Debbie May

Keeping Batch Records

noreply@blogger.com (Debbie May) — Mon, 29 Jul 2013 15:00:00 +0000

You have a terrific new recipe to make and are all set to go. Looks like the product is just what you want and the scent you’ve picked smells divine. Paperwork and record-keeping is probably the last thing on your mind at the moment … but NOW is the time to get out your notebook or file!

The recipe that you are following, whether it is new or a tried-and-true favorite, is generally referred to as a Master Formula or Master Recipe. In a perfect world, it should contain not only the amounts or percentages of the ingredients, but also the exact step-by-step directions on how to make the product. It is what should be done.

The records you keep when actually making a batch of product from a Master Formula are called your Batch Record. It should contain the details of the batch, what ingredients were used, the amount of each, and how you made the product. It is a record of what was actually done.

So, what sort of information should be included in your Batch Record?

1. Batch Number

Every batch should be assigned a unique number. You could use the date or a sequential numbering system – whatever works for you, just so long as it is a unique identifier for that batch. Putting the batch number on the label of the finished product is a good idea so you can look at a finished, labeled bottle or jar and know which batch it came from. Keep in mind that while putting the batch number on the finished product is required as part of good manufacturing practices, it is not required to comply with product labeling regulations.

2. General Information

Somewhere (usually at the top) of the Batch Record, note down the general information about the batch. That should include things like the name of the product, the batch size, how the product is packaged, date the batch is being made, etc.

3. Ingredients

Since the ingredients used in your batch are a key component of the success of the product, keeping accurate information about the ingredients is very important. Several different types of information about the ingredients used should be noted:

A. Ingredient Required. Your Master Formula should have the name of the ingredients. Each one should be recorded on the Batch Record.

B. Amount Required. If your Master Formula is in terms of percentages, you’ll need to calculate the amount of each ingredient and note that down (otherwise record the amount specified in the recipe).

C. Ingredient Actually Used. This is the place to record what ingredient was actually used. If the Master Formula called for “fragrance,” this is where you note down exactly what fragrance you used. If you have details to more closely identify the ingredient used in the batch, write them down. That might include:

• Name of the supplier.

• Supplier’s lot or product number

• Date of purchase

• The lot number that you assigned to that particular purchase of that ingredient (if any)

D. Amount Actually Used. Write down the amount of the ingredient that was actually measured out and used in the product. Of course, it should be exactly what’s called for in the Master Formula, but if it ends up being a little under or a little over (by choice or by accident), this is the place to write it down. Be honest here, even if it’s hard.

4. Production Details

Record how you followed each step of the Master Formula, and keep track of any specifics. For example, if the Master Formula says to “Warm the oils to 100° – 120°,” make a note of the actual temperature of the oils when the step is completed.

If anything unusual happened while you were making the batch, it’s important to note that as well. If you were interrupted for some reason, or if there was anything odd about the way the product acted, record that in your Batch Record.

5. Quality Checks

The Master Formula may contain checks (or you may have developed ways to check the product) to verify quality of the finished product. For example, you might check the color, scent, texture or consistency of the product to make sure it’s right. Note down what you find, so you have a record.

6. Packaging

Keep a record of what packaging was used for the batch (bottles, caps, wraps, etc). If you know where you purchased the packaging items, record it. Attaching a copy of the label to the Batch Record is often helpful when you refer back to it later, especially if you created a new or revised label for the batch.

Summary

Keeping a record of your product batches is more than just a log that lists that the product was made. It should include all of the details listed above so you have an accurate records of what was actually done.

If, heaven forbid, later on there is a problem with the batch, you’ll be able to go back and review your batch record and see what might have gone wrong.

Maybe even more importantly, if you discover that the batch was even better than expected, you’ll be able to determine why and improve your product accordingly. After all, some of the greatest discoveries were accidents … and the only way they could be reproduced because accurate records were kept of what was actually done.

Marie Gale (www.mariegale.com) is the author of Soap and Cosmetic Labeling; How to Follow the Rules and Regs Explained in Plain English and Good Manufacturing Practices for Soap and Cosmetic HandCrafter’s. She has been actively involved in the handcrafted soap and cosmetic industry for over 10 years and is Past President (2004-2009) of the Handcrafted Soapmakers Guild (www.soapguild.org).

Trends in Men's Skincare

noreply@blogger.com (Debbie May) — Mon, 22 Jul 2013 15:00:00 +0000

Made-for-men skin care products and cosmetics are expected to hit more than three billion dollars by 2016, a more than 15% jump from this year. If your skincare company isn’t already catering to men, you’re leaving money on the table.

According to a new study from The NPD Group, Inc. titled Men’s Grooming Consumer Report, more than nine in 10 men (ages 18+) are using some sort of grooming product today. [1] This includes lotions, shaving products and hair care. However, only one-quarter of men are currently using facial skin care products such as facial cleansers and moisturizers, lip and eye products, and anti-aging treatments. This is attributed to a general belief that facial skincare products are not needed unless you have a specific skin problem such as acne.

Even though the interest in cosmetic products has skyrocketed, men want to remain discreet to preserve their masculinity. It is clear, however, that men today are joining women in the fight against aging. If big box stores are any indication, you can now find entire departments devoted to beauty products for men. You can even find subscription based beauty services like Birchbox that deliver the latest and greatest men’s products directly to your doorstep, hassle-free. [2,3]

Although the segment appears to be growing at a steady pace, there is a learning curve. Some men still have to unlearn the concept that their body care products, such as bar soap and body lotion, work just as well for facial skin. There is still difficulty accepting products that require multiple steps such as separate cleanser, moisturizer and toner. So the trend is towards multi-functional products like blemish balms (BB creams) and dynamic do-all creams (DD creams) which are proving popular in today’s market.

Women’s expectations are changing too. More women expect the man in their life to take care of his skin and to be well-groomed. So there is some “peer pressure” to look good and that in turn translates into acceptance of men’s grooming products intended to “boost” a man’s appearance. The cosmetics market, or makeup for men, is the fastest growing segment of the beauty industry. This includes “foundation” type products that even skin tone, concealer products, tinted moisturizers, bronzers, sunless tanners and lip products. In a recent survey of men in the United Kingdom, 71% of men surveyed admitted to using concealer to hide blemishes, dark circles and uneven skin tone. In addition, a whopping 64% used lip gloss and 49%, eyeliner to enhance their appearance. [4]

There is a huge opportunity for men with skincare, and now that so many men are already involved and engaged, it is up to brands to maintain that interest. Tips for marketing to men include more masculine or unisex product names and descriptors like “camouflage”, “beard lube”, “turbo wash”, “power peel”, “refueling wash” or “facial tonic”. Packaging should have a clean, professional look in neutral colors or colors that allude to “prestige”. Black, blue or grey packaging and matte metal accents translate well to differentiate your men’s products from your regular product line. [5] Aim for more of an apothecary or laboratory appearance in labeling these products as men tend to lean towards products that look “clinical” in appearance. This gives the illusion of purchasing a product to “treat” skin rather than to “beautify”. Men are less comfortable buying a feminine looking product or a unisex version of an overtly feminine product. [6]

If there were any lingering doubts that men’s skin care products have truly gone mainstream, households in New York, Los Angeles and San Francisco received a newspaper insert comic book featuring Marvel’s Captain America hawking Kiehl’s new men’s anti-aging moisturizer, appropriately named, “Heavy Lifting.” [7]

http://www.marketingforecast.com/archives/20514

http://www.birchbox.com/men/

http://www.prweb.com/releases/2013/3/prweb10508561.htm

http://www.examiner.com/article/cosmetics-use-for-men-growing-the-uk

http://business.time.com/2012/06/25/hey-buddy-got-any-eye-shadow-i-can-borrow/

http://www.gcimagazine.com/marketstrends/consumers/men/138489574.html?page=1

http://abcnews.go.com/blogs/business/2013/06/captain-america-comic-pitches-skin-care-products/

Allison B. Kontur is an inventive scientist and educator specializing in natural cosmetic formulation and short-run, private label skincare. Since 2005, she has worked as chief cosmetic formulator, business consultant and CEO of various skin care companies. Allison is the co-founder of AliMar Labs, LLC, (www.alimarlabs.com ) a private label manufacturer specializing in ultra-low minimums, as well as co-founder of the Vegan skincare line, Sydni Monique (www.sydnimonique.com).

3 Reasons That Too Many Home Businesses Fail

noreply@blogger.com (Debbie May) — Mon, 15 Jul 2013 15:00:00 +0000

Many outstanding business ideas are born from a spark of passion; that moment when a daydream stretches the confines of its world to become a true possibility. When a hobbyist, or someone who creates a product out of necessity says, “Hey, I might be able to make a little money with this idea.”

But even the most creative, promising ideas are nearly impossible to fully bring to life. It’s true, we don’t know what we don’t know, but wanna-be entrepreneurs can easily get lost in the excitement and hope of building their dream and they fail (miserably) at doing their homework first.

Here are the most common mistakes that I see newbie entrepreneurs make when taking their “kitchen table idea” to the market. Go ahead, build your dream. But do it the smart way!

1. They Don’t Do Real Product Research.

Come on, admit it. Your neighbor, friend—or mom—told you that your idea is the best one this side of paradise, right? And why shouldn’t you believe them? Everyone you know has jumped on the bandwagon with praise and encouragement, so they must be right.

I’m going to be blunt. These folks have to tell you all of these good things. They love and care for you and want to support your dream. But they are not necessarily your ideal customer.

You must test your idea. One of the best ways to do that is to take a simpler, less expensive version of your product to market. If you have created a full line of bath products, for instance, don’t wait until all of the branding, production, and packaging is done before you roll it out. Take just ONE of your products to every mini-expo, school fundraising event, and distribution opportunity you can think of. Create a dashboard that reveals trends, sales history, and any other critical information. Most importantly, get feedback from strangers! I know that’s scary, but you have to do it. Offer incentives for feedback on every aspect of your product. Then adjust as necessary.

2. They Aren’t Fully Informed.

I once coached, albeit briefly, an inventor who had a wonderful product ready to bring to market. Sadly, she invested her nest egg, mortgaged her house, and spent every waking moment for 2 years just to create a prototype, branding, and packaging. And her product idea was a good one. She even had purchase orders from two major retail outlets. But the days of a purchase order providing collateral for a loan are long gone. So here she was with a good invention and the interest of these mega stores, but with absolutely no funding to take her product to market.

Too many entrepreneurs believe that if they can get the interest of a major distributor or retailer that it’s smooth sailing from there. But that’s just the beginning. Do you have any idea what it costs to manufacture and package a product? Do you know the minimums required by most factories? Can you even grasp the reality of the landed cost of your product? Costs of customs duties, tariffs, taxes, insurance, currency conversion, crating costs, and handling fees associated with importing are enormous! These are the things you may run into if your product is promising. Do your homework before you take your first big steps.

3. They Lack Support

So you’ve done your planning, estimated your costs, and gotten product sales rolling. Hurray! Now you have a business, but why? Every entrepreneur I’ve ever spoken to is in business for themselves for one reason: freedom. Now, freedom has many definitions, but it’s at the core of nearly every small business. Yet, these solopreneurs work 60-80 hours a week. What kind of freedom is that? Sure, this may be the reality in the beginning, but it has to change as your company grows.

How do you fill your days? Do you do your own accounting, website management, packaging and shipping, and basic administrative work? If you spend 20 hours a week doing these things imagine the opportunities for growth that you are missing. If you could “buy back” those 20 hours how long would it take you to grow your company to the next level? Most people are shocked at how quickly this could be done if they outsourced the “little stuff” or the things they are not experts at. Find your passion, highest skill level, and key growth strategies. This is where you need to spend your time.

Can’t afford help? Think again. I promise that you are spending--wasting really--more money by trying to be an expert at all things, including the things you absolutely abhor doing. Stop the madness! Save every penny until you can afford one month’s pay for a helper. Then get to work and increase your sales so that you can afford to keep them on.

