Tripping On The Ladder

 By Dan d’Man
 (c) January 15, 2010

When I told friends and co-workers that I was starting my own business as a writer and communications consultant, I received all sorts of advice and insights.

Much of it was great and saved me a lot of headaches. Still, there were a few things I wish I would’ve known before taking the leap.  Things like…

Doing books “by hand” just doesn’t add up
When I started my business, I didn’t take the time to set up an electronic accounting/invoicing system — something like Quicken. I remember thinking, “My business isn’t big enough to warrant something like that.”  

Well, not long after, my business became too big to do my bookkeeping “by hand.” But then, I was too busy with work to take the time to set up an electronic system.

Do yourself a favor and take the time to set up your bookkeeping/invoicing system before you start your business.

You should treat your business like … a business
Successful businesspeople from all professions stress the importance of investing in your business. They recommend setting aside a certain percentage of your profits (10 percent is a frequent recommendation) for this purpose.

 Whether it’s updating your Web site, attending educational conferences, refreshing your marketing materials — it is important to sharpen your skills and add tools to your business resources.

On paper, it’s an easy concept to grasp. In practice, it can sometimes be difficult to actually write out those checks.

I recommend setting up a separate bank account in which you can regularly deposit a percentage of your business income. Having it already set aside can make it a little easer — psychologically — to spend it for its intended purpose. (Note: I also recommend this model for your quarterly business taxes.)

Freedom is a relative term
When you’re a one-person company it’s rare that you ever feel totally free from work. 

When I’m on vacation, I long for my corporate-employee days. It was so nice to be able to leave an out-of-office voicemail directing any immediate needs to another person in my department. That allowed me to truly unplug and enjoy my time away.

As the owner of a one-person business, I have no one I can direct calls to. It’s difficult to totally detach myself from “What if” scenarios. “What if my biggest client calls and has an urgent need? What if that company finally calls back and wants to bring me in on a project?”

And because nothing gets done while you’re gone, you do at least two weeks’ worth of work to prepare for a one-week absence. I have a real hard time telling my clients, “You know that really important project of yours? Yeah, just hang on and I’ll get right back on it when I return from Cabo.”

Running your own business isn’t impossible
Knowing — or at least assuming — this from the first day I started my business  would’ve saved me a lot of stress and lost sleep.

 I worried about getting clients, keeping clients, servicing clients, billing clients, bookkeeping, doing taxes, having enough work, having too little work, staying motivated and staying sane. You name it, I worried about it. While that’s my nature, it was magnified significantly when I started my business.

But then, slowly but surely, I realized that owning a business isn’t brain surgery. In fact, if you just work hard and follow your instincts, it’s really quite easy. It’s so easy, in fact, that I’m now writing an article about how to do it. (I gotta say, I didn’t see that coming.)

It’s also been the best business decision I’ve ever made. I’ve grown immensely as a person and as a professional and I shudder to think that I almost didn’t take the leap and give it a try.

Now that I’ve helped you avoid these four possible missteps, there’s really no excuse for you to not take the leap as well. If you’re relatively good at whatever it is you do and, most importantly, passionate about it, you can take any interest or skill and turn it into a business. 

 ABOUT THE AUTHOR
 Dan d’Man (a.k.a. Dan Deuel) is principal of Deuel Communications, a writing and communications consulting firm. He is a frequent contributor to Tripping on the Ladder. He lives in Minneapolis/St. Paul with his wife and two young daughters.

 Guest Column By Marni Hockenberg
 (c) January 4, 2009

As a professional trained recruiter and interviewer, I had enjoyed a long and successful career working for other people—including working as an award-winning senior search consultant for an agency that would become part of one the largest staffing agencies in the U.S. and serving as a founding member of an information technology training company, where I focused on business development initiatives.

It was a successful and exciting career by most accounts—but even so, I’d always held on to the hope that one day I would pursue my dream of entrepreneurship and start my own company. And, in 2002 I finally had the opportunity. I dreamed, I schemed, I planned and I just decided to “go for it.” Joining forces with a longtime colleague of mine, I co-founded The Hiring Experts, a search firm focused on providing recruiting and search services for companies of all sizes and in most industries.

 After The Hiring Experts closed, just last year I formed a new company, Hockenberg Search. Some of my clients call me a “professional matchmaker” or an “ambassador.” Whatever the terminology, my job is to help small- and medium-sized businesses find, recruit and retain top “A List” talent.

