Not hide from my family (although the idea occurs periodically), but hide behind my computer. More and more, I look around and see social media chatting replacing real time networking. Please don’t mistake me, I love social media, use it all the time, and have reaped the rewards of connecting online. However, not without getting out there and networking IRL (In Real Life).

Whether it be on a local level or a regional or national conference, it is essential to connect face-to-face with other small business people in your vertical or who complement your business. Not only is this essential for your business, but also for your mindset. As I wrote earlier, being a small business person who either works from home or a small office is isolating, and talking to others allows you to see you are not alone.

The first step in networking is to start out slow. Try a local networking mixer first. Most local communities have a community calendar. Seek out a young professionals meet-up, a direct sales referral group, or even a seminar. Take a peek at what is going on out there behind the world-wide web and you will be pleasantly surprised how refreshing talking in person is!

**Tip: Take a wingman. Most of us have at least one friend or colleague who lives near us who does something similar. Cajole them to go along and be your back-up.  Often walking into event with someone else is all we need to move forward.

Local networking hours often lead to meeting like-minded entrepreneurs also looking to share ideas and brainstorm solutions. Don’t just collect cards, but follow-up with the people that you met and clicked with….That means setting up a second meeting, forming a mastermind group or scheduled meet-ups.

**Tip: I try to schedule my meetings for one right after another during a specific time frame, so I don’t lose travel time going to and from random meetings here and there. Pick a day or two per week that you schedule appointments.

Hitting up a conference or two is a big MUST. I know this brings a financial component, but it is a necessary expense to expand knowledge and meet others in your space. The internet and the overall accessibility that it brings allow us to network nationally, but meeting a few of these connections in real time really helps the process. Take the plunge and go - make the most of the experience.

**Tip: Keep costs to a minimum by driving to a conference with some of the connections you make locally or attend a conference in a city where you can stay with friends or family.

What do you think?  Do you like to get out there and meet other startup business people?

What are your tips?

For more on meeting people in person and networking IRL - visit me here.

Rachel

If you’re like me, you’ve probably said this statement many times: “If I had only known then what I know now.” I understand that mistakes are part of the process, but do I have to make so many of them!?! Experience has made me a fast learner and now, more than ever, I pay attention to those who have gone ahead of me so I can learn from their mistakes and hopefully not make so many on my own. Maybe you do too.

To gain some more insight, I asked business owners who have been in business five years or more the same question, “If you would have known then what you know now, what would you have done differently and why?” Their answers were not only insightful, but inspiring and I think you will really appreciate what they had to say.

So here you go; 29 (plus one) insights from business owners like us on what they would have done differently had they known.

We would love to hear your answers too, please leave a comment and let us know, “What would you have done differently in your business if you would have known then what you know now.”

Enjoy!

1. Hire Slowly, Fire Quickly

Oh man, I wish I would have remembered this one every day when I woke up. There is little of greater importance than having the right people on your team(s) and when you find out an apple has gone bad or you have found a worm in a seemingly perfect apple, get rid of it ASAP! The old adage is often true, ’some dogs can’t hunt’.

Thanks to Ben Sayers, VoIP Supply, LLC.,VoIP phone systems, in business 8 years

2. Be More Open to ChangeTechnology and trends are constantly evolving: one day you are set in your Facebook ways and the next day Pinterest is the new phenomenon. Social media has changed the way we do business and how startups utilize it is integral to your success. However, if someone told me this during social media’s infancy, I would have called them crazy. I let all my years in business bias my first impression of social media and thought it was simply a fad. I couldn’t have been more wrong! Social media has changed the way we do business and has set the bar for the way we measure success. If companies are not willing to adapt, they will never become an industry leader or experience great successes.

Thanks to Jim Joyal,, SHIFT Communications, PR and social media agency, in business 9 years

3. Be the Boss Not the Buddy

Don’t be friends with employees. When you try to be too nice it makes it easy for others to take advantage of you, and that’s been true of about 80 percent of everyone I hired in the past. There was a time when I would give a job to almost anyone who asked, regardless if they were qualified or not, because back then I had the capital and I did not want to be the person who turned them down. Most of the money I lost when I started out was due to being overly tolerant of inefficient employees. It’s fine to be friendly with your staff, but you have to set boundaries and be willing to be a firm boss — whether you have three or 300 people working for you.

Thanks to Cathy Ward, BridesVillage.com, wedding accessories e-commerce retailer, 11 years in business

4. Lock in Your Location

Had I known then what I know now, I would have done everything possible to purchase my own business property. Last year, the rent for my original office, located in the Prospect Heights section of Brooklyn doubled, necessitating my having to move during my income tax preparation season.  If I had to rent a property, the lease would have included a “lease to own” clause and have a termination date during my slow season.

Thanks to Eustace L. Greaves Jr., Greaves Financial Services, Insurance and Income Tax Preparation Services, 17 years in business

5.  Start with Sustainably in Mind

In hind sight I would have focused much more deeply on a sustainable way to generate deal flow and new leads. No matter how large you think your network is (mine is large) it is not large enough and although power networking/word of mouth is the best source of leads of all the advisor/coach /consultant/soloprenuers I know almost none are reaching their personal income goals. What I am doing differently is focusing on the internet. I have just launched an e-commerce site and hope to launch a content site in the next 90 days. Historically my advisory services were delivered on site at companies located regional. I will continue with my advisory work with about 1/3 of my time, but focus on national and to a lesser extent international clientele via phone or Skype.

Thanks to Ajax Greene, On Belay Business Advisors Inc., business advising, 7 years in business

6. Know the Value of Vision

I would have placed an earlier emphasis to define the vision, mission and values of our company. It is important for the value of our employees to be aligned with my vision for our Company.

