We have all heard the numbers.  Most small businesses will be extinct within three years of start-up.  Some studies have this number as high as a 95% failure rate.  

Have you ever wondered what separates the 5% of business owners who are successful from the majority of businesses that fail?

A big part of it is education.  No, not the kind you get in school.  It is the education you pick up through experience.  You can either gain the experience yourself and risk going broke or you can benefit from the experience of others. 

So that you may benefit from the experience of others, we have included the five most common reasons small businesses fail.

Reason One - Lack of Planning

Anyone who has ever been in charge of a successful project knows that were it not for their careful, methodical, strategic planning - and hard work - success would not have been possible. The same could be said of most business successes.

It is critical for all businesses to have a business plan. Many small businesses fail because of fundamental shortcomings in their business planning. It must be realistic and based on accurate, current information and educated projections for the future.

Planning should not just be done during the start-up phase.  Solid on-going strategic planning is necessary for continuing business success.  We advise our clients to adjust their strategic plans at least every 90 days.  This helps them keep up with changing market conditions. 

Reason Two - Ineffective Marketing and Sales

Contrary to the popular cliche, few products or services “sell themselves.” If you don’t market your product effectively you will fail quickly. Marketing keeps your products selling and money flowing into your business. It’s crucial that you do it well.

Marketing helps stimulate interest in your product or service while sales focuses on converting interested prospects into customers.  In small business both of these activities must function together as one discipline.

Small business owners often become caught up in the day-to-day operational aspects of their businesses and they neglect this key function.  Developing a system that contains at least seven points of customer contact is critical to the success of any business.  Some examples of a point of contact include: direct sales, networking, advertising, public relations, direct mail campaigns, coupons, e-mail solicitation, event sponsorship, etc.

Reason Three - Shame

The same strong-willed confidence necessary for success can also lead to a business downfall.

Self-assuredness can inhibit entrepreneurs from seeking helpful advice-a fatal blind spot at any stage of business development.  This can lead to a business dying a slow and painful death due to foolish pride.

Being ashamed to ask for help is the worst possible reason for a business to fail - yet it happens every day. 

Reason Four - Ignoring the Competition

Business is war.  The leaders of large corporations understand (and never forget) that fact.  If you own a business you have an obligation to do everything, legally, morally, ethically and fiscally possible to succeed.

Small business owners often neglect to make adjustments to their business based upon trends in their industry and their market.  Many neglect this critical aspect of their business because they don’t feel that it is relevant in a small business. 

The opposite is actually true.  The loss of one good customer can devastate small business.  Your competitors are out there and they want to take away your customers.  You need to be one step ahead of them. We advise all of our clients to conduct a periodic competitive analysis.  This helps to ensure our client’s business is always in the best possible position in its market.

Reason Five - Poor Financial Strategy

This includes poor financing, under financing and poor cash management.  Many business owners focus on developing infrastructure before they establish some for of cash flow.  

In addition, start-ups sometimes set up elaborate business plans that require huge expenditures.  When the business owner finally finds himself ready to open his doors he realizes that he has no money remaining for sales and marketing.

This “if we build it they will come” mentality is so common that many smart investors often purchase entire businesses for pennies on the dollar.  They then invest their money on sales and marketing and the business flourishes.

Don’t Let this Happen to You

If you avoid making these five critical errors your business has an increased likelihood of success. 

If you would like some additional information of how to set your business up for success give us a call 888–474–1120.

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Just a couple of days ago we launched a great new continuing education program for Entrepreneurs and Independent Professionals.

We’re calling this program Million-Dollar Secrets and if you sign up right now you can get the first session FREE.

Let me explain:

This great continuing education program is delivered through audio classes.  We will send a CD each and every month directly to your home.  Each CD contains the secrets I’ve personally used to build big businesses from scratch.  We have also included all the insight I have gained in my work with successful entrepreneurs over the years (not to mention all the great insight I acquired in doing research for my book). 

As part of a marketing test we are giving away – for FREE – the first CD titled The Million Dollar Secrets THEY Don’t Want You to Know.

We have also priced the program way below the retail price - also as part of the marketing test. 

My publisher has set the price for this program at $97 per month. 

During this phase of the marketing test we are offering the program at 19.97 per month.  That’s an $80 discount per month!  If you sign up now, you will be saving $720 per year!  You have an unbelievable opportunity to secure this discount for the entire program.

This phase of the marketing test will only last for a few days.

For more information, please visit:
http://www.Million-DollarSecrets.com

Sign up now before we sell out of free CDs and before the price increases.

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Next Friday – June 29th – at 12 Noon – I am going to post an announcement that will make many of your very happy.

I have come up with a new product/service that will provide you with exactally what you have been asking for.

There will be a “limited time” special offer available to the readers of this blog.

I’ll keep dropping hints during the next week.

Please let your friends – especially those who like powerful business-building tools know that this offer will only be available through this blog.