Throughout these years of entrepreneurship, including this most recent business venture that is mine alone, I’ve learned three important things that I think are fundamental to success, no matter what business venture or industry you’re considering. What’s interesting is that these tips also can apply for those of you who may be considering a new career opportunity rather than self-employment, specifically. 

1. Passion for your business is the key. 
If you have a burning desire to take your product or service to market and believe in your ability to succeed, you will stack the decks in your favor to “make it.” Your friends and family will sense the passion in your voice when you talk about your business; your customers and prospects will know that you take your business seriously; and every morning when you wake up, the passion for your business will propel you to forge ahead and put in many hours that will be a labor of love. If you don’t have a passion for your business, don’t even bother to start it.

2. An ad hoc “advisory board” of trusted friends, family or service providers that believe in you and your business will get you through the dark days of doubt and fear. 
Find people who are optimistic, have high self-esteem, have business experience, a track record of achievement and success, and who will tell you the honest truth (even if you don’t want to hear it).  These are your cheerleaders, and you don’t need to be the Lone Ranger when you start a business.

 3. Attend networking events and become active on social media outlets such as LinkedIn and Twitter.
You will begin to build your personal and business brand to the outside world which will differentiate you in the crowded marketplace. This is the beginning of building a referral network for your business. People generally need multiple exposures to a product or service before they buy it – your brand is the beginning of creating this awareness. What do you stand for? What is your value in the marketplace? What business problems or personal problems will you solve for your customers?  Ensure that people will feel proud to recommend you or your business to others.

Now…Good luck and go for it!

ABOUT THE AUTHOR:
Guest columnist Marni Hockenberg is principal of Hockenberg Search, a professional and managerial recruiting firm based in Minnetonka, Minn. With more than two decades of recruiting and business consulting experience, Marni Hockenberg has a proven track record of providing focused, personalized search services to small- and medium-sized businesses to help them find, recruit, and retain top-tier talent. 

By Jenaissance
(c) December 21, 2009

One day, when Chuck Solomon was in high school, his dad announced to him: “You’re going to help me re-roof the house.”

Taken by surprise, Solomon asked his dad, a pharmacist, “What do you know about roofing?” to which his father replied: “I went to the lumber yard and asked lots of questions.”

The roof got built (and lasted for years) and so did a new do-it-yourself hobby for Solomon, who went on to do the occasional home repair project for friends and was frequently hired to do some painting for a few of his college professors.

After a circuitous career over the next decade as a social worker, nonprofit administrator, information technology recruiter and, later, a stay-at-home dad, Solomon eventually returned to his hobby handyman business when his son started school. Before long, it had grown into a full-time venture.

Today, Handyman Solutions is the go-to resource for homeowners in North Carolina’s Triangle region who are seeking help with everything from stringing Christmas lights to simple repairs to full-on bathroom remodeling projects.

Solomon is the editor of the HouseFixer blog and recently published a book, Building Your Successful Handyman Business: A guide to starting and operating a profitable contracting business (available for purchase on Amazon), to help tradesmen better hone their business skills.

He shares his three best tips with others who have recently started, or are considering starting, their own small businesses:

1. From losses come gains.

The financial crisis led to the collapse of many businesses, both large and small, but for Solomon, it’s also sparked innovation. Instead of bemoaning lost income streams, he challenged himself to be creative in exploring new ones.

“I saw the writing on the wall when the banks crashed, so I went back to the well,” says Solomon. Back in the real estate heyday, for example, a significant portion of business came from real estate agents who needed help with basic home repairs contingent on closing a sale. When real estate activity dried up, Solomon flexed in a new direction: providing “on the ground” repair services to homeowners who had moved out of town but were forced to rent their homes rather than sell the property at a loss.

“I consider myself lucky, but also purposeful about taking steps to counteract potential challenges,” he says. “And, even in this economy, people are still living in homes. We’re not going back to caves and huts. There’s still a need for help.”  

2. Being the expert in your field doesn’t mean being an expert on everything.

There’s a lot involved in starting a small business—but many proprietors make the mistake of thinking they must go it alone. And that often leads to guesswork, which can be time-consuming at best, or costly at worst.

Take, for instance, taxes. Small business owners typically are required to file quarterly tax estimates with the Internal Revenue Service (IRS) and failing to do so can be a costly mistake.

“When you work for someone else, they take the taxes out for you before you ever see your paycheck and you never think twice about it,” says Solomon. “But when you start your own business, you alone are responsible for withholding the appropriate taxes. Guessing is hard—and I recommend that small business owners hire a CPA to work with you from the very beginning.”

