GBG Family Team

Interview With Tom Rieger on Not Letting Your Fear Keep You From Succeeding

By Deborah Jeanne Sergeant

After studying dozens of defunct companies, both large and small, Tom Rieger found that fear contributed significantly to each company’s demise. Now president and CEO of National Business Innovations in Orange County, California, he wrote Breaking the Fear Barrier: How Fear Destroys Companies From the Inside Out and What to Do About It (Gallup Press, 2010) to share his discoveries. Home Business Magazine recently spoke with Rieger about how fear impacts home businesses.

According to Tom Rieger, author of Breaking the Fear Barrier: How Fear Destroys Companies From the Inside Out and What to Do About It, the fear of losing what you’re holding onto can make you uncomfortable about stepping out of your comfort zone.

Home Business Magazine (HBM): How does fear affects would-be home entrepreneurs?

Tom Rieger (TR): The fear of losing what you’re holding onto can make you uncomfortable about stepping out of your comfort zone.

HBM: How does fear manifest itself in established home-based businesses?

TR: There are usually three ways in which fear shows up. It’s a pyramid of bureaucracy: parochialism, territorialism, and empire building. Parochialism is when you have an employee or you as a leader tend to view things strictly as a process or through an internal lens, not how your employees or your customers will view things. An assistant may view his job as solely getting you to sign forms you need without seeing it’s taking time away from business. It’s an employee that defines his world by the piece, not the puzzle. Territorialism is when you have someone in your business who is exerting excessive control over budget, information, or other employees. That comes out of fear of loss of that control. Empire building is the last one. A home business is less subject to this. When you have a part of an organization that feels their “empire” is threatened, invariably you’ll have conflict. Empire building means open warfare within an organization. It’s a fear of losing self-sufficiency. It’s a fear of losing decision rights. Once I feel I own something, it increases in value to me, but only to me.

HBM: Is the goal to eliminate or manage fear, and how does one do it?

TR: Not all fear is bad. People need some pressure to perform. Fear that is focused on the wrong thing: That’s bad. Remove all the barriers. Try to understand what people are focusing on. Have they lost sight of the mission? The mission is the ultimate arbiter of every decision. Make sure the rules and policies are doing what you want without collateral damage. There are four types of rules: gospel, ghost, ground rules, and guidelines. “Gospel” rules are absolute rules you must follow. If people are doing things that don’t make sense but they’re doing them because that’s the way they’ve always been done, that’s the “ghost.” They aren’t rules that are really rules. “Guidelines” are flexible rules. “Ground rules” are when you make a judgment call, but don’t go out of bounds.

HBM: Many home entrepreneurs have worked in a traditional setting, and to form a virtual remote team may seem a fearful thing. What can home entrepreneurs do to feel more comfortable?

TR: Understand the world your virtual team lives in. Communication is essential; over communicate almost. Regularly have some face-to-face time, and make absolutely sure that you have transparency on sharing information. It takes a lot more work to keep information flowing and to keep it shared. It takes more collaboration to keep it going when you’re scattered across the country.

HBM: How can fear of failure effect entrepreneurs’ day-to-day actions, and what can they do to overcome it?

TR: People will do things to prevent the loss even if it means they’re also preventing the gain. They erect walls to keep form stepping off the cliff even if it prevents them from going forward. They hold onto processes, technology, and methods that are outdated. Don’t let your fear keep you from succeeding.

HBM: Some home entrepreneurs fear success. Why?

TR: Success means change, and change is different. It means you’ll have to give up something, and losing something is fearful. The business you have five years from now may be completely different than the one you have now. Maybe some of the sacred practices that drove you up to $1 million won’t be adequate to get you to $5 million. Develop a set of guiding principles to help you avoid risk, help customers, and operate better. You can step back and say, “Will this help or should I stick with what I have?” Don’t be afraid to evolve. HBM

Rieger has operated a worldwide customer measurement program for a Fortune 100 company. Rieger and his wife of 17 years have a 13-year-old son and live in California.