Thanks for reading and please keep your eyes peeled!

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When I first began to work in consulting I used to hear everyone talk about “positioning”.  I had no idea what positioning meant.  I just knew that the thought leaders (gurus, smart guys and girls) kept talking about it.

What I didn’t know I learned quickly.  And I am re-learning that lesson now.

While I still have a full complement of clients at Gallup, I have started a small coaching practice that helps entrepreneurs grow their businesses.  In starting this business, I planned to work with a handful of really good clients – maybe 5–10 total.  I thought that I could position myself to the market based upon the prices I would charge for my services.  I set my fees for 2 separate one-on-one sessions at $500 per month and I figured I would pick up a couple of clients here and there.

Can you guess what happened?

Yep.  Lots of clients. Pricing was too low.  It communicated that I was a bargain.  I know because I asked all of my new clients what they thought of my fees. One of my new clients summed it up best by saying:  “They’re great –  how else could I afford to work with a business coach who has written a book and has an Ivy League degree? You cost less than my car payment.” 

Ouch.  I’m definitely under priced.

I’m now working diligently (and quickly) to change my business model to accommodate all of the clients that have requested my services and I’m looking at ways to make my one-on-one coaching more exclusive. 

I re-learned a lesson I teach my clients all the time:  We always undervalue our own ability.

Stay tuned for more updates on this work in progress…

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If you want to improve the profitability of your business you need to read this next post.

During the past year I piloted my entrepreneur coaching system and the results have been phenomenal.

My team and I coached 20 small businesses and independent professionals.  These businesses each had less than $1 million in annual revenue and less than 100 employees. Most of the business owners were in the process of deciding if they wanted to stay in business or go out and look for jobs.  Some of them were overwhelmed by the complexity that had engulfed their lives.

We worked with these fantastic people for the past nine to twelve months.  We coached them on Strategic Planning, Sales, Marketing and basic Organizational Skills.  

Ninety percent of our coaching was done over the phone.  We had weekly sales and marketing teleseminars, monthly on-on-one sessions (again via phone) and quarterly workshops with a mastermind group in Miami, Florida.  (Yes, everyone loved to come to Miami four times last year  – but the focus of our sessions was on their business – although some of our clients brought their families and made a vacation out of it.)

What were the results?

All the businesses grew their revenue by 50% or more.  Six of the businesses are on track to produce revenue over $1 million in 2007.  But the most amazing part – every single business doubled their profit during the year we worked with them.

You read that correctly.  All 20 businesses doubled their profit!

What are the secrets to this amazing success?  They stick to the F.A.C.T.S.

Focus – Coaching forces business owners to prioritize their activities.  They learn to look for a return on the investment of their time from everything they do.  If it is not a “high value” activity, they don’t do it.  Period.  Some activities can be delegated.  Many activities are unnecessary yet business owners do them because “that’s the way they’ve always done it”.  We help them sort and prioritize how they spend their time.

Accountability – Our coaches do not let business owners off the hook.  If the client sets a goal, the coach keeps forcing the business owner to take action toward that goal.  Sometimes the work is tough but the results speak for themselves.

Confidence – The business owners build more and more confidence each time they see results.  Coaching helps them learn to celebrate all the small victories that will eventually lead to larger victories.  Confidence is responsible for a good portion of the success each of our successful entrepreneurs enjoy.

Tactics – Many business owners only know one way to do things.  For example:  Several of our clients focused solely on advertising as a way to bring in new customers.  This is expensive and often ineffective.  We work with our clients to develop at least seven different ways to acquire a new customer.  This helps to diversify how they fill their client pipeline.  Using this philosophy, if something doesn’t work they stop doing it.  

Strategy – Everything our clients do is guided by a strategic plan that fits with their personal mission and leads to achieving their goals.  They run their businesses in alignment with the way they live their lives.  Our first task in working with a client is to remove the barriers that prevent them from achieving success.  Normally these barriers consist of their own limiting beliefs.  Creating a strategic plan that not only addresses their business goals but does so in a way that helps them align with their personal values and mission is our first priority.

Congratulations to all 20 of our business coaching success stories.  As we expand our coaching practice we look forward to many many more of these phenomenal success stories in Miami, Florida.

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Thanks to Rich for pointing us to this Union Sentinel article:

Every day thousands of people are looking to get out of the “rat race” to work at home.

Most of those people want to get started on a home based business so badly that they do not always make wise decisions in choosing a home based business opportunity.

As a result, many fail miserably and are left worse off then before they started. This, of course, does not need to be the case.

1 - Most new opportunities do not help you make money. They will give you some ideas for making money, but then leave you out in the cold by having you do everything on your own.

2 - Unfortunately, some home business opportunity owners will take your money and run. There are too many fly-by-night operations out there that will not hesitate to scam you.

