GBG Family Team

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

V17-6 Add: 1/11 HP: 1/13/11

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

 V15-2 Add: 04/2011 EXPO: ?

Interview with Mark C. Thompson
By Deborah Jeanne Sergeant
(Photo Courtesy of Mark Thompson)

If you want to succeed in business, look no further than the advice of Mark Thompson (www.markcthompson.com). He’s served at the executive level of Charles Schwab & Co. and collaborated with the likes of Warren Buffett, Steve Jobs, and Brian Tracy,. A widely sought speaker and author of many books, including “Success Built to Last,” Thompson often addresses sales and productivity issues. Thompson took a break from attending sessions at the Clinton Global Initiative in New York City in September 2010 to speak with Home Business Magazine®.

Home Business Magazine (HBM): How can home business entrepreneurs increase sales with minimal overhead?

Mark Thompson (MT): Do you your homework on your customers, investing the time to learn what’s valuable to them and focus on creating that product or service in a way that it’s unique and special for the customers that you serve. When you have those kinds of relationships, there’s often less pressure on pricing and competition because they feel connected. You’ve taken their special interests into account.

HBM: What are the most common misconceptions that home business owners have about achieving strong sales?

MT: It’s about knowledge, not money. It’s not advertising but going the extra mile to know what makes their products valuable to customers. [Large] businesses may say they have the advantage but they lose touch with what a home business person can do, which is to get a deeper understanding of what the individual customer wants. It’s all about customer intimacy.

HBM: Considering the sluggish state of the economy, is this the age of aggressive sales techniques or soft selling?

MT: I think that there’s a combination: persistence. It’s the age of the educational sale. Customers get abandoned. As a home business owner, you can reach out and touch them with knowledge, caring, and interest in what’s important to them. The way you treat the customer needs to add value. Know everything about your product you can. Be passionate. If you find it impossibly difficult to go deep about it, it’s probably the wrong product. You need to find another one. Given the deep discounts and tremendous competition, knowledge of the product and customer and caring will set you apart. These are the time we see companies gain the greatest market share, during tough times.

HBM: How can technology boost sales?

MT: More and more of the software and information technology tools that used to be the exclusive domain of big guys are now available on the web. It’s really important to keep a database to keep track of customers’ special needs so you’re smarter than the average call center. You can remember what the last transaction was and the names of their kids and spouse, if that’s necessary to the relationship. The access as a newsmaker has changed. Bloggers are making a market. Get up to speed on the social media. It’s hard to see if you’re a home business, but it’s democratizing. There’s more noise out there, but there’s also opportunity. Tweet and wiki in ways that enable you to communicate as an expert in your field.

HBM: What are the top hindrances to productivity, and how can home business entrepreneurs overcome them?

MT: Lack of focus. Set goals and schedule your day. Technology can also be a horrible time waster. You may need to answer e-mail for your products or services. But you need to partition your day for the most important, not the most urgent. Great leaders are very disciplined about how they spend their time. They focus on their outcomes and make sure their activities are focused on that. Focus on what matters during the day, which is hard when so many things are urgent. You can’t manage your business effectively until you manage your time. There’s no way to save time — you can only manage it.

HBM: How can successful home businesses thrive for the long haul?

MT: Whether a business or New Year’s resolution, most goals fail because people start looking at their wish lists at what they want to accomplish, but they don’t focus on what they are passionate about. Most great businesses don’t have sets of goals. Before you do that, be clear about what you’re willing to be an expert about. Is it the kind of thing you’ll be passionate about when you’re tired? Are you willing to do it even when you fail? Are you willing to bounce back? Is it something that when you do it you lose track of time? In some respects, passion is something you’re willing to do secretly for free. 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 February 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

V18-1 Add: 4/11 HP: CAR: ?  EXPO: ?
 

Mark Thompson and his wife, Bonita, and their daughter, Vanessa, 11, live in Stanford, California.

Add: 4/11 HP: ? CAR: ? EXPO: ? EXPO: 4/11

Why Social Media is So Important to Your Home Business

By Deborah Jeanne Sergeant

As one of the top-rated blog platforms, Blogger, owned by Google, represents an authoritative voice in social media. Anil Sabharwal helps shape the product

According to Anil Sabharwal, senior product manager for Google Apps, "Without engagement online, you're at a distinct disadvatage to the competition out there."

direction for Blogger, which boasts hundreds of millions of active readers. He is a recognized serial entrepreneur with more than 10 years of senior leadership experience in the high-tech sector.
    Recently, Home Business Magazine® spoke with Anil Sabharwal, senior product manager for Google Apps about home businesses and social media

Home Business Magazine® (HBM):

How can home business entrepreneurs leverage the power of social media when their company may be obscure/new?

Anil Sabharwal (AS): In the last few years, everything online has become about people and connecting with people. It’s the next evolution: You want people to recommend your business.

HBM: Some home business entrepreneurs may resist investing time in social media.

