Enterpreneur Guide

The 7 Critical Mistakes Working Women Make

2008-02-14T00:51:00.000-08:00

Recently Lisa, a coaching client said to me:

"Iris, they lied to me. They said I could have it all. They said I could have my family, work outside the home and be able to take care of it all. They lied."

If you are like most women, you feel the pressure of 'having it all'. As much as the 'working woman' is not a new phenomenon to us, this model has only been around for a couple of generations. 'Women in the work force' is a fairly current shift in society that became popular during the Second World War when there was a shortage of men. Women whose only option had been to take care of the family were elated at finally having the ability and opportunity to work outside the home and earn money. The problem that followed this shift was that they did not have a wife who could take over their duties at home. Working mothers now faced the expectation of handling both the demands of work and the demands of maintaining their home and nurturing their family. What was once handled by two people was now being handled by one.

Whether you are working in your home office or off site, working for someone else or for yourself, you are bombarded daily with messages of how you should cope. If you look at the messages on the radio, television or the written medium, you are continually fed ideas that tell you:

§ To be happy with having the 'opportunity' to work
§ What you should enjoy
§ What you should look like
§ What you should own

Never have we as women been so inundated with messages that we should be able to deal with life's demands like June Cleaver and look like America's next top model. But television's role models are often unrealistic and lead us to believe that we can have it all and if we don't have it all then there is something wrong with us. I want to share with you the 7 critical mistakes working women make in their quest for having it all, thereby throwing their lives out of balance.

1. Refusing to ask for and receive help!

The first and probably the most significant element to having a life in balance is being able to ask for and receive help. Most women feel they have to do it alone. My clients often tell me that asking for help makes them feel vulnerable and weak - as though something is wrong with them for needing or wanting help. My answer to that is that the ability to ask for help is actually a sign of strength and courage. It takes a strong woman to ask for what she wants. I want you to look at some of the following areas of your life and see how much you take on by yourself:

a) Family functions - do you do it all? Make all the food? Plan the whole thing?
b) Home maintenance - do you do all the cooking? Grocery shopping? Cleaning? Driving the kids to their activities? Paying the bills? Organizing the carpet cleaner or the furnace maintenance company? Social engagements?
c) Care of parents - do you do it all? Do you have siblings who expect you to handle it? Do you usually dismiss calling them to ask for help? Do you do more than you have to for your parents? Do you feel guilty if you don't do everything for them?
d) Business Commitments - do you ask for what you need or do you pretend you know it all and are fine handling it?

2. Not being able to say 'NO!'

In my coaching practice, women report that one of the most difficult skills is being able to say 'no'. It seems that saying 'no' is like speaking a foreign language. Most often when I talk with my clients about saying 'no', they say they are riddled with guilt if they don't say 'yes'. I have to admit that although saying 'no' is powerful, it does come with consequences. You get to decide whether you are willing to deal with the consequences. Most often, women fear that they won't be liked if they say 'no'. They fear that saying 'no' will also mean they are weak, so they end up taking it all on, feeling overwhelmed and resentful and wondering what is wrong with them that they can't seem to manage. Just like the adage 'pick your battles', you need to 'pick your priorities'. You are the only one who gets to consciously choose where you are going to invest your energy and where you won't. There will be some areas where you are not willing to say 'no' yet, and that is ok. Pick an area that is easier for you to say 'no' to, such as:

a. Parent duty at your child's school
b. Planning someone's retirement party at work
c. Being on a committee or a board
d. Planning the street garage sale
e. Planning the family Thanksgiving dinner
f. Organizing your friend's 50th birthday party

If we look at it honestly, we all want to be able to do something special and contribute to the people around us. It makes us feel good and valuable, but when you say 'yes' all the time, you end up feeling drained and resentful. I want you to know that by saying 'no', you get to save your energy, and ultimately your love, for the people and activities that are really important to you. Instead of being someone who is exhausted and resentful, you will be able to do for and give to these people in your life from a place of love and compassion because you have set some healthy limits in your life.

3. Not valuing yourself enough to nurture you!

The third critical mistake working mothers make is that they treat themselves as though they are second class citizens. Their place in the grand scheme of things is at the bottom of the ladder. If you have any energy left at the end of a day where you have done everything for everyone, then you will do something for yourself. Most of the time you are running yourself so ragged that the only energy you have left is enough to crawl into bed. When you continually do for others without doing for yourself you end up feeling drained. When you do something for a loved one when you feel drained, you end up doing it anyway but feel resentful.

I borrowed this analogy from someone but can't remember from who, so I can't take credit for this. When you have $500 in a bank account and a loved one wants to borrow $100 for something really important you will have no problem lending them the money. If, however, they want to borrow $500 for something really important while you have the same $500 in the account, you might still lend them the money but feel a great deal of stress because it leaves you at $0 balance. Now, consider that a loved one comes to borrow $1000 from you for something very important. If you really love them, you might still lend it to them, but your stress level goes through the roof because you now have minus $500 in your bank account.

I want you to consider yourself an emotional bank account. You need to make regular deposits into your bank account. These deposits can be the usual forms of self-care. They often don't need a long time frame to implement into a schedule that is already overbooked.

They can take the form of:

i. a massage,
ii. a manicure,
iii. getting your hair done,
iv. going for a coffee with a friend,
v. having a warm cup of tea 30 minutes before anyone else gets up in the morning,
vi. going for a walk,
vii. a warm aromatherapy bath,
viii. reading a good book,
ix. feeling the sun shine on your face,
x. smelling the earthy smell after the rain,
xi. listening to the thunder and watching the lightning,
xii. noticing the drops of rain on a plant after a storm,
xiii. smiling at the sunset,
xiv. cuddling into a loved one's arms,
xv. dancing to a favorite song,

or anything else you can think of. You can schedule yourself for an activity that may take an hour or you can create a short ritual that takes less than a minute. The shorter the activity the easier it will be to find time for it and the more often you will be able to do it and deposit into your emotional bank account. When you make a deposit, you will be able to give to loved ones and feel great about it. When you don't do things for yourself, you put yourself into deficit. Then you feel the stress when someone asks you for something and you give it to them anyways but feel guilty for feeling resentful.

"Thinking about it another way, doing something for yourself is doing your family and loved ones a favor." Iris Benrubi

4. Not challenging the images, expectations and role models society gives you!

As I mentioned in the introduction, we are bombarded with messages that tell us how we should live, and what we should do, look like and own in order to be happy. Consumers make a big mistake when they 'buy' the message (pun intended) the media sends our way. We believe that when we lose 10 pounds we'll be happy, when we own a better car or bigger home we'll be happy, when we get the boyfriend, get married or get rid of the spouse then we'll be happy. These messages are found both in the media and fairy tales, and they give us the role models that shape our beliefs and leave us trying to fulfill and emulate these often impossible standards that are set for us. Most of these role models will not give you a sense of fulfillment. They will keep you in an environment of temporarily being pleased and then looking for your next fix that will have you feeling pleased. This keeps you on a continuous quest to finding the ultimate that will have you feeling permanently fulfilled and blissful. I want you to first become aware of the paradigms that are being presented to you since childhood and then I want you to challenge them.

a. Who says you have to be Cinderella waiting for your Prince Charming to save you from your wicked surroundings?
b. Who says you have to wait to be rescued like Little Red Riding Hood?
c. Who says you have to look like the young girls in the music videos?
d. Who says getting botox, liposuction or any kind of plastic surgery will bring you happiness?

One of the recent soap commercials shows how we are duped into believing the standards we see on television without challenging what we see. It starts with a close-up of a fairly good-looking woman sitting in a chair. Then the picture begins to be altered digitally and her neck and forehead are lengthened, her cheekbones are made more defined, her eyelids are lifted, her eyes are widened and enlarged, her cheeks are tapered and her hair is improved. Then she walks away. What we are left with is a digitally enhanced, ultimately impossible standard of what we should look like. We are left trying to achieve this, but we can't.

We have young girls in music videos who provide us with role models for our bodies. We have Xena the Warrior Princess performing impossible feats. We have Wonder Woman, who stops bullets with her metal cuffs. Now I know you and I don't go out there and try to stop bullets with our bare hands; however, notice, notice, and keep noticing the images and the models that are portrayed out in the world and decide if this is what you want in your life. Challenge the messages you get from the media and decide if this will make you truly happy and if this standard is even attainable!

5. Shoulding all over yourself!

These images in the media, as well as our experiences growing up in our families, contribute to and define what we believe we 'should' be doing, saying and looking like. Someone once coined the phrase 'stop shoulding on yourself'. It is these 'shoulds' that create pressure in our lives and have us feeling guilty about what we do and don't do.

I want you to challenge yourself every time you hear yourself saying 'I should _________ (fill in the blank)'. I want you to ask yourself if you are really committed to this 'should' or is this some belief that you have taken on from your family, the media or your circle of friends? You can even reframe the thought from a 'should' to looking at the bigger picture of what you are committed to.

Ø Should you make dinner tonight?
Ø Should you keep your room or your home immaculate or is this something you can delegate or delay for another day when you are not so overwhelmed and exhausted?
Ø Should you exercise or is this something you want to do because of your commitment to health?

When you learn to challenge your 'shoulds', you will have the awareness you need to make a different choice. You can either replace them with another activity, choose to not do them or even replace the word 'should' with 'choose to'. An example of this would be instead of saying "I should make dinner tonight for my family" you can change it to "I choose to make dinner tonight because I am committed to creating a warm nourishing experience for my family". Notice the difference in stress level and burden each of those statements creates. Notice how different you feel when you tell yourself you should do something versus when you choose to do it. When you learn to do this naturally, you will experience great relief in the demands and stress life places on you as well as relief from the guilt that you carry with you.

