Small business

#12 – When Saying No is Right for your Business

Are you doing what you love? Does your business make you happy? If it isn’t then it may be time to change the way you run your business.

Today I am talking with Sam Hunter, a quilt pattern designer for the quilting industry. Quilting is a $4 billion dollar industry in the United States! Despite being associated as an activity for the elderly, quilting is a huge industry and Sam has capitalized on this with her designs. Sam joins me to discuss her experiences as a business owner and choosing the right projects for you. It’s all about doing what you want to be doing as opposed to doing what others (society) think you should be doing.

Why you should do what you love

When saying no is right for your business

Sam designs what she is passionate about because she believes the end result will be better. If a fabric company approaches her with a design and she tries to do it, i.e. table runners, she finds they don’t sell well. The fact that she isn’t committed in her heart to that work means they don’t sell well, so she only creates what turns her creativity on.

If you create a business with a lot of “poop sandwiches,” as writer Elizabeth Gilbert describes it, then it won’t sell well or do well because you are not going to give it your all; because your heart is not into it.

When you love what you do, you do it better

It’s easier to promote, sell and do the day-to-day when you love what you do! With every creative job there is the behind the scenes stuff that you also need to do, i.e. a website, social media, etc. and you need to get good at it or hire out for it, but in order to do this you must love and believe in what you do. You need to know that doing what you love means creating systems and processes that allow you to focus on this.

After reading the book Essentialism – The Disciplined Pursuit of Less by Greg McKeown, Sam realized that when you’re in the business of doing your work, you are working on being more productive and efficient. Are you doing the right things in your business? Sometimes there are places in your business where you think “heck no,” but there are business reasons behind having to do whatever that thing is.

What is essential to your business?

In order to run a business that makes you happy, you need to protect your income stream, your body and your family and family relationships. Your body needs to come first in order to be able to do the rest.

Body and health

According to McKeown, our first asset is your body. Don’t work so hard that your body breaks down. Look at the decision processes for your business and think if it will stress you out, and if so, can you hire it out? Is it cost-effective? Does it support your health?

If you’re doing the wrong work your body will tell you through migraines, etc. It’s not all about having the time—it’s about whether or not it will exhaust you or cause you anxiety. If you are running at a level of busy that means you can’t maintain self-care then you will run out of steam. This doesn’t necessarily mean investing in yoga classes, but it could mean questioning what you are eating. Are you relying on take-out too often? Are there fruits and vegetables in your fridge?

Income stream

When it comes to your business tasks, you need to decide whether any of the things that must be done need to be done by you and if so can you hire that thing out. Outsourcing gives you back the time you need to do the things only you can do. You can outsource for graphic design, social media, bookkeeping, etc.

Family

It's simple - when was the last time you spent time with close friends and family - the people that nourish your soul?

Don’t do what you don’t want to do. Remember, just because you can do something, doesn’t mean you should. Another thing to think about is 'can you do your best work within the time allotted to you?' Doing it well doesn’t come with the hustle. Can you be proud of your work in this situation? Do work you love AND you’re proud of.

The fear of saying no

You can have a sustainable income by saying no because it gives you more room to say yes to the work you do want to do and that you’re good at. The polarization within our society that if you’re A then you’re not B… and if you’re A then you don’t like B… this isn’t true—there is room for all of us.

Just as there is room for other quilter designers there is a room for other people within your industry – only you can do what you do and everyone else can do the rest. Don’t play in the realm of scarcity. Believe there will always be people who like your work. If you play in the realm of scarcity, you will get scarcity.

Competition

When it comes to competition, be all that you can be, but swim in your own lane. Don’t look too much at others; keep them in mind, but don’t focus too much on them. Instead focus on yourself and what you do.

We will all have frustrating days, but love what you do. Sam loves the puzzle of what she does. She has her mission and system that keeps her on track, for example she doesn’t do kits because she doesn’t want to. By figuring out what she likes to do she stays on track and keeps her goals in mind. Just because you say no to something doesn’t mean it’s permanent… they can become possibilities down the road—if you want them to be. Your business is constantly evolving – just make sure it is the business you want and that everything happening in your business is for a reason.