Marla Tabaka is an entrepreneurial coach who inspires entrepreneurs around the world to attain what she calls, The Million-Dollar Mindset. As a result, many of her clients have achieved – even surpassed – the million dollar mark in annual revenues and are living the life of their dreams. In addition to running a thriving practice, Marla is a columnist for Inc. Magazine on-line, and hosts two international on-line radio shows, The Million Dollar Mindset and Million Dollar Mindset Tapping. Marla wrote this feature article exclusively for Debbie May.com (http://www.debbiemay.com/), an organization dedicated to helping small businesses succeed. If you would like to consult with Marla to learn how she can help you grow your business and better your life, contact her at Marla@MarlaTabaka.com.

Protecting Confidential Information

noreply@blogger.com (Debbie May) — Mon, 08 Jul 2013 15:00:00 +0000

You may have business secrets that you want to hide from the general public and your competitors. Some of the legal mechanisms offering protection are trademarks, patents, and copyrights. All are forms of protective licenses granted by the government, but they take time and money to obtain.

Not all secrets fall neatly into a category that can get such a license. There may also be legitimate reasons for not seeking a license, but there are still ways to limit who knows about your valuable secrets. Two terms often used to identify them are “proprietary information” and “trade secrets.”

Trade Secrets

If you own your company, it’s your call on what information you want to protect. Most trade secrets consist of a formula, design or process that’s unique to your business. To qualify as a legally protected trade secret in most jurisdictions, the following three criteria must be met:

The information must enable a current or future financial benefit
The information is unknown to the general public, which makes the financial benefit possible
The information is protected by the owner using all reasonable means

There are significant differences between patents and trade secrets, and both have advantages and disadvantages. One way to understand this is by taking a look at two of the most famous trade secrets in the United States – the formulas for Coca-Cola and Kentucky Fried Chicken.

While some assume these formulas are patented, they aren’t. A patent is disclosed to the world and has an expiration date. During the effective period of the patent, you have exclusive rights to its benefits. Once the patent expires, anyone can legally copy your product and sell it. If Coke and KFC had patented their recipes, the patents would have expired long ago and there could be thousands of copycats profiting from them.

Trade secrets are never disclosed and never expire. They remain secret as long as they are protected by the holder. Unlike a patent, a trade secret carries no defined period of exclusive use. So if a trade secret is discovered through legal means, anyone can use it. In the case of Coke and KFC, their formulas could likely be discovered by chemical analysis and reproduced by other companies.

Legal Remedies

It’s a federal crime to steal a commercial trade secret, and penalties apply to two types of activity:

Theft of a trade secret of a product in interstate or international commerce that harms the secret’s owner
Theft of a trade secret that could benefit any foreign entity

The criminal penalties for violating the Economic Espionage Act include imprisonment and fines. A conviction also results in the forfeiture of moneys gained from the crime and all property used in committing it.

In addition, most states allow a private cause of action under the Uniform Trade Secrets Act. Possible remedies imposed for civil liability include injunctions, as well as monetary and punitive damages.

Protecting Information

Do the easy things first. Buy a heavy-duty, fireproof safe and lock up your important documents or put them in a safe deposit box. Use a shredder whenever you need to destroy them.

If you have employees, there are several things you can do:

Exercise strict control over who has access to company keys, safe combinations, and computer passwords
Require employees to relinquish all rights to proprietary data and intellectual property created while working for you
Require employees to sign confidentiality agreements that prevent disclosure of company-sensitive information
For employees that leave their job, require a non-competition agreement that restricts disclosure of company-sensitive information, subject to reasonable time and location limitations
Meet with visitors in an area where exposure to confidential information is highly unlikely

Nondisclosure Agreements (NDA)

Sometimes you have to disclose secrets in order to do business. This often occurs when you have suppliers who need to know your proprietary product specifications in order to accurately fulfill your orders. The solution is to draft a NDA that specifies the nature and purpose of the information to be shared and how it will be protected. It’s a legal contract that will remain in effect through whatever date you stipulate in the agreement.

NDAs can be implemented with suppliers, customers, and any other company or person with whom you have private business dealings. NDAs are usually one-sided or unilateral where only one party to the transaction is disclosing sensitive information, and the other party is obligated to protect it. The agreement can also be multilateral where the transaction involves multiple parties and some or all of them are disclosing information.

Bottom Line

It’s important to protect the data and information that make your company unique. Many small businesses don’t have the need, or don’t want to spend the money and time to get patents. That doesn’t mean you can’t or shouldn’t protect your secrets through other methods that provide legal remedies if violated.

While a patent protects you from someone duplicating what you’ve done and profiting from it, a trade secret does not. The key point is to protect that secret so that competitors can’t figure out how you’re doing what you’re doing. Coke and KFC have done this successfully for several decades without the benefit of patents.

We’re living in an age of digital data that’s easily tracked and hacked, so protecting it is more important than ever. Be very selective of the type of information you include on your website, catalogs, brochures, and marketing materials. Secure your computers with firewalls, virus protection, and foolproof backup systems. Change your passwords like clockwork and whenever an employee leaves their job. Caution and common sense are two of your best weapons against compromise of your hard work to build your business.

Geoffrey Michael (www.geoffreymichael.pro) is a freelance writer specializing in business, marketing, personal finance, law, science, aviation, sports, entertainment, travel, and political analysis. He graduated from the United States Air Force Academy and is also licensed to practice law in California and New Hampshire. Geoffrey wrote this feature article exclusively for DebbieMay.com, an organization dedicated to helping small businesses succeed.

How to Build and Manage Your Online Reputation

noreply@blogger.com (Debbie May) — Mon, 01 Jul 2013 15:00:00 +0000

Thanks to online maps and review sites like Google Places for Business, Yelp, and Yahoo! Local, in addition to popular social media tools like Google +, Facebook, Twitter, and FourSquare, there are many inexpensive ways to tell your prospects and customers what your business does, where you’re located, and what other customers think. Need proof behind the power of online word of mouth marketing? Recent research by advertising firm MDG indicates that 70% of customers use social media each month to hear the opinions of others. If the news they read about your business is good, you could be primed to lock in new customers, simply by leveraging the positive experiences of your already-satisfied ones.

But what if you don’t please every customer—and they take their frustration online? That same research indicates that 45% of those who use social media to research a company discovered things online that caused them to change their mind about the business. Though you may not be able to win every customer’s referral, you can manage your brand’s image and reap the benefits of an online presence, by managing your online reputation. Here’s how.

Spread the positive news.

Considering that 92% of those surveyed by MDG said they trust the online opinions and reviews they read, sharing customer testimonials can boost the likelihood that prospects will give your business a try. If you receive a note of thanks via email giving your business the thumbs up, ask the customer for permission to reprint their kudos on your website and other social media outlets. If you get rave reviews from customers on Twitter, publish them directly to your website by hovering over the “Tweet” with your mouse, selecting “Embed Tweet,” and copying the HTML code provided to your website. Form a template that you can send to established customers with a marketing promotion or coupon thanking them for their business, and ask them to share their experience on your Facebook, FourSquare and Yelp profiles (and include the links). The more positive news your brand has online, the less vulnerable you are to a negative one.

Get automatic notifications when you’re mentioned.

Set up a Google Alert using your business name as the search term and you’ll know anytime someone posts information about your business on a site that Google crawls. If you use TweetDeck or HootSuite, add your business name to the feed so you can easily spot information about your business posted on Facebook or Twitter. If can invest in online reputation management, sites like ReviewPush ($29/month) and Trackur ($27/month) monitor all activity related to your business on Google, Yelp, Foursquare, Yahoo, YellowPages, and more.

Respond quickly.

If you do have an unhappy customer who makes his or her feelings known online, don’t let their bad feelings fester -- even if you don’t think you’re in the wrong. As soon as you notice the information, publicly respond to the person and apologize for the bad experience. If you have their contact information, contact them privately as well, and offer a solution that might remedy their bad experience. If you don’t have their information on file, follow their negative review with a request that they contact you privately for further resolution. Though many unhappy customers won’t wish to deal with you further, it shows the public that you truly make an effort to resolve issues.

Know your rights.

People can legally express their opinions, but they do not have the right to make false claims about your business or defame it. Keep tabs on what comes up in relation to your business name by doing periodic Google searches. If you find that something negative and false in regards to your business name, you can submit a formal complaint with Google, and potentially, work to at least hide the page results in a Google search so it doesn’t tarnish your image beyond repair.

Stephanie Taylor Christensen is a former financial services marketer turned stay at home working mom, yoga instructor and freelance writer covering personal finance, small business,consumer issues, work-life balance and health/wellness topics for ForbesWoman, Minyanville , SheKnows, Mint , Intuit Small Business, Investopedia and several other online properties. She is also the founder of Wellness On Less and Om for Mom prenatal yoga. Stephanie wrote this feature article exclusively for Debbie May.com (www.DebbieMay.com), an organization dedicated to helping small businesses succeed.

GMP and Ingredients

noreply@blogger.com (Debbie May) — Mon, 24 Jun 2013 15:00:00 +0000

“Good Manufacturing Practices” (GMP) are the practices and procedures used in manufacturing that ensure a good finished product. The ingredients you select and use are obviously key to a high-quality finished product; therefore how you specify, purchase, approve, handle, store, track and use your ingredients is an integral part of Good Manufacturing Practices.

The following guidelines outline best practices for your ingredients. Whether you work out of your kitchen and store your ingredients in a designated shelf or cupboard, or have a dedicated shop, with a little thought and planning these guidelines can easily be adapted for any situation.

1. Specify the ingredient criteria fully.

Often the ingredients listed in a recipe are somewhat generalized and when it comes to actually purchasing the item, you are faced with options. For example, your recipe calls for “Lavender Fragrance”. Is that Lavender 40/42 essential oil? Bulgarian Lavender essential oil? Lavender fragrance oil? A combination? Obviously the end product changes based on which “lavender” you choose.

Having exactly specified criteria is especially important when an ingredient can come in several different forms under the same name. Cornstarch, for example, comes in various grades, particle sizes and treatments (all of which are called “cornstarch”). Which one you use can drastically change your product. You wouldn’t want a coarse or rough particle size for face or body powders, but it might be okay for bath products or as a thickening agent.

GMP Guidelines call for defining the following for every ingredient (or packaging material) you use:

Description. What does the ingredient/material look like? Feel like? Smell like? What color should it be? How big or small are the particles? A detailed description is especially essential when dealing with botanicals.

Critical Criteria. What criteria MUST be met in order to use the item at all? This is generally criteria that if not met would make the product unsafe or unusable, or which are legally required. Example: negative for eColi and Salmonella.

Major Criteria. What is EXTREMELY IMPORTANT criteria? This would be criteria that if not met could affect product quality or result in a lower quality product. Examples: Cornstarch particle size, purity of lye for soap, or whether a botanical is fresh or dried.

Minor Criteria. What criteria SHOULD be met? These are things that should be met, but won’t adversely affect product quality. Example: Whiteness level of cornstarch.

Setting exact criteria ensures that when you select an item to purchase, you know exactly what you need and can make sure you get the same ingredient every time, regardless of the supplier you purchase from.

2. Select a qualified supplier.

Select and approve suppliers for that ingredient in advance, and only purchase that ingredient from suppliers who have been approved for that particular ingredient.

While price is an important factor, also consider customer service, return policy, shipping policy, and the information provided by the supplier (including technical specifications, quality assurance, usage information and MSDS sheets) when approving a supplier for an ingredient.

3. Assign a lot number to every ingredient/material received.

When you receive an ingredient or packaging material, assign it a lot number. It can be anything that will uniquely identify the EXACT order you received. Keep in mind that if you receive 4 oz. of Lavender essential oil on Monday and another 4 oz of Lavender essential oil on Friday, they are two different lots and should have different lot numbers assigned to them.

Be sure to record the supplier invoice number and date as well as the supplier lot number (if any) so you can trace your lot number back to the exact order from the supplier.

4. Check and approve each incoming lot before using.

Every time an order is received, check the ingredient/material carefully to ensure it meets your specifications. Look at the shipping box – is it damaged at all? Did you receive what you ordered? Does the ingredient meet your critical, major and minor criteria? Keep a written record of what you find.

If the ingredient is acceptable, approve it for use. If not, set it aside – away from approved ingredients – and appropriately handle.

