Yandy Smith

The dictionary describes an entrepreneur as ‘A person who engages in business enterprise, usually with some personal financial risk.’

Under this definition, anyone who runs and owns his or her own business can be classified as an entrepreneur because they are taking a risk with their finances every day. But what are the qualities of a successful entrepreneur? Simply owning a business and having risks doesn’t mean that you have successfully accomplished your goal. The dictionary only scratches the surface of what it takes to be an entrepreneur in today’s competitive business world.  One must also take into account an individual’s personality, actions and behavioral patterns—which all contribute to a person’s ability to earn the title of a ‘successful entrepreneur.’

Although it may seem easy enough, becoming a successful entrepreneur is not rudimentary. You have to have a product or service that consumers really want, an organized form of sales and service, and quality marketing advertising. For many of us, the journey to earning the title begins with a burst of excitement about turning our passion into a business (followed by flashing lights of the word “success”). The experience of getting a new idea is wonderful, what follows can be the most exciting and emotional journey you will ever experience. But there is a long, hard road you must travel to take your idea from conception to reality.

I’ve been there. I traveled this road many times, I have had my share of light bulb moments, and I have learned some key points along the way that make the difference between a dreamer and a successful entrepreneur. I learned the old-fashioned way—trial and failure. But, for all my failures came a triumph that made every misstep more than worth it. Here are some helpful tips on how to avoid some of those mistakes I made, and that you take with you on your entrepreneurial adventure.

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In it for the long haul (Image: Thinkstock)

Dorian Boyland started Boyland Auto Group in 1987 (No. 4 on the BE Auto Dealers list) with less than $100,000. Over the years, he’s built up an automotive empire that now consists of nine dealerships in five states that collectively generated nearly $400 million in 2011. Based in Orlando, Boyland Auto Group’s brands include Dodge, Ford, Nissan, Mercedes-Benz, Honda and Hyundai

Here, the former first baseman for the Pittsburgh Pirates turned automotive mogul shares some of the lessons he’s learned on the road to becoming a successful entrepreneur:

Understand that projections are only as good as they are realistic. “Don’t forecast or make projections based on guess work or anything that you haven’t seen yet,” recommends Boyland. “All of your projections and forecasts should be based on prior history, of prior performance.”

Maintain a solid debt-to-equity ratio. This is a measure of a company’s financial leverage. Boyland recommends a 1:1 ratio. “If you’ve got a dollar in cash of your own then only go borrow a dollar in cash. Never let your debt, exceed your equity.”

Remember that cash is king. Boyland advises small business owners keep one-and-a half months to two months of expenses available in cash to avoid a cash flow crunch. “Because 50 to 75 percent of your sales might be in receivables that might not be paid for 45 days or so.”

Don’t guarantee salaries. Boyland suggests tying salaries for managers and key personnel who generate sales to performance and productivity. “Their pay should be based on percent of the profit of gross that they generate that they control,” he says. “Everyone that’s in any type of sales environment or position needs to have an incentive for what they want to do other than just coming to work.”

Negotiate with vendors for the best rates. “All small business owners should negotiate with all of their vendors and all payables should be negotiated prices so that they know they’re getting the best deal,” he asserts. “Every vendor has a different price for people that they work with. You got to find out what your price is.”

Don’t just be an owner – take ownership. Don’t let the failure and success of your company be dependent on other people. “Those things, as an owner and operator of a business, should be 100 percent solely dependent on you,” advises Boyland. “You can always change the players but you cannot change your goals and operations, and controls, and the things you want to accomplish.”

Really understand how your business works. “It’s very critical for the owner/operator of a business to be an expert in the knowledge of that business and how to operate that business. You have to be educated on a business and not get into a business as a hobby,” he recommends. “Learn, understand, the business so that the people work for you know that you understand everything that they do. You need to understand what every person within your organization does – not necessarily how they do it, but what it is they do.”

Oversee all expenses. “If you own and operate a business, you need to approve 100 percent of every expense that goes out that door.  You should have the people in your operation know that they cannot, and doesn’t have the ability, to approve and sign any expense,” he says. “At the end of the day it is your responsibility to control the checkbook. Every check that goes out that door, before it’s even cut or written, should be approved and understood what it is by the owner and operator of a business.”

