your state’s Secretary of State office or in Washington, D.C. at the D.C. Corporations Division.  In the U.K., business legal structures are obtained through and governed by your regional Companies House.

Regarding protection from financial liabilities derived from a business legal entity, actions that can be construed as negligence are considered to “pierce the corporate veil” and neither a C or S Corporation, nor an LLC, will shield negligent business owners.  But if the business goes into bankruptcy or serious debt, only business assets can be applied to cover those debts and if that amount is insufficient, the owner(s) will not be forced to use personal assets to pay what is owed.  Furthermore, the entity will not be liable for debts that exceed the value of the owner’s investment in that entity.  In other words, if an owner’s investment was $20K, that’s all the owner will be liable for, even if $30K is owed.

Now for a look at potential tax savings.  Unlike the older U.S. corporate structure, the C Corporation, there is no simultaneous tax of business and personal income in the S Corporation (i.e., no double taxation) and all the usual business deductions that you’ll find on IRS Schedule C  may be taken.  The S Corp allows owner(s) to pay themselves and all employees with W2 salaries, meaning that owners avoid the self-employment tax if it’s decided that you work for the corporation (instead of yourself).

A portion of what can be reasonably considered excess net profits can be paid to the owner(s) as a dividend distribution, in addition to the W2 salary, and the distribution is taxed at a much lower rate (from zero- 15%, depending on circumstances) than the W2 earnings.  This is one way that the rich get richer, Baby!

The owner’s salary must be considered reasonable for the industry, because the IRS will be looking.  Contact a savvy tax accountant so you’ll refrain from paying yourself $20K annually when $80K would be closer to the minimum for your industry and business Income Statement.  Shenanigans like that can cause the business to lose the S Corp status and land you in double-taxation-ville.

If business income is not so flush, your accountant may recommend that like a Sole Proprietor, S Corp owner(s) should choose the “pass through” tax format, where all income and expenses appear on the personal tax form(s) of the owner(s).  Be advised that partnership S Corps are taxed like a partnership and S Corps that elect the pass-through tax option will pay the quarterly self-employment tax on reported income.  Corporate taxes are filed no later than March 15, earlier than the rest of us.

In both the C and S Corp structure, the owner(s) is a stockholder, and multiple owners are assigned shares of company stock and receive a portion of business profits and losses according to their percentage of ownership. The S Corp allows only one class of stock.

On the downside, the rules for maintaining a corporate entity of either form are somewhat strict. S Corp owners must be citizens or residents of the U.S. and their number is capped at 100.  Every corporation is required to have a board of directors or officers (the owner and a Recording Secretary to take the annual meeting minutes, at least) and even solo corporation owners must hold an annual stockholder’s meeting.  Financial documents must be in good order. Minutes must be taken and kept on file.

Because there is only one class of stock allowed, those who plan to seek venture capital or take their company public must form a C  Corporation, so that the preferred stock that investors demand will be available.  Finally, the legal and accounting fees, as well as special state taxes where they apply, make the choice of either a C or S Corporation a four-figure annual commitment, so consider your choice of this option prudently.

Next week, we can resume the discussion with a look at the Limited Liability Company structure.

Thanks for reading,

Kim

 

Plans For Your Business

Whatever the health and condition of your Freelance business venture, you will at some point benefit from planning.  Business planning of any type provides a roadmap that will help you to successfully achieve your business goals.  Business planning can be instituted when sales are tanking and you need to find a way to improve billable hours.  Or you may have decided to aim for larger assignments  or roll out new services and need to figure out how to make it happen.

I’ve taught business plan writing for 7 or more years and I’ve also developed a one-day business plan writing workshop. As I see it,  the process of writing a business plan gives the writer (or the team) many opportunities to think things through and  get the magical thinking out of one’s head. The business plan shows us first,  if the dream is potentially viable and second,  how to make the dream a reality.