Deborah Jeanne Sergeant writes magazine articles, web copy and promotional materials from her home in Clyde, N.Y. Visit her online at www.skilledquill.net.V19-2 Add: 4/12 Car: 4/5/12  HP:

Interview With Tom Rieger on Not Letting Your Fear Keep You From Succeeding

By Deborah Jeanne Sergeant

After studying dozens of defunct companies, both large and small, Tom Rieger found that fear contributed significantly to each company’s demise. Now president and CEO of National Business Innovations in Orange County, California, he wrote Breaking the Fear Barrier: How Fear Destroys Companies From the Inside Out and What to Do About It (Gallup Press, 2010) to share his discoveries. Home Business Magazine recently spoke with Rieger about how fear impacts home businesses.

Home Business Magazine (HBM): How does fear affects would-be home entrepreneurs?

Tom Rieger (TR): The fear of losing what you’re holding onto can make you uncomfortable about stepping out of your comfort zone.

HBM: How does fear manifest itself in established home-based businesses?

TR: There are usually three ways in which fear shows up. It’s a pyramid of bureaucracy: parochialism, territorialism, and empire building. Parochialism is when you have an employee or you as a leader tend to view things strictly as a process or through an internal lens, not how your employees or your customers will view things. An assistant may view his job as solely getting you to sign forms you need without seeing it’s taking time away from business. It’s an employee that defines his world by the piece, not the puzzle. Territorialism is when you have someone in your business who is exerting excessive control over budget, information, or other employees. That comes out of fear of loss of that control. Empire building is the last one. A home business is less subject to this. When you have a part of an organization that feels their “empire” is threatened, invariably you’ll have conflict. Empire building means open warfare within an organization. It’s a fear of losing self-sufficiency. It’s a fear of losing decision rights. Once I feel I own something, it increases in value to me, but only to me.

HBM: Is the goal to eliminate or manage fear, and how does one do it?

TR: Not all fear is bad. People need some pressure to perform. Fear that is focused on the wrong thing: That’s bad. Remove all the barriers. Try to understand what people are focusing on. Have they lost sight of the mission? The mission is the ultimate arbiter of every decision. Make sure the rules and policies are doing what you want without collateral damage. There are four types of rules: gospel, ghost, ground rules, and guidelines. “Gospel” rules are absolute rules you must follow. If people are doing things that don’t make sense but they’re doing them because that’s the way they’ve always been done, that’s the “ghost.” They aren’t rules that are really rules. “Guidelines” are flexible rules. “Ground rules” are when you make a judgment call, but don’t go out of bounds.

HBM: Many home entrepreneurs have worked in a traditional setting, and to form a virtual remote team may seem a fearful thing. What can home entrepreneurs do to feel more comfortable?

TR: Understand the world your virtual team lives in. Communication is essential; over communicate almost. Regularly have some face-to-face time, and make absolutely sure that you have transparency on sharing information. It takes a lot more work to keep information flowing and to keep it shared. It takes more collaboration to keep it going when you’re scattered across the country.

HBM: How can fear of failure effect entrepreneurs’ day-to-day actions, and what can they do to overcome it?

TR: People will do things to prevent the loss even if it means they’re also preventing the gain. They erect walls to keep form stepping off the cliff even if it prevents them from going forward. They hold onto processes, technology, and methods that are outdated. Don’t let your fear keep you from succeeding.

HBM: Some home entrepreneurs fear success. Why?

TR: Success means change, and change is different. It means you’ll have to give up something, and losing something is fearful. The business you have five years from now may be completely different than the one you have now. Maybe some of the sacred practices that drove you up to $1 million won’t be adequate to get you to $5 million. Develop a set of guiding principles to help you avoid risk, help customers, and operate better. You can step back and say, “Will this help or should I stick with what I have?” Don’t be afraid to evolve. HBM

Rieger has operated a worldwide customer measurement program for a Fortune 100 company. Rieger and his wife of 17 years have a 13-year-old son and live in California.

Deborah Jeanne Sergeant writes magazine articles, web copy and promotional materials from her home in Clyde, N.Y. Visit her online at www.skilledquill.net.

V19-2 Add: 4/12 HP:
 

As recovery creeps up on the U.S. economy like molasses going uphill in the winter time, small businesses are starting to feel the pressure ease, but that doesn’t mean it’s time to go back to “business as usual.”

That’s the opinion of consultant Jim Muehlhausen, CPA and author of The 51 Fatal Business Errors and How To Avoid Them (www.51errors.com). He has devised six basic rules that can help steer businesses clear of the pitfalls of recession:

Here are six basic rules that can help steer businesses clear of the pitfalls of recession.

 
·    Focus – Pay more attention to your business model and your business, and pay less attention to the economy.