Since risk is a non-negotiable when it comes to entrepreneurship, your task is to identify your baseline—the level of risk that you are comfortable with—then learn how to manage it. Over time, you’ll want to up the ante, take on more risk and move higher up the continuum. You’ve heard the old adage, “the bigger the risk, the greater the reward.”

If you’ve been hesitant about your next risky business move, follow these proven steps to master fear and make risky business more manageable.

Risk Baseline: Can you handle it?

Risk is defined as the potential that your actions—or inaction—could lead to a loss; an undesirable outcome. When you establish a risk baseline,  it should serve as the basis for measurement of all other actions surrounding your business. For example, the lowest possible baseline could be “If I do X, and it leads to a loss, I won’t lose sleep over it – I can handle it.” Here’s how to set a baseline.

• Develop a list of business risks that you’d like to take within the next 30 days.
• Next, assign a measurement of risk to each line item (Low, Moderate or High).
• Then develop what I like to call, an “I Can Handle It” column that denotes a) I can handle it or b) I can’t handle it.

Once you review this basic list, you’ll have a better idea of where your risk threshold lies. Now that you understand your risk tolerance, it’s time to manage it.

Dr. Benjamin E. Mays—a mentor to Dr. Martin Luther King Jr. and past president of Morehouse College—wrote this poetic passage, which reminds us of how quickly time passes, yet how important it is:

“Life is just a minute, only sixty seconds in it; forced upon you, can‘t refuse it. Didn’t seek it, didn’t choose it, but it‘s up to you to use it. You must suffer if you lose it, give an account if you abuse it, just a tiny little minute, but eternity is in it.”

Do you really value your time? Are you aware of where your days are going? How have you spent these first couple weeks of your year? Has it been business as usual or have you raised your awareness, raised the bar and been doing the things that matter most for your life and business now and for the close of the year when you’ll look back to see how much progress you’ve made?

Most people spend too much time in business on insignificant busy work; they don’t invest it in the actions that really make a lasting difference. Spending time insignificantly is like spending money frivolously. It’s spent and gone forever with no hope for a return. But investing time in work that literally shifts your business is all together different. It actually makes your time more valuable by creating momentum. The better you get at managing your time, the more quickly you get results, which is almost like creating more time. Time is not a replenishable resource; we can never get it back, but we can maximize our effectiveness and outcomes by refusing to run around in circles and call it progress.

Those who are investing their time in the right places are seeing results and living with peace and without anxiety. They know that although the time will never return and the clock can never be turned back, they have spent their precious seconds, minutes, hours, days, weeks, months and years doing what matters and creating a legacy, building up and edifying other people. When you create a legacy, there is a return on your time; and when you build and develop other people, you multiply your legacy.

Felicia Joy is a nationally recognized entrepreneur who created $50 million in value for the various organizations and companies she served in corporate America before launching her business enterprise. She is the author of Hybrid Entrepreneurship: How the Middle Class Can Beat the Slow Economy, Earn Extra Income and Reclaim the American Dream and a regular contributor on CNN. Follow her @feliciajoy.

Our mission at ME University is solely to help motivated dreamers—mostly women—build a purposeful and profitable brand platform. In this marketplace, strategic branding is about positioning yourself as an influencer.  So many people right now are hungry for more….more stability, more financial freedom and more fulfillment in being able to truly live out their life calling.

What most fail to realize is that branding is the most important skill needed in the marketplace today.  In a 2.0 world, it is critical that professionals and experts start branding in a way that attracts the opportunities, clients, partnerships, and income they desire.  Most people unwittingly take the traditional marketing “announcement” approach, which is so wrong and outdated now!  There is a much better way.

ME University specifically equips women ready to launch their dreams, build companies successfully, generate media publicity, land corporate contracts and sponsorships, become authors, speakers, and bonafide experts in their space.  We do this while also incorporating mind renewal and spiritual balance.  There is not another forum quite like it!

Our partnership with Black Enterprise has been central to our ability to connect with our ideal target audience. And we are honored that some of the largest corporations on the planet have joined our movement—companies like HP, Office Depot, Home Depot, Ernst & Young and Delta Air Lines.

Ultimately, ME University is a place where lives transform and dreams shift into a profitable reality. For more information about our signature branding bootcamp and our transformational and profitable branding programs, folks can visit us at http://meuniversitylive.com.

