For Las Vegas entrepreneur Richelle Shaw, dating three men in three cities didn’t add up to a winning proposition at first. No, this isn’t a Sex and the City rerun; it really happened and, after a few major bumps in the road, there is a happy ending.
Forty-year-old Richelle Shaw has a green thumb when it comes to turning a company into a mega-success. And it doesn’t matter if it’s a business she owns or someone else’s. For starters, finding out that more than 300,000 Americans lose their phone service each month because of missed payments was the premise for Shaw’s company.
As fate would have it, she built a multimillion-dollar company, and nowadays many fledgling entrepreneurs have her to thank for turning their businesses around. How-to advice can be found in her book, “How to Build A Million Dollar Business in Las Vegas Without the Casinos,” or you can check out Shaw’s coaching program. To read a free chapter of her book click here: FREE CHAPTER
No, this isn’t a sneaky sales pitch because Shaw isn’t your run-of-the-mill entrepreneur who turned to coaching to make a living. Quite the opposite, this single mom is incredibly successful in her own right and has a passion for helping others attain fame and fortune.
If you read the answer to the first question I asked her, you might be as curious as I was. And it takes a lot to get my attention. Bottom line, I just had to know. How can I be like Richelle?
Your six-employee firm reached $2.37 million in sales last year, what inspired you to start your company?
SHAW: I am the only female African-American public utility in the nation. I own FreshStart Telephone. I was dating three men in three different states and had a high telephone bill. I was selling advertising, and the vice president of a local telephone company asked me to come and work for them. I did–was promoted six times in five years and grew the company from $300,000 to $36 million. I ended up buying the company from my boss. Lost it all after the 9/11, World Trade Center tragedy and rebuilt it back to $1 million in about six months.
What is unique or special about your business that gives it an edge over your competitors?
SHAW: I understand how to market. The customers drive my business. Actually, the results from marketing campaigns drive my business. Not what I think, not what my friends or staff think.
Recent breakthrough?
SHAW: I understand that what I did was unique, and it was actually a template for business building. People kept asking me how did I do it, and I started coaching and consulting entrepreneurs to do the same things. The best thing is that now I have consulted with entrepreneurs in more than 47 different businesses and determined that no business is different. My strategies and techniques work for any kind of business.
Were there any challenges that you experienced along the way that appeared to be more difficult because you are a woman?
SHAW: When I first decided to buy the business, I went to SBA. I was approved based on my credit and experience; however, they did not like the business. SBA told me that I would never be able to compete with AT&T. Eight years and almost $100 million in sales between the two companies, I think I learned how to compete. Also, I found a venture capital group [that] was going to give me $5 million; they asked for an engagement fee of $75,000. I wired the money and never heard from them again. Just dumb! So when I bought the company I had to start with no money in reserves. I created a deal with my boss to finance the company with receivables, but I had to get new business fast. We sold off the less profitable divisions and laid off staff to make it work. Then, after 9/11, I was forced to start over. This time, with no customer base that I could leverage, no cash and no credit because I had to file bankruptcy; so I had to use my creative sales and marketing skills to rebuild. The best thing to ever happen, because when things turned around, I did not owe any loans or half of my company to any other investors. Were these challenges because I was a woman, I am not sure, but they were difficult.
Did you need to have a certain mindset to achieve success?
SHAW: I have had every obstacle I think there is, including being diagnosed with a pulmonary embolism. I tell entrepreneurs when I speak that I was young (27), black, female and a little chubby. What did I have to lose? I just kept my head down and kept working. Even after I lost it all. Was it hard? Yes. Did I cry? Yes. Did I stay in the bed for a week? Yes. But then my mind started working again, and I went back out there to put another deal together. I also became a true student of marketing. Not the kind they teach in college. . . . Funny story:
Went to UCLA and graduated with a history degree. So after my business failed, I thought maybe it was because I did not have an MBA. So I enrolled at UNLV for classes. Because I had no business classes, I had to take basic business classes. At the time I owned workz.com that I purchased out of bankruptcy court, and it contained [more than] 4,000 articles about small business and how to grow online. Back to UNLV, I opened the textbook and went to the internet section and it said–a great place to find resources and information about starting a business online is workz.com. What? The same website I owned, in the textbook? I decided that as an entrepreneur I could now focus on what works, allow the results to rule (not the textbook) and keep doing what I had been doing.
Has the media picked up on your story and what have you done to attract them?
SHAW: Yes, I have been featured in USA Today, Wells Fargo Online, Black Enterprise, Entrepreneur and Smart Money. Then, after USA Today and Smart Money, I began to write my book, “How to Build A Million Dollar Business in Las Vegas–Without the Casinos.” It is about my successes and failures building my business, and a step-by-step guide to build a business from scratch without money, without a big client and the essential fundamental skills to make it work every time.
Can other individuals reproduce your business model?
SHAW: Yes, absolutely. They can reproduce the business model even if they are not in the telecom industry. I have helped entrepreneurs including a performing arts school, a gynecologist, urologist, music store, CPA, solar screen provider–even a psychic!
What resources were most helpful to you when you were starting your business?
SHAW: Lots of books! I read daily. Lots of marketing books–anything by Dan Kennedy. The Ultimate Marketing Plan is my favorite.
What ways have you found to be most effective in marketing your product or service to get sales?
SHAW: I practice what I call the 5 Star System. It starts with the three R’s. Reactivation, Retention and Referral. Each one of these has a system to bring in business daily. The fourth piece of the star system is new-client acquisition through lead generation, and the fifth piece is a multi-media marketing funnel.
I don’t just do one thing. I don’t know one way to bring in 84 customers but 84 ways to bring in one. Currently in the telephone business I have 84 ways to bring in a new customer. From joint ventures with bankruptcy attorneys to charity events. It all works. What took my business from ordinary to extraordinary was when I implemented them all at the same time each month. This is what I teach business owners to do now.
What tips can you give others who want to embrace their dream but don’t have the confidence or who feel they don’t have what it takes to succeed?
SHAW: You have nothing to lose! If you are waiting for the perfect time, perfect never comes. I was waiting for the perfect time to have a child and it never came–but I was blessed when I least expected it, and everything is just fine. The same with the business. Just start! Every day you wait, you are losing money.
