Management

Business Savvy of a Six-Year Old

I recently had the opportunity to babysit for a friend. Since I don’t have children, this was quite an event. Her daughter is six years old and in kindergarten. I love interacting with children of this age for the usual reasons—no diapers to change, they can clearly communicate their needs/wants in complete sentences and they have a refreshing and wonderful sense of humor. I also love that they have a vision for their futures.

Most any child that age is quite definitive about what he or she wants to be when they grow up. Sometimes they may still be in the process of narrowing down the choices, but when asked, they typically answer quickly and with conviction.

For my friend’s daughter, the question was decisively answered with the response—fashion designer. I don’t know about you, but when I was six I wasn’t even aware that such a vocation existed. Not surprising I suppose, since my wardrobe consisted mainly of Toughskins, Garanimals and a few hand-me downs from older cousins. What I found absolutely inspiring about my little friend’s vision was that she not only knew what she wanted to be, but how she was going to get there. She had a plan.

She told me that her favorite class is art or “awt” as she pronounced it. She also revealed that her grandmother and aunt were going to teach her to knit and sew, because as she informed me, “every fashion designer needs to know how to sew!”

Her passion for creating led us to undertake some crafting activities. And right at my dining room table, the start-up of a six-year old’s microenterprise began to transpire. She asked for paper and markers to draw me a picture. I rummaged through a closet and produced a small storage container full of random crafting supplies. One peek into that box and her plan to simply draw me a picture turned into the vision for an entire product line.

She took the confidence that she had for her own skills and combined that with the resources within that container, and before I could say Wobizzle.com, production was underway.

She began creating her mixed-media artwork, an outdoor scene of three Christmas trees, using her paper, markers and random items from the crafting container. When she was finished, she immediately began production on another, then another, then another. As she began each new piece, she announced the intended recipient of the work. I was delighted that I made the list. Five pieces later, she concluded her work day and we retired to the living room to watch a video.

As I watched her operate, I realized there were a few business lessons to be learned from this young entrepreneur.

Do something you love and are good at

My young friend not only enjoys creating art, but also has a great amount of confidence in her ability to do it. She took pride in each piece and was certain that the individuals she would be giving the pieces to would be very pleased with the product. Her love for her craft kept her happy and motivated as she kept the production line moving.

Know your target customer

This “kinderpreneur” had the benefit of knowing her “customers” by name. That’s not possible for every business owner, but every business owner should attempt to understand who her target customers are, what they want and how she can meet their needs. Dig deeper than just demographics, try to understand them as people.

Know your strengths, outsource accordingly

After a few unsuccessful attempts of trying to glue sequins onto the paper, my young guest enlisted my help to handle the job. She realized that she didn’t have the skills to do it efficiently, so she outsourced the task. The result was that the job got done and she was able to spend her valuable time on the portion of the project that required her expertise.

So, today I challenge you to channel your inner six-year old. Draw out the confidence and imagination you had at age six (I know it’s in there somewhere), combine it with the skills, experience, knowledge and street smarts you have developed in your adult life and simply believe. Believe in yourself and your ability to turn your great idea into a business success.

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Eight Ways To Keep Your Business Competitive

Gone are the days of business as usual. Welcome to a new era of a constant and rapidly changing business landscape. To keep your business competitive, you must be prepared to innovate and roll with change.

Laura McCaskill owns two successful businesses, Medavera and The Medical Package. She has also served as a counselor with SCORE, a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed. Laura says business is changing so rapidly that it is critical for business owners to spend time thinking about where their businesses are headed and how they will adapt to increased competition and other changes in the marketplace.

“If you don’t you will miss something that is crucial to your growth,” she says. And perhaps even your survival. “The world is flat,” Laura warns. “And there is somebody ready to take business from you.”

That said, when you are caught up in your business’ day-to-day operations, it can be difficult to think about the big picture and to take time away to plan for the future. Here are some tips to help you take those first steps to keep your business competitive.

Plan Early And Often To Keep Your Business Competitive.

Start now. If you wait until your competition has seized your territory, it’s too late. And while the beginning of a new year can be an inspirational time for goal setting, Laura suggests re-visiting your plan at regular intervals to tweak as needed to make sure you remain competitive.

Retreat!

Not from your competition, but from the distractions of your daily operations. Get away from your office or storefront so you can have some uninterrupted time to think. Do some advance prep work. Your time will be much more productive if you set an agenda for what you want to accomplish in your planning session. If you have employees, invite them or key staff members along to brainstorm. Make them aware of the agenda in advance so they will be prepared.

Talk it up.

Initiate an open discussion about the challenges your business is facing and how you can overcome them. Envision and communicate where you want your business to be in the next three months, six months, or year. Set aggressive but attainable goals and line out the action steps to achieve those goals.

Find a Sounding Board.