3 - Some home based business opportunities will have you working long hours for little pay. This is a good way to get burned out, tired, frustrated, and eventually quit.

4 - Many home business opportunities offer products nobody really wants. You should never try to market any product that people couldn’t care less about.

5 - Many home based business opportunities force you to become a salesperson. There should already be an established market for the product or service and a system in place to eliminate as much of the “selling” as possible.

6 - Some home based business opportunities pay small sums of money and no residual income. Stay far away from these! If you market products or services that don’t sell for very much money and don’t offer any residual income, it’s going to be almost impossible for you to make any real money or obtain financial freedom.

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One of the most frequent topics for questions at www.AskDaveLorenzo.com is Firing People.  Business owners often want validation for their decisions when they have decided to let someone go. (Incidentally, I hate that term – let go.  It is not as though the person wants to leave in the first place and you are going to finally “let them”).

Most of the questions center around firing someone because they made a mistake.  First mistakes, repeated mistakes and good intentions are all referenced as business owners, leaders and managers look to make themselves feel better after a tough conversation.   

Keep in mind that you need to check all local and federal labor laws before you make a decision on discontinuing employment.  It is best to consult an attorney for advice on this topic.  I am not an attorney and this blog should never be used in lieu of the advice of a licensed professional. 

Here are my general thoughts on mistakes and the consequences for the employee who makes them.

Click Here to Read the Entire Article

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Attention readers of Startup Fever:

A new blog dedicated to Business Leadership and Success, Entrepreneurship and Start-Up Success is up.  I have included a special category titled Startup Fever.

You can expect a few posts each week dedicated to StartUps.

The feed address is: http://feeds.feedburner.com/DavidVLorenzo-TheBusinessAdvisor

You can also access the blog by bookmarking the StartUp Fever site:  http://www.StartupFever.com

Thanks to all of you for your patience while I got everything sorted out with the new blog.  I hope you enjoyed the content at Career Intensity enough to subscribe and keep reading.

Special thanks to Ken Dyck for his tireless dedication to Startup Fever and his effort to help me get everything moved over.  Please keep reading Ken’s blog and join me in wishing him the best of luck in the future.

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From Seth Godin:

You don’t realize how much you need a boss until you don’t have one. Bosses don’t always do the following, especially when they’re not very good bosses, but here’s what we know about good bosses:

Bosses organize your time for you.
Bosses decide what’s urgent.
Bosses give you cover when you work on something stupid (”she told me to!”)
Bosses pay you even when the client doesn’t honor the invoice.
Bosses can be sued.
Bosses create deadlines, and stick with them.
Bosses make sure you show up in the morning.
Bosses pay for the Postits.
Bosses give you someone to complain about.
Bosses carve up the work and give you just that piece you signed up to do.
Bosses give you a role model. (Sometimes one to work against, but that’s a different story).

The main thing a boss does, though, is give you the momentum you need to get through the stuff that takes perseverance. The main thing that ends the career of a Free Agent is the lack of a hand pushing on the back, someone handing out assignments and waiting for the deliverables. Who keeps you going when you don’t feel like doing it?

If you don’t have a boss, you may need to invent one.

Seth is asking people to rate their favorite posts (from his blog) of 2006. This is mine.

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Attention readers of Start-Up Fever I have a Holiday gift for you…

Beginning January1, 2007 you will have your own blog (hosted by yours truly) focused on Entrepreneurship!

Thanks to those of you who have stuck with us while this project was in development.  The blog structure has been assembled and we are currently populating it with content. 

I’ll announce the address and redirect the subscribers of Start-up Fever to this new site right after the first of the year. 

Again, thanks for your patience and I hope that most of you remain Career Intensity Subscribers as well.

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From The Globe and Mail:

Successful entrepreneurs are supposed to be outgoing, risk-taking workaholics.

But Rhonda Abrams says there are actually nine different types of entrepreneurs, each with their own style and interests, allowing more of us the chance to enjoy the joy of entrepreneuring:

1. Adviser: Some entrepreneurs are paid for giving advice, such as lawyers, accountants, and financial advisers.

2. Administrator/Organizer: Like organizing? You can plan weddings, oversee projects, or take care of accounts, databases, and order fulfilment.

3. Builders/Creators: Artists, bakers, carpenters, and designers are examples of entrepreneurs driven to create something tangible where it did not exist before.

4. Caretaker: People with a helping personality find opportunities taking care of people, plants or property.

5. Communicator/Trainer: If you can transmit information or communicate in different languages you might find demand in sales, marketing, writing, training or a variety of information services.

6. Entertainer/Host: If you thrive on being with people, you may find an entrepreneurial opening in the hospitality industry or service industries such as hairdressing. Or you may be an entertainer, actor, musician, or singer.

7. Investor/Owner: If you have money to invest you can put your capital to work for you investing in stocks, real estate or businesses.