As you know I love getting feedback, so let me know how Weekend Entrepreneur can continue supporting your goals and aspirations with the best content around.
Don’t ask me what happened because I don’t know. But today, June 26, 2008, I was planning to watch Suze Orman on The Oprah Winfrey Show, and I missed it. In case you missed her, too, I heard it was “must see TV” at its best.
Besides the fact that the show was great, there is a freebie–yes, that’s right, a free gift you can get if you go to Oprah’s website. However, you’ve got to go there before the free book giveaway expires. My dear friend Nita, who called me, says the deadline to get your free book in English or Spanish is Friday, June 27 at 5 p.m. Pacific Time (8 p.m. Eastern and 7 p.m. Central).
Now before you get all excited, this is a downloadable book. So you don’t have to worry about peeking out of your window to see if the cute UPS guy is delivering a copy of Women & Money to you. LOL. Although if you like instant gratification, you can have it if you are reading this before the deadline. I already got my free copy and what I loved is that you don’t have to give your e-mail address to get your copy, just click and voila! It’s on your desktop.
By the way, I just happened to notice a little note on Oprah’s website that says:
“This book is copyrighted. You may view and download the file, but you may not copy the file or share or forward it to any other person.”
Have fun reading Women & Money: Owning the Power to Control Your Destiny by Suze Orman. You’ll see why this is one of The New York Times bestseller favorites. Click here to visit Orman’s website.
In case you got here too late, my friend Chellie has a freebie… check out http://www.chellie.com/30-day-signup.html. Several of my friends missed the deadline and I felt bad so Chellie’s book will be our plan B.
Cheers!
Michelle
“Take care of the minutes, for the hours will take care of themselves.”
~Lord Chesterfield
Breaking free of the monotony of a 9-to-5 job may not be a piece of cake for most of us. But Pamela Slim is elated that she secured a nice little niche for herself around the concept. Already her popular blog, Escape From Cubicle Nation, has spawned a book by the same name, but you’ll have to wait until spring 2009 to read it.
Slim has trained with “the best-known life coach in America,” New York Times bestseller and O Magazine columnist Martha Beck. She is married with three kids and lives in Mesa, Arizona. “Entrepreneurship at its heart is aligning your purpose for being on earth with a business idea so compelling that you simply must do it, despite the fears that hold you back,” says Slim.
A pro at helping wannabe entrepreneurs jump ship, Slim took a little time out of her extremely busy writing and coaching schedule to talk about her journey. Role model?
Slim: I love my mentor, Martha Beck, for her great contribution to the coaching field through a number of books (Finding Your Own North Star, Steering by Starlight) and ongoing magazine articles (O Magazine). I love how she makes writing a key part of her business, as well as how she truly lives her coaching principles.
Personal mantra?
Slim: If it tastes like liberation, it must be a good direction.
When did you start your business, and what inspired you to become an entrepreneur?
Slim: I started my business in 1996. When I first got into consulting, I thought I was just doing project work between jobs. But as soon as I started working for myself, I got lightening bolts of inspiration and realized I was made to be an entrepreneur. I have never looked back!
What tips can you give others who want to embrace their dream but don’t feel they have the confidence to move forward?
Slim: Creating an ideal life out of a place where you feel very stuck is a series of very small, incremental steps. Don’t worry about getting an entire business model designed and launched; do one small thing and see how it feels. When you get positive validations that a. You are capable of doing new things and b. It is possible to make progress, you get energy to continue the journey.
I also encourage people to develop a circle of supportive friends and mentors. If you try to do everything alone, you will feel very scared and unsure of what you are doing. By connecting with people on blogs, Twitter, social networking sites and plain old in-person networking events, you will gain courage.
Tell us about your product and what it was like to take an idea from concept to getting it up and running?
Slim: My business has changed since I first started it 12 years ago. I started as a consultant to large corporations, in the areas of training and development, management coaching and marketing communications. I got immediate validation that I could succeed as a consultant the first year I was in business when referrals started to come from my clients. In the almost 10 years that I did consulting, I never made a cold call.
In the most recent iteration of my business, I offer three things: coaching sessions for individuals, training for other coaching and entrepreneur companies and writing. I knew there was a market for my coaching when my blog really took off. Clients came calling without any effort, all attracted by what I was writing about.
Have you noticed certain advantages to being an entrepreneur versus having a day job?
Slim: It has been so long since I had a day job I can hardly remember. The advantages of being an entrepreneur are so many. Primarily, working for myself fits who I am as a person. I like flexibility, creating new things and not being stuck doing the same thing for a long time. I also have loved being able to flex my business as my life changes. I have had two kids in the last three years, so I was able to totally change my business model in order to work much less and stay home instead of travel the world. All this without having to have painful negotiations with my boss.
How long did it take before your business became profitable?
Slim: Mine was profitable the first month. Knowledge-based businesses are so much easier than those with great infrastructure costs!
Were there any challenges that you experienced along the way that you had to overcome?
Slim: I have had to overcome a lot of challenges. When I first started, I felt I was so green that I didn’t always have the answers my clients were looking for. I soon learned to rely heavily on mentors and to only worry about the project in front of me. As I completed more and more successful projects, I gained confidence.
When I started my coaching business, I had to learn everything about internet marketing from the ground up. None of my clients came from personal relationships as my consulting business had. So the learning curve was steep!
Can you share a few resources with us?
Slim: I love Robert Middleton’s site, actionplan.com. He focuses on independent service professionals like myself, and has wonderful information about creating a marketing program. I also often recommend startupnation.com to new entrepreneurs, as it has a wealth of great, free information.
It’s amusing to me how the terms “early adapter” and “early adopter” are often misused and confused. Here’s my take on it. If you were one of the Harvard students who initially used Facebook, then you’re an early adopter. You’re the first to ever use Facebook. (”Adopt” definition: “to take up and practice as one’s own”). It started on Feb. 4, 2004, when a Harvard student named Mark Zuckerberg launched Facebook, which was limited to Harvard students.
Fast forward to 2006. Facebook spread to other college campuses and, in September of that year, it was accessible to anyone with an e-mail address. Those people were the early adapters because they took it and adapted it to their own needs and interests.
