So why am I waxing nostalgic about TQM?   Well, I was thinking about paradigm shifts and the ways in which we apply this to our self-concept.  Try this experiment.  Take a few seconds to answer the following question: What do you do? 

We often define what we do by the product or service that we provide.  For example, I could say that I am a technical writer.   You might say that you are an accountant.  But would that really be accurate?  In these economic times, having a narrow vision of yourself could be a detriment.  If you are an accountant, you look only for accountant jobs, or perhaps you might decide to become a freelance accountant.

But what happens if you realize that the thing that you actually do is help people manage their financial assets?  What doors could that open up for you?  Can you offer seminars that would allow you to do some aspect of that?   Or maybe you could write a book that would help people manage those assets.  Maybe you just love the numbers.  Or you like putting books in order.  If that describes you, how are you marketing your busienss?  Do you market yourself as a person who can straighten out most problems, or someone who can educate the customer? Or are you marketing yourself as Sue Smith, generic accountant? 

For me, I’ve discovered that there are two different things that I like to do.  I love to tell stories.  I think the story is one of the most effective teaching tools available.  I love to help people learn.  Also, there are many things that cannot be addressed directly, often because truths are too painful to face.   Stories are an indirect way of touching the psyche of a person and thus, can be used as a tool to help heal people.  So, to view myself solely as a technical writer would be limiting.  Even to view myself solely as a writer is a bit limiting since I could easily do any of these things without writing a word.

One way to spark your own personal paradigm shift is to attempt to define your career by the need that you fulfill rather than the products or service you produce.  So try answering this question:  “what need do you fulfill?”  If you take the time to do that, you just might surprise yourself  with the answer …

Then I read “The EMyth Revisited” by Michael Gerber and all of these thoughts came bubbling to the surface.   In a nutshell, Gerbner said that as business owners we have three personalities: the Entrepreneur, Manager, and Technician.  As their names imply, the technician does the work, the manager manages the work, and the entrepreneur sees the vision.  As our businesses grow from infancy to maturity, different personalities must dominate or the business will not grow, or worse, will die.  In the beginning, the technician and manager are extremely important because the small business person often does everything his/herself.  However, as growth occurs, the entrepreneur must become prominent.  The solution is that businesses should start with the end in mind.  They should operate as if the vision is a reality so that growth can occur more smoothly. 

It would be wonderful to have a wildly successful business.  But at what cost?  Do I want to be removed from the day-to-day writing that I so love to do?  I’ve drawn the conclusion that a decision that can be made up front to limit growth – or possibly to grow differently – so that I can do what I love to do, while still being profitable.  For now, I’ve made the decision, at least with this iteration of the business (who know what spinoffs might occur …), to remain small.   Profitable, tight, but small enough that I will be able to do what I love to do, which is to write.

What about you?

1. What three goals do you have for your business this year?  It can be monetary, the addition or development of a new skill, the cultivation of new business relationships, or something else.
2. How can you break these goals down into smaller steps that can be accomplished quarterly?  Monthly?  Weekly?  Daily? 
3. How will you track these goals?

Here’s an example.

1. I want to make 120K this year in my real estate business.  I want to obtain a mortgage broker’s license.  I want to increase sales by 12% this year.
2. I have to make 30K per quarter, 10K per month, 2.5K per week … or by 1st quarter I will have completed my investigation of classes and training sources, I will be enrolled in a courses by 2nd quarter, I will complete classes by 4th quarter and take the exam at that time.  I will increase sales by 1% each month, I will send mailers to 100 new potential customers each month, I will send cards to customers during the major holidays and draft a newsletter that will be sent to potential clients monthly.
3. I will track revenue using QuickBooks and will review them once a week.  I will set email reminders several times during the year that remind me of my mortgage broker goal.  I will maintain a database of customer propects and will track sales using the database.  I will review the sales every month.  I will have an overall goal review once a quarter.

Ahh … so easy to write fiction, so difficult to come up with your own goals!  Actually, I have a financial goal that I’m aiming for and am in the process of implementing a strategy.  I also have two classes that I’m going to take.  Of course, my major goal was to get this business up and running, which I’ve completed.  So this year, I have quite a few goals.

So … what are your goals?  How do you feel about goal setting in general?  If you’ve not set goals, why not?

But perhaps the most important thing that I’ve done has been something that is quite small.  I was offered the chance to interview for a full-time, permanent position; one that I probably could have gotten.  I’ve had an interview with the company before and they liked me, but decided to hire another person.  However, I’ve declined the second interview because I really want to do this.  It is a crazy thing to do in this economy – I know that.  Yet, now is the time.  This is something I must do.  I’ve poured so much time, money, and effort into this.  I don’t want to fail.  I just want to keep going until I succeed.  I love to write and am blessed that I am able to pursue a business doing something that I love. So, I’m continuing to move forward!