6. Not making conscious choices!

Ever notice yourself driving from one destination to another without knowing how you got there? Ever get on the bus or subway and get so preoccupied with your thoughts and miss your stop? Sometimes life gets so busy that we don't pay attention. We zone out of the present and get in our head with our thoughts and our to-do lists. Most of the time, when we are in our head, we are focusing on either the past or the future. This is an example of living life unconsciously. We are missing the whole 'present' experience. If you stop and take account of your life, you may notice many areas where you are not consciously making a choice, but rather have gotten into a habit of doing things in a certain way. It can be as simple as which foot you put into your shoe first, who gets served first at the dinner table, or whether you wash your face or brush your teeth first. These are all habits you have gotten into. Most of these habits are harmless and don't impact you or the people around you very much. As you continue looking at habits you have gotten into, you may find some habits you have gotten into that may not be supporting you in the direction you are going.

At a family function, Jenny saw her mom cut both ends of the roast before putting it into the oven. She asked her mom why she did that, and her mom said she didn't know and that she should ask Grandma. She went to ask her grandmother why the roast gets both ends cut off but her grandmother didn't know either. Jenny found her great-grandmother sitting in the living room and asked her why the roast had both ends cut off before cooking, to which she replied, "We used to have very small ovens in my days and in order to fit it in the oven, we had to cut off both ends".

The tradition of cutting off both ends of the roast was passed on from generation to generation without it being questioned. I want you to begin to question things. Is this how it should be? Is this what you are committed to? Do you want this in your life?

Notice them and then you can choose to do something else! What can you do instead?

7. Not having a Life Plan!

Cheshire Cat comes to a fork in the road and Alice in Wonderland asks if she should take the left fork or the right. When Cheshire Cat asks "Where are you going", Alice says "I don't know", to which Cheshire Cat responds "Then I guess it doesn't matter".

Where are you going? What is your destination? If you don't know your destination or don't know what you are committed to in your life, you won't be able to consciously create what you want. I personally am committed to having awesome and loving relationships and having fun every step of the way. I am committed to the quote:

"Life is not about going to the grave with a well-preserved body but rather skidding in broadside, totally used up yelling 'Wow What a Ride!'"'

and I create my life in alignment with what I am committed to. When I engage in an activity, I often check to see if it is in alignment with what I want. If you want to see what you are committed to, look at what you have in your life. You are where you are now as a result of the choices that you have made. If you want something different you have to create it and declare it. So what are you committed to? Drop me an email and let me know what your life vision is!

Successful Entrepreneurialism - Seven Traits You Need To Possess

2008-02-14T00:49:00.000-08:00

Have you ever wondered why some entrepreneurs succeed and why some do not?

Have you ever thought of the things that would make you the best entrepreneur in your chosen field?

For the lucky few owning a business might run in their veins. However, most people, simply have a high desire to start a business of their own, they must spend careful evaluation and extra time on studying the nature and principles of entrepreneurship... This does not mean that an individual who wants to become an entrepreneur should have a thorough background on owning and running a business.

Whether you are conscious about it or not, success and failure always depend on the entrepreneur. Successful entrepreneurs share several of the same traits.

Traits of a successful entrepreneur are:

1 Goal oriented

Whether short term or long term, as a successful entrepreneur, always set your goals.

Successful entrepreneurs know how to revise or rewrite their goals whenever they think that there is something that needs to be changed.

2. Opportunity seeker

As an entrepreneur you need to know how to search for opportunities. It may be an opportunity to earn more or to learn more. You need to know how to find opportunities that may not be visible for most people.

3. Taking advantage of these opportunities

Once you have found opportunities, learn how to take advantage of them. You will need to know how to identify what type of opportunity will give you benefits. Ask yourself these questions:

Will it bring more good than harm?
Is it worth the time and money?
Will it help me reach my goals?

4. Know your strengths and weaknesses

Another good trait of a successful entrepreneur is in knowing what your strengths and weaknesses are. This trait enables you to define your limits and extend them.

An individual who does not know his strengths and weaknesses is like a person facing a mirror without clearly seeing his face. A successful entrepreneur sees his face clearly on the mirror and recognizes his imperfection. He would then polish his imperfections and covert them to something beneficial. A successful entrepreneur knows his strengths and weakness, and recognizes them as parts of who he is.

5. Always wants to be the best

A successful entrepreneur does not settle for the second best. You always finds ways to be the best in your niche. You need to continually expand and fine-tune your skills, products or services in order to stay at the top.

6. Enjoy what you does and know how to enjoy as well

As a successful entrepreneur you should love your work and enjoy what you aredoing. You will not be successful if you are not able to enjoy your business. On the other hand, do not make your business your life. Know how to take a break occasionally to enjoy life itself.

7. Know when to get help

As a successful entrepreneur recognize that cannot do everything alone. You need to understand that you need a helping hand in order to get things right. Know and respect other's views on matters regarding your business. This will help to minimize the risk of committing mistakes.

These traits can be learned over time. If you are looking to become a successful entrepreneur, keep these traits in mind, and work towards the goal of possessing them.

Sell A Company - How Is The Selling Price Determined?

2008-01-21T21:35:00.000-08:00

How much are you expecting when you sell your business? I always ask this question of our clients. The answers are as different as the businesses. "We need $5 million to give us the type of retirement we want. We have invested $2 million in the product. Our investors have put in $3 million so far. It should sell for $5 million. I heard that xyz Company got $30 million for their company." Well, my response to my clients doesn't necessarily endear me to them, but it is the truth. The market doesn't care. The market doesn't care how much it cost you to develop the product or how much your investors have in or how much you need to retire or how much you think it is worth.

The market looks at what the ROI is for its investment in a company. If you are fortunate enough to have a technology that can be leveraged, the market may look at the future returns of that technology in stronger hands.

For most businesses, there are benchmarks that are often used as a starting point. The most common in a merger and acquisition situation is an EBITDA multiple. That is the gold standard for privately held companies, similar to what a PE multiple is as a business valuation metric for publicly traded stocks. One of the measures that has come into vogue on Wall Street is a PEG multiple or Price Earnings Growth. It is essentially a way to attempt to quantify the difference in PE multiples between two firms in the same industry that have a much different future growth scenario.

Buyers of businesses that are privately held attempt to ignore this factor when making their purchase offers.

One small company was in an industry characterized by slow growth of about 4%, had commodity type products and consequently very thin gross margins, and had little pricing power. This company introduced a new product that was unique, had very healthy margins, retained some pricing power, and was experiencing 50% year over year growth.

The industry benchmark valuations were at 4.5 X EBITDA. The three largest players in the industry were all interested in the acquisition and each one put out an initial bid that was, surprise, about 4.5 X EBITDA. Another factor was that our client was in rapid growth mode so a good deal of their costs were front end loaded as they launched a few big box retailers during this period. The effect of this was to depress their EBITDA performance. This made these offers even more inadequate.

The result is that we have a classic valuation gap between business buyer and business seller. This is the biggest reason that many merger and acquisition transactions do not happen. The clients are terribly disappointed and suggest that these buyers "just don't get it." The buyers have experience in making several acquisitions in their space and have their business valuation metrics pretty much in stone and think our sellers are being unreasonable in their expectations. Game over, right?

Not so fast. One of the most important roles of a business broker, merger and acquisition advisor or investment banker is devise a transaction value and structure that works for both parties. We pointed out to the buyers that their traditional way of looking at these transactions is appropriate for their prior acquisitions with standard growth metrics, lack of pricing power, and commodity type products. We suggest to business sellers that as a small company with a few big box retailers comprising 80% of company sales with essentially one main product, that they have a great deal of small company risk. For example, if the retail buyer from xyz Big Box Retailer changes and is replaced by a buyer that has a consolidation of vendors bias, then they could lose 30% of their business with one decision. A bigger company, however, with 30 SKU's would be much harder to replace with a change in buyers.

We have established a platform with both buyer and seller to consider alternatives to their hard and fast valuation positions. Here is an example of a business sale transaction structure that could be a win for both buyer and seller:

1. $1,000,000 Cash at Close which is approximately a 4 X EBITDA multiple for the year 2007.

2. An Earn out (Additional Transaction Value) based on Seller Company's Sales Revenue beginning in year 1 and ending at the end of year 5. The earnout is at risk, but is set to net the shareholders a 6 X EBITDA multiple on 2008 projected sales (sales $6 million and EBITDA margin of 16.67% or EBITDA of $1,000,000).

This is the transaction structure we are recommending to balance a low EBITDA valuation on a company that will grow revenues by 50% next year. If they don't, then the earn out will be less. Most of the transaction value is in future performance based earn out. Our projection is that with Buyer Company cost efficiencies, Buyer Company can improve operating performance by an amount that covers the entire earn out amount and maintains or even improves Seller Company's historical margins.

Most business buyers that approach a company with an unsolicited interest in acquiring them are bottom feeders and will attempt to buy way below the market. They will attempt to draw out the process and pursue several acquisitions simultaneously hoping that one or two sellers just cave and sell out at a discount. They may start out at a decent valuation, but as they go through their due diligence process will find one issue after another that makes them reduce their offer. They often throw out the term "material adverse change" in an attempt to justify their value reducing behaviors. Some business development directors get judged or paid bonuses on how much below the original offer they can ultimately close the deal.

What is the way to combat this bad buyer behavior? The best way is to have options. Those options are multiple interested buyers. We feel very uncomfortable when we end up with only one buyer. We have taken them through the entire marketing phase and end up with only one legitimate interested buyer. You bet that buyer recognizes the issues and the likelihood of limited interest and will attempt all of the maneuvers to drive down the buying price and terms. Our negotiating position on behalf of our seller client is severely weakened and we struggle to preserve value in spite of doing this every day. Think about how effective you will be in this single buyer scenario. We tell our prospective clients that contact us after an unsolicited offer, "When it comes to business valuation, if you have only one buyer, he is right."

