Time to start networking...

Now that you’ve taken the basic steps to building your new business it’s time to get out there and meet people that can help you get clients, come up with new ideas, build relationships and expand your brand.  Business networking is the best way to do this.  Get the word out there.

Set a goal for yourself.  How many networking events will you go to per month?  I recommend at least 2-3.  You might often see the same people at these events but that’s a great way to build relationships and gain leads.  The more you can remind someone of your services, the more they begin to trust your professionalism and will be willing to recommend you to their business associates. Even though many of the people you meet are not your target clients or potential partners, they might offer a unique insight, share a valuable resource, or get you thinking about a new solution to your problems.

Of course networking can be time consuming and takes commitment but it really is a must as you look to get the word out on your new venture.  Additionally, some networking events are pay-per-go so it could be an investment of financial resources but there are also events you can find for free.

Consider social networking as well: LinkedIn, Twitter, Facebook, small business boards.  Social networking sites allow people to create new relationships and reconnect with friends and family. Increased communication, even online, strengthens relationships.  Social networking sites bring people with common interests together and offer exposure to new ideas.  Some people might not have the best communication skills in person or even suffer from social anxiety so interacting via online resources can be another helpful option.

Here are some useful networking organizations you might want to consider getting involved with: First Degree (http://www.breakfastnetwork.com/), New York City Networking Group (http://www.meetup.com/The-NYC-Business-Networking-Group/), Gotham City Networking (http://www.gothamnetworking.com/).  You also might want to consider using your high school or college networks.  Get in touch with your alumni associations.

Make sure to bring lots of business cards with you to hand out.  Don’t be shy.  Go up to people; introduce yourself.  Start up a conversation.  Ask them what they do and they’ll ask you in return.  Collect their business cards.  Follow-up with them quickly via email or phone.  You might want to consider setting up one-on-one, face-to-face business meetings with them so that you can talk to them in more detail.  You know what they say: “You scratch my back, I scratch yours.”  Make sure you have your pitch down pat.  You want to be quick and concise in your message of what you do.

So what have we learned here today?  Get out there.  Get the word out about your business.  Meet people.  Build relationships.  Your business doesn’t exist in a vacuum.  You can’t be successful solely on your own.  Don’t be afraid to ask for help or seek advice from like-minded individuals.  Your business can only grow as big as your network.  Be proactive and success will follow.

Naming your business

What’s in a business name?  A lot, in fact.  Naming a business can be a tricky undertaking.  The name you choose says a lot about the product and services you are selling along with goals and values of your company.  After all, you’re trying to convey the expertise and uniqueness of your new venture – how you will stand out against the competition and be remembered by your target audience.  You should think about ease of pronunciation and how it will look on a business card.  You want to be memorable but not confusing.  Entrepreneurs often angst over naming their businesses.  It’s a complicated process after all.

What should your business name communicate and what does it say about you?  First and foremost, it should relay the key elements of your business – something that is long lasting and embodies the values of your company.  Experts feel it’s your best bet to pick something meaningful and broad.  Be careful you’re not overly descriptive.  For example, if you’re based out of NYC and choose to put that in the title but then decide to expand to other locations down the road this could be a hindrance.  It might be better to be suggestive – a name that is more abstract and coveys what the business is about at the core.  Additionally, think of something that is appealing to the consumer, something comforting and familiar not long and confusing.  A strong name should be simple.  Make it easy to spell and pronounce; stay away from cute puns – if you land a good one, you’re in luck.  However, you run the risk of picking something that’s overused or too “cutesy.”  Don’t be a copycat.  Just because others have had success with a certain name or phrase, you want to make sure you stay original.  You might want to consider something that lends itself to wordplay or in essence verbal branding.

Some experts suggest new forms or spellings of existing words but others warn against this.  If you name your company something that sounds differently than the way it is spelled, it could be difficult for your customers to find you online.  In this digital age, you have to keep your domain name in mind.

