Mistake Number 3 - Failure to Set Realistic Expectations

Hey team: Please enjoy this outtake from "The Top Five Minority Business Mistakes and How to Avoid Them" which I've been offering as a FREE resource when you join my mailing list on my Minority Business Coach Fan Page on Facebook. Just sign up and I'll send you the full report. Knowledge is learning from your mistakes. Wisdom is learning from other people's mistakes. So be wise and grab your copy today on Facebook - Minority Business Coach. Now read on:

One of the biggest mistakes made by small and minority businesses is failing to set realistic expectations about attracting large corporations as clients. I have been in minority business development circles for many years. There is a consistent complaint from some minority businesses that the system is broke and that it's virtually impossible to get business from large corporations.

First, it is a spiritual principle that you will have what you say – or what you expect. Thus, if you say getting business is impossible then it is – you will receive according to your belief. But that is a topic for another publication. On a business level, I would like to set a few things straight. It is true that our nation has a long way to go for minority businesses to get their fair share of the national business opportunity pie. There is no doubt that it is becoming increasingly harder for small and minority businesses to compete. The frustration felt by many small businesses is real.

Nevertheless, there are strategies that have worked for the minority businesses that are winning this battle and they will work for your business as well. As difficult as the road to obtaining that large contract may seem, there is a pathway and you can learn how to access it. However, as suggested above, much of this begins in your mind. Armed with the correct outlook, you will position yourself for success and it will eventually come to you.

First, I would encourage small and minority businesses to take the long view on obtaining corporate business. Small businesses often overlook medium sized companies and even fellow small and minority businesses in order to camp out at the corporate tent. In my experience, it is much easier to attract several small or medium-sized clients than one corporate giant.

Minority businesses should continue to knock at the corporate door, but simultaneously, they should act as if they will never receive a corporate contract and focus their energies on more accessible targets. This is a matter of placing a positive spin on the theory of cognitive dissonance – keeping two seemingly different ideas in mind. On the one hand, you continue to work for that corporate contract. But on the other, you work as if you will never receive one and develop your business, in spite of, corporate contracts.

This serves many purposes. When the time arrives for you to receive that large corporate contract, you would have been well-prepared to handle the business having taken the time to build out your infrastructure and services with smaller clients. Second, big corporations want to do business with companies with a track record. The long view will allow you to develop experience, references and capacity. You will also develop self-confidence and grit along the way.

This was true of my business. It took me about one year to develop my first large, corporate client and that was miraculously quick! But before I developed that client, I built a sustainable business on several small and mid-sized companies. Having a well-run business in place, I could then play the waiting game of developing the larger clients. Once I obtained the first corporate client, their credibility and endorsement of my services enabled me to win many more. Today my firm services many world-class corporations.

Note however, that the first client and the first endorsement came because of outstanding service delivery and results. Assuming that you can deliver on that in your area of business, then you can have those corporate clients in due time. Along the way, develop your business, expertise and testimonials and be ready for the big break. Your realistic expectations will make you a better business person. It will keep you hungry, yet never despairing - not having obtained, but always learning; always sharpening your saw.

In truth, the worst thing that could happen is obtaining a corporate contract but not being ready for it. If you blow that opportunity it could be a long time in getting another – word travels somehow. I’ve seen very tiny minority companies attempting to do business with gigantic, global conglomerates. Not that this is impossible. Remember how I began this article – anything is possible. Also, by following the advice given in the full-blown Special Report from which this piece is excerpted, it is quite likely that even a micro firm can do business with a giant. I did it when my business was small and so can you.

The point is that in some instances, small business owners are unrealistic about the needs of the conglomerate that it can really solve and its own capacity to meet that company’s global demands. These are obstacles that minority businesses have to realistically face with real solutions, like filling a niche market or by teaming up with another small company to build capacity. The problem is that some minority businesses fail to adopt these strategies and in so doing, they fail to meet their goals and repeat a cycle of frustration.

Thus, my advice to minority businesses is: (1) Build your business in spite of large companies (2) Prepare while you wait for the large contract (3) Adopt the long view on your hopes of doing business with large corporations (4) Be ready to ACT when opportunity comes knocking (which it will, eventually) and finally (5) Keep a positive outlook! Your break is around the bend. Never give up. In the words of Sir Winston Churchill, "Never, never, never, never."