·    Don’t Throw the Hail Mary – Don’t make dramatic changes. Keep moving and keep working at the tasks that have traditionally helped your company succeed.

·    Stop Fretting – This is a terrific time to tune up systems and make large time investments in future products/services that you just did not have time for when times were good. Focus on two years from now.

·    Buy a Competitor – Now is a great time to buy weaker competitors. Prices are low and rolling their business into yours can add valuable employees and sales at bargain prices.

·    It’s not the economy, it’s your model – The weak economy has hit businesses with weak business models much harder than those with solid models. If hit hard, it is a sign that you need to tune up your business model.

·    Ignore Web 2.0 at your peril – At its core, Web 2.0 is nothing more than an automated referral system. If your business does not need additional referrals, ignore Web 2.0, but beware that traditional marketing methods will continue to loose effectiveness while Web 2.0 methods will continue to improve. HBM
 
Jim Muehlhausen CPA, JD is the author of The 51 Fatal Business Errors and How To Avoid Them. He graduated from Valparaiso University with a B.S. in Accounting, passing the CPA exam while still in college. While subsequently attending the Indiana University School of Law, he became the youngest franchisee in Meineke Discount Muffler history (1987-1991). After successfully selling that business, Jim founded an automotive aftermarket manufacturing concern. Over the past eight years, Jim has personally coached hundreds of business owners in more than 3,500 face-to-face coaching sessions and has clients in North America, Europe, Asia, and the Middle East.  V19-2  Add: 3.11.12  Car: ??  HP:?

As recovery creeps up on the U.S. economy like molasses going uphill in the winter time, small businesses are starting to feel the pressure ease, but that doesn’t mean it’s time to go back to “business as usual.”

That’s the opinion of consultant Jim Muehlhausen, CPA and author of The 51 Fatal Business Errors and How To Avoid Them (www.51errors.com). He has devised six basic rules that can help steer businesses clear of the pitfalls of recession:
 
·    Focus – Pay more attention to your business model and your business, and pay less attention to the economy.

·    Don’t Throw the Hail Mary – Don’t make dramatic changes. Keep moving and keep working at the tasks that have traditionally helped your company succeed.

·    Stop Fretting – This is a terrific time to tune up systems and make large time investments in future products/services that you just did not have time for when times were good. Focus on two years from now.

·    Buy a Competitor – Now is a great time to buy weaker competitors. Prices are low and rolling their business into yours can add valuable employees and sales at bargain prices.

·    It’s not the economy, it’s your model – The weak economy has hit businesses with weak business models much harder than those with solid models. If hit hard, it is a sign that you need to tune up your business model.

·    Ignore Web 2.0 at your peril – At its core, Web 2.0 is nothing more than an automated referral system. If your business does not need additional referrals, ignore Web 2.0, but beware that traditional marketing methods will continue to loose effectiveness while Web 2.0 methods will continue to improve. HBM
 
 
Jim Muehlhausen CPA, JD is the author of The 51 Fatal Business Errors and How To Avoid Them. He graduated from Valparaiso University with a B.S. in Accounting, passing the CPA exam while still in college. While subsequently attending the Indiana University School of Law, he became the youngest franchisee in Meineke Discount Muffler history (1987-1991). After successfully selling that business, Jim founded an automotive aftermarket manufacturing concern. Over the past eight years, Jim has personally coached hundreds of business owners in more than 3,500 face-to-face coaching sessions and has clients in North America, Europe, Asia, and the Middle East.
 

Interview with Mona Pearl On How Technology Can Improve Sales And Productivity Worldwide

By Deborah Jeanne Sergeant

Founder of three successful businesses, Mona Pearl (www.monapearl.com) of Chicago has become a corporate coach who has helped numerous companies increase their share of the global market, including GM, Rover, Jaguar, Marriott, Hyatt Corp., Michelin, Philip Morris, Bacardi, and more. Her fluency in six languages and experiences living on three continents have given her a worldwide perspective these companies count as a valuable resource.

Mona co-authored books include Discover Your Inner Strength – Cutting Edge Strategies from Industry Leading and Grow Globally. Home Business Magazine® recently spoke with Mona about how technology can improve sales and productivity worldwide.

Home Business Magazine (HBM): How can using technology save home business entrepreneurs money when conducting international business?