The plan you write will depend on what you set out to achieve.  If you’re launching a start-up that will involve significant outside investment,  then you’ll need a very detailed plan that focuses on financial projections;  marketing plans that delve into customer acquisition, the competitive landscape, the product or service launch, messaging,  sales distribution; and operational aspects such as manufacturing,  staffing and quality control.  Freelance consultants will mostly focus on marketing, in particular defining the target clients,  client acquisition; providing the right services; appropriate pricing; and the budget to pay for their marketing strategies.

Whether your plan will be used to launch a big venture and attract outside money,  or is a boutique style service provider, include the following elements in your plan.  Even if you’ll be writing what amounts to an extended marketing plan used for a one-person shop,  it will be a good exercise to include these elements, because you’ll be encouraged to think seriously and strategically about your mini-enterprise.

EXECUTIVE SUMMARY

Present the business mission statement. Include as well the date when the business was formed; key management personnel; your unique credentials or experience that make you especially suited to start and successfully run the venture; the business legal structure (LLC, Sole Proprietor, or Corporation); the products and services; one or two key competitive advantages (maybe you have a patent?); sales projections; and the amount of capital needed (if you’re looking for investors).

BUSINESS DESCRIPTION

It’s traditional to present a brief description of your industry and its outlook,  nationally and regionally. give the details of your products and services and competitive advantages. Identify whether your venture is B2B, B2C, or B2G. If you hold a patent,  detail the competitive advantages that it will convey. Have there been any technological advances that will help or hinder your business?  Divulge here.

MARKETING

The category is a big tent that encompasses sales, product or service distribution,  competitors, advertising,  social media, PR,  networking,  branding, customer acquisition and pricing. The plan written for a mall organization will essentially consist of an extended marketing plan, because for Freelance consultants,  success hinges on identifying and reaching clients who will pay as well as pricing the services advantageously.

FINANCING

Whether you’ll self-finance because you’re wealthy enough,  or the venture is small and  not especially demanding of capital investment,  you nevertheless need to know with a reasonable degree of certainty how much you’ll need to spend to carry out the plan ( that could be a new product, or the purchase of something big, or a marketing plan, for example).  If your strategy is to attract investors,  they’ll need to be convinced by your projected sales revenue figures,  because they’ll want to know when they’ll be paid back or know when to expect profits if they are made co-owners of the business.  A break-even analysis, projected income statement, projected cash-flow statement and projected balance sheet are required by those who will need significant money.

OPERATIONS

How will day-to-day business processes function?  Tell it here,  along with providing the organizational chart,  the business location,  the method of producing that which you sell (if you are,  say,  a Freelance book editor or  graphics specialist,  you produce the service yourself),  your sub-contractors (if you are a special events organizer,  who is your usual caterer, florist,  limo service, etc.?) and quality control methods.  This element is about logistics.

For more information on writing a business plan,  visit the Small Business Association website https://www.sba.gov/tools/sba-learning-center/training/how-write-business-plan

Thanks for reading,

Kim

 

 

 

 

 

 

 

 

 

 

2015 Year-End Tax Planning Thoughts

It’s mid-November and time for Freelancers to think about how much money we will hand over to the tax man this year. Tax planning is usually at top of mind as the year ends, but be advised that obsessing over taxes is not always useful. New York City CPA and small business tax specialist Michael Hanley recommends that you take a breath and consider the impact that aggressive tax strategies would have on your financial circumstances.

Hanley cautions small business owners and Freelancers against inflated spending on business expenses just to give themselves a lower tax bill, because tax deductions are not a dollar-for-dollar benefit. Every dollar written off as a deduction yields on average only 30 cents in tax savings (depending on your tax bracket and legal structure of the business). If you have a big-ticket item to buy and you anticipate that this year’s income and next year’s will be about the same, then buy when you can get the best price on the item, be it in this year or next. Your savings could be worth more than the tax deduction.

Hanley also addresses the apparently common tactic of zeroing out one’s business bank account by December 31. Paying for business expenses, adding to your retirement account, or purchasing business equipment or supplies will likely make the zero balance bank account tactic work. Paying yourself a bonus, taking a shareholder distribution if your business is a corporate entity, paying down your credit line at the bank, or paying off business credit cards will not give you legitimate tax deductions.