As I flipped through the pages and saw my own notes scribbled in the margins, I thought of how seldom business owners take this strategic approach. One of the things I’ve noticed when working with solopreneurs, small business clients and even non-profit organizations is the overwhelmingly ad hoc approach to creating content for the  web. I get it: small business owners are short on time and short on staff. We wear so many hats that it’s easy to forget the importance of planning. But planning is the best way that you stay on message and continually reinforce your brand.

Here are a few simple ways to approach your branding and social media in 2012.

Think Thematically. What’s your brand theme for 2012? My theme is leverage-I’m leveraging all the work I’ve done up to this point to get to the next level. Everything I do will in some way drive this point home. If you really want to go crazy and plan for great content, give each month a theme.

Think Daily. What brand-enforcing content can you create every day? You may love Twitter like I do, so updating your status daily (or even hourly) is no problem for you. But what if your audience is not on Twitter? You can always apply the same approach to LinkedIn or Facebook.  Love taking photos from your life or to show off your business? Share a photo each day on Instagram. The point is to do something you already enjoy. Make it fun and don’t overwhelm yourself.

Think Weekly. Every week is a new opportunity for you to supply your audience and potential customers with relevant information that, when done right, will lead them back to you. If you aren’t blogging, 2012 is definitely the year you should start!  But what should you write/blog about? I personally love meaty, how-to information that helps me solve problems. I create that kind of content and I look for that kind of content from others. What do you love to find on the web? Inspirational content? Funny content? Chances are, you will enjoy creating what you already love to consume online.

Think Monthly. If you’re in business, you probably publish a monthly newsletter. But are you recycling content from your blog posts or Twitter updates? Does your business host customer appreciation events? Maybe you should. Present much? Get some extra mileage out of those Powerpoint presentation slides, and share them to Slideshare and/or Scribd, creating a monthly presentation share.

Think Quarterly. If your audience can only get it 4 times each year, chances are, they’ll pay attention! What’s going on each quarter in your industry? You could publish a report on quarterly trends or a quarterly ebook with your latest case studies.  I love a good quarterly networking event. Last year, I started the networking organization ColorComm: Women of Color in Communications with my friend Lauren Wesley Wilson. We started in May and hosted an invitation-only networking luncheon each quarter following that one in Washington, DC. You could create a similar event to connect industry leaders in your town.

Think Semi-Annually and Annually. What special event can you create once or twice a year?  Does your organization coordinate a conference or annual meeting? Do you have an annual sale? Capture the content and create lots of info nuggets from it-tweets, blog posts, videos, etc.

As my New Year’s gift to you, I have created a free BrandCal Creation Tool for 2012 that will help you outline content direction. Get your free copy on my web site, millerlittlejohnmedia.com.

Happy New Year and Happy brand planning to you!

Amanda Miller Littlejohn blogs at Mopwater PR + Media Notes. She is the founder of Mopwater Social PR. You can follow her on Twitter at @amandamogul.

Baptiste is not alone. According to a new report by Forrester Research and Shop.org, e-commerce sites continue to snag customers from brick-and-mortar stores, with online retailers having an average growth rate of 28% during 2010. Entrepreneurs are also shunning permanent storefronts for temporary establishments such as kiosks, pushcarts, and other short-term in-line venues. In fact, the temporary retail market is responsible for $8 billion in sales in 2010 and rose 14% in the first two quarters of 2011 over the year before, according to Patricia Norins, publisher of Specialty Retail Report, which looks at temporary retailers and provides resources for finding supplies, suppliers, and locations.

The U.S. retail vacancy rate is at 7%, according to CoStar Group Inc., offering entrepreneurs the opportunity  to take advantage of a weak real estate market and the short-term rental trend.  The national average annual cost of renting a 6,000-square-foot retail space in a strip center is $16.27 per square foot or $97,620 per year, compared to paying around $10 to $250 a day for booth rental at a flea market or a little more than $1,000 to house a pop-up shop for four weeks.

Success stories like eBay and Amazon prove business owners can do without a traditional store if they have a strong Web presence. Likewise, portable storefronts such as food trucks and flea markets are a great form of marketing since they go where the customers are, says Norins.

Here are five ways retailers can reach customers without making a long-term rental commitment and how some savvy business owners have made alternative storefronts pay off.

