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Obviously this is an area that I have and still am struggling with. And here it surfaces again.
I thought once school was back in that I would have all the time in the world to work on Rinse and then be able to be the fabulous mom, wife & homemaker that I aspire to be outside of school hours. Here we are, one week into school and It's not working. Now I know - only one week - but still, I had one productive day out of four when to get everything done I need 6 productive days out of four. It seems that everything lacked a bit and for that I have got to find a solution.
I think my key is to get organized both physically and mentally. I've already taken a couple of steps that I hope will help and have a few more in the works.
- Set office hours - this is HUGE to me. I've always wanted to be available, especially during the "normal business hours" that everyone thinks of (9-5; Monday - Friday) to service my customers. But realisticly it just isn't the best use of my time. It may be fine for the bank that has so many people on staff to do every little thing that needs to be done, but when you have a skeleton crew (mainly myself) you don't have the luxury. My office hours are just that - the hours that I'll be in the office. Hours that people can expect me to answer the phone and return email promptly. The rest of the hours are up for grabs and will be filled with production, playtime and whatever else pops up (including returning phone calls & emails.) Once I updated the hours on my website I felt such a relief. Now I don't have to feel guilty about not answering the phone when I'm in the middle of stirring a batch of soap or when I'm playing a rigourus afternoon game of Go Fish.
- Creating a Schedule - this isn't complete yet, but I am certainly implementing some key parts of it already (see above for one.) On the homemaker front, I created a meal plan for the week & a cleaning schedule. On the Rinse side, I've created a Production Request Log which will tell me what I need to make to fill any upcoming orders or any inventory shortages. I plan on plotting out days for meetings, times for working on marketing efforts, social networking (my blog hasn't seen the light of day in months), accounting...
I'm in the process of eliciting sugestions and tactics that work for my other multi-tasking entrepreneur friends and colleagues and will at a last ditch effort, seek the help of a professional organizer/time manager.
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The old adage that "you have to spend money to make money" is a tried and true statement that wrenches in the gut of every small business owner. No matter how big or small, in order to grow, you must continually invest in your business if you expect to turn a profit. As an example, even though most of us in the small biz "DIY" retail industry are all experiencing less sales from our retail locations, galleries, and festivals, small business consultants and moguls continually state that now is the time to spend more funds to push your name out into the marketplace.
Robert Kiyosaki, the face of the Rich Dad, Poor Dad (www.richdad.com) series of books, coaching seminars and lectures, indicates that now is the time to amp up your marketing budget for your small business, no matter what you have to go through to achieve this task. More visibility and awareness of your brand will ultimately result in more sales, one way or the other. The bottom line? The continual spending of funds for your business is the only constant to owning a business. Once you choose to stagnate, your business will do so, as well.
So, what's the reality for all of us DIY'ers who are trying to do something in this economy? How can we continue to grow our businesses while the hot breath and girth of the big banks are breathing down our backs, pushing us up against a wall with ever-changing available limits and increasing interest rates?
We all know that on May 22nd, President Obama signed the Credit Card Accountability, Responsibility, and Disclosure Act (CARD Act), which forces big credit card companies to provide greater transparency for their customers. What does all of this mean, in short? Under this new bill (which will go into effect next year), there will be no more shifting of payment deadlines to initiate late payment fees; no more allowing purchases to go through if you do not have enough avaiable credit on the card to initiate over-the-limit fees; no more interest rate hikes when you haven't been late on payments, and so forth. Also, it means that you - as a spender - cannot be irresponsible with your spending habits, or else the banks can do these things to you. In my opinion, it's a great bill that helps the "little man" by creating more transparency, prevents frivolous fees to the customer, and holds the buyer accountable for his or her spending habits. In the end, it will level the playing field and put a little control back into the consumer's hands.
So, allow me to convey my cautionary tale for all of you, and show how banks are now attacking small business owners and individuals, alike, before the CARD Act goes into effect. If you don't think it can happen to you, allow me to be your personal example....
Over a few years, before starting iram-inal, I diligently worked hard on my credit. I scoured my credit reports, wrote declaration and verification letters, removed old line items, and made it as clean as a whistle. This process was a long, arduous task that took over 6 months to complete, and resulted in me having a great, clean report along with a credit score in the mid-to-high 700s (you know it varies based on the Credit Reporting Agency).
My reward? The credit card and loan offers started POURING in. I accepted some of them, and threw away the rest. The majors, American Express ($25,000 limit), Bank of America Business ($22,000 limit), Citicard ($13,000 limit), Wamu ($10,000 limit), became the springboards I needed in order to facilitate the start of my business. I decided I would responsibly use these cards and "spend money to make money...." The result was iram-inal designs.