Professional development education is tax-deductible, so if you’re holding money and there is a potentially useful workshop or symposium offered late in the year, do register and attend. You might also consider throwing a Christmas party for clients, prospective clients, referral sources and selected business colleagues (meaning, no one who might steal a client!). Your Christmas party could turn out to be a networking bonanza that creates billable hours for you in the coming year (and beyond).

Clients and referral sources could come away with more business as well and that will make their relationship with you more valuable to them. If you can grab a big table or a private room in a restaurant that needn’t be fancy, but has a good reputation, then plan your party with Evite, even if a Monday night is all you can reserve.  Allow 7-14 days for the RSVP—last minute invitations can be just fine. Spontaneity has its charms, especially at this time of year.

To make sure that the social swirl and networking will be effective, invite 30 and expect 12 to show. Set out five or six finger foods and arrange for a signature cocktail. If someone asks for beer or wine, let them have it. Your party can run 6:00 PM – 8:00 PM. Most people will have two drinks, the restaurant will tell you how much food to set out. You will probably spend $60/pp, meaning that a table of 12 will cost less than $750.

You might also consider inviting your Linked-In connections to a party. It would be a wonderful way to introduce your colleagues to one another and billable hours could be created as a result. You may want to make this a pizza, salad, beer and wine affair, but so what? It’s a great idea, regardless. If you have 100 connections, plan on 25 showing up.

If it’s too late to host a party this year, the cards and stamps used for the December greetings that you’ll send to clients and referral sources are tax-deductible. If you act now,  there will be time to order specially printed cards for your business (you will still add a personal message).

Thanks for reading,

Kim

Industry Growth Trends 2015 – 2017

Growth  is always on the minds of entrepreneurs,  business owners and Freelance consultants.  Growth is essential for the survival of a business and it can take many forms,  from an increase in current and potential customers,  to a greater number of employees,  higher profits,  or the number of products or services available for sale.  Here are projected industry trends and B2B small business growth projections through 2017 that are based on expected demand,  meaning that there will likely be more current and potential customers ready to spend money in these industries.   The list was compiled by Jackie Nagel,  author of the blog “Oh, The Places Where Your Small Business Can Grow”.

Industries expected to outpace the overall growth of the US economy are:

Technology    42% growth projected

Health care    28% growth projected

Finance          14% growth projected

Retail              14% growth projected

HR Services

Human Resources is an exceptionally broad field and all aspects are expected to show growth over the next 12 – 36 months.  Executive search,  benefits management,  payroll management,  training/ professional development/ executive coaching and compensation specialists can all expect many opportunities to expand their client lists and generate more billable hours.

Internet Security

Freelancers and small business owners do not always pay attention to the many occurrences of internet data security breaches that hackers have visited upon several large corporations.  Be advised that recently,  I was one of many who received a phishing attack email that a hacker sent illegally from the address of a colleague.  The email address lists of all recipients were at risk.  No one wants the embarrassment of a hacked email bearing our business name sent to our client list.  Internet security risks are a real concern and the need for protection is growing.  It’s time to call in a professional and set up a firewall.

Marketing Services

Small business owners often have ambitious marketing plans,  but execution can be a sticking point.  Freelancers who specialize in helping small businesses to launch their marketing strategies will be needed to bridge the time,  talent and strategy development gaps faced by many small organizations,  for-profit and not-for-profit.  The demand for social media strategies,  videography and podcast development,  website development and content marketing expertise will likewise remain strong.

Technology Services

Small business owners and Freelancers continue to explore the benefits of cloud computing for data storage,  real-time document and secure data sharing and videoconferencing.  Entrepreneurs are in search of technologies that will help them to quickly scale-up a business.  Which apps will help entrepreneurs to efficiently grow and manage their enterprise and can it all be mobile?  Demand for technological advances such as 3 D printing and online eyeglasses and contact lenses that let customers virtually try on lens ware are big new entries to the scene and the trend will be upward.  Video game and app development continues to lure talented techies into entrepreneurship as does television and home theater installation.