Your friend, The Coach



Photo from trybna.com.

Cash For Your Business

Is a Business Advance a good idea for your company?

If you own a small business, then you have probably run into a very common situation. If you were to ask all sorts of small business owners around the country, they would probably tell you that being saddled with a cash flow problem is a part of doing business in this way. Simply put, you are not a huge corporation and you aren't going to have tens or hundreds of thousands of dollars sitting around for use in business. That is alright, though, because a cash flow problem doesn't have to completely shut your business down. In fact, if you are smart, you can get a business advance and keep right on moving.

The problem for many business owners is quite simple. They have opportunities that arise at the wrong time. It is a simple matter of timing and it's something that they can't control. When you are in small business, you often have to balance out your books and you have to send money out in order to bring in a profit. This might mean that you need to buy merchandise or you have to pay for marketing. Whatever your cost happens to be, it is a very real cost in many instances. If you don't have money at one point in the month to do it, then you can miss out on a chance to make very real money for your business.

A business advance loan will help you hit on those opportunities. A lack of cash flow is a very small problem in the long run. When you take a hard look at the big picture, you will find that your business is on solid ground and that your ability to pay off one of these loans is evident. Any lender would be smart to help you in this situation, because they stand to gain a great deal from fostering that relationship. What does this mean for smart business owners? It means that you should absolutely never let a chance go to waste because you didn't have the cash flow to do it. With a business advance loan, you can make the purchases and keep your business going forward.

The costs associated with a business advance loan are relatively low. When you compare those costs with the money that you can bring in from these loans, you will find that it's a no brainer situation most of the time. In most instances, the money you will bring in from getting the advance is much greater than what the lender will charge you. This means that business advance loans make sense for most small business owners.

What is a Business Advance?

Have you ever needed money to help support your business but have been denied in the past? What if we told you that continuing your own business with a business advance loan was as easy as paying back your loan with future credit card transactions on your business sales, purchases, or payments. What if I told you there is a place that will say yes when others have said no? Would you believe me? What if I told you that with all of this the chance to be approved can be possible?

What is a business advance? A business advance, also known as merchant cash advance is a contract between a lender and a current business which has been running for at least a year and a half, where the business holder takes out a loan on boosting a business in return agreeing to pay the loan holder a percentage of every credit card transaction sale traditionally ending after one year’s time. The payments are not paid directly from the business owner but actually automatically transacted from the company which approves and processes each transaction.

What is the benefit of using a cash advance for a business advance in comparison to a traditional loan company?

• The first benefit of business advance in comparison to a traditional lender is that after the actual statement of approvable the cash is available to be given within 24 hours.

• Through a traditional lender you have only a specific amount of time to slowly typically monthly to pay back your owed loan, while risking late fees, transaction fees, hidden fees, and much more. While with a cash advance you do not simply pay monthly which means you are not paying out of pocket if your business does not jump into action right away.

• With a traditional loan you risk second mortgages, loss of assets, risk homelessness if business fails, along with possible bankruptcy if no collateral was taken. With a merchant cash advance your assets are safer, your home stability is safe, and you are not risking bad credit or bankruptcy.

• With a traditional lender a large percentage of loan takers are actually denied before they get a chance to save a business, with business advance those who were told no, are told yes.

What is the catch with a business advance?

The catch is there is no catch; you get a high chance of successfully continuing your business, where only a fraction of your sales income is taken for a short period of time, enabling you to make more money than with a normal monthly charged loan. This will enable you to keep more of your money in your business.

RESTRICTED INDUSTRIES

• Adult Entertainment / Materials
• Accountants & Attorneys
• Auto / Truck Dealerships
• Adult & Kid Gyms / Family Activity Centers
• Construction Related Industries
• Gambling Establishments
• Home-based businesses (Excluding Internet Retailers)
• Manufacturing (Except Light Manufacturing that accept credit cards)
• Marinas / Boat dealers
• Mortgage Brokers / Real Estate
• State & Government Agencies

For more information on obtaining a business advance loan please contact:

Yolanda English
YVE & Associates, Inc.
3921 SW 186th Ave
Miramar, FL 33029
O. 954.442.2919
F. 954.905.4316
C. 954.673.7729
info@YolandaEnglish.com
www.YolandaEnglish.com
www.YourFinancialFitnessCoach.com
http://www.linkedin.com/in/yolandaenglish
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GROWING the money you have, LOCATING the money you need!