Thanks to Jason Maxwell, MassPay Payroll Services, payroll services company, in business for 8 years

7. Eliminate Distractions

Having owned several companies, I would have eliminated my distractions sooner than I did, e.g. real estate investments (rentals), buying and selling a laundromat, renovating homes, etc. While all the ventures were profitable they took away from focusing on building a brand that ultimately would have had more value than the combined profits of each transaction not related to directly building that brand.

Thanks to Joseph Carvelli, Retail Ingenuity, retail inventory and sales forecasting, in business for 12 years

8. Set Aside Significant Saving

I assumed if I built a good product, they would come! I had no idea how costly being in business would be, the amount of money I needed to succeed, or the toll the financial strain would take.

I am blessed that I had the tenacity and the strength to succeed despite overwhelming odds. If I could go back to the beginning, I would make sure I had significant savings set aside, or capital from another source. I cannot overstate the importance of being properly funded!

Thanks to Regina McRae, Grandma’s Secrets, dessert delivery, in business for 18 years

9. Put More Emphasis on Processes

If I had known then what I did now I would have put a lot more time into creating processes.  I find that with the majority of businesses these fundamentals often get overlooked and sometimes ignored completely. To me this is utter madness! A company can succeed or fail just by their processes. We find that we avoid 99% of mistakes because we process them out. This not only avoids unnecessary errors and client issues, but actually makes the company as a whole more efficient.

Thanks to Ben Norman, Koozai Ltd., UK based digital marketing agency , in business for 6 years

10. Delegate, Delegate, Delegate

I would have delegated more and not tried to do everything myself. Although it does take time to build relationships with your staff, I waited too long to delegate certain responsibilities that could have been done by someone else. Giving responsibilities does much to validate a staff member’s gifts and also demonstrates a deeper level of trust in the employer / employee relationship. Letting go of certain tasks has been difficult for me but I have come to realize that the more responsibilities I entrust to others in their areas of expertise, the lighter I feel, the more confident a staff member becomes and greater things are achieved by their efforts than could have been done otherwise.

Thanks to Stephanie Ciccarelli, Voices.com, online voiceover talent marketplace, in business for 8 years

11. Let Go and Let it Grow

For many years I had to know everything and do everything. I have discovered that other people and organizations can do things better and at a lower cost than doing it myself.  Letting go has enabled my business to grow and prosper and made my life much easier.

Thanks to Bob Shirilla, Keepsakes Etc. and Simply Bags in business for 30 years

12. Avoid Delaying Difficult Decisions

My biggest lesson over the years was learning that sometimes decisions had to be made for the good of the company, which sometimes meant disciplining or dismissing employees. In particular, when the economy started going into recession, I had to fire one of my closest friends in order to keep the company going. I should have done it sooner. As a result of my delay, it took a while to regain the company’s financial stability. Making difficult decisions is part of owning a business. Owners have to be willing to do it.

Thanks to Susan Southerland, Just Marry, Just Right DM and The Susan Southerland Secret, event planning, destination management, and small business consulting, in business for 20 years

13. Start with a Solid Team

I would have started with a solid business plan, hired an account, and started with a solid team around me.  There are not many businesses that are successful with one person wearing so many hats. Do what you do best and allow others to contribute what they do best to help your business grow.

Thanks to Amore Leighton Black, Apples & Oranges Public Relations, public relations and marketing, in business 7 years

14. Charge What I am Worth

I would have charged more! I was so excited to be working for myself doing something I loved. I’ve never been a person who chased profits -that’s not why I do what I do. But I didn’t do my homework and when I started, I charged pretty close to what I was making hourly at the jobs I’d left behind. That was all fine dandy except when working for myself, that wasn’t enough to cover things like taxes, health insurance, and so on. And also, I was definitely undervaluing my services. I was booked ALL the time, yet I could never seem to get ahead. Even though my clients all loved me and thanked me for my work, I doubted my value, and that was definitely reflected in my pricing.

Thanks to Alaia Williams, One Organized Business, professional organizing and small business systems consulting, in business 5 years

15. Focus on Building Relationships

We spent a fortune of money on advertising when we started out (with unimpressive results). We then changed our focus on relationship building with existing clients and organic search maximization vs. paid ads.  Now we see incredible returns in the form of referrals, and new business at a cost that is a fraction of what we used to spend. We needed to learn the hard way but if I knew then…

Thanks to Ben Schusterman, ElJet Aviation Services - private jet charter service, in business for 5 years

16. Start with More Money, Less Friends

I would start with about three-times as much cash as I thought I needed. I’d also be cautious around hiring friends/family.

Thanks to Heidi Ganahl, Camp Bow Wow, doggy day & overnight care, in business for 12 years

17. Use a Better Business Model

If we knew then what we know now, we would have started with the business model that we changed to about two years ago. Before the recession hit, we charged $39.95 for an annual membership with no free trial, and no automatic rebilling at the end of their membership term. During the recession, the rate in which we generated new members waned and we reached a growth plateau. To combat our stagnation we decided to change our revenue model to a free trial and a monthly rebilling combination. We implemented a three-day free trial and then a recurring $18.95 monthly fee after the three days expired. We are doing very well as a company now, but in retrospect, we should have thought about rebilling from the get go.

Thanks to Ian Aronovich, GovernmentAuctions.org, providing information about government auctions of seized and surplus merchandise

18. Hire Employees Sooner

One thing I would do differently if I were starting my training business today would be to make my first hire sooner. Operating on shoestring (and a broken one at that), I originally had to do everything myself. The thrift that made it possible for me to survive and then thrive in the beginning quickly became a hindrance when I delayed hiring people who could do any number of specific tasks easier, cheaper and far better than I could.

