16 Basic Business Terms that Small Business Owners Should Know!

When deciding to start a business, an individual should do their homework and get a clear understanding of the following:

• What products or services they intend to offer?
• Who is their ideal customer?
• What needs do they want to meet?
• Why should anyone buy their products or services?

Also, it is advisable to have to a clear understanding of some basic terms that are commonly used in the business world.  You do not have to attend college or graduate school to understand basic business terms.  But, it is good to have some understanding of basic business terms before starting a business.

Here are a few ways to educate yourself regarding some of the basic business terms:

• You may want to go to college to receive a bachelor’s degree in business administration or Master’s in business administration (MBA).
• You can take online courses to get a general understanding of what it takes to start a business.
• You can always hire a business consultant or business coach to give you guidance on starting your business.
• There are many programs out there to assist individuals with starting their own business.
• You can always do your own research on how to start a business by reading books focused on the type of business you want to start.

By knowing certain basic business terms, you will have a clear understanding of how to be a successful business owner.

Here are sixteen basic business terms every small business owner or entrepreneur should know:

1. Business Plan: This particular document will give you a sense of whether or not it makes sense to start your business at a certain time, how does your particular business industry look, what are the industry trends in your business field, and helps you to determine whether or not the type of products or services you will offer to customers is worth selling. Business Plans are normally written for a three year period or a five year period.  Good to review and edit your business plan on a yearly basis.

2. Marketing Plan: This is the most important part of the business plan. The marketing plan lets the business owner know how to promote, advertise, and offer their products or services to their ideal customers.  The Marketing Plan should be reviewed and edited whenever the business owner decides to introduce a new product or service to their customers.  Also, should be reviewed and edited if the business owner needs to revamp a particular product or service.

3. Market Research: The entrepreneur or business owner will do extensive research on how to reach their ideal customers. Doing research will let the business owner know the right techniques to use to sell their products or services to their ideal customers.  The results from the marketing research will go into the Marketing Plan for the business.

4. Incorporation: This is the process of filing the necessary paperwork with your local government agency to have one’s business recognized as a legal entity with certain rights and protections.

5. Capital: The equity (whether monetary or non-monetary) that an entrepreneur will use to start their business to cover any startup costs. The best form of equity to start a business is one’s own money or borrowing money from family or friends.  Can always borrow money from banks by way of a loan.

6. Business insurance: This is a way for small business owners to protect their business from many risks. It does not cost much to get business insurance to protect your business from lawsuits filed by customers, damage to one’s business due to unforeseeable disasters, and incidents that occur from employee negligence.

7. Financial Management: As a small business owner, you must have a clear understanding of the business finances. Here are a few reasons why understanding the business finances is important:

•     Managing old and new assets so that every asset contributes to the maximum extent possible toward the profitable            operation of the business.
•    Ensuring the assets that you have are used to bring the maximum return possible on the money that you invest.
•    Obtaining funds to finance additional assets.
•   Evaluating the need for new assets.
•    Repaying borrowed monies from profits that the same money has generated. Source (Page 88) The Entrepreneur &            Small Business Problem Solver by William A. Cohen (2006 3^rd Edition, John Wiley & Sons, Inc.)

8. Record Keeping: This is the process of keeping the records of the business to ensure that the business is profitable and is being run efficiently. Here are the basic requirements for a good record-keeping system:

• The system that you choose for the business should be easy to use and to understand.
• The system has to be very accurate and relevant to the particular business. Accurate means that the record keeping system should not have any errors and conform to whatever standards you have set for the system.  Relevant means important to your business.
• The record keeping system should be consistent regarding the standards and structure decided on for the system.
• The system should keep the records in a timely fashion and should always be current.

9. Product or Service: These are the items that the business intends to sell to their ideal customer.

10. Customer: The individual or entity that a business would like to sell their products or services to.

11. Pricing: This deals with the process of deciding how much the business will charge its customers to buy its products or services. The price for products or services is determined by current market.  Here is how the pricing decision affects one’s business:

• The price will determine how much profit the business makes.
• The price will determine the amount of financial resources the business has to compete in the marketplace.
• The price will determine whether or not the business can be successful with introducing the product or service into a new market.
• The price selected for a particular product will create a certain image of the business. Status and quality comes from high prices, and economy and value comes from low prices.

12. Promotion and Advertising: This is the process of using different avenues to get the word out about your product or service to the targeted customers. The different avenues a business owner may use to get the word out about their product or service are:

• Print (newspapers and magazines).
• Broadcast (radio, TV).
• Direct Mail (letters addressed to potential customers).
• Specialty items (pens, pencils, and other gadgets with the business name and product name on it).
• Outdoors (Billboards and bus posters).
• Social Media (the internet).

