The Art of Entrepreneurship blog provides a support network and learning environment for small business owners and those working to start a business.  Here we learn from each other by sharing stories about our real world experiences.  This month's guest blogger, Nickey Mullen, owner of Mullen Botanica, talks about her dream of moving from part-time to full-time business owner.  Thanks for sharing, Nickey.

By Nickey Mullen, owner
     Mullen Botanica



I have owned and managed Mullen Botanica, a part-time gardening business, for 9 years.
I have a Bachelors Degree in Horticulture and Environmental Education and have worked in horticulture professionally since I was 17.   My specialty is horticultural designs and estate garden maintenance.  I am also employed full time in healthcare as a psychologist.  My gardening business is my therapy while I provide counsel to others.

I attended the CWE business planning program in 2010 and started imagining the possibility of transitioning from my job to operating my business full-time.  In the program I wrote a plan for growing Mullen Botanica – gaining more customers, hiring employees, making it a full-time venture.  

My business plan has kept me on track for creating a profitable business.  I completed the Midas matching funds saving program; bought office supplies; bought a computer, printer and camera to use in garden photography.   I also bought my domain name; had beautiful business cards designed and a web site designed, which I am now working to put on line.  I will blog to educate people about horticulture through pictures and text.  There is not enough nature and beauty in our days....so this is part of my mission.

During these difficult economic times, I look for ways to stretch a dollar to make sure I can continue working in the business I love. But I also value my full time work for the stability it provides. It allows me to support myself, particularly during the long winter months in New England.

Now during this busy spring planting season I will continue to do research in how and when to expand further. My business plan is a cookbook to grow and unfold my dreams. But it is a delicate balancing act since I am a single woman who is self-supporting.  I'm excited and inspired. Stay tuned.

A Mullen Botanica Design                              

The Art of Entrepreneurship blog provides a support network and learning environment for small business owners and those working to start a business.  Here we can learn from each other by sharing stories about our real world experiences.   

Thank you to this month's guest blogger, Rachel Kobey, owner of a fitness studio in Newton, MA, who talks about how passion and business ownership do not always come together. 

By  Rachel Kobey,  Business Owner

Entrepreneurship is great - having independence, being your own boss, and creating your vision.   I have had the good fortune to be a business owner in a field that I am passionate about, fitness.  I went through all the steps, took the CWE Business Planning course and developed a business plan.  Then I put everything I had into developing and launching my business.  I invested time, money and all my heart and created a wonderful fitness studio in Newton, MA.

After a year, what I discovered is that I love personal training and group fitness instructing but I do not love being a business owner.  Being a business owner is great for someone who loves to do marketing, make all the decisions, and wear many hats.  I can wear many hats and do most of them successfully, but it’s too much work and stress for something I don’t love enough – being the owner.   I love building relationships with people.   I love helping people work to achieve their health goals through fitness.  I do not love running the business.
So I have decided to sell my business and concentrate on what I love without all the responsibilities of business ownership.

( If you are interested or know someone who wants to own a beautiful fitness studio that is up and running, this could be the perfect opportunity. Contact Rachel at 978-578-5330)

Jacqueline Dube launched Jacqueline Jace Face & Body Center after completing a business planning course I facilitated at the Center for Women and Enterprise,in Worcester, MA.  A few blogs back she told us how difficult it was for her to find appropriate space.  Now she's sharing her successful marketing tactics and moving full speed ahead!

by Jacqueline Dube,
Owner of Jacqueline Jace Face and Body Center

Things are working out so well!  It was worth the wait!  The space is just wonderful…it is quiet and relaxing…clients have never been so complimentary. So now that the space is set and ready to go, it is time to gain new clients.  As far as marketing, I have a primary focus on online media.  The first online marketing tactic that I used was Groupon.com

, to generate new clients.  My Groupon ran in the Worcester market on March 1st and was a success!  I have gained many new clients and almost all have returned for a second visit.  I was so happy with the results that I have agreed to run my deal again in the Boston market this spring as well as run in the fall of 2011 in Worcester .  My second tactic was to hire Vision Advertising (www.vision-advertising.com) to do a website refresh to a blog format as well as create a Facebook fan page and Constant Contact account.  We will be live in April so check us out! 

The Art of Entrepreneurship blog provides a support network and learning environment for small business owners and those working to start a business.  Here we can learn from each other by sharing stories about our real world experiences.    Thank you to this month's guest blogger, Tonya Johnson.

by Tonya Johnson, Owner, Vision's Sown

I have been an entrepreneur for over seven years. On and off I worked on my business plan but always came away dazed and confused about why my company still floundered.  I conducted more research hoping to learn why my company hit so many snags over the years.  My findings suggested that my setbacks are the direct result of using an inappropriate business model and revealed problems my company would face if I continued using the standard baking business model.