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To balance between the here and now and stay ahead in business you have to be focused on today and the future at the same time. This constant ebb and flow makes it easy to get lost in the minutiae of your business.  The New Year—and the first quarter of business—is a good time to make strategic changes that will keep your business healthy.  (The very first step in this process is taking stock of yourself: Check out the five questions you need to ask yourself in order to lead a successful business.)

To cut to the chase and get rid of anything that is preventing bigger revenues and profits, ask these four questions about your business:

1. Is my business profitable? Having an amazing product or great service is wonderful, but the business infrastructure that supports and propels the sale of that product and service is most crucial.  As a matter of fact, you could have an average product or service with a solid business infrastructure and still be a business success.  Entrepreneurs tend to focus more on the product offerings and not on the business infrastructure that causes the business to earn money.  This is a mistake.  The measure of whether the business is sustainable is whether you are profitable (or trending toward profitability if you’re start-up).  The bottom line is: Does your business have money left over after all expenses and commitments are taken care of? If it does, you are profitable.  If it does not, you are not profitable.  Don’t let your business go unchecked heading into the New Year.
2. What are my numbers? If you are not profitable, you need to immediately figure out why.  Sometimes loans and investments provide a false sense of financial stability in a business; but the real question is: What is the business earning?  On a weekly or monthly basis you need to know at least three numbers: Your gross profit (revenue minus cost of goods or services), operating profit (revenue minus all the expenses to run the business except interest, taxes and depreciation) and net profit (revenue minus every expense including interest, taxes and depreciation).  Reviewing these numbers every month will tell you the health of your business and whether your business success is trending up or down.  You should also check on the typical profit margins for your industry.  Are you performing in line with other companies in your field?  You should know.
]]> http://www.blackenterprise.com/2011/12/30/four-questions-help-build-business-revenue-in-2012-2/feed/ 1 http://www.blackenterprise.com/2011/12/28/5-questions-to-ask-as-you-grow-your-business-in-2012/ http://www.blackenterprise.com/2011/12/28/5-questions-to-ask-as-you-grow-your-business-in-2012/#comments Wed, 28 Dec 2011 13:00:33 +0000 Felicia Joy http://www.blackenterprise.com/?p=176517 It’s almost New Year’s. I love this time of year.  It represents a fresh start.  It gives people and businesses a symbolic moment in time to assess what worked well last year, what didn’t and wipe the slate clean and start all over.

It is easy and requires no effort to think about what we’d like to do differently in business.  The tough part is making and sustaining changes—and even tougher than that is realizing you can’t move your business to the next level or fix a struggling business by simply focusing on the business.  You also have to focus on fixing yourself.

Entrepreneurship is literally a self-improvement obstacle course.  In launching and growing a business, all your strengths will be tapped and all your weaknesses will be revealed.  The business gets better when you get better.  If not, the business fails.  So any business planning you have done or are doing for the New Year should include taking stock and improving you.

Here are five questions you should ask yourself to make sure you grow as a person in the New Year and therefore grow your business too:

1. Am I well? Anxiety, stress and physical disease zap your energy.  One of the easy traps to fall into as an entrepreneur is saying and believing that you’ll pay more attention to your health once you make your business successful.  That’s a fallacy.  Burnout is real.  Vitamin deficiency is real.  Depression is real.  Diabetes, hypertension, emotional bondage and all the other preventable health ailments that come from ignoring your body, eating in response to problems and avoiding issues instead of facing and resolving them are real.  That also includes sitting at the computer or working in the business from the moment you get up until you pass out at night with no exercise, quiet time or focused loving interaction with your significant other or family.  If you don’t have the stamina to run the business without running yourself down then you must make a conscious choice now to change.  You don’t have to be a body builder or love guru but you do need to be well.  Try a retreat or another means of pulling back to check in with yourself and make sure you are.
2. Do I have strong relationships? Every success in this world comes out of some kind of relationship.  What’s the quality of your relationships? Think about how connected you feel.  Do you feel like you have people who genuinely support and love you—do you support and love them?  Check in with your friends, family, employees and business partners to find out how they really feel.  These are people who know all your “stuff” and love you anyway.  These relationships are a safe haven through tough times and an inner circle to celebrate with during great times.  Make sure you make a concerted effort throughout the year to give focused time to your relationships.
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