Every Woman Entrepreneur Should Have…

A job working for someone else she can imagine going back to…and one to remind her why she became an entrepreneur…

Enough money within her control to quit her “day job” when she decides to become her own full-time boss…

Something perfect to wear if business partner, vendor, or client of her dreams wants to see her in an hour…

A start-up stage she is content to leave behind…

…But bootstrapping stories outrageous enough that she is looking forward to sharing them (with Entrepreneur Magazine, the Wall Street Journal, her shareholders and employees…) in the future…

The realization that she might not ever retire because she loves what she’s doing so much…

A reliable accountant, a competent attorney, favorable merchant account terms, and a talented web designer…

Every Woman Entrepreneur Should Know…

How to work hard without compromising her ideals…

How to hire someone, review a contract, and sign a client…

How to fire someone, ask for client payment, and turn down a contract…

How to at least try to achieve “work-life balance”…

How to negotiate with vendors, clients, and anyone else she needs to…

How to talk about software, VoIP service, or other tech purchases with a salesperson in a way that makes it clear she’s done her research…

That she can’t change how many hours she’s given in a day, when clients choose to call her back, or whether her daughter will have a ballet recital the same morning as a huge, already-scheduled meeting…

That even though she can’t change these things, she’s still in charge of the way she deals with them…

That for some people, business is just business…

Where to go for a lunch meeting, an after-office cocktail, or advice on management issues she’s not sure of…

That she can truly accomplish anything she wants- once she makes up her mind to do it.

Go back and read the original for an extra dose of inspiration!

According to the program, even though there are 10.5 million women entrepreneurs in the U.S., only 3% have cleared the $1m revenue mark.  The M3 race aims to drastically increase these numbers- the goal is to help 1 million women business owners reach $1m in revenue by the year 2010.  If your business has earned at least $250,000 in annual revenue for the past two years, you’re eligible to join the race.  Prize awards include free products and business services, but everyone who participates is a winner in her own right- over ¼ of last year’s participants hit the $1m mark.

Part of the reason that the M3 race is so successful is because it gives women the tools they need to take a business from startup to profitable company.  The M3 race offers practical advice: When do you need a website, and how much should you pay for website design?  Should your business incorporate?  How do you find the right lawyer, accountant, CFO, or office space?  While many of these resources are provided by partner organizations (Resource Nation is one) support is also provided by the online community of women entrepreneurs.  Whether you need a loan, or a graphic designer, chances are you’ll be able to get real-world advice and excellent recommendations.

For more information about Count Me In and the M3 race, check out their website.  This is one race where everyone who enters finishes a winner.

How much postage do you use?
Potential savings depend on your current shipping costs.  If your business mails fliers, promotional brochures, or even invoices to a large number of clients or potential customers, a postage meter can probably save you a lot of money.  Postage meters can also be used for shipping packages- home businesses that sell items on eBay or manufacture products for sale can benefit from an easy, quick shipment process.  Since postage machines allow you to pay exact postage, you’ll never overpay.

Postage machine features
Mailing machine equipment can be customized for the specific type of mail you send.  For example, you can choose a machine with envelope sealing and stacking features to send promotional materials, or choose a machine with a scale to weigh and send packages.  The most basic machines have a light scale and a meter only- if you want a feeder tray to send large mailings, you’ll need to look for a machine that has these additional components.

You can also choose a machine with online access, which allows you to you “fill up” your meter online- usually up to $1,000.  Online access also allows you to download current postal rates automatically, so you’ll have access to the most up-to-date-information and avoid overpayment.

Costs
You can’t purchase a postage meter- they’re always leased to businesses, usually for about $20/month.  Postage machine equipment (scales, feeder trays, etc.) can be leased or purchased.  The more complex the equipment you need, the more expensive it will be.  The lease or equipment purchase charges do not include the actual cost of postage that you’ll pay.  You should also consider the cost of supplies like ink, envelope sealant, etc.  Make sure that you’ll be saving enough using the meter to cover it’s overhead costs.

Service Contracts
Most meters come with some sort of maintenance or service contract.  The contract usually covers the meter equipment and any necessary repairs.  Make sure you know the details before you make a purchase, especially if your company relies on outgoing mail for core business practices.  You should know when an on-site repair is necessary, the length of time between a service request and the actual repair, and your share of repair costs, if any.

Using a postage meter is a smart idea for any company that relies on outgoing mail for marketing, correspondences, or even to ship products.  Make sure you shop around, consulting several different leasing companies, before you make your final choice.