Resources & Links

Sam Hunter's website: Hunter's Design Studio

Join the Free Facebook Community

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#5 Moving your business beyond the startup stage

In the first couple of years, business owners often struggle with understanding how much work running a business is and how long it can take to have a profitable business.

Angela Sutcliffe is a business consultant (and Smart Old Broad) who draws on 30 years of knowledge  and experience to move her clients beyond the start up phase. Angela works with business owners to  design and implement strategies that are relevant to their business and their industry to make them consistently profitable. Over the years, she has won many awards for her business acumen, as have her clients, but the one thing she is most proud of is being selected by Kevin O'Leary's production company to work with the winner and runner up of his reality TV show, Redemption Inc. as they rolled out their new businesses.

 

I spoke with Angela about what she believes every business owner needs to know before taking his or her business to the next level.

Know your numbers

According to Angela, 90% of businesses are gone within two years. Business owners don’t understand what profitable means because they don’t pay attention to their numbers—instead they work to build a business that makes their clients happy, but does not make money. If you’re not bringing home a pay cheque then your business is not going to work.

If a business owner does not know how much money they are making or if they don’t know if they are making enough to support the lifestyle surrounding it (their bottom line) then they are working to please their customers while simultaneously going broke. If you start your business with a number in mind then you can work from there.

You can’t make up numbers based on what you think people will pay instead of what you need to earn. Money is the one thing people avoid, but once you understand that a number is just a number you can work towards earning that number.

How much it costs to run her businesses and how big her pay cheque needs to be – those are the two numbers that, added together, make up her sales target.

Freedom and comfort comes from knowing your numbers. If you know your numbers and see that you're not hitting them, then you can look and see if you are trying to sell high price items to a market that cannot afford it, etc. so you can determine what exactly is not working.

Know your sales cycles

Have you heard about the hundred percent solution? It goes like this: in your first two years of business you sell to your friends and family and their friends, and then at the end of those two years, your sales stop.  That’s because you made the easiest sales possible—you sold to the 20% of the market that will buy from you now.

In order to succeed, within 1.5 years of selling you have to learn about how the sales cycle and process works, and how to sell to the other 80% of the marketplace. If you don’t, you will fail.

So, what is a sales cycle? Well, think about how many business owners believe a customer when they say they have to 'think it over'? Most think that means they'll never buy, but believe it or not, most customers really do need to think about it. Did you know that 24-36 months after an initial interaction is when 80% of your sales will happen? When you think about the number of people who come back to you a year or so after they are first introduced to your business or product, that's a good demonstration of you sales cycle.

There are generally three steps to a sales process – meet a potential client and follow up with card, go out for coffee, and have a closing conversation. However, people may surprise you and want to meet for coffee and say they are following you online, or met you at a networking event a year or so ago and now they're ready to work with you even though you've never met them—it’s happened to Angela! But to get there you need to do the work because the sales cycle was happening behind the scenes.

It can be discouraging and you may not think anyone is listening to you, but remember the 20% and 80%! Think long term and in two years you will be closing the 80%. Sales isn’t anyone’s job, activity is the job—sales is the result. If you have good marketing activity and get yourself out there then you will make the sale. Just keep in mind that you won’t be a millionaire by midnight.

Keep in touch with past clients

Your next best sale can come from your past clients – they know you and love you and have had a great experience with you, so you should always keep in touch with them—and not in a salesy way. There are all kinds of ways to keep in touch with people, including inviting them to attend events, or just catching up on social media. Make them feel important.

While they may not work with you now, past clients may know someone who would be perfect for you, so keeping those relationships healthy is in your best interest.

Stop doing, start planning

One of the hardest things for business owners, at any level, is the drive to keep doing things. Before you exhaust yourself by doing things that may be futile, remember that the best thing anyone can do is to stop and plan.

Plan your finances – for marketing and your business.

Stop and get advice, so that you’re optimizing your products and business. Business can get expensive, so it’s important to stop running your business and plan what comes next.

 The keys to the kingdom are in planning.

