golden nuggets of business wisdom

Michael Gerber, "E-Myth" ("E" is "Entreprenuerial"), a must-read for anyone owning - or thinking of starting - a small business.

"People who see their business as a job aren't entrepreneurs but technicians suffering from entrepreneurial seizures...they spend their time working in the business rather doing what entrepreneurs do, which is to work on the business." (Submitted by Craig Bradshaw)

Harvey Mackay's Short Course on Negotiation, Presented by Wes Fanning on February 18, 2009

As small business folks, we are out there trying to sell our product or service. However, many times when we have the opportunity to sit on the "buyer" side of the table, we get hit with the status of the attention being given us.

  • Smile and say no until it bleeds. Time is the seller's enemy, not yours. The longer you take, the longer you have the use of your own money and control over the terms of the deal – and the more likely the terms improve.
  • Send in the clones. If you're looking at a big-ticket item, hire a substitute to find out what the seller's real price is.
  • The single most powerful tool for winning a negotiation is the ability to walk away from the table without a deal. "Deals seldom get worse when you walk away from the table."
  • "Calling Mr. Otis" Beware of the Mr. Otis tactic - stalling when a prospect has too much time and emotion invested in a deal.
  • The most important term in any contract isn't in the contract. It's dealing with people who are honest. But the second most important term is including the right to inspect all their books and records, including tax records, correspondence, etc pertaining to your agreement. Once that clause is in there, people with a tendency to get cute usually don't.
  • Agreements prevent disagreements. Every now and then you will have to deal with someone who doesn't want a contract, whether an employee or client. If you have to make a deal like this, send out a letter to this "handshake" kind of guy the same day that you strike the deal. Lay out all the "verbal" terms you agreed to in that letter. That way both of you have a written understanding of your agreement.
  • Make decisions with your heart, and what you'll end up with is heart disease. Remember the last time you experienced a "fundraising mechanism." Say no to this mechanism.
  • Never buy anything in a room with a chandelier. If the surroundings are too grand, if there are too many unfamiliar faces, if it is too far away from home, if the people are too nice, if the title that comes with your participation is too elegant… grab your checkbook and get out of there.
Christian D. Larson, Presented by Denise Ledford on January 28, 2009

Promise yourself to be so strong that nothing can disturb your peace of mind.

To talk health, happiness, and prosperity to every person you meet.

To make all your friends feel that there is something in them.

To look at the sunny side of everything and make your optimism come true.

To think only of the best, to work only for the best and expect only the best.

To be enthusiastic about the success of others as you are about your own.

To forget the mistakes of the past and press on to greater achievements of the future.

To wear a cheerful countenance at all times and give every living creature you meet a smile.

To give so much time to the improvement of yourself that you have no time to criticize others.

To be too large for worry, too noble for anger, to strong for fear, and too happy to permit the presence of trouble.

Clark Everetts, from php|architect's PHP Job Hunter's Handbook, Presented by Clark Everetts on February 4, 2009

These are a few helpful tips you should keep in mind when running your business:

  • Market your business. Schedule and spend time each week to promote yourself and line up work. Make it easy for people to find you and learn something about your previous work and the skills you have to offer.
  • Learn from your mistakes. The only way to avoid mistakes is to stand still and do nothing. So prepare for the fact that you're going to make mistakes. When you do, don't hide it, at least from yourself. Your client may need to know about it, depending on the scale of the mistake, whether or not you have time to correct it without harm, and whether or not it even directly relates to a project, instead of some other aspect of your business. Whatever you do, be honest, learn from the mistake by examining what happened and identifying how you can prevent it in the future. Also, save time and headaches by learning from the mistakes of others.
  • Stay in contact during the project. This seems obvious, but many budding freelancers just want to be left alone to "do the work" and get the finished product to the client. To keep a project on track, and to make sure the client knows you're in tune with them, you must maintain regular contact with them. Check with them to make sure you understand their requirements, that the design you've come up with meets their needs, or that you ask them for missing information. You are tending to their needs; make them feel like it, especially if you're working remotely.
  • Stay in contact after the project. If you do good work, much of your business will come from repeat clients. Once you've made someone happy, you're a known quantity, and they'll be more likely to come back to you in the future when they have another need. Your job is to make sure they know you're still there for them. They won't have something every time you contact them, but, hey, this is the Web we're talking about. They'll eventually need something, and by staying in contact, you'll be on their minds when they do. Even if they don't have a project, they'll be more likely to recommend you to someone they know who does need your services. Referrals comprise the best business you'll ever get, so stay in touch with those whom you've worked with before.
  • Learn to identify which projects to avoid. Sometimes you can spot potentially difficult clients early on based on the way they speak to you or address you in emails, the way they react to your rate quote, and so forth. If you and your potential client won't like working together, then it's best for both of you if you don't take on the project. More often, the potential client is fine, but it's the project you need to gracefully turn down. A significant part of it may require skills you simply do not have and are unable to obtain or subcontract out in a timely manner or at reasonable cost. The project may also be too similar to all the others you've done; that is, not stretch you technically or keep you engaged intellectually. Part of professionalism is doing the stuff you don't like doing when it has to be done, but boredom or complacency will eventually shut you down, and in that case you're not really giving your client your best, anyway.
  • Don't overextend yourself; focus on completing your current projects. This is a related to knowing which projects to avoid. It takes time to do the work we do, and in the software business, there will be inevitable delays. Do not take on too many projects at once, out of fear of not having work lined up. You must be able to focus on getting your current work done, giving your clients what they need from you when they need it.
  • Never stop learning. In this book you've read about ways to stay on top of new tools, techniques, and technologies, as well as develop skills like communicating clearly in writing and speaking. As a contractor or freelancer, it is vital that you keep learning alive, because your expertise is your bread and butter. Schedule regular learning periods each week. So much is changing so fast that you'll never learn it all at once, but you can stay on top of those things most important to your career by regularly spending a bit of time building on the things you've already learned. Challenge yourself to never stop learning, and you will not only reap the benefit of financial security, you'll enjoy your work more and be more confident about taking on new projects.
  • Keep work to business hours. Many a freelancer's spouse has offered this advice to the independent developer. The work must be done, but be careful about when you answer your phone and email. If you give the impression that you're available 24 hours a day, seven days a week, you will become needed 24 hours a day, seven days a week. Being accessible to the client is essential, but keep it to reasonable business hours. In order to avoid burnout, you must have time to refresh your mind, renew your body, and restore your soul.
  • Understand your financial statements: balance sheet, profit and loss (also called income and expense) statement, and cash flow statement. You can get by for some time without understanding where you truly are financially, but you really will not excel until you buckle down and treat your freelancing or contracting efforts as the business that it is. Whether you do the books yourself or hire a professional, you must know where you are on a monthly basis. At the very least, by maintaining the records necessary to know your financial status, you will have much to thank yourself for at tax time.