As stated above, I used this large amount of credit offered to me the right way: I scheduled payments WAY ahead of time, always paid well over the minimum payment, and kept the lines below 50% of the limit. In essence, I USED MY CREDIT RESPONSIBLY. Then, it started happening, about 6 months ago: First, came an inexplicable letter from American Express, stating that they would be taking away all of my available credit, leaving room for $1000 of purchases on my card. The act would make my balance to limit ration over 90%, and would allow other credit card companies to penalize me due to the fact that I've now "spent" most of my available line.
I was perplexed, troubled.... what had I done wrong? When I called up credit card customer services, I fortunately got in touch with a very honest, very empathetic agent who informed me that it wasn't anything I'd done wrong.... no, no, no. I was "paying the price" for all of the people who weren't being responsible with their credit. Essentially, the bank was "hedging its bets" by lowering available credit on good customers to make up for the bad. My available credit, by the way, went from $25000 to $11,600 (I had charged approximately $9500 on the card at that time). Resultantly, I did the right thing, and quickly paid off over $2000 to free up some of the line, only to receive another letter from American Express again lowering my limit from $11,600 to $10,200.
Although I felt the momentary sting of "woe is me, what am I going to do?," I quickly bounced back and saw this as a blessing in disguise. I scoured the internet to see if this occurrence had happened to anyone else, and learned straightaway that I was FAR from being alone. American Express - specifically and expressly - was targeting long-standing good customers who had never violated any portion of their terms and agreements. I decided that I'd pick up the pieces, would "get my hustle on," and find another way to make money. I enrolled in more festivals, worked a little harder to grow my portfolio of stores, and cooled down a bit. For months, I spoke with my fellow vendors about this occurrence and warned them that "it, too, could happen to you." At the time, many of them scrunched their noses at me not understanding... thinking that it must had been something I'd done irresponsibly....
Although I eventually adjusted just fine with the sting, with the passing of the CARD Act, all of my credit card lenders have gotten more diligent and aggressive in minimizing the available credit open to me and other good customers. Now that a few months have gone by, more and more of my peers are revealing that the same thing has happened to them. I've been hit from every corner: Wamu became Chase, shifted my due date and closed me down; American Express recently increased my rates from 9% to 18% (I still haven't made a late payment); BOA minimized my available credit from $22,000 to $16,000 (no late payments there, neither).... In the past 6 months, I've lost over $15,000 available credit to me.
So, what does all of this whining mean for small business owners? It means that instead of making a dollar out of 15 cents, we must learn to make one out of only 5 cents. I don't have an exact science and formula down, but my thoughts are increasing your productivity with a different, less expensive medium (fyi - my handcast resin line debuts this fall), decreasing your prices a bit or creating sales opportunities for your customers with old inventory (I know, I know... no artist wants to do that), and taking on more festivals is the key for someone who does what I do. I also decided NOT to make the jump to the wholesale market, as I figure that would take an up-front investment of about $10,000 - $15,000, and I now no longer have the credit to do it.
Although I run two fashion-based lines a year, I've learned how to stretch my inventory, offering $10, $20, $30 specials at festivals with OLD inventory that sat in my studio for about a year. This little trick DOES work, and made me and my sister about $500 at our last festival, on top of regular sales. As stated above, I also introduced a new line with a less expensive medium, which has opened the doors to many more places than I'd ever imagined. I also increased my list of stores in an effort to "get a little from more," versus waiting on big checks from just a few locations.
My hope in sharing this with all of you is that you all take a close look at your "Information and Disclosures" form that so many of us throw away. Look to see if your credit card has modified your terms to say, "We can increase your limit, close your card, or change your due date FOR ANY REASON." If you do see that, a change in your card, resulting in a hit to you and your business, may be coming your way, and most likely will before this bill goes into effect.
In the end, the dust will settle and we'll all be in a better place. Our economy will eventually balance out (though I believe it will be 5 years for this to happen), I estimate that my husband (who this, too, has happened to as an entrepreneur) and I will have some tight months, but we'll make it through. With resilience, hard work, and due diligence, we can make it work. And we're trying our very best, every day. I thank you for allowing me to get personal with you, and hope that you can learn something from all of this... In the end, these experiences only make us stronger, and will continue to do so throughout the ages.
Until next time, Creative People....
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I think we as independent designers (and those who enjoy our wares) are already thinking outside the box. We appreciate a handcrafted piece, we see uses for things that no one else would ever suspect. But I think sometimes we get caught up in our own boxes, all be it our boxes certainly are outside of the commercial "box" but a box is a box no matter where it lies.
I recently was in a box and didn't even know it! Feeling comfortable with the line, and the growth of the company I just kept trucking along soliciting businesses in which my product/look/feel would fit.