All business owners stumble. Even Angela had to get help with her business; she had almost bankrupted her cleaning business and it took two hard years to turn it around. You have to swallow your pride and ask for help, plan and work. Seek help from the right people – it’s the behind the scenes that can make or break your business.

Leave a comment and tell us what your sales cycle is, or let us know if you have any questions!
 

Resources & Links

Angela's website: Smart Old Broad

Join the Free Facebook Community

Subscribe on iTunes

Subscribe on Stitcher

Podcast Contest

As this new podcast gets off the ground, I’d really love your help to make sure that it gets in front of the right people. The first weeks of a podcast’s life are the most important in terms of the opportunities for iTunes to showcase you to other listeners. Because of that, I’m starting out this new podcast with a bang. There are 3 episodes available for you right now, and there will be at least two more episodes every week for the remainder of the eight weeks.

I thought I’d find some extra ways to thank you for all the sharing and supporting you do of the new podcast so every week until July 15th I’m going to be giving away one of my favourite business books to one person who either:

  • subscribe to the podcast or leave a review on iTunes; or
     
  • share the podcast on social media; or
     
  • come in to the Biz Studio and post your favourite tip from a specific episode (along with a link to that episode)

In all cases, you need to make sure that I either know who you are (email me a screen capture of the review or showing you are subscribed) or that the posts on social media are public and tag me (@larawellman) or the Biz Studio (on Facebook you can tag my page).

Each week I’ll be announcing the book winner on Wednesdays on my Facebook page

Some of the books I’ll be giving away are (I’ll be adding more titles soon):

  • The Big Leap by Gay Hendricks
  • It Starts with Why by Simon Synek
  • How to Live a Good Life by Jonathan Fields
  • E-myth Revisited by Michael Gerber

So get out there and start sharing your reviews and sharing the podcast and good luck. AND THANK YOU!

 

#4 Where to start before starting a business

Are you thinking about starting a business, but have no idea what that really means when it comes to time commitment or how it will fit into your current lifestyle? Pamela Eastwood, owner of By The Horns, a business that helps new business owners get their business off the ground, joins me on the podcast today to discuss what it really means when you say you’re going to start a business. With over eighteen years experience in SME development and franchise ownership, Pamela has a reputation for working with her mind, heart and her gut and has a talent for relating with others. Together we get under the hood to help aspiring business owners figure out as much as they can before launching their business.

 

Are you prepared for time management changes?

When you first start out as a business owner you must start with a conversation with your family. A business starts at home. You need to speak with your immediate family to ensure they fully understand your endeavour—they need to understand what they are signing up for, including you working longer hours, adjusting your level of home commitments, and any changing roles within the family. You need to look at your current schedule and then look to see if your tasks can be delegated or if you need to change your schedule around in order to make your business work with your family life.

There is a preconceived notion that being an entrepreneur means you will have more time on your hands, and while this is sometimes the case and it can mean more flexible hours, it also means you may be working more evenings and weekends than you ever did before.

And while you must be aware of the changes in hours and potentially longer hours, you should also keep in mind and discuss the benefits, such as the freedom to accompany your kids on school field trips.

You need to ask yourself and your family: what matters to you as an entrepreneur that will make the not-so good parts worth it?

Are you ready for any financial changes?

In addition to time management and schedules, starting a business impacts a family’s money. Finances is another deciding factor for any big business decision-can you invest in your business financially? Consider everything that you will need to spend money on: marketing, business cards, etc.—can you afford these? If there is a physical product, do you need to spend money on product development, etc.?

For some business owners this means looking into a small business loan, while for others it may mean changing their personal spending habits in order to invest in their business. Are you (and your family) ready for these financial changes?

Do you have any transferable skills?

How do you have to think as an entrepreneur? Pamela runs an assessment with clients to determine their strengths and weaknesses. Everyone has transferable skills that will benefit their business.

For example, are you genuinely the kind of person who can just walk into a room and talk to someone? This is a transferable skill that works well when running a business because it transfers well into sales and marketing, which are essential in running a business.