Entrepreneurship In The Time Of Recession

2008-01-17T23:21:00.000-08:00

In the movie Hello Dolly, Louis Armstrong says to Dolly Levi, "Mrs. Levi, you've got more businesses than a dog has fleas."

She smiles and replies, "When you're living from hand to mouth, you'd better be ambidextrous."

Okay, most of us are not living hand to mouth...yet. But since the American economic tide has turned many of us are finding that we need more-more time, more opportunities and more money to create the success we want. It's a tough time for small business owners. Our houses are worth less and if we are typical Americans our consumer debt load is more. The cost of living is rising fast and customers are clutching their wallets in fear. What can you do to weather these new economic times?

Before it's too late, start cleaning your financial house. Amazing as it may seem many entrepreneurs don't have a personal budget. If you managed to get started without writing a business plan, and many folks do, then you may have missed out on valuable financial planning and research. Pay down your personal debts. Streamline your inventory and ordering systems if you deal in real products. While the money is still flowing build up your savings.

Ratchet up your customer service. Traditional business wisdom tells us it's easier and more profitable to keep a current customer than it is to go out and find a new one. Don't lose business during this critical time because you neglect your customers. Pay special attention to the niceties of business like thank you notes (or emails), knowing customers by name and fulfilling special orders when you can. If you have employees make sure they are all well trained and polite.

Add a new stream of income-or delay cutting one off. A recession might not be the time for a fledgling business owner to quit the "day job". If you've held on to a regular job during start up, make sure you are really off the ground and operating at a profit (this process normally takes 1-2 years) before you walk away. Entrepreneurs who are already independent should consider adding new revenue streams to the mix. These can include supplementing a store with a website, joining affiliate programs that "pay per click" or writing about and selling your expertise. If you already have a healthy emergency fund of cash, consider meeting with a financial planner to create an investment plan.

Evaluate your marketing. Make sure you are not wasting time and money on advertising strategies that don't pay off. Ask customers where they heard about your business. Monitor the response rate of different ads and dump the losers. If you are paying to participate in a leads group or networking organization review the amount of actual business from these sources. Don't pay to hear the same dozen people introduce themselves week after week.

Consider learning new systems. Do you have a time management system? How about long term goals or success strategies? Now is the time to invest in your personal and professional development. Make every minute count by using the best methods for business and creating more time for your personal life. Start by doing an Internet search, browsing the library or bookstore to see what's new and what appeals to you. Check out your local community college for free or low cost business training. Create a like-minded group of entrepreneurs to coach and encourage each other.

A recession doesn't have to be the end for your small business dreams. However, you will have to be creative, flexible and exercise personal discipline to come out on the other side in sound financial shape. Tough times help you decide what's important enough to spend limited funds on and what's not. A tight budget can be the inspiration for new ideas, products and strategies. By staying focused on your customers and staying open to new approaches you can come out of a recession with a healthier business and a feeling of not just survival but accomplishment.

How To Start Your Own Business While Working For Someone Else

2008-01-17T23:18:00.000-08:00

Many people think the only way they can launch their own business is to immediately ditch their day job and go off on their own. But there is another way to pursue your entrepreneurial dream - and keep bringing in money, too!

If you are considering launching a small business but are not sure how to do so because you do not have a lot of money, going into business while still working for someone else can be a viable choice.

When I launched my company, I did it from the comfortable vantage point of working for someone else. That allowed me the flexibility of having predictable income generation while in start-up phase.

Launching a business while working full-time for someone else requires organization and the ability to focus. That's because you will most likely be doing two full-time jobs - the work at the "day job" and work for your new baby, your company.

When I began preparing for and then running my company, work days often stretched well into the night. I would work a full nine or ten-hour day as a journalist, then go home to work another six or seven hours on my business. Make no mistake, operating a business while working full-time for someone else can be a challenge. But that challenge can be successfully faced.

Here are five tips for operating your own small business while working for someone else:

1. Realize you will sacrifice leisure time. When you are working two full-time jobs, you will not have a lot of time for "extra" activities such as outings with friends or watching television. Realizing upfront the extra commitment of time will help you set realistic expectations for your time. This can also help you communicate with those in your life that you will sometimes be unavailable during this critical time, as you work hard to get your business off the ground.

2. Set a time frame. When you launch your business while working for someone else, set a time frame for when you will leave the "day job" to work full-time for your company. This is important because it will give you a target to shoot for and will help you set benchmarks - amount of money you will save by a certain date, for example. This also will help keep your business a priority, and not relegate it to permanent "side business" status. I left my "day job" two years after forming my company.

3. Create a business plan. Many entrepreneurs launch businesses without investing the time into developing a business plan. They want to "wing it," because they have the plan in their heads. That can add undue stress and contribute to the high failure rate of new businesses. I launched my business without a business plan, so that's why I emphasize the importance of having such a plan. My business became successful even though I started without a plan, but the lack of a business plan cost me in unnecessary expenses and time. The business plan I have now helps me structure my business in such a way that I know if expenditures are in line with my needs or if they are unnecessary. That saves money. And having a business plan also means you spend time on things that support your business, instead of on things that do not.

4. Use "found" time. When you are operating your own business while working for someone else, it's important that you maximize your time. That means using "found" time. Found time is those small increments of time that usually are filled with nothing or unimportant tasks. For instance, instead of using your break at work to smoke outside with your co-workers, you may now use this found time to make phone calls to potential suppliers or distributors, or others you must connect with for your business. Found time can be the time you use to find out about licenses you need for your business, conferences, events, etc.

5. Organize your finances. The biggest reason you have remained with your employer likely is financial. You need the money. So that means evaluating your current expenses and needs, and seeing how you can cut back and what your bottom line amount is to live and support your business. Put everything on the table. See what can be cut to help you reach the financial target you set when you established a time frame for leaving your day job. When I was organizing my finances and preparing to leave my employer to work for my company full-time, I eliminated cable, reduced dining out, and even shopped at thrift stores. Sacrifices you make can help you find the resources to dedicate to your business and nurture it to success. Once things pick up or your cash flow from your business is on the grow, you may resume some of the things you sacrificed earlier - or you may find your life is quite fine without them!

This is also the time to consider future expenses and how you will address them - what will you do about health insurance, for instance? Will you work from home or have an outside office? How will you fund all this?

These five practical - real-life - tips can help you properly prepare for successfully running your own business one day, even if you start it while working for someone else today.

The 11 Characteristic's Of Women Who Run Million Dollar Companies

2008-01-07T20:29:00.000-08:00

Women entrepreneurs who have pledged their commitment to break the million-dollar barrier and build a successful million-dollar enterprise. Currently, less than 3% of the 10.4 million women-owned businesses in the U.S. generate $1 million or more in revenues annually.

• Have a positive, confident outlook- They've started (or will start) their businesses primarily to be able to better balance their lives (29%), to be their own boss (22%), to build a legacy (11%) or to fulfill a dream or passion (5%) - and for those who have already started their businesses, nearly all (98%) say that "regardless of the challenges, owning my own business is deeply satisfying" and fully 89% say "I have complete faith that I will succeed." Further, a 57% majority say that "Reaching $1 million in revenues is just the beginning for them.

• Balance is a Key Driver, But Remains Elusive: Only 19% of entrepreneurial women say they rarely or never feel conflicted between their personal and professional responsibilities.

• Money Ranks high, but is Not #1: For women seeking to grow their firms to the million-dollar level, there's something even more important than money in propelling them forward - self-confidence. When asked to rank five important factors in their order of importance in getting them to the million-dollar mark, self-confidence came out on top, with money coming in second, Marketing was rated number three, followed by mentoring, and support from family and friends.

• Personal Appearance is Important: women entrepreneurs believe that their appearance affects their business success, and they put energy into looking their best.

• Maintaining the success and furthering the growth of their enterprises is a high priority for women entrepreneurs worldwide: The most important issues cited by women business owners around the globe include maintaining business profitability, managing cash flow and bill payment, and finding and keeping quality employees.

• Gaining access to technology, access to capital for business growth, and government corruption are other issues of concern for women entrepreneurs.

Majority are optimistic about the outlook for their businesses over the next two years. Women entrepreneurs, regardless of country of origin, share many of the same business concerns and the The majority of women business owners' surveyed use some form of computer system in their business: approximately three-quarters of Brazilian and Canadian women business owners are using the Internet-a larger share than their counterparts

• They Make Things Happen- Highly successful women business owners will tell you that they see themselves as being in charge of their own destiny. Things do not happen to them-instead they make things happen.

• Driven and Confident: To be a successful entrepreneur, you must be willing to put in long hours and have an intense commitment to the success of your business. A recent study of women-owned businesses found that owners of high-growth companies have a greater intensity of commitment to their company than women-owned businesses with low growth (Gundry & Welsch, 2001).

• Self-confident and take risks: While they are self-confident, these women realize that they need support from others.

• Intelligent and Innovative-But Not "A" Students: There is no doubt that successful women entrepreneurs are intelligent; however, most of them were not straight-A types in high school or college. They may even have displayed behavior problems in school, because these women tend to be the type of individuals who do not like to play by the rules. As students, they may have created ways to get around the rules or any other obstacle that stood in their paths, constantly challenging and even changing the status quo. These same traits, which are often viewed by teachers as undesirable in the classroom, turn out to be highly innovative and effective when displayed by a responsible, creative adult in the competitive world of business.

Big Dreamers: The most successful women entrepreneurs are those who "dream big"-they see themselves succeeding financially, managing large staffs and running businesses that have multiple branches and locations or that are international in scope. These are women with 100 ideas a minute who do not hesitate to implement the best of the ideas they dream up.

An Ideal Age for Business

2008-01-07T20:26:00.000-08:00

What is the ideal age to start in business? In paid employment and especially politics there is definitely ageism at work. Some politicians in the past have had to retire as leader of their parties because they were deemed to be too old to appeal to the voters.