I have a client who I’m hoping to prepare some really nice marketing materials.  I’m trying to hammer out a really nice marketing plan for her; something that allows her to take advantage of digital media.  Many of the people in her field aren’t fully using the new media and I really want to help her with that.  She is also a writer, so she might enjoy maintaining this.  In any event, I’m hoping to be able to help her and to also move forward in my business.  I’ve learned that new businesses usually take about 18 months to gain traction.  I’m hoping to gain traction before then; I think it can only happen with 100% commitment on my part.  So we’ll see!  Success breeds success – it is just getting my foot in the door.

How about you?  At what stage are you in your business venture?  When did you start to move forward in your business?  What kinds of things did you do at this stage that were helpful?  Harmful?

One of the first areas of expertise that I’m going to branch into is grant writing.  I have edited proposals for private industry, but have always wanted to do much more actual grant writing and research.  It is something that I intuitively understand and enjoy.  I’m halfway through the initial training and have found a grant writing organization that I believe will be quite helpful to me.  As I’ve been a technical writer for over a decade and have some graduate level research experience under my belt, I think this will be an asset to me.

I can’t say that this experience thus far has been frustrating, but rather has been an excercise in appreciating detail.  I can easily see why so many businesses fail; if it had not been for mentoring that I’ve received, as well as research, I’d truly be lost.

1. Develop a business plan including the business structure.  The business plan doesn’t have to be a dissertation, but should provide at least a basic outline.  As you move forward in your business, you can fill in more detail.  The business plan is a work in progress and should help you to address areas that you might not have thought about.  Of course you can go to your local Small Business Development Center, but also check with your library. 
2. Check to see if the domain name for your business is avaialble.  Try GoDaddy or Verisign.  You might want to consider purchasing webspace at this point (because a domain name is usually included in the price).  Yahoo Business has a nice package for non-designers, but there are definitely better deals out there, in terms of finances. 
3. Apply for a business entity structure from the state (Sole Proprietor, Partnership, Corp-C or S, or LLC).  Also, check your states tax requirements.
4. Obtain a Federal Employee Identification Number (FEIN) online from the IRS by filing the SS-4 Form.  Check www.IRS.gov for details.
5. Check your home owners and apartment association for zoning appropriateness if you work from home.
6. Check to see if you need licenses and permits for your particular business in your state.
7. Complete a Business Tax License application for your area.
8. Obtain banking and insurance as needed.  Don’t forget Workers compensation Insurance if you have more than 4 employees.  (Note, the FEIN is often required to open a business account).
9. Check with your state concerning the rules for remiting sales tax (you might need some sort of Sales Tax Identification Number).  If you have employees, be sure to follow the IRS and state rules for employee withholding tax.

I’m in the process of obtaining some training for a service that I will be offering.  I also have a client on hold – and will speak with him next week to see what I can do to help him.  I had an interview with another prospective client.  He seemed quite happy with what I can offer – I’ll find out in a week or two if he will select me.

I’ve been looking at different types of writing as well, and would like to start moving in the direction of scripts for industrial videos as well as online articles and blogs.  I might not make money doing this for some time, but I want to start sowing the seeds now.  There is an opportunity for me to write some very short scripts and submit them to a local organization. 

How are you coming along with your business ventures?  Have you been bogged down?  How did you get yourself “unstuck”?  I’d love to hear your comments!

Your business name should be fairly unique, memorable, easy to pronounce and to spell, should distinguish you from the competition, and should identify the products you offer.  You might also want to consider a name that is close to the beginning of the alphabet – particularly if you are going to list in the phone book.  And of course, check the website.  How embarrassing it would be to have the name for your bakery to be synonymous with an adult website!

How did you choose your business name?  What other tips have you had for choosing names?  Feel free to reply here!

You should have at least three financial statements.

• Income Statement, which is a picture of business activities over a period (annually, monthly, quarterly).  This includes accrual items such as accounts receivable, accounts payable, or depreciation.
• Cash Flow Statement, which records expenses and income during the period when payments were received and made.
• Balance Sheet, which is a snapshot of business liabilities, assets, and net worth.

You need all three to really understand what is happening in your business.

But how do you even get to the financial statements (Income, Balance, and Cash Flow)?  It all starts with your Cash Receipts Journal and your Cash Disbursements Journal.

• Your Cash Receipts journal includes your summary of sales, other types of receipts, and your accounts receivable ledger.
• Your Cash Disbursements Journal includes your checkbook and your accounts payable ledger.

All of this goes into your general ledger, which then is broken out into the three financial statements.

Your CPA should be able to set up accounting systems for you, tell you what is needed, and provide lots more information.

Well, that is enough about Business Taxes for now!  I’d love to hear your feedback. 

Are you using computer accounting software?  Are there any that you would recommend over others?  Any tips on selecting software?