Here are three basic reasons for the process of advertising:

• To promote the awareness of a business and its products or services.
• To stimulate sales directly.
• To establish a firm’s image or modify a firm’s image. Source (Page 213) The Entrepreneur & Small Business Problem Solver by William A. Cohen (2006 3^rd Edition, John Wiley & Sons, Inc.)

13. Selling: The process of offering the business’ products or services to customers to buy. Personal selling is the process of the business owner meeting face-to-face with customers to explain to them why they should buy their product or service.  Here are a few reasons why personal selling is better than other promotional selling techniques:

• The business salespeople are able to tailor their sales techniques and presentations based upon the customer’s behavior, needs, wants, motives, special circumstances, and environment.
• The salesperson can always change their sale pitch based on the reaction they receive from the customer during the initial presentation.
• With face-to-face personal selling, the business owner is able to do market pinpointing which allows them to limit who they offer their products or services to.
• Have a better chance of increasing the number of sells because can do on-the-spot sales since the product or service is available to the customer.
• With personal selling you can conduct research on how to improve your selling skills, handle complaints from customers right away, and get feedback on the needs and wants of your customers.
• There is no time limit on how long you can sell your products or services to customers in person.

14. Trademark, Copyright, and Patent: This is the process of protecting your business from being ripped off by others who may steal your business ideas, products, and services to make money for themselves.

a. Trademark: This includes any name, word, symbol, or device used by a business to identify their goods and differentiate those goods from goods being sold by other businesses. The trademark will indicate the origin of the goods or services.  It is always good to register your trademark with the Patent and Trademark Office in your country.  In the US, the trademark is only recognized by the US government and not in other countries.  Trademark registrations are good for about ten years and you have to renew the trademark during the ninth and tenth year of the trademark.

b. Copyright: This is a form of protection for authors and writers of their original writings whether it is literary, musical, artistic, or other types of intellectual works. A copyright is secured automatically upon creation.  You have to register your copyright with the US Copyright Office and the copyright is valid up to 70 years after the author’s death.

c. Patent: This is the grant that the US Patent and Trademark Office gives to an inventor to a particular invention with gives him or her certain rights concerning the invented item. The patent is good for about 17 years from the date the patent application was approved.

15. E-Commerce: This term stands for email commerce and this is the process of doing business over the internet. With E-Commerce, it has become simpler and easier for businesses to reach their targeted or ideal customers.  Also, this modern day form of doing business has made it easier for small businesses to reach ideal customers from all over the world.

16. Human Resources (Employees Relations): Every small business should have a human resources department, even if, it is just the owner handling such affairs. Every business must have a good employee relations policy in place whether there are only five employees or 150 employees.  You need a program setup to deal with issues regarding your employees or run the risk of losing valuable employees, having bad customer service, and potential lawsuits filed by disgruntle employees.

These are just a few of the basic business terms that an entrepreneur should understand when deciding to start a new business.

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  Donya is also a public speaker and aspiring author.  She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance.  She is also a contributing writer to the Maryland Daily Examiner Newspaper. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle. 

If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: dzimmerman36@gmail.com; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator

 

Image courtesy of Stuart Miles at FreeDigitalPhotos.net                        

 

 

Ten Basic Business Practices That Small Businesses Must Do!

As a small business owner, you have a lot on your plate to deal with because you are steering the ship alone at times.  Small business owners have several responsibilities concerning the running of their business like:

• Ensuring that they have enough products in stock.
• Ensuring that they understand the needs and wants of their customers.
• Ensuring that their employees are being treated fairly and enjoy working for the company.
• Ensuring that the business is properly registered and organized.
• Have a good marketing plan in place to promote and advertise their products and services.
• Ensuring that they have a good record keeping system in place.
• Ensuring that their business finances are in order and have a good financial record keeping system.
• Have the ability to balance business life and personal life.

Being a small business owner takes a lot of work, time, and energy to be successful at it.  Every entrepreneur understands the importance of writing out their goals and creating realistic plans to reach their goals for the business.  Also, many business owners understand the importance of creating effective daily practices they can use to run their business in an efficient manner that will generate a continuous customer base.  Plus these effective daily practices will generate a continuous revenue for the business as well.