Business has no age barriers

When it comes to starting a business your age and experience will stand you in good stead. Many successful businesses are managed by people close to retirement age. Using their experience gained from their previous employment they are ideally suited to exploit a gap in the niche area they have experience in.

On the other hand young people with drive and determination can take risks that older people can not afford to, knowing that if they fail they can always have another shot! They often have the energy and ability to burn the candles at both ends and can spot new ideas that their senior counterparts might not even be aware of.

Realistic expectations

Older people tend to have realistic goals & better interpersonal skills gained from years of paid employment.

They usually have more access to funds. They often have a good credit history and can also raise monies using their property as collateral; having paid off a substantial part of their mortgages.

There is a higher chance of failure in a new start up by a younger person. They often do not have the ability to persevere when the going gets tough. Their businesses tend to be under funded and often they have set goals that are definitely not achievable.

If they can survive their first failure and still be motivated enough to start again their chances of success shoot up dramatically as then their expectations are more achievable and they have learnt valuable lessons from their first failed venture.

Love, life and family

Many young people are unstable due to their higher sexual urges that often lead them astray. They tend to devote a lot of their time and energy towards finding their ideal partner.

Older people tend to have more established ties within the community and in the business world. Having more contacts to lean on can definitely make the difference between success and failure. Having a supportive family around that can help with some of the tasks will lighten the workload.

Attributes for Success

Being in a stable relationship means that more energy can be devoted to business and less spent looking for the ideal mate. Having sufficient sums of money to fund your venture can play a big part especially in the first year.

Perseverance and commitment are critical especially when the going gets tough. Age is not a barrier in business. In fact experience can play a key part in the success of any new venture.

Poor health can wreak havoc on any business plan so if you are suffering from any ailments think twice. Unlike paid employment, you might not be able to afford to take time off, especially in the first year of a new business.

Home based businesses are becoming more common now. There is less of a stigma attached to working from home. If you have a spare room, don't need much stock and do not mind working alone then this could be the ideal low cost way to get started in your first venture.

12 Reasons to Start Your Own Business

2007-12-27T01:01:00.000-08:00

1. Many people start a business to be free of a boss. To start and run the business the way you want to and make all the decisions as to how the business is run. You no longer have to worry about being laid off or fired.

2. No more boring meetings. I can't count how much time of my life was wasted in a boring irrelevant meeting.

Time ether spent talking about things I didn't care about or didn't concern me. With your own business there is only a meeting if you want it.

3. Taking a vacation because you get the best price then, or other people going with you can only get away from their job on certain weeks.

Not having to only take your vacation when those above you get their pick and you get what's left.

There will be no one above you. The hardest part is taking off if you are doing work you really enjoy as its like your always on vacation.

4. With the added income you can increase your retirement income and gain added tax benefits

5.Work the hours you want not the hours set by someone else.

6. If you need more money for something take on extra work or hire others to increase your income. You can now work as little or as much as you want.

7. It is important to find a business that you like to do. If it's something you really enjoy doing it will no longer be just a job. You get up each day looking forward to the day's events.

8. If you like to work alone pick a business like that, if you like working with other people go that route. Some businesses allow you to combine parts of the business, solo or with a group of people.

9. You have a choice of whether you have a large business and grow to huge size or stay small maybe even a one-person business.

10. When your out with friends or meet new people you will be proud to say you own your own business.

11. Owning a large or small business has many tax advantages then working for someone else.

12. If you pick a business you like doing and one that has a good profit potential you will end up making lots more money for yourself rather than for others.

P is for Planning

2007-12-12T00:09:00.000-08:00

If you are like most businesses you are feeling the end of the year crunch. Maybe December is your busy time or possibly you have the kind of business that is slower in December. Either way it is likely that you are having thoughts like "In January I'll do this or next year I'll do that". I used to cringe at that "P" word. Planning sounded boring and made me want to curl up and take a nap because I tend to be an "S" type personality. "S" is for spontaneous. One of my close friends summed it up when she said, "I never know what I will feel like doing until I get there, so how can I plan?"

However, some things require a longer process to manifest and without strategic planning they will never happen.

What has changed for me is seeing the trans-formative value. I can actually envision what I want now and take solid steps to achieve it. It is exciting and fun to see the process unfold like magic.

I had a client recently tell me that he could come up with some goals but had trouble knowing what steps to take first. Many people get frozen at this point, afraid that the first step they take will be a wrong one and that something bad will happen.

In truth, it matters little what you do first as long as you do something toward your goal. Taking action is always a positive thing.

January is a natural time to begin some new projects or products in your business. The new year can feel like an opportunity for a new start.

Take advantage of this collective energy and go for it. Here are a few guidelines to help your process.

1. Write down something you want to accomplish in 2008.

2. Tell your mentor, mastermind group, or business support person.

3. Imagine you have done it by the end of 2008. How do you feel?

4. Brainstorm all the things you can do toward this goal. Empty your mind of every possibility even if you don't know how.

5. Make a list of people who can offer you support or help.

6. Pick the first three things you will do and write them in your 2008 appointment book.

7. Give yourself a big hug. You have begun the process.

Successful Vision

2007-12-12T00:05:00.000-08:00

Have you ever wondered exactly what it is that successful people have that ordinary people do not? Do they process some magical formula or potion brewed in dark recesses of the mind? Have they learned some arcane information about the nature of business that gives them an inside track to success? Have they acquired a deeper understanding or knowledge of reality then the rest of us? The truth is all of the above. They have the magical power of focus. They have learned the principles of business that produce success.

They have indeed acquired a deeper understanding of how success happens. There is an art to making money. What it is and how it works. Money is attracted to content and away from duplicity. Money is exactly how you think about it. No more, no less. In other words, your ideas, vision and thoughts are the key to success or failure. If you have a flawed vision of yourself, you will also have a flawed vision of the world and how it works, consequently you will self sabotage just when your on the verge of a breakthrough deal or career promotion. Has it happened to you already? Your vision of success shapes what will actually happen, so you must be sure of two things. One-that what you want and are working towards is actually what you truly want, and two- your vision must be clear and focused, not cloudy and ill conceived. Only then will you start getting the success you deserve.

Equally important is that you must have a financial game plan, a business, job or money making system that produces steady, predictive income 24/7. You cannot plan a future unless you know what finances you have to work with. There are many speculative ways to make money, but real estate is probably the most talked about and hyped as the way to get rich. I am not going to tell you different, however we are in the middle of the real estate bubble getting deflated. Many people who bought property in the last five years or so at highly inflated prices are probably pretty disillusioned about now, but in crises there is opportunity.

Homeowners in foreclosure, if they are smart will try what professional real estate investors have been doing for some time now. A short sale. The newest most effective financing technique for buying foreclosures and REO,s for profit even when there is no paper equity left in the property. A short sale is simply negotiating with the foreclosing lender to discount the mortgage. Sometimes as much as 20 cents on the dollar. Don't Think a lender would go that far? You might be surprised. As with any negotiation, there will be a compromise, but if you don't ask you don't get.

There's no guarantee it will work for a novice, so you best strategy is to get yourself educated about short sales and the foreclosure laws of your state.

The real estate melt down presents a ton of opportunities for an astute investor to make a lot of money, and it will never be easier for a beginner to get started. Real estate has made more millionaires then any other single entity, perhaps because its not limited to already wealthy individuals. Anyone can do it. We have been deluged with real estate gurus teaching how to buy real estate with no money down now for over 30 years, almost a whole generation, and this guerrilla knowledge is one reason why banks and other lending institutions loosened their criteria for qualifying mortgages. In an attempt to compete with creative techniques,coupled with greedy brokers and lenders approving loans on overpriced property they knew the borrowers could not actually afford; the result could only be a fantasy of false appreciation and a disaster waiting to happen.

However buying your own home and getting rich through real estate are two very different things. In real estate, there are literally dozens of different game plans. Some more profitable and easier to do then others.

Entrepreneur and Leadership

2007-12-05T00:48:00.000-08:00

Where have all the leaders gone? If Hillary Clinton wants to grasp the PRESIDENCY of this country then she needs to wake up and grab it with both hands and make it hers by right and all that is fair in love and war.

My Lord what has happened to AMERICA and the land of the free and the brave?

The current spate of Republicans are what has happened to this country of the US of A and all the lives of lost soldiers have been spoiled by the greed of this current administration and the intolerable preying of fear that they have been feeding on like buzzards at a road side kill. The Democrats are to blame as well for they have forgotten their place in society and all that is ill gotten will be lost and so it is AMERICA is at a cusp of hope and glory versus loss and decay and all because of a token disregard for integrity.

America was founded on S- P-I-R-I-T and it is the motto of one mid west town, ST.LOUIS which even has a monument to the SPIRIT OF ST. LOUIS.

I am sorry but I am sick and tired of hearing about the great Chinese, the Arab Nations and the power they wield holding the rest of the world in harness and blinkers while they make zillions of buckaroos at the expense of the rest of the world and the rest of the world allows them which is worse.

What has happened to the world of entrepreneurship that made AMERICA what it is before today? Drive through any wee town in this country and you will see testimonies of stalwart decision makers and the successes they weaved but not in a web of deceit but in integrity.

Entrepreneurship has always been the flagstone of successful endevours alongside traditional endevours producing leaders that would compliment communities as a whole, but where have they gone. It is strange to say but most of the quotes of leadership with relevance to a successful life and quotes from the Presidency have been linked with JFK and Bill Clinton and especially President Lincoln.

Sure we all make a few mistakes but in the general theme of life what is the intrinsic value to the community at large where benefits are counted in food on the table and savings in the bank? It is in the feelings of the hearts of the country that has been savagely demolished by greed and worse we are headed for a loss of equity in world markets if the DOLLAR is replaced by another currency which all other currencies will be measured against.

America wake up and realize the dreams of our ancestors, not usurp them and waste them away to a garbage heap. Entrepreneurs look around you and ask yourselves what is it that you are building, what is the legacy that will be gloriously beneficial to mankind in the long term?