Need Equipment Financing? http://www.YolandaEnglish.com/files/23763/YVELeaseapp.pdf
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Securities offered by H. Beck Inc. Member FINRA & SIPC ~ H. Beck, Inc. and YVE and Associates, Inc are not affiliated.

The information presented here is for informational purposes only. This blog post is not an endorsement or an offer for sale of any security or financial product.

How To Work a Minority Business Trade Show (Part II) - An MBE Perspective

Trade shows can be massive and overwhelming to even the most ardent marketer. I’ve been to several trade shows which seem like a world without end. In such an environment, it is quite easy to lose your way. As I shared in the previous post, to be effective, you need to plan your objectives and goals for the show, including targeting your audience and using your time wisely. Below are three additional strategies that will make your trade show experience pay dividends.

Network, Network, Network

This piece of advice seems elementary. After all, isn’t networking is a huge part of why we attend trade shows in the first place? However, in a trade show environment, even your networking must be strategic. I’ve been in many situations where, if you are not careful, you can get weighed down with everyone else’s message at the risk of getting out your own.

You could find your pockets stuffed with business cards and brochures from plumbers, architects, accountants, etc – all wonderful people, but not your intended targets. Thus, you must vigilantly protect your time and stick with your plan to reach your intended targets. As you network, make a quick assessment of the contact and file them away accordingly. Later, after the show, you can further organize for follow up.

Also consider networking with the experts at the workshops that generally accompany the trade shows. These folks are experts for a reason. Many times they are connected within an organization or company that you are targeting and you can have one on one time or an entree into the company through this contact. Experts are usually willing to share their information and contacts. They are also typically used to being in such an environment and so they are open to shepherding someone who approaches them in a direct and professional way.

Reconnect With Existing Clients

Another great usage of trade shows is to reconnect with existing clients. If you have clients that are attending, make an appointment to meet with that client at the show or over lunch or dinner. This is a great time to have some relaxed time to catch up with your client, converse about the relationship, obtain feedback and to make any improvement or adjustments necessary.

It is also a time to gently up-sell that client for additional services or increased business without a sales routine. One of the greatest sources for business, either through expansion or referrals, is your existing clients. For numerous reasons, an existing client is far easier to work with than a prospect. Spend time with your existing client to seek ways to grow your business or at the very least, to say thanks. It is amazing how something as simple as a thank you will cause your client to go to bat for you.

Follow Up!

Without this last piece of the trade show puzzle, your efforts and expenditures are absolutely in vain! We know that the cost in time, money and opportunities is extremely high and so you must have a mechanism for following up after the show. I have used trade shows very productively in the past and continue to use them as a marketing strategy. However, it is only effective because I make sure that after the show, all of my contacts are organized, placed in a database or spreadsheet and scheduled for timely follow ups. Without following up, your contacts are meaningless and grow cold very quickly.

Because I usually display at trade shows, I am often approached by small business owners who are interested in providing services to my firm. I listen to the marketing pitch, receive the materials and then I always tell the person to follow up with a call or an email. We all know where most of those marketing brochures wind up after the show and so it’s just a lot more effective to receive an actual phone call or an email.

In dozens of shows I’ve attended over a career lasting almost two decades, I can count on my left hand the amount of people who actually called, emailed or followed up with any other form of correspondence. It is my experience that the amount of follow up that takes place after the trade show is very low. Perhaps the small business owners return to the “soup” so to speak and in a short time, the trade show is a distant memory - at least until next year when the cycle of spending time and money with little return on investment renews itself.

Approached in this manner, trade shows are a little more than a social event. That can be an enjoyable aspect of the show and need not be ignored. It is always a pleasure to get reconnected with colleagues at these events, but I always remind myself of my purpose in being there. This keeps my substantial efforts well-spent and ultimately monetized. I would encourage you to adopt these six steps for your next trade show and watch your client base grow.

Drop me a line about how this strategy is working for you:wayne@ironpillarmedia.com. Best regards!