8. Seller: This covers salespeople and brokers in our purchases, from real estate to insurance to art.

9. Technologist/Engineer: If you love figuring out computers, autos and engines, you may want to explore entrepreneurial opportunities in software development, engineering or technology.

Which entrepreneur are you?

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One Year Ago:

That knot or sinking feeling in the pit of your stomach that you feel on Sunday night as you look ahead to another week at work and the dread that envelopes you as you perform the mundane tasks that fill your days at the office are the career equivalent of flashing red lights. They are sure signs that you haven’t discovered and channeled your passion – that you haven’t taken the steps necessary to move toward your goals and achieve your dreams.

When you assume responsibility for your career, you will move into the driver’s seat and take control of your destiny. When you overcome the fears that keep your career stuck in neutral, you can accelerate toward your goals. When you clearly understand the impact of your decisions and actions, you have a roadmap to success. Ultimately, you become driven by an unstoppable force that is, in essence, Career Intensity.

Once you have made the commitment to value creation through the process of continuous improvement, you are on your way to becoming an intense, driven person who will stop at nothing until you are living your dream. At this point, you must carefully exorcise the self-doubt that will drive your career into a ditch.

You will achieve all of your goals. It will happen. Whenever a doubt creeps into your mind, you need to banish it as if it were the enemy. Doubt is the enemy of success. As long as you have the ability to draw breath you have the ability to achieve your goals. You are smart enough and you have as much ability to become successful as anyone else.

To reinforce this thinking, get a rubber band and put it around your wrist. Any type of rubber band will do. Now, when you find yourself daydreaming about your goals or your future success and a doubt creeps into your thoughts, snap the rubber band. When you feel the sting, tell yourself that self-doubt can only hurt your progress and that, as you move forward, there is no room for it in your life. Immediately think about a positive action you can take to make your daydream a reality. The trick is to associate pain with the negative thought and replace it immediately will a positive image. Practice this exercise for a week, or until you find yourself immediately replacing negative thoughts and self-doubt with possibilities.

Your mind has the ability to create any world that you can imagine. Perspective is simply the way you see things, and not necessarily the way they really are. The first step in developing Career Intensity lies in taking control of your own mind by controlling your thoughts. It’s your responsibility.

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Seth points out another case of the damaging effects of ego-based marketing.

He ponders the need for a sign that reads “Under New Management”.

“Why would anyone put a sign like this up on her store?

If I liked your store before, now I’m on notice to be careful–it might not be as good.

If I didn’t like your store before, why on earth am I paying attention to your little sign and why should I go out of my way to take another chance?

This is a vivid symbol of the ego-centric nature of most marketing. The sign is about the owner, not about the prospect.”

Amen.

Everything you put in front of your customer should be customer-centric.  Ultimately, good marketing should help the customer (sometimes this is done through education) and/or prompt customer action. This type of sign does neither.

At the end of the day, no one cares who is managing the store. 

Before crafting any customer communication, put yourself in your customers shoes then ask the question; What’s in it for me?  If your marketing communication does not answer that question it is, at best, a waste of money.

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Which camp do you fall into?

Check out Tom Peters PowerPoint and let me know.

My opinion:  I’m a “Do” kinda guy.

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Everyday I see an example of a Business Owner or Manager who believes that if he/she ignores a problem or issue it will go away.

This is NEVER true.

As leaders we may not overtly profess a belief in this philosophy but I guarantee that it exists on some level.  At some point, in our subconscious mind, there is a little voice that tells us that inaction is easier than confronting issues.

Again, this is NEVER true.

Issues or problems that are ignored just grow worse (and eventually explode).

Take a moment right now and list some issues that you have ignored.  Which ones should you address immediately? 

Take care of these things now.  As painful as they seem, they will only get worse if you ignore them further.

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From USA Today:

“What are you waiting for?

If you’ve been thinking about starting a business, perhaps you’re waiting for “just the right time.” But is there ever such a thing as just the right time to go into business for yourself? Sometimes it’s the right time, and you’re not even aware of it.”

The timing is never right and it’s never wrong.  There is only “now” and regret.  If you start your business and you go broke, you will never have any regrets.  If you start your business and you are successful you will be a genius.  If you don’t start your business now, nothing will ever change.

You have no choice.  Get going.

Thanks, Dane for the link.

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I would like to take this opportunity to welcome all of the readers of StartUp Fever to The Career Intensity Blog.

We are in the process of overhauling the StartUp Fever Website and while we do that we’d like you to make yourselves at home here.

We expect StartUp Fever to be up and running with a new look within the next few weeks.

Please send me any comments or suggestions you may have on how we can make the New StartUp Fever the best experience for Entrepreneurs.

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Check out The Sales Intensity Blog.

The last few posts include:

Sell Yourself First – Four killer tips to get your clients to like you.

The Five Habits that Make You More Money – These are the five key behaviors that will help make you rich if you own a business or sell for a living.

