MoneyWiseWomen

Are You Serving Your Customers or Just Doing Your Job?

One way or another, we all have customers. We may be supporting co-workers and managers or we serve external consumers or business partners. How we approach our work may make a huge difference in our effectiveness and the perceived value of what we actually deliver. All in all, the only control we have over doing what can seem like a thankless job is changing our outlook on why we are doing it.  If you are unhappy in your current situation, the following steps may help lead you to a new understanding of your role or to a new way of thinking.

Understand your motivation. Are you:

• Providing a service or simply completing tasks?
• Earning a paycheck or changing lives?
• Energized by finding solutions?
• Fueled by the successes of others or focused on your own?
• Encouraged by challenges and opportunities to learn, or are you feeling like you are in over your head?

The Secret of 1,000,000 Followers: Karen Hutton's Story

I would be thrilled for any client to reach 1,000,000 followers, but it has been exceptionally thrilling watching photographer Karen Hutton reach the 1,000,000 follower milestone on Google+. While it is a great accomplishment, that’s not what has made it thrilling. The thrill has been that she reached the 1,000,000 mark without seemingly trying. It’s not your typical story, but not much about Karen is typical.

What does it take to reach 1,000,000 followers?

Most of the entrepreneurs I know believe that it takes the right investment, the right guru, the right system that will firmly place them on the path to entrepreneurial success. Most have invested tens of thousands of dollars into marketing, consultants and coaches. They’ve spent hundreds of hours of time implementing strategies, launching ideas and working, working, working very hard. Karen, much like her photography, has taken a different approach.

Financial Accountability and the 21 Day Accountability Challenge

What could you accomplish in 21 days if you knew someone was watching you, checking in on you, facebooking and tweeting about you? Would the goals that you daydream about become clearer, more tangible? Would you be inspired to turn them into SMART goals (specific, measurable, attainable, realistic and timely)? Would you triumph under the magnifying glass of accountability?

21 days ago, my company, Creating Answers, launched the 21 Day Accountability Challenge. We asked people to send in their goals and we chose one lucky person to support, watch, Facebook and Tweet about his or her progress towards his goals. And the lucky winner was:

Kevin Knauss of Insure Me Kevin. Hands down he was the winner. He sent us nine goals and he was clearly excited and ready to hit the ground running. We were concerned that his nine goals were a bit lofty, so we did what we do. We sat down with him and helped him translate his goals into numbers.

3

“Make my website a wealth of information and the hub of my marketing efforts” became “Blog at least 3 times per week,”

100

“Expand my small group health insurance clients” became “Complete 100 direct mailings each week for the next 3 weeks,” and

1,500

“Expand and fine tune my social media marketing plan” became “Have 1,500 Twitter followers by March 14^th.” As of March 13^th, he’s at 1,300; go follow him @InsureMeKevin!

Being an entrepreneur requires a unique kind of willpower. There’s no one, in the short run, watching you every day and holding you accountable. You have to really want to do what you’re doing, and you have to follow through. In the long run, your customers will hold you accountable. If you don’t provide value, they won’t return and you’ll run out of money. That’s long term accountability. But in the short run, no one is paying attention to how you show up in your business. Kevin has made amazing progress in the past three weeks because he was willing to expose himself while propelling himself forward.

When it comes to managing our money, many of us have willpower issues. For those of us that are single, there is no one else giving us feedback about our financial decisions or asking us if we did what we said we were going to do.  We have no one to be accountable to, no one to answer to when we spent twice what we said we would on eating out. Rarely does anyone ask us the question: “are you funding your retirement?” or “do you have 3 months of reserves in the bank?” Even for those of us in a relationship, the money is often handled by one person, and the other person doesn’t really want to know what’s happening. I’ve had many a client lament that his or her partner won’t even talk about financial decisions. They just want it handled.

How can you use accountability to propel yourself forward with your finances?

• Write your financial goals down and share them with a trusted friend. Check in once every few months and tell them how you’re doing.
• Work with a Certified Financial Planner that will ask the hard questions and be honest with you about your financial health.
• Join the online community at Get Rich Slowly’s Fiscal Fitness Journals.
• Become transparent and start a blog like Save Karyn’s Grand Debt Tally.
• Join a mastermind group that focuses on your money like Financial Boot Camp.

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Stacey Powell builds financial muscles at TheFinanceGym.com and shows off Financial Art at Facebook.