Retail benefits
POS systems make transaction processing quick and easy- saving employee time and cutting down on transaction errors.  You can use a POS system as a cash register and credit card terminal in one.  They also allow you to keep track of inventory, sales, promotions, employee work schedules- software can be customized for almost any type of business.  Retail businesses with lots of inventory can especially benefit from using a POS system- you can enter product offerings as they are received, and items are automatically deducted from inventory when they are sold.  You’ll know when to reorder, what you have in stock, and can track sales trends to boost future revenue.

Benefits for service businesses
POS software is available for service businesses, as well.  There’s a range of software available for restaurants, hotels, salons, yoga studios- basically any business.  POS software can process transactions (for example, when customers pay for services) and manage scheduling at businesses such as hotels or salons.  Most systems can be used with customized hardware- for example, POS systems for bars and restaurants can be linked to pour-tracking caps for alcohol bottles, allowing you to see which drinks were ordered, when, and how much inventory was used to prepare them.

Software and Hardware
Software is the foundation for your system- you should always choose it first before buying any hardware components.  Choose an industry-specific software program that you’re comfortable with- ask for a demo or free trial.  The software you choose determines the hardware you’ll need.  You can purchase scanners, terminals, and other items as your software requires.  Make sure you get the dimensions, weight, and electricity requirements for all POS equipment before making a purchase, and try to buy everything from one vendor.

An online search for vendors can turn up hundreds of results, so it might be a good idea to ask for recommendations first before wading through information from hundreds of companies.  You can also use a vendor locator service- ours at Resource Nation screens vendors based on your requirements, so you’ll get search results tailored specifically to your needs.

Costs
POS pricing is hard to determine, because it depends on your requirements.  As a very basic guideline, expect to pay up to $1,000 for a basic computer terminal and transaction processing software.  Keyboards and scanners can cost up to a few hundred dollars, and touch screens can run into the thousands.  Don’t let price influence your decision too much- the benefits to your business usually more than cover the initial costs.

Mix-and-match options
Don’t build a system from scratch by yourself.  POS systems are expensive, so it can be tempting to try a DIY system, with components purchased from different discount sources.  Unless you really know what you’re doing, this usually isn’t a good idea.  Sure, you might be able to get a touch screen for $200 on craigslist, but it might end up costing thousands to program it to work with your software or customize it to reflect your product offerings.  Try to buy everything at the same time from the same vendor to ensure compatibility.

How to get the best deal
You can definitely negotiate when it comes to costs, especially if you’re buying everything from the same vendor.  Here are a few “extras” you can ask for:

• software upgrades (for free or discounted)
• equipment discounts (or free equipment)
• extended contract terms
• maintenance services
• employee training sessions

You can also ask about refurbished equipment, or trade in used office equipment (like keyboards or computer monitors) to many vendors.  It’s a win-win: good for the environment and your wallet.

1. A business loan
2. A business plan
3. A detailed business model or structure

According to Jazzercise founder and current CEO Judi Sheppard Missett, her incredibly successful business didn’t require any of these to get off the ground.  I recently had the chance to talk with Missett as she prepared for the annual conference of the Women Presidents’ Organization conference here in San Diego, and learned quite a bit about what you really do need to start a successful business. 

First, the background:  After dancing professionally, Missett became a dance teacher in Chicago.  She taught students the way she had been taught- critiquing form, using mirrors, and practicing dance techniques.  When students began dropping out of classes, she asked why: as it turned out, none really wanted to be professional dancers- they just wanted the dancer physique.  Missett shifted gears, coming up with an aerobically challenging class that was fun, fast, and a great workout.  She continued to teach when she moved from Chicago to San Diego, and helped pioneer the “fitness craze” on the West Coast.

The rest is history- Jazzercise now has over 7500 franchises in several different countries, its own clothing line, and a video production company that is very successful in it’s own right.  As other fitness fads (Thighmaster, anyone?) have come and gone, Jazzercise has continued to grow.  What’s the secret?

Take care of yourself.

But it’s easy to stay fit when you teach dance for a living, right?  Well, sometimes.  At one point, Missett was teaching between 20 and 30 classes a week- almost to the point of burnout- when she realized she needed to train teachers to keep up with demand.  Missett claims that a balanced mind, body, and spirit connection has helped her stay successful over the years.