 I thought I could use an off-the-shelf bakery business model.  After reading a case study about new innovations and their need for customized business models, it became clear to me why writing my business plan has been troublesome. The traditional bakery business model is from kitchen, to renting kitchen space, to company owners as producers, to early sales, to contract manufacturing and distribution to the larger consumer market. 

 The ancient baking business model starts out similarly, in the kitchen with experimental baking, progressing to kitchen rental, company owners as producers, and early sales, and then hits a wall at contract manufacturing and distribution to its larger markets.  Why? I learned from the National Association of Specialty Food Trade (NASFT) industry experts, answer is accounting issues.

 According to the experts, no contract manufacturer will touch my trade secret protected, complex baking processes to produce healthy bakery products using a new food technology.  Nor will they hold in their inventory nontraditional baking ingredients no other customers can use. It took me two failed tries at contract manufacturing, an accounting class, and baking industry insight from veterans to realize that this is an unattractive financial risk for contract manufacturers. 

 Now I am faced with taking this challenge into my own hands - to work through drafting a more appropriate business model for my baking innovations.   My operations plans must change in ways only a professional commercialization plan will reveal. It has taken me eight years and several attempts at business plan writing to figure this out.  My business model, accounting practices, nontraditional baking operations, and production need deeper investigation and a solid strategy if I am to scale successfully my business as I envision. 

 The Center for Women in Enterprise (CWE) helped me make these discoveries while developing my first working business plan draft.  Now I can move in the right direction with development of the new business model and a strategy more fitting for my enterprise.  To that end I enrolled in an MBA program. 

 Does your business model fit your venture like custom fitted formal wear, or does your business model hang awkwardly on your business like a dress for less, off- the-shelf, 1000 copies like it model?  I encourage entrepreneurs to study your business models closely.  Your company success depends on it!

 (Tonya has 10+ years experience in the specialty food industry - health food research, its regulatory environment and experimental bakery product development.  Visit her blog to learn more about Vision's Sown.)

The Art of Entrepreneurship blog provides a support network and learning environment for small business owners and those working to start a business.  Here we can learn from each other by sharing stories about our real world experiences.    Thank you to this month's guest blogger, Katherine Lutz.

Getting Your First Client
by Katherine Lutz, Owner,
Youth Health Communications, LLC

Many of you are very close to getting your businesses underway. You’ve written business plans, spoken to potential customers, and learned as much as you can about being a successful entrepreneurs. That was me, six months ago – wide eyed, bushy tailed, and ready to snatch my first client.

But after months of pounding the pavement, I was still without a client. Frankly, it was depressing. I wondered if my hard work would pay off. But one day I got that call and landed a contract that would not only give my business a huge injection of cash, it gave me the confidence boost I needed.

The road to winning my first client was bumpy, but ultimately rewarding. It wouldn’t have happened without a little luck and a lot of hard work.  

Here’s what I learned:

• Make meaningful connections - Take opportunities for people to get to know you in meaningful ways. I presented my business plan at the Center for Women and Enterprise to a group of panelists.  One of the panelists connected me to my client.  I would not have the client if I had not presented.

• Be persistent, not pushy - I checked back with my contacts once every two-three weeks. It kept me on their minds without annoying them.

• Be careful donating services and products - I’ve had bad experiences donating my services to potential clients. In this case, I donated my services to a non-profit that my client supported. I was able to show off my talents without undervaluing my services. 
  

• Marketing matters - I never realized how much a great business card, logo, letterhead, thank you card, portfolio, resume, web site, and wardrobe can impact your business until I had those things. I was instantly treated as a professional and serious business owner. And no one quibbled over my prices!

(Katherine is a long-time health communications specialist and community activist who is passionate about kids living healthier, happier lives.   Visit her website at www.katherinelutz.com . )

In this difficult economy, small business owners have been challenged to reduce costs and still provide quality products and services to keep a competitive advantage.   Corporate executives, also faced with constant pressures to reduce costs, have saved billions of dollars for their organizations through benchmarking.  We as small business owners can also gain significant rewards from big business benchmarking practices. 

Benchmarking is the process by which you measure your company’s performance, products or services against companies recognized as the ‘best.”   You learn the practices that make for superior results and then adapt them to suit your particular business.  This works externally, comparing your company against another similar company or against your major competitors, or internally comparing the performance of your different departments.  Fact is if you do not know how your company compares to your competitors, you will have a hard time staying competitive.  If you want to ensure the future long-term success of your business take an example from big business and do some benchmarking.

