Summary: Obama may have won the 2008 election, but what does that mean for small business? Check out some of the buzz about upcoming entrepreneurial expectations, fears, and hopes, and then weigh in and discuss how you think your business will be affected by an Obama presidency.

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I think enough time has gone by now that plenty of folks have weighed in on President-Elect Obama and the potential impact a Democratically-led federal government may have on small businesses nationwide. Today I’d simply like to direct you to some of those thoughts, giving you some things to think about, whether you’re hopeful about or dreading the next four years:

• Obama’s Impact on Small Business – BusinessWeek
• What’s the Economic Climate for Small Business? – The Wall Street Journal
• Taxes, NAFTA Among Concerns of Entrepreneurs – El Paso Times
• Business Reacts to Obama Win – Birmingham Business Journal
• A Small Business Agenda for President Obama – AllBusiness.com
• Reaction: Pittsburgh’s Business Community Weighs in on Obama’s Victory – Pittsburgh Business Times
• Minority Business Leaders Euphoric Over Obama Win – Portland Business Journal

How do you think an Obama presidency and democratic Congress will affect your small business or freelance career?

Summary: According to a recent NY Times article, entrepreneurs are finding comfort back in the corporate world, deserting their businesses in the economic downturn. Are you one of them? I don’t know about you, but I’m in it for the long haul.

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I was reading an article from about a week and a half ago on the NY Time site: Economy to Entrepreneurs – Turn Back.The article shares a story about one entrepreneur whose business started to fade when clients started opting to do things for themselves – she made the jump back to the 9-5 lifestyle, and apparently others are too – for the security of it.

Maybe it’s just my “never say die” attitude, but I really don’t think these kinds of folks were worthy of a story to begin with – in my eyes, they’re nothing but entrepreneurial slackers.

Why?

Any good entrepreneur knows that when the needs of your market change, so must your business (and your marketing strategy).

In the primary example in the article, we’re talking about an event management / planning company which seemed to have highly specialized interests. Clients started feeling like it was more cost-effective to deal with things internally.

Oddly, that’s usually not the case – contractors are far more often the cost-effective option over having salaried employees devote time to specialized projects. That’s a selling point I don’t think enough entrepreneurs either understand or know how to convey well to prospective clients.

Rather than work through the tough times and learn how to adapt (by altering her specialty, reaching out to new client bases, or developing a stronger USP), this entrepreneur (and others) called it quits.

So tell me again… why was this a story worthy of being picked up by the NY Times? As far as I’m concerned, it’s not – just people who couldn’t cut it in their game, and the Times is letting the economy serve as scapegoat in an example that’s entirely illogical. Bravo.

What do you think? Am I being too hard on them? Would you quit if things got tough, or do you have the entrepreneurial balls to keep on going, adapting to our everchanging markets rather than expecting your tried and true methods to work indefinitely? I’m sure you can guess which camp I’m in.

Summary: Do you take your online business seriously, or are you setting yourself up for failure? Find out why you need to treat your online business as a real business venture and not a casual hobby (such as blogging for profit) if you want to reap the most rewards and keep it all legal.

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I know there are plenty of “serious” online ventures. At the same time I think there are infinitely more webpreneurs, webmasters, bloggers, etc. who are essentially running online businesses but not taking them seriously as such (and of course I’m only talking about the ones blatantly trying to make money here – a blogger on a personal journal-style blog doesn’t count). Why is this?

I think the biggest problem is that it’s extremely easy to set up an online business, and there’s little to no startup capital required for many of them. Therefore it really is possible for “anyone” to start an online business these days.

However, being easy doesn’t make it any less of a business, and there are a few benefits to taking your online business seriously from the start:

• Avoid legal and tax problems down the road
• The more serious to treat your project, the more likely you’ll stick with it in the long run (and more likely you’ll earn a significant income)
• Others can tell when you don’t take your work seriously, and it can hurt your credibility

Here are a few basic things you should consider doing to take your online business more seriously:

• Register it as a formal business if appropriate
• Keep thorough financial and administrative records
• Invest time and / or money into adequate marketing tactics
• Take the time to do market research on your audience and their behaviors before getting into your online business to begin with

What else do you think people can do to take their businesses more seriously, and what other benefits do you see in doing so?

