This is a special guest post from Scott at FinancialFutureCFO.com that I thought would be interesting to you:
As an entrepreneur, are you getting a paycheck every two weeks, every month or any other time? Or are you simply continuing to put everything back into your business and only pulling out money for yourself when it’s absolutely necessary?
Though many people fall into this kind of trap, it’s a bad idea and not a long-term solution at all. If you’re making any kind of a profit (and if you aren’t, it’s time to rethink your sales and marketing plans), you need to start paying the top dog - YOU!
How much should you give yourself as a salary? It all depends upon a number of factors… which is where the help of a virtual CFO can come in handy. A virtual CFO will assist you in making sure that the paycheck you receive is fair without hurting your company.
Remember - taking a paycheck isn’t selfish. It’s a smart business move.
We all have them — the “go to” sites we read while enjoying that first cup or coffee or tea. But what do your favorite sites say about you as an entrepreneur?
Check out this quickie insider look and let me know if any of these types of “Internet surfers” describes you…
1. You Jump on Social Networking Sites First!
You value relationships and don’t want to lose connections with others, whether in a personal or professional sense.
Strengths: You’re great at communications and staying on top of the “social scene”.
Challenges: You may tend to get emotionally caught up in everyone else’s drama. And that can lead to poor business decisions.
2. You Look at Popular Local, National and World News Sites Pronto!
You’re the type who could probably name the people in charge of even the most obscure countries. (After all, there ARE no obscure countries to you!) You’re up to speed on the news and often “break it” to friends and colleagues.
Strengths: You have a terrific perspective on society and the politics of the day. This gives you some “insider” knowledge that sets you apart from competitors.
Challenges: You may struggle as an entrepreneur to make real connections with people who don’t share your love of all things news. It’s as if you don’t speak the same language.
3. You Check Out More Hollywood/Gossip Sites Than Anyone Could Shake a Stick At!
Before you justify your actions, know that there isn’t anything intrinsically wrong with seeing what Perez Hilton has written before getting to work. It’s just your style.
Strengths: You probably have the ability to join any conversation, especially the day after American Idol is picked or something particularly shocking happened on CSI! That makes you the “go to” person for the trendy gossip of the day.
You are the type who has immersed him- or herself in one chosen industry, and you’ll be doggoned if anyone knows it better than you! That’s why you seek out as much info daily as you can… including on the competition!
Strengths: You are seen as a leader in your field because you know so much. This helps you make connections and win opportunities to speak at events or “guest write/blog” pieces.
Challenges: You’re so absorbed by your own industry that you tend to think only on those terms. Thus, brainstorming could be particularly difficult for you because you think only of what’s already been done, not what COULD be done.
5. You Have No Set Surfing Habits — You Let Your Mood Dictate Your Clicking!
You’re a true “free spirit”, roaming the Internet at will! You’ll just as likely visit StyleList as you will ParentDish or the Wall Street Journal!
Strengths: You have a wide variety of interests and are able to synthesize information quickly. You take from a range of knowledge bases.
Challenges: It may be tough for you to focus on your career for any length of time because you tend to get so bored! You have to learn how to keep everything feeling new!
I’ve met a lot of “big talking” would-be entrepreneurs and I bet you have, too. They have tons of ideas, they have a million things they’re going to do… and the list never changes. Year after year.
The problem isn’t the list. It’s the fact that these entrepreneurs never do anything. They never move forward.
They are Dreamers, but they’re not Doers.
If you fit into this category of entrepreneurs, it’s time to do something, already!
How can you do that? Try any or all of these steps:
1. Hire a business coach. I’m one and I know the value here. There’s no doubt in my mind that a business coach will help you get moving.
2. Hold yourself accountable to start getting things accomplished. Stagnancy begets stagnancy. You can’t afford to waste more time. Find a way to remain accountable and begin.
3. Just do something. Take a first step. That’s how it’s all going to begin. It doesn’t matter how big of a step it is, either. As long as it’s in a forward direction, it’ll be a huge leap!
4. Leave the perfectionism behind. Perfectionism is just a trap that keeps entrepreneurs from doing their best. Leave it at the doorstep and do something… even if it’s not “perfect”.
5. Stop talking. If you’re only an entrepreneur in your mind, that isn’t going to get you anywhere. Whenever you find yourself pontificating about what you “would” do if you “were” an entrepreneur, stop yourself.
When you’re a business person (especially an entrepreneur), you have to be willing to do the fun stuff as well as the not-so-fun stuff. Unfortunately, a lot of people think that they can just delegate the not-so-fun stuff away.