Next you should think about acquiring a trademark.  If you only operate in one state you do not need to trademark your business name because you already have the right to use it in that state and you are allowed to use it in other states.  However, conflicts could arise once you expand into new markets and another company operates under the same name.  Registering a trademark is relatively simple.  On your own, you can file an online application in less than 90 minutes without enlisting a lawyer by registering on the U.S. Patent and Trademark Office’s website: www.uspto.gov.  Before doing so, check the site’s “Trademark Electronic Search System” database to make sure another company hasn’t already registered the same trademark.  Online trademark registration costs between $275 and $325 and requires information such as “the categories of goods and services for which the mark will be used, date of the mark’s first use in commerce and whether there’s a design component to the mark you’re seeking.”

Naming your company can be a daunting task but it can also be a fun experience.  Brainstorm with people.  Try things on for size.  Don’t limit yourself.  Remember although it’s not the best plan, you can always rebrand down the road if your business objectives grow and change.  Don’t get stuck and let naming your business stand in the way of getting started.  Think logically and be creative.  Obviously, your company name says a lot but it’s not everything.  The meat and potatoes are in what you are offering and selling.  It is your business model and service offered that will make or break you in the long run.

We’ve come a long way but we’re not there yet.  In fact, we’ve only just begun so log on next Wednesday as our series continues.

Until next time…

How to secure funding

Now that you’ve written a business plan it’s time to move onto the next step: securing funding for your new venture.  There are many ways to do that and I will talk about most if not all of them today.  However, it is trickier to secure funding for a small business.

“Today, entrepreneurs are much more likely to dive into their own pockets and hunker down for a battle to start up and stay alive. But if you don't have the cash in your wallet, what do you do? Luckily, there are still options for funding new companies, but finding and securing the cash will take careful research, good negotiating skills, and, above all, an unflagging commitment to launching your new business.”

Sometimes getting money to start up your new venture can seem like a daunting task.  You have to calculate your startup costs and then add in the amount of money you need to cover your personal expenses.

Regardless, thousands of individuals do find the money to start up a new business – but how to do it?  Some are less risky but others involve a lot of financial risk.

Sometimes it’s wise to maintain a part-time job where you will still likely have the luxury of benefits to cover your family’s health insurance and a 401K.  You might not want to quit your day job until your business has a steady amount of customers and profits.

It might be wise to start your business based out of a home office for much less money so that you don’t have to pay for office space.  Live frugally.  While you might not want to make it clear to your clients that you are working from home, consider using a virtual office from an office business center where you can get a phone number, have a virtual assistant and mailing address that does not reveal your home address.  “According to the US Small Business Administration, 52% of new businesses are home-based.”  A virtual office is a great option for young companies.  Having such a resource might make you seem more established – investors and clients might take you more seriously.  They are offered at a low cost.  One of the best perks is that you don’t have to change your address should you seek to move into the same office business center down the line with which you are renting your virtual office.  One company out there offering virtual offices which you might want to check out is Emerge212: http://www.emerge212.com/boutique-virtual-space.html.  Emerge212 also offers a “stepping stone” program offered at the low cost of $850 a month all-in.  Here’s what the program entails: You simply share an office with one to three like-minded business professionals.  You receive a dedicated desk, a 212 number (a highly sought after option), 24/7 access, access to all the common spaces and conference rooms and high-speed internet connection.  This is up to a 60% savings when compared to renting a similar Class A-quality office with the same level of services.

If you have good credit, consider using a credit card which is one of the easiest ways to get the money you need to start up a new business.  “Equipment, suppliers, advertising and postage (for mailings) can all be purchased with a credit card.  And if your credit card gives you a line of credit, you can give yourself an instant loan (up to your credit limit).  But using a credit card to start your business bears some significant risk, too.  If you're not careful you can quickly run up a huge credit card bill – a bill you'll be responsible for paying whether your business is successful or not.”

You might want to consider a home equity line of credit.  Some banks offer home equity lines of credit that let you borrow up to as much as 75% of the appraised value of your home.  The downside – you’re putting your home at risk.  If the business fails and you can’t repay the loan, you could lose your home.

Writing a business plan

Now that you’ve come up with your idea it’s time to move onto the next step: writing a business plan.  A company’s business plan is what lenders use in deciding whether or not to loan you the money needed to start up your new venture.  It is the most important document you will use to gauge your company’s success and help you make decisions about how to move forward with your new undertaking.  (“If you’re starting a home-based business some of these suggestions may not apply but you should still create a plan that outlines your goals, expected costs, marketing plan and exit strategy.  A business plan is your road map for how you expect to succeed and how you’ll measure success.”)