Mona Pearl (MP):  Technology can save you from buying a ticket and going someplace for the first contact. It shortens the time to market.
There’s no way that people out of their home offices can work from their homes without it.

HBM: How can home business entrepreneurs use social media to sell to others internationally?

MP: Social media is a great thing, the first step in making contact. It’s great to make connections, but in international business, culture is very important. [Social media] doesn’t take the place of relationships. I still get a lot of contracts with phone calls and emails. You really have to know people so people can develop a level of trust. Social media can make the connection and introduction, but there have to be other steps that are not so social media connected.

HBM: How can home business entrepreneurs break the ice using technology?

MP: Mutual contact. It’s nicer if you belong to the same group or have people in common such as in LinkedIn. It makes it much easier.

HBM: What about cultural differences?

MP: In the U.S., if you want someone you’re direct and to the point. It doesn’t quite work that way in most of the world. I met someone on the Internet in China. It’s a business relationship for two to three months. Today, the ice broke and we’re talking about specifics. People have to get a feel for you. Do I trust the person? We overcome all of that in the U.S. with legal agreements. In countries like India, you can win a legal battle and not be able to enforce it. I would caution people against moving too fast.

HBM: How do you build an intimate business relationship?

MP: It has to be personal. You can introduce yourself, but the focus is not all business. You have to start talking about yourself. They want to know who you are, what you think, and how you think. In the U.S., we go to a networking event. You hardly ever talk about your personal life. It usually pertains to your professional life, and then you immediately go into what you can do as a business. You need to make small talk with people outside the U.S. It’s not about the weather. In many cases, it’s about opinions on the global economy, your feelings about how to do business, and certain frustrations. Many times, they get into philosophical ideas.

HBM: How can you make international potential clients feel you understand them?

MP: They are happy I know about their country and culture. I’m always amazed about how much people in other countries know about the U.S., and many in the U.S. don’t know much about other countries and their customs. It’s more of a general framework to build mutual appreciation, and you want to learn about the person. You don’t ask how big is their apartment or house, or how much money they make. But show you know where they’re coming from and their values. I was amazed that one of the people I’ve met is from China, has a French name, and speaks fluent French. It was too direct to ask how come she speaks French. But I asked about her background. And this is how we build a bridge.

HBM: What are good next steps?

MP: Skype is good for helping, because you can see the person. It’s three-dimensional. You can hear or see them. You can write and see in social media. But in other programs, like Skype, you can also hear the person.

HBM: How do you use social media?

MP: If there’s a new article I write, I send a link on Twitter and I Twitter anything new about my professional life. I post to LinkedIn. Culturally, you have to be careful about how you articulate what you want to say. Idioms and the meaning of what we say are important. The open new horizons that were almost impossible to reach before. HBM

Deborah Jeanne Sergeant writes articles for business and consumer magazines and marketing and promotional copy. Visit her online at www.skilledquill.net.
 

Ryan Blair Shares Secrets of Entrepreneurship

By Deborah Jeanne Sergeant

Ryan Blair represents a good example of a life that made a 180-degree turn for the better. After his father had abandoned 13-year-old Blair and his mother, the boy turned to crime and gang life to get by. A special mentor, his stepfather, helped him change his life. Blair wrote of his journey in Nothing to Lose, Everything to Gain: How I went from Gang Member to Multimillionaire Entrepreneur (www.nothingtolose.com). Home Business Magazine® recently spoke with Blair about entrepreneurship.

Home Business Magazine (HBM): What turned your life around?  

Ryan Blair (RB): My mom started dating a guy who was exceptionally wealthy and worked from his own home as a real estate agent. I got to model after a guy who worked hard, play hard, and had integrity. He taught me a new way of life. I knew I’d never go back to the way I was. I did odds and ends for him. He was a self-made multi-millionaire. I spent my business career trying to “beat” him.

HBM: What is the key to finding a good mentor?

RB: I’ve had a number of mentors in life. Some have been short-term and others long-term. Some had traits I liked and some had ones I didn’t. They key is to understand the things you want from a mentor. You have to look at what you’re weak at. Find a model that you want to be like. If you want to be like Oprah and have a magazine, TV show and all the things she embodies, then she would be a good mentor to you. If you can’t provide her enough value, find the next best thing. There are guys I’d love to learn from, but they wouldn’t be a good fit for me, so I read their blogs and books. Steve Jobs is someone I’ve studied inside and out, and I’ve applied so many of his techniques and philosophies to my businesses. It’s a remote mentorship because I’ve never met him.
Secondly, offer value to that mentor. I get thousands of requests for mentorship, but they don’t offer anything in return, like filing, cleaning my house, or something. All too often, it’s “please mentor me; I need my shot.” But they don’t offer anything in return. All I want is mutual respect and appreciation. I want the same amount of time, value, and energy. Most fail to say what they’ll give to me as a mentor.