While that may be true in some areas, it’s not true if you’re just “passing the buck” and forcing someone else to do your dirty work.
For instance, if you’re the boss, you shouldn’t “pass the buck” to someone else to fire an employee just because you don’t like to do it yourself. Instead, you need to learn how to handle all aspects of your responsibility as a boss. Yet there’s nothing wrong with delegating tasks to another — confirming appointments, putting together your company’s marketing plan, etc. That makes sense.
If you’ve found yourself in a cycle of avoiding the “bad parts” of your job and just passing them on to others when you know you really should be doing them yourself, I urge you to consider hiring a professional business coach. (Like me!) A coach will help you understand how to get over your hurdles and be the best business person you can.
I know a lot of entrepreneurs who tell me (earnestly, I might add): “I know I need to market my business, but I don’t want to make a mistake. I want to do it the right way. I just haven’t found the time to make that happen.”
Hm.
In other words, for these business owners, NO marketing seems to be a better risk than trying something that doesn’t quite fit…?
In general, I don’t agree with that line of thinking at all.
To me, it’s better to try to market your business in some way than to sit back and hope that customers, vendors and/or employees find you on their own. Even if you don’t choose the perfect marketing venue, it’s still likely to net you something rather than the nothing you’re guaranteed if you don’t market at all.
(With this being said, I will tell you that I’ve seen some pretty shoddy attempts at marketing, but they can hardly be called true marketing “campaigns”. A couple of ads or the handing out of logo-plated pens simply isn’t a genuine attempt at marketing.)
I understand the worry that an entrepreneur’s marketing dollars will be spent in the wrong way. It’s one of the reasons I enjoy working with business owners and helping them design marketing campaigns and platforms to increase their profits efficiently and effectively.
If you’re someone who has been hemming and hawing about whether to finally invest in marketing, I encourage you to join my Marketing Made Easy program (designed especially for small businesses!) in 2010. It’s a cost-effective, hands-on experience that lasts the entire year.
Send me an email at julie(at)jadcc(dot)com and we’ll get you registered. If you want more information about the program, head here. Don’t delay — this interactive group coaching session starts in a couple of weeks! Reserve your seat now!
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JADCC: The bridge between where you are and where you want to be.
So you want to make sure that 2010 is better than 2009 was in terms of your business? Then you have to start thinking about making some corporate resolutions for 2010.
These types of resolutions differ from personal resolutions in that they are narrowly focused toward the business world. Still, the resolutions (business and personal) do share some similarities, most notably that:
The resolutions have to be measurable.
The resolutions have to be manageable.
The resolutions have to be logical.
Let’s take each of these points one at a time…
Measurability
I don’t know of any entrepreneur who wouldn’t agree that he or she wants to make a bigger profit in 2010 than he or she did in 2009. However, that really isn’t a solidly measurable goal.
Instead of making a sweeping statement, put a number to your resolution. By doing so, it will be highly specific. For example, you could say that you want to increase your business profits by 20%, $20,000, etc. That way, you can map out strategies to make your resolution a reality. (I’d be remiss if I didn’t add here that this is where a business coach can be a huge help!)
Manageability
It’s great to say that you want to spend more time on the road visiting your prospects and clients in 2010, but you have to make sure that whatever you say you’re going to do is manageable.
For instance, if everything else stays the same in your company, can you really manage to be on the road more often? And if you can’t, are you willing and able to outsource responsibilities to ensure that balls don’t drop? (If the answer is “no”, you probably can figure out that this is one resolution that cannot be implemented.)
Logic
Maybe you’ve always wanted to move your business to a warmer climate. (Hey, anyone who has been stopped from fulfilling a client’s order because of a foot of snow can commissurate!)
But what if your family and clients are all in a cooler locale and want you to be there, too? Obviously, it’s not going to be logical for you to have “Move the company to a warmer climate” as a business resolution, at least until you are able to convince your relatives and customers that such a move will benefit them, too.
Does this mean that if your resolutions are measurable, manageable and logical that they will come true? Unfortunately, no. You have to be willing to work hard to make changes. However, you’ll have a much better chance at seeing your resolutions come to fruition (at least partially) if they have these three characteristics.
So… what are your business resolutions for 2010? I’d love to hear the direction you intend to take over the next twelve months.
We all have days where we get down in the dumps. Fortunately, those times usually pass. However, for some entrepreneurs, clinical depression can take a huge toll on their business successes.
How do you know if you are depressed? When it comes to entrepreneurs, the signs and symptoms of depression can vary, including:
Inability to complete projects. “Why should I start today? It’s already 4:00 p.m. I’ll start tomorrow instead.”
