Lois and I are both serving as mentors for the three finalists in the Yahoo Seeds for Success Program - how much fun it is to talk with such enterprising, energetic women!

Each of the entrepreneurs I spoke with was very clear about the myriad of opportunities to negotiate ─ with suppliers, service providers, independent contractors and, of course, customers and prospective customers.

For these three businesses as well as every other start-up I know though, when it comes to negotiation, it can seem as though it’s a clear case of David v. Goliath. So the question is:

How do you negotiate effectively when the other party has more leverage? (more…)

TAGS: business owners, entrepeneurs, negotiation skills, playing to win, small business

Maintaining excellent relationships with clients should be a top priority for anyone who provides services; sadly, some ignore the basics. Here is my top five list of “what not to do”:

1. Learn on the client’s dime.
   Don’t be shy to take on a project even if you are not sure that you have the skills and experience to do it; particularly if you are on a per diem or hourly arrangement. After all, whatever you learn while you are on the clock for this client, you’ll know for your next project.
2. Blame the client.
   This is particularly effective when you have failed to estimate project costs appropriately. Tell the client that you can’t be responsible for “scope creep”; not only will you get paid for you but you didn’t know (see #1), but you will introduce guilt into the dynamic.
3. Don’t deliver on time.
   Deadlines are made to be compromised. Your client won’t mind a little slippage here and there; he/she will understand that you are busy.
4. Share your problems with your client.
   Be open about the fact that you have personal problems, technological problems, competing projects etc. Your client, a nice person, will surely understand and make allowances given your troubles.
5. Let your client know you don’t trust him/her.
   Insist on being paid regardless of your failures. Don’t try to rectify the damage you’ve done, trusting that the client will abide by your agreement. Stop work if the client withholds payment; it’ll probably cost your client a lot of time and added expense to hire someone else to finish up what you failed to deliver.

Of course there are more obvious ways to damage a client relationship — for example, not responding in a timely manner to the client’s questions. Rest assured, however, adding these to the mix will ensure you will never get more business or referrals from this client. So keep up your marketing efforts!

TAGS: entrepeneurs, fixing mistakes, growing your business

Last week I provided a list of things to consider if you’re thinking about starting your own business.  Today I want to give you a list things to avoid.  Most people know me as the author of Nice Girls Don’t Get the Corner Office and other books, but, in fact, I’ve been the President of Corporate Coaching International for over 20 years.  I can tell you my worst day working for myself is better than my best day working for someone else.  That doesn’t mean, however, there weren’t a few rough spots along the road to ultimate success.  Let me tell you about 3 of the most common pitfalls women experience when starting their own enterprises and how to avoid them:

• Reinventing the wheel.  One of the biggest mistakes women make is thinking we have to go it alone.  We may ask for directions more than men, but we don’t ask for help.  There’s no need for you to go it alone when there are people out there who have been there, done that.  Many cities have free services for small business owners and there are business coaches who cater to entrepreneur
• Undervaluing your product or services.  Women, more than men, are afraid that if they place too high a price on their services no one will buy them.  Placing too low a price on your product causes people to think it’s not worth it.  Charging more than the market can bear will cause you to lose customers or clients.  Do your research, find out the going price in your market and charge accordingly. 
• Listening to nay-sayers.  When I started my own business, my mother said it made “her stomach turn” to think of me being “unemployed.”  I had two brothers who already owned their own businesses, but she doubted my ability to go the same route.  Surround yourself with “yea-sayers” – people who think like you or who support your efforts.  Join the National Association of Women Business Owners (NAWBO) for the support you need.  

For a free entrepreneur’s quiz to see how prepared you are to run your own enterprise, contact me at info@drloisfrankel.com. Good luck with your venture!

TAGS: entrepeneurs, entrepreneurial mistakes, women business owners

By now it’s no secret that women are leaving corporate America to start their own businesses at twice the rate of men.  Statistics show that over 75% of women-owned enterprises open for business in 1997 were still operating in 2000.  That’s about equal to the survival rate of all U.S. businesses.  Recent data also indicates that women invest more in their businesses than do men.  Which just goes to show – women have it what takes to run and maintain successful operations. 