HBM: What was the most important lesson you learned from your stepfather?

RB: Honor your deals, even if you disagree or change your mind. I’ve watched him cut friendships off if someone else was not honoring his deal.
 

HBM: One of the chapters of your book addresses cons of a home-based business. What is an example of one, and how can one avoid it?

RB: You don’t have a large place for camaraderie. I have a fairly large home, so at any given time, I have six to seven employees around my home. A lot of time [home business entrepreneurs] lack that energy from other people. They feel lonely at home. I remember thinking to myself that I missed the fun and excitement after leaving the corporate world to work at home. Seek camaraderie through networking. Schedule time for it; if you don’t, you’ll never make it.

HBM: You also discuss risks and sacrifices. What are a few that home business entrepreneurs should be willing to make?

RB: Until you have enough money accumulated, sacrifice luxury. Sacrifice TV, time out, and even time with your family and friends. I love my friends dearly but to have this book become a best seller, I have to sacrifice time with them. You have to sacrifice your ego and especially your comfort zone.

HBM: What are some of the big mistakes home business entrepreneurs make?

RB: They try to follow the rules in corporate America, like work from 8 to 5, and work Monday through Friday. But it may not allow you to schedule your down time. I rarely work before 10 a.m. I wake up at six, but I plan what I want to do and get in the gym. Then I can take action. Entrepreneurship is an addiction to being successful, not a job or career. You have to feed the addiction and recharge from it or you’ll burn out. HBM
 

(Ryan Blair has founded and sold several companies. His third, ViSalus Sciences, took a nosedive during the recession of 2008, but he turned it around within a year and the firm grew by several thousand percent. He serves as CEO for ViSalus Sciences. Blair lives in Hollywood with his son, Reagan.)

Deborah Jeanne Sergeant writes magazine and newspaper articles, marketing materials and Web copy from her home in Wolcott, N.Y. Visit her online at www.skilledquill.net or www.cheapchownow.blogspot.com.

Previously published in the December 2011 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($19.00 for 1 year, six issues). Visit http://www.homebusinessmag.com

V18-6 Add: 12/11 HP:
 

Big Sales Equals Big Growth

By Deborah Jeanne Sergeant

Years ago, when Tom Searcy looked at displays of Inuit whale hunters at a museum, a correlation formed in his mind between them and his experience as CEO of four multi-million dollar companies: the need to “get the big one,” whether it’s a sales contract or a whale. Now a nationally-sought speaker, his 2008 book (co-authored with Barbara Weaver Smith), Whale Hunting: How to Land Big Deals and Transform Your Company, encapsulates his philosophy.

Home Business® Magazine recently spoke with him on how the home business entrepreneur can use large contracts as a catalyst for growth.

Home Business® Magazine (HBM): How did your corporate background translate into starting a new business of helping other companies grow?

Tom Searcy (TS): I’ve learned a lot. Isolate a space for work; otherwise, life never separates. I found that I could be a lot more productive working at home than in a corporate environment, because I was in control of my time. When you work from home, as long as you shut down the phone and computer, etc., you can get blocks of uninterrupted work accomplished. I had to also learn to shut down. I put a sign on my desk for my benefit that reads, “Office hours 8 a.m. to 6 p.m. Monday – Friday.”

HBM: How can home business entrepreneurs find the big contracts that can help them survive in today’s economy?

TS: Less than 5 percent of the opportunities in the marketplace are good for you. Look for just the right kind of deals — then spend time talking to those kinds of people. Networking opportunities like chambers of commerce are not where big contracts are found. Those are for small to mid-sized sales, but your big deals are typically found by contacting the most senior person in that company who does their buying.

HBM: What are the keys to landing the big contracts?

