Inspiration and Information for Starting Your Business

The Pop-Up Sensation: 5 Benefits of Pop-Up Stores

Open-for-businessWhen I think of the pop-up store operation, I think of Halloween Express. The costume shop and everything-Halloween franchise appears, of course, around Halloween,  in once-empty spaces in malls and in gigantic tents in parking lots.

And then Poof! … They’re gone.

These days, pop-up stores seem to be gaining ground - even with the big brands. Just look at Pop Tarts World in New York City’s Time Square. The sweet treat discovered a temporary home there earlier this month.

Dan Adamson and Brian Goldenman, founders of Farm Boy & Girl, also started out as a sort of pop-up. They didn’t go the route of testing their product at the mall. They went to where their particular product would get the most play – the Minnesota State Fair – one of the largest gatherings of farm community members and livestock owners in the nation. They were peddling the country version of Abercrombie merchandise - T-shirts and hats with slogans featuring farm flair. Needless to say their fairgound test market cultivated a hit!

Virtually any retailer can utilize pop-up stores to spark some excitement and generate buzz around a new product launch. Pop-up stores are ideal for checking the consumer pulse and seeing how the public reacts to a new product.

With the holidays right around the corner, the pop-up location might not be such a bad idea. Here are five benefits of pop-up locations:

  1. Minimal risk. Perfect for those of you out there afraid of commitment, pop-ups are the way to go. You don’t have to commit to a long-term lease in most cases and are likely to lease month to month.
  2. Holiday traffic. When you open up your tacky holiday sweater store, please let me know. My holiday mission is always to find the scariest and the tackiest. If you already dabble in retailing holiday-specific items, you may use a temporary location to unload some merchandise to spike sales without creating additional overhead expense.
  3. Test lab. Order a small amount of inventory to try out on customers. The pop-up location serves as a perfect active laboratory for experimentation with changing inventory or testing new product in a new market.
  4. Brand awareness. Get your name and merchandise in front of people by pinpointing a high-traffic area temporarily.
  5. Size. If you’re sure you’d like to open a new site, you can experiment with different-sized stores to audit how much space you actually need.

Have you previously opened a pop-up store or are you planning on one for the holiday season? What advice would you give to small business owners looking to start their own business by opening a pop-up?

3 Traits a Spider and an Entrepreneur Have in Common

spider

No need to offend any insect lovers out there. But I am certainly not one of them.

One of those hairy spiders has chosen my Mini Cooper as his new home. Every day he builds a web on my outside driver’s side mirror, and every day, I knock it down. He has survived several power washings and rains. I’ve only seen him once, but he is determined to call my mirror “home.” The amazing thing  is that he is not discouraged by my attempts to destroy his webs. He continues to build more intricate ones each time.

He really is just like an entrepreneur.

Think I’ve finally lost it? You’ll see the connection. Here are three traits this little creature and perhaps you have in common:

1. Passion. Even though he could pick up and move to another vehicle or find a more appropriate place to set up shop, he is passionate about my Mini Cooper. (But then again, so am I.) He is also doing what he enjoys, spinning a web. Entrepreneurs also possess a passion that drives them to get out of bed every day, strongly believing in their product or service.

2. Resilience. Recognizing there are going to be difficult times, you need to be resilient. That spider is not discouraged by my daily destruction.

3. Willingness to Work Hard. That spider surely has a vision of what it hopes to accomplish – and if it’s to make me aggravated, mission accomplished! Entrepreneurs need to be dedicated to planning and execution to achieve their goals.

Take a look at some of these articles for more information in helping you decide if self-employment or entrepreneurism is for you:

http://www.entrepreneur.com/homebasedbiz/article200730.html

http://boss.blogs.nytimes.com/2010/08/31/top-10-reasons-for-entrepreneurial-success/?ref=smallbusiness

What other traits would you add to any of these lists in working toward success as an entrepreneur?

Where Is the Small Business Jobs Recovery?

Recession-photoAs is becoming more apparent day by day: This is not your typical economic recovery.

Each new day’s fresh headlines bring another statistic or study showing the latest negative economic trends: job creation lagging, new jobless claims at new records, dreary GDP growth numbers revised down, new and existing home sales collapsing. Pick your poison.

But most troubling of all: We seem to be in uncharted territory. When you look back at the history of recessions in the United States, most downturns were well into recovery by this point in the cycle. In fact, two years after the start of a typical recessionary period, history shows economic growth is usually very rapid, often twice that of “normal” growth periods.

This rapid growth is to be expected because businesses that emerge from recessions are leaner and more competitive, after cutting expenses and reordering priorities. Capital moves from less productive uses to more productive ones, and economic rebirth takes place.