5. Organize Stored Ingredients.

Keep all your approved ingredients stored in such a way that you can easily identify what they are, the lot number and the expiration date (if any). If the ingredient is repackaged into a different container, label it clearly. Don’t combine different lots of the same ingredient!

6. Record the ingredient Lot Number when used in a product batch.

When you make a batch of product, make sure to record the Lot Number of every ingredient used in the batch.

Summary

By implementing these steps, you will have certainty that every ingredient you use in your products has met your quality standards and you will have taken a significant step toward making sure your end products are of the highest quality – every batch, every bar or bottle, every time.

Hobbies That Make Money

noreply@blogger.com (Debbie May) — Mon, 17 Jun 2013 15:00:00 +0000

Some people are fortunate to work in jobs they really enjoy. Others spend a lifetime doing what they do strictly for the money. They may have hobbies that are potential moneymakers, especially for those who need extra income after they retire from their full-time careers.

Many have taken their hobbies and made them into giant businesses. Alexandra Ferguson started by making a couple of custom throw pillows for a friend’s birthday. She made around 30 more to give as Christmas presents that year. Just a few years later, she ditched her old job and is predicting annual revenues of a million dollars. Niche products have an advantage because you can focus on specific markets and demographics.

Most of us have hobbies and some of them have the potential to bring in cash at some point in our lives. In all cases, do thorough research on your local laws, zoning restrictions, licensing and insurance requirements, and tax implications before getting started. Out of hundreds of options, here’s a short list that may stimulate ideas for other possibilities.

Baker

Before you head down the trail blazed by people like Debbi Fields, check your local health laws that regulate the sale and distribution of food items. While there are lots of stories about people who started businesses in their home kitchens, many jurisdictions now require a separate kitchen before you can open for business.

If you’ve got the skills, enjoy cooking and have some secret recipes that have been handed down in your family, this is a way to turn all that into cash with a small initial investment. Stick with just a few specialty products and make yourself known. Local farmers’ markets and food fairs are a good way to get started.

Dance Instructor

Television shows like Dancing with the Stars and So You Think You Can Dance have popularized and rekindled interest in all types of dancing. If you enjoy dancing and have taken lessons in the past, you may be able to parlay that into a steady income. You don’t have to be an expert to teach beginners, and you don’t have to own a dance studio. Some existing studios will rent their dance floor during their downtime to help pay their own bills. If that option isn’t available, you might convert a room in your home or part of your garage.

Photographer

The opportunities for photography are almost limitless, but you’ll have to invest in high-quality equipment. Freelance photographers can earn $2,000 and up doing weddings, depending on the specific package and photos desired. The internet has created a huge market for stock photos that can be placed with stock agencies for a contracted period and specified commission.

Some photographers choose to fund their own shoots to give them the flexibility to select the subjects they like best. They do their own marketing for the images they produce. Others work with agencies on assigned shoots and are paid fees and expenses. You can also sell your photos directly to the public through art fairs, boutiques, and flea markets. It’s wise to understand copyright laws to ensure you’ve protected your legal interests.

Woodworker

People will pay for quality handmade items of solid wood. If you’ve got a shop in the garage and the necessary tools, there’s a ready made market for wood furniture and custom-designed wooden objects. There’s also a sizable need for the refinishing and restoration of all things made of wood including antique boats and furniture. If you’re a woodcarver with a good imagination, you can create all sorts of things to sell at craft shows and online at websites like eBay.

Coach

You don’t have to coach a professional sports team to make some serious money in a sport that you love. If you’re qualified, you can work year-round coaching seasonal sports. The requirements at public and private schools vary by location, but there are also opportunities at country clubs and youth clubs such as the YMCA. These include sports that aren’t continuously in the limelight such as volleyball, swimming, badminton, and track. You can also freelance as a personal coach to athletes who want one-on-one training. Depending on the sport, you may need access to an appropriate training facility and equipment.

Other Ideas

The best idea is a hobby that you love and are very good at. Here are a few others that may spark some interest: personal shopper, blogger, sewing/knitting, web designer, dog walker, teacher/tutor, party planner, gardener, handyman, music teacher, musician, and homemade crafts of all types.

What to do

Turning your hobby into money takes some planning and marketing. While the creative part can be lots of fun, it’s important that the business side is locked down before you get yourself in too deep. Put together a system for tracking your expenses and sales, and devise a method for setting your pricing structure. Design a creative logo and packaging scheme to attract maximum attention.

Social media and online advertising have made it easier and cheaper to get the word out. Join online discussion groups that are interested in your products and use those to promote your work. Professional photos also go a long way in showcasing your products and driving sales. Personally interact with the local media, volunteer some of your services, and engage the chamber of commerce. Word-of-mouth goes a long way to help get you started.

Websites such as eBay offer great platforms to sell products with minimal overhead cost to you. The website of choice for crafts is Etsy, essentially the handmade version of eBay. Craft fairs, galleries, flea markets, and state and county fairs rent space where you can set up a sales booth. You can also host home-based fairs for friends and acquaintances who can spread the word.

At some point you may think of taking your hobby full time. Most have found the best way to do that is by easing into it. Test the waters and put together a business plan before making the final leap.

Geoffrey Michael (www.geoffreymichael.pro) is a freelance writer specializing in business, marketing, personal finance, law, science, aviation, sports, entertainment, travel, and political analysis. He graduated from the United States Air Force Academy and is also licensed to practice law in California and New Hampshire. Geoffrey wrote this feature article exclusively for DebbieMay.com, an organization dedicated to helping small businesses succeed.

4 Ways to Lower Your Business Costs

noreply@blogger.com (Debbie May) — Mon, 10 Jun 2013 15:00:00 +0000

Though you need to invest in your business to fuel growth to some degree, you’ll generally uncover the path to profitability by quicker by lowering your business costs. Here are four ways to do it.

1. Test your ideas before you invest in them fully.

Given that financing and business loans are so hard to come by for many small businesses, it’s no surprise that “The Lean Startup” by Eric Reis (which began as a book but launched into a full blown movement) has generated such entrepreneurial enthusiasm. Though there are many different aspects to the Lean Start Up theory, it includes common sense ideas that you can apply to any small business—that can start to slash your business costs now. For starters, test your product and service ideas before you invest fully in them, or put your business at risk by making change you didn’t solicit customer feedback about. By putting your ideas in front of a customer focus group, which can be done informally, in person, or online, the idea is to test and learn about what your customers want—long before you bring a product or service to market. Even if your ideas get a big “thumbs down,” little failures early on provide the necessary knowledge to make course corrections before they are too costly.

2. Prioritize the skills you pay for.

Time is money when you are running a small business, and while you can’t expect to expertly handle every aspect of business on your own, you’ll save loads of energy, time and money, by recognizing what you do well, and what is worth spending money for someone else to handle. To that end, evaluate the tasks that require an actual human against those that might be made quite do-able with the help of technology. For example, you may need to work with an accountant to handle your quarterly tax payments, tax strategy, and returns, but a simple web-based accounting system like Wave or QuickBooks might be a more cost-effective way to manage your basic monthly bookkeeping duties. If you love building relationships, for example, but know nothing about online commerce and web analytics, invest in a freelance web designer who can give you exactly the site you want—but take advantage of technology that makes user data easy to understand. For example, CrazyEgg starts at as low as $9 a month, and can show you where people click on your site. With that data, you’ll have actionable information you need to relay back to your designer, at a fraction of the cost you’d pay an online marketing consultant.

3. Minimize hard copy costs.

If you’re hesitant to ditch your paper trail because you deal with contracts that require signatures and hard copies, you can streamline processes (and cut the costs of paper, printing and postage) by taking advantage of mobile technology. For example, SignEasy, an app, available on both Apple and Android platforms, allows users to sign download, sign, save and return contracts and other paperwork sent by email, or from other cloud-based sharing apps like Evernote, Box, Dropbox, and Google Drive (formerly Google Docs). Try the basic app for free, or $19.99 for a year of unlimited use. If you tend to mark up package or product design documents and transfer them by mail, Skitch is a free app that helps you mark up your screen captures and images with shapes and comments, and transmit them to another person by email.

4. Ensure your products and policies are clear.

Returns and chargebacks eat into your bottom line—and cost you money. According to payment processing firm e-onlinedata, a customer who disputes a charge with Visa or MasterCard can cost a small business at least $25 per event. Interestingly, all of the primary reasons such disputes arise (customers don’t recognize the merchant name on a credit card statement, expectations weren’t met, or the refund policy was unclear), are easily prevented. Review your product and service descriptions in your marketing materials and website and ensure you’ve done your due diligence: Are product functions, features, materials, colors and services named, described and depicted accurately? Do you clearly state the process for returns, exchanges, and price adjustments at checkout-- before the customer completes the purchase? Lastly, is the name you’ve registered with your credit card processor congruent with your business name? If it’s not, add language on the checkout page so the customer knows how the purchase will be reflected on the credit card statement.

How to Hire the Perfect Employee

noreply@blogger.com (Debbie May) — Mon, 03 Jun 2013 15:00:00 +0000

If I suggested that you hire two new employees this week what would your response be? Let me guess: “I can’t afford it,” or “it’s more trouble than it’s worth”. Those are the two most frequent responses I hear from my business clients. And I’m here to tell you that neither is true.

Today we’re going to take a look at the latter: why does it feel like hiring and training employees causes so much pain? In most cases it’s because the entrepreneur is using a poor model for the hiring process. In fact, many business owners have no model at all. These new hires usually don’t work out if they are determined solely by skills and experience. This not only cost time and money, it’s frustrating to the entrepreneur, leaving them with the belief that employees simply are not worth the effort.

But nothing is farther from the truth. The problem is that hiring managers (that’s probably you) are basing their decisions on what they see on the resume. But skills can often be trained. Emotional intelligence and personality type come from an innate ability coupled with life experience. You cannot train for emotional intelligence! If you hire an account manager with the hard skills necessary to manage your clients’ accounts but he is adverse to deadlines and has a limited ability to handle a conflict, it’s a recipe for disaster. As another example, if you hire a customer service representative who can flawlessly enter one hundred orders in an hour but has no patience or tolerance for “difficult” customers, you won’t have to worry about order entry mistakes!

To hire the right person for the right job, begin by assessing the personal qualities that your ideal employee would possess. If you are hiring a coder, you want this person to be focused, analytical, and creative. Yes, creative! The best coders are problem-solvers and that takes creativity!

If you are hiring for a sales position you’ll want someone who is a connector. They are personable, driven, and a great communicator.

What are some fun questions you can ask your candidates to find out more about their personality and work ethic? Here are a few of my favorites. Adding this piece to your hiring puzzle will bring you much closer to your dream team!

Question 1.

“Using your imagination, create your ideal co-worker. Tell me about that person. What would they be like?”

What’s interesting about this question is that your candidate is very likely to describe themselves! This will give you great insight to their work ethic and personal characteristics.

Question 2.

“If you came with a warning label what would it say?”

This question catches people so off guard that they blurt out the most honest responses, including those they would never admit to in an interview!

Question 3.

“How would people communicate in a perfect world?”

If your candidate responds by saying, “by email only” and you are hiring for a sales position, you know this won’t work! Or if you require this position to report weekly to and about the client and they prefer texting, you will have a problem. Communication is key to success. Understanding how your employees’ best learn and communicate is a must. If your candidate’s style is not a match, move on to the next.

Go ahead; make up a few of your own questions. Make the process fun and challenging. This will give your candidates an inside look at your fun and creative company culture, they may love it—or they may not. Either way upfront knowledge is the golden ticket to hiring success!

Manufacturing Sunscreen Products

noreply@blogger.com (Debbie May) — Mon, 27 May 2013 15:00:00 +0000

Days are getting longer, the sun is shining, temperatures are rising and it’s days like these that get people in the mood for a little sun worship. But, did you know that skin cancer is the most common form of cancer in the United States? More than 3.5 million skin cancers in over two million people are diagnosed annually[1]. Facts like these compel the common consumer to run for the sunscreen. This causes a chain reaction because skincare companies want a piece of the action, but they also know that consumers want a sunscreen product that is “natural” and doesn’t contain chemicals of concern.