Here are ten basic business practices that can be beneficial to any small business:

1. Create a business plan: It is always good to write a plan on how you want your business to be setup, the products or services you want to sell, understand the industry of your business, understand the industry trends in your business, and how to implement the plans for your business. Also, a business plan will give you a financial projection of your business for a three year period or five period.  A business owner should review their business plan on a yearly basis.
2. Do Your Market Research: It is always good to do your research before deciding to go into business. You should do research on the following before starting a business:

• Ideal Customers;
• Industry Trends;
• Business Industry;
• Products or Services will offer; and
• Do a competitor analysis (find out what your competitors are doing).
• It is also good to do market research when the business wants to introduce a new product or service.

3. Know your Financial Situation: An entrepreneur should have a clear understanding of their assets and liabilities before starting their business. You have to know how much startup money you will need to start your business.  Also, you will need to know where you can borrow money from for your small business.  Also, should ensure that you have a clear understanding of your personal finances and business finances at all times when operating your business.  You need to hire a bookkeeper and accountant to assist you with maintaining the business finances.
4. Build Your Dream Team: No one can run a business on their own and will need assistance with the daily operation of the business. It is always good to have the support of family and friends when running your business.  You need to create your “dream team” for your business.  Your “dream team” for your small business should include the following main players:

• Attorney;
• Accountant;
• Bookkeeper;
• Banker;
• Insurance Agent;
• Valuable Employees;
• Mentor;
• Business coach;
• Support group; and
• Social groups.

5. Incorporate Your Small Business: It is always good to incorporate your business, with your local government agency, to have it recognized as a legal entity such as LLC, Corporation, S-Corp, Partnership, LLP, etc. Incorporating your business can save you from personal liability.
6. Have the Proper Insurance: It is good to buy insurance for your small business to ensure that your personal assets cannot be touched just in case you are sued by a dissatisfied customer or disgruntle employee. It is better to pay a small monthly premium for business insurance, then having to close your business due to an unforeseen tragedy or unforeseen mishap.
7. Have a good Marketing Plan: It is always good to have a good marketing plan drawn out detailing how the business will promote the business, promote the products and services offered by the business, and ensure that the business image is being properly represented in the media and the public. It is always good to do a marketing plan when trying to introduce a new product or service to the public.
8. Trademark, Patent, and Copyright everything: The business owner must ensure that they protect all of their business ideas, materials, products, services, and goods from infringement by other businesses. Trademarking, patenting, and copyrighting will protect all of your hard work from being ripped off by someone else.
9. Ensure to hire the right employees: The business owner must ensure that they have a good hiring process, good employee relations policy, and good human resource department. This will ensure that the business hires the right employees and have a system setup to handle all employee matters from hiring to firing of employees.
10. Have a good promotion or advertising plan: The business should have special funding setup for advertisement of products and services sold by the business. Also, a promotion plan will ensure that the business has the necessary techniques in place to promote the business to reach their ideal customers.

These are just a few of the business practices that I use to run my small business and some of these I have learned from other small businesses.  It is good to select business practices that you feel comfortable with and know will work for your business.

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  Donya is also a public speaker and aspiring author.  She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance.  She is also a contributing writer to the Maryland Daily Examiner Newspaper. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle. 

If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: dzimmerman36@gmail.com; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

How to Succeed: You Can Conquer the World!

Isaiah 41:10-11, “v10. Fear not; for I am with you: be not dismayed; for I am your God: I will strengthen thee; yea, I will help you; I will uphold you with the right hand of my righteousness. V11. Behold, all they that were incensed against you shall be ashamed and confounded: they shall be as nothing; and they that strive against you shall perish.”

Do not allow the devil to use discouragement as a tool to keep you from moving forward.  Do not allow past failures or disappointments to keep you from being a success.  In life, you have to “roll with the punches” and keep moving.  When you “stay stuck”, you miss out on what life has to offer you.  Sometimes family and friends will try to discourage you from reaching your full potential.  One thing I state to myself every morning is that “my current circumstances do not define me.”  I am not defined by my current circumstances, I am defined by what I do with my current circumstances to make my life better.  I am defined by God who created me to be awesome.  God does not create any “junk”, He creates “masterpieces”.  God is the “potter” and we are the “clay”.  If you allow the “potter” to do His job, you will come out as the “most beautiful piece of pottery” ever.

No matter what you are going through stay strong and keep your “eye on the prize”.  Remember God is with you every step of the way and “He will never leave you nor forsake you.”  I am here at this point in my life because God has been with me every step of the way guiding me.  God has never left my side and when I wanted to give up on myself, God never allowed to me do so.  During those tough times, God has grabbed me by my collar and said to me, “Get up because it is time to make a change for the better!”

No matter what you are going through, do not be discouraged because God is with you and with God you can conqueror the world!

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  Donya is also a public speaker and aspiring author.  She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance.  She is also a contributing writer to the Maryland Daily Examiner Newspaper. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle. 