After all, recessionary cycles, painful they may be on the micro level, are really normal parts of macro-economic business patterns. Think of a typical dieter – when a person’s weight gets too high, he/she will diet and lose weight to get back to fighting trim. And the business cycle is no different. It is natural that during good economic times businesses get a little fat. Eventually, the diet must come. Then afterward, the dieter is better off.

Well, businesses large and small have been dieting for a couple of years. But the recovery has not materialized as expected. History tells us that small business is supposed to be the engine of job growth after a recession. So people are wondering what’s going on?

Many critics point to recent uncertainty in the tax and regulatory environment for small businesses:

  • State tax rates have gone up dramatically in recent years because these governments must balance budgets and have few options.
  • The federal government, of course, can borrow and print money, which makes people worry about future inflation.
  • In addition, income tax rates will rise automatically in 2011 without new legislation and increased rates on payroll, capital gains and dividend taxes are on the horizon.
  • The biggest entitlement program, Social Security, needs funding soon because the IOUs in the lockbox can’t be cashed in – the feds are already broke.
  • And the newest entitlement program, health care reform, promises to saddle businesses with increased regulation and costs.

All in all, the critics claim it’s a “perfect storm” of conditions depressing job growth and economic recovery, especially among small businesses. Given so much uncertainty, businesses are taking a wait-and-see approach about investing and hiring, preferring to remain on the sidelines.

But while these recent actions are certainly not helping the recovery, a new study lays quite a bit of blame on an older problem – the bursting of the  housing bubble that started the downturn in late 2007. When people could no longer afford or didn’t want their homes due to falling prices, and then job losses a year later, it triggered a wave of failed investments across the financial sector.

Since then, the financial sector has been bailed out and is getting healthy again. But the housing sector is still a mess. And according to Scott Shane, of the American Enterprise Institute, the weak real estate market is the primary reason to blame for the poor recovery:

“The collapse in home prices is holding back small-business hiring. And unless we fix the residential real estate mess, we won’t see small business hiring anytime soon.”

 Backed by an armful of statistics, Shane lays out five reasons why small businesses aren’t hiring - and it all comes back to our lingering real estate problems.

Entrepreneurs: What do you see out there? What do you think are the causes of the lackluster recovery? What would you suggest should be done to improve it?

About the author

John L. Duoba is the publisher/managing editor of Business Owner’s Toolkit at www.toolkit.com, and his idea of a perfect storm is one that washes his car at night but doesn’t make the grass grow.

Running a Home-Based Business: 3 Common Challenges and Tips for Success

Adam-TorenTo most people, working from home sounds great. In fact it’s the dream of many nine-to-fivers and nearly every 7:00 a.m. commuter – which is probably why a Google search for “work from home business” yields 979 million page results. Who wouldn’t want the freedom to set your own hours, stay in your jammies all day, spend time with the kids, take a break whenever you want, even get a snack (or a beer) when the feeling strikes? Sounds divine, doesn’t it?

News flash: This is the description of a sick day, not a work day.

For the serious entrepreneur, working from home does have its benefits, and it has its pitfalls as well. Like anything in business, it takes dedication and planning to make working from home a success. Here are three common issues the work-from-home entrepreneur faces, and some tips to help overcome them:

1. Loneliness. While we entrepreneurs are typically independent types, we also tend to be “people people.” We thrive on human interaction, especially with other like-minded adults. So when we suddenly find ourselves home alone much of the time, it can be a challenge. Even those little pleasantries at an office job – “Hey Frank, how are Bonnie and the kids?”; “Hi Sally. Love the new hairdo.” – really do mean something to us. A 2007 study by researchers at the University of Michigan even showed that just 10 minutes of small talk improved study participants’ cognitive abilities. It seems human interaction is not only a preference for most of us, it’s actually necessary for us to be at our best. Success Tip: One great way to overcome isolation and loneliness is to participate in online forums. While it’s not face-to-face contact, you’ll be interacting with adults who are interested in similar subjects, and you just might form some valuable relationships. Depending on your business, relating with other entrepreneurs in person might also come from visiting clients. If not, be sure to attend plenty of networking events. You’ll not only fulfill your need for human conversation, you’re likely to pick up some business leads and great advice, too. Check out Meetup.com to find networking events in your area.