Practically speaking, it can be pretty difficult to carve time out of an already packed schedule to fit in a dance class, a run, or a yoga session.  Set yourself up for success by automating business processes and outsourcing when you can- you can shave about 15 hours a month by outsourcing payroll alone.  The body you have is the only one you’ve got- make sure you take care of it.

Find a successful pattern and follow it.

When Missett was growing up, her small Iowa town wasn’t exactly a professional dance hotspot.  Enter her own mother, who recruited dance instructors with the promise of help with studio management and marketing to the dance community.  In hindsight, Missett says she followed this pattern when recruiting her own teachers and building her business.

Your role model doesn’t need to be another company CEO or even someone who’s in business at all.  You don’t even need an actual person as a mentor- following an idea or technique often works, too.  Inspiration is everywhere if you remain on the lookout for it.

Lights, Action, Camera.

“I didn’t even get a business loan,” Missett told me.  And rather than adhere to a business plan, she let the business grow organically based on customer needs.  While this model might not work for everyone, there’s something especially honest and inspiring about a business owner who was so excited to bring a service to customers that she didn’t stop to plan out the “long range strategy” or how she would “monetize” her idea.

True, a task like purchasing POS equipment takes time and research, and having start up cash in the bank can be pretty comforting.  But realize that every business is different- there’s no set process for starting, growing, or expanding- if you feel like you’re not following any of the rules, don’t worry too much- sometimes making your own rules is the best strategy possible.

Make your own luck.

As the saying goes, luck is when preparation meets opportunity.  Be ready for those once-in-a-lifetime chances by honing your skills, but be willing to take risks when you need to. When Missett began teaching dance classes in San Diego, many students were military spouses- some who had moved to other cities wanted to continue the program.  Missett’s husband was familiar VHS video, then a developing technology, and Missett had studied similar subjects in college, so she taped routines and sent them to teachers, an effort that lead to the formation of what is now JM DigitalWorks, a division of Jazzercise.

Don’t wait for luck to strike- make it yourself!  As Judi Sheppard Missett says, “We are all in the right place at the right time, we just need to be aware of it.”

Spring is the prime contest season- most applications are due by the beginning of the summer for 2009 awards.  Here are some of the best upcoming contests- act quick, deadlines are approaching fast!

For Growing Businesses:
Inc. Magazine is looking for the 5,000 fastest growing businesses- those who began operations prior to 2005 and have grown to generate over $2m in revenue by 2008.  The Inc. Magazine contest winners will be invited to a the nationally recognized 500/5000 conference to hear expert speakers, network with business greats, and glean the knowledge and skills necessary to grow your business even further.  Winners are featured in a future issue of Inc. and are highlighted as award recipients on the Inc. website.
Deadline: May 22.

For Smaller Businesses:
Those who are still working toward the $2m goal but have at least $500,000 in revenue under their belt are eligible to apply for the Entrepreneur Magazine Small Business Contest.  Like the Inc. contest, winners are highlighted on the magazine’s website and in a future print issue.  Check out the website for additional requirements.
Deadline: June 15th.

For Great Entrepreneurs:
The deadline for one of the most prestigious business awards, the Ernst and Young Entrepreneur of the Year, is fast approaching.  Accounting and Consulting firm Ernst and Young awards this honor annually, considering business owners across several different industry categories.  See the 2009 contest rules for more details.
Deadline: June

Specifically for Women:
The Make Mine a Million $ Business contest is part contest, part race to the finish line- the finish being $1m in sales for your company.  The M3 contest/race, sponsored by Count Me In, tracks participant process online.  Sometimes just entering is winning enough- most participants see at least 40% sales growth over the course of the contest. Women-owned businesses across 15 categories are eligible to enter.  Prizes include a cash award, discounted and free services, and of course, the satisfaction of hitting the $1m mark in sales.
Deadline: See website for details.

For Everyone:
All business owners have faced a challenge at one time or another, right?  Why not share your experience, and win prizes to boot?  The Business.com “What Works for Business” contest invites business owners to share their own story of a challenge they’ve overcome: whether you hired a web designer to fix an outdated site or designed your own online marketing strategy, other entrepreneurs can benefit from the lessons you learned.  Monthly winners are named based on submissions.
Deadline: End of May

For New Businesses:
Want to test out your business idea?  The Ideablob.com monthly contest is just the place.  Online voters decide on the monthly winner based on a short description of your business idea.  With the $10,000 award, you can purchase inventory, equipment (such as a credit card terminal) or business software.
Deadline: End of May

What are my options?
VoIP (Voice over Internet Protocol) based systems use an internet connection to place and receive calls.  Most smaller businesses choose a basic VoIP package, like AT&T’s business in a box.  You can also choose a hosted service, where calls are routed through an auto-attendant before being routed to your office, cell phone, or computer.  Hosted options work well for businesses with a high call volume.