Don’t laugh at me because I don’t fall into either category. Let’s just say when it comes to technology, I’m a late bloomer. But I’m willing to learn. Over the weekend I officially activated my Facebook page. Here’s the irony: I don’t recall ever signing up for Facebook but I guess I did, because my dear friend Michelle told me she helped me. And to my amazement I logged on and there was my Facebook page with a picture of me and, even more shocking, I discovered several people who had invited me to be their friend.
A producer sent me a note last August after I was a guest on her radio show. Which reminds me: Before any of this started, I received a Facebook e-mail invitation from talk show host Rolonda Watts. Now this one had me totally perplexed because I couldn’t figure out how I got invited, so I just left the e-mail sitting there. Honestly, I was speechless. Watts and I have a few mutual friends, but since I didn’t know how Facebook worked until now, I couldn’t respond.
It didn’t take me long to start checking my Facebook account, and I have 50+ “friends.” I discovered that Rolonda Watts has 436 friends, and NewsMax journalist James Hirsen, whom I know from my days of producing the “Dr. Laura” show, has 2,711 friends. Also, I located my former Entrepreneur.com editor Francine Kizner, and she has 401 friends. A week ago I didn’t understand the value of Facebook. No way could I connect with this many people in such a short period of time, unless I were at a party.
Over the past few days I have found myself entering a few names of friends and associates. It’s a cool way to connect, see their faces, send little notes back and forth and meet new people to network with.
If the Web 2.0 bug hasn’t bitten you yet, it might be time to check out a new sandbox. And if you don’t know what Web 2.0 means, I won’t tell anyone. But you may want to check out the explanation on Wikipedia. Facebook is far more popular than I had ever imagined. More than eight and a half million pictures are uploaded onto Facebook daily, and it has about 42 million members worldwide.
I’m new at Facebook, so if you have any tips, I’m all ears! And if you’re a newbie like me, let’s learn together.
A year ago blogging was the last thing on my mind. Believe me when I tell you, I was clueless. So you live, and you learn. Who knows what the heck I’ll be doing next year. But if we’re hanging out on Facebook, it will be a lot easier to get the word out about new trends that are going on. Hey, I just thought about someone else I’m going to try to locate on Facebook tonight: Richard Laermer. His new book is called “2011 Trendspotting For The Next Decade.” This Facebook thing can get pretty addicting.
Feel free to introduce yourself to me on Facebook and let me know that you read my blog. I’ll be back to write about my adventures with Facebook real soon.
When it comes to women and business loans, Sue Malone, president of Strategies for Small Business, is on a mission–and her six-year track record proves it. She says, “I understand women and their needs, and that is why I am the largest SBA provider to women in the nation, including all of the lending programs by SBA–24 percent of all SBA loans are to women.”
Malone is dedicated to the small businesses of this nation, and she has funded 22,000 of them. It just seemed right to ask Malone a few questions that would give us an insider’s prespective.
Many of the women I have interviewed here at Weekend Entrepreneur have decided not to use a bank loan to get their home-based business up and running. What are your thoughts, and is this a trend?
Malone: As a general proposition, women-owned businesses are well-planned and quite fiscally sound. In my experience, after working with thousands of such enterprises, they tend to be much more organized and confer more due diligence than others. Like any business, they first seek financing through family and friends, followed by refinancing their homes.
At that moment in time, the business will typically finance through credit card debt. Unfortunately, they do not realize these debt tools carry high interest rates and fees that substantially add up each month. This can really dampen cash flow.
When this is exhausted, they take a deep breath and walk into their local bank. This is when they run into their first major fiscal impasse. When they do not receive the funds requested, their plans and opportunities can stall. They either give up or limp vigilantly forward.
I have noticed there is, in fact, a trend away from traditional financing through local banks. The real question is, why? It is seldom a factor of interest rates because unsecured business loans are well below credit card rates. It is because of the traditional conservatism of banks toward new businesses. They typically require security (first and seconds deeds of trust with adequate equity), rigorous credit, and financials and detailed business plans. Many will not even touch a business until it has been operating for a profit for four or more years.
Also, women have been told “no” by so many bankers they are very shy about approaching them–even though the fastest-growing segment of small business owners is women! One day the banking community will realize who its market truly is.
What amounts do you typically loan to business owners?
Malone: The average amount is $15,000, which in today’s market is a monthly principal and interest payment of $189. This is without any prepayment penalty, and they can come back in six months and request another full $25,000 without paying off their first loan.
What do you charge for that loan, and what is the interest rate? Malone: There is no collateral, no tax returns or business plans. This is an unsecured business loan, which means the loan is in the business name. The interest rate is prime plus 4.5 percent. The program has been around since 1995, and this is the lowest it has been due to falling interest rates.
What are the types of loans that you provide called?
Malone: SBA Community Express.
Are these loans at risk of becoming extinct soon?
Malone: Sadly, yes. As of Friday, May 16, the U.S. Small Business Administration has placed caps or limits on the number of loans this program can fund. The SBA has finally delivered a product that is low on paperwork, simple, quick and at low rates. It now decides to limit it! As an example, the average number of monthly loans before the cap in FY 2008 was 800 from the top six lenders. After the cap, it is approximately 200 per month. The SBA has all but shut down the program. These loans are targeted to women, minority and veteran-owned businesses and carry with them free technical assistance.
Please contact your senator and urge [him or her] to enact H.R. 1332, which would make the program permanent and remove the caps. This bill was approved by the House by a vote of 380 to 45 on April 25, 2007, and has been with the Senate Committee on Small Business ever since.
What are the biggest challenges that entrepreneurs have when it comes to getting a loan, and what do you offer that is different?
Malone: The biggest challenge is the traditional reluctance to loan to small businesses, startups or home-based businesses. This has become even worse lately. Some banks have stopped making loans to small businesses. We offer a totally different perspective. These loans are specifically targeted to small businesses, including startups. It is the SBA’s way of engendering more small business success because of the large number of businesses being created each month.
Let me give you some statistics. In early April 2008, the Labor Department announced that the economy lost another 80,000 jobs in March. This brings the tally in the first quarter of 2008 to total job loss of 232,000. From 2000 to 2005 the number of non-employer businesses grew by more than 900,000 per year. This equates to almost 78,000 new non-employer businesses launched.