2. Others’ Perceptions. Tell someone who’s never done it that you work from home, and you might be surprised at what he or she thinks that means. (See sick day vs. work day example above.) For the most part, who cares what others think, right? Right – except that people (including your own family) sometimes think that because you work from home you have all the time in the world. Time to run errands for them; time to volunteer to head up committees; time to coach Little League; and time to chat for hours about whatever is on their mind at the moment. Success Tip: When you start working from home, make it clear to everyone you know (family, friends, etc.) exactly what that means. Let them know the hours you will be working, and make your expectations clear about how you plan to manage your time. Don’t be afraid to explain to someone making demands on your time that you take your business seriously and don’t have much more “extra” time than someone who commutes daily. If you’re still having trouble with this, use caller ID to avoid all but business calls during your set work hours.

3. Staying Productive. At a regular job, where you work for someone else, you would probably never take a nap at work, no matter what the night before looked like. Of course, taking a nap without losing your job probably isn’t an option. “Brick and mortar” entrepreneurs who go to their store every day are self-employed and don’t have a boss to answer to, but they need to open at a certain time and might have customers and employees counting on them to show up and stay productive all day. Working from home though, having to be accountable only to yourself for how you spend your time, can be a test for many. For the home-based entrepreneur, it’s likely no one will know if you sleep until noon or catch the last round of the U.S. Open on TV instead of working on your marketing plan. Success Tip: If you’re not as productive at home as you think you should be, don’t feel bad. This is a very common concern, and no one is suggesting that you’re lazy or that you can’t hack it. You just need concrete goals and a plan to achieve them. Focusing on the reasons you’re in business for yourself in the first place can help you stay on track. Try breaking your long- and medium-term targets down to daily goals where possible. This will give you something to shoot for every day and help you keep your focus. And if you’re having trouble getting your work day started, set an early morning business meeting with a client or colleague as often as possible. You’ll be up and ready more easily, knowing you have someone expecting you. (And don’t worry – you can always TIVO the Open!)

About the author

Adam Toren is co-founder of YoungEntrepreneur.com, one of the largest and fastest growing small business social networking forums for entrepreneurs, and a “must visit” resource for start-up CEOs, founders, aspiring entrepreneurs, mentors and investors worldwide, reaching an audience that very few can match.

There is Still Time to Enter These Contests for Small Businesses

AwardThere are still some fabulous prizes and free public relations opportunities available for all of you out there who are already in business or are contemplating the idea of starting a business.

Here’s a cool one passed along to me by Barbara Weltman, respected corporate speaker, contributing editor, author and advocate for small business owners. The DailyCandy Contest is rewarding three of its contest’s winners with $10,000, a trip to NYC, a write-up by DailyCandy editors and a day at DailyCandy Academy. Wow! PR and cash all in one prize! The deadline is Sept. 6. All you have to do is tell your business’ story. An entry form and more details are available at DailyCandy’s Start Small Go Big Contest.

Check out these contests as well - provided by Small Business Trends:

  • The Stevie Awards for Women in Business. All women business owners, entrepreneurs and executives are eligible to run worldwide. Request an entry kit by clicking here. Enter by Aug. 31.
  • 2010 Leading Moms in Business. Startup Nation ranks the top 200 mompreneurs across America as chosen by popular vote. Enter by Aug. 31 by visiting the Startup Nation’s website.
  • Vistaprint Make an Impression Contest. Share your stories on how you charm your customers with Vistaprint and enter to win a customized marketing campaign – courtesy of their in-house creative experts as well as a $600 gift certificate to HP. The prize package is valued at $10,000! Enter by Sept. 4. Just visit Vistaprint’s Make an Impression Contest website to enter.
  • New Ideas Contest. Attention all of you individuals out there who are just bursting with innovative ideas. This contest is designed especially for you. The grand prize winner will take home $5,000 of seed money for his or her business idea, a scholarship to a FastTrac entrepreneurial training program, tickets to attend the Small Business Innovation Summit and Expo AND a Dream Team of Mentors to help bring your idea to fruition. Enter by Sept. 20. And the best part? All they want is the idea – no business plans, no prototype – just the idea. Enter the New Ideas SC Contest here.

Have you won any contests for small business owners? Tell us about it!

How Will the Change in Taxation Affect Your Small Business?

TaxesDid you know there’s a new tax provision tucked in the health care bill passed earlier this year that could carry an impact on your small business?

The Patient Protection and Affordable Care Act requires that all companies issue 1099 tax forms to any corporation or individual – not just to contract workers – from which they buy more than $600 in goods or services within a given tax year. This law is effective for purchases made in 2012 that will be reported on 1099 forms filed in 2013.

According to CNN Money, “the bill makes two key changes in how 1099s are used. First, it expands their scope by using them to track payments not only for services but also for tangible goods. Plus, it requires that 1099s be issued not just to individuals, but also to corporations.”