It is certainly compelling for small skincare manufacturers who want to gain market share by offering “natural” sunscreen. However, use of the term "sunscreen" or similar sun protection terminology in a product's labeling generally causes the product to be subject to Food & Drug Administration (FDA) regulation as a drug. Some ingredients approved as "sunscreens" may have alternate purposes in a product, such as titanium dioxide to make the product white. To avoid consumer misunderstanding, if a cosmetic product contains a sunscreen ingredient and uses the term "sunscreen" or similar sun protection terminology anywhere in its labeling, the term must be qualified, in accordance with 21 CFR 700.35(b), by describing the benefit to the cosmetic product provided by the sunscreen ingredient (for example, "Contains a sunscreen to protect product color."). Otherwise, the product may be subject to regulation as a drug (21 CFR 700.35)[2].

There are two basic types of sunscreen products on the market: products that penetrate the outermost layer of skin to absorb ultraviolet rays, and products which coat the surface of the skin to act as physical barriers to ultraviolet rays. Both of these types are rated with a sun protection factor (SPF), which lets the consumer know how much protection against UVB rays the product provides. Any product that declares a SPF on the label, qualifies as a sunscreen and is beholden to FDA requirements for Over The Counter (OTC) drug products. OTC monographs define the safety, effectiveness, and labeling of OTC active ingredients. If a drug is in the OTC final monograph, companies can manufacture and market that OTC product without FDA pre-approval[3].

Regulatory hurdles pose the greatest barrier to entry into the Sunscreen Manufacturing industry[4]. In order to sell a sunscreen product, your company must follow one of two avenues:

To manufacture and sell your own sunscreen, you must follow the Food & Drug Administration guidelines for OTC drug products:

FDA Registration: Sunscreen manufacturers must register with the FDA, work under GMP guidelines, and update their list of drug products twice annually.
Labeling rules: All sunscreen ingredients must be listed separately in the ingredient list under "active ingredients" together with the concentration used in the product.
Validation of claims: Claims made on the label suggesting that the product offers sun protection (UVA and/or UVB) must be substantiated with clinical and/or in-vitro testing.

Alternately, there are numerous private label manufacturers who can manufacture sunscreen products according to FDA guidelines and package those products under your company name. This process ensures the following:

FDA Registration: Sunscreen “distributors” are not required to register with the FDA. This is the responsibility of the sunscreen manufacturer. As long as you are distributing a sunscreen manufactured by a qualified contract manufacturer, it is that manufacturers responsibility to register the manufacturing facility and the formula. They must work under GMP guidelines and update their list of drug products twice annually.[5]
Labeling rules: All sunscreen ingredients must be listed separately in the ingredient list under "active ingredients" together with the concentration used in the product. Your contract manufacturer should provide you with labels that follow FDA labeling guidelines for OTC drugs.
Validation of claims: It is the responsibility of the contract manufacturer to ensure that the claims made on the label suggesting that the product offers sun protection (UVA and/or UVB) are substantiated with clinical and/or in-vitro testing. Your contract manufacturer should be able to provide you with documentation corroborating any product claims.

Offering sunscreen products is not an unattainable goal, but it is imperative that your small business be aware of the requirements prior to marketing this class of products. Failure to comply with FDA guidelines may result in regulatory action including (but not limited to) your product being classified as misbranded, mandatory product recalls and fines.[6]

References:

http://www.skincancer.org/skin-cancer-information/skin-cancer-facts
http://www.fda.gov/Cosmetics/ProductandIngredientSafety/SelectedCosmeticIngredients/ucm127406.htm
http://www.fdahelp.us/otc-monograph.html
http://www.ibisworld.com/industry/sunscreen-manufacturing.html?partnerid=prweb
http://www.fdahelp.us/Pdf/Drug.pdf
http://www.fda.gov/Drugs/GuidanceComplianceRegulatoryInformation/Guidances/ucm330694.htm

Allison B. Kontur is an inventive scientist and educator specializing in natural cosmetic formulation and short-run, private label skincare. Since 2005, she has worked as chief cosmetic formulator, business consultant and CEO of various skin care companies. Allison is the co-founder of AliMar Labs, LLC, (www.alimarlabs.com) a private label manufacturer specializing in ultra-low minimums, as well as co-founder of the Vegan skincare line, Sydni Monique (www.sydnimonique.com).

Clever Ways To Connect to Your Customers Through Email

noreply@blogger.com (Debbie May) — Mon, 20 May 2013 15:00:00 +0000

Email marketing can be one of the most cost-effective means of reaching your customers, but given that New York Times estimates that corporate workers get at 105 emails each day, an effective strategy starts with getting your email noticed among the sea of electronic communications. Here are four clever ways to connect with your customers through email.

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Tease with a provocative headline. An email’s subject line is akin to a headline in a newspaper article: To catch reader attention, it must be relevant, interesting, and to the point. Before you send out your next email, don’t just tell people what it is with stale phrases like “coupon inside” or, “new product announcement”; consider what the email ultimately does for the recipient. In the case of a coupon, for example, telling them the actual dollar amount they stand to save—and presenting the coupon once they open the email may be more impactful to your click through rate efficacy. Even if you’re simply sharing great “insider” content, tease them with the ultimate “payoff,” whether the information is geared toward making them feel more beautiful, creative, healthy-- or more wealthy, in the subject line.
Ask your readers what they think. The fact that it’s free and easy to use isn’t the only reason that social media has become a powerful form of marketing for small businesses; it has everything to do with the fact that its two-way communication facilitates critical customer relationship building that leads to loyalty, and referrals. Instead of just delivering an email and telling them your message, think about ways you can get them involved, and invite them to share opinions on the topic of conversation to other social media channels like Facebook, Twitter, Pinterest or Instagram.
Say less, show more. You may have a lot you want to tell your audience—but consider using more white space, and fewer words. Additionally, using color to communicate a mood, and the desired call to action, can be an emotionally impactful way to reach readers through email. If your promoting a new line of product that involves exotic or exclusive ingredients, for example, enhance design elements in your email with purple to evoke such a mood. If the email message is practical in nature, such as apologizing for a customer service snafu or announcing a change in prices or policy, stick to grays, blues, and browns to communicate intellect and stability. If you want customers to buy, integrating yellow and orange hues into email design communicates a carefree and airy mood.
Take advantage of professional tools. The key to effective email marketing as a small business is to have a strategy and purpose to your messages, including when you send them. Though you probably don’t want to bombard customers with emails every day, you’ll benefit by building some kind of predictability to your email releases, whether they arrive in the inbox every Sunday morning, Friday afternoon, or the first of each month. If you don’t have enough worthy content to share on a regular schedule (or the time to develop it), turn to technology! Scoop.it, a content curating publishing platform, recently announced a new functionality that works in tandem with the email marketing tool MailChimp, allowing you to create professional, magazine-worthy newsletters using a variety of content from sources you select from the web—in addition to the option to include your own proprietary posts and promotions. The best part? Both offer free basic subscriptions.

How The SBA Can Help You

noreply@blogger.com (Debbie May) — Mon, 13 May 2013 15:00:00 +0000

The Small Business Administration will celebrate its sixtieth anniversary in July. It was established as an independent agency of the federal government to help start new businesses and provide tools to help them grow. It accomplishes its mission through direct action to counsel, aid, assist and protect small business interests. It has formed partnerships with many public and private organizations, and maintains an extensive network of field offices to deliver its services throughout the United States.

The SBA has a wide array of assistance programs that focus on the four primary functions outlined below.

Business Financing

The SBA does not loan money directly, but establishes guidelines for loans with partner institutions that are guaranteed by the federal government. As a general rule, the SBA only backs such loans if a business is unable to obtain other financing on reasonable terms. Applying for an SBA loan is similar to applying for a standard commercial loan except there’s no risk to the lender. Loan requirements may change as federal priorities and fiscal policies are adjusted to deal with current economic conditions.

The SBA has a program to guarantee surety bonds for businesses that can’t get them through normal commercial channels. A surety is someone who assumes responsibility for paying the debt of another. A surety bond is a three-party agreement where the surety assures completion of a project if the contractor is unable to perform successfully. This program guarantees the surety that the SBA will cover a portion of any loss if the contract is breached. This provides an incentive to sureties to provide bonding for contractors, increasing their opportunities to win contracts. The bonds cover bid, performance and payment for contracts up to $5 million. In limited cases, the bonds may cover contracts up to $10 million.

The Small Business Investment Company (SBIC) program engages private investment companies to provide venture capital for small businesses. The SBICs have two sources of capital funding: government-licensed private investors and low-cost debt that’s guaranteed by the federal government. SBICs are limited to investing in promising small businesses that qualify based on their need for equity or debt financing.

Federal Procurement

The SBA’s government contracting office has a statutory goal of awarding 23% of federal prime contracts to small businesses. This office establishes goals with departments and agencies to achieve the overall objective of maximizing contract awards for these businesses. It also sponsors outreach programs, training, and subcontracting opportunities. The training includes detailed instructions on how to qualify for government contracts.

The SBA is heavily engaged with the Department of Defense and General Services Administration to create set-asides for small businesses in their contracts. In addition, it maintains a national small business database that federal agencies can use to search for companies offering specific products and capabilities. The Central Contractor Registry is a dynamic marketing resource for those seeking qualified small businesses.

There’s also a disadvantaged business development program to help businesses compete with non-disadvantaged small businesses on an equal basis. This program has been expanded to include minority-owned and disabled veteran-owned businesses.

Advocacy

The Office of Advocacy is an independent voice for small businesses, advancing their views and concerns to all branches of the federal government. Its operations are directed by the chief counsel who is appointed by the president. The office reviews proposed Congressional legislation and its regulatory effect on small businesses. It supplements these reviews with comprehensive research on the small business environment, using the results when testifying before federal and state governmental bodies and legislative committees.

Advocacy attorneys seek the input of small business owners and work with federal agencies to determine how to minimize the impact of new laws and regulations. They consider and analyze alternative policies and publish their findings for public comment. They also work with state policymakers to promote regulatory flexibility and cost savings for small businesses. The office publishes a quarterly report with small business performance indicators, small business profiles for all 50 states, and the Small Business Economy report.

Education & Training

The SBA counsels and advises small businesses at no charge through personal meetings and via the internet. It also offers low-cost training programs designed to assist aspiring entrepreneurs and businesses that are already up and running. Its training centers are spread throughout the U.S. in over 1,800 locations. These programs provide financial management and technical assistance that are keys to successfully operating any business.

The SBA also maintains associations with private organizations such as the Service Corps of Retired Executives, now known as SCORE. This nonprofit is dedicated to helping small businesses get started and grow through its mentorship and education programs. Its membership is comprised of 12,000 volunteers who have business experience in 62 industries across the country. Most services are provided free of charge or offered at a nominal cost. These include personal mentoring, confidential counseling, business newsletters and tools, online webinars, and workshops at 348 local chapters.

Bottom Line

The scope and breadth of SBA programs far exceed the summary contained in this article. Check sba.gov for the latest information regarding ongoing assistance programs and how you might qualify. The SBA is a valuable resource that should be an early stop for startups and entrepreneurs with ideas for new businesses. Their advice and support can help you get your business off the ground and increase your chances of success.

Geoffrey Michael (www.geoffreymichael.pro) is a freelance writer specializing in business, marketing, personal finance, law, science, aviation, sports, entertainment, travel, and political analysis. He graduated from the United States Air Force Academy and is also licensed to practice law in California and New Hampshire. Geoffrey wrote this feature article exclusively for DebbieMay.com, an organization dedicated to helping small businesses succeed.

You Want Success, So What’s Stopping You?

noreply@blogger.com (Debbie May) — Mon, 06 May 2013 15:00:00 +0000

Is it possible that your thoughts can actually prevent you from being successful? Sure it is!

Your belief system dictates how you act, what you do, and the amount of emotional risk you are willing to take. In fact, I used to believe that if I ever became “successful” my life would change in ways that felt uncomfortable and undesirable to me. And one day I realized just how limiting my subconscious beliefs had become.

