Ever send a note to the President?

Every once in a while I get a wild hair and do something that is a little out-of-the-box.  We have all been inundated with political rhetoric telling us that their focus is all about jobs.  I have to admit that while I'm seeing some programs out there at different levels and within specific industries, there doesn't appear to be much focus on grassroots efforts as well as getting small business lending to actually occur (all top down efforts instead of bottom up program support).  On the street, there still seems to be the general feeling that jobs are not being created, corporations are hoarding cash and governments that are willing to attempt difficult cuts are being thwarted by public employees.  So what did I do?  I sent a note through the White House's website.  It's not much, but I at least jumped in to offer my two cents worth.

"I must say that we seem to hear more about loftier goals for job creation that essentially are more oriented to big business.  Yes, much innovation and research funding starts there, but it seems that basic business start-up is not a real focus.  With the current budget's impact on the SBA (and specifically the SBDC's), I have a concern that true innovation at the grassroots level will not get the kind of support that it deserves in these times of high unemployment and high vacancy rates in commercial real estate.  Why not have a program that supports business incubators across the country so that they can extend valuable services based on what the local communities are needing?"

So how did I to this?  Go to http://www.whitehouse.gov and click on Contact Us in the upper right hand corner of the home page.  From there it's pretty easy to send a comment.  Make sure that you give it a subject that makes sure that it goes to the appropriate advisory group.  I must say that I'm a firm believer that you have no right to complain if you don't participate in the conversation.  So I would encourage all to participate especially when you have a passion.  Feed the bear, stand up and be counted!!!

Taking chances with building networks and relationships

It never ceases to amaze me how small the world is when you are out in it.  How many times have you been out socially and start talking to someone then realize that you have something in common?  Maybe it's a connection from a job, a favorite event, from community happenings or even high school or college.  I seem to run into people that see themselves as either good or bad at networking.  And most folks seem to think that it's because they are either introverted or extroverted.  I would suggest it has more to do with fear than a personality characteristic.

Last night I went to a casual happy hour at a new friend's house (a friend that I actually made on Twitter because we had similar career experiences).  This was a lesson in NOT turning down an invitation.  This was a small get-together (all of 7 of us) and it turned out that I had occasion to make a real life contact with one of the seven that I had been trying to reach through email.  I'm not sure that this was done on purpose by our host (if so, thanks J.), yet it was a great opportunity to ask about getting together later to discuss local business opportunities in a more appropriate setting.

During a training class a few months ago, I was nonchalantly asking this trainer who was oddly enough teaching about networking about his "escape" from the corporate world.  Before you knew it, we were talking about how we were on campus at San Diego State University, in the SAME major, at the same time during our undergraduate days.  This has led to a sense that we are from the same "community", talk some of the same language and instantly started building trust that I am sure will last a long time.

So what's the point of all this?  The simple lesson is to overcome your fears.  Do not refuse an invitation where you will have the chance to meet new people.  You never know where that next great connection will occur.  And it takes practice and the right intention to create a relationship that will be give-and-take.  And, just relax about it!  There is too much pressure in that you "only have one chance to make a good first impression".  I would argue that what's more appropriate is more like, "what have you done for me lately?".  Sports is a great analogy.  How many times have superstars been booed off the field or court for one lousy performance.  And what do they do?  They dust off and get right back into the game.  In the networking game, you can do that too.

Baseball, $$$, social media, the fans and my Giants!

So the rumor is that Albert Pujols, first baseman for the St. Louis Cardinals, wants "nosebleed" money in his next contract - $300 million over 10 years surpassing Alex Rodriguez as the highest paid player in baseball history.  I'm not even going to get into the argument of his worth as a player.  Albert is a very good baseball player.  Other than the NY Yankees, who else can afford him at those sky-high figures?  How high would ticket prices in St. Louis have to go to avoid breaking the bank?  And yet, how many fans would continue to purchase tickets at over-inflated prices to keep one player especially when my SF Giants proved last year that a team can win with World Series without a superstar?  Do fans want to follow every move of one player or a whole team?  What does it mean to be a sports fan in today's social media-focused world?