Thanks to Barry Maher, Barry Maher & Associates, motivational speaker, leadership trainer

19. Dream Bigger

I would have dreamed bigger from the start. In the beginning, my focus was on serving clients in my own Puget Sound backyard, even though successful people who were familiar with my publicity expertise and storytelling gifts were telling me to think nationally or globally. If I had it to do over again, I would have put more emphasis on national and global reach of my message right from the start.  Lead with juicier, higher value, and leveraged offerings first. When I was just starting out, I put a lot of emphasis on creating the absolute best $10 product about do-it-yourself publicity that I could create. Yes, the Media-Savvy-to-Go Publicity Tips Booklets have sold by the thousands since debuting in August of 2006. However, it is so much easier to make a bigger impact for more people and my own balance sheet by leading with a juicer, higher value offering. Today, the Broadcast Your Brilliance Webinar Series and Bye-Bye Boring Bio PLUS! Programs deliver great value for many around the nation and the world at price points that make it a whole lot easier to make a good living. Whether you create an entry level product or something much more, you still have to create all the systems to support those offerings. By leading with a deeper offering, the rewards are greater for all.

Thanks to Nancy Juetten, Authentic Visibility, PR tools and training, in business 11 years

20. Approach Additional Services More Cautiously

I’ve been in business as a web designer for 18 years. The main thing I would have done differently knowing then what I’ve learned along the way is I would approach any add-on services very cautiously. I used to briefly check out add-on services such as hosting, domain name management, and others, and then I would jump in whole-heartedly. Most of the time, it worked out fine for me. However, the occasional missteps cost me dearly.  As I learned more about running a business, I also learned through hard knocks that it is much better to approach additional services methodically and cautiously. I don’t put a lot of funding and energy into them until I’m sure it is the right thing to offer. I’ve learned it is easier to resist the urge to jump at opportunities than it is to extract myself from the occasional quagmire!

Thanks to Jim Smith, Blarneystone, LLC web design, in business for 18 years

21. Give More Away Sooner and Speak More

Network a lot more in person (the Internet was in its commercial infancy) and hunt for in-person speaking engagements, even if they are not paid.  Good writing alone is not enough to convince clients to hire you. They want to hear you speak on your topic of expertise, and when you help business owners with their problems or concerns, they are more likely to hire you and/or to recommend you to others who hire you. I once helped a business owner write something for his church at no charge, and with another small assignment that paid very little. That led to a long-term writing assignment that exceeded $40,000 in fees. Sow seeds of good will and interest through your networking, speaking, and help. Continue to do this even after your business is successful because it leads to more success.

Thanks to Candace Talmadge, Talmadge Writing Services, writing services, in business for 29 years

22. Been More Focused on This Business

I wouldn’t have started it out of my apt.  I would have “cleared the decks better” by parsing other interests that I was juggling at the same time. I would have learned more about guarding a business (legal, insurance, LLC/Scorp/Inc).  I would not have spent so much money on a business plan.

Thanks to Todd Greene, HeadBlade men’s grooming, in business 12 years

23. Don’t Do It All Yourself

I would have gotten an assistant, accountant and web coder much earlier. I did it all myself for 8 years in my business and have only been hiring assistance for the last two years. I knew it would free up my time to hire people - and what I didn’t know was how much it would free up my mind and let me do better, more powerful work along the way. I’ve been able to create more products and do more thought leadership since getting those little tasks off my plate… and if I’d done it earlier, I can only imagine how amazing things would be.

Thanks to Erin Ferree, BrandStyle Design, branding for small businesses, in business for 10 years

24. Look Before Leaping

What I know now is the huge cost of marketing and promotion required to build demand. We started out expecting to sell retailers and distributors and attend trade shows and travel to customers and sell and spent two years on that path. Then we took a hard right and for past two years we have evolved into an Internet retailer running DRTV (Direct Response TV) infomercials with 85% of our business now direct to the consumer. Social media was never in the business plan either now it’s vital.

What would I do differently knowing what I know now? (1) Keep my old job as long as possible and not leapt off the cliff (but it was a nice feeling) (2) Anticipate 5 years to break-even, and set aside “don’t touch” money.

Do I regret jumping off the cliff? No way. As I tell my wife- don’t look down, keep looking up!

Thanks to Brad Barrett, GrillGrate, LLC, grill surface for better food, in business 5 years

25. Pick More Profitable Partnerships

I would have used deeper discernment in picking partners/vendors/joint ventures, even markets. I picked some doozey’s AND after the fact, saw all the red flags.

Thanks to Shawne Duperon, ShawneTV, media coach and production company, in business 11 years

26. Focus on Face to Face Interactions and New Technology

We learned a lot of lessons in starting our company. For example, we would never produce four-color mailers that are sent to mass prospective clients. We’ve learned that face-to-face interaction and building the business relationship is key. (This was pre-Internet). We also learned that a lot of mailing lists are not updated. This endeavor was expensive and resulted in a poor ROI. When the Internet came around, we certainly would have jumped on this new technology much earlier — developing a website much sooner. It’s an amazing tool to get your message out to the world to sell products and services with visuals. We try to make it much easier for clients to find us rather than we search for a ‘needle in a haystack’ to find prospective clients.

Thanks to Greg Jenkins, Bravo Productions, event planning and production company, in business 25 years

27. Plan For Growth, Be More Discerning in Following Advice

As the owner of a driving school in New York City, my first big regret is that I did not get all other licenses (Motorcycle, Bus, Truck license) earlier in life. I just pass my truck road test Tuesday January 17 2012.  Now I have to wait two more years before I can expand to teach Truck Lessons thanks to NYS requirement. Secondly, I was too naive and trusted many so called experts that convince me how to run my business only to find out they were wrong.  I wasted a lot of money trying ideas that did not work. 3.  In the real estate boom time I should have purchase commercial real estate to accommodate my growing business.  Now it’s impossible to get a loan.  I would have preferred to spend a bit more money to secure a property.

Thanks to Rajendra Hariprashad, Ena’s Driving School, in business for 8 years

28. Leverage People, Build a System

If I knew then what I know now I would have invested in two areas. One, I would have developed other people and brought them into the business sooner. No one is good at everything. Even Michael Jordon had a coach and team mates. One of my friends started a business five years ago and has 700 people working for him today. The more you can leverage other people and create a ladder for them to achieve what they want to then the more successful you will be. Find people you can trust and learn to work effectively with them. My business is much stronger today because I have a strong team.