If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: dzimmerman36@gmail.com; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

How to Succeed: Bring Your Dreams Into Existence!

In life, there comes a time when you may have a dream or vision of how your life will be, and during those times it is advisable to write that dream or vision down.  Also, sometimes it is good not to share your dreams or visions with everyone.  Do not give individuals too much information on your dream or vision because some individuals are nothing but dream destroyers and haters.  Whenever a dream or vision comes to you, you must discern whether it came from God or the devil.  You have to be very careful discerning your dreams because some are just that “dreams” and some are “reality of what your life will be”.

When you are able to discern that a dream or vision comes from God, it is time to speak that dream into reality and existence.  It is always good to speak the dream or vision into the atmosphere by writing it down in your personal journal.  Once, you have written the dream or vision down, then it is time to take action to make it come true.  Ezekiel 12: 22-23 states, “Let them know the dream is now and it shall come to pass.”  The dream will become a vision and come into existence because of your belief and faith that it will.  Ezekiel 12:25 clearly states that “Your dream shall come to pass because God said it will and you have the faith that it will.”

If you want things to change, you must speak it into existence and work at changing things.  Man may tell you that it is impossible for your dreams to come true, but with God everything is possible.  Sometimes we hold up our own dreams coming true because of lack of faith and fear of having success in one’s life.  Remember that you only need the faith of mustard seed.  When God brings you through something, you must share your testimony and story.  Ezekiel 12:28 states that “Your dreams will come true when God says it will be and not when man says it will be come true.”  Do not allow others to destroy your dreams and hope for your life.  With God, everything is possible.

Your vision will not happen many days or years from now, but your dreams for your life will come true today.  The dream you have for your life now will come into existence today, but only you can make it come true.  With your dreams, do not lose hope or get discouraged because if God states that it will come pass, it shall do so.

Remember you must speak your dreams into the atmosphere and have the faith of a mustard seed. With the faith of a mustard seed, your dreams shall come to pass.

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  Donya is also a public speaker and aspiring author.  She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance.  She is also a contributing writer to the Maryland Daily Examiner Newspaper. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle. 

If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: dzimmerman36@gmail.com; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator

Image courtesy of Stuart Miles at FreeDigitalPhotos.net  

How to Succeed: God will bless you!

Deuteronomy 28:1, “…To observe and to do all His commandments which I command you this day, that the Lord thy God will set you on the high above all nations of the earth.  V2….All these blessings shall come on you, and overtake you if you shall listen to the voice of God.  V8 The Lord shall command the blessing upon thee in thy storehouses, and in all that thou sets thine hand unto; and He shall bless you in the land He has given you.  V13 And the Lord shall make you the head and not the tail; and you shall be above only, and not below.”

As a child of God, you should never underestimate how much power and potential you have within you.  Also, never underestimate what you can achieve in life.  We are created from the “great potter” God and He creates the “most beautiful pottery”.  God is a “master potter” who does not make “junk”, but only “masterpieces”.  Why should you put yourself down?  When you are heir to one of the greatest kingdoms ever (heaven which is the kingdom of God).  We are all heirs to the “great kingdom of God”.

I have learned that, as long as, I follow God’s commandments I will be fine.  I have learned to trust in God with all my heart.  I have learned to live by faith and not by sight.  I know that “faith without works” is died.  With God, I can do the impossible and what I can do is beyond the comprehension of mankind.

God blesses His children who do the following:

1. Know He is their Father.
2. Know that Jesus Christ died for their sins.
3. Follow God’s commands and obey His commandments.
4. Have abundant faith.
5. Have no fear of anything.

With God, He will bless you beyond measure.  Your blessings will come to you unexpectedly.  Do not fear because God has already fixed it and He has blessed you beyond measure.

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  Donya is also a public speaker and aspiring author.  She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance.  She is also a contributing writer to the Maryland Daily Examiner Newspaper. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle. 

If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: dzimmerman36@gmail.com; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Seven Characteristics of a True Entrepreneur!

Here is a wonderful quote that defines the true essence of being an entrepreneur, “It seems to be in the blood, that quality to run with a dream.  Also essential: A love of risk and a high tolerance for ambiguity.” Source (Page 3) Small Business Trends and Entrepreneurship: How Entrepreneurs Are Reshaping the Economy and What You Can Learn From Them by The Editors of Business Week (1995 McGraw-Hill, Inc.)

Entrepreneurs have been described in the following ways:

• High risk takers;
• Innovators and inventors;
• Individuals who want to be their own boss; and
• Individuals who love to think and live outside of the box.

