Posted on Nov 4, 2011 in Small Business
One of the mistakes that I see people make when they decide to start their own business is that they just do what they have always done. What I mean by that is that they take what they have done working for someone else and go into business for themselves. Now, when I say this is a mistake what I really mean is that doing this without proper thought is a mistake. Starting a business means some hard work.
Quite a lot of people start businesses alongside their day job, this is a great idea because it gives you a chance to get the business up and running and overcome some of the obstacles before it becomes your main source of income. If you are going to do that then you will definitely be putting in some time and effort. I started my first business while I was working full time and it was a lot of effort. And that’s why it’s important that you start your business doing something that you genuinely enjoy doing. I don’t mean something that you’ve done for years, you’ve managed to do well at, and you don’t mind doing. I mean something that you feel genuinely passionate about. Something that makes you feel happy when you do it. The reason for this is simple.
It’s much easier to motivate yourself to put in the extra effort, to overcome the obstacles, to spend the evenings or weekends getting the business off the ground, if it doesn’t feel like work. And if you love doing it then it doesn’t feel like work, does it?
This is the reason why so many people who start really successful businesses do it with something that they already do as a hobby. I once read an article by the writer Stephen King in which he said that he doesn’t write for the money. He writes because he loves telling the story. He also said that, even if he never got paid for writing again, he would carry on doing it. I think that’s a great test.
Think about what you are planning to do for your business. If you had all of the money that you needed, and never needed to earn anything ever again, and if nobody was going to pay you for it Would you still want to do it? If you can answer yes you have a true passion and love and you will be strongly motivated to succeed. If not, then ask yourself if you need to think about doing something else. Look at your hobbies and pastimes. Look at previous careers.
Consider things you enjoyed doing when you were younger, perhaps even in your school days. Consider the things that you have always wanted to do but have never got around to. What is it that you feel you would do if you were completely free of any money constraints? What would you do if you knew you couldn’t fail? What would you do as a hobby if you were a multi-millionaire? Do that now. Grab a piece of paper and answer those questions. Now have a look at the answers… What do they tell you? If you can do what you love, and get paid for it, you will never have to ‘work’ another day in your life.
Posted on Oct 29, 2011 in Small Business
You want to open that store or small business you always wanted to own. You have clearly defined your concept, and identified your ideal customer. You have tested your concept and the feedback is positive. You know what you want to sell and what price. Now you have to find the suppliers who can supply your products. Sounds easy, Right? Nope. Sorry.
Maybe the supplier has an exclusive arrangement with one of your competitors. Maybe the price you thought you could get your products for was a ‘tad’ off compared to your projections in your business plan; and that ‘tad’ forces you to raise your prices; and that increase may not ‘fly’ with your customers. Maybe you are not sure that the supply will be consistent. Ouch! Having a great product at a great price NOT arrive at your back door when you need it is not good for business.
So what do you do? The first thing you have to do is make up a “spec” for each item you want to buy. Let’s take a sweatshirt as an example. You have to know the following:
- What sizes do you require?
- How about colors?
- Blend? 50/50 cotton/poly or 100% cotton?
- Weight? Lightweight or not?
And you have to have a “spec” for each and every item you want to sell. How can you get a quote from a supplier if he doesn’t know EXACTLY what you want? Think of looking for a car. You want it with this and that and in this color with this type of interior. The easier you make the supplier’s job the more likely he is going to want to work with you.
Once you have found the supplier, you now have to negotiate price and terms and although the two are mutually exclusive, the one has impact on the other.
Let’s talk price first. You are the customer here. You can refer to your financial forecast and give the supplier an idea of what sort of volumes you are projecting in your business plan. That will give the person a measure of confidence to see that you have really thought things through. Talk exclusivity. You may not get it; but it’s worth a stab. Ask for a limited geographic exclusivity so the store down the street can’t carry the same products you feature. Try and get the price that you need and be honest. Don’t pretend to be the ‘big’ guy. Be humble. Tell him your price point and make him meet it if he wants the business. Don’t be afraid to say “no”.
Secondly let’s talk terms. The price is one thing. The time you have to pay for the product is something different. The earlier you pay the better price you should be able to negotiate. Net 15 will garner a discount over net 30. Use your power. Use your ability to pay to your advantage. If you have budgeted properly – and you will have in your business plan – you’ll have money set aside for initial purchases and you will use that money judiciously to ensure you get the price and terms you need to keep your costs in line. Well done.
Posted on Oct 25, 2011 in Small Business
The Minority Business Development Agency, also referred to as MBDA, is an agency operating within the United States Department of Commerce that’s primarily responsible for the promotion of growth and competitiveness of the country’s minority-owned businesses.
The MBDA has constituted the Minority Business Enterprise Centers (MBEC) Program wherein it aims to assist minority-owned business establishments by supplying them with electronic and one-on-one business development services for a reasonably nominal fee.
The program is designed and created to provide a vast range of services to its clients, including initial consultations, and identification and resolution of specific business issues that could somehow lead them towards the right direction, which in their case is towards the improvement and growth of their business in the marketplace.
In addition, the Minority Business Enterprise Centers will have to provide clients with advice and counseling in the fields of business assessment, strategic business consultancy, access to capital and markets, preparation of financial packages, business planning, information and management, marketing, assistance, engineering, production, identification of probable business opportunities and construction assistance.
The MBDA has designed the MBEC program to provide clients with management and technical assistance, and at the same time prohibit them from offering the clients with loans and financial aid.
The MBDA will get into cooperative agreements with eligible applicants and will provide funds ranging from $155,000 to $400,375.
Institutions or organizations will be considered qualified for run a Minority Business Enterprise Center if they are of the following:
a) Nonprofit organizations
b) For-profit firms
c) State and Local governments
d) Native American tribes
e) Educational institutions
The Catalog of Federal Assistance has outlined that the beneficiaries of the Minority Business Enterprise Centers include Americans, Native Americans, Aleuts, Asian Indians, Asian Pacific Americans, Eskimos, Hasidic Jews, Puerto Rican, and Spanish-Speaking Americans who owns small businesses.
The Department of Commerce, the primary agency funding the MBEC program, is the country’s principal agency accountable for ensuring the expansion and advancement of the economy and technological advancements through vigilance in international and domestic trade policies.
The MBEC program is very much essential to the Minority Business Development Agency and the Department of Commerce because it enables them to realize their objectives and mission as an agency and an institution.