Why Benchmark?

Benchmarking allows you to reduce costs and improve your bottom line, improve productivity, quality and customer service, and gain the competitive advantage. 

Reduce costs and improve your bottom line.    While learning from mistakes may be the best tools for growth in our personal lives, mistakes can be costly for small businesses.  Why reinvent the wheel when you can borrow the best new ideas, strategies and tactics from successful companies, adapt them into your company and experience similar success without spending much money.  

In a service business your major costs will be people and rent.  You can reduce costs by comparing your major expenses with other companies of similar size. How much do you pay for real estate relative to the market?  How much do you pay for healthcare?  How much do you pay for salaries?  You may find that your costs are high in comparison and learn from other companies how to improve

Improve productivity, quality and customer service.  When you learn about best practices that successful companies are using, you undoubtedly will want to increase performance in your company.  You can set new standards for performance.  You can present your employees with concrete data and solutions to gauge their performance.  Your workforce will be motivated to achieve better results if they have a standard to reach and a strategy to get there.

 Gain the Competitive Advantage.  Understanding why another company performs better than yours can start you thinking about your company’s future in new ways.  Staying in the forefront of your industry will set you apart from your competitors.  Benchmarking regularly will keep you abreast of what is happening in your industry and in your company,

Big businesses spend much money to save billions.  They hire a company to perform the research, identify the metrics, analyze the information, recommend and carry out change.  Small businesses can do benchmarking on a smaller scale and still reap the benefits.  It does not have to be a long-drawn-out program that takes months and hundreds of staff-hours to complete. For a small business it may take only a few weeks to do some research and get the information you need to improve. 

 How to Benchmark

1. Look within first.  You must have significant knowledge about your own, products and services before you can compare yourself against others.  Gain an understanding of strengths and weaknesses in your own practices. Then you can identify areas for improvement.
2.  Focus on improving one or two business areas at a time. Failure comes when you try to do too much at once.
3. Decide the data collection method.  The method may be online research and a telephone survey.  Or you may want to partner with larger companies with best practices to learn from their experiences through exchange of information and interviews.   If you are a certified minority or woman-owned business you may be able to partner with one of the member corporations of your certifying agency to explore best practices in a specific area.  You can also get the information you need from colleagues you know through networking who own businesses of similar size in revenues.
4. Look for one metric to measure.  Base the metric to measure on the targeted area for improvement.  For example, if you are selling a product, you may want to measure the cost of goods sold.  If you have a services business you may want to compare the average revenue per employee. 
5. Find competitors and companies within and outside of your industry with best practices in the areas relevant to you.  Find companies similar to yours - services or manufacturing.  Compare your company to those of similar size in revenues.
6. Collect and analyze the information.   
7. Adjust the best practice to fit your area of concern. 
8. Carry out the changes.
9. Measure the results.  
10. Perform benchmarking yearly.   Once the method for benchmarking is in place do it regularly.  This ensures that you continuously improve your business practices and services.

It is time to ensure that your businesses survives the downturn and is ready to thrive when the economy picks up again. 

The Art of Entrepreneurship blog provides a support network and learning environment for small business owners and those working to start a business.  Here we can learn from each other by sharing stories about our real world experiences.  
                                                                                        ***
Jacqueline Jase Face & Body Center, LLC, is a reality!  That is the message I received from owner Jacqueline Dube, who completed a 14-week business planning course with me this summer at the Center for Women and Enterprise.  Read how Jacqueline Dube made her business plan a reality.
 
From Business Plan to Reality 
By Jacqueline Dube
 


After the CWE business planning class was over, there were many challenges I still had to overcome - understanding business insurance, learning how to use a real estate broker, and finding an attorney - to name a few. In general, figuring out how to make my business a reality from the plan I had created in class.

My biggest challenge was finding space that met state requirements for Esthetics and Massage Therapy given my financial constraints.  I stopped looking for a couple of months because it was such a challenge. I am currently partnering with a friend on the space.   We each run our own business and share the cost of the space.  My business will be officially licensed by the end of December and I expect to have the grand opening in January 2011.  Jacqueline Jase Face & Body Center, LLC is located at 324 Grove Street in Worcester, MA. (www.jacquelinejase.com.)

Sharing of information is so important when you are starting a business because people do not always understand why you want to follow your dreams.  Especially in my situation, when you have left a position in corporate America. A support network is critical to success!

Jacqueline Dube has been a licensed Esthetician since 2002.  She is a Master Esthetician, Licensed Massage Therapist, and is certified in Eyelash Extensions. 