Entrepreneurs have many characteristics that enable them to start their own business and be successful at it.

Here are seven basic characteristics of a “true entrepreneur”:

• Characteristic One: A true entrepreneur has no choice but to start their own business because they were unable to find employment or had been fired from a job.

“You may have had difficulty in getting a job that you really didn’t want but had to accept to support your family or yourself.  And in getting this dissatisfying position, you may have been rejected many times.  You were told you were too young or too old, lacked an education or had too much education, had the wrong kind of education, didn’t have the experience or had too much experience.  All the time, you knew that you could not only do the job but also do it better than most others.  Or maybe you have a passion for a certain kind of work, but the requirements of your current position are such that you just don’t have the opportunity to concentrate on the work that you really love.”   Source (Page 1) The Entrepreneur & Small Business Problem Solver by William A. Cohen (2006 3^rd Edition, John Wiley & Sons, Inc.)

• Characteristic Two: A true entrepreneur will “keep their eyes open” when starting and running their own business. They understand the risks and setbacks that come along with running your own business.

Many entrepreneurs will prepare themselves for the setbacks that come with starting your own business.  The entrepreneur will ensure that they have the start-up funds for the new business.  The entrepreneur will also ensure to have enough income to cover at least 6 months of living expenses.  They will also ensure that their small business has the right “dream team” including an attorney, insurance agent, accountant, bookkeeper, banker, mentor, and business coach.  A true entrepreneur understands the challenges they will face running their own business and understand that they will be alone in this venture with little support.

• Characteristic Three: A true entrepreneur does not start their own business for the money, but to give something back to society and to add value to others lives.

Many entrepreneurs will see opportunities for a new business where others do not see it.  They will notice issues and problems that need fixing and will try to find a solution to that issue or problem.  A true entrepreneur will find a problem, figure out a way to fix that problem, and how they can offer the solution to the general public.  Entrepreneurs will do the following, “combine innovation, entrepreneurship, and social purpose and seek to be financially sustainable by generating revenue from trading.”  Source (Page 5) Social Entrepreneurship: A Modern Approach to Social Value Creation by Arthur C. Brooks (2009, Pearson Prentice Hall).

• Characteristic Four: A true entrepreneur is very passionate about their business and very optimistic at the same time.

Many entrepreneurs find the passion and the enjoyment in running their own business.  They will love what they do and have no problem with working hard to ensure that their small business is a success.  A true entrepreneur defines success on their own terms and not based on how others define true success.  “It is often said that entrepreneurs tend to be blind optimists, but that’s too simple a formulation.  More likely, they believe in what they’re doing with a passion that overcomes doubt- a passion that allows them to” overcome their fears and apprehension of starting their own business.  Source (Page 8) Small Business Trends and Entrepreneurship: How Entrepreneurs Are Reshaping the Economy and What You Can Learn From Them by The Editors of Business Week (1995 McGraw-Hill, Inc.)

• Characteristic Five: A true entrepreneur has no problem with starting from stretch or trying out new ideas to generate revenue for their business.

Many entrepreneurs understand the importance of staying current with their products and services.  Some entrepreneurs understand that sometimes you will have to stop selling a product because of low sales or the product may be obsolete.  A true entrepreneur understands the importance of always strategizing and thinking of new ways to sell their products and services to reach their ideal customers.  Entrepreneurs understand the importance of keeping their customers in mind when coming up with new products or new services to sell.  Many entrepreneurs are good at strategizing on new market techniques to sell their products or services to their ideal customers.  Also, the entrepreneur understands the importance of implementing those new marketing techniques into their everyday business activities.

• Characteristic Six: A true entrepreneur has the ability to overhaul a current business industry or create a new business industry.

“Entrepreneurs can overhaul an existing industry or build a new one.  Back in the early 1980s, a few upstarts such as Apple Computer Inc. and Osborne Computer Co. believed they could put a PC in every home and office in America.  At the time, they were ridiculed by the mainframe makers who dominated the industry.” Source (Page 14) Small Business Trends and Entrepreneurship: How Entrepreneurs Are Reshaping the Economy and What You Can Learn From Them by The Editors of Business Week (1995 McGraw-Hill, Inc.)  Now, Apple is number one in the making of computers, with their Mac Computers, and they are now popular in the mobile phone industry with their iPhone.

• Characteristic Seven: A true entrepreneur has self-confidence, very motivated, a strong sense of reality, and action oriented.