While developing an exercise for one of my workshops it hit me that my image of successful people was, well, very limiting shall we say? I wasn't fully conscious of this image until then, and it sure kept me stuck! After all, who would want to turn into some form of an unapproachable, unfriendly snob? {Laughing!} Yup, that’s what I believed; subconsciously at least.

But how can a simple vision of an unappealing future keep me from success? And how did I know that it was, indeed, limiting my success? Well, I wasn't attracting enough clients, money was slipping through my fingers and I felt stuck and fearful about taking the risks associated with growing my business. Fear of unpleasant change can do funny things to a person; and I saw success as unpleasant!

So I took myself through my own process. That’s right: I walked the walk and talked the talk!

Below are some of the questions I asked myself to reveal my limiting beliefs. Before asking them of yourself, take a moment to think about where you might be stuck. Do you make excuses or procrastinate on certain things in your life or business? Do you feel uncomfortable when you imagine success in your life? Have you been spinning your wheels instead of making progress? These questions will help you to find out.

Think of one goal, desire or dream that you have not yet achieved and answer these questions:

What are the negative consequences that may occur when I achieve my desire? (You heard me right: negative consequences!)
Who will I be when I achieve this dream or goal? What will change?
What will I expect of myself once I accomplish this goal?
What will others expect of me?

Your answers may provide insights around your limiting beliefs, but that's just the beginning. How do we change these beliefs and knock down the seemingly impenetrable barrier to your success?

Sometimes the awareness alone is enough to create a break through, but as I found out in my next discovery, we need help to eliminate strong limiting beliefs. We can't always change with shear willpower because the things that keep us from moving forward are stored at the cellular level. That's right, the negative thoughts, worry, and stress can come from a level deep inside of us that we can't simply decide to change. These come from negative life experiences which are literally downloaded into our cellular memory. They become a part of who we are-- and letting go isn't always easy.

There are a few methods that address this problem; the method that I use in my life and as a coach is called The Emotional Freedom Techniques, or EFT Tapping. The success rate with EFT is very high and I find that its results are usually permanent.

Whatever method you choose, it's important that you understand that the procrastination, fear, and stress that comes from these embedded beliefs do not make us weak or inferior in any way. We all build walls around ourselves at some point in our life; it's just the way the human mind works. It's OK to reach out for help; breaking through the walls all by yourself is not easy. In fact, sometimes it's impossible.

Are you ready to create change, once and for all? Great! Hopefully the questions you’ve answered here will get you on your way. Again, once you make the decision to change, understand that you may need some “outside interference”. Coaches, therapists and successful mentors are all good resources. Try to avoid staying in the family and your circle of close friends; they love you too much to be objective.

Go ahead. Shape those limiting beliefs into positive, uplifting images of a successful future, beginning now!

What are "Good Manufacturing Practices"?

noreply@blogger.com (Debbie May) — Mon, 22 Apr 2013 15:00:00 +0000

Simply stated, “Good Manufacturing Practices” are the practices and procedures used in manufacturing that ensure a good finished product. The idea behind having, and consistently using, established practices and procedures is that you consistently end up with the same high-quality product every time, every batch, every bar or bottle.

There are industry standards that detail what good manufacturing practices entail. They are called GMP “guidelines.” In the US, there are GMP regulations for drugs, food supplements and food, but not cosmetics. Instead, the FDA has a GMP Inspection Checklist which covers what they expect in order to ensure that a cosmetic product is not adulterated or misbranded. The only official Cosmetic GMP Guidelines are those issued by the International Standards Organization as ISO 22716.

Developed over a long time with lots of experience in what could go wrong, GMP Guidelines go much further than just what you do when you are making your product. They cover everything before, during, after and surrounding the actual making of the product and set some standards on how each potential problem can be avoided. This includes how the space or facility is set up and maintained, organizational structure for overseeing and approving product manufacture, personnel training, safety and hygiene, supplier approval, ingredient specifications and approval, tracking ingredients and materials, documenting production of batches of products, quality control, records management and handling returns or problem products.

When thinking about getting in your own Good Manufacturing Practices, keep in mind that the guidelines are just that – guidelines. While there are some things that are generally the same for everyone, the details and specifics will be unique to you and your situation. You probably won’t have to deal with overhead pipes dripping into your mixing pot, but you still need to make sure your space is free of contamination.

If you make a good product, you already have many good practices in place. You work in a clean space, you measure carefully and correctly, you follow your recipe, you use good ingredients from suppliers you trust. These things that you already do while to make sure your product is at the quality level you want are the core of your good manufacturing practices.

If you want to start establishing your own official Good Manufacturing Practices, these are the four points that most handCrafter’s should start on first:

1. Good Manufacturing Practices should be written down.

Whatever you already do to ensure your product is high-quality should be in a written procedure. It’s not enough to have it in your head – it needs to be written down in a way that can be clearly understood and could be done by another person who is reasonably familiar with the processes you use.

Having your procedures in written form is not just a drill for complying with the guidelines, it’s a really good idea for several reasons. First, you don’t have to “remember” what to do every time you go to make a product, reducing the chances of errors, especially on products you don’t make often. Second, when you get to the point of having helpers or employees, you have the procedures ready to give them which will reduce training time and ensure your product quality doesn’t drop if someone else makes it for you.

2. Assign and track lot numbers for all ingredients and materials used in the product and packaging.

Whenever you receive an ingredient or packaging material to be used in your product, assign it a lot number. It can be anything that will uniquely identify the EXACT order you received. Keep in mind that if you receive 4 oz. of Lavender essential oil on Monday and another 4 oz of Lavender essential oil on Friday, they are two different lots and should have different lot numbers assigned to them.

3. Keep a written record of each batch you make.

Called a “Batch Record,” this is a written document of exactly what you did when you made the batch. You can start with a copy of your recipe and initial each item as it is measured and added, note temperatures or other key things you check to make sure the batch is right. Note on the Batch Record the lot number of each ingredient or packaging material used in the batch.

4. Assign each batch a unique batch number.

Every batch of product you make should be assigned a unique batch number, so it can be easily identified. Ideally, the batch number should go on the label (per GMP guidelines) – but it is not required according to the cosmetic labeling regulations. Using the date and a letter works well (i.e. 2013-04-01-A, 2013-04-01-B, etc.).

Once you implement just these four steps, you can get your good manufacturing practices bumped up to the next level, moving you much closer to full compliance with GMP guidelines. Not only that, you will have taken some major steps toward making sure your product is of the highest quality – every batch, every bar or bottle, every time.

Shop Anytime at www.wholesalesuppliesplus.com!

Financial Planning and Analysis

noreply@blogger.com (Debbie May) — Mon, 15 Apr 2013 15:00:00 +0000

Creating a business plan is one of the first steps needed to get a new business financed and off the ground. It’s only the beginning of a continuous process of managing your money and resources.

The basics of financial planning include an annual budget and a method for measuring actual performance against the plan. It’s also helpful to plan as far into the future as possible, especially if expansion is a long-term goal.

Developing your plan

This doesn’t have to be burdensome or complicated, and many small businesses do it on an Excel spreadsheet. A spending plan provides a time-phased baseline or budget for projected expenses throughout the year. This will allow you to track your actual expenses as they come in every month.

Expenses typically fall into two categories: fixed and variable. Fixed or overhead expenses don’t change much and include office rent, insurance, depreciation, utilities, maintenance, and equipment rental. Variable or operating expenses fluctuate depending on the growth rate of your business. Included in this category are materials, supplies, salaries, commissions, advertising, travel, shipping, and taxes.

In addition, you’ll need a revenue forecast based on your estimated product sales. It’s the total price of goods and services that you expect to sell. Spread the sales by month, allowing for changes in demand due to holidays and other events that affect your particular business.

Existing businesses have the advantage of historical data to use for forecasting future expenses and sales. New businesses must rely on experience and judgment to come up with the best estimates possible.

Measuring actual performance

Planning is important, but it’s equally important to track performance against the plan. This allows you to make changes in real time to correct problems before they escalate, or avoid them altogether.

Prepare a spreadsheet that compares your monthly expense plan to your actual expenses. The difference between the two is commonly called a variance. Do the same comparison between your sales forecast and actual sales. Determine why and how the variances occurred. Analysis of your financial data will help answer questions like these:

• Do I need to improve the way I develop my plan?

• Should I hire someone to help me, either as an employee or contract labor?

• Do I need more work space, and can I afford it?

• Is additional equipment needed to achieve sales goals?

• Am I managing inventory efficiently?

• Should more or less money be spent on marketing and advertising?

• Are there ways to cut expenses without hurting sales?

• Am I doing the right things to make a reasonable profit?

• What’s my break even point?

• What’s my return on investment?

• Are my prices optimized for the highest possible sales and profits?

• What is my cash flow and how can I improve it?

• Are new investments needed to sustain and grow the business?

• How should next year’s goals be modified based on this year’s results?

• Should I consider changes to my business model?

• Do I need more financing to make my business succeed, and can I afford it?

The keys to successful implementation of this strategy are discipline and attention to detail. While this does take some time, the rewards are high. Most problems end up costing money, so catching them early will give you time to come up with work-arounds to minimize the impact.

Analyzing your financial performance is a critical aspect of running your business. It minimizes risk because you’ll have warning signals when things aren’t going as planned. You’ll be able to adapt to changing economic conditions that affect consumer demand. You’ll be alerted when your financial goals aren’t being met, and the sales level needed to meet your targets.

Tools

There are tools available for every business to make this process as painless as possible, and some of them are free and simple to use. Their mention does not constitute an endorsement by the author or publisher of this article. Don’t limit yourself to what you see here. Do your own research to find the tools that are most compatible with your specific business and how you like to operate.

The Rolling Business Budget and Forecast is available from Microsoft Office (http://office.microsoft.com/en-us/templates/rolling-business-budget-and-forecast-TC001158956.aspx). Microsoft offers many other templates to help you organize and run your business effectively. More sophisticated financial software is available from Microsoft Dynamics (http://www.microsoft.com/en-us/dynamics/erp-small-midsize-business.aspx). Centage offers several tools for financial forecasting, budgeting, planning, and financial reporting (http://centage.com/Products/Products-Overview.asp).

One useful tool is the ability to make charts or graphs depicting your financial data. You can create charts in Excel that will automatically pull data from spreadsheets. Graphs are invaluable for analyzing current trends and extrapolating future performance.

Many small businesses can operate effectively with free templates available online. If you decide to buy your own software, most offer a free trial. Give it a test run to see if the features are a good fit for your business.

Bottom Line

All the plans in the world won’t do you any good if you don’t actively measure your performance against them. Sometimes you’ll find that your plan was inadequate or was based on bad assumptions. Use that experience to improve the plan the next time it’s updated.

Measuring performance will help install financial discipline, effectively allocate resources, improve inventory control, reduce expenses, avoid problems, and identify ways to increase sales. This is critical for small businesses because they don’t have the financial firepower to withstand big problems that go unsolved for very long. Routine analysis of your financial data gives you the heads-up you need to stay on course and helps you focus on doing the right things to be successful.

Thinking Without A Box

noreply@blogger.com (Debbie May) — Tue, 02 Apr 2013 15:54:00 +0000

When entrepreneurs talk about chasing the dream, we are not talking about a fantasy, like winning the lottery. We are talking about the things that really matter to us and what we are willing to do to make our dream a reality. But it’s one thing to have an idea that you’re really passionate about, and another to have a concept that’s also practical, strategic and profitable.

I once spoke with Marcia Wieder, who is known as America’s Dream Coach and has been the catalyst for turning dreams into reality for thousands of people over the past 20 years. “The ideal professional dream is to be paid well for doing what you love,” Marcia told me. “I think that sometimes people forget that we need to marry the two ideals, passion and strategy, to achieve success.”

But for entrepreneurs who aren’t bringing home the paycheck of their dreams it’s often difficult to come up with the new idea and strategy that will change your plight. Therefore, most people either give up on their dreams or compromise them down to what they think is realistically possible and neither creates a desirable outcome. The alternative is to gain clarity on what we really want and explore other ways to make the dream a reality. That often means shifting gears a bit, or as I like to say, thinking without a box!