Group brainstorming is a great way to develop new ideas and creative solutions to business challenges. But, if you’re a one-woman show, you don’t have the benefit of that dynamic. Laura recommends finding other business owners with which to share your challenges, identify solutions and float your ideas. “One of the things that continually surprises me is that most people in business truly want others in business to succeed,” she says. “Find someone who has had success and is very positive,” she suggests.

Why Me?

The most successful businesses are those that are able to set their products/services apart from the competition. That point of differentiation may be price, quality or a unique niche that only they fill. They know why their customers choose them and they use that to their advantage. Ask yourself why me? Why do/would customers choose you over the competition? What is different about your product or service? Build your marketing efforts on your answers. Revisit these questions regularly, because new competition may be trying to move in on your territory.

Consumer Survey.

Laura says one of the things that business owners often intend to do, but for lack of time, put on the back burner, is to ask their existing clients/customers for feedback. Don’t just make your best guess. Find out from the people who use your products/services what you are doing well, and what you could be doing better. And don’t forget the most important part. Use that information to make improvements.

Focus.

You can spend a lot of time and money trying to let everyone know about your business. But in a competitive market, working smarter, not harder will give you a better return on your investment. “You have to devote more time to business development now than ever before,” Laura says. “A blanket approach is not going to be nearly as effective as targeting highly probable clients or customers.” Laura’s advice is to be continually engaged in business development activities, but to take a thoughtful approach. Spend some time really thinking about not only who your ideal customer is and but also who it isn’t, and focus your efforts accordingly.

Flexibility & Adaptation.

The final piece is flexibility and adaptation. As good as your plan may be, unforeseen circumstances happen. You have to be willing and able to adapt as your situation changes to keep your business competitive. Whether your competition moves in next door or street construction puts a damper on your business’ foot traffic, you must be able to alter your plan of action to position your business for success.

Laura says a positive attitude can make a difference. “It is absolutely critical to be an optimist if you are in business today. Focusing on the negative can bring you down in ways you wouldn’t even imagine, in your outlook and your ability to move forward.” Laura says being positive increases your energy level and willingness to try new things and think differently. Positive people tend to be solution-oriented, while negativity can paralyze you with fear so you don’t react to anything.

When you hit bumps in the road, use disappointment and failure to your advantage. Take the opportunity to learn from mistakes or misfortune. “Most successes in life and business stem from failure,” says Laura. “It’s how you channel it. You have to use it and learn from it. Discover something from the failure that you can learn and channel toward future success.”

Is Your Business Breaking the Law?

In this age of the internet, information may often be free, but intellectual property is not.

When I first began developing content for Wobizzle.com, I spoke with a lot of female entrepreneurs to draw from them topics that they felt would be relevant and beneficial to budding and seasoned business owners alike. Intellectual property issues rose to the top.

Through copyrights, trademarks, patents, etc. intellectual property law protects inventions, trade secrets and literary and artistic works from being copied and/or used without permission. The law also covers things like music, photography and even words, phrases and symbols.

You probably understand why you can’t just slap your company’s name onto the logo of a major soft drink company and call it your own. But surprisingly, small businesses violate intellectual property laws every day. Sometimes it is because they don’t think they’ll get caught. Other times it is because they simply don’t know that what they are doing is illegal. Regardless, the penalties for infringing can be hefty and it is worth educating yourself to ensure that you remain on the right side of the law.

One of the female business owners that suggested this topic learned this lesson the hard way.

As she was setting up her business’ website, she downloaded a photograph off of the internet to use on her site. She thought the image was free since, when she downloaded it, the image was clear and had no watermarks to suggest otherwise. Sometime later, she received a letter from an attorney citing the infraction and demanding $600 to settle the case. The business owner called the attorney, explained her ignorance and was able to reduce the settlement to $400.

How was she found out? Suffice it to say, there are ways.

Think of intellectual property just like you would any other property. Let’s say you own a restaurant and during the lunch hour you find that you don’t have enough chairs to accommodate your customers. You wouldn’t walk into the business next door to “borrow” some would you? Maybe you would if you knew the business owner, explained the situation and asked permission. But you certainly wouldn’t just take them. Intellectual property is no different. Essentially, if you are using something that someone else created or owns and you haven’t paid for it, you may be at risk of intellectual property infringement. When in doubt, get permission, preferably in writing, or find a paid option.

Using website photos as an example, there are ways to get what you need and stay within the confines of the law. One option is to take your own photographs. If you’re not handy with a camera, consider hiring a local photographer to take photos for you. Just be sure that your agreement with the photographer provides you with ownership of the photos. Another option is to purchase stock images through online services like Getty Images or iStockphoto. When purchasing through an online stock photography service, read the license agreement carefully so you fully understand what you can and can’t do with the photographs.

A $400 penalty was a hefty price to pay for the small business owner in this post. But the reality is, it could have been a lot worse.

U.S. law allows for penalties of up to $15,000 for willful infringement. Another harsh reality, the business owner paid a $400 penalty, but if she had gone the legal route in the first place, she might have been able to purchase the license to use the image for much less.