Grab Some Attention – Six ways to get your sales and marketing copy noticed and more importantly, read.

All three of these posts can help you build your business today. 

We’re off to a blazing start at The Sales Intensity Blog. 

Bookmark http://salesintensity.com/blog  today. 

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Health care benefits have become more expensive in recent years, which puts them out of reach for many Americans. Of the more than 45 million Americans who are uninsured, nearly 60 percent are employed by small businesses.

According to a recent survey commissioned by Aflac of 501 small-business owners, many understand the role of a good benefits package in the hiring process.

Nearly two-thirds of respondents reported that they are concerned about their company’s ability to provide a benefits package that will attract and retain employees.

Half of those surveyed agreed that they cannot attract and retain top-quality employees without offering competitive health benefits. However, small-business owners also acknowledged that providing benefits presented certain financial issues as well. The survey found:

• Nearly half reported that increasing health care costs have negatively impacted their employees’ wages.
• Six in 10 respondents agreed that “it is important to financially help employees with health challenges and medical emergencies.”
• Forty-two percent of those surveyed agreed that annual increases in health benefits have made them decrease their offerings.

In feedback from small business owners, Aflac also found that many of them assumed that coverage was available only to large corporations. As a result, the insurer launched a new nationwide radio campaign focused on letting growing companies know that Aflac may provide an affordable solution to enhancing employee benefit offerings.

As you can imagine, Aflac is just one of the options available to small businesses.  No matter who you chose as your insurance provider,  there are three fundamental types of group insurance.  They are:

Health Maintenance Organization (HMO)
Health Maintenance Organizations are “pre-paid” insurance plans in which individuals or their employers pay a fixed monthly fee for services, instead of a separate charge for each visit or service. The monthly fees remain the same, regardless of types or levels of services provided, Services are provided by physicians who are employed by, or under contract with, the HMO. HMOs vary in design. Depending on the type of the HMO, services may be provided in a central facility, or in a physician’s own office.

Preferred Provider Organization (PPO)
The preferred provider organization is a combination of traditional fee-for-service and an HMO. Like an HMO, there are a specific doctors and hospitals to choose from. Unlike an HMO, a PPO does not require that you choose a primary care doctor to monitor your health care. However, you can use doctors who are not part of the plan and still receive some coverage. There is still a network of health care providers that have agreed to provide medical services to a health plan’s members at discounted costs. PPO members typically make their own decisions about their health care rather than going through a primary care physician like HMO member. The cost to use physicians within the PPO network is less than using a non-network provider.

Indemnity (Fee-for-Service) Health Insurance
This is the traditional kind of health care policy. Insurance companies pay fees for the services provided to the insured. This type of health insurance offers the freedom to choose doctors and hospitals. One can choose any doctor they wish and change doctors at any time. These plans also allow the insured to use any hospital in any part of the country. These are the types of plans that primarily existed before the rise of HMOs, IPAs, and PPOs. With indemnity plans, the individual pays a pre-determined percentage of the cost of health care services, and the insurance company (or self-insured employer) pays the other percentage. For example, an individual might pay 20 percent for services and the insurance company pays 80 percent. The fees for services are defined by the providers and vary from physician to physician. Indemnity health plans offer individuals the freedom to choose their health care professionals.

Be certain to shop around before selecting an insurance plan and an insurance carrier.  Insurance fees, like just about everything else in life, are negotiable.

Information source: Health Insurance Finders 

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From The Entrepreneurial Mind:

A study recently released by the SBA’s Office of Advocacy has some interesting findings related to entrepreneurship, income and wealth. The study finds that in 2001 small business-owning households were more than twice as likely as non-owning households (57.1 percent to 25.5 percent) to be high income (defined as at least $50,000 in family income).

The study also found that small business owners were over eight times more likely (21.2 percent to 2.5 percent) to be high wealth households. High wealth is defined as having at least $1 million in family net worth.

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When you run a business every decision is critical. Each choice you make has bottom line implications.

Separating the rational aspects of a decision from the emotional aspects is especially important for a small business owner. The question is not why but how to keep your emotions in check when the stakes are high.

Below are three quick tips to use when your emotions can cost you money.

The first trick is to try to avoid making decisions when you are in an emotional state - if possible. For example: People who are angry usually make quick decisions that they regret. Just like the old trick of counting to ten before responding to an inflammatory comment – you should delay making decisions when you are angry.

Getting a good night’s sleep can change your outlook on a potential decision. Things often look different in the morning. Always sleep on all major decisions related to hiring, firing and investment opportunities (especially real estate). Always think for at least a few days before you make decisions about getting family and/or friends involved with your business. Definitely spend at least a week thinking about alternatives before agreeing to borrow money from an individual (vs. a bank or other institution).