Summary: Find out what it means to be an infopreneur, and what information products can do to help you grow your business.

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As an entrepreneur, you may earn your living in any number of ways – most likely selling a service, products, or some combination of the two. Something many entrepreneurs don’t ever consider is becoming an “infopreneur.” Yet becoming an infopreneur can lead to more exposure for the primary business and even more direct income (sometimes even in a relatively passive revenue stream.

What is an Infopreneur?

An infopreneur is someone who sells informational products. This may be their sole business, or something done “on the side” in addition to running a more traditional small business.

What are Informational Products?

So what kinds of things can you do to go from entrepreneur to infopreneur? Here are few common options:

• Write a book.
• Write an e-book.
• Create an informational website (often monetized by ad revenues). This can be a static site set up once, or a regularly-updated blog.
• Offer seminars or webinars (more technically a service, but they still fall under the tools of infopreneurs).
• Offer classes or e-courses.

Why Become an Infopreneur?

1. Any entrepreneur can do it. It’s all about sharing your expertise. Even if you’re uncomfortable with the idea of writing a book or creating another informational product, you can always outsource things to a ghostwriter, programmer, etc. working closely with them.
2. Info products and services lead to exposure. They don’t only get your name out there, but they’re all excellent vehicles for more directly promoting your business. They can lead to more media interviews, and even more customers or clients for your business.
3. Most, if not all, informational products can be monetized directly, giving you an extra income stream. This is optional of course – you may find there’s more marketing value in offering information for free, to build that exposure and generate more business (more true for those selling high-ticket products and services).

Summary: As an entrepreneur, if someone approached you today and offered you full-time employment with their company with higher pay than you earn through your small business, would you close your business and take the job?

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I stumbled across a Wall Street Journal article today that I want to share with you: Owners Wouldn’t Quit for More Money

Ironically, I was just having a conversation with a friend about this very subject a few days back.

According to the article, 55% of surveyed entrepreneurs wouldn’t give up their business if they were offered full-time employment elsewhere paying more money. Only 30% said they definitely would quit their business for the stable and increased income.

What about you? How much would someone have to offer you for you to willingly close your small, online, or home-based business?

I personally can’t imagine anyone being able to offer me enough to give up the freedom. There just isn’t a price tag on this head. What about yours? Is it worth it to pursue your own business even if you’re offered more money elsewhere, or does it all come down to the bottom line?

I came across an article on small businesses and the fear of a recession at the US News & World Report website today. In short, apparently small business owners in the US are concerned about a potential economic downturn. Are you worried? I’m not. (more…)

Obviously the simple answer is “no,” because others have gone on to run highly successful businesses without a formal education. However, the fact still remains that those people tend to be the exception; not the rule.

Some industries not only highly benefit from formal education, but it can be required for licensing (medical and legal fields for example). Others don’t require a formal education to be an expert in the industry (such as craft-related businesses).

What I hear a lot of people say (usually kids who start businesses at home online, and who haven’t even finished high school yet) is that if so-and-so could do it without college (insert any ridiculously successful dropout entrepreneur here), so can anyone else. What they neglect completely is that the cases they cite are actually extremely rare.

Banking on being the exception to the rule is very likely a large contributing factor to the overwhelming number of small businesses that fail within their first one to three years.

I won’t argue that absolutely every entrepreneur should receive a formal education and work towards a degree. However, I’d say that doing so couldn’t possibly hurt them in any way (whether it’s an education in their niche or industry, or even a general business education to teach them about the day to day running of a successful business).

What are your thoughts on formal education for entrepreneurs?

Life for many entrepreneurs can be hectic, whether they’re running a brick and mortar small business, home business, online business, or even a freelance career. Schedules can get out of hand, and the line between work and home life can get blurred (especially for entrepreneurs that work from home).