Bill Rys, tax counsel for the National Federation of Independent Businesses, also said, “It’s a pretty heavy administrative burden, particularly for small businesses without large in-house accounting staffs.”

So under the new rules, if you buy a costly new guitar to support your career as a musician, you will have to send the retailer a 1099 at the end of the year for that purchase. If you run a floral shop, you will have to send 1099s to each of your suppliers. The more sources you rely on for your business, the more 1099s you will have to issue.

Do you need the Advil yet?

Karen Kobelski, our general manager at BizFilings, recently addressed this issue in a press release. She said, “Incorporating adds a layer of credibility which could be critical as companies may look to reduce the number of companies they conduct business with to alleviate 1099 paperwork. Formalizing a business as a corporation or LLC may help small business owners compete on a more level playing field with larger competitors.”

To  learn more about incorporation and its benefits when stacking up against the competition, just visit  our Learning Center at BizFilings.com. 

How do you think this law will impact your business?

Practical and Inspirational Tips for Start-Up Success

SuccessA recent article written by Tory Johnson, ABC News workplace contributor and CEO of Women for Hire, focuses on how to culminate efforts into successful results.

Following are some practical and inspirational tips Johnson offers to keep in mind when pursuing your dream of starting your own business:

Tip #1: Bootstrap solutions. Ah, yes, our topic of yesterday’s blog — bootstrapping. Johnson cites an idea for a food product as an example. Since costs can magnify when trying to meet zoning laws and other regulations for preparing food at home, Johnson suggests looking into “renting inexpensive hourly space in a co-op kitchen (which you can find by searching online in your area) or even by calling churches to ask about renting during off hours in lieu of committing long-term to an expensive commercial kitchen before you know the real potential.”

Tip #2: Chat with bankers before seeking a loan. Johnson advises seeking help and advice from your current bank on what is getting approved. She also recommends finding out expectations for a business plan. “Poke around and get friendly with the branch manager before just showing up with what you think they want.”

Tip #3: Do your homework on funding options. There are still credible ways to secure funding even if the bank turned you down. Consider peer-to-peer lending, credit unions or angel investors. Refer back to our BizFilings blog for some other options.

Tip #4: Share your story. Sharing your personal story humanizes your cause. Strangers are more likely to lend a helping hand if they feel like they know you and your passion.

Tip #5: Reach out to companies in your industry. Go straight to the source. Find individuals and companies of all sizes who are involved in your industry of interest. Pick their brains for information about factories, vendors, resources and more. Johnson says, “You can find just about anyone through the Internet — and very often they’re willing to share, since it strengthens the whole industry.”

Tip #6: Take home an award. You can harness some attention for your company by applying for awards pertaining to your industry. Not only do you have the opportunity to win a prestigious award, but you also have the opportunity to open doors to connections.

 Tip #7: Socialize. You are able to get in touch with anyone through social media. Nobody knows you exist if you aren’t already in a prominent storefront building. Through social media, you can create that business facade you’ve always wanted.

Tip #8: Solve problems without reaching into your wallet. According to Johnson, “It’s easy to say you can’t possibly make things happen without a big bank account to back you up. I started my company 11 years ago with $5,000, which I definitely couldn’t afford to lose. That meant finding ways to barter and beg (never had to steal!) to launch  and grow the business. As the saying goes, where there’s a will there’s a way — you have to really want it. The best way to fund your growth is by generating sales.”

Tip #9: Concentrate on sales. “Without sales, you have no business. Thousands of people have great ideas — they can envision exactly who will use their product or service. But they have no clue how to reach those desired customers or clients, and they’re not spending nearly enough time developing a sales strategy. Sales solve problems. Sales create a business. Sales enable you to grow and shine. Invest time in developing your sales strategy early in the process, even though it’s the least sexy and least fun part of plotting and planning your business launch. More businesses fail not because of a bad product or service, but because they can’t sell it. Similarly, plenty of lousy products and services do just fine because someone knows how to sell them.” — Johnson says it all!

I’d like to add one more tip to her list:

Tip #10: Protect your assets. This tip also isn’t that fun or sexy, but it’s important. Once you start making those big sales, you’ll be glad you took the steps to protect yourself. Incorporating your small business can add a layer of protection and help safeguard your hard-earned personal assets.

Do you have your own tips that you’d like to add to this list?