How much will I save?
It depends on how many long distance calls you make, how your business is structured, and how many employees you have.  Expect to save on long distance calls (they’re not charged at a higher rate) and monthly bills- most service plans run up from $10-20 monthly.  Most business owners are surprised to learn that you’ll save the most by becoming more efficient.  One study tracked the impact on Intel Corporation as they switched to a VoIP phone system, and found a productivity gain across departments between 134% to 500% – a cost savings of $312,000 a year.

What features do I need?
First, look at the features you use currently.  Voicemail, call forwarding, call transfers, and maybe even hold messaging might appear somewhere on the list.  VoIP provides these features, plus a few more: Video conferencing, one-click dialing, call tracking, and forwarding to mobile locations are all options that might improve your communication with employees, vendors, clients, or customers.

How do I find a provider?
You can start by asking around or checking out the websites of some of the larger or well-known companies, such as Vonage.  Many business websites (like ours, Resource Nation) provide list of vendors that meet specific needs- for example, those that serve certain geographic areas or those that cater to small or medium sized businesses.  All of the providers on our site are pre-screened, in order to make sure you’re given only names of trustworthy and reputable providers.  Once you’ve got a list of prospects, ask for itemized quotes and compare costs.

Can I negotiate for a better deal?
Of course!  One of the best ways to save is to ask for additional features or upgrades as a part of your service agreement.  One of the easiest “freebies” is equipment- salespeople are usually authorized to include adaptors or VoIP phones in order to close a deal.  The best time to negotiate is at the end of the month, year, or sales quarter, but asking for extras never hurts no matter when you’re shopping.

What’s involved in the setup process?
VoIP providers require you to sign a service agreement.  Review it carefully, make sure you know all of the particulars, such as “downtime,” monthly charges, and security measures. Depending on which type of service you choose (hosted or non-hosted) you’ll probably need to have a technician come to your office to test your internet connection and install the system.  This can be done quickly, in as little as one afternoon.  Typically, the whole process, from shopping to using the system, takes about 1-2 weeks.

Longer Storage Time.
How long physical “hard copy” documents need to be kept depends on your industry.  Businesses often choose to keep files well beyond the time limits dictated by professional standards.  Electronic storage makes long-term storage more feasible: Instead of paying for storage space off-site, you can keep electronic copies on hand at your office for a longer period of time.

Improved Document Management.
Copier machines with scanning and fax capabilities can track documents, paper use, and even copy volume by client, project, or employee department.  Improved document management is especially helpful for businesses that bill clients at an hourly rate or for materials costs.  With electronic storage, it’s easier to get and stay organized.

Good for the Earth.
Reducing paper consumption is one of the easiest ways to “go green.”  Many are surprised to learn the environmental impacts of making and using paper: Did you know that the paper industry is the single largest consumer of water used for industrial activities?  Paper makes up 70% of office waste, and by some estimates nearly half of total waste products each year.  Eliminating paper consumption at just one office can make a very real impact.

Good for your Wallet.
Using electronic document storage means that you print when you choose, not every time you need to read or file a document.  This extends the life of your office copier and saves on supply costs.  The less frequently you purchase paper, ink, toner, and other supplies, the more you save.

Switching is Easy.
Converting to electronic storage is easier than most people think.  All smaller businesses need is efficient equipment, such as a scanner and printer copier with network storage capabilities.  Businesses with a large volume of documents can hire a company that specializes in converting documents to electronic format.  Whichever method you choose, make sure the system is easy to work with once you convert.

One option is a merchant cash advance.  Cash advance transactions work a bit like loans- you apply, agree on rates and advance amounts, and then begin repayment.  The “advance” that you receive is paid back automatically out of your daily credit card sales.  You have to meet certain qualifications to be eligible, namely, accepting credit cards.  Many providers also require that businesses have a solid financial history, existing equipment or property leases, or certain credit scores to qualify.  Still, advances are much easier to qualify for than traditional loans- in some cases up to 90% of applicants are approved for amounts into the hundreds of thousands of dollars.