It is evident from the above that the new net jobs created in the United States during this period stem from self-employment. This punctuates the importance of small businesses as an integral part of the U.S. economy.
With this in mind, here are some interesting statistics:
95.1 percent of all U.S. businesses are micro-businesses, firms with 10 or fewer people, amounting to 25.1 million firms.
77 percent of all U.S. firms are non-employer businesses, mainly firms with no employees.
What is the default rate?
Malone: Community Express is also successful from a fiscal standpoint. For FY 2002 through 2007, the delinquency rate was only 7.8 percent.
How long do they have to pay your company back?
Malone: The loans are principal and interest fully amortized over 10 years. However, there is no prepayment penalty and they can be paid off earlier.
Are there businesses that you cannot fund, and why?
Malone: The SBA has strict eligible business requirements. Some of the businesses that cannot be funded are: nonprofits, speculative real estate, a business where you are handling your own investments, gambling and businesses of a religious or sexual nature.
Any tips for a business owner who has a low FICO score or a bankruptcy?
Malone: One of the factors in processing the loan is credit standing. It requires satisfactory credit. Our lender does loan to bankrupt individuals, as long as they meet three requirements: 1. The bankruptcy has been concluded, 2. [The individual has] re-established credit, and 3. There is a satisfactory payment history after the discharge.
Favorite community/philanthropic project?
Malone: I have had the pleasure of being involved with fundraising through the American Cancer Society for almost 15 years. I have piloted the first ever for-profit/nonprofit collaboration [that] donated its income to charity–in this case, a Dreyer’s Ice Cream parlor used for inner-city youth programs. As co-chair, I was a successful in raising $800,000 in one night at a cancer league fundraising dinner in Oakland, California. I have been on the National Gala Cancer Society Task Force for the last six years and we have been responsible, in the aggregate, for raising approximately $25 million for cancer research and prevention.
Your mantra?
Malone: Never, never give up, and always believe in yourself!! If you do not do it, someone else will.
Recent breakthrough.
Malone: The breakthroughs have been almost continuous. Every week, I am opening up new geographical areas and trying to serve different groups of people.
Role model?
Malone: Golda Meir, Margaret Thatcher. Both proved women are true leaders. Katherine Hepburn because she believed in herself, and any woman who seizes the opportunities which life brings.
What’s next?
Malone: Save the program and make it permanent. Then make it available to more and more businesses.
When I told my daughter that Austin must be doing something right, she said, “Austin Powers?” Once I stopped laughing I was able to share stories about a few new business owners I met in Austin, Texas, and how they possessed a refreshing burst of enthusiasm that I wanted to bring back to Los Angeles.
The first entrepreneur I met when I arrived was Penny of PennysPastries.com. She sells the tastiest chocolate chip cookie mix on the planet from her website. With flavors such as Chocolate Chip Indulgence, Peanut Butter Obsession, Black Magic and Chocolate-Chocolate Cherry, you’ll undoubtedly find something to delight your palette.
And I would be remiss if I didn’t send a shout out to one of the entrepreneurs I met when I was leaving. Sue Rostvold of VerySuperCool.com gave me a box of greeting cards. (Yes! They really are cool.) Her tagline for VerySuperCool.com is “Green greeting cards with soul, because every dog has a story.” My friends fell in love with these adorable cards the moment they laid eyes on them. The heart-warming picture as well as the sayings inside each card makes them memorable.
Here are some of the vendors Jeannette Peten, CEO of BiGAustin, had on hand to display their unique products at the BiGAustin Marketplace last month. It’s always nice to know what entrepreneurs are doing in various parts of the country, so I will continue to share my finding with you as I travel to other cities.
Mileagelogger–Manuel Fernandez
Whether you’re a sales rep, small business person or travel for your company, to claim your miles from the IRS you need to track your miles for the IRS. Finally, Mileagelogger has made this easy. Mileagelogger created and offers the world’s first and only wireless GPS-enabled system to track those important miles. It provides IRS compliant business mileage log books without you lifting a finger. Make your life easier by visiting mileagelogger.com.
House By the Side of the Road–Susan Belisle
For several years Belisle owned and operated a small bed and breakfast in Baltimore, Maryland. And although the rooms were quaint and the customer service fabulous, guests kept coming back for Susan’s special gingerbread pancakes and waffles. After her guests requested a way to make her morning treats in their home kitchens, Susan decided to work with a professional blender to turn her from-scratch gingerbread pancakes into an easy-to-use mix. Now living in Austin, Texas, Susan offers her mix under the Morning Sunshine brand. Available in a 2-pound, beautifully designed copper-colored pouch, her mixes are available online at gingerbreadpancakemix.com.
Chocolatecture - Kathleen Grandfield
My gift from BiGAustin was a lavish gift basket made by jewelry designer and Certified Chocolatier, Kathleen Grandfield. It was delicious and included an eclectic mix of chocolate items including hearts, musical instruments and bats. Her website is kathleengrandfield.com Dsdel Ideas–Deborah Evans-Lombe A gifted artist, Evans-Lombe uses her graphic design and fine-arts background to offer a full line of pet cans that celebrate the loving attachment between owners and their pets. Deborah also has a line of original pieces and limited-edition, signed prints all executed in black and white. This series, called Accordance in Black and White, is stunning in its simplicity while also celebrating and respecting diversity in our community and the world. Visit dsdelideas.com.
Zhi Tea–Jeffrey Lorien
We heard it repeated time and again at the BiGMARKETPLACE: The Zhi Tea experience was not to be missed. With beautifully designed tins of loose teas, Zhi Teas are smooth, pleasant and unexpectedly delightful. All teas offered by Zhi Tea are organic and fair trade gourmet loose teas. They also offer fabulous steeping devices. zhitea.com.
Mexican Masterpieces LLC–Julieta Alcantara
Hand-loomed and hand-embroidered pillowcases, wonderfully colorful throws and thoughtfully produced table runners in vivid colors are the focus of Mexican Masterpieces. This small company offers the best selection of hand-made products, elaborated by Mexican artisans using pre-Hispanic techniques. Alcantara’s carefully selected pieces are as much a history lesson of a people as they are beautiful, sincere works of art. mexicanmasterpieces.net.