Checklist for Branding Your Small Business

One of the hardest parts of starting up your small business is figuring out your brand. Who are you? What do you have to say? Most importantly, what makes you different from everyone else out there? Follow this checklist to learn more about your business and create your own unique brand.

Why Entrepreneurs Should Embrace Bank Transfer Day

In the first few months of working with me, clients get this advice: “move your banking to a small bank and develop a relationship with your banker.” Unfortunately, clients rarely take the advice. The reasons I’m given are everything from the obvious “I like the convenience of ATMs everywhere” to the inane “but I’ve been banking with them since high school.” Yes, you’ve been banking with them since high school, and you’ve had a business account with them for 20 years. Does anyone there ever talk to you? Help you? Advise you? I didn’t think so.

When I started seeing momentum building around Bank Transfer Day, I was excited. Not because I embrace the philosophy behind the movement, though I do, but because I knew that one outcome of the movement would be that thousands of entrepreneurs would end up in stronger, more supportive banking relationships.

Big banks do not support small business owners. They just don’t.

Whenever I see banking slogans, I imagine myself in a conversation with the president of the bank. So, Mr. Brian Moynihan, how is it that through banking with Bank of America, my service-based client with annual revenues under $500,000 will “get just what [he] needs for [his] business?“ And, Mr. John Stumpf, how is it that Wells Fargo will help my small not-for-profit client who is “working to build a successful business?“ When you go to Chase.com, they clearly delineate the playing field for you. Business banking is for those with revenues up to $10,000,000. Is your business nearing $10,000,000? If so, that’s great. Perhaps you should be banking at a big bank. But for the rest of us, the 99% of business owners if you will, we’ll be ecstatic when our revenues reach $1,000,000, or even $500,000. And until your business starts to approach those million dollar numbers, your banker is not likely to spend much time thinking about you, or even bothering to remember your name.

That is just one small reason I’m a huge fan of local banks and credit unions. My other three favorite reasons are:

• Big banks have a revolving door for employees. Just when you get to know your bank manager, she’s promoted to some bigger branch or department and you’re left building another new banking relationship with another green bank manager.
• Employees at small banks are given the latitude to make decisions and use their judgment. Employees at big banks rarely have the ability to override bank policies and procedures, even the most minor ones.
• You matter. Even if your business is very small, a small business bank values you as a customer. There is almost always going to be an actual human being who truly wants your business.

The turning point for me, the moment that I became clear that all small businesses should be with a small bank, was when I learned first hand what my favorite Manager at PriceWaterhouseCoopers once told me: “Being a bank manager at a big bank is akin to being a manager at McDonalds. You have very firm policies and procedures, and it is your job to ensure that they are followed. There is no room for judgment or reason.”

I had seen this play out with clients in my first few years of advising small business owners. I’d have conversations with their bank managers about some decision that didn’t make sense, one that was hurting my client’s cash flow or ability to borrow. There was always a policy behind the decision. It was annoying, but I’m a big fan of systems so it generally made sense and I learned in those first few years that you can’t budge a big bank.

And then something happened with my business at my big bank. I made a mistake. I deposited a very large check into the ATM. I knew better. I was in a hurry and wasn’t thinking. And the minute that happened the time clock went off on a 14 day hold. But I needed the cash in 7 days. It was the experience of talking to the branch manager and department heads who could have reversed the hold (they knew the check had cleared) that implanted in my mind, I will never bank at a big bank again.

I moved to Sacramento’s River City Bank. I am a tiny client there, as are a number of my clients. The reason why all entrepreneurs should move to a small local bank or credit union is this: at River City Bank, when one of my clients needs something to happen that is outside of the bank’s policies and procedures, I can pick up the phone and talk to my bank manager. She knows me. She’ll talk to me. She can’t always override a policy, and I wouldn’t expect her to. But she does always explain the reason for the policy, talk through options, and in instances where it has made sense, she’s overridden policies and assisted clients with their banking needs. I have newer client who also banks with River City Bank, but their reserve funds are at ING.com. When I asked why, they said that their bank manager advised them to move their funds to ING.com; that the rates were better at that point in time. River City's bank managers have done, as have other local bank managers, what I have never seen a big bank do: “gotten my clients just what they need for their business“ and “worked with them to build successful businesses.”