Second, try to bounce ideas off of others when you’re feeling overly emotional. Someone who is removed from the situation will often serve as a “voice of reason”. You need someone with you in places like electronics stores, car dealerships and when looking at office space / furniture. In short, if the decision involves your ego you should involve someone else. They will help keep your need to feel important (by buying the nicest office chair) in check.

Finally, don’t be pressured into making big purchases. If someone offers you a “take it or leave it deal” or a “one time offer” on an item that costs more than $500 - just walk away. You can be sure that if they made that offer once they will make it again. Besides the fact that you may be making a big mistake, buyer’s remorse on pressure purchases is always very high. Think of this as saving yourself some future guilt instead of missing out on a “great deal”.

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Over the next couple of weeks, I would like to give you a look into a wide sampling of careers of people I know. We’ll look at the advantages and drawbacks of various types of employment situations and various fields, and I’ll discuss how you can use these elements to enhance your own career.

I recently conducted a short interview with an acquaintance of mine, Jill, who has been running her own marketing and public relations business for three years. I asked her a few questions about her career path and her plans to intensify her career in the future. She’s a great study in career management, problem resolution, personal equity, and individual growth.

What is your title? Creative Director.

What do you do? I bring in new accounts, manage them, and develop all manner of marketing materials.

Jill performs a wide range of duties in running her own business, building personal equity that is transferable to any other work she might undertake in the future. The more varied your abilities and the more adaptable you are in your work, the greater your chances of advancement and success.

What do you like most about your work? I’m completely autonomous, I choose the people I work with and the projects, and, best of all, I determine my worth.

She isn’t restricted by the dollar amount stamped on her by human resources. She sets her own rates and has complete control of her financial well being and future. No matter what type of work environment you’re in, you must negotiate for great pay and benefits. No one else is going to do it for you.

What do you like least? Inconsistent income and lack of benefits. It’s not easy to be disciplined about savings and retirement planning!

This is a common concern for business owners. However, with greater earnings potential comes greater savings potential. You do have to be regimented and focused on financial stability, but anyone with the determination to succeed at running her own business certainly has the wherewithal to devise a sound long-term financial plan.

What are your career goals for the next year? I hope to increase my income by at least 15%.

When was the last time you got a 15% raise? Most people count themselves lucky to get half that.

What are your career strengths? I’m always ready to learn new things, whatever I need to learn to get the job done. I’m highly driven and determined.

Another great thing about running your own business is that it almost always requires you to learn new things. And, again, you take that education and those skills with you everywhere you go.

What are your weaknesses? I could be more confident in my design abilities—sometimes I’m afraid of showing my work. I have burned a few bridges, which is not the smartest business decision.

Have you taken any action in the last five years to improve upon those weaknesses? A lot of introspection and life experience have made me understand this and really attempt to change it. Time and experience have given me more confidence and a better sense of what my real talents are. I’m not the most talented designer in the world, but I know how to make the most of my design strengths. I’ve forced myself to put myself and my work out there.

I love Jill’s self awareness. She’s a great example of how being the biggest or the best is not the most important thing. What’s important is knowing what you’re great at and knowing how to leverage those skills for the greatest good and gain.

In your work, what unique value do you offer? As designers go, few of them approach design from a marketing and public relations point of view. Instead of focusing on what’s “pretty”, I think about what’s most effective. I know my audience well, and I capitalize on that.

She gives the customers what they want and need. Jill identifies her clients’ unique problems and solves them in a direct and reliable way. Think about what your customers want that they are not getting, then give that to them.

What will you do to achieve your goals for the next year? I plan to seize more opportunities rather than let them pass by, and make smarter choices about what business to pursue. I also plan to work on developing and propagating my business image.

Jill has a lot of focus. She’s making smart plans about increasing and improving business and working on her personal brand.

Do you use relationships to help you in your career? If so, how? Oh, absolutely. Every contact is helpful; relationships just expand my network. Much of my time, in promotion, is spent hooking people up with each other, and helping them, whether or not they’re clients. My rewards come later.

She realizes that relationships are the foundation of any business endeavor, and she cultivates them. Keep in mind that any contact is a potential lead to greater opportunity and success.

What is the single most important thing you can do to maximize your career success? Increase my self-confidence.

We can all work on that. No one’s going to believe in someone who doesn’t believe in himself.

I would like to thank Jill for sharing those insightful thoughts. She’s a shining example of the principles put forth in Career Intensity.

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I agree with young entrepreneur Adam McFarland:

“The life of a successful entrepreneur is much more ‘secure’ than the life of a typical business owner and it’s not even close. An entrepreneur usually has multiple streams of income, can’t get fired at any time for anything (what are the odds that all of their customers fire them at once?), and if they decide to leave the business they can sell it (try selling that job you got fired from).”