If what you are doing isn’t working, then it’s definitely time to shift those gears! Too many entrepreneurs live a life of struggle, especially solopreneurs and micro-business owners. Here are a few indications that it’s time to get out of the box and realize that you have a whole world of choices before you. Keep in mind that these vary depending on the size and type of your business.

You can’t pay yourself well for what you do—worse yet, you continue to pour money into your business with little or no return
You no longer enjoy what you do
There is not a market-need, or it has shifted significantly
There is a constant imbalance between work and your personal life

So how do you figure it out? That question is usually best answered by engaging with mentors, coaches, peers, or your board of advisors. (Yes, even solopreneurs get to have a board of advisors!) You see, it’s really difficult to remove yourself from your beliefs, preconceived notions, and way of thinking in general. Brainstorming with someone who isn’t involved in, or doesn’t even know, your business helps you to see it from another perspective. It’s a pretty remarkable experience if you open your mind to the possibilities.

The trick? Just like any brainstorming session, there are no bad ideas. Get everything down on paper or a mind map and narrow it down later. Enjoy the process and remove the boundaries!

I often suggest to coaching clients that they get away for a weekend, or a whole week if necessary, to explore their new ideas. Doesn’t that sound decadent? It will be just you and your ideas; alone with a pad of giant-sized sticky note paper, markers and your imagination. And it works! All you really need is one new idea. Sure, that one idea may feel overwhelming, but continue to work away from your normal environment and with your champions to create the strategy to take it to the next level.

American’s Dream Coaches advice? “Extraordinary things happen when we take action on what matters to us the most. Do what you love, value your gifts, charge what you are worth, have powerful enrollment conversations – and repeat often!”

Labeling: Color Additives

noreply@blogger.com (Debbie May) — Mon, 25 Mar 2013 15:00:00 +0000

You’ve probably noticed that most cosmetics and soap bases are a pretty neutral white or cream color. Generally there are two types of ingredients that can change the color of your product: an ingredient that happens to change the color or a color additive. It’s very important to understand the difference between these two things, for both product labeling and regulatory compliance.

A Little History

The first synthetic organic dye (mauve) was discovered in 1856. By 1900, artificially-colored foods proliferated in the marketplace. In some cases, dyes were toxic or poisonous, or they were used to hide inferior or defective foods (such as “strawberry jam” that contained red dye and flavoring – but no strawberries). In 1906, Congress stepped in with the first version of the Food and Drugs Act which limited certain uses of color additives and the USDA was given enforcement authority.

In 1927, the FDA was given the responsibility for enforcing the 1906 Food and Drugs Act and by 1931 there were 15 colors listed as approved for use in food. The Federal Food, Drug and Cosmetic Act of 1938 increased the scope and authority of the FDA. Amongst other things, it required certifcation of certain color additives and included regulation of cosmetics and medical devices.

A 1958 Halloweeen health scare where many children got sick eating an orange candy containing FD&C Orange #11 brought about the Color Additive Amendments of 1960, which resulted in the FDA reviewing over 200 color additives then in use (of those, about half were subsequently “listed” and allowed for use). Later legislation and regulation established chemical specifications for allowed color additives and their specific uses.

An Ingredient That Happens To Change The Color

An ingredient that happens to change the color is one that is included in the product for a purpose other than coloring the product, but has a “side-effect” of changing the product’s final color. Herbs or extracts often change the finished product color, as do some essential or fragrance oils.

In the ingredient declaration for the product, an ingredient that happens to change the color is included with all other ingredients in descending order of predominance.

Color Additives

Color additives, on the other hand, are ingredients that are specifically added to change the color of the product. The FDA maintains two lists of approved color additives: those that must be certified by the FDA and those that are exempt from the certification process. In order to sell a “Certified” color additive, the manufacturer of the color additive must have each batch certified by the FDA as meeting the required specifications. Certified colors are recognizable by their names, which start with “FD&C” or “D&C” followed by the color name and number. Colors that don’t have to be certified are generally plant or mineral based.

The FDA color additives lists[1] include the name of the color additive, whether it can be used in the eye area, if it can be used “generally”, whether it is for “external use only”, and if there are any specific limitations. For example, mica and titanium dioxide are approved for use in the eye area, for general use (including lipstick) and for external use, while ultramarines can be used around the eyes or externally, but they are not approved for general use (including lipstick). [Note: “external use” means it is “applied only to external parts of the body and not to the lips or any body surface covered by mucous membranes”.]

In order to be used in a cosmetic, a color additive must:

· be approved by the FDA for use in cosmetics; AND

· ONLY be used in products for which is has been approved; AND

· be listed in the ingredient declaration by the approved name.

The Product Ingredient Declaration

As noted above, ingredients which happen to change the color of a product and are included in the product for some purpose other than coloring, should be listed in the general ingredient declaration. If they are included at less than 1%, they can be listed in any order after ingredients at 1% or more.

Color additives have an alternative way of being included in the ingredient declaration. While they may be listed in the same manner as other ingredients (in descending order of predominance or, if less than 1%, listed in any order following the ingredients at 1% or more), color additives MAY be listed at the end of the ingredient declaration after all other ingredients, regardless of the amount used.

[1] http://www.fda.gov/Cosmetics/GuidanceComplianceRegulatoryInformation/
VoluntaryCosmeticsRegistrationProgramVCRP/OnlineRegistration/ucm109084.htm

Creating a Great Business Plan

noreply@blogger.com (Debbie May) — Mon, 18 Mar 2013 15:00:00 +0000

Starting a business without a solid plan is very risky, and most banks won’t give you a loan without first seeing your plan. Think of it as a detailed roadmap for establishing and executing your business. While banks are interested in your service or product and how you plan to sell it, it all comes down to your ability to manage the money they loan you. They want concrete evidence that you’ve thought everything through before committing their money. A good business plan doesn’t have to be complicated, but it has to be thorough.

In today’s economy, a sound business plan is more critical than ever. You need to understand the marketplace and be able to differentiate your business from the competition. This article addresses the most common elements to incorporate into your plan.

Summary

This section provides a top-level snapshot of the business and is designed to grab the reader’s attention. It includes basic information such as the business formation date, description of products or services, key personnel, number of employees, location, mission, and reasons it will be successful.

The financial information will depend on the stage of your business. An established business has historical financial data to rely on, including actual growth over time, sales, profits, and market share. It’s very effective to portray such data in graph format. A startup relies on projections of future performance, but those projections should be based on realistic, defendable assumptions. Growth prospects are important for all businesses since investors focus heavily on their potential return on investment.

Outline your goals and plans for where you want to take your company in the future. Make it concise, informative, and attractive to the widest audience possible.

Description

Explain the nature of your business, describing all the critical elements that make your business unique and contribute to your success. List and evaluate your primary and secondary target markets, and how your products or services satisfy the needs presented by those markets.

Identify the specific types of businesses or consumers you intend to serve, and what gives you a competitive advantage. Examples are premier location, efficiency and productivity, top-notch employees, superior products or services, guarantees, and dedication to delivering the best value to your customers.

Management

If you’re a sole proprietor, this section is easy. Identify the form of ownership and your personal background and education. If you have employees, describe the organizational structure and the role and qualifications of each employee. Explain the salary and benefits packages, as well as promotional opportunities. If you use contract labor or outside advisers, explain their roles and pay structures.

The ownership information should include the names of all owners, type and amount of equity stake, level of involvement with the company, background and experience, track record, notable achievements, primary responsibilities, compensation, years with the company, unique skills, and how they contribute to the overall success.

Products/Services

Describe what your company does in detail, with emphasis on how your products or services benefit your target customer base. Discuss research activities, any new products that may be in development, and how you plan to stay ahead of the competition. Explain product lifecycles and what it takes to get them from ideas to marketable products.

List any intellectual property, trade secrets, trademarks, copyrights, and patents (whether granted or in the approval pipeline). Explain any legal agreements that you have such as sole-source provider, non-compete agreements, and nondisclosure agreements.

Marketing

This section consists of market analyses and the strategies you’ll use to capitalize on the markets you’ve identified as being the most lucrative. Include statistical data that show market size, historical growth rates, current market trends, competitive landscape, target customer demographics, purchasing trends, forecasted growth, projected market share, and pricing structure.

Your competitive analysis is a realistic assessment of your strengths and weaknesses versus the competition. It includes barriers to entry, windows of opportunity within the market, technology hurdles, regulatory restrictions, available employee pool, and the relative importance of your chosen markets to your competitors.

Based on your market analysis, identify the management and sales strategies to maximize growth and profits. This includes approaches for reaching target customers through effective communications and public relations, utilizing social media, advertising campaigns and promotions, creating an online presence, and market penetration tactics. Include any plans for acquisitions to expand your market share. Your efforts should be focused on driving sales and building customer loyalty.

Your sales strategy incorporates the marketing efforts already in place. Outline the methods you’ll use to distribute and get your products to market such as retail stores, catalog, website, or personal sales force.

Financial

This may the most important section and where you’ll spend the most time in preparation. If you have an ongoing business, you’ll provide up to five years of balance sheets, cash flow data, and income statements. If you’re seeking a loan, you’ll include a list of assets and potential collateral. In addition, you’ll include financial projections for at least the next five years, to include sales, profit margins, capital expenditures, operating income and expenses, and cash flow. Include all key assumptions for the estimates provided.

State the specific amount and timeframe of the financing you need, and make sure it’s fully supported by the financial projections you’ve compiled. If the funding is spread over time, provide a quarterly estimate summarized by year. Explain exactly what the money will be used for and why it’s necessary. If there are potential impediments to your repayment of a loan, disclose those upfront. The bank will perform an independent risk assessment anyway, so don’t hide information that they’re likely to find out on their own.

Appendix

Use the appendix to include any other information you believe is important and relevant. Keep it separate so you can provide it only to those who have a need to know. It could include a variety of documents such as reference letters, key contracts, leases, credit history, photographs, resumes, licenses, magazine articles, and legal documents. Keep a record of who receives your business plan and the appendix.

Bottom Line

A business plan is essential to your success. Most small business failures are caused by insufficient capital, and a good plan is a key ingredient to securing adequate financing early on. More than that, it’s a roadmap you can use to keep things on course when the going gets rough. It’s not cast in stone, and should be updated as the consumers, products, and economic conditions change. Always look 3-5 years into the future and plan your resources and expenses accordingly.

This article only scratches the surface of what’s required to put together a standout business plan. If you don’t have the expertise to prepare it yourself, hire someone who does. There are experts available who do this for a living and they know exactly what banks and investors want to see. A professional business plan will pay for itself many times over in the long run.

How a Handwritten Note Can Get Your Business Noticed

noreply@blogger.com (Debbie May) — Mon, 11 Mar 2013 15:00:00 +0000

Social media has become a go-to marketing tactic for businesses to reach a broad audience, and develop dialogue with them. In this years Super Bowl, for example, #Hashtags were used by more than half of advertisers to generate audience response to commercials on Twitter. In October 2012, comScore data revealed that Pinterest had cracked the list of the Top 50 websites in the U.S., attracting more than 25 million visitors a month. However, that also means there is a staggering amount of marketing clutter. To get your small business noticed, you need to be a different, and returning to “old school” handwritten notes can be the secret to standing out. Author, columnist and corporate trainer Cindy Zimmermann says the simple (and dying) art form of the handwritten note has gotten her into the White House, and in touch with icons like Michael Jordan. Zimmermann, the founder of Writing in Style, offers these tips to craft a handwritten note that conveys professionalism, and gets your business noticed.

1. Begin a habitual routine. Writing simple thank you notes doesn’t have to be a time consuming business task, but you must carve out a time each day to do it, to make it a habit you’ll stick to. Stock up on postage so you have no excuses not to drop your letters in the mail right away, and find a comfortable, uncluttered place to write. Zimmermann says the little things matter when it comes to handwritten communication: Invest in a quality pen you love to write with, and find heavy stock stationary that you’re proud to send. Aim to write just two or three notes, at the close of each business day.

2. Write from your heart. Who you write to doesn’t have to be supported by a business strategy; simply consider those who made an impact on your day, whether it was a particularly helpful executive assistant for one of your vendors, or a customer or local business person who graciously referred you to others. Because handwritten notes are so unexpected, they’re generally not thrown in the garbage, and their meaning resonates to the recipient—provided it’s from your heart. Instead of stating simply “what” inspired the note, expand into the “why.” Sincerely expressing thanks to a person can be among the most impactful long-term business moves you make.