TS: Solve that buyer’s business problem: time, money or risk. If you make soap at home, a large retailer doesn’t have a lack of soap supplier problems. So what’s the problem? They don’t have enough eco-friendly soap? They don’t have a good enough package? They must have a business problem, not a supplier problem.
    When you’re going to go sell to that organization, their biggest concern isn’t typically the quality of your services or products. Sell to your buyer’s fears, like you’re too small. We advise companies to make a long list [of why] a big company would be afraid of doing business with you. Be able to answer all those fears.

HBM: In your program, you say that when talking with big companies it’s important to be specific. Why is this?

TS: To differentiate yourself. [Your buyer] should mentally raise his hand and say, “Oh, she’s talking about me!” when you make specific statements about time and improvement. It establishes you as an expert in that particular space which can allow you to charge more. I could tell people that I do sales training or coaching or consulting. Lots of people do that, but few people say “I focus on large account sales that are 10 to 20 percent larger than most sales and I’ll help you double the size of your company.” That’s what the power of specifics gives to you.

HBM: You say that the nice guy finishes first. How and why does that work?

TS: Do what your mamma taught you, like fulfill every commitment you make. The experience of working with you should be pleasant. If you give a sense of gratitude, that is a differentiating factor that puts you ahead of most in the marketplace. Doing all three makes you unlike anyone else.

HBM: Is it important to look like a big company to win large contracts?

TS: The issue is that you should seem to them as stable, successful, consistent, and safe. Your professionalism should be that of a big company. You should have professional processes and procedures as to how you handle things. Anything that should face the customer should be consistent and well done like the letterhead, proposals, invoices and web site. Just use the tools from QuickBooks or templates from Excel.

HBM: What aspects of a big company are best avoided by the home entrepreneur?

TS: You want to continue to show that personality of small business. One of the folks I know follows up every significant meeting or interaction with a handwritten note. It’s one of the ways the company says that they make clients feel like their most important customers. HBM

Deborah Jeanne Sergeant writes magazine articles, Web copy, and marketing materials from her home in Wolcott, N.Y. Visit her online at www.skilledquill.net

Previously published in the August 2010 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($19.00 for 1 year, six issues). Visit http://www.homebusinessmag.com

V17-4 Add: 11/10 HP:

Tom Searcy and his wife, Jen, have three children, Zack, 18; Cate, 7; and Harper, 2.

Interview with Dave Ramsey
By Deborah Jeanne Sergeant

Dave Ramsey is no stranger to building new business enterprises. With no start-up capital, he grew his net worth to more than $1 million by age 26 but lost it all through poor money management. He went back to his “first love,” real estate, to get out of debt.

To figure out where he went wrong, he interviewed dozens of older, wealthy people. Through writing books and a syndicated radio program, he began to share their wisdom and the insights he gained from his own experience.
    Home Business® Magazine recently sat down with Dave and asked him about business franchises and effective entrepreneurship.

Home Business® Magazine (HBM): How can entrepreneurs pick the right kind of home business franchise?

Dave Ramsey (DR): It’s a lot like picking the right business to go into. The only reason to go into business is to make money. You have to work hard at it. If you’re not passionate about it, you’ll burn out so fast that it is incredible. First and foremost, it should be something you’re passionate about it. Second, is it a unique operating process/product line. (Is it unique where it cannot be duplicated?) Third, is it a national brand that’s recognizable? They should have a quality control process.

HBM: What are a few common mistakes people make when investing in a home business franchise?

DR: They don’t dig into it further than the materials given to them by the company. You need to talk to the competitors and 20 to 50 franchisees. {The company] needs to give you the five best that give you the song and dance. You also need to talk to the five worst. Ask the competitors if they have a better deal and why didn’t they go with the brand you’re looking into. Get them to talk bad about the company you’re looking at, but realize they may have mixed motivations.

HBM: What are some effective means of promoting a home business franchise?

DR: Anytime you open a business, you have to be effective in promoting whether it’s a franchise or not. You’ll need to learn to be a Web marketer extraordinaire. There’s plenty of material out there.

HBM: How can entrepreneurs make money when they don’t have much or any capital to start a business?

DR: We started in our living room on a card table in our living room, and we have a multi-million dollar company and we know it can be done without borrowing a dime. It takes a while to get it started and to turn the wheel over, but the next time it’s easier and the next few hundred times, it’s easier than that. Have a budget where you reinvest a percentage of every dollar you earn to grow it.
 
HBM: What are the biggest ways that home entrepreneurs waste money?