Secondly, every business needs a system to build a pipeline that is consistent and measurable. I have depended too much in my business on my farming method which is delivering exceptional value to people I meet and eventually they and their friends become clients. I wish I would have understood how to build visibility for my business in my target market like I do today. I am beginning to develop a hybrid model that is both farming and hunting which I believe in the long run will deliver greater growth to my business. My approach that involves taking a prospect from visibility, credibility, and trust is proving to be highly effective. When people work with me they become more than clients they become friends because I am invested in their success. Everyday owning a business is a learning experience. I am very happy it is what I have chosen to pursue in my life.

Thanks to John Paul Engle, Knowledge Capital Consulting in business 10 years

29. Focus on Building Relationships with Customers

When I first started out, like most new veterinarians, my prime concern was my patients and their care. What I failed to fully appreciate was that each patient had an owner (aka client) attached to it! Often I would not address the needs and concerns of the client as well as I was trying to practice medicine and over time, I likely lost clients who, if I had better built my relationship with them, would still be a client today.

Thanks to Dr. James Day, Glendale Animal Hospital, veterinary practice in Glendale, Arizona, in business for 27 years

Bonus Tip:

30. Establish Boundaries With Employees

I would certainly separate “church and state” and I would have been more of a leader than a friend. As an owner and an active President& CEO of a small business- I’m in constant contact with my employees. When hiring new employees, certain requirements and credentials are necessary including: experience, expertise, and industry knowledge. Additionally, I look for multiple interpersonal skills and qualifications. That said, I’ve managed to find and retain wonderful employees who work well and who work well with one another. Formulating good friendships with my employees is nice but maintaining and stepping up as more of a leader at times, has been challenging. Establishing boundaries early on with employees is key and I wish I had known the importance of this, earlier on.

Thanks to Georgette Pascale, Pascale Communications, LLC. a healthcare specific PR firm, in business 7 years

Want to get more inexpensive and practical small business marketing ideas, grab a free e-book called “Build Buzz for Your Biz, 23 Creative and Inexpensive Marketing Strategies That Will Get You Noticed” at http://23kazoos.com.

Wendy Kenney is the bestselling author of How to Build Buzz for Your Business available on Amazon.com, and has been featured in the Wall Street Journal, USA Today, and Newsday.

Today, I spent a few moments taking deep breaths, and I am getting back on track with following my own advice to schedule, plan, and manage better.  I skipped yoga this week — shhhh (but I am back on track so that is what matters).

In the middle of my extremely frenzied week, I have been pondering a particular question….Is bartering among small business good or bad or maybe a bit of both?  Don’t ask me….I am asking you, StartUpNation.

A few months ago, I commented on a great post on bartering that I was a big fan of the idea…..After all, what better a way for up and coming small businesses to help one another out when cash is limited?  Of course, when bartering, terms have to be arranged and the barter arrangement has to be mutually beneficial.

I have a few barter arrangements set up with other small business ventures, and they seem to be doing pretty well.  BUT, what happens when the relationship outgrows the barter?  Often there comes a time when the needs of one of the parties involved are larger than the barter, and the relationship has to move towards a fee for service model.  Does the former barter relationship affect the new relationship positively or negatively?

It is one thing to work out an amazing barter business deal where I give you something that you need and you give me something in return, but at some point, one person usually needs more.  When that point happens, if you are on good terms with the other party, you would want to continue to do business with them.  After all, presumably they were involved in your business since the early stages and already know vital information.  This relieves you of an orientation period with a new vendor.

Although something strikes me at this juncture….this is where the barter could possibly come back to bite you.  What if subconsciously the person inflates their estimate or price to overcompensate for the time that they bartered with you?  On the flip side, maybe you think the estimate is too high because you are not the fee for service end of the deal?  Does resentment build from bartering?

What can keep a barter relationship on the straight and narrow?  Can a business relationship that began through bartering move on to a fee for services rendered relationship?

I admit -  I have some thoughts, but not the answers.  Let me know what your thoughts are - Rachel

Keep checking in with me at http://backngroovemom.com where I have some great changes, additions, and surprises coming (hence the frenzied week).

Recently, I attended a book signing for Robert Kiyosaki’s new, best-selling book, “Unfair Advantage – What Schools will NEVER Teach You About Money.” The author of the number one personal finance book of all time, “Rich Dad Poor Dad,” investor, entrepreneur, educator, and co-host of the new radio show, “What Does It Mean to You?”, agreed to share some of his tips with the StartupNation audience.

Here’s what Robert had to say:

In “Unfair Advantage,” you mention that schools don’t teach us about money. Why not?

I believe the reason for this goes back to 1904 when John D. Rockefeller took over the education system in the United States with the General Education Board. And ever since then, the rich have controlled what is taught in our schools. Rockefeller’s purpose, it seems, was to find the brightest and the smartest people who had no financial education. Then, they would need a job and work for him. That’s my opinion.

Why is it important for people to read “Unfair Advantage”?

If you read Rich Dad Poor Dad, it was my story when I was nine years old. It’s very simply written about my poor dad, who was the head of education for the State of Hawaii with a Ph.D., and my rich dad, who was my best friend’s father. Unfair Advantage is me in my sixties now. I’m doing exactly the same thing I was doing when I was nine, but today, I’m doing it in the millions.

Decades have passed, but my financial strategies have never changed. In Rich Dad Poor Dad, which came out in 1997, I said that your house is not an asset. And rule #1 from my rich dad was that the rich don’t work for money. 

Most people go to school to get a job and spend their lives working for money. As long as you’re physically working for money, you’ll pay more taxes than guys like me. Unfair Advantage is basically Rich Dad graduate school using 2010 examples.