3. Get to the point. Though handwritten notes add a personal touch, they’re still a form business communication when sent on behalf of your brand. The image you portray in your note with spelling, clarity, and overall appearance represents your brand just as much as your product, service, or logo. Before you start writing, briefly outline what you want to say--and the most concise way to express your thought. Start with “Dear” followed by the person’s first name (and always confirm that you have the correct spelling). Briefly remind the person of your interaction, and then, get to the point. Zimmermann adds that people love to see their name; insert it into the note’s contents where it makes sense. End the letter with “Sincerely,” or “Best Wishes,” and sign your full name, with your business name written underneath.

4. Be unique. Clever additions to your note can create lasting memories about you and your business. If you sell perfumed soaps for example, scented stationary can make an impact that supports your brand personality. Zimmermann includes a sprig of fresh rosemary from her garden in her letters. Other simple “add-ons” might include a unique stamp that seals the envelope, or even, interesting postage.

Stephanie Taylor Christensen is a former financial services marketer turned stay at home working mom, yoga instructor and freelance writer covering personal finance, small business,consumer issues, work-life balance and health/wellness topics for ForbesWoman, Minyanville , SheKnows , Mint , Intuit Small Business, Investopedia and several other online properties. She is also the founder of Wellness On Less and Om for Mom prenatal yoga. Stephanie wrote this feature article exclusively for Debbie May.com (www.DebbieMay.com), an organization dedicated to helping small businesses succeed.

What is Your Money Story?

noreply@blogger.com (Debbie May) — Mon, 04 Mar 2013 16:00:00 +0000

Do you resent “rich people”? You may be surprised to know that could be the reason that your business isn’t flourishing and profitable.

I recently had the honor of interviewing one of America’s leading entrepreneurs on Million Dollar Mindset Radio. Larry Broughton grew up in a rural mining town, joined U.S. Army’s elite Special Forces (commonly known as the Green Berets), and spent eight years jumping out of airplanes, engaging in military conflicts and working hard to maintain peak condition 365 days a year.

Since then Larry has become a serial entrepreneur, advisor, and author. He has been named Ernst & Young’s prestigious Entrepreneur of the Year, and made Entrepreneur Magazine’s Hot 500 List of the country’s fastest growing companies. One of Broughton’s companies, BROUGHTON Advisory, boasts clients from entrepreneurial start-ups to Turner Broadcasting and The Pentagon.

Whew! Sounds like a pretty tough guy, doesn’t he? And in many ways he is. I would describe Larry as disciplined, focused, creative, and spiritual. Yes, spiritual. It may surprise some people to know that this former Green Beret spends time each day in solitude; meditating, reciting affirmations, and visualizing the future that he most desires. He also dedicated many hours to his humanitarian efforts and to mentoring promising entrepreneurs. When Larry Broughton leaves his home each day he takes more out the door than his ego.

This certainly defies the common misconception that highly successful and wealthy business people are self-absorbed and would go to any lengths to get what they want. This stereotype does not include kindness, thoughtfulness, or generosity. Yet, Larry Broughton is all of these things. In fact, of all of the top-flight entrepreneurs who I have interviewed I can only think of a handful who actually fit into the former stereotype.

So why do so many people equate success and wealth with greed and ego? It’s usually not from first-hand experience that we make those judgments, but from a negative portrait that has been crafted throughout our entire life. From the images seeded by our well-meaning parents or other influencers to the stereotyping that we see in reality television, the idea of wealth has become warped and negative for many.

So what does this negative perception cost those who possess it? The cost is high; very high. As long as an individual holds on to resentment and negativity about those who are wealthy and successful they are not likely to achieve success themselves. Instead they tend to get stuck in a life of unhappiness, negative thinking, lack, disappointment and even anger.

What is your money story? Do you see wealth in a negative light? Do you see “rich” people as arrogant snobs? If so, take notice of how you feel when you step into these belief systems. Do you feel good, or do you feel bad? Does your body tense; your shoulders sag? Do you clench your jaw or feel emotions like anger or resentment?

Now I ask you: How can you attract something into your own life that you view as so ugly in another’s life?

Remember, your subconscious is a clever little rascal. It knows that you don’t approve of wealth; therefore it will do anything within its power to push it away. This is better known as self-sabotage.

So how do you rid of these negative impressions? There are so many ways. The Emotional Freedom Techniques are powerful in getting to the bottom of your beliefs to reduce or eliminate them altogether. Affirmations, visualization and meditation are practices that can easily be embraced on a daily basis. Too many people claim that they don’t have the time to do these things, but that’s not really true. Larry Broughton spends only 14-minutes a day in his routine and look how well it’s worked for him.

Here’s a little process that should get you on your way without taking a huge chunk of time out of your day:

As soon as you awake in the morning think about three things that you are truly grateful for. Spend a minute or two in the energy of gratitude, feel the positive effects of that energy.
While you are in the shower or blow drying your hair recite several empowering affirmations. I keep affirmation cards in a lovely frame on my bathroom wall to make it easy.
Before you begin your day spend about 3-5 minutes in a quiet place. Imagine yourself paying your bills with ease, joy and even gratitude. Feel freedom from your financial burdens and allow feelings of success to take over. Even if you don’t typically view yourself as successful, allow confidence to seep in. Bask in the pleasure of success and prosperity. These few minutes will change your energy and send positive signals to your subconscious mind. This will help to retrain your subconscious to allow opportunities for wealth into your life.

Repeat before bedtime. You will sleep like a baby and soon you will see signs of change. Let me know how it goes!

Stay In Compliance: Understanding the FDA’s Soap Exemption

noreply@blogger.com (Debbie May) — Mon, 25 Feb 2013 16:00:00 +0000

Did you know that not all soap is exempt from FDA regulation as a cosmetic? The FDA Cosmetic exemption for soap is very, very specific and it is much more than just naming a bar of soap “soap”.

The FDA states that a product meets the Soap Exemption ONLY when:

The bulk of the nonvolatile matter in the product consists of an alkali salt of fatty acids and the product’s detergent properties are due to the alkali-fatty acid compounds.
The product is labeled, sold, and represented solely as soap.

In simpler terms, this means:

The soap part of the formula is produced by mixing oils and lye water
The soap has no added detergents or foam boosters
The soap is labeled and sold only as soap, making no other claims such as “moisturizing”

If your soap meets this exemption, it does not give you a free pass to ignore ingredient safety and manufacturing best practices. It means that the Consumer Products Safety Commission (CPSC) instead of the FDA regulates your soap. The CPSC expects the all products, including soap, to be safe for consumer use.

The CPSC expect that you need to either test your products for consumer safety or know your ingredients/formula well enough to ensure a safe consumer product. A common area of error is “soap safe only” color additives. These are often non-toxic ink dyes. “Non-toxic” sounds safe so you may assume they are indeed safe for use in soap. The problem comes in when there is a consumer allergy or injury. The CPSC will utilize the manufacturer’s recommendation for use, which is typically plastics and ink dye applications. They will clearly use the FDA’s studies that state the color is not skin safe for cosmetics. If there is an investigation, the CPSC will likely find that you have failed to provide a safe consumer product. This can then result in recalls, fines, brand damage and public embarrassment. It is even possible that your insurance carrier will not cover the consumer injury claim because you knowingly used an additive not approved for skin contact.

For further information on FDA Cosmetic Regulations and the soap exemption, here is a short video:

Debbie May entered the handmade soap and cosmetic industry over 18 years ago. Her determination, drive, and passion for handmade soap have guided her career from creative artisan to accomplished CEO of Wholesale Supplies Plus, a leading supplier of quality ingredients to the handmade industry. Debbie is well respected throughout the United States for her knowledge of formulation composition, good manufacturing practices, consumer trends, and handmade small business needs.

Jumpstart Our Business Startups (JOBS) Act

noreply@blogger.com (Debbie May) — Mon, 18 Feb 2013 16:00:00 +0000

The JOBS act signed into law in April 2012 is designed to enable businesses to raise startup and operating capital. It reduces the burden of certain securities regulations to promote equity “crowdfunding” as a viable funding source.

Overview

While the concept of crowdfunding isn’t new, the Internet has greatly expanded the capability of entrepreneurs to exploit it. Crowdfunding is broadly defined as funding a venture by raising relatively small amounts of money from a large number of non-accredited investors. Entrepreneurs that found it difficult or impossible to raise venture capital or obtain loan financing now have a direct link to the general public as potential investors.

This act relaxes the restrictions normally associated with public equity offerings. Some of the platforms now available or preparing to enter the market to capture investors are: Kickstarter, Fundable, Crowdfunder, EarlyShares, Indiegogo, SeedInvest, GetFunded, WeFunder, RelayFund, GreenUnite, New Jelly, CircleUp, Appsfunder, and RocketHub. By using these platforms to attract investors, the door will be open to any business to accept money from family, friends, work acquaintances, as well as complete strangers. In exchange for their money, investors will receive an equity position in the company.

Preparation

The general approach to launching a crowdfunding campaign starts with the creation of an online company profile. This includes an introduction to the company and its management, the products or services it will provide, appropriate images, and a first-class video that projects a compelling message to potential investors. It’s worth the investment to have the video produced by someone who does this for a living.

A formal business plan projects a professional image that will likely attract more investors. A crucial part of this is market research that makes a strong case why the average person should invest with you. Think like a public relations expert and put together a marketing pitch that will drive your message home.

Attracting InvestorsThe next step is to publicize the profile to the widest audience possible, especially target demographics that might support your project. This is accomplished through traditional media outlets, email lists, professional contacts, and showcasing through social media. Ask your friends and family to help pass the word to their contacts and acquaintances. The key is creating a network that generates buzz and publicity that will spread as enthusiasm and momentum build for your product.

Getting people to part with their money isn’t easy, especially if they’ve never heard of you before. Having an outstanding profile and marketing presentation will go a long way toward convincing investors to take an interest. Beyond that, you should try to connect with them on a psychological level. Give your business a purpose that investors can relate to and believe in, and appeal to all their senses when conducting your marketing campaign.

Once your campaign gains some traction, it will feed on itself. Do it right, and people will come out of the woodwork to help you succeed. Your success eventually becomes their success.

Provisions

The provisions of this act are somewhat complex, especially if you’re not familiar with Securities and Exchange Commission (SEC) regulations. The highlights are summarized below, but you may need the assistance of a financial advisor or attorney to understand and comply with the detailed rules and requirements. This article is intended as only a starting point for you to take advantage of the act’s potential benefits.

Small business owners should not be intimidated by the dollar thresholds included in these provisions. They are upper bounds, meaning any smaller business is eligible to use the crowdfunding vehicle to raise needed funding.

You can raise money by selling shares of your company through the crowdfunding process. This process was previously restricted to business owners and artists who accepted relatively small amounts of money in exchange for rewards of nominal value (such as CDs or copies of artwork). Another significant change is that investors don’t have to be accredited, which means they don’t have to meet the standards of a traditional venture capital firm. There are limits to annual investments based on net worth and income.

You can now use advertising to attract investors to a private stock offering. Such solicitations were previously banned by an SEC regulation. Sales are limited to qualifying investors.

You can raise a lot more money, with the capital threshold now raised from $5 million to $50 million per one year period. Amounts above that require SEC registration.

Under current regulations, any company with assets exceeding $10 million and more than 500 investors must register their stock with the SEC. With the new law, the threshold is raised to 2,000 investors or 500 non-accredited investors. Investors that acquire equity under the new crowdfunding provision are excluded from this limit. This opens the door to more extensive fundraising without having to become a public company.

Emerging growth companies with annual revenues less than $1 billion will get temporary relief from some SEC public offering regulations and certain reporting requirements. This will make it easier and faster to raise capital.

The act extends the compliance periods for certain requirements originating from the Sarbanes-Oxley Act, from two years to five years.

Community banks don’t have to register with the SEC unless they have at least 2,000 investors and $10 billion in assets. This is good news for businesses seeking financing since community banks are often a primary source of small business loans.