AS: I think it’s important for home business owners to not think of it as “social media.” Holistically, it’s about how will they attract new customers, engage with existing business clients, and engage them in making recommendation to others. The majority of people start their commerce experience online, look for recommendations, or ask a friend before making a purchase. Think of social media as how to engage new users, and using the power of the Internet and Blogger is critical. Without engagement online, you’re at a distinct disadvantage to the competition out there.
 
HBM: How can home business entrepreneurs attract a following on social media venues?

AS: The most important thing to engage in social media is to be part of the community. Communities resist those who say, “I’m here, I’m part of you, please buy from me,” but don’t participate in any other way. Reciprocate and be part of the community. Be involved and understand what other individuals are involved in the same type of home business. See how they have built up their businesses. Start to engage on these platforms like Twitter, Facebook, and Blogger. Put out these feelers to get response. Actually engage with those responses. The last thing people want is for you to say “Look at me,” and you go away and wait for the business to roll in. It’s like anything else you do to engage with customers. If you’re passionate about your home business and love what you’re doing, the community aspect will be the most fun way to engage with customers and attract new customers, because you’re engaging with people equally passionate.
 
HBM: How can home business entrepreneurs develop a "voice" for their social media writing?

AS: The biggest mistake people make is trying to create a voice that’s not their own. People are actually very interested in hearing from entrepreneurs and sole proprietors and what it’s like to setup the business, develop the product or service, the struggles you go through, and the high points when you close a deal or address a large audience. The most important thing is it has to be genuine. If you have a tone you think your users will engage with because it’s corporate, don’t do it because people want to hear from real people not corporate entities. The most important thing is being true to the voice of the entrepreneur.
 
HBM: Would you recommend that a home business entrepreneur hire someone to maintain his or her social media?

AS: Except for extremely rare circumstances, we’d always suggest home business entrepreneurs should do their own writing. It can be a great way to engage with readers. They’d rather hear from the actual person. I’d absolutely encourage any entrepreneur to have their own voice. They’ll hear what the community is saying and be able to incorporate it into the product or service. If the entrepreneur feels writing isn’t his best skill, have a friend, colleague or contractor read it and provide tips about grammar.
 
HBM: What do you see in the future of social media as it relates to home-based businesses?

AS: We’re starting to see a community of home business owners. Instead of traveling to a conference, we’re seeing people get together on blogs talking about how they started up businesses. We’ll continue to see that over time. The world is becoming flatter and flatter, and business is becoming more global. A business that previously saw itself restricted to within its own community, can now sell a product or service to someone halfway across the world. HBM

Deborah Jeanne Sergeant writes web content, marketing materials and magazine articles from her home office in Wolcott, N.Y. Visit her online at www.skilledquill.net or www.cheapchownow.blogspot.com.  V18-3 Add: 7/11 HP:

Anil Sabharwal founded RAYV, Australia’s first and top-rated business review social community, along with Desire2Learn, now the second-largest online educational companies. His leadership roles at various technology firms include Microsoft, IBM, and Viewpoint. He lives in Sydney with his wife and two children.

Interview with Robert Kiyosaki
By Deborah Jeanne Sergeant

Robert Kiyosaki has made a living from doling out counterintuitive advice. The New York Times best-selling author of Rich Dad Poor Dad recently spoke with Home Business Magazine to discuss his seemingly divergent financial tips.

Home Business Magazine (HBM): How did you come up with the idea for Rich Dad?

According to best-selling author Robert Kiyosaki, “For people who want security, the price is freedom.”

Robert Kiyosaki (RK): It’s a true story about my two fathers. My rich dad was my best friend’s father who started teaching me at the age of nine. My poor dad was my real father who was a smart man, a PhD who died poor. I never did well in school. That forced me to seek other teachers.
 
HBM: How did you launch Rich Dad?

RK: My rich dad showed me about money with Monopoly. I made my board game, “Cash Flow,” a little more sophisticated than Monopoly. It’s a game on accounting. In 1997, I wrote Rich Dad Poor Dad. It was turned down by every publisher, so I self-published and in 2000, it became the only self published book to ever make the New York Times best-seller’s list. Then Oprah called, and the rest is history. It’s been published in 51 different countries or so and lots of languages.

 
HBM: What is your worst financial mistake, and how did you recover and learn from it?

RK: The problem with most people in school is you’re taught to not make mistakes. If I’m not making mistakes, I’m not learning. How do you learn to walk or ride a bike without making mistakes? I’ve lost millions of dollars and I’ve made millions of dollars, but when I’ve lost, it’s for the best because I learn. Most successful entrepreneurs have made lots of mistakes.

HBM: How do you learn from your mistakes?

RK: I ask myself what didn’t I know. I have friends to ask why did this happen. It’s like being a detective. I have very good friends which is a key to being an entrepreneur. We help each other out. If your friends are all employees and government workers, you won’t make it until you change your friends. Your husband or wife is the most important person on your team. If he or she is security-oriented instead of freedom-oriented, it will be a lot harder to be an entrepreneur. I don’t want job security.
 