That is the kind of service you should expect from your banker. And that is why, political reasons aside, you should make a smart business decision to participate in Bank Transfer Day.

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Stacey Powell builds financial muscles at TheFinanceGym.com, creates financial clarity at CreatingAnswers.com, and shows off Financial Art at Facebook.

Throw Your Spending Plan Out The Window

 

In “Entrepreneurship and Making ‘Adult’ Financial Decisions” I Told the Truth about why I wasn’t at the eWomen Network Conference this year. And I outlined a spending strategy I had developed with a client:

 

“One of my favorite clients loves conferences and trainings; she has about $4,000 annually in her spending plan. She wants to spend more, but her business’ budget doesn’t allow for it. We developed a profit-splitting plan that puts a percentage of her business’ net profits into a savings account titled “Business Investments.” She doesn’t have to spend that money, but when a conference pops up that she wants to attend, she no longer has to discuss it with me or agonize over the pros and cons of the decision. If the money is in the reserve account, she goes.”

 

Best laid plans. While she was away at the eWomen Network Conference I received a text from her:

 

 

There are a lot of gurus out there selling marketing, sales and mindset training/coaching programs. Entrepreneurs invest hundreds, thousands, and tens of thousands in these programs. The potential and possibility of learning from someone like Lisa Sasevich can be irresistible, and in the moment of making the buying decision, it’s challenging at best to separate logic from emotion.

Learning from the Experts

 
Nine years ago – on August 2, 2002 I stepped outside my comfort zone and took early retirement from my Public Relations job with the Social Security Administration after reading the quote “Our purpose is life is find our gift, perfect it and give it back to others”. My gift was founding Money Wise Women to educate and empower women to live financially healthy. In the past nine years I’ve hosted 66 Money Wise Women conferences, wrote and published The Money Therapist: A Woman’s Guide to Creating a Healthy Financial Life, created the Money Wise Women blog, and began hosting Money Wise Women Get Smart Teleseminars. Since I worked for the Federal government for 26 years starting my own business and a non-profit organization was definitely a stretch outside my comfort zone. I learned how to build a successful business from professional experts. Today many of these women are my mentors, colleagues and friends.

Women often think they have to do it alone (whatever IT is), but it’s a myth. There are a ton of resources available on every topic under the sun. Money Wise Women Get Smart Teleseminars are a free resource sponsored by the Direct Selling Education Foundation. In the past several months I’ve interviewed extraordinary professional experts. These amazing and talented women freely shared their wisdom and expertise. I know everyone who listened to the interviews benefited from the tips, suggestions, ideas and resources shared. Below are just a few of the tips:

Entrepreneurship and Making ‘Adult’ Financial Decisions

When I launched on Forbes.com I promised myself that I was going to start Telling the Truth. It’s easy to be a financial guru, talk at people, and tell them, “This Is How You Should Handle Your Money.” It takes more courage to be transparent and share stories not just from our clients, but from ourselves, and even more courage to share not just from our past, but from our present. So here I am, being courageous.

 

Every summer I head to Dallas for the annual eWomen Network Conference. I look forward to it all year long. It’s the largest business women’s conference in North America, and an amazing place to learn, connect and be inspired. Sandra Yancey, CEO of eWomen Network, provides the incredible opportunity to learn from a long list of business rock stars: Michael Gerber, Tony Hsieh (zappos), Robert Stephens (Geek Squad), Lisa Nichols, Zig Ziglar and the list goes on. This summer, I’m not going.

 

What’s an ‘Adult Financial Decision’?

 

Adult financial decisions are logical decisions—ones we intuitively know are good decisions even though every other part of our being disagrees. When we make adult financial decisions, our inner child screams, “But I wanted that!” or our lips pout or our hearts feel heavy. Last month I made the adult financial decision that my team was not going to the conference this year. As a result, I’ve been walking around pouting and having a heavy heart. And then I heard a voice shout: “Stacey, how many hundreds of times have you advised people who were conflicted about when and how much to spend on professional development??? Stop being a weenie and write a blog.”

 

Entrepreneurs make the assumption that they are the only ones making emotional spending decisions. “If I just ran my business more like a business owner, I don’t think I’d have these cash flow issues.” The truth is that entrepreneurs are human beings, and most of us humans make emotionally-based financial decisions. That’s not a bad thing. It’s when we don’t balance emotionally-based decisions with logical ones that imbalance can capsize our ship. Over the past year, my business has made a number of bold spending decisions, some logical, some emotionally-based. We’ve also pruned our client tree (let a few clients go who were no longer a good fit). The end result is that our reserves are at low tide.

