Beware of Business Scammers

The craftiness and intelligence of scammers is increasing every day. The sheer number and variety of scams now targeting small business owners is amazing. Previously, most stories regarding scam artists focused on the individual consumer. Today’s scams have a new mark in their sights, the new business owner hungry for avenues of quick, cheap marketing and overall exposure.

Entrepreneurs looking for additional exposure may look to join local or national networking groups or professional associations; there are multitudes to choose from. More credible sources include the local and state-wide Chamber of Commerce organizations which can provide not only training resources and business advocacy opportunities but networking events as well. Less known, and perhaps less reputable associations offer “limited or privileged membership to a select few” promising the ability to network with thousands of like-minded, successful individuals, even if most of the networking opportunities are done remotely or offered at all. Often, these exclusive memberships come at a price far higher than the amount initially quoted to prospective members and provide not much more than the ability to list their association’s name on your website or business card, if you dare.  Business owners who do decide to place membership may also find themselves unwillingly billed for multiple year renewals without prior authorization or consent.

The scams don’t stop at false membership associations. One of the biggest areas of concern for new businesses is marketing and advertising.  New business owners must decide the best way to utilize the precious few dollars earmarked for marketing while getting the most bang for the buck. While Google’s pay per click advertising is one of the most popular, it can easily become one of the most expensive methods of advertising if not managed closely. Scam artists have decided to jump on this bandwagon by contacting newly registered businesses and offering them heavily-discounted advertising plans with Google, Yahoo and other top named search engine sites. The deals are enticing, especially to cash-strapped owners, but be aware that these contact calls are often not from legitimate sources and they only thing they accomplish is exposing your credit card to unnecessary charges.

Another area of potential scam involving advertising involves the use of the popular posting site Craigslist. The site gained popularity as a means for individuals to post classified and participate in forums in their local area. Businesses can also post their services in appropriate areas of the site. Craigslist specifically states, “Please post to a single geographic area and category only — cross-posting to multiple cities or categories is not allowed.” Yet there are companies who business is to list multiple postings on Craigslist for business owners.

The above list is just a sampling of the many ways entrepreneurs may be lured into unethical or illegal business arrangements. There are of course, many legitimate companies offering services to help grow and expand your business. Be diligent in researching companies before signing on to any agreement and ask for the terms in writing prior to making a decision. Refrain from doing business with anyone who can’t or refuses to put their agreement in writing or who pressures you into making a decision over the telephone. If you have been the victim of one of these schemes, contact your credit card provider immediately and report the abuse. Unfortunately, the highly creative and business visionaries don’t always use their powers for good.

Are You Coachable?

Are you coachable? Have you heard that question before? The question can be posed to those looking to take on a new job or opportunity such as a promotional position or when considering starting your own business. When presented with that question, what’s your initial reaction? Do you respond with an immediate, resounding “Yes, I’m open to learn new things” or do you fill with pride, offended that you were even asked to respond in the first place?

Stop. Don’t respond. Take a minute or two… or ten and consider what is really being asked of you. If pride was present in your response, then take another ten minutes to determine why your response was full of arrogance. Being coachable usually refers to one’s ability to accept feedback from others; one who is open to learn new things that may help them improve themselves. As much as we may say we want to learn new skills, develop new talents or explore new areas, we have to be willing to submit ourselves to someone else’s knowledge and expertise to get us to the new destination.  It’s the act of submission that is a problem for many of us, the point where our arrogance and pride get in the way, blocking our ability to hear and see things differently than we currently believe, thereby limiting our development, rendering us un-coachable.

In order to push beyond these temporary limits, you must first learn to humble yourself. Ironically, allowing submission and humbleness in your life can increase your view and knowledge of the world, moving you closer to your goal. Here are three quick ways to develop a humble nature, making you more coachable in any situation.

Choose to serve others. Our culture strongly promotes individualism and self-serving behaviors, a sharp contrast to this task. Stop looking to be recognized for your contribution but look to support others in their efforts.