Last year it seemed that professional athletes were just getting started with social media, even tweeting from the dugout/sidelines/bench to their many fans during the game.  What will this year in baseball bring?  Time in the dugout could be spent updating Facebook status or tweeting instead of studying pitchers.  With the Giants playing around with the idea of having a TV show following the players all year, I must say that it feels like we've gone a bit overboard with wanting to be a part of something that has been relatively private in the past.  And what's to happen if the team falls on their faces, is in the middle of a major losing streak and not wanting the "agony of defeat" blasted across the airwaves?  Will it come to fans commenting on coach's decisions while the game is in progress and being reviewable by the coaches?  Will they have a conference about replacing a pitcher based on the fan feedback?  Can you imagine the manager pulling a starting pitcher, telling him "sorry, but the fans voted you off the mound"?

I used to dream as a kid that the ultimate retirement would be to have season tickets to my Giants. Just go to the park, watch batting practice, soak up some sun during a day game without a worry in the world.  Unfortunately, that is a major investment now and out of reach of most fans much less most folks that are retired.  Oh well, it was a great dream - maybe I'll still be able to watch them on TV occasionally.  Or maybe if the league eventually goes "pay-per-view" on all games by the time I retire, I may be back listening to games on the radio, like when I was younger.  Kinda hearkens back to the old days, doesn't it...  Anyway, it's springtime, all of baseball believes that their team has a shot, but for the first time in my life, I get to root for my Giants as World Series Champions.  Life is good!

Valentine's Day - What it means for small business

So how many emails have you gotten from folks like 1-800-Flowers?  How about from your favorite candy store?  Or just from Amazon, EBay or some other large company that has become expert in using the internet to find you and feed you information on special deals for special days/holidays?  The landscape has certainly changed when it comes to the methods of connecting with prospective customers.  Are you buying deals you heard about on Twitter?  Do you follow a favorite local flower shop on Facebook?  So, if you are a business that is trying to squeeze extra revenue, how do you even attempt to navigate the choices?  Which ones tug at your heart and yet don't cost an arm and a leg?

For the local gift shop, flower shop, book store or jewelry maker, there are many choices.  Have you been able to create a relationship with the local print/TV/radio media?  Sure, it takes time to create the right kind of relationship with these folks but they are connected to local buyers more than anyone out there.  And they take time.  And you may have to work with a marketing/PR professional to translate your message.  And although it's considered "old school", it can still be effective.  Now, there's social media...

Many will say that I don't have the time, the staff or the money, yet know that jumping into the pool of social media seems like putting your toes in the Arctic Ocean or base-jumping in Moab.  The trick is to understand what you can promote, then worry about the tool to make it work - that includes understanding the return on your investment (ROI).  And the measuring of ROI depends on your methods and your business tracking. 

So as you buy that card, vase full of flowers, romantic dinner, spa treatment or even a hotel for the night, remember how that business connected with you to convert you to being a customer.  That will give you some ideas that may work for you. 

And Happy Valentine's Day to all the hopeless romantics!!!

Starting a personal services business

In today's economy, many folks that are searching for jobs are also looking to create a business to add a little income to their personal bottom line.  One of the relatively easy businesses to start can be a home-based business where you offer a personal service.  I ran across someone that wants to start a pet-focused business where she initially would be the only employee.  On the surface it's a relatively simple business model, yet in our conversation, it became apparent that there are many of the basic business fundamentals in her new business that are common to many businesses, especially those that involve providing a service.  So here are some key points to remember when starting a personal service business:

1. Know your customers - This is beyond critical when determining what is the potential for your business.  Ask yourself these questions: Are you limited by geography?  What is the potential market size in your area?  Is there competition?  If so, what are you up against?  Market research is the answer - find friends, family, anyone you can trust to find out their thoughts.  Also find someone or an organization that aggregates your potential customers - the value of this type of research will save you much time and effort in the start-up phase.
2. Don't skimp on doing a proper marketing plan - Many people go directly to the pricing part of the marketing plan with an idea of how much money they need to make.  Please don't do this.  The basics of your marketing plan needs to have an understandable list of services, pricing, method of promotion/advertising/PR/social media and how you are going to deliver your service.  Only when you have a marketing plan can you start to pencil in some projected revenues and expenses.
3. Understand your capacity - I used to manage a distributorship for a national line of hair care, skin care and cosmetics that sold to local salons in a defined territory.  In the hair business, you can only sell today's time and reserve the future.  Yesterday's idle time is forever gone.  And the price you charge will determine how busy you are.  New hairdressers cannot charge $100 per haircut.  They need to build a clientele then raise prices only when they are at or near their capacity (i.e. how many hours a day do you want to work). This is common to all personal services businesses.
4. When do you hire employees? - This is a question that all business have to address (especially now with all of the uncertainty in the economy).  Usually it before you need them.  Remember that you have to train someone (taking away from your revenue generation) and you need to ramp up your marketing to match your expanded capacity. 
5. Know going in if your focus to create a job for yourself or for others - Your intent when creating the business is critical.  Business creation is typically all about creating systems and jobs that leverage those investments and talents that help create income for you.  If you are all about creating a job for yourself, know that going in, especially when it comes to taking time off for vacations, being sick or other personal time.  Your clients will grow to rely on YOU and if you are not there to provide your now valuable service to them, it's always possible that they could try to find other solutions if you are not there.
6. Business structure, licensing and liability - Now I'm not an attorney, city/county official or an insurance agent, so go to these folks to find out the appropriate solutions for you, your tax situation and your potential risk exposure.  While there is little upside to taking care of these seemingly painful things, the downside can be vast.  All I should have to say is IRS audit or lawsuit to give you proper motivation to make a couple of phone calls to find out what you need in order to avoid a potential catastrophic consequence.  The small amount of time upfront is essential and worth it.
7. Time management - Once you get started, make a commitment to how much time you will spend in revenue generating activity, marketing and administration.  There are many tools out there to help with this, but it is your commitment that will make any of them work.

These are just a few tips that hopefully will get you started in a successful personal services business.  If there's anything else I can help with, just ask.  I'm on Twitter (@mjsalogga) and LinkedIn ( http://www.linkedin.com/in/michaelsalogga).

Niccolò Machiavelli, Vito Corleone and entrepreneurs

So are you asking what these folks have in common?  If you are an entrepreneur (and a serial one at that) are you considering that you could be ruthless, feared yet beloved by those close to you, just like Niccolò or Vito? 

When I was back in graduate school (o so long ago), I had the benefit of taking a seminar called The Entrepreneur.  We spent an entire semester studying the nature of those unique members of the business community that love to start businesses.  Now before we get started, please understand that all start-ups are not Microsoft, Google or Facebook.  The scary story is that the vast majority of new businesses fail - it's not for the faint of heart.  Risk is high and the commensurate rewards can be very high.  Being your own boss is a fallacy.  Your customers are your boss and your employees are your most valued resource.  So how do the author of "The Prince" and the fictional mob boss fit into this picture?  Well, besides that we were required to read about Machiavelli's view of leadership and Mario Puzo's gangster epic, there was much to learn about the parallels to today's entrepreneurs. 

If "The Prince" had been written today, it most likely would have been reviewed as it was in 16th century Europe, as a manual for grabbing and keeping political power.  I'm sure that some in his day felt vain enough to think that they were the title character, as would some today.  The point is that there is one way to gain and hold on to power - through instilling fear in those you can control.  I sincerely hope that many have learned that while this method of leadership can work in the short term, it can not be a serious long-term leadership strategy.  Yet, many entrepreneurs use their zealous vision and drive to succeed to take them down the Prince's path.  Have you ever met one of these or worked for one?  Unless there is another incredibly strong motivator for those around the founder, business symptoms can include lack of morale, employee turnover, backstabbing and stagnant (or declining) market share.  The trick is to take the zeal for the company/product/service and instill that innovative spirit in staff through more constructive methods where appropriate.