HBM: Why is the “old” financial advice — go to school, get a job, save money, get out of debt, invest for the long term, and diversify — flawed advice in your opinion?

RK: The more money you make as an employee, the more taxes you pay. The problem with saving money is you’re taxed on it. 401k and mutual funds are highly taxed. I can make millions and pay no tax if I don’t follow that advice. Every time the Federal Reserve prints a dollar, two things happen automatically: Taxes and inflation go up. That’s why employees go back to school and work harder to move up the tax bracket, and they never get ahead. Most people diversify into stocks, bonds and mutual funds. Warren Buffet said diversification is protection against ignorance. I know exactly what I buy and why. When I buy a business or an oil or real estate project, I know exactly what it is, and I buy the best one.
 
HBM: What are the top three mistakes that home business entrepreneurs make?

RK: They’re focus on the product, the least important thing. They lack sales skills. You have to have integrity and extremely good people skills. I have almost no business skills. I hire people with business skills. I have leadership skills and am a good team player.
 
HBM: Why is it important to keep growing as a person?

RK: You grow or you die. If you’re growing, your friends and business partners will grow. If not, you have the same old people and same old problems. Being an entrepreneur is the best personal develop program you could get into. The more you work on yourself, the better your business. I’m always taking courses. Before I wrote Rich Dad Poor Dad, I took a course on how to sell books. I can’t write, but I’m a best-selling author, not a best-writing author. For people who want security, the price is freedom. The more security you have, the less freedom you have. That’s why in jail, it’s called “maximum security” because they have the least freedom. HBM

Deborah Jeanne Sergeant writes articles, press releases and web content from her home in Wolcott, N.Y. Visit her online at www.skilledquill.net or www.cheapchownow.blogspot.com.  V18-4 Add: 9/11 HP:

Home Business Magazine® (HBM): What kind of a business plan is required for a successful home business start-up?

Cameron Johnson (CJ): You have to have a product or service that offers customers a unique advantage over the competition. Some people think it has to be price, but only one person can have the lowest price, and the person with the lowest price isn’t necessarily the most successful. The business plan should address: “How will I get customers? How will I market the product or service? Who will I target?” The principles of a business plan are pretty much the same. But after page one to two, everything is unpredictable, because costs or competition will change and you don’t know how things will be received by the market. You have to be able to continually adapt. Companies that fail to adapt will die. Others are brilliant at adapting.

HBM: What is personally required of an individual to start a successful home business?

CJ: Passion and dedication. You’ve got to enjoy what you’re doing. If it’s just a job, you might as well go get a job. There’s no point in taking on risk if it’s something you don’t enjoy.

HBM: How much financial backing should an entrepreneur have before starting?  

CJ: Start with the least amount of money possible. Some people say they need a certain amount to start, and I say you need a half of that or a third of that. That gives you the biggest return. If you put all your eggs in one basket, it’s harder to adapt when you need to. Unless it’s very capital-intensive, you don’t need much money.

HBM: What are the necessary pieces of equipment for a home business start-up?

CJ: It varies by business. The bare minimums are what I always preach. The less you have, the quicker you’re profitable.

HBM: How can entrepreneurs get financial backing?

CJ: It’s a double-edged sword. Right now, the biggest complaint from people wanting to start a business is, “I don’t have capital.” Banks aren’t lending but if they were, it would give you a greater opportunity to screw things up. So it will help you be creative and spend less. If you have a proven business plan, share with friends and family. When I have an idea, I share it with everyone. People say someone will steal my idea, but it’s not like I invented something that will replace the toilet. I tell people to get their feedback. Will they buy it, help me improve it, or tell me it’s already been done? If someone else is excited, he or she might buy into the business.

HBM: How can entrepreneurs get the exposure they need for success?

CJ: It doesn’t matter if you have the greatest product in the world if no one will buy it. Have an idea of where your customers will come from and how to get to them. Partner with blogs and magazines that target that audience. If you partner with them, hopefully you won’t have to spend money on advertising. Google AdWords help with targeting people. Social media makes it easy to find people. A lot of people write blogs as a hobby. Others do it to make money. Instead of advertising on a blog, do a revenue share where you give them a 10-percent share for the business you receive.

HBM: What should entrepreneurs do when they hit roadblocks?

CJ: It’s not always going to be smooth sailing or everyone will do it. If you have something people want, it should be the perfect recipe for success.

HBM: What are the top reasons home business start-ups fail?

CJ: Not knowing their market or they’re creating something no one wants. Try to find if something out there is similar. If it’s already being done, now you need to find out if you can do it better or cheaper. If you have a good product and no one’s buying, improve it and tweak it. HBM

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

Previously published in the October 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

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According to Cameron Johnson, finalist on Oprah Winfrey’s “The Big Give” program on ABC, “You’ve got to enjoy what you’re doing. If it’s just a job, you might as well go get a job.”