Green and sustainable building construction

Architects,  structural engineers,  general contractors,  electricians and manufacturers of solar panels are expected to have lots of business through 2017.  Saving money on heating and electricity with energy-efficient buildings are big priorities that real estate developers,  current homeowners and prospective buyers are willing to pay for.  Even landscapers get into the act when they design attractive alternatives to water-sucking lawns.

Boutique mind/ body fitness studios

Overweight and over-stressed Americans are ever optimistic about a new regimen to cure what ails us.  Boutique cycling,  personal training, Pilates,  yoga and meditation studios will continue to proliferate in metro areas.  These studios are less expensive to operate than traditional fitness centers primarily because participants do not perform aerobic routines in big,  mirrored studios,  nor are lines of treadmills and ellipticals needed.  Rather,  participants are confined to a mat,  stationary bike or compact training studio that is stocked with  a well-curated choice of exercise equipment.  Boutique fitness studios even use proportionately less water than traditional fitness centers because participants typically shower at home.

Thanks for reading,

Kim

 

 

5 Start-up Must-dos

Peter Russo, Director of the Entrepreneurial Management Institute at Boston University,  wisely points out that avoiding mistakes is not quite the same thing as doing the right thing.  Avoiding mistakes is being on the defensive,  the yin side of the equation.  Doing the right thing is proactive,  on the offensive,  the yang side of the equation.  Here is Peter Russo’s list of essential must-dos for those who plan to launch a business venture.

1.   Know your goals for the venture.  “A lot of people see an opportunity without ever asking themselves what they’re doing it for.  Are you trying to make a quick buck?  Create a legacy?  Afford a certain lifestyle?  It’s critical that you know from the beginning what your goals are,  because everything else is going to revolve around that.”  Launching a full-time venture that is expected to grow exponentially and generate for the owners ever-expanding  profits is not always a goal.   Some people start a business to generate some income by leveraging a creative ability.  For many years my father,  who had a day job,  worked in a landscaping venture that was started by my mother’s uncle after he retired.  The two worked evenings and Saturdays for about 15 years.  My father and great-uncle understood that it was not practical to attempt to expand the venture into a full-time endeavor,  for any number of reasons and so they didn’t.  But they made money and that was their goal.

2.   Recruit and hire the best people.  “It sounds almost like a cliché to say that I’d rather have an A team with a B idea than a B team with an A idea.  The right team can fix a lot of problems.  If you don’t have the right team,  you don’t have much of a chance.  Get the best available people at the time.”  Hiring friends and family who need a job is not the way to staff your start-up.  You need experience and talent,  creative and resourceful professionals possessed of an excellent work ethic and who are a good cultural fit for the organization.

3.   Develop a forgiving strategy.  “Things are going to go wrong.  They’re going to be harder,  take longer and cost more money than you think.  You have to have a strategy to survive.  A lot of people put together a plan that will work only if everything goes right.  It’s not going to.”

4.   Be honest with yourself.  “Acknowledge shortcomings,  weaknesses and problems immediately.  Do not ignore them or try to talk yourself out of them.  Address them head-on.”  So if you have production problems,  distribution or quality control problems,  fix your system.  If business is distressingly slow,  then re-think your business model—do you have a viable concept?  Or might you have been too optimistic about market potential,  or your ability to enter and win customers?  Should you step up your marketing efforts?

5.   Commit to the business.  “You can’t really do anything significant without fully committing yourself to it.  A lot of people try to dabble.  They think they’ll do it part-time and see how it works out.  If you plan to be successful,   you have to commit.”  Refer back to #1—what are your goals for the business?  Plenty of people operate successfully as part-time caterers,  musicians,  wedding photographers/videographers,  website designers,  etc.  They start a business to generate some money by leveraging a creative ability.  It takes a great deal of energy,  discipline and focus to launch and sustain a part-time business while simultaneously working a full or part-time job.  You must commit to the business if it is to succeed.

Thanks for reading,

Kim