DR: Toys. Technology and buying a computer or copiers I’ve “got to have” or office furniture within the home. The creature comforts we tend to rationalize as “business expenses I can write off.” Poorly purchased advertising. They lurch into the advertising market without learning anything about it. I can’t tell you how many home businesses are almost in bankruptcy court over a Yellow Pages ad only to find out that the Yellow Pages ad isn’t where their market will look for them, and it cost more than they thought.

HBM: How can home businesses advertise effectively?

DR: Instead of just purchasing an ad campaign, target test and measure. Give an ad a small try. If the response is enough to pay for the ad, make it larger. With a franchise, ask the most successful franchisees what they did. Ask the bottom five guys what they did and avoid it.

HBM: On your site, you state that you give “biblically-based advice” to clients. Why?

DR: I’m a Christian. Years ago, I went broke, so I decided to run every part of my life according to the Bible. It sounds hokey, but it works. You run your marriage that way, and it works. It will work with business, too, and finances. Treat people like you want to be treated. Instead of working out an ethics policy, this is a pretty simple thing. It’s not rocket science: It’s living life well and enjoying the people in your business. HBM

Deborah Jeanne Sergeant writes magazine and newspaper articles, marketing materials and Web copy from her home in Wolcott, N.Y. Visit her online at www.skilledquill.net.

Previously published in the October 2010 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($19.00 for 1 year, six issues). Visit http://www.homebusinessmag.com

V17-5 Add: 11/10 HP:
 

More About Dave Ramsey

    Dave Ramsey hosts the nationally-syndicated radio program The Dave Ramsey Show (heard on more than 450 stations), pens best-sellers, including The Total Money Makeover, and heads The Lampo Group, which advises consumers on how to spend and save wisely. Ramsey and his wife, Sharon, make their home in Franklin, Tennessee with their 18-year-old son, Daniel. They have two older, grown children. HBM
 

By Deborah Jeanne Sergeant

Brian Tracy is renowned for his coaching on goal achievement and overcoming obstacles. As chairman and CEO of Brian Tracy International in Solana Beach, California, he has penned more than 45 books. The most recent title he co-authored with Mark Thompson: “Now, Build a Great Business! 7 Ways to Maximize Your Profits in Any Market.” Home Business Magazine® recently spoke with him on the current economy and network marketing.

Home Business Magazine (HBM): What are the keys to success that apply to all industries?

Brian Tracy (BT): Focus very clearly on a few small things. The purpose of a business is to give someone something that they want. Have a product or service that’s really excellent. Most companies, 97 percent or more, drift from this. They put all their focus on clever advertising and clever taglines to get people to buy average or mediocre products. You need to back off and offer a really good product or service. What can you offer that no one else can offer and will satisfy them at a higher level than what anyone else can?

HBM: Why do many doubt a new home business’ success in this economy?

BT: Most successful businesses in the country were started on a kitchen table. As long as people have needs unmet or problems unsolved, there are business opportunities. They need to solve that for them. If you can, you can have all the business you want. If you take all the marketing books in the world and distill them, the key to marketing is hope. People buy hope, the hope that you will help them solve a problem or achieve a goal.

HBM: You’ve recently survived life-threatening throat cancer. How can entrepreneurs cope with personal difficulties while keeping their home businesses going?

BT: Do one thing at a time. Start the day with a list of things you have to do, and do the most important things first. Even if you don’t get the list done, you’ve gotten the most important things done. So many people spend so much time on things that aren’t important. It’s the difference between success and failure.

HBM: How can a home business entrepreneur break through the threshold of “just paying the bills” to “phenomenal success”?

BT: There is a very simple equation. Activity equals results. If you want to increase your success, increase your activity. Increase contact with customers. The more people you contact, the higher your sales will be because of the law of probabilities. If you contact two to three people a day, you’ll have a level of success. If you contact 20 to 30, you’ll increase your level of success. It’s astonishing how many business owners are terrified of selling. Salespeople who see the most people a day are the highest paid regardless of the economy.

HBM: How has technology impacted network marketing in the past 15 years and how has network marketing stayed the same?

BT: Network marketing itself is always one-on-one. It’s also called relationship marketing. You can’t recruit en masse through thousands of e-mails. You can use technology to attract people to talk to one at a time. Everything in business is to get you face to face with people to respond to your offer. You have to realize the Internet is merely a door opening, and it has to be followed up by aggressive sales activity by the business owner. But the Internet has changed everything. Virtually everything is online for my business. If you want to be in network marketing, you have to be extremely literate online.