Summary

Before the passage of this act, less than 1% of small businesses in the U.S. received angel investments. If they couldn’t get a loan, they were out of luck and on their own. The JOBS Act creates portals for investment by people who have been shut out in the past.

Crowdfunding will help new entrepreneurs kick start their businesses and inject more capital into the struggling economy. If you own a company and have had difficulty obtaining financing, this may be an option to be seriously considered.

Craft the Perfect Elevator Pitch

noreply@blogger.com (Debbie May) — Mon, 11 Feb 2013 16:00:00 +0000

Do you find yourself struggling to tell others what makes your business so great, in a way that is succinct and clear? Perhaps you’ve left a networking function, luncheon, or even a social event wishing you had been able to find the words that could have helped formed a new business connection. If so, it’s time to work on your elevator pitch! Though this sales tactic has been around for decades, it’s still an effective business tool worth perfecting: In less than a minute, it arms you with a go-to tool that tells people what makes your business unique --and more importantly, makes them want to know more.

Here’s how to do it.

Identify your mission statement.If you’ve ever written a formal business plan, you’ve probably developed a mission statement, which is a short snippet, no more than a few sentences long, that describes what your company does, and what it’s all about. But the vision you had before opening your business probably differs from some of the realities you learned firsthand—about your own product, industry, and the overall marketplace. If you’ve already written a mission statement, consider in what ways it has evolved or changed. If you’ve never written one, start by asking yourself the following: Why am I in this business? Who is my customer? Why do they buy from me? What image do I want to project? Write honest answers to these questions, as briefly as possible. This will serve as the driving foundation to your elevator pitch.

Spice up your statements.Your mission statement helps you identify the key points you want to convey in an elevator pitch, but, by nature, it’s cut and dry, and won’t serve as a natural conversation starter. Think about creative language that can inject into your mission statement to would add life to a conversation. When describing your customer base, are there colorful adjectives, or maybe a celebrity comparison you could use to paint a picture in the listeners mind? Likewise, if your product is easier to understand visually than verbally, try to “ground” the listener with familiar comparisons.

Make it about the listener. Because an effective elevator pitch is less than a minute long, it needs to be an attention grabber. The best way to interest a person? Talk about them! Chris Westfall, author of The NEW Elevator Pitch says the secret to a pitch that is both effective and memorable is striking a personal chord in the listener. Consider the elevator pitches of politicians: Most have impressive education and professional backgrounds, but they rarely tout those accomplishments. Instead, their focus is what they’ll do for the listener. Your elevator pitch is no different. Form a succinct way to describe yourself professionally and personally, but consider unexpected twists that will interest the listener, and ideally, stimulate additional conversation. Once you’ve delivered your pitch, ask them an open-ended question (that can’t be answered “yes” or “no”), and let the conversation unfold.

Stephanie Taylor Christensen is a former financial services marketer turned stay at home working mom, yoga instructor and freelance writer covering personal finance, small business,consumer issues, work-life balance and health/wellness topics for ForbesWoman, Minyanville , SheKnows , Mint , Intuit Small Business, Investopedia and several other online properties. She is also the founder of Wellness On Less and Om for Mom prenatal yoga. Stephanie wrote this feature article exclusively for Debbie May.com (www.DebbieMay.com), an organization dedicated to helping small businesses succeed.

Are YOU Your Top Priority?

noreply@blogger.com (Debbie May) — Mon, 04 Feb 2013 16:00:00 +0000

This morning I am working at a local coffee house: my office away from home. Sitting across from me are four men enjoying a conversation about their priorities, their faith, and other meaningful life matters. Any opportunity to listen to men discuss their feelings is interesting to me, so I’ll confess -- I’m eavesdropping!

One of the gentlemen posed the question, “In order of importance, what are your priorities in life?” Here’s his friend’s response. Note the order of importance:

“My wife, my kids, my parents, our home, and lastly, work.”

So where does HE fall in this list of priorities? Everyone and everything factors in, except him!

Sadly, this problem is all too familiar to me. Not only because I’ve been guilty of it myself, but because I see it in others all of the time. All too often busy people don’t include their personal needs and desires on their list of priorities. I find this particularly true for entrepreneurs. Sure, the entrepreneurial dream is a top priority, but business owners get mired in the day-to-day muck of running a business. Soon the dream fades to nothing but a list of daily demands.

When one of my clients falls into this unhealthy pattern I say, ‘Put on your oxygen mask!’ Everyone knows what the flight attendants preach: if you don’t put your oxygen mask on first you will be of no help to your children or anyone around you. What would happen to all of these “priorities” if you were no longer here? Think of it as a form of insurance; if you take good care of yourself you will experience happiness and joy in your daily life. The vitalizing energy of these qualities will lead to higher levels of productivity, greater patience, lowered stress levels and more success!

It doesn’t have to be difficult; begin with these simple steps.

Achieve awareness

Do you feel like you’re neglecting yourself, yet you tell yourself it that bad? Make a list your self-care priorities. Now note the last time you allowed each one of these priorities into your daily activities. Shocking? Maybe. But you can change your habits so don’t worry.

Make a commitment

If you have five self-care priorities that haven’t been a part of your routine for a while, put them in order from most to least beneficial. Now take your top two priorities and block out time on your schedule to do them. But don’t set yourself up to fail.

If exercise is a top priority and you’ve been out of the habit of going to the health club for some time, don’t expect an overnight change. Go to the health club just to acclimate to the environment once again. Enjoy the pool, hot tub, or sauna instead of pushing yourself into an hour-long workout.

Gradually build up to your goals.

If your neglected priority is to see more of your close friends, don’t schedule weekly outings; go for a monthly outing in the beginning. The important thing is that you have fun!

Do a review

Put a monthly reminder in your calendar to do a little review of your progress. Celebrate your successes, jot down some notes about how you feel about them. What has changed as a result? These changes don’t have to be monumental; if something simply brings more laughter into your life that’s a real achievement!

You can do it! You’ve just fallen out of practice. Take it in bite-sized chunks and enjoy being you again!

Raising Capital

noreply@blogger.com (Debbie May) — Tue, 22 Jan 2013 16:00:00 +0000

The majority of small business failures are caused by insufficient capital. This article is focused on two concepts. First, it will provide various alternatives for raising capital. Second, it will highlight steps to reduce the need for outside capital.

To raise capital, you’ll need a solid business plan that describes your business and provides complete financial information. Without such a plan, it’s virtually impossible to secure bank loans or other investors. If you lack the expertise to prepare the plan, hire someone who does. It will definitely be worth it in the long run.

Methods for raising capital

1. Personal assetsMany businesses start with a self-infusion of money because they can’t obtain outside financing. It may come from savings or selling assets such as stocks, bonds, real estate, or personal property. Another option is to refinance your house or establish a home equity line of credit. You may also be able to borrow against the cash value of a whole life insurance policy. Be aware of the risks of all of these approaches before considering them.

2. Friends and family
This is a common way to get financing but it’s loaded with risks. If your business fails, your friends and family will likely lose most or all of their investment. Are they prepared for that possibility, and are you prepared for the consequences? Since you don’t want them telling you how to run your business, you’re better off taking debt rather than giving them equity. If you go this route, disclose all the risks and have everyone sign a promissory note. Strictly follow accepted professional standards when structuring and documenting all such loans.

3. Credit cardsWe’ve all the heard the stories of millionaires who started their companies with a cash advance from their credit card. What we don’t always hear about are the thousands who have gone bankrupt by running up debts they could never repay. The finance charges on cash advances are oppressive and will grow exponentially if you only make the minimum payments. This is a high-risk approach that could easily sink your company if you can’t generate enough cash to quickly pay off the advance.

4. 401(k)If you’re still employed have an existing 401(k), you may have the option of taking a loan against it and paying yourself the principal and interest. Premature withdrawals are subject to penalties and taxation. However, it’s possible to structure a transaction whereby your 401(k) from a previous job invests in your company by buying an equity stake. If you’re willing to risk your retirement savings in your business, you’ll need professional help to set up a tax-free investment that maintains your control over the business. The team should include an attorney, accountant, valuation specialist, and brokerage firm.

5. Traditional bank loanIt pays to have an established relationship with a local bank. If you’re known and trusted, that goes a long way toward getting you money. In addition to your business plan, they’ll evaluate your character, collateral, and capacity to repay the loan. They typically offer intermediate or long-term loans with a set maturity date, fixed interest rates, and a monthly repayment schedule.

6. Small Business AdministrationAn SBA-backed loan guarantees as much as 80 percent of the principal. The loans are targeted toward small businesses that can make payments from cash flows but may not otherwise qualify for a traditional bank loan. This is usually due to a lack of collateral or the need to extend the repayment period and lower the monthly payments.
The SBA-developed Microloan program is targeted to businesses with relatively small capital requirements. It’s administered by 170 nonprofit organizations around the country which act as loan intermediaries. Business plans are not always required, and personal tax returns are often substituted for financial statements for startups.
The SBA also licenses the Small Business Investment Companies (SBIC) and Specialized Small Business Investment Companies (SSBIC). They have their own private capital and focus on entrepreneurs who have been denied the opportunity to own a business because of economic or social barriers.

7. Community Development Financial InstitutionsCDFIs make loans to businesses that are typically “unbankable” in locales needing economic development. If your company can’t meet traditional loan standards due to insufficient collateral or past credit problems, many communities have funds available to lend if you can demonstrate job creation and commitment to the community.

8. Privately-guaranteed loanThis is an option for startups that are having difficulty obtaining a traditional bank loan. It’s similar to a loan backed by the SBA except that it’s guaranteed by a private entity or individual. The loan comes from a commercial bank and the guarantee period is usually one year. At that point, the original loan is either paid off with new capital or a follow-on loan is created based on the current business fundamentals. This approach allows you to maintain control over your company without surrendering equity.

9. Royalty financingThis is an advance against expected sales of services or products in exchange for a percentage of the sales. Unlike a loan, this arrangement gives the investor a defined stake in the product. It’s most often used where the product has high margins and easily marketable demand.
There are no scheduled payments and the advance doesn’t show up as debt on your balance sheet. It’s a contingent liability that may or may not ever happen. Although you’re giving up a share of your expected profits, you still own 100% of your business.

10. Angel investorsAngel investors are individuals who invest in high-growth companies that are willing to relinquish some control and ownership. This can be expensive because these investors may want a significant share of equity to compensate for their risk. Some may also want a retainer as a management consultant. Most will also want an exit strategy that allows them to cash out their investment at some point, either through a buyout or public offering. To find prospective angel investors, contact the chamber of commerce, SBA, commercial banks, business attorneys, or your state economic development agency.

11. Online fundingThere are many websites featuring “crowd-funding” that offer two basic models for raising financing. “All or Nothing” has a defined collection time period. Once the period has expired, pledged money is only collected from contributors if the original monetary goal is met. “Keep it All” awards all money collected to the entrepreneur regardless of the goal. Many entrepreneurs are now using these approaches to raise capital from investors around the world.

Reducing capital needsKeep your capital requirements to a minimum by eliminating capital purchases as much as possible. In addition to saving you money upfront, this also limits your risk while you’re trying to build your business.
Wherever possible, lease or rent what you need. This includes workspace, equipment, tools, and vehicles. If things don’t work out, you can terminate the agreements and limit your losses. Carefully control your inventory to minimize the cost of storage and insurance.

SummaryFinancing options for large businesses include institutional venture capital, initial public offerings, asset-based loans and reverse mergers. These are time-consuming and require specialized assistance from finance professionals.
This article only scratches the surface of different approaches you might consider. Since all businesses are unique, do your own research or consult a financial advisor before committing yourself. It’s critical that you understand the risks, total cost, and tax implications of any approach you take.

Geoffrey Michael (www.geoffreymichael.pro) is a freelance writer specializing in business, marketing, personal finance, law, science, aviation, sports, entertainment, travel, and political analysis. He graduated from the United States Air Force Academy and is also licensed to practice law in California and New Hampshire. Geoffrey wrote this feature article exclusively for DebbieMay.com, an organization dedicated to helping small businesses succeed.