Many small business owners tell me how they can’t imagine giving up even a little control to an employee.  “They won’t do it as good.”  “My company’s reputation is at stake.”   “Someone else will mess up everything I’ve worked for.”  I get it, believe me, I do.  We as small business owners don’t want to share even the smallest version of decision-making.  We want to micromanage because it is so personal for us.  Fact is if you want to grow your business, you have to let go.

I discovered that I could not do it all.  I could not clean in the morning, clean at night, get new contracts, buy supplies, keep the books, do payroll, pay attention to customer inquiries, plan…So, while it was difficult I knew if I hired a good manager I could focus on building a solid business.

Did they get it right all the time? No.  But I did not get it right all the time either.  It took a minute, but my customers and I learned to trust the process.   And learning to trust my employees, allowed them to grow in their own space, me to avoid burnout, and the company to grow.

Pump up the volume about your services and products more than ever now during these slow economic conditions.  I know it is still bad out there and many businesses are struggling to keep running.  I have witnessed several small businesses having to close their doors.  All the more reason to get on the highest platform you can find and shout!  That is, increase your marketing and public relations efforts.  You do not have any money, you say?  No problem.  Read more...

Ten Things I Know About Starting a Business with Little or No Money

If your dream to own a business has moved to the back of your mind because money is tight, change your thinking.  First know that starting and operating a small business requires far more time and energy than it does money.  Second, there are plenty of businesses you can start cheap and grow to millions even.  I started with $100 and grew a multimillion dollar company.  Here are ten things I learned that can help make it happen for you.

 

1.  Choose a business that fits.  Start a home-based business using resources and talents available to you. You can go on the internet and learn about hundreds of businesses you can start from home, many of which have low startup costs that fit a home base.  Starting a service business is usually cheaper than one where you need inventory. Whatever business you decide on, know that starting and running a small business needs far more time and energy than it does money.

 

2.  Grow slowly and thoughtfully.  If you do not have start-up money, you don’t have much choice but to grow slowly and thoughtfully.  You will be thoughtfully trying to figure out how you can do all that you want to do in the shortest time.  Stay focused and purposeful and remember cash is king.  Without it there’s no business to grow. Good cash flow is a sign of a healthy business.

 

3.  Create an Image.  No matter if you are a one-person shop, professionalism, quality and customer service can make your company appear larger and more prominent.  Here are some actions that will heighten your image at little or no cost:

• Get good business cards and letterhead.  You can develop both on the internet free.   
• If you use your home telephone as your business phone, answer it professionally during business hours. 
• If your business is home-based, set meetings at your client’s place of business or do lunch meetings and dress for success. 
• Go above and beyond servicing your customers.  It won’t matter to your customers how small your business is if they are more than just satisfied.
• Choose your name carefully.  Your name helps you create a professional image. 
• Computerize your invoices, proposals, and other business forms.

 

4.  Network, Network, Network.  Networking sets up mutually valuable relationships that offer an exchange of ideas, advice, contacts, leads and strategies that will increase your business revenues.  It is an essential skill to develop, especially for entrepreneurs.

 

5.  Build and Manage Relationships.  Loyalty can mean the difference between landing a contract and losing it.  One example – your suppliers can partner with you to secure contracts by offering longer payment terms or reduced pricing for the promise of future business.  As well, your banker becomes most important when you are ready to borrow money.

 

6.  Be Creative.  Be open to new and effective ways of getting what you need for less money.  This is a talent that can carry you far even after you are pulling down millions. For example - partnering with other small businesses to buy supplies in bulk or bartering for supplies and services can save money.    

 

7.  Attend Industry-related workshops, conferences and trade shows.    Your attendance promotes a professional image and boosts your credibility to the hundreds of other participants, many of whom are your potential clients.

 

8.  Be patient.  Take the time to network and promote your company realizing it will take time for it to come back to you in contracts and clients.  That client you keep meeting at events, visiting or calling regularly will either admire your perseverance or grow tired of you and give you a chance.  If you quit, you’ll never know how close to success you were. 

 

9.  Embrace the Risk.  If you have no money to start your business, you stand to make a profit the first day out.  There’s no risk.  But there is everything to gain -- a better life, a better you, a dream come true.  Starting and growing a successful business takes hard work, belief in you, the wish to learn, patience and perseverance, far more than it takes money. 

 

10.  Name Your Success.  Decide what success means to you and perform as if it is right in front of you. Imagine yourself running your own business.  Practice this vision several times a day.  See yourself making much money in your business.  Feel the fulfillment.  It is essential to have a positive mind-set in business.  But it is not something that comes naturally.  You learn it.