Speak well of others. Negative comments made about others is often a way of elevating ourselves by belittling others. Be sincere as you strive to build others up and not simply promote yourself.

Be grateful. By developing an attitude of gratitude, the more aware and thankful you become for all that you currently possess and have access to. Opportunities presented to you are no longer taken for granted but can now be fully realized.

Embracing these simple acts of humbleness can immediately open you up to accepting the gifts others may bring to you. These gifts may come in the form of opportunities that can’t be fully implemented until you are ready and willing to accept coaching and training for proper execution. Learn to receive correction and feedback from others in a gracious manner. Look for the truth in what is offered to you and watch your character develop strength and wisdom as you become coachable.

What’s Your Mission?

I attended a workshop for entrepreneurs and would-be business owners that attracted a wide variety of people. The folks in attendance came from all walks of life, different races and ethnic backgrounds, all age ranges and with various levels of education and business experience. The one thing they had in common was a desire to own their own business or take their existing business to the next level. I was there for that reason as well.

Some of the more obvious topics discussed were the tax benefits available to businesses that aren’t available to individuals, the ability to have more control of your time, schedule and earning ability. One of the questions posed to the attendees that especially caught my interest was “What’s Your Mission?” The presenter wanted to know how many of us actually took time to think about our purpose in starting a business and what things we planned to do with the fruits of our labor.

The reason the question piqued my interest was the rationale behind the question. Most of us are familiar with companies saying they want to be the biggest, fastest provider of widgets or services in their market. But then what? What’s your reason for wanting to become the best or most known – what good are you going to do with the money made, the fame and recognition received?

We were instructed to think beyond money alone for when money in and of itself is your goal; your focus is just that – the pursuit of money. All of your time, your actions and your expectations of those working with you are geared to getting more money. Therefore, your biggest disappointments and disagreements will be about money. It becomes too easy to lose sight of enjoying the accomplishments already reached, too easy to forget to share your rewards with others, or too cumbersome to teach and mentor others. You no longer take the time to be thankful for all that has been achieved because you’re too busy worrying about the next dollar to be made.

Again, the workshop attracted a diverse population that day and there’s no telling if that one tidbit affected even one other person as it did me that day. But I ask you, have you thought about what your mission is and how your mission can positively impact others? I know I have.

To Thy Own Self Be True

It came to me today, “To thy own self be true.” I wondered just what this quote means and how did it apply to me and my network of acquaintances. William Shakespeare’s Hamlet has a father giving this admonition to his son, saying that holding to this will prevent him from then being false to any man. Many years later, this remains sound advice for many of us, on so many levels.

Initially, one may think it an unnecessary warning to heed, but there are areas of our lives where we need to take time to be honest about where we currently are, where we want to be and the “why” that lies beneath it all. Why is it important for us to get that corner office and the corresponding title, a home on the water or golf course, a luxury car or two, to become CEO of our own businesses, send our children to prestigious private schools, experience regular international vacations? In and of itself, there is nothing inherently wrong with any of the above achievements…we need to focus on the “why”.

Examine yourself to understand your intent and why having these things are important to you. In doing this self examination, heed Polonius’ advice to Laertes and be true in your introspection. This is where dishonesty only causes you to cheat yourself and gain nothing. Are you striving for the executive title or latest high-priced vehicle simply to show others that you have arrived? Going from Shakespeare to another well known quote, are you motivated by trying to “keep up with the Joneses?” Now, I know many won’t even acknowledge knowing the Jones family, yet alone being concerned about their thoughts, so again I say, “To thy own self be true.”

To help you better identify your true intentions first ask yourself what are you willing to do to get what you want? Are you willing to sacrifice quality time with your family, intentionally deceive others to get ahead, or compromise your character or values? The second question to ask is whether the consequences of such actions are worth the possible rewards? If the phrase “the ends justify the means” enter your thoughts, take another minute to revisit the question. If your answers are the same, then I submit you are being true to yourself – work with what you have.