A great business plan is a living blueprint for your business that can help you manage your company while helping potential investors, partners and lenders understand your business strategy and chances of success.  “A business plan is never quite finished because you’re always revisiting it, reviewing it and building upon it.”  Writing a business plan can help you describe your product, service and marketing plan as well as your sales forecasts.

Show your investors how they’re going to make money.  A business plan is a must if outside lenders are sought whether from banks, small business loans or venture capitalists.  It is one of the primary documents a loan officer will want to take a look at.  If you're developing a plan involving a business loan, then your lenders are going to want something slightly different.  “They will want to see a section detailing collateral or assets to pledge against the loan.  Collateral includes funds to support loan payments, interest expenses, and debt repayment.  Banks aren't allowed to make speculative loans, so you need to include information in your plan to make the banker feel safe.”

What components should a plan include?  For starters, a description of the company and products and service offered.  Additionally, a plan should incorporate financial forecasts and analysis and a description of your management team.  Your plan should also include an executive summary: an abstract of your plan and what you will say in greater detail in the coming pages.  It outlines the goals of your business.  It may be wise to review sample business plans in lieu of starting your own.  “Be sure to include background about your company, the market opportunity, your capital requirements, a mission statement, an overview of management, competitors, your business's competitive advantages, and a summary of your financial projections over the next three years.”  A plan should also include a company overview used to provide additional information about your new venture: it’s mission, model, strategy and why it is being formed.

Additionally, in your business plan you should include all the operating costs of your business, such as where the company will take office space and for what approximate cost per year, etc.  Bear in mind that your business liabilities can work against you getting the loans you need and want.  Signing a long term lease for office space for example can be a hindrance.  The investors will see a long term lease as a red flag - if the business fails their money is committed to several years of rent.  Consider including the plan to lease space from an "executive suite space" also known as Office Business Centers.  Options such as Emerge212 (http://www.emerge212.com/) provide your business the impressive space it needs to thrive and grow with the shorter term leases that will look more favorable to investors.

Most importantly, investors need to know that your business plan was created by you and not an Internet company that offers to sell business plans on the cheap.  Each business plan should be as unique as the business you are starting.  “A business owner should also be fully invested and fully aware of every aspect of the plan.”  The text used should be a simple and easy to read font with a table of contents and topic headers.  Including charts where appropriate is also a good idea.  Most experts conclude that a plan should not be more than 30 to 40 pages not counting supporting documents.

What are some of the types of business plans?  The most regularly used is a start-up plan covering standard topics about the company, products and services offered, implementation, management team and financial analysis.  Another type of plan is the internal plan which is not intended for outside investors.  There is also the operational plan or annual plan using milestones, dates and deadlines.  The strategic plan focuses more on high-level priorities than on detailed dates and specific responsibilities.  The growth or expansion plan is focused on a subset of the business.  Lastly, a feasibility plan is similar to a start-up plan that is simpler – focusing on mission statement, keys to success, basic market analysis and preliminary analysis of pricing and expenses.

I hope this blog entry has been helpful in making you understand the tools needed to create a sound business plan and the steps needed to make that happen.  Please log on next Wednesday where I will discuss securing funding.

Until next time…

Is entrepreneurship right for you?

What is the first question you should ask yourself when starting a new business?  Simply put: Is entrepreneurship right for you?  You might also want to ask yourself: Am I prepared to spend the time, money and resources needed to get a company up and running?  In terms of time, when you become an entrepreneur, you’ll likely work harder than you would for any traditional company.  While there is a lot of flexibility involved in a new business, it requires a large investment of time.  You’ll need structure and a schedule of regular business hours that you have to commit to.

Embarking on a new business venture isn’t easy.  Being your own boss can be a challenge.  You have to have the motivation to work hard every day.  You don’t have a boss looking over your shoulder or the structure of a traditional office environment.  You also aren’t getting a paycheck every week and don’t have the luxury of benefits.  Additionally, if you start a business on your own, you won’t have a staff that reports to you or co-workers to brainstorm with and help you when your work flow gets overwhelming.