With the high unemployment rates, many people want to start their own businesses. Other than read your book, “Before You Quit Your Job,” what advice do you have for these people?

“Before You Quit Your Job” covered what you should know before you quit your job because there are basically eight integrities to a business. And the reason nine out of ten businesses fail is because they may be good at seven of the eight, but it is number eight that gets you. A successful business needs all eight of the integrities of a business strong and working together.

Most people leave school too highly specialized. They don’t know anything about business, accounting, legal, or cash flow. And that’s where they get crushed. 

My message to people is this… if you’re following the old advice of the middle class which is go to school, get a high-paying job, work hard, save money, get out of debt, and invest in a portfolio of stocks, bonds and mutual funds, you’re being crushed.

The reason you want to be an entrepreneur is to get out of the middle class. The middle class is being wiped out right now. 

Is it a good time to start a business?

It’s not timing that’s the issue, it’s how you prepare. The fact is that it’s not that hard to be an entrepreneur. My next door neighbor’s little girl comes over, and she polishes shoes. She’s an entrepreneur. 

The trouble is that most people go to school and look for a high-paying job. The problem with getting a high-paying job is taxes. If you work hard and make more money, you move into a higher tax bracket.

That’s not financially intelligent, and they’ll never teach you that in school. To me, that’s stupid. For the middle class, they are going to pay more taxes and struggle with rising inflation. How do you get ahead doing that?

How do business owners put the Unfair Advantage to work for them?

Unfair Advantage is about capitalism. And believe it or not, the tax laws are written for capitalists. The tax laws are telling you what to do. This is what the government wants you to do – provide housing and be an entrepreneur to create jobs. And for that, the government will give you huge tax breaks.

Looking back at your success as an entrepreneur, what would you have done differently to achieve a higher level of success faster?

I can’t say I would’ve done anything differently because every mistake I’ve made was someone showing me how stupid I was. The more mistakes I made, the more stupid I found out I was, and the smarter I became.

That’s why most people who do well in school are not good entrepreneurs. They’ve been programmed to not make mistakes… so I can only encourage people to be stupid and learn from their mistakes. 

It’s called “Unfair Advantage #5”, the law of compensation. The reason I make so much money today is because I’ve made so many mistakes…. so start making mistakes. Mistakes are very good for entrepreneurs and very bad for accountants, lawyers and brain surgeons. You don’t want a brain surgeon making a mistake! It’s a different world for entrepreneurs.

Many people are in a really bad situation now. They are unemployed with huge credit card debt and are on the brink of losing their home and claiming bankruptcy. Plus, many of them are over 40. Is there hope for these people, and what do you suggest they do first to change their financial situation for the better?

They probably need to ask themselves why they got themselves into such a precarious position. And second, I’ve been there. I’ve lost. The most depressing day of my life was when they repossessed my Harley Davidson. I’ve had the IRS after me because I couldn’t pay my taxes. But all of those were fantastic learning experiences that made me smarter and wiser.

I think the best thing that happened to me was to lose my business at age 29. I’m glad I didn’t lose it at 49. It took me six years to dig myself out of nearly a million dollars of debt. I didn’t declare bankruptcy. I just paid everybody back. I rebuilt my business, and that’s when I got smarter, and I’m still getting smarter every day.

Today, I can make that money back faster. And that’s the attitude an entrepreneur has to have. Mistakes are a learning experience. 

There are many financial scams out there. How do people find credible information and advisors to help you and avoid being ripped off?

It’s the same as finding the perfect husband or wife. You don’t know until after you get married! Cut your losses early, and figure out if you are the cause of the problem.

What is the best piece of advice you ever received and how did you use that advice to succeed?

I have a B.S. degree, and I’ve never used anything I’ve learned at school. When I found out I was not really good at school, I got through by cooperating. I always sat next to the smartest people in school. In the real world, that’s called cheating. Today, it’s called collaboration.

I’m extremely lucky to have very bright partners. That’s one of the most important things you can have.

You’ve got to be careful who you hang around with. I used to have a lot of friends, but they didn’t continue on as partners. They did not keep expanding their education. They were complacent. And today, I can’t even talk to them as we’ve become such different people. I kept moving on. I kept getting educated and growing. 

And in 2009, one of the best things happened. One of the most influential financial groups in our hometown invited Kim (my wife) and me to be business partners. And that’s how I knew I was doing o.k. You know you are making progress because your friends change.

I’m sure you’ve heard people say, “Do what you love.” But I think you must do what you must do. A lot of people cannot do this. As an entrepreneur, I guide my business and my activities to get paid the most money and pay the least taxes.

What are your favorite media venues to get financial information you can use to enhance your financial education?

I read “The Economist” and other financial magazines so I’m abreast of what’s going on. I’m always taking seminars and classes.

What you’re going through now as an entrepreneur is incredible. That struggle you’re going through is one of the best things you can go through to learn. But don’t stop getting educated.

Get mentors and advisors and attend classes. Choose your teachers carefully, and make sure they have real-world experience. If you’re not changing, then you’re not growing.

Are there any additional tips you would like to provide specifically to the entrepreneurs out there trying to start and grow their businesses?

First, congratulations for the struggle. If you’re already struggling, you’ve taken the first step. You’ve got to be careful of your teachers, your partners and your friends. And you’ve got to do your part. If you’re stupid, people who are smart are not going to want to hang out with you.

You can’t stay still because the world is going too fast today. If you’ve already started, congratulations, but don’t stop now!

Thanks so much for your great words of wisdom Robert! For more tips to succeed, please check out “Unfair Advantage” and all of the information at www.richdad.com.

And if you need help with your SEO copywriting and PR efforts, please let me know here or at www.rembrandtwrites.com!