And, if hiring a professional advisor is too costly for your checkbook, consider bartering services. Many small businesses are just starting out, like you, and bartering services is a great way to accomplish what you need, while also helping your collaborator build his or her own professional portfolio.

3. Be confident about pricing.

One of the challenges many small business owners face is what to charge for their services. When  starting out, it’s tempting to panic and start cutting prices or offering discounts just to get business—but that’s often a bad strategy for long-term success.

“I tell my clients that I run an above-board business,” says Solomon. “I have insurance, I pay taxes, I pay the people who work for me. I need to be profitable, and my clients need me to be profitable. They want to know that when they call me in a year, I’ll still be there.”

Even so, it’s important to determine a competitive pricing model. Solomon calls competitors to see what they charge for similar services, and he keeps impeccable client records to keep tabs on what his clients paid in the past. “People tend to buy by price, not value,” he says. “And most people won’t choose the provider who charges top dollar or the lowest dollar—they select someone right in the middle. So, I always try to make sure my prices fall right in the middle, and I always give my clients my best price upfront.”

ABOUT THE EXPERT

Chuck Solomon of Raleigh-Durham, North Carolina, is the owner of Handyman Solutions, a small business specializing in residential home improvement services from carpentry, flooring, painting and general handyman repairs. He blogs about various home repair topics on House Fixer and he is the author of the recently published guidebook, Building Your Successful Handyman Business: A guide to starting and operating a profitable contracting business.

 By Sharon Korbeck Verbeten
 (c) December 17, 2009

If you’ve purchased a first home, you’ll recall how that experience took research, planning, expense, time and a healthy dose of resolve. It also likely involved a leap of faith.

That’s not unlike starting your own freelance writing business—which I did five years ago. And while launching All Write Creative Services was just as unpredictable as buying my first house, my decision has proven just as comfortable as that modest two-bedroom ranch.

After more than 20 years working in magazine and newspaper journalism, I summoned up my desire and connections (along with motivation and moxie) to break out on my own. At first, I needed a bit of convincing, but with the support of family, friends and business associates, All Write Creative moved from a longtime desire to a reality.

Here are three things I learned from launching my own business.

1.       Remember: You aren’t just a freelance writer. You’re a business owner.
You’re not just a freelance writer; you’re a business owner. Before you begin, write a proposed business plan to determine the specifics of your business. What will you call your business? Proposed business expenses and income? Will you work 9 to 5 or have more flexible hours? Work from home or rent an office? Incorporate your business? Hire an accountant? Specialize or offer more broad-based services?

Proudly introduce yourself as a small business owner. Presenting yourself in a professional manner–complete with business cards and a title (I chose “editorial director”)—allows others to take you seriously. Too many people still believe that writing is something people do just for fun. Let people know this is your business, and they will be more likely to treat it as such.

2.       Don’t underestimate the power of networking.
Even if you’re extremely well connected, never underestimate the value of meeting new people. You never know where your next assignment will come from. More than a decade ago, I worked in the funeral industry; a former colleague of mine heard I was freelancing and later called me first when she learned of an editorial project in that industry. In another instance, I was chatting with an old friend who knew an editor in the waste management industry. Now that editor offers me regular work. Sure, in both cases, I had to introduce myself, follow up, provide writing samples and prove I could do the work, but I may never have pursued—or even known about—those opportunities had it not been for these contacts.

Don’t overlook other freelance writers. Consider them connections, not competition. Some of my best connections with editors have been through referrals from their regular writing stable. There’s plenty of work for talented, dependable writers, and editors trust their better writers’ referrals.

3.       Working on assignment…and other misconceptions.
Before I started my business, I thought I’d always be flush with assignments from my “regular” editors. It doesn’t always work that way. And while these clients are good to me, sometimes they’re too backed up with stories to need anything. Or they may be too busy to respond or make a formal assignment. That’s why you always need feelers and queries out there—to your regular clients as well as to new markets. And remember, once you break into a new market, be sure to ace the assignment (turn it in clean and early!) and foster the relationship so they become one of your regulars.

 Much like any major decision in life—buying a house, having a baby—starting your own freelance business comes with its own set of “must haves” and “must knows.” Remember that the key to staying sane while serving up success is being prepared and organized—while still being ready for the unexpected!

 
ABOUT THE CONTRIBUTOR
Sharon Verbeten, a regular contributor to Tripping on the Ladder, is editorial director of All Write Creative Services in De Pere, Wis. Before starting her own business, she worked for 10 years as editorial director of three national hobby magazines. A 20-year veteran of journalism, she now writes for many national trade and consumer publications in the antiques, library, funeral service, waste management and business sectors.