Sometimes, we map out a plan for ourselves with only the starting point and destination in mind, with no thought about the experience of the journey along the way. Know that we will undoubtedly face hurdles and roadblocks on our journey. These obstacles can lengthen our journey, cause unforeseen detours that may disappoint and discourage us. How we deal with the people and events that detour us will ultimately determine the true elements of our selves. Design what you want for yourself after deciding why you want it. Have goals and work to achieve them, just remember in doing so, to thy own self be true.

How to Increase Your Communication Effectiveness

Effective communication is the key to building any good relationship, whether professional or personal. Fortunately, being an effective communicator is a skill that can be developed if you haven’t been born with it as a natural talent. Here are some quick tips on how to increase your overall communication skills in your professional relationships.

1. Communication should be viewed as a two-way effort. It’s not just about putting forth your thoughts and ideas, it’s also about receiving information and ideas. First and foremost, become a good listener. We were made with two ears and only one mouth, implying that we need to listen twice as much as talk. By taking the time to listen and comprehend what others are saying, you can then respond in a more intelligent and appropriate manner.

2. Consider body language and other non-verbal clues. Be aware of not only your body language, but that of the other person(s) you’re engaging in conversation. Again, this is reflected in your behavior when listening, as well as speaking. If you’re in listening mode, be open and receptive to the conversation, giving your undivided attention. Sitting with arms crossed in front of you or checking emails while having a face-to-face conversation says that you have other things that you’d rather be doing or that you consider more important than your current conversation. Focus on what is being said and then paraphrase the conversation to confirm that you’ve comprehended everything correctly. On the other hand, if your talking points put your audience to sleep, perhaps you need to work on being more concise.

3. Consider the timing and setting of the conversation. Too often these elements are ignored when planning a meeting, presentation or one-on-one conversation. Are you at your best first thing in the morning, if so, perhaps that’s the best time to conduct the talk. You should also keep in mind your audience. If you have more energy at 8am, but the people you are engaging in conversation seem to operate at peak performance after 3 cups of coffee, perhaps the conversation should be scheduled at 10am. The room or facility’s environment also has a great impact on how well your message is received. Consider the lighting, room temperature, and even travel distance when selecting a forum. You want the focus to be on the information being shared, not how warm or cool the room is or how inconvenient the location of the meeting.

These three tips can assist you in more effectively communicating, whether it’s a conversation with one other person, or a room full of colleagues. It’s been said that how you are perceived as a communicator is only dependent on 50% of what you say – the actual facts and figures. The other 50% is based on how you say it, the feelings behind what is said and how the recipient feels when hearing the message. If the conversation takes place over the telephone, the facts represent only 17%, while 83% of the message is dependent upon how it is communicated. So always say it with a smile – in your words and actions. 

Invest in Yourself

I’m sure you’ve heard it before, “You have to believe in you, because if you don’t who else will?” It’s a very true statement. Not only must you believe in your dreams and aspirations, you have to be willing to see them through, and that means work. Because, as another well known saying goes, “nothing worthwhile comes easy.”

It may look to you that others who have achieved desired levels of success have been extremely fortunate or lucky. But even the lucky ducks know how to capitalize on their good fortune. Good luck will only carry you for so long, then it takes work to continue to see you through. Yep, back to the notion of putting in work – again. Even if you have worked hard and reaped it’s initial rewards, you’ll need to continue those efforts to continue to see the benefits.

Don’t view these efforts as mere work tasks, consider it an investment, in yourself! To take your idea or business to the next level (whatever that may mean for you) it takes investment. Before you start running out to get others to invest in your business, take stock of what you have invested yourself. Did you take time to research and investigate your target market, identify your competitors, and determine your marketing strategy and revenue model? Have you documented this in a business plan, if not for outside investors, first and foremost for yourself? Sadly, too many entrepreneurs get emotional about their business idea and rush to find capital to bring their idea to market. Although its great to be passionate about your business, remember it is a business and that’s how the majority of potential investors (and customers) will view it. They’ll want to know how they can benefit from investing their time and/or hard eared money in you and your great idea.