I am big on the importance of finding a mentor and creating a support network as a mompreneur, entrepreneur, solopreneur, or whatever-preneur.  I do not mean the same type of support network that we have with our close friends and family, but rather a group of individuals or peers that share ideas with one another in a mutually beneficial way (Of course, I do not mean a cellular network).  I think when looking for a specific mentor, that person should have some similar circumstances like you, as in be the same whatever-preneur you are or work in the same vertical as you.  On the other hand, your network is different.  Creating a network is similar to when you set yourself up for success in those college group projects so many years ago.  If you surround yourself with others that hold different strengths, you know that you can all come together and make headway.

Mastermind groups, or peer networks that collectively brainstorm, share support, and hold one another accountable are becoming increasingly popular.  Peer accountability is a great way to create checks and balances for yourself and gain important information. These networks or mastermind groups are often officially created or formed, but also sometimes, they develop organically.  Take for example, right here on StartUpNation, a few of the women entrepreneurs and myself formed a blogging circle.  What this means is that we support one another’s blogs by reading and commenting.  Over the last few months, this blogging group organically transformed into a bit more.  We now follow one another on twitter, tweet each other’s links, and we increasingly turn to one another for specific questions or suggestions.  We are a group of women entrepreneurs, who are all in different categories and stages of small business, yet we connect in some way and provide various pieces of useful information to one another.  We have not officially called ourselves a mastermind group, but we certainly have turned into an amazing peer network.

Another crucial part of a small business network is FEEDBACK.  It does not matter if you are developing and testing a product, setting up a new website, rolling out a services plan, or any other small business initiative, you need to get feedback.  A peer network provides you with OBJECTIVE feedback.  Of course, we all seek out opinions from our friends and family, but it is our whatever-preneur peers that are really going to give solid feedback.  Yet another example from right here on StartUpNation, I met a fabulous woman in biz named Geraldine here.  Geraldine was looking for women testers for her body scrubs.  I decided to help Geraldine out because I knew that at some point I was going to need testers.  Paying it forward, I signed up to test a few scrubs for Geraldine.  It turned out to be a win-win for both of us because I provided Geraldine with OBJECTIVE FEEDBACK, and as it turns out, in an extremely saturated market, Geraldine’s Serenity Lure scrubs are amazing (so I had a fabulous user experience).

Finding a network can either be orchestrated or cultivated naturally, and either way, this network can provide awesome information like feedback.  As for the mentor part, that is much more personal, and I think the relationship takes time to grow and must have some type of natural connection.  I hold a few women in a mentor-capacity, and I think as particular sides of my biz develop, I will think of different women as mentors in various aspects.  Do not force finding a mentor, but seek out relationships, get to know other women entrepreneurs, and as time evolves, you will find your mentor and see how mentor relationships grow into a very trustworthy phenomenon.

Do you support other women entrepreneurs? In a formal network capacity or something that grew over time?  Please share your experiences, and also check out http://backngroovemom.com to see who I hold up in high regard in my network.

The program brings together people from both the private and public sectors. According to the White House, leaders from the most innovative corporations, universities, and foundations will partner with government to help increase the number of new business start ups.

The program mainly focuses on expanding new businesses related to healthcare/medicine, clean energy, advanced manufacturing, information technology.

As entrepreneur myself, I applaud the President’s effort. But not being involved in any of those industries, I’m a little disappointed. Why not support all entrepreneurs across all industries? Where’s the initiative for women or minority entrepreneurs?

According to the Washington Post, it’s businesses owned by women and minorities that are going to fuel job growth in the coming years. Recent Census Bureau figures show that the number of women and minorities owned businesses is growing. As of 2007, women owned almost one third of all businesses in America, and minorities owned one in five.
Here’s some key statistics from the Center for Women’s Business Research.

• 10.1 million firms are owned by women (50% or more), employing more than 13 million people, and generating $1.9 trillion in sales as of 2008.

• Three quarters of all women-owned businesses are majority owned by women (51% or more), for a total of 7.2 million firms, employing 7.3 million people, and generating $1.1 trillion in sales.
• Women-owned firms (50% or more) account for 40% of all privately held firms.

Clearly women entrepreneurs and minorities have a significant impact on our economy.
In order to be a true Startup “America” program, I recommend that the President Obama include all businesses types in this initiative. And here is what I suggest be included as far as benefits.

1. Small business grants and loans for businesses owners who have shown consistency, promise and drive, or who have already made a significant impact in their community.
2. Develop mentorship and education programs to assist small business owners in the crucial startup phase.
3. Scholarship: Reward small business owners for investment in their communities by providing scholarships for extended learning.
4. Legislation: Pass legislation that is favorable to small businesses owners, opening doors up for business ownership.
5. Provide tax credits for starting a small business and for small business ownership.

These are just a few of my thoughts about what the White House could do to have a “Startup America” program that supports all startup business owners. Not just those who own companies in certain industries.

Small business is the backbone of America, and its small business that is bringing us out of the depths of recession. Let’s support all startups in America Mr. President, it just makes sense.

What’s a startup family? Well, technically I just made it up, so it doesn’t really have a definition, but to me a startup family is a group of entrepreneurs you can go to at any time about any problem, no matter where you are in your career. For me, this group consists of former business partners, CEOs I have worked with as a consultant, advisors, strategic partners and more. These are the people you can go to when you are trying to raise money for your startup and need to get connected to investors, when you’ve hit a wall with the progress of your company and need some input or even when your circumstances have changed (as they often do) and you decide it’s time for you to find a new startup to work on or even a side job to help pay the bills. Your startup family will point you in the right direction.

This may just sound like “networking”, but it’s really much deeper than that. These people go above and beyond to help you out on more than one occasion, often times without any direct incentive (financially or otherwise). In return, you do the same for them, doing anything you can to help them achieve their goals, even if it means having to take important time away from your own work at a critical time in your business. While all of this can take quite a bit of time, I have found it to be the #1 asset I have accumulated during my career to date.