Nine-to-fivers who are skeptical of new ventures usually cling to the following Three Lies of Career Limitation:

Security. People who work for companies tend to believe that their jobs are stable and secure. Though the hours and tasks are usually predictable, in actuality, they enjoy no more security than any smart and hard-working entrepreneur. The only security you will ever have is confidence in your talent, skills, and knowledge. Even the best performing employee can be laid off in times of low returns. In fact, some companies have been known to lay off their most talented employees. Those who have worked hard and fought for fair pay and benefits cost the company more in the short term, so they are sometimes the first to go. Don’t make the mistake of confusing routine with security.

Benefits. Many people who work for others are afraid that if they work for themselves, they will no longer have paid vacation, health coverage, and a retirement plan. It is true that, as a business owner, you must assume responsibility for your financial future yourself. However, since your earnings potential as an entrepreneur is much greater, you can pay for these benefits and have money left over to save. You might even be able to retire a decade before those friends of yours with “stable jobs”. When you call the shots, you have much more flexibility, so you can go on vacation when you want and plan your life in the way that makes most sense to you.

Loyalty. Employees who have worked for companies for a number of years—or, in some cases, only a short time—believe that they must repay the company that has been good to them with their loyalty and service. Let me remind you that if you weren’t generating profits for your company, you wouldn’t have a job. The average employee yields at least ten times his salary for his employer. Exceptional employees can bring in much more. You don’t owe your company anything, and if you’re not getting a strong return on your time and energy investment with them, you should feel free to look elsewhere.

As Adam points out, we’re not all meant to be entrepreneurs. Some people are very happy working for companies. However, I do encourage everyone to keep an open mind and an active spirit when it comes to their careers. The traditional employment scenario is not the only option available to you, and you never need limit yourself because the alternatives are too risky.

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“There’s never been a better time to start your own company. New technologies are creating new business opportunities on the Internet, on mobile phones, in consumer products, and in information services. At the same time, many of these technologies have radically reduced the costs associated with launching a new venture.”

I couldn’t agree more. If you’re thinking of starting your own business, I encourage you to go for it, or at least start giving it some serious consideration and planning. Even getting started on a part-time basis can do wonders for your career, self-confidence, business relationships, and future.

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Yesterday I had the pleasure of appearing on the Jim Blasingame radio show.  Jim is The Small Business Advocate.  His show is syndicated to 25 radio stations and appears live on line.

Click here to listen to the archive version of the segment. (It runs about 20 minutes).

Jim’s web site is a great resource for small businesses and entrepreneurs.  He interviews hundreds of people each year and he is a source of valuable information.

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Many businesses – both large and small – fail at the basics.  I am not referring to the basics taught in an MBA program.  I’m talking about the basics of life.

You goal in business is to convince people to give you their hard-earned money.  In return, you must provide something of value.  In many cases, how you provide the value can make all the difference in the world. 

Here’s an example: 

When I come out of the subway on my way to work in the morning there are coffee carts on every corner.  In the three block walk to my office from the subway I pass six carts.The coffee tastes the same from each of these carts.  I always get my coffee from the cart on the corner of 50th and 6th.  Always.  Why?  Because I introduced myself to Rich (the proprietor) and he remembered my name.  He also remembers how I take my coffee.  In fact, he prepares my coffee before I get to the front of the line.  When I get to the window the coffee is ready for me.  After I pay, Rich always thanks me. 

Rich does not have an exceptional product.  It is his delivery of the product that makes all the difference.

Here are three little things that you can do that will make a big difference in how your customers feel about your business:

Extend a warm greeting to each customer.

It is probably impossible to remember the names of all of your customers. You don’t need to know a person’s name to extend a warm greeting to them.  This can be as simple as a smile,a nod and a hearty “good morning”.  It has become so uncommon that people are often surprised when this happens.

Act like you are happy that the customer is there.

Everybody has a bad day.  You should never, ever, bring your bad day to work.  You should treat each customer as you would want to be treated.  Always remember that these people are giving you their hard-earned money.  They deserve courtesy and respect.  You are on stage each time you open the doors to your business. This is true weather you like it or not. 

Sometimes customers will take out their anger and frustration on you.  Nobody deserves to take abuse at work.  The best thing you can do when this happens is kill your customer with kindness.  The best revenge is taking more of their money.

Thank the customer for their business.

Customers always have choices.  You should appreciate the business a customer gives you – no matter how big or small.  Let them know that you appreciate it.  Thank them.  Make sure it is genuine.  It only takes a second.

I am amazed at how many businesses fail to execute these three basics of human interaction.  Don’t allow your business to be one of them.

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Entrepreneur magazine gives some ideas on weekend businesses to start. Working for yourself part time, while having the stability traditional employment provides, is a smart way to make some extra money, learn useful skills that will translate to any field or work situation, and find out whether you even enjoy being an entrepreneur.

I know many people for whom this has worked out very well. Some are at present dividing their time roughly equally between their business and another company. Some of them started off doing their own work part time, gradually reduced their employment for a company, then shifted to their own business full time.