I’ve seen many entrepreneurs introduce their product as the next great thing because “there is no competition”. I have never seen that statement to be true, at least not from an investor’s standpoint.  Although there may not currently be direct or exact  product or service competition, there is almost always at least competition from a substitute product or service. For example, although there may not be another smoke-less cigarette, consumers have alternative products they can use to satisfy their nicotine or tobacco cravings. You would need to consider those products in your competitive review for a complete business analysis. Savvy investors know this and may immediately dismiss you and your idea when they are presented with the “Look, no competition!” claim. They simply view it as you didn’t take the time to complete your due diligence – you didn’t properly invest in yourself.

Another area that business owners fall short is regarding personal injection in their business. Entrepreneurs looking for funding are unpleasantly surprised when they are asked “How much have you personally invested in this project?” Yes, you should be prepared to show how you are willing to invest 10-30% of any amount you are requesting from a lender or other funder. I can’t tell you how many times business owners frown upon making 1 or 2 payments upfront or walk away from funding because they don’t wish to list their homes as collateral. Contrary to popular belief, this just doesn’t apply to new business owners. I had a customer who had been operating his business for over 10 years and now needed funding to purchase updated equipment to keep the business running. Unfortunately for him, his credit was not strong and he wouldn’t qualify for traditional funding. He did however own property, his personal home and some existing equipment that would allow me to qualify him for the funds he requested. He declined to list his home as collateral and was not able to secure financing. When I inquired why he choose not to list the home, he stated because he didn’t want to chance losing his home if he defaulted on the loan. Hmmmm. He was honest. But I ask you to look at this from an investor’s point of view, this is what they see – business owner without strong belief that he can make this business work; business owner willing to risk my money, but not his own. Too risky. I couldn’t continue to work with that business owner - how could I convince a lender to invest in this business when the owner wasn’t willing to invest himself?

Take the time and effort necessary to invest in yourself, whether its thoroughly investigating your market or how to set yourself apart from the competition. Come to the investor’s table prepared to show that you believe in yourself by putting your money where you are asking other’s to put theirs. Then the passion and excitement about your idea just may be contagious enough to get you the support you need.

If you need additional information on various forms of financing, please contact me at The Grey Financial Group (www.GreyFinancialGroup.com), 866-977-GREY or marian@greyfinancialgroup.com

SBA Loans – What’s the deal?

With all the talk about the stimulus package help for the small business owner, you would think everyone could now easily qualify for an SBA (Small Business Administration) loan, right? Well, not exactly. While it is true that many of the SBA loan fees have been reduced (or temporarily eliminated) and the guarantee rate has been increased to 90%, reducing required personal injection amounts to 10%, SBA loans may still not be the silver lining every entrepreneur hopes for.  But for some, it can be just what the doctor ordered, depending on your long-term business needs.

SBA loans are provided by your local or national bank, backed by a government guarantee for the lender, not the borrower. They were intended to help small business owners start or expand their businesses. This is important as small businesses generate most job growth in our economy, with some experts stating that 2/3 of all new jobs will come from the small business sector. The terms and rates of an SBA loan are designed to be more favorable to the small business owner than a typical conventional loan although the application process for both are very similar. SBA loans tend to have lower interest rates and longer terms to allow for smaller monthly payments than a conventional loan.

Today’s SBA lenders tend to concentrate on owner-occupied commercial real estate transactions. If you are looking to purchase commercial real estate for your start-up business or location expansion, an SBA loan may be the perfect route for your financing. These transactions can include existing buildings, raw land or even building development. Generally, you can even purchase a building that has space that you intend to lease out to other businesses, as long as your business occupies at least 51% of the overall space.