How To Work a Minority Business Trade Show (Part I) - An MBE Perspective

In roughly six weeks, one of the nation's largest minority business trade shows will take place in New Orleans. The event is put on annually by the National Minority Supplier Development Council and detailed information about the conference and trade show is available at http://www.nmsdconline.com. There will be over 850 corporate and minority business booths and I estimate more than seven thousand attendees, representing the premier corporations and minority businesses in America.

This is a wonderful opportunity for MBEs to get their goods and services in front of major corporations. It is also an opportunity for MBEs to network, form strategic alliances and to do business with each other. Having attended many of these conferences, however, I also know that it can be overwhelming. From the opening welcome reception to the gala night, there are thousands of individuals coursing through the show and you can easily get lost in the shuffle. So with only a few weeks before the conference, I thought I'd share a few strategies with you about how you can effectively work a NMSDC (or any other trade show).

Make a Plan

The first part of your strategy occurs before you even attend the trade show. This involves sitting down and developing a strategy for what you hope to achieve from the event. What are your goals? Which attendees are must sees for you? How can you isolate and get face time with your best prospects? There are answers to all of these questions, but you must spend the time to think clearly about your aims. Trade shows are an investment of time and capital and so to just "show up" without a plan is a bad idea. Some people argue that trade shows are ineffective, but these are probably some of the folks who fail to approach the matter with a well thought out plan.

Reach out to Your Targets Beforehand

It is also a great idea to reach out to as many of your targets in advance, if possible. Let them know that you will be there and do your best to arrange one on one appointments. Depending on your relationship with the target you may be able to schedule a sit down meeting or even a meal outside of the din and fray of the trade show. The NMSDC trade show occurs over the course of four days. Within that time, there are plenty of opportunities to reach out to your best prospects away from the crowd. This allows you to get to know your targets on a more personal level and can set the table for future exploration.

Purchase a Booth if You Can But Don't Let That Prevent You From Participating

You do not have to display at the trade show in order to be effective. If purchasing a booth is within your budget then having a well put together booth with good signage and plenty of marketing materials can be a good way of establishing your presence. And of course, what is a trade show without all those giveaway items? But if you are not in a position to have a booth, or afford 1000 doodads, you can do well without one.

First, the name of the game is making quality contacts with quality people. That is why making a plan and reaching out in advance is so important. Having a booth does not guarantee that this will happen. Further, most of your contacts aren't interested in one more glossy marketing folder. It is far more effective to simply get a business card and place the info in a pda device under a folder designated for the show. Once you are back at the office, this facilitates easy follow up through emails, telephone calls, etc. In our new, greener economy, it's better to save the paper and send the marketing materials digitally.

These simple suggestions alone will help you to get immeasurably more out of your trade show experience. But in the weeks ahead, I will continue to share some of the strategies that I and other successful entrepreneurs have used to get the very best from our trade show output.

Stay tuned!

It's not the critic that counts

One of my favorite quotes is from former president Teddy Roosevelt. The quote is as follows:

"It is not the critic who counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasm, the great devotions, who spends himself for a worthy cause; who at best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory or defeat."

Stop for a moment and think about those words. Reread them before you move on. It is a great piece of wisdom and particularly applicable to small business owners. The entrepreneur is the "man who is actually in the arena, whose face is marred by dust and sweat and blood..." The entrepreneur "strives valiantly" and "spends himself" on his chosen field of dreams. The entrepreneur represents what is great about our nation.

It seems that some in the public eye have forgotten or have ignored this powerful message. I cut short my usual perusal of the various cable news channels this evening sickened by a never ending stream of critics, naysayers and attack dogs, who offer no solutions, but only harsh criticism of their opponents. I am a registered Independent. I have voted for Republicans and Democrats, depending on where they stood on the issues. Thus, I have no political horse in the nasty dialogue.

Something inside me however shouts that we are better than this. We are better than the constant bickering and partisan labeling without thought; without give and take. When did we become a nation of critics? When did we forget that it's not the critic that counts?

You Should Have Been There

This past Friday I had the pleasure of participating in the largest and best minority business conference in the Southeast United States. Among the numerous highlights and tremendous business opportunities flourishing (even within our troubled economy) was my interaction with four of the region's fast rising minority business entrepreneurs. The session entitled "Titans Share Their Business Secrets and Successes," was worth the price of admission. We were treated to a cadre of business insights and strategies for what companies must do to thrive in any economy.