How to Build Your Startup Family

Especially if you’re starting from scratch, it can take years to build, but perhaps not as many years as you might think. To me there are a handful of main steps to follow to make this happen:

1) Seize the opportunity: How many entrepreneurs or startup professionals have you met in your lifetime? If you’re running a new company and are going about it the right way, chances are that number is approximately “a lot”. Each one of these is a major opportunity to build a relationship that will benefit both of you for the rest of your lives, regardless of what business opportunities exist between the two of you along the way. Most people don’t really take advantage of these opportunities, and instead only look at the relationship at face value based on how the relationship can influence what’s happening in their business today.

2) Leave a lasting impression: Chances are (especially if you’re a young entrepreneur), you’re not going to impress fellow entrepreneurs/CEOs with a list of accomplishments. You need to show very clearly that you are passionate about what you’re doing, that you have the determination needed to get it done, and above all else, that you really respect them and the time they are spending with you. Be genuine and good things will happen.

3) Nurture the relationship: This is where most people fall short. As you are continuing along your path, you need to keep track of all the relationships you have started and keep the ball rolling. Send brief updates about your progress to people you have met, and ask them if there is anything you can do to help them. Show an interest in their goals, not just your own. Don’t be afraid to ask for help when you need it, but choose your battles. Everyone is as busy as you are (if not more so), and you want to show them you are considerate of their time.

4) Make introduction suggestions: This is a big one for me. Most people won’t ask for an introduction to someone unless they have a very specific purpose for doing so. However, if you are able to see value in two of your contacts meeting each other, suggest it to both of them. If they bite, make the intro. They won’t expect anything specific to come from meeting your contact, but especially if they end up making a life-long friend or someone who helps them on a business deal, they’ll never forget that you were the one that selflessly made that happen for them.

5) Leave things on good terms: Sometimes things just don’t work out like you thought they would. When this happens, some people can experience a certain level of frustration and potentially hurt feelings over the situation. It’s your job to go above and beyond to try and set things right and leave the relationship on good terms. It’s not always a guarantee that you can make this happen, but most people will at least appreciate your sincerity and the effort you put in to trying to make things right between you.

To close this out, I’d like to thank all of the people who continue to help me along my path as an entrepreneur. If you’re reading this and think it’s at all possible that I might consider you part of my startup family, you’re right. You have helped me in more ways than you know, so please don’t forget to ask me for help when you need it. Succeeding together is what it’s all about.

About the author

Corey Kossack is a Managing Partner at Game Change Ventures, focusing on partnering and consulting with startups in the areas of social media, consumer Internet, e-commerce and mobile technology. Corey is also a Partner at Game Change Ventures’ first Internet startup, Addoway, an online marketplace for fashion, collectibles and more that helps you buy and sell with your friends and the merchants they trust. Formerly Corey was one of the world’s largest retailers on eBay, built a $1M company from scratch at age 23, has led multiple startups and received numerous awards for his entrepreneurial achievements.

You can choose one of six options: Sole Proprietorship, General Partnership, Limited Partnership, Limited Liability Company, C Corporation or S Corporation. You will find that each of these differ to the degree of liability that you, as an individual will have and also how each is subject to taxes.

• A Sole Proprietorship means that you, and you alone, own the company and are responsible for both its assets and its liabilities. This is the most common and by far the simplest of structures, but as a sole proprietor, you can be held personally liable for the debts and financial obligations of the company. This risk also extends to any monetary obligations or penalties gained as the result of an employee of yours. Business financing will be much harder to come by and will also have more risk attached, as investors will not usually invest in sole proprietorships. Both a good and bad point, depending upon how you feel about it, is that you will be completely in charge. You will have the responsibility for making every type of business decision there is, from inventory, to suppliers, to employees, to the type of toilet paper you put in the restroom and if it will roll over or under. Some of the pros for having a sole proprietorship include the fact that if you decide to sell or transfer, you don’t have to get anyone else’s approval. There are few legal costs associated with forming a sole proprietorship and there are few formal business requirements. You also will not be responsible for corporate tax payments, but if this is the only reason that you are considering a sole proprietorship, you might want to think again.

• A General Partnership is when you contract with one or more other people in order to run the business with equal responsibilities and liabilities. These can be operative or financial and must be spelled out in regard to who has what responsibility and how much financial liability each partner has. These are formed by individuals and are taxed much the same as a sole proprietorship is taxed. Some of the advantages include the fact that business financing is more readily available as you can pool your financial resources, though don’t plan on looking to investors for business financing. General Partnerships are also situations that investors go into very cautiously. Finding business financing through an investor may be difficult, if not impossible. You also have others whose expertise and strengths you can depend upon to provide ideas and take on projects that may be beyond your own scope. A General Partnership comes with limited startup costs and there are few formalities to go through in order to form one. Some of the disadvantages are the difference of opinions that can occur. Partnerships can be fraught with discord as the parties have differing visions or goals. Partners are also personally liable for the business’s debts and financial liabilities, something I have counseled against over and over. It is also a situation where it is “One for all and all for one”. In other words, if one of you makes a business blunder or even breaks the law, all of you can be held liable.

• A Limited Partnership can be formed to bring in more expertise or skills or even money, but in this situation there must be at least one general partner that shares equally in the business’s financial obligations and responsibilities. Limited partners are often silent partners to the extent that they are not necessarily involved in the day-to-day running of the business, but may have other interest, financially or otherwise, and they will share in the profits of the business. Various reports will have to be filed with the Secretary of State for your particular state and each state has laws on the books that regulate the responsibilities and obligations of the partners in this type of business. Again, additional business financing may be difficult to come by, as investors are also cautious of this type of business structure, but with the partners in place, additional business financing may not be necessary and you are more likely to attract investors to a Limited Partnership than to a Sole Proprietorship or General Partnership. The reason for this is that the general partner in this relationship can be a corporation or LLC, which can be attractive as far as mitigating financial liability. The con is that the corporation or LLC can also be a part of and have a vote in the major decisions that affect the partnership. Your biggest problem may be in finding the general partner required, as they assume personal liability. Limited partners, on the other hand, can leave the business or be replaced without having to dissolve the Limited Partnership.