You have to have much confidence within yourself to be able to start your own business and cannot be afraid of failure.  Many entrepreneurs will state that they started their own business because they saw a need that was not being fulfilled and took action to ensure that need was being met.  Many entrepreneurs are motivated by drive and ambition to be the best that they can be no matter their circumstances.  A true entrepreneur understands that their business may not be a success in the beginning or may even be a failure, but they will try to go for it anyhow.

The most important characteristic of a “true entrepreneur” is that they are not afraid to start their own business and give something of value to society.

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  Donya is also a public speaker and aspiring author.  She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance.  She is also a contributing writer to the Maryland Daily Examiner Newspaper. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle. 

If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: dzimmerman36@gmail.com; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator

Image courtesy of bplanet at FreeDigitalPhotos.net

Seven Myths of Being an Entrepreneur

There are many misconceptions of what it takes to be a true entrepreneur.  Many individuals believe that anyone who starts their own business comes from another planet or has special gifts and talents that make them stand out from the crowd.  Many people believe that entrepreneurs are a special group of individuals who have the necessary skills and talents needed to be an excellent business owner.  But, in reality, many entrepreneurs are just like anybody else, but they have the desire to change the world with the gifts and talents they have.

There are many myths and misconceptions out there regarding what it takes to become an entrepreneur.  Here are seven myths held by the general public regarding entrepreneurs:

• Myth #1: Entrepreneurs are from another planet, flamboyant, impulsive, and daredevils.

Most entrepreneurs are very sensible and level headed.  Many entrepreneurs know the importance of thinking out their business idea before actually going into business.  A true entrepreneur knows the importance of mapping out their plan of starting a business before actually doing it.  “You don’t have to be a circus barker,” says Grousbeck.  “You don’t have to be impulsive or flamboyant.” You just have to have an idea—and a need to see your idea come out your way.  Independence matters most to an entrepreneur.  The confidence that flows from ownership of the idea creates the drive to endure the often dire consequences of that independence.”  Source (Page 6) Small Business Trends and Entrepreneurship: How Entrepreneurs Are Reshaping the Economy and What You Can Learn From Them by The Editors of Business Week (1995 McGraw-Hill, Inc.)

• Myth #2: Many individuals believe that entrepreneurs are “blind optimists”, self-centered, and selfish.

Many people in society believe that entrepreneurs are not realistic when it comes to the risks of starting a business.  Family members believe that entrepreneurs are selfish when it comes to their ambitions of starting a business.  Many family members believe that entrepreneurs put their personal needs and desires before the needs of the family.  Scott D. Cook, the founder of Inuit Inc., stated the following when he started his business, “My wife thought that I had gotten us into a big hole.  I still had faith I had the right product, but the thought of losing it all was driving her [my wife] to distraction.  Our marriage came within inches of blowing up.”  Source (Page 7) Small Business Trends and Entrepreneurship: How Entrepreneurs Are Reshaping the Economy and What You Can Learn From Them by The Editors of Business Week (1995 McGraw-Hill, Inc.)  The best entrepreneurs always ensure that their family’s financial needs and personal needs will be met when starting a new business.  Entrepreneurs will always ensure that they have safety nets and safety plans in place just in case their business does not pan out.  Entrepreneurs understand the importance of having at least six months of living expenses saved up for the beginning stages of their new business.  Many individuals starting their own business will even continue to work a full time or part time job until the business is financially stable and financially sustainable.

• Myth #3: Many individuals believe that small business owners cannot compete with the big boys “big business”.

Entrepreneurs like Bill Gates and Steve Jobs have proven time and time again that small businesses can compete with big businesses.  Many entrepreneurs have started small businesses that have put larger companies out of business.  One reason for this is that big companies are afraid to change and do not adapt to change well.  The advancements in business like fax machines, mobile phones, and the internet have made it very easy for individuals to start and grow their own business.  Many individuals are starting to see the importance of supporting their local small businesses and have become very dissatisfied with how big business see them as customers.

• Myth #4: Entrepreneurs need much money to promote and market their business.

Many individuals are afraid to start their own business because of lack of money.  Many people feel that you need a lot of money to market your business.  But, many successful entrepreneurs understand that you can market your small business on a “shoestring budget”.  Due to the advancements in technology, it does not take a lot of money to promote your business and it does not take a lot to market your business.  Due to advancements in technology, like social media sites, it has become very easy and simple for entrepreneurs to promote and grow their business.

• Myth #5: Entrepreneurs only start their own business to make lots of money.

Statistics show that the average entrepreneur makes from $150,000 to $500,000 per year after deductions are taken out.  Many individuals become entrepreneurs because of the declining job market, wanting to be their own boss, and the desire to fill a need that is not being met.  Rarely, will you find an entrepreneur, who only went into business to make a lot of money or for pure greed.  In the first two to five years of a new business, the owner will lose money or break-even.