Next question and possibly the most important one: What is my idea and why is it unique and original?  What will set me apart from my competitors and who are those competitors?  Coming up with a fresh idea can be a challenge.  New ideas can come from reading and of course, talking to others who have the same interests.  Another way to spark your creativity is to think about a problem and the different ways to solve it.  Once you have an idea, think it through and determine if it is reasonable to move forward with it.  If it is, go for it!  If it isn’t, keep trying.  Don’t limit yourself – be open to a variety of possibilities and your mind will logically create new ideas.  There’s a lot of research involved in learning what’s already out there in the broader marketplace.  You might find yourself competing against established businesses.  One thing that can be helpful when facing such a challenge is networking with the right people.  They can provide advice on how to become successful and potentially help you get new clients.  

You also need to ask yourself: Why exactly am I starting a business?  What are the goals I’m looking to achieve?  Do I have the skills and knowledge to be successful?  When you’re an employee of a traditional company, your responsibilities are vastly narrower and highly targeted.  However, when you launch a business, you become responsible for everything from research and development to product delivery and accounting.  Therefore, there will be some tasks you might not be familiar with.  You might want to seek a mentor or sound advice from an expert in your field who can help you learn how to navigate through these new endeavors.

Welcome to "Business in the City!"

Welcome to ‘Business in the City!”  I am here as a resource for all your small business needs whether you are an established company looking to grow or a young entrepreneur just starting out.  I am your inside source to all things NYC and will go beyond just business and provide you with information on lifestyle, entertainment and personal.  Next Wednesday I will be rolling out the first blog in a long series about how to start a business and of course, be successful at it: What you can expect from it, the obstacles you may face, how to get funding and clients, where to create an office for yourself and your company be it a traditional or virtual office, etc. and unravel all that comes along with this.

Today’s post is an introduction so I want you to understand what I’ll be doing, how I’ll be helping you and why I am even blogging in the first place.  It is my hope to become a one-stop-shop or go-to source, if you will, for the small business community in our very own New York, New York!  It’s said that “if” you can make it here you can make it anywhere but what does it really take to make it here?  How can you increase your chances of not falling victim to the odds stacked against small businesses in Gotham City?

With so many blogs out there along with everything else that’s put in front of you to read, why read this blog?  I have my own take on its importance and the overall importance of blogging and social media as a whole.  If you give me a shot, you may be surprised what you learn.  There’s an investment here; an experiment if you will.  That experiment is to create a blog that chronicles the entire process of starting and sustaining a business in NYC.  It is being authored by someone who has never done that before but who will take the steps to do so in a diligent and comprehensive way that benefits all who read along.

So where should I begin?  Today, I’ll just start with addressing the pros of blogging for small business and of course, social media in general…Next time, I’ll start at square one with the creation of a small business in NYC.

As you well know, many of the most significant revolutions of the last 20 years have all had to do with writing – email, webpages, texting and now blogs.  A blog is in essence an “online diary” with a coherent voice and opinion.  When you were a kid and wrote a diary would you ever consider letting someone else read it and comment on it?  Probably not so maybe there’s more to blogging than meets the eye?  First you have to ask yourself: Are you blogging for the right reasons and what are those reasons?  Will your blogs lead to a flow of information and a dialogue with the reader?  One hopes so.  In essence, bloggers are people with attitude and a strong opinion.  

In business, blogs have the potential to help the organization develop brand loyalty and a stronger relationship with the consumer.  By capturing and maintaining visitors, your blog can gain traction in the broader marketplace.  A blog can be seen as the “human face” of an organization.  You have to be careful that your blog does not become pointless or narcissistic; that it remains accurate and original.  Blogs can be a positive way of getting feedback and “keeping your finger on the pulse” as readers react to certain pieces.  Lastly and most importantly, you have to ask yourself: what is your point of view so that your blog has the right mindset for the audience you are trying to target and will engage the reader.  In essence, that is what I am trying to do here.  I will be taking a stance and will not waver from it and I hope you will consider listening and taking my advice.