Days spent staring at the computer, unable to force even an email or a phone call. “It’s just too tough to decide where to begin.”
Inability to get out of bed to go to work. “I got twelve hours of sleep, but I’m still exhausted.”
A sense of pessimism surrounding everything. “Why bother to do anything? That guy will never become a client.”
A lack of focus. “Why can’t I remember anything?”
Slacking in performance. “I feel so stupid, but I just can’t seem to do work that’s good anymore.”
I’ve worked with depressed entrepreneurs before, and I can tell you that this isn’t something to ignore because it doesn’t magically disappear.
If you’re battling depression, it’s imperative that you find a way to combat it, such as with medications, therapy, diet, exercise and/or homeopathic remedies. Don’t delay. Make this one of your top entrepreneurial resolutions for 2010. That way, you’ll be able to give it your all next year.
You deserve nothing less than the chance to shine.
Fear can be a great motivator, but it shouldn’t be your business plan (at least not if you want to succeed as an entrepreneur!) Unfortunately, I’m seeing a lot of reactionary moves on the part of business men and women, many of which are directly related to some kind of fear.
Interestingly, though, many of these same entrepreneurs don’t realize that they are operating in this kind of mode. They simply chalk up their actions to “going with the times” or “reacting to the market”. But what they’re really doing is allowing their fear to become the CEO of their company.
How do you know if you’re steering your ship with fear? Take a look at these common fear-based scenarios:
- Every plan you’re making is to avoid something — losing money, losing employees, losing your job, losing a client — rather than to gain something.
- Every time something happens that plays on your fears (e.g., a client withdraws from your service, an industry report reveals your field is in trouble), you feel like you have to make a sudden change in how you’re approaching your business. Sometimes, these changes can be seen as radical.
- You find yourself thinking only in the short-term rather than the long-term. What happens today is more important to you than what will happen six months or a year from now.
- You’ve begun to pinch pennies in inappropriate areas, such as by getting rid of all advertising or marketing (instead of being selective with it.)
Do any of the above experiences resonate with you? If so, you may be allowing fear to lead your business.
Fortunately, there are ways to get out of the fear cycle. And the first step is acknowledging that fear has begun to take over.
The next steps are best met and implemented on an individualized basis. If you have a business coach, now would be the time to have a very serious talk about “righting” your ship. (If you don’t have a business coach, send me an email at julie(at)jadcc(dot)com and let’s chat.)
This time, we’ll turn the tables and talk about 8 reasons TO choose entrepreneurship (or at least consider it.)
You have a passion for a certain field, product, cause, etc. Successful entrepreneurs are passionate about what they do. It’s what keeps them motivated to get up and work, work, work even if a paycheck isn’t guaranteed.
You don’t let others’ doubts get in your way. Behind every great entrepreneur is a person saying, “You can’t do that!” If you want to strike out on your own, you have to be willing to say, “Yes, I can”… and mean it.
You seek assistance from the right people. It’s very important to look for mentors to help you as an entrepreneur. That way, you don’t have to start from scratch.
You’re willing to work for an unknown amount of time without any pay. Chances are good that you won’t turn a profit for a while, which means you have to be willing to keep going even when the bank account is screaming, “Feed me!” Believe me, it’s tough. But this is where your determination comes into play.
You’re not turned off by hard work and an unusual schedule. Being an entrepreneur isn’t a 9-5 arrangement. Many entrepreneurs work extremely odd hours, including very late at night (e.g., after the kids are in bed, after you’ve spent time with your partner), weekends and the wee hours of the morning.
You’re optimistic (or at least realistic) by nature. Pessimists typically don’t do extremely well as entrepreneurs because they have too many doubts about every move they make. You really have to maintain a “glass is half full” mentality, seeing possibilities even during the rough times.
You have to be disciplined. Entrepreneurship is not for the lazy. I don’t care how many “get rich working 30 minutes per day!” emails you see in your in-box. It’s not that easy and you’re going to have to discipline yourself.
You must be open to change. Flexibility is a key factor in success as an entrepreneur. This doesn’t mean you have to capitulate; it just means you have to be flexible as needed.
So is entrepreneurship right for you? Are you already an entrepreneur struggling with one of these eight areas?
If so, I encourage you to check out my 2010 Marketing Made Easy for Small Businessesprogram. I’m still accepting participants and would love to help you make next year a banner one. Whether you’re established or just starting out, it’s going to be beneficial. And if you have any questions, feel free to email me at julie(at)jadcc(dot)com.
JADCC: The bridge between where you are and where you want to be.