That is until a dear friend and true artist Heather A. French (also kind of strange that we have the same first & middle name!) came to help and scope out the Atlanta Gift Market last week. The words that came out of her mouth were so prolific and true that I was almost embarrassed that I hadn't thought about it.
She asked me about the places in which I didn't fit and what I was doing about it. At first I thought nothing of it, if I don't fit, I don't fit and I don't want to compromise the Rinse brand to change that. But then the thought marinated. I've focused all of my energy on the ones that fit never even thinking about the stores, salons & spas that wouldn't fit. Huh! I could expand my reach just by thinking a little differently.
Shop owners are very visual and unfortunately they are not all as wildly creative as we are. If I can step away from the traditional look of a Rinse display (clean, modern, fresh, industrial) and show how to display the products in other settings (gardens, shabby chic, repurposed goods...) Those people who are drawn into the space but whose stores can't support the traditional Rinse look can actually see how Rinse could work in their setting.
Brilliant! I love having friends who are smarter than me!
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I just heard about this new and exciting initiative called: The 3/50 project.
The incredibly simple idea behind it is to engage consumers to visit three local businesses each month to spend $50 a piece at. It's noted on the website that if half of the employed population of this country did this it would generate almost 43 billion in revenue. wow. this is a powerful grass roots movement and the more of us that spread the word, the more fuel the movement has. Check it out at www.the350project.net
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While on a stroll through my local bookstore I came across a table with books and books and books on it that were either required or recommended for students to read over the summer. This got me thinking that my usual schedule doesn't have a chance in summer that it is the perfect time to make room for my own reading list.
This list includes:
Good to Great by Jim Collins
The EMyth by Michael Gerber
Guerrilla Marketing for Free by Jay Conrad Levinson
As well as getting back into reading Inc Magazine & looking at their website more often than not.
I wish I could take credit for finding these books, but I didn't find them on my own. I've had help creating this list from business counselors & successful business people. The funny thing is that when I ask the question "what should I be reading?" they all give me the same answer... the ones listed above.
There are no book reports due, but self accountability is a must.
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You know we are so many things to our businesses. Most of the time we are all (and if not all most) of the following the creative minds, the go-getters, the sales person, the collectors, the accountants, the shipping department, the marketer... We work in the business day after day & night after night.
It's not very often that I personally get a chance to work ON the business. Nothing made this more painfully clear than when I took a business class in the fall. It was all about working ON the business. Everything starting with our Exit Plan (ironically we started at the end - but it all does kinda make sense) to our Mission/Value to Competitive Advantage and so on and so forth. I felt good to know that Rinse had a lot of things already in place (even though I might not have put the fancy & official name tag on it). But I felt horrible about what was not in place.
After doing an amazing activity known to the business savvy as a SWOT Analysis I found that we're doing a lot right, are planning pretty well for what's to come, have a few weaknesses that we have been working on... but all & all we're in pretty good shape. There was one Weakness that was glaring me in the eyes. I had thought about it often, worried about it at night & even feared it when I was away from my computer.
What in the world would happen if my computer died, was lost/stolen, burned in a plane crash... I think I would cry, vomit, cry some more, never be able to sleep until I recreated everything & who knows what else.
As much as I try to be a good "back'er up'er" I'm not. I've burned cd's and sent them 750 miles away (because what happens if your house catches on fire with your laptop & back-ups or additional harddrive in it?) but that only happens like once a year. And a lot happens in a month, let alone a year here at Rinse. I've got too many other hats to wear than data security guard.
So I started searching for alternatives, that I would basiclly, well, not have to do a single thing with. I am so happy to say that I found two options (and opted for one of them) that are affordable, self-reliant & easy to use. They are www.mozy.com & www.carbonite.com.
I am so happy to say that as of 6:00 pm yesterday I could care less if my computer self-distructs (ok, that's a lie, but now it's more for financial reasons rather than my whole life gone reason) now. Almost instantly (or within 15 minutes) of changing a file, the back-up is completed. So that means at most, I would loose 15 minutes of Rinse... now that I can live with.
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Just because you can, doesn't mean you should.
- You need to make sure the timing of everything is right & that you can maintain those things in the manner in which you like including: finances, lifestyle, balance, sales, net profit, ability for growth...
Network, everywhere you go.
- Even on vacation... even at Disney World. Be prepared because you never know who you're going to meet and what they can arrange for you.
I should apply for a job as a fortune cookie writer for small business owners.
Your lucky numbers are: 5, 16, 33, 54
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A constant challenge for me as a small business owner is managing the growth of my company. From the beginning I said I wanted to keep it managable for me, yet over the years I have found that keeping it managable and growing, and keeping it profitable are completely different things. And often times the management can interfere with the profitability. So I am constantly trying to balance the two.