It’s Summer time! Work Hard and Play a Little – You’ve Earned It!

When you’re running your own business, there’s no such thing as a Spring Break or a summer vacation.  The idea of a holiday away when you’re a small business owner feels impossible. It doesn’t have to be that way (Consider the benefits of a virtual office!). Being accountable to yourself allows you to redefine traditional office hours. The desire to get away from the desk and off of the computer grows exponentially during the warm summer months. Imagine conducting business from the other side of the window – outside the window!
Realistically, if you’ve got your ducks all in a neat row and you’ve created some guidelines, getting out of the office is a good refresher for you and your company. With careful planning you can step away from your business for a few days or hours without returning to a business in total chaos.
If you’re just starting a company, or you’re more settled into a groove and fairly established, sustaining and growing business can still happen in the great outdoors. It’s good to remember some of the reasons you struck out on your own in the first place. You’re no longer working for someone else! You have some different freedoms! Capitalize on all the opportunities you have with that freedom.
And know that the world won’t stop while you’re away. If you set up a system for you and your business, things can carry on smoothly and successfully while you’re off decompressing on that glorious Friday afternoon.
Here are a few critical tips that will make your afternoon trip to the park or your early long weekend be stress free.
1.  Hire staff you trust to keep things flowing without your direct supervision.
2. Give vendors the heads up that you will be away -- but that your company is in good hands.
(The Smartphone will not be on vacation.)

3. Delegate deadlines and unfinished work; designate a project manager to liaise.

4. Confirm that the destination you will be traveling to has reliable Wi-Fi access. Plan to check in several times a day. (Remember, your Smartphone is not on vacation.) Just because you are physically out of your office doesn’t mean you don’t still have a presence.
ENJOY!

Five Eye-Popping Pop Ups

Pop Tart Sushi being made at Pop-Tarts World

Empty and untapped places make great spaces for cool ideas and products. Whether they’re one-day events, temporary pop-up shops, or seasonal dining or retail experiences, New York City real estate has a bounty of square footage to repurpose into something fleeting and exciting.
Here are five of our favorite pop-up experiences we loved popping by to check out.

Pop-Tarts World
A favorite childhood snack cleverly made good use of its name and applied it to the pop-up phenom. The temporary Pop-Tart shop took over 3,200 square feet of retail space in Times Square and transformed into a café and retail outlet featuring Pop-Tart inspired treats like Pop-Tarts Sushi, Pop-Tarts Ice Cream Sammys and Pop-Tart Ants on a Log, among other creations. The Promotional Marketing Association (PMA) awarded the concept the “Best Experiential Marketing Campaign of 2010.”

Charmin
Although this space popped up more than a year ago, the Charmin NYC Experience wiped quite an impression on New York after it took over Times Square. The Charmin Pop-up toilets were a collection of portable toilets equipped with three kinds of TP for your choosing pleasure. There was Ultra Soft, Ultra Strong and Sensitive. Of course a bevy of toilets in the middle of Manhattan wouldn’t make sense without an area to allow for fans to do the “Potty Dance.” The dedicated area attracted plenty of full bladders!
Ed’s Martian Books
Talk about Do-It-Yourself! Writer Andrew Kessler didn’t rely on a publisher fully to market his new book, so he created and is running his very own pop-up bookstore, Ed’s Martian Books. The shop in Manhattan’s West Village sells only one book and will be open through May 10, 2011.

Cool Hunting for Gap
The holiday season is a great time for a pop-up and New York has been blanketed with pop-up experiences over the last few winter holidays. Cool Hunting created their debut pop-up in Gap’s project space on Fifth Avenue in Manhattan and stocked the shop with retail items that employ “innovative design, artisan craftsmanship, social and environmental consciousness,”.  The store include products like exclusive Jonathan Adler items, Grado headphones, and comic Amy Sedaris’ new book, along with other cool collaborations.

Rapha Cycle Club
There’s no better way to get to know New York City than by bike, so it was an exciting addition to downtown Manhattan when the London-based bike retailer, Rapha spent three months on the Bowery. In addition to biking apparel and accessories, Rapha took on personality as a meet-up space for road riders and included a gallery, a café, and presented live daily screenings of the Tour de France.