Americans and worldwide citizens ask yourself what legacy are you going to leave for future generations. Frankly I cannot abide critics but they have a place in the circle of life like vultures, they weed out the weak from the strong and thusly pay all the world great service of unquestionable values.

John Assaraf had this to say in a recent blog: Go after your dreams with passion and purpose even if you don't know how you'll achieve them. The answers will show up along the way.

I believe that is how the early pioneers plotted their trails across the greatest country on earth.

Do you know why this is called the greatest country on earth? It is because anyone could be, do, become, make, have, live, leave a legacy, dream and fulfill those dreams and most of all live in a world of freedom that could not be achieved anywhere else on earth.

Are AMERICANS going to lose that, this, those entities of AMERICAN values and life? The definition of an entrepreneur is one who is in charge of an enterprise, so all AMERICANS may be entrepreneurs if they do but take charge of the AMERICAN life, and most of all take charge of AMERICA.

Top 7 and a Half Marketing Blunders for Entrepreneurs

2007-12-05T00:30:00.000-08:00

1. Marketing to Everybody: You can't be everything to everybody, as much as you would like to try. You need to choose who you want as clients and tailor your marketing to them. By being very specific, you will be able to focus your efforts and will be far more effective. Define who you really want to work with and stick to it.

2. Varying Your Look: "Who are you?" That's what people will say when they see your promotions taking on different personalities. If one day you're Mr. Rogers and the next day you're Judge Judy, people won't know how to respond to you and what you offer. Decide who you really are and design your campaigns to match.

3. Being a Marketing "One Trick Pony": If you market in only one place, you will be missing the opportunity to reach potential clients who respond to different means of communication. We all learn in different ways. Some like to hear a message, others like to see pictures and others like to read words. Just keep the look and feel the same and always be YOU.

4. Forgetting About Your Old Clients: I call it "Scorched Earth" or "Slash and Burn" marketing. I can't tell you how often I've seen this way of doing business in certain industries. They are your best friend until you spend your money and are signed up and then they are gone. You are off their radar while they are on to bigger and better things. You as a customer end up feeling forgotten and a little used. Your past customers are the best market for new products and services and source of referrals because they already know you and trust you. The art of building and maintaining relationships is a skill worth developing and is the best way to have repeat business and referrals.

5. Confusing Your Audience: Have you seen those absolutely great ads on TV that you love and you haven't a clue as to what they are selling? Somebody spent, who knows how many thousands, getting those produced. They were sold a great ad and aren't getting their money's worth. "A confused mind NEVER buys." Be clear about what you are selling. A simple and direct message is always better.

6. Promising the World: You see it over and over, especially in the Sunday supplements and usually involving some weight loss system or age-defying wonder cream. Certainly don't undersell the effectiveness of your product or service, but be realistic. We are all savvy and wary of claims that sound too good to be true. Don't turn people off with rhetoric that is over the top.

7. Marketing "On the Cheap": Making your own business cards on your home printer and slapping up a thrown together, "make do" website says, "I'm not serious about what I do and quality isn't important to me." This is not the message you want to get across to potential clients. Yes, shop around. Get the best you can afford in professional design and paper quality in everything you do around your marketing. Put thought, care and effort into everything you put out there. For potential clients, it isn't "just an ad," it's YOU.

7 ½. Giving Up if it Doesn't Work Right Away: Building a reputation and audience takes time. If it is a proven, well planned strategy, give it a chance. I know of too many people who become a moving target and are constantly changing everything about their marketing strategy. Remember it takes a minimum of 7 messages for us to respond to a marketing message; and that is if we need the service and are ready to buy. It's all about consistency and persistence.

Can A Pessimist Be A Good Investor?

2007-11-29T23:26:00.000-08:00

Can a pessimist be a good investor? Are optimist better investors? If you think that money has nothing to do with personality, you are very wrong. How do you feel when your next paycheck is coming the next Friday, you have a few dollars in your pocket and your bills are to be paid tomorrow. Probably not very good. Key here is to identify emotions involved and to learn how to deal with them.

In order to be a successful investor you should have a plan, and to follow it. If it is absolutely necessary, you can change your plan, but not before that, and certainly you should not act without consulting your plan. Why you should be so rigid? The answer is simple, there are two very powerful emotions involved in investing: greed and fear. Depending on situation, those two emotions could have different intensity. Your reaction in a certain situation, is primarily based on your personality and not your IQ nor education. For example, imagine a fearful person that faces dangerous situation (stock prices are going down) could feel a great fear and to decide to escape. Usually, in the moment where prices are starting to going up again. A greedy person on the other hand, could decide to buy some share only because its price is going up, because his colleague said he earned a lot on that share. You can imagine the result. What is common with this two stories? Not having a plan, or not following the plan.

There are a loot of fun and not so fun test for greed and fear, but how is that related to pessimism, optimism and other -isms? You could figure it out on your own. Pessimists basically thinks that the things are in worse case then they really are, and that basically leads to selling things (shares) cheaper than necessary. Optimists, on the other hand, are willing to pay to much for something. If you are, god forbid, a lazybones then you would probably be guided with greed (money for nothing). You can imagine any personal trait and relate it to the greed and fear and to determine what effect it will have on you. That guesswork doesn't necessarily lead to perfect insight but is certainly a good way to understand yourself.

If this is to much introspection for you, you could try this. Subscribe to some virtual portfolio manager were you have option to play the game of investing in stocks with virtual money (use google and find what you prefer), and start playing. Refrain form any real investment for at least 6 months. You will notice how emotions are driving you from greed to fear and panic. You can use margins (meaning to borrow money form your virtual broker) to intensify your emotions. I think this is a great (and free) way to find out something about your self. You will certainly be surprised. Have fun!

The Secret to Being a Successful Business Owner

2007-11-28T22:56:00.000-08:00

One of the saddest facts of small business ownership is that most small business owners work WAY too hard for WAY too little: too little money, too little time off and too few clients.

They're overwhelmed, confused, sleep-deprived and 4 out of 5 of them will be back in a J O B within a few years. The odds are against you.

The question isn't whether or not you're smart enough or dedicated enough or have enough passion -- chances are, you have all of the above, until burnout occurs.

W Edwards Deming, a pioneer in the world of business, once said, "97% percent of all [business] failure is due to the system -- not the person." That said...

What systems do you have in place in your business?
If you have an assistant or team and one of them walks out on you, would your business grind to a halt or would it be a minor bump in the road?
When a prospect calls about becoming a new client, does she go through the same process as everyone else or does it depend what you're working on and your mood that day?
What are you doing to *consistently* market your business?

Are you working smart or hard?

When you write an article for your email newsletter or prepare a tip sheet for a client, what else are you doing with that work AND are you doing it consistently or just "when you have time"?

Is it sitting in a folder on your computer or do you have a system in place for it to actively build your list and show you as the expert in your field?

If you're not repurposing or repackaging EVERYTHING you do, you're working too hard! Here's just one quick example of what you should be doing:

Take the article you wrote for this week's newsletter and:

1. Convert it to a press release about how X benefits small business owners.

This is especially good for subject-sensitive items such as "small business tax tips" or "business planning/resolutions around the New Year" or information you have to share.

2. Record the article and offer it as a free audioclass on your website so prospects get to know you.

I use www.sandraaudio.com and LOVE it -- unlimited recordings (including teleseminars) for $19.95/month and they make it oh-so-easy (and offer free live trainings) -- even for the non-techie.

3. Bundle it with other articles

Group a bunch of your articles and offer them as a free special report on your website to help build your mailing list OR sell them for a quick source of passive revenue.

One thing to always remember: People WILL pay for convenience! If you offer them a quick and easy download that saves them time, they are more likely to choose that over researching the topic themselves.

And the secret to being a successful business owner? Having AND using systems in all aspects of your business -- success without systems is luck; outrageous success without systems is impossible.

Nine Ways to Go From Trashman to Cashman

2007-11-28T22:52:00.000-08:00

Don't you just love those stories that end with "and they lived happily ever after?" We all grew up with those stories. Often called fairy tales. Those stories provided us as children and young adults with a head full of dreams and possibilities. It was too bad that real life seemed to get in the way.

It was less than a year ago that we met Myron Golden. We had flown to Dallas, TX to attend his six figure business school. It is very difficult to try to capture Myron in words. He is a ball of energy, ideas, encouragement, and challenge. If you can't do something it is only because you don't know something yet is one of his favorite sayings. (I know I just paraphrased that but you get the idea.)

Have you ever had your basic business understanding challenged? We have all been raised and in that upbringing we have developed a business attitude. Most of us do not have a clue about it, but it is true. It wasn't until I started to examine my past that I understood where my attitudes toward money and success came from. I don't think any parent intentionally sets out to develop a 'wrong' attitude. It just seems to come out of everyday living.

When you meet Myron you do find out very quickly that you cannot use excuses. He had polio as a child. He has to wear a leg brace all the time. Oh well, you can read his story in his published books or attend one of his many seminars. What you are interested in is how to go from trash to cash. Let me outline the nine ways that he brought about the transformation.

1. Network Marketing. So, does this first point turn you off? If you are not vice-president or on up in a corporation maybe you had better rethink your position. I am fully aware that there are a multitude of rip-off organizations out there but if you do you research you'll find that there is a larger multitude of tremendous opportunities. Most of us fail in network marketing because we are not willing to learn and make the necessary changes in our lives to succeed. When we fail we can blame them. They had a poor business plan, the product isn't all that great, bad training, no training, etc.

2. Internet Marketing. You might as well wake up to the fact that the world is changing and so is the business model. If you are afraid of the internet it's because you don't understand it. It is here and here to stay.

3. Training Seminars. If you read five books on any given subject you are more knowledgeable than ninety percent of the people. Study a topic and start presenting seminars on that topic.