If this sounds easy, or too good to be true, you’re half right.  Merchant cash advance transactions can be expensive, carry onerous repayment terms, and are sometimes pushed on businesses that barely qualify by less-than-honest lenders.  Still, an advance might be the only financing alternative available to some businesses.  Here’s a practical rundown on business cash advance providers that can help you choose between the good, bad, or downright ugly:

THE GOOD:
Good providers are known by their reputation.  To check out how a provider stacks up, see if they’re registered with the Better Business Bureau and find out if any complaints have been filed.  Many merchants file complaints against unscrupulous providers with the Federal Trade Commission, another place to check.  The North American Merchant Advance Association, a self-regulated organization of merchant advance providers, also provides information about industry standards and practices, and allows for complaints against providers.

In addition to these sites, it never hurts to ask for references directly from a provider or to do a quick online search for more information.  Good providers don’t charge application fees or guarantee automatic approvals.  If a provider has a “clean” record on all these counts, they’re probably a safe bet.

THE BAD:
Even if you’ve checked references and the company seems like a reputable advance provider, you’ll still need to make sure that your individual service agreement is fair.  Here are a few red flags to look out for:

• Hidden fees: Monthly minimum amounts, penalty fees, and other charges add up very quickly.  Make sure you’re aware of all possible fees before signing a service agreement.

• Merchant account compatibility: Reputable companies generally have agreements with different merchant account providers- you probably won’t need to switch your merchant services account in order to get an advance.  Be wary if you’re asked to do so.

• Balloon repayment: Providers usually take a percentage of daily sales until the advance is paid off.  If a provider requires full, or balloon, repayment for any reason (daily sales below a certain amount, a certain date passed) be extremely cautious about entering into an agreement.

THE UGLY:
While most merchant advance transactions are smooth, fast, and simple, they can get complicated if you agree to certain provisions in your service agreement.  Here are a few things you should avoid:

• Pledging collateral, or giving the provider access to bank accounts as reserves for repayment. Things can get ugly pretty quickly if you aren’t able to repay the advance as scheduled- providers can take money directly from your business checking account, seize, or place liens on business property, and take other drastic actions.   Make sure you’re protected by the contract you sign.

• Flexible retrieval rates. These allow the provider to take more out of your daily sales amounts than is safe to continue operating your business.

Merchant advances can be a beneficial source of alternative financing for businesses that need cash for operations, business opportunities, or other expenses.  Working with a reputable provider is one of the best ways to make sure you get the financing you need without incurring additional costs, penalties, or fees.

You don’t need to be a retailer or own a store to accept credit cards -many of the businesses that use our vendor matching service are small, professional services companies such as dentist offices, massage therapists, or freelance consultants that want an easy and reliable way to charge customers for services.  In helping these businesses find what they’re looking for, we’ve come across quite a few creative ways to use credit card processing services:

Wireless Accounts: A credit card machine you can take with you to community events, farmers markets, trade shows, concerts- you name it.  If you sell merchandise at your speaking arrangements, CDs when you perform, or take “pre-orders” for merchandise you’re promoting, a wireless terminal is a great way to make it easier for customers that don’t carry cash to patronize your business.

Online billing: Even if you don’t technically sell anything on your website (like products or downloads), you can still allow customers or clients to make payments online.  The convenience factor is a big motivator to pay quickly- you can even e-mail invoices with a link to the online payment function.

Ecommerce: When most people think of credit card processing, this is what comes to mind.  For a traditional ecommerce website or any business that sells products, services, or downloads online, an ecommerce merchant account is a must.  Most merchant account providers offer online-only accounts, or online options for retail businesses that have a brick-and-mortar business as well.

Merchant advances: A merchant advance is a financing transaction that’s a little like a “payday” loan.  In exchange for a cash advance, you sell a portion of future credit card revenue to a cash advance provider.  Repayment automatic- the company accesses your merchant account and skims a set percentage of your daily sales off the top of each batch settlement.  While these transactions can be expensive, they can be very convenient for businesses that won’t (or don’t want to) get a traditional loan, or those that need money quickly.  There is usually a minimum credit card sales requirement for this type of advance, and you can’t receive it unless you are an operating business.  (I’ll post more detail about merchant cash advance transactions next week.)

Accepting credit cards is one of the easiest ways to increase your customer base, especially if you have an online presence.  “Impulse” payment isn’t necessarily a bad thing- offering your customers an easy, convenient option to pay for products or services is always appreciated.