So what can you do to maintain a work / life balance as an entrepreneur? How do you stop your work life from interrupting your family life and social life? How do you juggle it all? It’s not uncommon for entrepreneurs to get so caught up in work that they forget about other areas of their life, and even neglect the people in it. These tips will help you keep in touch with yourself and your family and friends as an entrepreneur, while also helping you maintain clarity and focus on your business.

1. Understand from the beginning that being a business owner is going to mean long hours. Discuss that with people close to you, and find ways to plan for scheduling conflicts.
2. Don’t blow off all of your old personal habits and responsibilities. Schedule them alongside your important work meetings if it helps to remind you that they need to remain a priority in your life.
3. Take breaks. Shut your eyes for twenty minutes. Go out to lunch or dinner with a loved one. Go for a walk to get some exercise and fresh air. It doesn’t matter if you do these things before starting a project, after, or in the middle… just give yourself a little taste of non-working life throughout the day, so you don’t start to forget what you’re missing.
4. Get your priorities straight. Your clients may be important, but your family should be moreso. Don’t put yourself in a position where you’re pushing them away. Always keep an open and honest line of communication, so if your spouse, children or friends do start to feel neglected, you can work on resolving the issue together instead of letting it lead to resentment in them while you remain ignorant to the problems in front of you.
5. Have a set end time to your work day and stick to it as much as possible. It’s not always easy to stop working as an entrepreneur, because there’s always work to be done. There’s no boss sending you home, and no watching the clock for 5pm to roll around. Give that back to yourself, so you look forward to “leaving” for the day to get back to your “other” life.
6. Make your office hours clear, and ignore emails and phone calls during off-hours. If you make the mistake early on of always being available for what seems like 24/7, clients and customers will become accustomed to it, and they’ll feel neglected if you’re suddenly not around after 5pm on a Tuesday. Only respond during after hours if it’s an emergency, and make sure clients know it’s not your norm.
7. Take vacations. It can be scary to take time away from your business, and in the earliest phases, it may not be possible. But learn to set aside money to account for some time off. Then clear your schedule well in advance by finishing up existing projects and letting clients know that you’ll be unavailable for vacation (let them know as early as you can; they’ll generally be very understanding). You don’t even have to go anywhere. Just take some time to feel refreshed, and you’ll have less of a chance of becoming burned out and you’ll possibly even feel more enthusiastic about your business when you return.

As much as entrepreneurs have to protect their work day from things like home office distractions, it’s also vital to know when to stop with the work to focus on life again. A burnt out business owner won’t be as productive as someone who’s well-rested and living a well-balanced life.

I love business-related websites and blogs, whether I want to brush up on business news, learn something new by reading through business articles, or read about success stories of other entrepreneurs. Here are a few of my favorite business websites, big and small (in no particular order). What are your favorite small business websites?
Entrepreneur.com

Inc.com

IdeaCafe.com

AboutPublicRelations.net

Clickz.com

SBA.gov

AllBusiness.com

BusinessWeek.com

SelfMadeMinds.com

SoloGigNews.com

BizToolKit.org

While some small businesses and online businesses can be launched with little or no startup capital, most new businesses need to obtain some form of business financing to make them a reality. Here are a few ways you may be able to find the money to make your small business idea a reality:

Personal Savings – If you have a large enough personal savings to finance your small business, at least consider the possibility. You can consider it an investment, or at least look at the interest you would save as opposed to other forms of small business financing. Then again, financing a small business from your personal savings means that you’re shouldering all of the financial risk.

Loans from Family and Friends – Many small businesses are launched through funding invested by family members and friends of the entrepreneur. Before deciding to go this route, make sure you can handle the personal burden of knowing that you owe money to your loved ones.

Bank Loans – These can be either business loans or personal loans that you plan to use for your startup costs. Before applying for a bank loan, make sure you’ve crafted a viable business plan with realistic financial projections to better your chances for approval.

Outside Investors – If you have a solid business plan, you may also be able to raise startup capital from angel investors or venture capital firms.

Government Loans and Grants – It never hurts to see if your government offers grants to entrepreneurs that you may be eligible.