Keynamics LLC–Greg Bright
Does your back ache from sitting too long in front of your computer in an uncomfortable chair? How about leaning over your laptop until your shoulders feel stiff and painful? Greg Bright addresses these common problems with his line of ergonomic office products, innovative laptop stands and BodyBilt chairs. With Bright’s products you’ll start to feel more energized immediately. He has a great selection at keynamics.com.
Do you have a unique product or service? Let me know because I am always interested in hearing about what entrepreneurs are up to.
No matter how many success stories I hear, I still get excited! Not only am I happy for the entrepreneur, but I also feel a sense of hope and excitement for people who may read a particular story and get going with their own dream business.
Many dream of starting a business, but unfortunately not all dreams come to fruition. Jaime Bird is the exception. She found the right guidance at the right time in her life from Heather Ledeboer of Mom4Life, whom I secretly nicknamed the Fairy Godmother to Mompreneurs.
Jamie recently sent me the following e-mail about the steps she took to launch her business. It is remarkable that she started out not knowing how to sew, taught herself, and then began designing and selling adorable clothing for babies.
Dear Michelle,
I started MiniMe BabyGear after my son was born–largely because Heather Ledeboer opened my eyes to the wonderful world of selling online! I had no vision of where I was going; in fact, I did not even have the first clue about how to sew a stitch at the time. I was determined, however, to do something that would allow me to stay home while contributing financially to my family.
So I packed up my mom’s 30-year-old sewing machine, lugged it cross-country back to my home in California, and set out to the library in search of a good how-to book. Hundreds of hours later, I created six key baby products to offer up for sale. Back to the library I went to inhale “Frontpage for Dummies,” $95 for my webhost, and a huge fear of failure on my part. I had no idea what I was doing, and was praying that I would just make my money back. I gave myself an entire year, not realizing how ridiculous that time frame was. After reaching that the first month, I needed a new focus. Mom4Life started carrying my products, Heather suggested a few others for me to sew that moms would enjoy, and the business and product line really grew from there.
This past summer, I decide to manufacture my biggest seller–the Wet Happened? wet bag. Designed to hold items such as soiled clothing or bibs, potty-training accidents, dirty diapers or wet swimming suits, it is fashionable, reusable and environmentally friendly. As more and more retail stores have started carrying it, everything else has been nudged out and it is becoming my sole focus and vision.
I feel really blessed to have the opportunity to stay home with my son while doing something that I am so passionate about. I agree with Heather that the hardest part is the juggling–and lack of sleep At the end of the day, though, I am thrilled to be in the baby business and am inspired so often by other moms and their stories. Thanks for sharing them!
P.S. I am very very sad about the news I just heard via e-mail from a friend of Heather Ledeboer ’s concerning her recent pregnancy and the fact that she lost the baby. Although I don’t know any other details about what happened, Heather’s blog says that she and husband are making funeral arrangements for their baby Sawyer.
Heather’s blog: http://blog.mom4life.com/
Heather’s e-mail: Heather@mom4life.com
I know how difficult this must be for Heather and her husband as well as for their two children. I am praying for them and I know that with her family close by she is surrounded by lots of love and support.
Hello, Michelle Anton here. This Friday, April 18, is BiGIDEA Day in Austin, Texas, and yours truly will be there. If you attend, you’ll be a part of my 90-minute interactive workshop, “Your Million Dollar Message.” It is designed to help you define your unique message. You’ll learn the secrets to effortlessly create advocates, believers, supporters and followers. Doors open at 8:20 a.m. for breakfast, and my workshop begins at 8:40 a.m.
Next on the agenda at 11 a.m. is the BiGIDEA Day luncheon. I am the keynote speaker and emcee, so I hope you’ll join me and the BiGAUSTIN family for an entertaining and exciting experience. This is where we borrow a page from American Idol in selecting a winner for the business plan contest. Three companies will be judged, and $5,000 will be awarded for the best business plan.
Finalists will be voted on by the audience, and the winner will be announced during the BiGIDEA Day luncheon, where more than 500 community supporters, corporate leaders, entrepreneurs and government officials will be in attendance. We’re going to have a wonderful time, and I wouldn’t want you to miss this for anything in the world.
For more details, call the Big Austin office at (512) 928-8010 or visit the BiGAUSTIN website.
About BiGAUSTIN:
BiGAUSTIN was founded in 1992 by Jeannette Peten as a city-funded organization designed to help break down the barriers for people to start their own small business, particularly low- to moderate-income minorities. In 1995, BiGAUSTIN obtained its 501(c)(3) nonprofit status and, by 1996, had begun independent operations. Today, BiG obtains its funding from a variety of public and private sources and is governed by a fully independent board of directors.
Vision BiGAUSTIN fosters economic development as the resource for small businesses to stimulate prosperity.
Mission BiGAUSTIN assists small businesses to successfully grow by providing comprehensive education, tailored business counseling and flexible loans.
Four moves, two babies and a personal illness didn’t deter this woman from pursuing her dream of being a successful mompreneur. So if she can do it, what’s stopping you?
When Debbie Savage combined her love, heritage, fashion and babies into a jewelry company, the unexpected happened. Her company,Baby Emi Jewelry, which she affectionately named after her oldest daughter, landed on the pages of InTouch Magazine and on the Celebrity Baby Blog. Why? Because her Cambodian Jingle Bells anklet was recently sighted on one of Hollywood’s cutest babies!Photographs featured Heaven Rain, daughter of Brooke Burke and David Charvet, wearing Baby Emi Cambodian Jingle Bells jewelry at her mommy’s baby shower in Beverly Hills. Other sightings include The View’s Celebrity “Bump” Bag, when the producers televised a baby shower for co-host Elisabeth Hasselbeck and at the MTV Movie Awards Celebrity Gifting Suite.
Savage has generously shared how she kept going when the going got tough, the turning point for her business and the people and values that inspired her to get started. And although Savage’s tagline is, “Glamour for pint-sized people,” she’s not just another pretty face on the fashion scene. Savage is on a mission to help others by giving back to organizations that help children in need. Words she lives by: ” ‘Pay it forward baby!’ That is our motto here at Baby Emi Jewelry because we sincerely believe that giving back is the best reward in life.”