HBM: What is your best advice to anyone considering a network marketing opportunity?

BT: The product has to work. It has to be a good product. An enormous number of them are all hype with no value at all. People get into them because they want to make a lot of quick, easy money. But the people selling the program are the ones making all the money. The people running the business have to be people of good character. They have to have good Internet support. You can’t be struggling to get payments. It has to be properly organized. You can only beat that horse of good and easy money so many times before it eventually dies. HBM

Deborah Jeanne Sergeant writes from her home in Wolcott, N.Y. Visit her online at www.skilledquill.net or http://cheapchownow.blogspot.com.
 

Previously published in the December 2010 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($19.00 for 1 year, six issues). Visit http://www.homebusinessmag.com

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More About Brian Tracy:

Before founding his self-named company, Brian Tracy headed a $265 million development company. His fluency in four languages and his diverse career path — including sales and marketing, investments, real estate development and syndication, importation, distribution, and management consulting — have helped Brian Tracy International become recognized as a top consulting company. He and his wife live in California and have four children.

Interview with Steve Strauss on Why You Should Start a Home Business When a Recession Loom.

Let’s face it, the economy is tough and tight right now. Should one start up and operate a home business during a recessionary time? Home Business® Magazine satdown recently with Steve Strauss, the author of the Small Business Bible and small business columnist for USATODAY.com to get answers to this and other pertinent questions.

Home Business® Magazine (HBM): I understand that you began your first business from home. Is that right? 

Steve Strauss (SS): I did indeed. I worked from home for many years and still do part-time. Whether it is working on my web site (MrAllBiz.com), seminar business, or writing a book, I love the ease of working out of my house. But I always do say that the good news about working from home is that you see your kids a lot. The bad news is that you see your kids a lot! 

HBM: That brings me to my next question: In this changing economic climate, would you say it is still a good time to start a home-based business?
SS: You bet, in fact, starting a business from home is one of the smartest things you can do during a recessionary time.

First of all, it is a hedge against bad times. When you work for someone else, you can always be let go when times get tough. But when you own your own business, the only person who can fire you is you.

Second, from a business perspective, it makes a lot of sense. One key to success in any business is the ability to keep your overhead low, and that is even more important in a down economy. As rent is often one of your biggest business expenses, there are few better ways to reduce costs than to work from home. 

HBM: What advice would you give someone starting a business in this economy?

SS: The first is that you have to choose wisely. Of course it is never fun to have a business fail, but there is simply less room for error when times are tough, so if you are going to do it, do it right. Pick a business that you know well and one that fills a need. This is not a time to be too creative or ahead of the crowd.

In addition, make sure your family is behind you. You need their support both in terms of the long-term plan, but also in respecting your day-to-day running of the business. 

HBM: You mentioned finances earlier. Is it not a lot harder to get the money to start a business in a down economy?

SS: Yes and no. One of the real negative effects of the current mortgage crisis is that a traditional source of capital for new business startups is now much harder to tap into—home equity.

But there are still all sorts of other ways to fund the dream: Borrow from friends or family; that is the most common method. Use your credit cards—that works, but only so long as you have a plan for paying them off fairly quickly.

Be creative. Maybe you can get an advance from grandpa on that inheritance. What about finding a partner who has the cash?

SS: There are two. The first is not earmarking enough money for advertising and marketing your new business.

HBM: But didn’t you just say to keep your overhead low?
SS: I did, but to every rule there is an exception, and this is it. Starting a new business, especially a home-based business, is like being alone in a dark room—you know you are there… but no one else does.

The only way to turn on the light, to let people know you are out there, is to tell them through your marketing and advertising.

HBM: And the second mistake?
SS: It also has to do with marketing, namely, not trying enough strategies to get the word out. Too many new entrepreneurs try one or two tactics—say the Yellow Pages or flyers or whatever—and don’t try others.

In my book The Small Business Bible, I have a chapter on shoestring marketing in which I list about 30 different ways to get the word out without breaking the bank. Instead of one or two strategies, try five or ten.

Especially in a tough economy, creative marketing could make the difference between success and failure.

SS: What I love about entrepreneurs is that we dream big, and that is true no matter the economic circumstances. So to quote Aerosmith: “Dream On!” HBM

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