Calvin Harris of the Harris Food group taught several principles that bear repeating. The first such principle is that entrepreneurs cannot afford to take no for an answer. He recounted the story of how he lobbied a national chain to sell a line of products that he created. Obstacles were placed in his way because it had never been done that way before. He had to persevere and convince the chain that his product was a must have. Today his products are featured in thousands of locations.

He also shared that you must surround yourself with the best people possible. In the real world, we know that this is easier said than done. There is always the temptation to settle, whether for budgetary reasons, expediency or other factors. The excellent entrepreneur, however, understands that the business will rise or fall on the strength of its people and invests accordingly.

Finally, he shared that the successful entrepreneur must build his business strategically. In short, you need a game plan. This is one of the points that I highlight in Tales My Grandma Told Me. A game plan allows you to plot a course and to properly focus energy and resources. The great thing about a game plan, however, is that it can be adjusted to account for market shifts or other factors that arise. It is up to the entrepreneur to be aware of what is going on around him and sensitive to what lies ahead in order to make the required adjustments.

George Abadie of Seacoast Construction highlighted that point. When the real estate market went south, he and his partners did not panic. They adjusted their game plan to focus on providing services to the distressed market. By doing so, they were able to create a niche business and will more than survive the economic downturn.

These are simple but powerful truths. The featured entrepreneurs all demonstrated ways in which they were thriving within a down economy. There was much taught, but on balance, much too few minority entrepreneurs on hand to learn.

The Economic Stimulus Package and You

Recently, I had the pleasure of attending an excellent seminar regarding opportunities for minority businesses within the American Recovery and Reinvestment Act or as it is more widely recognized, the federal Economic Stimulus Package. The event was organized by the Florida Regional Minority Business Council and facilitated by Dr. Fred McKinney, an economist who served on President Obama's transition team. This article will not provide an exhaustive treatment on the opportunities available under the Stimulus
Package.

However, there are several key take-aways from the discussion that I believe are extremely important to minority businesses. The take-aways are derived from three basic questions posed by Dr. McKinney at the outset of the event. Every minority-owned business enterprise (MBE) that is interested in profiting from the Stimulus Package should ask itself and then answer the questions. They are: (1) In three words or less, what goods and services do you market and sell? (2) What industries do you supply/sell to? (3) Do you have a written strategic plan?

These three questions are at the heart of the Economic Stimulus Package and You. In my January 2009 blogpost, I advised you to go to the White House website in order to educate yourselves on where the Stimulus spending will occur. You should also be aware of www.Recovery.gov and www.Stimuluswatch.org, but more importantly, you should research and gain understanding about state and industry-specific websites that detail how state Stimulus dollars will be spent. For example, information about Stimulus spending in the state of Florida may be accessed at www.Flarecovery.com.

Once you can determine where Stimulus spending will occur, then you will know, based on Question #1, whether you provide goods or services that will be purchased with Stimulus dollars. If you do not directly provide those goods and services, say, construction services, for example, you should then ask yourself Question #2. That is, do you supply or sell to any industries that will benefit from the Stimulus Package. Maybe you know nothing about construction or alternative energy, but perhaps you may provide staffing or other services to those industries that will directly benefit from Stimulus spending.

If the answer to Question #2 is no, then you may want to revisit or create a strategic plan for your business that includes targeting Stimulus industries. The federal deficit is predicted to be 1.8 trillion dollars. It isn't easy to fathom that number, but you may think of it loosely as the number of dollars the federal government intends to (over)spend. It would seriously behoove all minority businesses to spend some time figuring out where the dollars are going and how they can meaningfully participate.

One of the best ways to do this is to certify your business as minority-owned at both the corporate and government level and pay attention to what is going on in the local news, national news, the Internet, government and the Minority Business Councils. Log on to the websites mentioned and www.nmsdcus.org and follow what fellow MBEs are doing. You may also read up on the certification process and its benefits in my book, Tales My Grandma Told Me, a Business Diversity Fable. However, be aware that time is of the essence.

As Dr. McKinney put it, "Don't wait until you see the cranes going up" before you begin your work. By then, my friend, it will be too late.