When did you start your business and what inspired you to become an entrepreneur?
Savage:Baby Emi was started well before its online storefront graced the web. It took a few years to create the business and, finally, when the timing was just right, Baby Emi launched in April of 2006. My passion to become an entrepreneur was instilled by my mother.She nurtured an ability and confidence to grasp the impossible and do all in your power to make it happen. My source of inspiration was the birth of my daughter Emi and our rich Cambodian tradition of baby jewelry gifting.
What tips can you give others who want to embrace their dream but don’t feel they have the confidence to move forward?
Savage: You will never “fail” if you try. I do not feel like I have lost when I have given an opportunity a chance. My belief is that if you are scared about doing something, you must do it. To gain confidence and experience you must go through the experience. And allow the stress, mistakes and disappointments in running a business benefit you by providing wisdom and a clear vision of what you are and what you represent. It is overcoming these bumps in the road that empower us to feel confident in making better choices.
What gives you the edge over your competitors?
Savage: Our flagship product is our Cambodian Jingle Bells jewelry. My daughter was given her first set of Jingle Bells anklets at her Cambodian baby blessings. The fact that my family is from Cambodia and I am selling a product that honors a tradition of ours that has been passed down by the generations tells an amazing story that provides Baby Emi a depth and familial connection that sets us apart.
Tell us about your product and what it was like to take an idea from concept to getting it up and running?
Savage: I am a jewelry designer. The concept of Baby Emi in its infancy stages was created in 2002. It took three solid years before my online boutique launched in April 2006. During that time I was researching the craft, jewelry designs, business logistics and competitors. Also, I was making jewelry prototypes and building the site. It was a lot of work between getting pregnant twice and giving birth, going through four moves and personal illness.
Was there a turning point for you when you knew you could succeed with your business idea?
Savage: It was not until I had a breakthrough conversation with one of my dropship account owners. Not only is she a dear friend but also a profound business mentor. I was feeling discouraged and wanted to see Baby Emi grow in leaps and bounds. A suggestion that she made was to find a way to make my business different from my competitors. I realized that I started this business because of my culture’s tradition to gift babies with jewelry. It was then I realized I must sell Cambodian baby jewelry. And since we added our Cambodian Jingle Bells anklets and saw the success of it through press and celebrity gifting, we knew we were on to a business concept that had depth and longevity.
Have you noticed certain advantages to being an entrepreneur versus having a day job?
Savage: At my past day job I often found myself thinking about my family.The things I wanted to do with my family.And as an entrepreneur, I am “home” with my family, and it is wonderful!
How long did it take before your business became profitable?
Savage: Baby Emi will be 2 years old at the end of April. So we are very new. It is my third baby. I have not financed my company. In the beginning we were paying for it personally. And now the business is running on its own. Every “profit” that we do see gets put right back into building the business. However, it wasn’t until a year and a half [after] its launch that I felt happy with the sales it had been generating. All great things take time!
Were there any challenges that you experienced along the way that you had to overcome?
Savage: Oh, my goodness, have there been a lot of challenges–like finances, time, personal illness, etc. The only thing I could do while facing these obstacles is pray and keep moving forward, keeping my eye on the vision of my business.
Did you have a mentor?
Savage: Yes, I do have a mentor. Many actually that have helped me during certain points of my business.But my greatest mentor is the woman who reached out and asked if she could carry my jewelry, and that is Heather Ledeboer of Mom4Life.com.
What’s next?
Savage: This is the fun part!We are currently in the process of launching our Cambodian Jingle Bells anklet on a national wholesale level. This has been a very exciting and stress-inducing project. We are working with international manufacturers, domestic gift box manufacturing companies, web designs, print designers and business colleagues to get this baby ready. My ultimate goal is to have our Cambodian jewelry sold in every trendy baby boutique across the U.S. and in high-end retail shops like Nordstrom and Saks Fifth Avenue. I also have a dream to be on “Oprah!” I find her to be amazing and uplifting. I would love to share my story of Baby Emi on her show one day. To just sit next to her would be a dream come true.
Debbie’s jewelry is beautiful. In fact, when I first saw her website, I couldn’t wait to order something for my 3-year-old niece, McKaina. It also occurred to me that I would like to write about how you can get your product in gift bags. So check back to find out more.
Oh, before I forget, my favorite section of the website is Giving, and that is where you can see how Baby Emi is giving back to other organizations. And for more info about Debbie Savage check out her blog: savagebunch.blogspot.com.
Sooooooo, it’s time for YOU to live the lifestyle of your dreams. Let me know your thoughts and what sort of ideas and resources you are looking for. I am here for you.
Once upon a time Nancy McCord held a position in the colorful world of interior design. Nowadays she taps into the same type of skill sets, as the owner of a web design firm. What we found valuable about her journey from corporate life to becoming an entrepreneur in May of 2001, was the process she went through to determine how to transfer her years of corporate experience, knowledge, skills and passion to a new profession. Her sales enjoyed a 50 percent increase in 2007 from 2006 sales by expanding her services, staying true to her concept and adding independent contractors to her operation.
McCord Web Services offers its clients creativity and marketing which include web design, e-newsletter design, content creation and subscriber management to name a few. Of course, a big motivating factor in her life was the fact that she’d taken a two-year break to have and raise her… triplets.
Tell us about those first few years as a “corporate employee turned entrepreneur”. What did you learn from those early years that helped you move forward?
McCord: Planning yet staying nimble is important.
I tried not to create any corporate overhead before I could afford it. I strived to stay profitable by bootstrapping the resources that I had. When I had money, I carefully invested in the training and products that I really needed (not wanted) to be able to be more productive.
We have selected the services we offer slowly over time as our clients’ needs became apparent. We started only as a web design firm. Then clients asked if we could do newsletters or how about updating their website? Then it was what about updating their friend’s website when we did not do the design–and so on.
In fact, we will be rolling out a new service next month on release writing and circulation.
Typically a new service plan starts first with a client or two or three asking if we can do it. Sometimes the service seems like a good match, but before we roll anything out to clients, we test it on ourselves first. How easy or hard is it to perform? How much time does it take? We check with our staff and encourage their feedback on pricing and requirements. Only then do we introduce a new service.