This also refers to typing, social media, customer services and technological skills. As a business owner you are probably doing a lot of this stuff yourself, unless you have a lot of capital.  So, if you want to sell jewelry you probably don’t have a lot of capital starting out, therefore you have to be honest with yourself and see if you can do it all yourself.

You also need to be honest about your personal assets—are you organized, driven, is your office cluttered? Will this impact the success of your business?

Having a basic understanding of your skill levels from the very start will let you know where you will have to really work at certain areas more than others. If you wait until you are already in business and you have your hands in 10 different pots and are trying to learn these things while running your business, you may be setting yourself up for failure. Try to get enough of a foundation prior to starting your business.

How much money do you need to start?

How much money you need to start a business depends on the type of business you are starting. For example, if you are looking to start a lawn maintenance company, but already have most of the equipment needed then you only need to spend money on registering your business, for office supplies, and perhaps on local marketing and networking. So, this would be about $250 to start to get the word out about your business.

But if you are a baker baking cupcakes then you need money for inventory, inspections, permits, ingredients, a commercial kitchen, etc. There is a longer process to starting and setting up a bakery so you will need more money for that as well as money for office supplies, marketing and advertising.

You need to ask yourself what you need to start your business. If you’re not sure then you can research this through free business resources at the public library, innovation centres and community programs. There are also a lot of social groups that offer free tips and resources.

You can also barter for services—if someone needs a website and you have that skill, offer your skills in exchange for a website. Don’t be afraid to ask! You may be surprised at what you get. Just make sure it is for something you actually want and need—you need to make sure it makes sense for both parties. You want to treat a barter transaction as you would any business transaction.

Are you committed?

Commitment means asking yourself if this is the right time for you and your family—Do you have the flexibility required to make it work? Do you have the money needed to start?

Sometimes you may have the flexibility, but not the money and that means you may need to get a part time job to support your business. This the means you have to commit to setting aside certain days and time to work in and on your business.

Your commitment can vary depending on your situation—if you’re unsure you can commit to a certain period of time, such as three months. Just be sure to discuss this with your family and make sure it works for everyone.

When starting any business, it is important to know your skill sets and assets and then seek out help for the rest. You may want to look at hiring a consultant, such as Pamela, who can help you define the services and customers that are unique to your business.

Then establish early foundations in operations management. This means keeping receipts and invoices organized, get the appropriate processes, etc. Having these in place means you will spend the time working on making your business a success instead of spinning your wheels.

In essence, starting a business takes more than just loving what you do. You need to have make sure everyone close to you is on board, and have the foundation needed to ensure you have everything you need to give your business the best shot.

 

Resources & Links

Pamela's website: By The Horns

By The Horns Facebook Page

By The Horns Community Resources

Subscribe on iTunes

Subscribe on Stitcher

Podcast Contest

As this new podcast gets off the ground, I’d really love your help to make sure that it gets in front of the right people. The first weeks of a podcast’s life are the most important in terms of the opportunities for iTunes to showcase you to other listeners. Because of that, I’m starting out this new podcast with a bang. There are 3 episodes available for you right now, and there will be at least two more episodes every week for the remainder of the eight weeks.

I thought I’d find some extra ways to thank you for all the sharing and supporting you do of the new podcast so every week until July 15th I’m going to be giving away one of my favourite business books to one person who either:

  • subscribe to the podcast or leave a review on iTunes; or
     
  • share the podcast on social media; or
     
  • come in to the Biz Studio and post your favourite tip from a specific episode (along with a link to that episode)

In all cases, you need to make sure that I either know who you are (email me a screen capture of the review or showing you are subscribed) or that the posts on social media are public and tag me (@larawellman) or the Biz Studio (on Facebook you can tag my page).

Each week I’ll be announcing the book winner on Wednesdays on my Facebook page

Some of the books I’ll be giving away are (I’ll be adding more titles soon):

  • The Big Leap by Gay Hendricks
  • It Starts with Why by Simon Synek
  • How to Live a Good Life by Jonathan Fields
  • E-myth Revisited by Michael Gerber

So get out there and start sharing your reviews and sharing the podcast and good luck. AND THANK YOU!