• A C Corporation is a traditional business structure that leaves you with little or no personal financial liability. It is established as a unique business entity and is a for-profit, state-incorporated business. Fees are paid and numerous legal documents filed, to include the Articles of Corporation. Unlike the above structures, business taxes are filed separately from personal taxes with the IRS and corporate taxes are paid on a quarterly, bi-annual or annual basis. Any debt the corporation incurs will not be the personal responsibility of the owner or owners. Business financing can be obtained by the corporation, not by the individual, and the corporation can own property, enter into business deals or even file law suits independently of the owners or shareholders. A big plus in having a C Corporation business structure is that the corporation can take advantage of corporate benefit health plans and group life insurance plans, up to a specified amount per employee. Retirement options are often better than those offered by non-corporate plans. The biggest downside is the double taxation that takes place. Besides paying corporate income taxes, the dividends paid to shareholders are also taxed at the applicable tax rate. Though the corporate tax rate can be higher, the initial taxes can be much lower. The first $50,000.00 is taxed at a rate of 15%, while a sole proprietor will be paying 28% on his or her personal income tax from the first dollar.

• The S Corporation, which happens to be my favorite business structure option, is much the same as the C Corp in reference to liabilities, but an S Corp is not double taxed. An S Corporation is only taxed on the personal level, which for the first $50,000.00 may be higher, but in the long run will be lower than what a C Corp will ultimately pay. It is also really easy to convert from an S Corp to a C Corp if your business grows to such an extent that you wish to change your business structure. Most of the paperwork will already be in place and the financials will be well-documented, so converting from one to the other is fairly easy and pain-free. An S Corp can have no more than 100 shareholders, for example, which would be one reason to convert to a C Corp. An S Corp also has residency requirements that a C Corp will not, but as long as you meet the criteria, I would definitely look at structuring your business as an S Corporation as opposed to any other. Business financing is usually the easiest to obtain when you are an S Corp, though both the S and C Corps commonly receive investor financing. The biggest difference between an S Corp and a C Corp is in the taxation and the additional risks associated with the higher taxation.

• A Limited Liability Company, or LLC, is a relatively new business structure that basically incorporates the advantages of a Sole Proprietorship with that of a Corporation. Basically, it operates as a separate legal business entity, but without having to incorporate and be subject to the rules, regulations and taxation of a Corporation. A fairly simple operating agreement is drawn up and agreed upon by the members, and then filed with the state, but shareholders are not required and the formalities that a corporation must adhere to are not upheld in the case of an LLC. Most LLCs must have two or more members, but some states are doing away with that requirement and allowing a single member to form an LLC. This is kind of a “you can have your cake and eat it too” form of business structure, and though I personally don’t care for an LLC, I can appreciate the advantages of an LLC, such as the personal liability protection and the more relaxed requirements when it comes to paperwork. Business financing is more readily available than for an SP, GP or LP, but not as easy to come by as if you had a Corporation. Some investors though are becoming much more comfortable with this newest form of business structure, just making sure that the structure of the LLC is designed to provide the investor with a specified amount of control.

So, do your research. I definitely suggest obtaining the services of either a business attorney or a financial advisor, especially if this is your first look at business structure and how it could possibly affect your business financing. And, I’d like to remind you that I always recommend separating your business finances from your personal finances; more than ever in today’s economy, well-informed decisions and erring on the side of caution will give you some form of financial protection.

One in particular is Microsoft’s launch of its WebsiteSpark program.  The program is geared toward small web design firms of ten or less employees and allows them to tap into the full resources of Microsoft for a mere $100 exit fee after program completion.  Website Spark not only puts you in touch with Microsoft’s network of partners and experts for training and sales leads, but it also gives you the opportunity to showcase your work in their marketing and networking events.  The real beauty of the program, however, is the free access and training for their full-featured software such as Expression, Silverlight, SQL Server, Windows Server, and Visual Studio.  That alone is a goldmine to any cash deprived start-up.

While Microsoft’s new effort certainly isn’t completely altruistic, it is well received.  They are looking to build brand loyalty that will translate into lifelong Microsoft customers and who could blame them.  I commend their efforts supporting the web design and development community and I can’t wait to see how the WebsiteSpark program graduates fair in the real world.  A new era of David and Goliath has been born.

(click to watch video)

Have your heard of any other tales of big business’ helping small business? If so, I’d love to hear them!  Just comment below or email me heather@glamajama.com

“you don’t know what you don’t know.”

Those past experiences are fresh on my mind as I find myself preaching about my golden rule on nearly a daily basis. As I consult with fellow entrepreneurs teaching them how to replicate my successes with branding, social media integration, and celebrity placements, I am heartsick. I hear countless stories of companies who have learned this costly lesson too late in the game. The “killer product launch” at a tradeshow that cost $30k that no one showed up for because the owner didn’t know how to contact the media or set appointments with key buyers. The “grand opening” in small town America that didn’t even make the neighborhood newsletter. Or the Mom that licensed her invention only to find that the company shelved the product and she had unwittingly relinquished her intellectual and distribution rights. I could go on. Knowing all of this, I can’t stress my golden rule enough. Please don’t make these same mistakes.

I know it might seem like an extra check to write when your bank account is already maxed out, but it will end up saving you money and heartache in the end. The money is there, you just need to re-allocate it. Instead of focusing your efforts on making a “big splash”, maybe focus on ensuring a return on investment? A solid marketing plan to leverage your event/news/product launch?  Or making sure all the legal and accounting issues are resolved so you actually get to keep your money?  Seek the help of professionals who have been there, done that.  After all, “you don’t know what you don’t know.”

Need help with your business? Contact me here: http://su.pr/2GXnYX