Copywriting for articles and magazines is a relatively new service for us and sprang out of our clients’ blog writing needs. So from my perspective, it is important to listen to clients and then evaluate what is a good match for you. Not all services clients have asked for have turned into services that our business provides. We want to offer the best value and top-notch service level when we choose to provide something, not make a quick buck just to satisfy a customer once.
I have also found that if I cannot step in and do a service–in case a contractor cannot follow through–that I should not offer the service. I must understand what it takes for my contractors to provide a service in order to offer the service. This helps my contractors to be loyal to me and accept my guidance, as I am experienced and have walked in their shoes, but also keeps me from disappointing a customer. If there is an illness or accident, I can step in and still make a client deadline.
This is one reason why I do not provide programming services, as I do not have strong programming skills even though several of my contractors do. I feel that I must always be focused on exceeding a client’s expectations and, in doing so, have aggressively grown my business.
Approximately how much money did you have to invest before your business became profitable?
McCord: My first year I broke even, and every year after that I’ve made a profit. I have low overhead, as I work out of my own home office and have not taken on undue expenses until I had the money to pay for them.
What resources were most helpful to you when you were starting your business?
McCord: I used our local community college and went to free business startup seminars and asked lots of questions. I went to the state tax office and asked lots of questions.
What is the single most important piece of advice you would give to a current corporate employee who wants to become a “weekend entrepreneur” first, then grow a business?
McCord: Don’t start with a corporate mentality. Startups cannot typically afford high-powered consultants, the best software or glamorous offices. Spend what you can afford and plan for the future. Work to own your local market and then spread your sights. I harvested word of mouth traffic initially and then moved into the national sphere and then globally. Start with baby steps and build a strong foundation that builds customer loyalty and good repeat business and referrals.
I already had a college degree and a strong entrepreneurial background as well as management background. I had been in interior design and furniture sales management as well as [being] a licensed interior designer.
I thought that a web design career would allow me to work at home to be near my kids, use my strong color and design skills, and leverage opportunity from my strong selling background.
I knew that I needed web design and web graphics training, yet not a degree. I went to the local community college and took not-for-credit night classes to get a certificate in web design. I worked hard for nine months and created a portfolio while in class so I could hit the ground running and get special help from instructors when I needed it.
I was also able to buy some of my most expensive software while in school as a student using the college’s student discount (Photoshop at a 50 percent discount).
I was thirsty for knowledge and really worked hard at developing my skills outside of class. I practiced, practiced, practiced.
I created my own website for my business as my last project so I could hit the ground running. My first customers were neighbors and family members. My first employees were family members as well, as I could trust them to help me and to work cheaply in a desire to help me succeed.
Do you have a book or information product?
McCord: I have a free informational download section on my website where you can pick up our top white papers on a variety of topics.
Our newest whitepaper is “The Tangible Benefits of Blogging.” This in-depth analysis reviews statistical results of web traffic, site stickiness and organic search placement of websites that use blogging as a way to build content and authority on their selected topic. You will walk away from reading it knowing that blogging is the new medium for your marketing arsenal for your own business.
McCord: Our most popular white paper that has been downloaded [more than] 800 times is “Google & Yahoo Advertising Comparison White Paper.“
This in-depth analysis compares Google AdWords to Yahoo Sponsored Search and, in easy-to-understand terms, helps you to decide which program is best suited for your needs. We compare results for users of both products for click traffic, expense and the number of impressions. You will walk away from reading this white paper having a clearer understanding of what each offers, the pros and cons of each, and a better idea of which vehicle will be best for your needs.
Melissa DeMordaunt and Krista Lewis put their feet down and decided to be stay-at-home-moms. When faced with the dilemma of working a day job and being away from home, DeMordaunt’s mind was made up. She candidly said, “Flexibility is the main advantage. Once we became mothers, neither of us wanted to be tied to an hourly job or a place where someone else was dictating our schedule. We love that being an entrepreneur doesn’t mean you work less hours, it just allows us to be mamas for our day job. We get to continue to utilize our minds and education, interact with people, and improve our creative and problem-solving skills. It is the best of both worlds.”
In November 2006, they joined forces and started SnugaBug. They weren’t aspiring entrepreneurs at the time (DeMordaunt has a degree in social work and Lewis has a nursing degree). But when the idea for the Warmsie® came, they ran with it.
Personal mantra?
DeMordaunt: Great things come in small packages (we are both 5′1″)
Business mantra?
DeMordaunt: NGU–”Never Give Up.”
Tell us about your product and what it was like to take an idea from concept to getting it up and running.
DeMordaunt: What all mindful parents need for their babies-on-board is a base layer. The Warmsie is all about function and style. We have made a onesie and pant set out of a soft, high-tech wicking fabric for babies and toddlers. A thin layer that will pull moisture away from babies’ skin; something a baby can wear under regular clothes, replacing the onesie. Each set is trimmed with a contrasting print making them chic so that it isn’t ” just” an under layer.We have learned so much throughout the process of turning our idea into a real product and creating a business based on that product. It was significantly harder than we thought it would be, but much more rewarding than we imagined it could be.
Originally, we were naïve in thinking that we would be in business once we secured the specialty fabric, came up with a pattern, designed the look and got them into stores. True, those were the major issues, but the real work and time went into the minutiae. The topics where we donned our problem-solving-creative-NGU (never give up) hats were in the details: hang tags, branding, packaging for stores, size tags, logo, packaging for our own retail site sales, designing, thread color, waistband size, website, product pictures, return policy, marketing. Phew. The list goes on.
Was there a turning point for you when you knew you could succeed with your business idea? DeMordaunt: Originally, we made the Warmsie sets ourselves. At the point where keeping up on orders cut too much into our time as mothers, we searched for a manufacturer. Walking into a factory and seeing a large room full of seamstresses all working hard on Warmsies was a eureka moment for us. It hit us. “Wow, we have created a product and now others are working on our invention!” It was incredibly exciting.
What tips can you give others who want to embrace their dream, but don’t feel they have the confidence to move forward?
DeMordaunt: Talk to people about your idea. Getting positive feedback was key to our confidence in starting SnugaBug and creating the Warmsie. Once you have made your decision to go forward, jump in with both feet. Success will depend on the energy and persistence you put into your idea. Never give up.