Work with a preferred lender or broker as they are most familiar with the application process and can answer your questions in a timely and accurate manner. The Grey Financial Group (www.GreyFinancialGroup.com)  is a broker that works with SBA preferred lenders, servicing all 50 states. A SBA loan may be a Strong Business Alternative for your financing needs.

Managing Your Business Credit

As small business owners, many entrepreneurs may find it difficult to establish business credit and often have to rely on their personal credit history to get their business up and running.  As soon as you decide to go forward with your business, there are a few steps you can take to start developing your business credit profile, which can help you negotiate better rates when financing with your vendors and suppliers.

1. First, if you have been operating for awhile, determine if you have a business credit profile. Check with the D & B (Dun & Bradstreet) website (www.dnb.com) to see if they have an online file for your business. D & B is the leader in business credit reporting.  If you do have a file available, review all the information to be certain it is accurate, just as you would your personal credit report. If they don’t have a file for your business,  request a DUNS number and start building your business profile.      

2. Add to your business credit profile by establishing your business checking account at a financial institution that understands the needs of small business owners. Compare rates and fees for maintaining accounts with the services that best suit your needs. Fees for simple actions such as the number of checks written or amount of cash deposited per month can vary from bank to bank and ultimately impact your bottom line. Look into whether you qualify for membership with a local credit union, they often have lower rates on many widely available services. Establish your utility services in your business name and pay for those services with your business checking account.

3. Be sure to pay your bills, especially your rent/mortgage on time. Your credit rating is determined by many factors, but paying bills on time is one of the top factors. Also, don’t over extend yourself with credit and keep your debt to cash ratio in mind. Also, get to know the credit history of your customers so you won’t jeopardize paying your bills on time because of slow paying customers.

Starting with these few simple steps can help you better manage your credit, which may affect your interest rates on everything from business lines of credit, equipment leasing, insurance premiums and even merchant cash advances. Invest some time in understanding what your credit is saying about your ability to do business, today and for many years to come.

The Know It All

How many times have you been in a conversation with someone and you realize you’re no longer listening to what the other person is saying? The drift off can happen for several reasons; perhaps your mind wandered back to an event that happened earlier in the day, maybe you just remembered that order you forgot to place, or maybe you’ve just tuned out because you believe you already know everything the other person is about to say and you’re not interested in hearing it again.

Yes, YOU are “The Know It All”. Naming yourself as the offender puts it all in a totally new perspective, doesn’t it? No, it’s not that you really think that  you have universal knowledge and wisdom, (you don’t believe that, do you?) It’s just that you’re a busy person with limited time and you don’t want to end up wasting anyone’s time, especially since you are certain that you don’t need or couldn’t benefit from whatever it is that they are bringing to your attention. I feel this way at times, evenmore so when I think someone is trying to sell me something, trying to separate me from my precious funds.

Last week, I started to think, I wonder just how much we miss out on on life in general, because we think we already know it, have heard it all before and really can’t use it, not interested in trying something new, or just don’t have the time to spare to listen to something that I’m not going want, need, use or can afford. Wow!

I thought about my business and the various opportunities I receive to review new marketing or software tools designed to help me operate more efficiently. Not that I have to buy or try every new gadget or widget that is presented to me, but I owe it to myself and my business to at least give an earnest 20 minute listen. The same principle applies in our personal lives as well. How many times have we shut the door on opportunities to better ourselves, our relationships, our finances, our spiritual standing because we were too busy to stop and listen or because we thought we’ve heard it all before.

Too often we have the mindset that if it was really that great, I would already have known about it. Well, how do we expect to learn new things if we don’t open ourselves to the opportunities when they are presented to us? We may even dismiss the message simply because of the messenger. In addition to pre-judging the opportunity as lame, we also dismiss it’s value because of our preconceived notions of the one sent to deliver the message. Don’t be so quick to judge. I always say that an educated customer is the best kind because they can make informed decisions. If you determine you aren’t interested in what’s being presented, so be it; but now you can base your decision on facts and not just speculation.