4. Ebay business. I still shake my head at this. It is unbelievable that people can make so much money on an auction site. But they do. That was definitely one thing I learned.

5. Record label. I don't know how many of us will do this but it worked for Myron. He could write poetry so he teamed up with a musician. There's a clue. Team-work.

6. Merchant Accounts. This is a way for people who have an internet business to accept payment via credit cards. An independent company who will handle the money for your sales. You can actually team up with them and when you refer someone you also get some income.

7. Investment Business. When you start making money you better have some way of investing it or you will lose it.

8. Coaching. This is the 'in thing' these days. Anybody who is anybody seems to have a personal coach or mentor. When you get good at your business you can coach others and get paid for the coaching.

9. Teleseminars. Why go to all the trouble and expense of renting a room at some convention center or hotel when you can have the seminar on the telephone. This is another area of change. There are actually companies out there that have free conference call telephone lines. You can charge people to come or sell your products to those who came or both.

Those are the nine things that Myron Golden has done to go from trashman to cashman.

Out Of The Rat Race

2007-08-09T02:46:00.000-07:00

In this day and age when the only sure thing about one’s job is the fact that there are no security in a job anymore, one have to start looking at different opportunities that may arise to help you become financially independent.

This statement that I have made may sound wonderful and so simple. Look for an opportunity, find one, do it and become financially independent.

Easy right? Simple right? Wrong, not so easy and simple!

Where do you start? Not all of us know where to look for an opportunity and we might not even see an opportunity that is right in front of us. Some of us might see an opportunity and then not know how to take that opportunity and make something happen with it. I know what this feels like. It has happened to me a few times….no, I’m lying, it has happened to me a lot, but I can say with surety that those days are over for me. What would you say if I told you that after you have read this article, you might just have found an opportunity, like I have, and a way to make this opportunity work for you.

Before I tell you more about this great opportunity, I want to ask you a question:

Do you have the will and desire to make a difference in your live and future?

I hope that the answer is Yes!

If it is, let me tell you about a concept that I was reading about. The more I read it, the more excited I became. That is why I am taking the time to write this article. I am so excited that I have to share this with you. Everyone is talking real estate, investments, building your own business. All ties into one thing……growing your Assets. I personally love the concept of real estate. In the past I have made some money with it and I am still learning about it everyday. But, real estate is not what I want to tell you about. To grow your real estate business (asset), you have to buy a property (land). What if you could grow your real estate business by creating your own land at no cost or little cost and after you have created it, you receive money from it for the rest of your live. A peace of property that was not there before you created it? What if you could do it over and over again? If you could do that, you would become very, very rich! I know…….it is impossible. What is not impossible though, it the concept that you could create your own piece of land. And that is what I want to tell you about.

There is one place that you can create a piece of “land” and that place is in the virtual realm. You can create virtual estate on the internet that is in concept the same as real estate. Once you have created a website (virtual estate), you can receive money from it for as long as you have that website. It might be a website where you sell products from, or it can be a website that sells information in the form of e-books or e-videos. The website is then an asset for you. It costs you little, and brings you wealth. And there is no end to how many virtual estates you can create. So, there you have it….the concept that made me very excited!

Virtual Estate!

You might say: That sounds great, but how?? Remember I said in the beginning of the article that you might find an opportunity, but then you do not know how to take advantage of that opportunity? Here is the good news!! I have told you about this opportunity and now I am going to tell you how you could take advantage of this opportunity and start on your journey, as I have, to become financially independent. Visit the link I have provided below and start your journey today!

Happy moneymaking days!

Planning and Goals

2007-08-09T02:44:00.000-07:00

Some of the brightest entrepreneurial minds on the planet have converged to bring us a new way to get there.

These guys promise exciting new options on the terminal horizon of our future commercial air travel vacations and business trips! The hub-and-spoke system of air travel has become outdated. Flying through Atlanta to get to anywhere on the planet is routine.

National Business Aircraft Association (NBAA) Fact Book 2004 reports that 30 out of the 550 commercial airports in the U.S. account for 70% of all of our air travel. Our skies are crowded around many major airports and the air traffic control system is rapidly approaching capacity. NBAA also reports that there are 5300 available satellite airports in the U.S. Many of these underused airports could be used by small jets to relieve this situation. "Very Light Jet" air transport technology is on track to make this a reality.

Very Light Jets are identified by other names including VLJs, Microjets, and Personal Jets. Their manufacturers are scheduled to begin deliveries worldwide within the next twelve months. With manufacturers reporting advance sales of thousands of these new planes, their customers are comprised of owner/ pilots, air-taxi fleet and charter operaters, private owners, and fractional providers.

Very light jets are considered to be a new category of plane because of their smaller cabin size compared to other business jets and they weigh less than 10,000 lbs. They are also powered by a group of newly developed and smaller jet engines.

Many groups are planning to compete for a piece of this new way to travel. These entrepreneurial efforts include a team headed by Donald C. Burr, founder in 1980 of the former airline, People Express. On March 29 Burr, his son Cameron, and associates made a Securities and Exchange Commission filing for their Very Light Jet Company, POGO.

Burr says "our intent here is to bring the private-travel market down from CEO level to manager-level people." The reported pricing plan of POGO is to provide a $3 to $4 a mile travel experience. This fare structure compares to retail first-class on most flights.

The commoditization of these Very Light Jet air-taxi seats will make this travel option available to progressively larger segments of air travelers.

The aircraft at the heart of this breakthrough technology will have one or two engines, glass cockpits, and seats for four to nine passengers. Their range will be over 1000 miles and they will fly at a speed of 340 to 380 knots and up to FL410. The turbofans that power these rockets produce 700 to 1700 pounds of thrust and weigh 200 to 300 pounds!

The VLJs will be certified and equipped to fly with a single pilot but most of the planes will likely be flown with a crew of two.

NASA's General Aviation Propulsion Program (GAP) ran from 1996 until 2002 on a mission to deliver a selection of vastly improved performance-to-price ratio General Aviation engines.

NASA and Williams International participated in the turbine portion of the GAP cooperative agreement and developed the FJX-2 turbofan. This prototype engine weighed 85 pounds and ultimately produced over 700 pounds of thrust with a thrust-to weight ratio over 8.2, the highest in commercial turbofan history!

The FJX-2 program inspired the development of the GE/ Honda HF118, Pratt & Whitney Canada PW615F, and Williams International FJ33, which are the production engines for the Very Light Jets. There are also many military applications for these new engines beyond their use in commercial aviation.

The aircraft are in various stages of manufacture and certification. Adam Aircraft Industries, Avocet, Aviation Technology Group, Cessna, Diamond Aircraft, Eclipse, Embraer, Epic, Eviation, Excel-Jet, Honda-Jet, Maverick, Scion, Spectrum, and others are at the starting line. Which manufacturers will win the high-stakes race?

What about our future vacations and business travel? Will we be comfortable in these small Very light jets? Will our kids miss running up and down the aisles and harassing the flight attendants? Will our spouses complain about the size of the bathrooms- and will we miss those hours spent at the Atlanta Hartsfield airport?

Stay tuned!

Self Employed

2007-08-09T02:39:00.000-07:00

Being self employed is typically thought of as working in your own business, as opposed to working for someone else's business. However, you can start working for yourself today, even if you are working in someone else's business. It all a matter of perspective.

You are an employee when you are working for someone else, but you don't have to think of yourself in that way. Think of yourself as self employed. Even if you're flipping burgers, you're in the business of selling your labor, right? And business people think differently than employees.

The word "employee" often carries connotations of slavery, as in the expression "wage slave." It is associated with a loss of control, a sense that the "boss" is the one calling the shots. What an awful thought! There is a better way.

Be In Business Starting Today

My employers have never been more than customers to me. If I dodn't like the terms or price, I negotiate or go elsewhere. There are opportunities everywhere, after all. This attitude has meant I've never felt trapped in a job I didn't like. I look at jobs as business opportunities, and choose the best one at any given time. If my own business is a better one, as it is now, then I do that.

Ther is nothing sadder than bitter workers who feel cheated and dependent on an employer. I have had terrible employers, but they never made me bitter. In any business you sometimes work for customers you don't like, if the pay is worth it.

Many years ago I worked at a casino. As a reservation casino they could get away with not paying minimum wage. With the tips, we made good money, in fact more than any of the five other casinos in the state. Most of the workers were bitter, though, because the employer wasn't doing what they were "supposed to do."

They had their employee mentality, and so felt cheated. As a businessman, I could look at it objectively and see they were paying more than other potential buyers of my labor. They certainly were a "problem customer" in many respects, but I chose to do business with them, so I couldn't feel bitter about it.

How To Be Self Employed

It helps to have money in the bank. "Wage slavery" is only true to the extent that you've put yourself into that position. It takes only a few weeks to find another customer for your labor. Anytime you feel you can't quit your job tomorrow, you're probably not arranging your financial affairs properly. Any smart businessman plans for ups and downs.

Here is what you need to do to support your new perspective: put a little money aside, keep out of bad debt (only debt that produces income or profits is good debt) and keep your fixed expenditures low. Take responsibility today for your choices. You are in business, selling labor, skills and knowledge.

You are opening your mind to the possibilities of better jobs and business activities. These are nice advantages, but not the best reason to adopt this attitude. You see, even if you stay at your job for thirty years, you will feel free, and not dependent. This is YOUR business decision, and the freedom that comes with this acceptance of responsibilty is the best reason to take this perspective. Starting today, you are self employed.

Should You Take A Job ?

2007-08-07T00:30:00.000-07:00

The Entrepreneurial Dilemma Most entrepreneurs hate the thought of having to work at a regular job ever again, especially if they've already been in business for awhile. But what do you do when you've run out of start-up money and you're still not profitable yet? Or what happens when some major change is forced upon your business and you can't keep up with the bills anymore? There may come a point when you have to objectively consider whether continuing to work solely on your business is viable or not.