How did you get financing for your company?
DeMordaunt:We have self-funded and boot-strapped to this point.
How long did it take before your business became profitable?
DeMordaunt: We were profitable our first year.
What resources were most helpful to you when you were starting your business? DeMordaunt: Willing and able friends. We have received so much help from family and friends. The StartUp Princess organization has also been very helpful.
What’s next?
DeMordaunt: Bigger sizes, new products and more stores.
Applause to Melissa DeMordaunt and Krista Lewis for being inspiring role models. Do you have a personal mantra that you would like to share with us? Or something that helped you get through tough times? If so, let us know. In fact, whatever is on your mind we want to know and we want to continue supporting your dream. Holla back!Cheers, Michelle Anton
“You don’t have to be a rocket scientist” is a cliché I’ve recited more times than I care to remember. But I just met Lisa Akers, a real-life rocket scientist. Her Denver-based company, Be Still & Knit, offers classes and clothing for children and the women who love them.
This upclose and personal interview with Lisa Akers reveals what she’s up to… from stumbling blocks (a coach who didn’t work out) to a peek at what’s she’s planning to do next to increase industry awareness. She’s a smart cookie.
When did you start your business and what inspired you to become an entrepreneur?
AKERS: I started my company, Be Still & Knit, in the summer of 2005. I left my corporate job as a rocket scientist (yes, really) in late 2003 to birth my daughter. It was a huge shift for me to go from the world of high science, high dollar and high-risk satellite business to the world of diapers, baby food and midnight feedings. To top it all off, we moved from our home in Connecticut to Denver for my husband’s work (in my 35th week of pregnancy). So here I was, a new mom in a new town, with no friends to speak of.
I desperately needed to do something and meet people or I was going to go nuts! So, I went to moms’ groups, I went to churches and I went to the parks to meet other moms. It worked for a while, but my drive as an engineer really made me want to do more–I wanted to have something that I could call my own.
I was wandering through Target, buying diapers, when a learn-to-knit kit caught my eye. It was not completely out of character, since I had been crocheting since I was 6. I brought it home and learned to knit. It wasn’t the most beautiful of shawls (at least in my eyes), but it garnered me compliments every time I wore it. Before long, I was making shawls and teaching classes to my new friends.
What gives you the edge over your competitors?
AKERS: I think that my concept for teaching classes is unique in two ways. First, I come to my students and work on their schedule. Being a mom and not owning a brick-and-mortar store, I have a lot more flexibility in when and where I do my work. Secondly, I believe in giving people a skill and a philosophy. I want all my students to walk away with confidence in their abilities. Often with lessons in stores or at craft events, the instructor only wants to present the material and get it over with. I go one step beyond the skill and talk about the more emotional, spiritual and relationship aspects of knitting/crocheting. I want to create a community of knitters, not just a collection. With my clothing, I create classic designs out of materials that are easy-care, that are high-quality and long-lasting, and are widely appealing to moms and grandmas. What sets me apart is the fact that my designs are easy to wear and easy to care for. Busy moms don’t need fussy clothes.
Was there a turning point for you when you knew you could succeed with your business idea? If so please describe.
AKERS: It came this past January 2nd. I was celebrating the holidays with my family when my business phone rang. I answered it, and on the other end was a high-end local boutique that wanted to start selling my products. It was the confidence booster and energy behind my new success. I was doing OK before, but that moment I realized that I could do so much more!
Have you noticed certain advantages to being an entrepreneur versus having a day job?
AKERS: Well, it is great to have the personal flexibility of working for myself. I can schedule my days, weeks and months to best suit my own demands as a mom and wife. On the other hand, it’s much harder to keep focused when I’m the only one setting the agenda.
When I had a day job as a rocket scientist, I felt much like a firefighter. Some days were incredibly busy with solving problems, explaining concepts and running tests. Other days were just a waiting game. I find that with my own business, every day is incredibly busy. When I am working for myself, my brain is on overdrive coming up with new products, class ideas and marketing concepts. I have a journal that I always carry with me that I use to write down the ideas I have but don’t have time to do right now. Each six months, I sit down with those ideas and see if I should implement some of them and eliminate some of the things I’m currently doing.
How long did it take before your business became profitable?
AKERS: I was profitable in my second year of business. It took about 18 months to comfortably profit from what I do. My business is pretty seasonal, too. I teach a lot more and sell a lot more product in the winter. I’m trying to shift that around, but there’s something about having wool in your lap in August that isn’t very appealing!
Has it been difficult to get financing for your company?
AKERS: I have self-financed. I used my credit card to get started and, fortunately, I have a very low interest rate.
Did you have a mentor? If so, how was it helpful?
AKERS: Well, I did have a coach, and she really wasn’t that helpful. I loved getting her ideas and putting some of them to work. However, I trusted her ideas and concepts without doing any of my own research and without running it through my own filters. Unfortunately, her ideas led me away from my core business and were a big distraction for my first 18 months. Once I refocused on my business of creating a knitting community, then I was more profitable and more successful.
I’ve found that other moms who are in business are far more valuable as mentors. They have made a lot of the mistakes I made and are willing to share. It’s great to have a community of like-minded business owners to reach out to when you have a question or need some advice.
What resources were most helpful to you when you were starting your business?
AKERS: The most valuable thing for me has been two moms’ networking groups. We meet twice a month and we get to talk about how business is going. We share ideas on marketing, websites, events and getting clients. We critique each other’s new products, and we get new ideas on how to best run a business and raise a family.
What’s next for Be Still & Knit?
AKERS: My plan is to start holding weekend retreats for fiber artists. We’ll have classes on fiber projects, meditation, prayer, exercise, nutrition and community building. I want to bring the peaceful aspect of fiber arts to the knitting community and create a stronger community of knitters.
Let us know what’s next for you and how we can help.
"Thousands of people have found a way to live the lifestyle of your dreams – and now you can, too. Over a hundred weekend entrepreneurs share their secrets. It’s all the information you need..."
At the end of the day, though, I am thrilled to be in the baby business and am inspired so often by other moms and their stories. Thanks for sharing them!
We have learned so much throughout the process of turning our idea into a real product and creating a business based on that product. It was significantly harder than we thought it would be, but much more rewarding than we imagined it could be.