As I just reached my 6th year in business, I find myself reading more and more small business management articles online such as Business Week and Entrepreneur.com. They are great resources, but I definately have to weed through the information that applies to me. Their audience of small business owners is vastly different and may not apply to everyone. I feel that after 6 years I should be on a good strong path of growth, but with this ecomomy, its going to take a bit longer so that is when I have to keep reminding myself that "Slow and steady wins the race!" Some feel that the recent downfall of the economy has taken them 5 steps backward, but I am looking at it as a way to restructure and refocus on new growth strategies. What those are yet, I haven't exactly laid them out yet, but I am working on it!
Other good websites for small business management are: Small Business CEO and Business Know-how
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I've been doing do good... until now that is. I've been on time with my blogging, interesting topics (at least I think so) & all pretty relevant stuff. Well this one is probably none of the above.
I tried so hard during the holidays (the said busy time for 99% of small business) to make time for my family, and maybe a second per day for myself, getting my to-do list in order and done, looking at my numbers every which way... So why is it that now, in the middle of March, do I find that I have started to let things slip?
It's certainly not that I meant to. Am I as busy? Not sales wise, but things brewing, probably. I think I let my guard down a little. It's March... what in the world could be going on? A couple personal things have popped up, seriously looking for space for Rinse's new workshop slid in there somehow (along comes the budgeting which makes you have to call every utility known to man for pricing; the fire department to make sure I can do what I want to do where I want to do it...), shows are starting to creep up on me, developing new products, making contact with potential accounts, getting an ad together for the July Market... Oh my goodness, there is NEVER a slow time - there is ALWAYS something to do.
I've learned my lessons. I've started back on doing my to-do lists (and still feel as good when I cross something out today as I did in December). I know that the planning that I'm doing now is going to pay off HUGE down the road (at least that's the plan of the plan) so I had better do it. I've started things early (we just made 99 lbs of soap today - a single day high). I try to optimize every Rinse minute of the day.
Hopefully I will be back on-top of things again. But really, who knew... March!?!?
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We've all heard, especially these days, that Cash is King. I know I've known this, I just never realized how that phrase would impact my business and really up until this point, it hasn't.
Rinse has grown slowly over the last 5 years (most of the growth happening over the last couple of years) from a hobby into a brand that is carried in 16 or so states and over 50 retail locations. Until this past January all of our growth has been from word of mouth & our love of doing events. Most of the money that comes into Rinse goes right back out for Rinse, allowing for growth whether it is a website, purchasing ingredients in bulk, professional photography, even going to the January Atlanta Gift Mart.
This model has worked painlessly & flawlessly, until now. Now that I've gotten a taste of the Trade Shows, I can see that is where we need to focus our resources in order to grow our wholesale accounts the most efficient way possible. This is where my problem lies... There are too many Trade Shows & too little time & even less resources.
We went into the January show knowing that we would also do the July show... that is just what you do when you make the leap & we projected that we would have the resources to pull both of them off without crippling the company. But then there's New York and all of the spa shows. All of those untapped markets that who knows what would come of them if we put ourselves out there. Then we found out about the Philly show that so many Beehiver's participated in just a week or so ago. What do we do!?!?
We could do them, all of them (well, we're not that crazy... but we could be.) We could get a loan (well, maybe) & do them. Or we could use credit cards to pay for them. But we won't. As much as I would love to see Rinse represented at these shows & growing, growing, growing, I just can't do it.
Other than lowering the financial risk & the stress of not going into debt to grow Rinse, it also is force to reckon with. It keeps me in check. I've said all along, that I don't want to grow too fast & having to manage (ok, juggle) our financial resources is guaranteeing that it doesn't happen. It's a bummer, because just like most people, I love instant gratification. And if I could, I would do as many of the shows that makes logistical sense. But I can't, and I'm ok with it.
Going the slow route allows me to perfect the business, the shipping, the marketing materials, the communication... and everything else. It lets me make good decisions & I can take the time to look at every opportunity, to make sure that they are the right fit for Rinse at the time and in the future.
I hate having to "trim the fat" off of the budget (especially since there's not a lot of fat to begin with,) not being able to go full speed ahead with product launches, not being able to purchase pallets of ingredients every time I could... But I love the thoughtful business decisions that I'm making. I love the direction that Rinse is going, I love that I have a plan (and things are actually going according to it,) I love that if I make a poor decision, and a show doesn't go as well as expected, that it doesn't cripple the company, I love being able to have time to step back and look at the progress we have made.
So, slow we will go. Rinse will be the tortoise & our cash flow will be our guide.
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