After clearing away any feelings on this subject that prevent you from being objective, the next most difficult part is getting past the "entrepreneurial dilemma." I'm sure you're already familiar with the thoughts that go something like this, "If I get a job, it's going to take time away from my business and will just set me further back instead of forward." There can be truth in that statement, but it doesn't have to be an either/or situation. The work-around to this problem is in getting the right job.

Here's a model of job-opportunity screening that I've successfully used with clients that have decided to look for employment. It's based on the educational- type evaluation system of grades A-F.

The "A" Job Description This level of employment is the absolute best job you can imagine: being a salaried employee for your own company (or one that you really love.) It should be congruent with who you are, and helps you develop yourself in a positive way. This is the kind of work where you are truly living out your dream.

These are qualities of an A-job:
•Meets or exceeds your income requirements
•Is something you feel passionate about
•Utilizes your natural strengths, talents, & skills
•Is challenging, but you feel a certain sense of ease
•High reward
•Average to high stability
•May have high risk (but it's minimized by reward/stability)
•Bottom line: Gives you everything you want-- and more

The "B" Job Description This is the perfect "while you grow your business" job. It may not be as exciting as your own business, but it's purpose is to stabilize you while you create your own A-job. This position may be full or part- time, depending on how much income your business generates.

These are qualities of a B-job:
•If full-time: meets 100% of your income requirements, so that any money you earn from your own business is bonus
•If part-time: meets 100% of your income requirements when combined with the lowest month of income you've ever earned from your business.
•Relates to your business expertise in some way
•Teaches you skills that you can also apply to your own business
•Is easy enough that you can grow your business on the side
•Average to high reward
•High stability
•Low risk
•Bottom line: Gives more than it takes

The "C" Job Description These are the kind of jobs you want to avoid, and yet many entrepreneurs are oddly attracted to them. Employment in this category is often commission- only, low pay, fill-in work, or booked sporadically. One of the red-flags of a C-job is it's inherent instability. The sad outcome of a C-job is that you're taking time away from your business, and are still unable to meet your monthly overhead.

These are qualities of a C-job:
•Does not meet your income requirements
•May either be something you're passionate about- -or not
•May have a big learning curve for something that isn't useful
•Is difficult and interferes with you growing your business
•Low reward (often disguised as high-commission)
•Low stability
•High risk
•Bottom line: Takes more than it gives

The "D" and "F" Job Descriptions Really, these don't need much description. Let's just say that a "D" would be when a business is dying. An "F" would be when a business has failed. Obviously, these aren't even worthy of your consideration.

So when is it time to find a nice B-job? The answer is: when your own business has deteriorated into something you would rate as a mid- to-low "C." Instead of letting your business drop all the way down to the dreaded "D" or worse, consider how the stabilizing benefits of a great B-job could re- energize you and your bank account. If you had a little more money, it would buy you more time to build your business on the side. Take a little pressure off your back. Rebuild your confidence while your rebuild your profitability. In fact, if you're lucky enough to land a B+ or A- job, you might find yourself connected to the people that can help your business succeed in the long-run, as well as solve your short-term cash crunch.

Bottom line: You deserve to have your basic needs met, and if you must temporarily take a J-O-B to take care of yourself, then that's the right thing to do.

Start Credit Repair Business

2007-08-07T00:29:00.000-07:00

Statistics show that the first 2 years of being in business for yourself will prove to LOSE MONEY. Yes, the vast majority of business will cost you money for the first two years. And, that does not count covering your personal expenses over those two years while also paying for those business loses. I have been down that road and it is not a pretty one. It was not until I started a credit repair business that I reached financial independence and was thankful I had stuck out the tough years so that I could find a business such as this.

In my first 6 months of my credit repair business, I experimented with many credit repair techniques and also advertising methods. The time spent doing these things soon lead to the success of my business and I came to the realization that anyone, anywhere could be doing the same thing I am doing and making the same profits. Therefore, I spent all of November and December of 2005 creating a system that someone else could use in their location to duplicate my success. This is a system, that if I had had early on, I would have been able to start off making great profits instead of spending 1/2 a year learning how to run the business.

Did you know that flyers aren't a good way to get credit repair customers?? Did you know that classified ads don't work either? Don't even try these two things. But, there is good news, too. There are 9-10 SOLID ways of getting a steady strem of customers to sign-up with your for credit repair. You need to offer something different. Credit Repair (deleting negative items) is only HALF of the real equasion of credit repair.

Adding Positive Items is just as important as deleting negative. By adding this to your arsenal, customers are much happier with your ability to serve them. Like I said, you too can be making thousands of dollars per month doing credit repair as well. Email me at trentwsmith2@yahoo.com for information.

Teaching Kids Business

2007-08-07T00:26:00.000-07:00

A business teaching what you know to kids is a great way to make money doing something you love. But, whether you will teach private singing or sewing lessons or group dance or karate classes, there are a few questions you should answer before taking the plunge into this type of business.

Most importantly, consider the popularity of the topic you are planning to teach before starting your teaching business. There is a market for practically every type of enrichment class for children, (music, singing, dancing, karate, sewing, arts/crafts, cheerleading, gymnastics, sports, etc.) but some will definitely be more popular than others. Some teachers will be overrun with calls for their popular subject, while other teachers have to constantly be marketing to attract students. There may be a lot of competition with some types of lessons, keeping the tuition prices low, while the only teacher in town of another subject with no competition is raking in big money.

Also, take a look at what you are planning to teach with the geographic area around you in mind. Are there a many teachers of the same subject within a reasonable radius? Is it because the subject is very popular and there is plenty of room for more teachers in this area? Why isn't anyone else teaching your topic? Is it because there is no interest or is the interest there, but there are no teachers with the appropriate knowledge?

Consider what ages you want to teach. Are there enough children in your area in the age range you want to teach? What are the local school hours? Will kids be out of school during the time you want to teach?

Answer all of these questions and any more appropriate to your teaching topic before you go any further in setting up your teaching business.

The Big Market

2007-08-07T00:23:00.000-07:00

A few years ago, one of my consulting clients, a large, independent appliance store gave me an education in the marketing of refrigerators.

Walking me past a lineup of mostly white machines, the president said, “Look at the pricing, and tell me the one that most customers will want.”

I can’t recall if I guessed right, but soon enough he gave me the answer.

“The middle one,” he said. “They don’t want the cheapest, and they don’t feel they can afford the most expensive, so they take the one that’s priced, in between.”

That makes sense, I thought. But the fun was just beginning.

“Now,” he continued, “Guess which machine is the most profitable to us; the one with the fattest margin.”

”The most expensive?” I guessed.

“Wrong; it’s the middle one!”

He went on to tell me that his margin was the thinnest on the “best” machine, and he really hoped buyers wouldn’t select it.

Interesting, isn’t it? The average grade is the winner.

He noted that the costliest is the best value, having a longer warranty, disproportionately more features, better energy efficiency, and so on. In fact, it is the cheapest to own, in the long run.

My boss in the leasing business shared this notion:

“Gary, do you know the only way to beat the car business? Buy the very best car you can get, and then keep it running, forever!”

But that’s not what we do, generally. We buy a middle grade vehicle, become dissatisfied quickly, trade it frequently, and our overall cost of driving might exceed that of someone who owns the Bentley or Rolls for a few decades.

The lesson, for all of us is pretty clear: whether you sell goods or services, offer a middle grade, then step back, and let people convince themselves that it is the reasonable choice for them!

The Value of A Lawyer

2007-08-07T00:22:00.000-07:00

A few months ago, I received an assignment from an individual who had just acquired his third business. His first business was a retail store that was quite successful. He operated it for three years and then sold it for a profit. He took the proceeds from that sale and acquired a rental business. He operated that business for a number of years and even purchased the property it was on, which included a number of other buildings that he leased out. He eventually sold that business for a profit and proceeded to invest the entire proceeds, into a plumbing contracting business. With the first two businesses that he bought and sold, he dealt with sellers and buyers who negotiated in good faith and fair intent. In both cases, a common lawyer was utilized to avoid increased expenses to either party (this is something I am definitely against under any circumstances, it is penny wise and dollar foolish). After closing, in the first two cases, there were some discrepancies and disputes but they were resolved, without much effort and to both parties mutual satisfaction. The third acquisition, the plumbing contractor turned into a complete nightmare. This individual naively believed that he and the seller were using a common lawyer, but it turned out that the lawyer was representing only the seller and that meant that the buyer did not have any legal representation whatsoever. The agreements and documents were all drawn up to leverage the seller’s interests and any safeguards that are normally in a buy/sell agreement to protect the buyer were nonexistent. Every time a new discrepancy or dispute arose the buyer would say things such as; “it is not fair”, “that was not my understanding” and “that is not what the agreements say”, and I kept having to point out that it may not be fair, it may not be what you understood but it is exactly what the agreements say, and you signed them.

I cannot stress the importance of good, independent legal representation when acquiring a company. Just because you may have been successful previously without legal council does not mean that you will be successful every time. An analogy would be that you have driven for twenty years without having an accident hence you may as well cancel your car insurance. Having a good lawyer is the same as having an insurance policy, you hope that you will never need to fall back on the safeguards placed in any of the agreements because of an attorney’s efforts, however you will be very thankful that they are there if you ever do need to utilize them.

When choosing a lawyer, do not forget the old adage that you get what you pay for. If one lawyer charges you $100 an hour but takes 10 hours to do the same thing as a lawyer who charges $150 an hour but only takes 5 hours to do the same amount of work, which way are you better off?

Lawyers are specialists, they all have their areas of expertise, do not hire a real estate lawyer to provide legal expertise on your business closing agreements and documents. After all, you wouldn’t go to a podiatrist for heart surgery, yet they are both qualified doctors!