 

 

 

Bootstrapping: The New Norm

Small-business-1Entrepreneurial finance and ethics expert Dr. Jeff Cornwall recently revealed in his blog that, “Even the optimists are saying that we have at least two more years of economic stagnation. Other experts are warning of a possible double-dip recession. There is even growing talk in some circles in America experiencing a ‘lost decade’ in its economy. That refers to the 10-plus dismal years of economic doldrums suffered by Japan in the 1990s … So what does this ‘new normal’ in our economy mean for entrepreneurs? For startup entrepreneurs it means you need to be lean … Whichever path leads you to start a new business, a successful launch will require bootstrapping.”

The team of small business experts at Business Owner’s Toolkit defines bootstrapping as “generating needed funds by deftly managing cash inflows and outflows.”  Business Owner’s Toolkit also offers a basic list to help guide efforts in monitoring, forecasting and analyzing cash flows:

  • Collection of accounts receivable – How can you improve credit terms or collection procedures?
  • Inventory management - Decide if you really need all that inventory. Overloading yourself with unneeded inventory can take a toll on cash and space. If you don’t need it to satisfy immediate needs, keep your stash lean.
  • Accounts payable cycle – If vendors offer 30 days to pay, take 30 days and consider asking for 45 days. Take advantage of early payment discounts.
  • Expense control – Trim down expenses by auditing current practices. Do you really need the brand-new computer when a used one will suffice for your specific needs?

Mix frugality with sensibility for a helpful combination.

What other things can you suggest to small business owners when it comes to bootstrapping?

The New Breakfast Club

breakfastclubOk, I’m a child of the 80s and the iconic John Hughes movie The Breakfast Club was one of my favorites. In essence this movie was about a group of teenagers from different perceived social cliques forced together due to their mutually shared detention. In the end, they realize that they’re not so different after all.

Now fast forward to today, and well, reality (life isn’t a movie after all). Small business owners around the country are forming Breakfast Clubs of their own. In a sense they replicate the movie in that business owners from all different sectors are getting together to share ideas, connections and strategy. In the end they all find out that even though they come from very different businesses, their pain points are often the same.

Take for instance the one in New York found on meetup.com. They meet monthly to network and cover everything from acquiring customers to finding money to social media. They also have guest speakers every so often.

Or, maybe you could set up a few small business training sessions over breakfast as this company did in Atlanta.

This trend lends itself especially well to the small business owner working out of his/her own home. It’s nice to be able to have access to a more public and social business outlet. Stop into any cafe in the morning and you’ll likely see a variety of professionals also out for breakfast – some with interviews, others with sales calls, others were with colleagues. With the usual hectic day of many small business owners, breakfast is a great time to squeeze in some networking and learning.

To find out if there are any Breakfast Clubs in your area (the non-detention kind) you can visit meetup.com and search in your home town. Or, why not start one of your own?

What do you think about the breakfast networking idea? Good? Not practical? Would you start one in your area?

Small Business Owners Hit the Books

Back-to-SchoolWe’re midway through August, and if I were about to start elementary or secondary school, I’d be mourning the fleeting days of summer.

My parents, however, we’re practically shoving all nine of us out the door. (In fact, I recall a time where we were waiting for a bus that wasn’t scheduled to arrive for another two days.)

All kidding aside, you may be anticipating the start of the new school year, and may be joining the ranks of other small business owners, who are about to become students as well.

ABC News recently ran a story on how small business owners have classes, courses and seminars available to polish skills and keep up with changes in today’s fast-paced work environments.

The article reveals many options that are available for entrepreneurs, small business owners and business veterans looking to brush up on basics or advance their areas of knowledge, including:

  • Colleges, universities, technical colleges
  • Chambers of Commerce and trade groups
  • Small Business Development Centers (SBDCs)

Colleges, universities, technical colleges

The good news is that location does not hinder your desire to advance your education or training. There are many online courses available to match your preferences.

Your local colleges, universities and technical colleges also cater to adult education with flexible scheduling. Certification and continuing education courses are also designed to help small business owners achieve goals with minimal time investments.

Chambers of Commerce and trade groups

It is an advantage for small business owners to join the local chamber of commerce for networking purposes. And, ABC News cites that, “joining a chamber of commerce or trade group can give owners an opportunity to take courses and seminars at little or no cost.”

Consider joining trade groups, like the American Marketing Association or the Public Relations Society of America, if you’re interested in maximizing learning opportunities available.

SBDCs

Sponsored by the Small Business Administration, SBDCs are located throughout the country. The SBDC is very active in sponsoring workshops on starting a business, handling company finances and writing a business plan. Entrepreneurs can also benefit from online study courses in management, marketing and finance. Visit www.sba.gov/training/index.html to learn more.

Are any of you gearing up for school this fall? What areas of study are you looking to pursue? Are there other resources you’d like to share with small business owners looking to take some classes?