If you’re considering trying this, I would suggest that you devote your extra time to your passion. Maybe you’re a graphic designer who dreams of being a professional photographer. Why not do a few baby or family portrait shoots for friends for free, then use these first projects to start your own portfolio? Or perhaps you could take a photography class and assemble some work from that. Use your portfolio to draw in clients. You never know where something like this might lead, and you have nothing to lose in trying.

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Here’s an inspiring article about making a living doing what you love.

“‘A lot of would-be entrepreneurs have a passion but lack the courage to follow it through to a business,’ says Theresa M. Szczurek, a Boulder, Colorado-based technology and management consultant and author of Pursuit of Passionate Purpose. ‘There will always be people who want to rain on your parade and tell you all the reasons you can’t do something. If you want to turn your passion into a successful business, you have to have self-confidence.’”

She’s right. There will never be a shortage of naysayers who believe you can’t succeed or, more likely, are terrified that you will succeed and point out all the more where they fall short. Surround yourself with friends and business partners who believe in you and encourage you to take your life to the next level.

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An entrepreneur has many things to worry during the start-up process.  One of the most common requests I receive from people who are starting a new business is to teach them how to sell.  For many new entrepreneurs, this is the scarcest part of the process.  While this may be intimidating at first, it doesn’t have to be overwhelming.

Entrepreneurs sell themselves at every stage of the start-up process.  Entrepreneurs already know how to sell.  They sell their ideas to their family first.  Betting their future on a new business takes some convincing.  After the family comes the people who will finance the venture.  The business owner must make a compelling case in a charming way.  Next they sell to vendors.  A new business has to convince suppliers to extend credit to an unknown entity. Finally, even a small business will need to find some help.  Hiring employees into a start-up requires sales skills.  By the time the customer comes into the picture the entrepreneur has already sold to quite a few people. Ultimately, just about every entrepreneur has some sales experience.

Begin with the obvious targets. One of the most difficult aspects of selling is identifying the right customers to target.  If you don’t pick the right targets you will end up wasting valuable time trying to sell to people who are either not willing or not able to buy from you.  The obvious targets for your new business are people who are already purchasing similar products and services from your competition.  If they are working with the competition, they have a need for what you can provide.   If your price is competitive, you have an opportunity to take the business away from the competition.  To do this you need to show your prospective customers how you are different. 

Show them the benefits of working with you.  As you point out the differences between your business and your competition you should show how you will solve a problem for your customers. The key is to make the conversation about your customer.  It is all about them.  If you focus on how your customer will benefit from working with you, you will have a far better chance of making the sale. Put yourself in your customer’s shoes and answer the question “what’s in it for me?”.

One of the most powerful ways to demonstrate the benefits of your products and services is to attach financial benefits to the work you are proposing.  Show your prospect how much money he will save by working with you.  Use past experience with other customers as an example.

Ask for the business. This seems basic but many people don’t do it.  It is not pushy. It is smart.  One of the best ways to ask for business is to say something like “Just give it a try”.  You’ll be shocked by how many people will respond favorably to a non-threatening statement like this. I have closed deals for large consulting engagements by asking my customers to “Give me an opportunity to show you how much money I can save you.” 

Follow through. Immediately after someone agrees to work with you, you have an opportunity to expand the relationship. People have an innate need to have their behavior match the statements they make to others.  If your customer  makes a public statement about their relationship with you,  immediately offer them the opportunity to expand the relationship – even slightly.  They will often accept.

Selling is a natural activity for many entrepreneurs.  Getting started is often the most difficult part of the process.  Be yourself.  Let your passion come through and your customers will thank you.

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Do you want to start your own business but lament the fact that you don’t have much money to get started with? According to this article, lack of funds is no real excuse.

“‘People who have money aren’t any more likely to start businesses than those who don’t have it,’ says Erik Hurst, associate professor of economics at University of Chicago’s Graduate School of Business. Put another way, people who have a compelling reason or drive to start a business will do so.”

Money: Personally, I know people who have started small businesses with as little as a couple of thousand dollars. You will likely have to cut some corners for a while till your business takes off. Isn’t it worth it, though?

Attitude: Someone with confidence, faith in his success, and unwavering determination to achieve his goal of starting his own business has a very strong chance of making it.

Purpose: Knowing what you hope to gain from running your own business, such as freedom, money, time, sense of accomplishment, skills, experience, gives you the drive to see it through.

Career: For some, charting their own career path is a thrilling prospect. Finding a need, offering a product or service to answer it, doing it well, and affording yourself a measure of control and freedom that are almost nonexistent in the corporate world—these advantages are deeply exciting career prospects.

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Career Intensity was fortunate enough to have a post selected for this week’s Carnival of Entrepreneurship.  Dane Carlson is the host over at Business Opportunities Weblog.

Click here to check it out.

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