There are other advantages to using a qualified lawyer:

· A lawyer can be the intermediary in a tough area of negotiation. If you have to deal directly with the seller, you may develop animosities towards one another during the acquisition stage. If you then need to contract with the seller for a period of time to transfer his inherent knowledge of the business and/or to train you in its operation the animosity developed during the negotiation stage may make an on-going relationship very strained.

· Having your lawyer request the list of due diligence material required places a buffer of what might be considered pettiness.

If you are comfortable with doing the due diligence on the business on your own that is quite acceptable. You may still want to have your lawyer request the information on your behalf.

· It is best to have your lawyer do title searches, to confirm that there are no liens or chattels on the assets. Your lawyer can also check for outstanding lawsuits. He can also ensure that corporate, sales and withholding taxes have been paid to current dates.

· The lawyer is the best individual to determine that the articles of incorporation are valid, that any dba’s (doing business as) and/or fictitious names are valid, that the bylaws allow the business to operate and be sold in the manner that is being negotiated and that the minute books are up to date.

· You may want your lawyer to verify that the wording within any contracts that the current business has with vendors and/or customers allows them to be assigned or transferred to new owners. Many contracts contain clauses that do not allow the contracts to be transferred or assigned without the consent of all parties.

If there are customer or vendor contracts that have to be renegotiated, I highly recommend that you renegotiate them, not your lawyer. You are the person who will have to deal with the other party, now is the perfect time to introduce yourself.

· Should your investment require a partnership agreement then your lawyer is the best person to draft it. Your lawyer will ensure that as many safeguards as possible are placed within the agreement.

· When entering into the acquisition of a business it is wise to determine what happens to the ownership of the business should something happen to you. In other words, it is time to update your will.

If you currently reside in a different State than the State where the business is located or incorporated, it is best to consult with a lawyer who is licensed to do business in the State where the business is located. He can explain how the laws of your State may vary from the laws of the State the business is actually registered in.

Corporations can be registered in one State and do business in another state. Your lawyer will verify all jurisdictional issues as part of his due diligence process on the corporate entity.

To reduce legal expenses you should make a list of exactly what items that you want to discuss with your attorney before you visit him in person. Lawyers charge by the hour, the more efficient you are, the more efficient your lawyer will be, the less time you will take and hence the less money that you will spend. Read all documents sent to you by your attorney, make sure that you understand what all the documents say. Lawyers are not perfect and make mistakes as well. Make changes and corrections in batches. In other words, read all draft documents sent to you, make all the corrections that you require and make a list of items you don’t understand or feel are miss worded. Then contact your attorney to discuss the changes and corrections. Taking this route will save you time and money.

Always remember that a lawyer is there to give you legal advise – not business advise. If you need business advise then contract with a business consultant.

Enterpreneur Top Tips

2007-08-07T00:20:00.000-07:00

I’m about to share with you the common thread that ties together all successful entrepreneurs. This single trait launched the businesses of Microsoft, Intel, Hershey, JP Morgan, Amazon.com, Nike and so many others. It’s not anything you’ll be taught in Business School, it has nothing to do with accounting, and it doesn’t even have anything to do with what you’re selling or how you’re selling it. I’ll sum it up in two words:

GET STARTED!

That’s it! It’s laughable at first, but the more you think about it, the more it makes sense. It’s the missing “million dollar” idea, hiding in plain sight. We hear variations of this all the time: A journey of a thousand miles begins with a single step.

Think back to your first writing classes in school. How were we taught to write a paper? First we start with a basic outline – that’s our money-making idea, whatever it may be. Next, we make a rough draft – that’s right, we start working on something that we know for a fact will be imperfect. Finally, we use our rough-draft as a basis to begin revisions, eventually ending up with a final draft, the “perfect” version.

Planning for tomorrow is a sound business strategy. It’s good to spend time thinking about the future, and how to handle the challenges it will bring. But, if we want to succeed, we must create the future by taking action today. We can’t possibly predict everything that might happen once we start doing business. Microsoft started out selling programming software. After a few years, an opportunity presented itself to sell a computer Operating System to IBM, and they took it. The result was MS-DOS (which they didn’t even create themselves, they bought it from someone else when they saw how much money they could make!), followed by Windows; quite possibly one of the most lucrative products ever. If Bill Gates and Paul Allen, the founders of Microsoft, had sat on the sidelines of the growing computer industry thinking “programming software is an OK idea, but it’s not perfect, there really isn’t a big enough market for it…we need something better”, would they be where they are today? Would IBM have given them that golden opportunity? Not likely.

Did Michelangelo's sculpture of David emerge from a single tap of a chisel upon a block of marble? No, it took Michelangelo over 3 years of effort to release his masterpiece from the stone, one tiny chip of marble at a time. It probably wasn’t very pretty after only 1 month, or even a year. But years of careful improvement resulted in a classic work of art.

I hope I’ve made my point. Do something. Do anything! If you do something, and the result isn’t what you wanted, what’s the worst that could happen? You either have something to improve upon, or you have a very good idea of an approach that doesn’t work (think of it as addition by subtraction…the process of elimination). Either way, you’re one step closer to success than you were before you started.

Go for it! Give it a shot! Your financial success is waiting for you, go and get it! Get Started Today!

Unlimited Income

2007-08-07T00:18:00.000-07:00

Would you believe me if I told you, that you have an unlimited income potential? That you could be your own boss and decide when you've made enough money. Would you believe that your business could make money for you around the clock, even as you sleep, with no effort at all? Well that is exactly what I'm going to do!

Don't get me wrong, this will initially require quite a bit of effort. But after you get the ball rolling, the maintenance is minimal. The only time it'll require more effort, is when you want to increase your income, and even that will get progressively easier each time.

So what is the fastest growing market to date? That's right, the information industry. It's a $285 billion industry. We're currently living in the Information Age and information is exactly what everyone is looking for. This sounds great so far, but it even gets better.

Musicians and authors are some of the wealthiest people around. Why is that? They create low cost assets. Well what is that? An asset is something that you own that puts money in your pocket. For example, think of your favorite musician. How long does it takes for them to make an album? A couple months at most? Well that album makes money for them for many years, possibly decades. The same goes for books. Information products can be created within a matter of days or weeks.

The great thing about the internet is that you can automate the entire process! After you've finished typing product you save it to your computer and upload it to your website. You can create a website for $10-$20 a month and it does all the selling for you. After you receive the payment your customer instantly gets access to the product that is saved in a secret location on the web. You have no inventory to deal with. Stop working for your money and let your assets work for you!

Venture Capital, Is It Right For You ?

2007-08-06T02:06:00.000-07:00

First a short definition of venture capital. Venture capital is often viewed by the entrepreneur as a high interest loan. This isn't really the case. Venture capital is just money made available to you for starting your business, in exchange for ownership in the company. In most cases the VC firm will also offer you management advice and guidance. It is also sometimes referred to as "angel financing" a term you'll find laughable if you do business with the wrong firm.
The way it works is you approach a venture capital firm and pitch your idea to them. It doesn't have to be a business you are starting, it can also be a business you are trying to buy .
The firm will usually have a board of seven to ten people meet with you and discuss your idea. Then they make a recommendation to the full firm, or a segment of a larger venture capital firm, and decide if they should give you the money.

Most of the cases I've seen the firm retains 40% ownership if you pay them what they demand every month. If you fall short a couple of payments they take 60% control of the company and you get 40%.
There will also be certain covenants when you have the majority ownership. You will only be allowed to spend a certain amount of money wihout approval from the firm.

Sound fairly straight forward right? You pitch the idea along with the amount of money you'll need and you're expected earnings over a five year period. You show them how you'll increase sales, cut costs, and manage the company better than anyone else could ever dream. They in turn give you a pile of money and free advice. What a deal!.

Here's what really happens.

You approach the venture capital firm and meet with the board. You show them how you've invented a process of combining milk and apples into a potion that will cure cancer, and serve as an alternate to gasoline for 3 cents per gallon.

One of the board members is very enthusiastic. She thinks you're on to something that with a little management and marketing guidance from the firm could be really big. The other six grumble about the risk of alar and other problems associated with apples.

After a few weeks they grudgingly decide to meet with you again. The guy that was excited about your idea sits quietly and the other members have softened a little to your idea but still have serious concerns, blah blah blah. After the meeting is over your ally will come over and talk to you alone. She'll tell you she was really pulling for you and you may have to give up a little more control or equity, but she's in your corner and thinks she can get it done for you.

If your idea really is good, you'll get the money. If they detect you're not 100% confident and that you don't posess business savvy they'll try to control as much of your business as they can in most cases. In other cases they'll give you tons of freedom, but watch over your shoulder and count every penny.

When you fail to make a couple of the payments (and they will be considerably higher than bank payments) they'll take control of the company. Then they'll run it with such a heavy hand you'll be forced to either sell to them, or get bank financing and buy your company back at a healthy profit to the venture capital firm.

So is it really that bad? It can be. You have to research the VC firm or angel investor much more diligently than you would a bank or other lending institution. You must stick to your gains and get the best deal you can. This means you're going to have to be patient, and you certainly will want to talk to at least to other VC firms. In short, you have to play their game.

So what should you look for in a venture capital firm? I'd recommend one that's been around for more than fifteen years. Some of the VC lenders have became jaded since the dotcom bust, and honestly it's hard to blame them.

On the board there should be at least one or two entrepreneurs who made their money the old fashioned way. Hard work and perseverance. If it's full of former dotcommers you'll probably want to steer clear. The biggest reason for this is they may have no management or real business experience. The fact that they had a great idea and were able to capitalize on it before the bust doesn't make for the next Jack Welch. It would also be a plus if they had a senior level manager in a big company. These guys know how to work a bureaucracy and what the traps are.

If you've done your homework and really believe in yourself and your idea, let the confidece shine through. That doesn't mean be arrogant. It just means, hold your ground until you get the best deal possible.