The Godfather has "an offer you can't refuse".  In the beginning, Vito was simply doing a favor that someday will be repaid.  The trick is the cost of the favor is usually much more that you expected.  And quickly, the use of force was required to instill a reputation on the streets.  But how does Vito think like an entrepreneur?  He looked at markets where his twisted sense of morals aligned with where he felt he could make money.  Yes, he paid off police, judges and politicians to have them look the other way and that was only because he could and in the end it was the philosophy that "every man has a price".  The Corleone school of business essentially teaches that you can make up the rules as you go as long as you have the resources to stay in business.  And even the gangsters had limitations.  Look at what happened in Havana when Castro led the revolt in Cuba.  All the investment and influence the casino owners had went with them on the boats and planes as they escaped the island, never to return.  High risk, high return and the loss of everything.

So, the lesson?  As long as you can make the rules in your own little pond of a business, they are yours to make and yet be wary of the greed to takeover other ponds since their rules are usually completely different.  Any exceptions?  Always.  Look at Richard Branson.  He is arguably the most successful entrepreneur in the world in the way he had jumped from business to business and industry to industry while being so successful.  And he is one a million.  If you want to read more, check out his Wikipedia entry. 

So I guess graduate school was good for something...  Thanks to all those that toil in classrooms today, both physical and virtual, to increase the collective knowledge of the rest of us.  This student is eternally grateful.

The Importance of Being Earnest or at least a good networker

My cousin was in the Oscar Wilde play, "The Importance of Being Earnest", many moons ago. It is a classic of tale of living double lives and the ensuing confusion that is created when the main characters try to keep all the balls in the air, maintaining the ruse for as long as possible.  So how does this light comedy apply to networking, dare you ask?

With the advent of social networks or online networks as I will call them here, would you say that there are different protocols for how you behave online versus off-line networking?  Is one more important than the other?  What is all the hullabaloo about online networking anyway?  Why are some people so resistant to the online version of the mixer/party/lunch that has been used since the beginning of time to create relationships?

Aah, there it is.  The magic word that we don't hear very often when we talk about using Facebook, Twitter or LinkedIn - relationships.  In the past we exclusively used telephone, letters and direct meetings to communicate and develop relationships, both personal and business (and it's still important to meet people face to face today even if it's through using Skype).  And they were mostly private unless you were a member of the mob with the FBI tapping your phones or your little brother found that pile of letters in a sock drawer from a boyfriend or someone was eavesdropping on a private conversation when they weren't supposed to be.  But compared to today with online networking, most conversations happen right out in the middle of the proverbial town square.  We are all now town criers, sharing information about all varieties of happenings.  But are we creating relationships that are of the same quality as before or are we just more egotistical in that we feel that what we have to say is so important that everyone needs to hear it?

The key is in the word relationship.  Just as we all have many roles to play in our over-busy lives, we have many types and levels of relationship.  How many times have you held back an opinion to a friend or opened your heart to your significant other where you would have never done the reverse?  The trick to managing your relationships online follows along how you would handle things off-line.  How you create and nurture your relationships requires many tools.  I would venture to say that it is important to use all the same tools online when connecting with others just as you would use off-line.  Just as we have off-line "friends" and "connections", understand that it is the content and your intent that make the relationship that you want it to be.

So when you feel that you want to be earnest and not Ernest, make sure that you pay attention to what you are saying and how you go about saying and who you want to say it to.  Your method of delivery, the channel you choose and the words you say will make all the difference in the impact that you make with the people in your life.  And we haven't even begun to talk about the difference in approaching someone in real life versus virtual life.  If you have thoughts about the fears of talking to a relative stranger in person versus on an online network, make a comment!