The caveat is that you must be honest with yourself and admit, that perhaps, just maybe, you really don’t know everything. Besides, who wants to be known as The Know It All anyway. 

5 Quick Tips to Staying Productive

Are you constantly creating a To-Do list to keep yourself organized, but never get to check anything off your list? Do you frantically wish for more hours in the day? At the end of the day, do you feel completely wiped out but can’t think of any of your major accomplishments for the day? If so, you may need to rethink your approach to your day. A change is gonna have to come.

Here are some quick tips to working more effectively and remaining productive throughout your day.  

1. First, realize that you can’t EFFECTIVELY do everything that’s on your list. You have to decide what tasks add long-term value in helping you achieve your business or personal goals. This may be difficult for you to do initially. Learn the difference between urgent items and important tasks. Urgent items are things that may ‘pop up’ out of the blue. These are normally things that are unforeseen and not planned. Generally, these items can steal away large portions of your time without adding back equitable value. Instead, focus your efforts on the important items – those tasks that once complete will put you another step closer to achieving one of your overall goals. Yes, sometimes emergencies arise that if ignored can completely derail your business. After playing firefighter, immediately refocus your time and attention to the next important item on your list. Don’t let residue from the fire (new, unimportant tasks) creep into your line of view.

2. Set aside a time for reading and responding to emails. This can be especially hard for those of us who feel we must remain connected at all times, reading emails on our smartphones while sitting in meetings, driving to meetings, or having meetings in the bathroom stalls. The constant ding reminding us that someone else desires our attention through email or text message, prevents us from continuously working one effort through to completion. Schedule time on your calendar to review your messages, voice messages included, that will allow you to work uninterrupted, but also respond in a timely manner to your electronic inquiries.

3. Plan and attend effective meetings. Schedule meetings with enough notice to give attendees time to prepare if you expect input or responses from them. Include an agenda of topics to be discussed and then appropriate, time limits associated with each topic in your meeting invitation. Only invite those who need to be included or who have relevant information to add to the discussion. Start and end the meetings on time. If a topic comes up that wasn’t on the agenda, only discuss the item if time permits and the attendees are in agreement, otherwise schedule another time for full discussion. Do not repeat information previously shared in the meeting for late arrivals.  This may initially come off as cold, especially if the culture previously has been more lax and informal in this area.  Everyone will learn to appreciate that you are respectful of those who were able to arrive on time and prepared.   Remember to summarize the meeting and outline next steps at the conclusion of the meeting and post meeting minutes for review. Only attend meetings where you have an understanding of the intended purpose and outcome.

4. Learn to say ‘No’. Often, we over commit ourselves to others by responding ‘Yes’ to each and every invite or request that comes our way. Perhaps because we want to be viewed as a team player, or we’re looking for the next big opportunity to shine, or simply because we’re afraid we’ll never be asked again. Take the time to evaluate the request. Are you committing to another unimportant task that may require 80% of your effort while only yielding 20% value?If so, just say ‘No’. Don’t even commit to unimportant tasks that aren’t due for another 3 or 4 weeks or more. We are inclined to say ‘Yes’ if the deadline isn’t immediate, thinking we still have time to work on our important items. But the time will come when the deadline approaches and something on your list will have to wait while you attend to this new unimportant item. Learn to just say ‘No’.

5. Take time at the end of each work day to review how you spent your day. Keep an activity log of all the activities that you spent at least 15 minutes of time on, whether or not you completed the task. Remember to even list those notorious time thieves – folks who call or drop by to say ‘Hi’ or have a simple 5 minute question that ends up stealing 20 minutes or more from your day. Think about it, just 2 or 3 of these minor interruptions can have a major impact on our productivity.  Review your log to see how you can improve for the next day. Create your list of important to do’s before you leave for the day so you’ll already have a well thought out plan of attack when you arrive the next day.

By following this simple steps, you’ll enjoy a sense of accomplishment and possibly reduce some of the stress in your day. Enjoy!