• Myth #6: Entrepreneurs are born and not made.

The most successful entrepreneurs out there like Bill Gates and Thomas Edison did not finish college.  These type of entrepreneurs just saw a need that was not being met and found a way to meet that need.  The most successful entrepreneurs were just average individuals who decided to start their own business and not worry about what others thought.  “Similarly, there is abundant evidence that people can gain a sense of control over their destiny, become more comfortable with risk and ambiguity than they otherwise might be, and have their level of community awareness raised.  In short, although some people certainly naturally possess more socially entrepreneurial characteristics than others, there is evidence that these characteristics can be fostered as well.”

Source (Page 17) Social Entrepreneurship: A Modern Approach to Social Value Creation by Arthur C. Brooks (2009, Pearson Prentice Hall).

• Myth #7: Entrepreneurs are not afraid to take risks.

There is no evidence to show that entrepreneurs who have been risk takers, without preparation, have been successful with starting their own business.  The best entrepreneurs did take some risks when it came to starting their own business, but they understood those risks before starting their business.  Many successful entrepreneurs ensured that they had a plan written out before starting their business.  True entrepreneurs understand the importance of early planning and being prepared for the possible risks that come with starting a new business.

There are many other myths or misconceptions regarding entrepreneurs, but one true fact about entrepreneurs is that they change the world with their businesses.  Entrepreneurs, who came from nothing, and became successful, let other individuals know that they can make it in life no matter what.  Entrepreneurship gives one a sense of purpose and fulfillment that you are able to provide something of value to the lives of others.

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  Donya is also a public speaker and aspiring author.  She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance.  She is also a contributing writer to the Maryland Daily Examiner Newspaper. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle. 

If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: dzimmerman36@gmail.com; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator

Image courtesy of t0zz at FreeDigitalPhotos.net  

How Does the World Define Entrepreneurship?

The concept of entrepreneurship has been around since the creation of great civilizations.  The term “entrepreneurship” comes from the French term “entreprendre” which means to “to undertake” something.  This French term “entreprendre” was defined by economists 200 years ago to describe the process of the industrial revolution.  “These early economists noted that production processes required labor (mental and physical human effort), physical capital (plant and equipment), human capital (knowledge and expertise), and land (natural resources).” Source: Page 2, Social Entrepreneurship: A Modern Approach to Social Value Creation by Arthur C. Brooks (Pearson Prentice Hall 2006).  But, these early economists failed to realize that more was needed for the industrial revolution to take off like managerial skills and the business owner ability to take risks to increase productivity and grow the business.

Many earlier scholars stated that there was more to entrepreneurship than just manpower, creation of products, and productivity.  The concept of entrepreneurship should also include management talent, risk opportunities, recognition of different opportunities, being innovative, and wanting great results.  The great “godfather” of entrepreneurship, the economist John Schumpeter, defined the ultimate phenomenon of entrepreneurship as follows in 1934:

“First of all there is the dream and the will to [find] a private kingdom, usually, though not necessarily, also a dynasty… Then there is the will to conquer: the impulse to fight, to prove oneself superior to others, to succeed for the sake, not of the fruits of success, but of success itself.  From this aspect, economic action becomes akin to sport…The financial result is a secondary consideration, or, at all events, mainly valued as an index of success and as a symptom of victory, the displaying of which very often is more important as a motive of large expenditure than the wish for the consumers’ goods themselves….Finally, there is the joy of creating, of getting things done, or simply of exercising one’s energy and ingenuity….Our type seeks out difficulties, changes in order to change, delights in venture.” Source: Page 3, Social Entrepreneurship: A Modern Approach to Social Value Creation by Arthur C. Brooks (Pearson Prentice Hall 2006).

In summary entrepreneurship has been defined in many ways like financial freedom, personal value, and economic stability of small communities.  A good definition for entrepreneurship can be “independence from big corporations”.  Entrepreneurship can also be defined as the freedom to create one’s own economic opportunities.  Also, can be defined as having the ability to help grow and improve the economy of local communities.

Here are some of the terminology that defines “entrepreneurship” throughout the world:

• Acquisition and merger: The idea of taking over or buying another business that is not your own.
• Advertising: The activity of letting the public know about your business, and the products and services one’s business has to offer to current customers and future customers.
• Corporation: A type of business that is a separate legal entity from the owner and involves Board of Directors including stocks and bonds.
• Entrepreneur: A person who starts their own business or assist others in a business venture. Someone who is not afraid to take major risks and wants to add value to the world.
• Home Based Business: This type of business occurs when individuals run their business from home no matter the size of the business.
• Joint Venture: Where two companies agree to go into business together, but remain separate legal entities.
• Marketing: The concept of conducting research on how to grow and promote a business. It is the act of promoting a business to the general public.
• Networking: This concept is meeting other business owners and forming business relationships with those individuals.
• Outsourcing: This when a business owner hires another business to complete certain tasks for them like accounting services and secretarial services.
• Business Plan: The roadmap that a business owner will create to discuss how they will run and operate the business.

