Brilliant Investment Moves

I think one of the biggest reasons businesses fail is the inability to understand numbers. Many people have great ideas, but not everyone understands finances. This is why we have business owners and then we have serial entrepreneurs. Business owners tend to own one company and they tend to struggle for the first 10 years (if they make it that far) because the financial end has a learning curve. Entrepreneurs, on the other hand, own many companies because they understand numbers and are more engaged with balance sheets than the products or services they are selling. neither option is great for both the development of a company and customer service, a balance has to be struck!

So, all this said, I figured I would offer a very basic lesson in investing. You need $100 to execute this practice, but it will teach you a valuable lesson. With your $100, buy one share of a stock market Exchange-Traded Fund (ETF). I suggest you Open an account with TD Ameritrade. Opt into the commission-free ETF program. Buy one share of the Vanguard Total World Stock ETF (VT). This means you are buying into a pool of companies (about 5,000) from around the world.

Now what? Wait. You can loose money, but you can gain money. The key is to focus on the numbers and understand how commerce truly works by using your own money. Worst case scenario is you lose $100 dollars. Best case scenario, you grow that same $100 dollars and learn the balance between owning a business and investing in a company.

Until tomorrow,

Twyla Garrett

In the Business of Excuses

I did a radio show on Monday and we touched briefly on why some people don't follow their dreams. Simply put, I believe many people don't do what they want in life because they are in the business of making excuses. What, you thought I would sugar coat this? Really, c'mon! I don't want to sound harsh or insensitive, but I want to tell the truth. I don't have a magic wand and I certainly didn't grow up with a silver spoon in my mouth. No one from the US Government came to my house, tapped me on the shoulder, and said I was going to be successful. Some people, unfortunately, like to dream big, talk even bigger, and then make up excuse after excuse as to why their dreams didn't come true. Well, boo hoo to those people.

No one is going to reward you today for the work you didn't do yesterday. You have to go after what you want out of life. When you fail, you have to get back up on your feet and try again. There will never be the right set of circumstances to start a business. I had 4k in the bank when I started IME and I had just quit my job with the Government. That's right, 4k- no income coming in- and no client leads. I couldn't make excuses. Instead, I had to make things work. I truly believe this is the difference between those who do and those who talk about doing. Some people make things work, others make excuses.

So, I beg of you today, to ask yourself what side of the fence you are truly on. Do you talk about your dreams a lot or do you execute action plans? Do you happen to lean on excuses vs. lean on reasons why things aren't working out and then develop recovery plans?

I know a woman who is very smart. She is naturally gifted at being both book and street smart. She wanted to start her own marketing company. She went to school to obtain her marketing degree. There is nothing wrong with this, right? Well, then she went to school to get her Master's degree. After this, she wanted to get a communications degree. School became her crutch NOT to open her business, rather talk about it and seem like she was really working on it. After 15 years of intense education, this woman got pregnant. After being home with the baby for two years, she then decided she needed to return to school to brush up on marketing trends in the current time. At this point I asked her if she wasn't a professional student, was she planning on simply teaching marketing vs. opening up a marketing agency. We haven't spoken since....

Don't allow valid excuses to become stagnant reasons for you to not move forward in your life. If you want to open up a business, do it - unless, that is, you are in the business of making excuses.

Until tomorrow,

Twyla N. Garrett

3 Things New Business Owners Are Failing to See!

There is no manual for being a new business owner. You can go to business school, your family can have owned a business, or you may have held an important decision making role for a Fortune 500 company- regardless, you are still not completely prepared to be a new business owner. Why? Well, each business owner has a specific journey designed around not only his or her industry, but the approach and resources associated with their business and related to their chosen industry.

This said, there are three common areas new business owners fail to pay attention to, or “see”, when launching a new venture. The first, and biggest miss, is cash flow versus profit. Forget making a profit for the first two years. This occurrence is rare. You need to maintain a moving 10-13 weekly cashflow forecast to survive. Most new business owners fail to maintain a working cashflow and then, when an emergency happens, it isn’t there and the business folds.

New business owners have to work in general terms, not specialties. Why? Chances are you will not have the budget to hire a marketing team, writing team, sales team, graphic designer, web designer, social media account manager, etc. right off the bat. These positions will have to come with growth. Ironically, you need many of these positions to obtain growth. Thus, these hats will have to be worn by you! So, be a generalist and not a specialist!

Finally, know that you have competitors and they have established customers. It is very hard to grab a customer away from another business simply based on better pricing. There are countless studies that reflect this. Instead, people tend to change products or vendors based on improved or better features, not pricing. So, think about how your company can appeal to the competition’s clients from a features point of view. Most new business owners dive into price point wars right away, which kills their potential for growth.

Until next time,

Twyla Garrett

Are You Shy? How to Network.

If you are shy, don’t fret. People who are introverts tend to hate networking events and not because they don’t like people- they just are not comfortable with communicating in-person. Well, I’ve decided to put together a few networking tips to help shy people network.

The first thing you need to know is how to plan. Don’t show up to a networking even ill-prepared. Have an idea of how you are going to introduce yourself and be armed with a politically correct joke to help fill up any awkward silences.

Go to the event with a time limit. If the event is an hour, plan on only staying twenty minutes. You can use the time limit as an excuse to merge slowly into networking events. For example, state “I have to leave in a few. I’m meeting a client, but it was nice meeting you and I will email you later.”

Finally, bring goodies. Nothing serves as a better ice-breaker if you show up with gifts. I use to buy a hundred dollars worth of Starbucks gift cards in five dollar increments. I would go up to someone I would like to meet, hand them the gift card and introduce myself. Trust me, you can not talk at all and still make a great impression with this trick. The downside is this tactic can get expensive.

Until tomorrow,

Twyla N. Garrett

Impress an Investor!

You have everything ready to go for your next business venture.... that is everything except for money. So, you need to not only find an investor willing to consider your business venture- you need to impress that investor! After spending years developing my own companies, sometimes using investors, I've cultivated a few tricks to help investors give the "yes" nod.

What I've learned is business investors are looking for a good marketing plan from entrepreneurs in the business proposals. If an entrepreneur does not have a strong plan for marketing in the overall business plan, the entrepreneur might find that investors are not interested in taking a risk. Marketing is everything. If you don't research the marketing end of your business, investors will not even consider your numbers. Marketing = interest in the media and potential customers, which = sales and profit.

Investors care but don't rely upon education. Don't think your degree is going to get you anywhere with an investor. It is nice to have but some of the best business people on Earth barely made it through high-school. Keep your presentation simple, engaging and don't over pitch your education. Stick with pitching the numbers and how your product or services can be marketed and marketed easily.

Finally, be hands-on. Most investors will look at the attitude of the entrepreneur presenting the business proposal. Having prior business experience always works in favor of the entrepreneur. Most investors like to give the money to someone who has had experience in running a similar business.

I'm not writing a blog tomorrow. Enjoy your Memorial Day!

Twyla