 

Could we go to the conference? Yes. Do we have the cash? Yes. Would there be consequences? Yes. Is it worth the consequences? Logically, no.

 

3 Words to Small Business Success: Easy, Fun and Popular

What’s the attitude you show up to in your business each day?

Are you having fun?

Does it lift your spirit to connect with those you need to connect with to be successful in your business?

 

In my blog Community Service, Leadership and Small Businesses, I told the story of how my best friend Tina Reynolds, long-time small business owner of Uptown Studios, uses her love of community service to drive the marketing for her business. I met Tina 15 years ago, when she was doing volunteer work for a local HIV/AIDS service organization, and through the years I cannot begin to recall how many organizations, actions and activities she has led or been part of. Her dedication and stamina for community service are unparalleled, and as a result she frequently receives awards, honors and nominations.

 

At this week’s California Small Business Day, she was honored by California’s Senate President pro Tem Darrell Steinberg as the Capital Region’s Small Business of the Year. Senator Steinberg made an excellent choice. From the vantage point of a best friend I’ve watched Tina’s business grow, and then sputter, and then grow again. I’ve watched her maneuver through the economic challenges of the past few years, always with a positive attitude. 

 

So how exactly do you get to be a Small Business of the Year? What makes Tina and her business stand out as a role model for entrepreneurs? To use Uptown Studios’ tagline, be Easy, Fun and Popular.

 

Easy

In my Forbes Profile I write about blocks I've Been Around: putting $10 of gas in my car because that's all I had.This was years ago, so I’m going to out Tina: she was the one I passed that $10 back and forth with. Sometimes I needed it; sometimes she did. Entrepreneurship isn’t always glamorous. But Tina, no matter how challenging a client project or how tough a business issue she faces, always has a can-do attitude and exudes to her staff and her clients that it’s easy. “Let’s just jump in and get it done.” And to persevere as an entrepreneur while enjoying a personal life, having an “It’s Easy” attitude is vital.

The Top 5 Mistakes New Entrepreneurs Make When Establishing Their Rates

For new entrepreneurs, sometimes it can be difficult to decide what you want to charge for your services, and understand how to bring together your dreams and desires while still making the math work; you have the dream, but where does that break down into cold, hard cash?  Here are 5 pitfalls that I see happen time and again with new entrepreneurs:

They don’t begin with the end in mind.   New entrepreneurs are often so worried about making a living that they don’t consider being selective with their hours or clients.  The set an hourly rate that forces them to reach their income goal through volumes of meetings and work!  This is a perfect way to wear yourself out and begin to feel like you’re just punching a clock again.

They only use their gut to decide what they should be charging.   Checking in with your internal body compass is a great way to assess if you’re on the right track, however, so many people tell themselves “stories” about their money that sometimes this isn’t the most effective method—most new entrepreneurs get a knot in their stomach just from thinking about charging someone, so you have to get past that story before you can objectively look at pricing.

They are starting part-time and defer the decision.   Some new entrepreneurs tell themselves, “I’m transitioning from my existing job and doing this on the side, so I don’t need to start charging what I WANT to charge immediately.”  This just defers the inevitable AND causes you to work at the job you want to leave for that much longer!

They don’t use the right math to figure out how to maintain their existing lifestyle.   Most new entrepreneurs use their salary from their last job to determine what they need to maintain their life, but being an employee and being a self-employed business owner are so different financially that new entrepreneurs lose time and money because of miscalculated assumptions.

They under value the experience they have.   Many new entrepreneurs are paralyzed by the thought that part of their rate is a reflection of experience and mistakenly think “small” when setting their rate.  What new entrepreneurs need to realize is experience is subjective, and the actual game changer is the level of confidence they have in their direction!  Each one of us was put here to offer something unique to others. 

One of the reasons a person decides to become self employed is improving their bottom line, yet sometimes the thinking that caused them to originally be frustrated with their finances will also bring those same issues into their new business. 

When new entrepreneurs only look at what they are comfortable charging, and they don’t figure out what they should be charging, there’s bound to be setbacks.   Avoiding these pitfalls will ensure that the new entrepreneur does not waste time or money when launching their new venture!