There are many other terms used to define the “entrepreneurship” process, but these are some of the major ones used to define it.  Entrepreneurship gives an individual the opportunity to fulfill their dreams of being their own boss and having financial freedom.  The process of entrepreneurship has helped to lift many communities around the world out of poverty.

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  Donya is also a public speaker and aspiring author.  She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance.  She is also a contributing writer to the Maryland Daily Examiner Newspaper. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle. 

If you are thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: dzimmerman36@gmail.com; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator

How Do You Define Entrepreneurship?

Many individuals define entrepreneurship as going after opportunities without worry, fear, or limitations.  Entrepreneurship can be defined as the desire of one to make a difference in their lives and lives others by giving something of value to oneself and others.  Entrepreneurship is a way for individuals to grow and improve their local communities.  Many people have come to realize that small business and entrepreneurship help to shape and grow local communities.  Also, entrepreneurship helps to shape and grow the local government based on the development of laws and policies.

There are five major parts of the entrepreneurship process in the commercial world of today:

1. Recognition of opportunity. In entrepreneurship, there is the great recognition that many opportunities exist in the world to create value.  Some examples of such valuable opportunities are as follows: a. needs that have to be met; b. new public policy being created; and c. consumer tastes changing.
2. Individuals developing concepts. There are always ways for individuals to create opportunities of great value. For example, a shift in customer tastes can open the door for a new product to be developed that will fulfill that shift in tastes.
3. Determination and acquisition of needed resources. With starting a business, one needs to ensure that they have the needed resources to start that business. Here are a few of the resources needed for one to acquire, in order to have a successful business: a. some money; b. the right information and data; and c. human resources.
4. The proper launch and growth of the business venture. In entrepreneurship, once an individual recognizes a business opportunity and the necessary resources have been gathered.   It is time to launch your new business venture.  But, the entrepreneur now has to maximize their resources in order to grow and make the business profitable.  To maintain the profitability of the business, an entrepreneur has to do the following:
   1. Invest in the business continually;
   2. Continue to strategize, on a regular basis, on how to keep the business growing;
   3. Ensure to have good human resource policies to acquire and maintain good employees; and
   4. Develop methods and techniques to deal with inevitable conflict.
5. Have to continue to harvest and grow the business venture. The entrepreneur must ensure that the business can outlast them once they have exited the business.  Exiting of the business can occur in the following ways:
   1. Owner can take the business public;
   2. The business can be sold to another company;
   3. Assets being liquidated; and
   4. Having one’s heirs take over the business.

Everyone has their own definition and concept of what is true entrepreneurship.  But, overall, entrepreneurship is the capability of individuals to start and grow their own business.  Entrepreneurship has helped many communities and villages around the world become economically sufficient.  Entrepreneurship has helped individuals to become economically self-sufficient, create personal stability, and true personal value.

Donya Zimmerman is a business consultant, mediator, and legal professional with over ten years of experience.  Donya is also a public speaker and aspiring author.  She has a few books in the works that will be published and released in the latter part of 2015. The books will focus on entrepreneurship, small business, and daily devotionals.  She is owner of Family & Community Mediation and Business Consulting (FACMBC) based in Baltimore, Maryland and has been in business since 2013. Services provided by FACMBC:  Mediation and Conflict Resolution Services; Business Registration Assistance (Limited Liability Company, Corporation, S-Corp, Limited Liability Partnership, etc.); Business Plan Drafting Assistance; Business Certification Assistance (MBE, WOSB, 8A, 501(c) (3), Hub Zone, etc.); and Business Organization Assistance.  She is also a contributing writer to the Maryland Daily Examiner Newspaper. Donya Zimmerman has made article contributions to the Simply Inspirational Women in Business Journal for 2014 published by Dr. Cheryl Cottle. 

If thinking about starting your own small business or non-profit organization do not hesitate to contact me because I can show you how to do so. Contact information: dzimmerman36@gmail.com; www.facebook.com/FACMBC; www.twitter.com/FACMBC; https://dzimmerman36.wordpress.com; http://www.linkedin.com/in/dzbusconsultantandmediator

Valley of Vision

Nice story.