If you’re in business for yourself (or thinking about starting your own company) there are some things you can do to grow your company:

1.         Follow Mrs. Fields Recipe for Success.  Debbi Fields, founder of Mrs. Fields Cookies, once said it was all about passion, persistence, and perfection.  Whether it’s starting a non-profit organization or a for-profit business, you’re going to put a lot of time and energy into it.  Your focus has to be directed toward something you are so passionate about doing – and doing well – that nothing can deter you from success.

2.         Develop a clear vision of where you want to go and a strategy for getting there. Many entrepreneurs with great ideas fail because they think their product or service should sell itself.  They work hard, but not smart.  Your vision of where you want to be a year, five years or even six months from now will guide your day-to-day actions.  Write it down.  This makes it concrete and tangible rather than just an idea floating around in your head. Then develop specific and measurable steps for how you’re going to achieve it. This is your blueprint for success.

3.         Create a distinctive brand.   There are thousands of motivational speakers, meeting planners, and trainers marketing their services.  What distinguishes you from your competition?  It may sound counterintuitive, but rather than try to be all things to all people, create a narrow niche that identifies you as an “expert” in your field.  Author Barbara Stanny uses the tag line “The Leading Authority for Women and Money.”  I use “Get and Keep the Job You Want.”  Make your brand synonymous with your area of expertise. 

4.         Think and act BIG.  When Jamie Foxx accepted the Academy Award for the starring role in the movie Ray he thanked his grandmother for teaching him to “act like you’ve been somewhere.”  Big is relative.  You may never aspire to be the biggest agency, but you should act as if you already are.  Doing so causes you to see things and consider options you would otherwise overlook or think impossible.  When I started my business I put thousands of dollars into marketing materials at a time when I could ill afford to do so.  But it made me look and feel competitive.  I had to live up to the “big” image I conveyed to potential clients and eventually my firm became it.

5.         Learn the language of money.  In  Nice Girls Don’t Get Rich: 75 Avoidable Mistakes Women Make with Money I talk about the fact that women are less likely to understand the basics of money and investing than men.  Regardless of the size or nature of your venture, you need to understand how to make it profitable.  As an entrepreneurial leader you’ll be involved with budgeting, investing, payrolls, or other forms of money management.  Take a course in finance for non-financial managers at your local community college, start reading The Wall Street Journal, and other money magazines.

TAGS: entrepeneurs, growing your business, women business owners

If you own your own business or consulting firm — or if you’re thinking of becoming an entrepreneur — you’ve got to think beyond your technical expertise to your relationship with your clients or customers.   Any good entrepreneur will tell you, you can be the best in your field, but if you can’t build relationships with the people who hire you, you won’t be in business for long.  Author David Maister wrote a book that I just love:  The Trusted Advisor.  He talks about the fact that as our relationships with our clients or customers deepen, we become more than an expert to them.  We become “a trusted advisor.”  Someone they look to for honesty, a sounding board, and sometimes plain old friendship.  Here are some coaching tips for how you can become a trusted advisor in your own business or even working for someone else:

1.  Be a better listener than talker.  Entrepreneurs fail all the time because they provide clients with services they think they need, but that don’t really solve a problem or fit the situation.  I recently “fired” my insurance agent because he kept trying to sell me products unrelated to what I told him I needed. 

2.  Be discrete.  This means you don’t talk about your clients or use their names without their permission.  I once overheard a cell phone call in the airport that was totally inappropriate.  It was a consulting firm that was working on the campaign of a famous senator.  By the time the call was over I knew all the tactics they were going to use in an upcoming election.  If the senator ever got wind of it I’m sure this company would have been fired.

3.  Be generous.  No one likes to think they’re being gouged.  Set a fair price on your product or services but know when it’s appropriate to throw in something extra or not bill for a ten minute telephone consultation.  In the long run it won’t make much difference to you but it will to your customers.

4.  Be someone others want to be around.  People don’t buy your product or services, they buy you.  There are plenty of people who can provide what you sell — why should anyone buy from you? 

5.  Be honest.  If you’re not the best person for a particular job, recommend someone else who is.  Remember the scene from Miracle on 34th Street where Santa Claus was sending shoppers to other stores?    It wound up getting his store even more customers because they appreciated his honesty.  Similarly, if your client or customer asks for something you think isn’t appropriate for the situation, say so rather than simply provide it in order to make the sale. 

TAGS: business owners, consulting, David Maister, entrepeneurs, small business, trusted advisor