Top 7 Hiring Mistakes for Startups

If you don't have a staff already, one day you likely will. According to Brad Sugars of Entrepreneur Magazine, here's what you don't do when hiring people:

1. Hire someone just because you know them. This means friends, former co-workers, family members or your own children. For a husband, this means hiring your wife. For a wife, this means hiring your husband. Even part-time. There needs to be a certain sense of objectivity and accountability in the workplace. Friends and family expect to be treated to a different standard--and they should. Away from your business, but never in it.

2. Hire someone to "help them out." Some owners have loads of empathy for workers on the rebound, or people in trouble. Being a "savior" to help someone may not help your business. Instead, hire someone who can add value to the company and its operations. Those are people who are eager and willing to go the extra mile. They also won't be in trouble or looking to take advantage of what always turns into a bad situation.

3. Take someone on as a partner because you can't afford to hire him. Business can be hard enough as a sole proprietor, but don't think it's an advantage to bring on a partner, especially if you can't afford to hire him as an employee.

If you do, you give up 50 percent of your company to someone who may or may not thrive in an entrepreneurial setting. An alternative is to outsource projects or work on a fee basis. Better yet, work out an arrangement at an advisory or coaching level. Then 100 percent of your company remains yours. Plus, it's easier to walk away if something goes wrong.

4. Hire someone to do a bit of everything. A "jack of all trades" approach is fine--for the owner. But the specific functions of a business need to be staffed with people who are specialists.

Instead of hiring one person to do the accounting and administrative work, think of this as two jobs for two different people.

The reality is most people simply don't have the skills or expertise to do a variety of jobs. The key is to find people with skills that complement your own, and put those people in specific jobs with specific roles.

5. Top-down hiring vs. bottom-up hiring. This method of hiring also leads to getting people on the team who are generalists vs. someone who's the right fit for a single job.

Hiring from the bottom up means filling specific roles with specific skill sets with people who will be doing jobs that are typically lower paying but take up large amounts of time. This frees you from having to do time-consuming tasks. It also gives people an opportunity to add value and expand their roles, which ultimately helps grow the company.

6. Not knowing what job you want to hire for. Just hiring for the sake of hiring, or hiring a generalist to bring some order to your internal chaos, is not a hiring strategy--it's just more chaos.

Clearly define roles for any new hires. Not only will you avoid hiring a non-productive person in an ill-defined role, you'll start attracting people who'll add real value to their role and your operation.

7. Hire for the job you hate. Earlier I said you should hire people with complementary skills. This doesn't mean you should hire someone to avoid doing what you may do best. In short, don't hire a bookkeeper when you know how to do the numbers--especially when your top line sales may be suffering.

For the full article, visit:
www.entrepreneur.com/hiringcenter/index195252.html

Is Your Mind Fixed?

Is it your goal to one day own a 5-star hotel in downtown San Francisco on the water with a view of the Bay Bridge? Are you so stuck on that concept that you will reject other viable business opportunities that practically fall into your lap?

What would you do if the opportunity came along for you to own a 3-star hotel in a small town in Arkansas? Or a 3-star hotel in the Mojave desert? Or even a hotel in the blistering cold weather of Minnesota? Would you turn these down just because they don't fit what you originally had mind?

Many entrepreneurs would, in fact, turn it down. Their mind is fixed on a business plan with very detail-oriented specifics. "It has to be San Francisco," they would say. "And it has to be by downtown and on the water." However, like most people who have their minds fixed and put all their eggs in one basket - they will likely end up with nothing.

Never forfeit a prime opportunity just because you have something else in mind that better fits your aspirations. Reaching your business goals is about making sacrifices and building stepping stones. This may require you having to live in a less desirable area, and even pursuing a less desirable course.

Be realistic and learn quickly that your big goals will take time to reach, and you will get there by setting smaller goals. Attempting to skip to the end, will only leave you with nothing at all.

Remember how we all had to take classes that we didn't like in high school. However, after a short investment of time and energy, it all lead up to the big graduation day. Imagine trying to graduate high school without having attended any classes. You will not be successful.

Business is the same way. You have to "pay your dues" by making sacrifices. True entrepreneurs recognize this early on, and will be happy to do so. They know that, in time, they will reach their long-term goals. Until then, they also know that their passion for business will keep them motivated.

Not All Lawyers Are Good Lawyers

Most people would agree that not all doctors are good doctors. Many complain about medical doctors who don't care about their patients, and who just randomly prescribe medicine.

Likewise, not all lawyers are good lawyers either. Many will put minimal effort into your case, and are really just out to get your money. I've heard countless experiences from entrepreneurs who have been misguided by lawyers and their so-called advice.

Remember that anyone can be a lawyer. All you have to do is pass the bar test. This, however, does not ensure that the person is actually good at practicing law - let alone, an honest person.

Here are some tips from the Microsoft Small Business Center:

1) Do some legwork. Simply put, don't let your fingers do the walking when it comes to tracking down competent legal advice. Ask your lawyer for a referral. Get references and do background checks. The more time you put into your search, the better your chances of getting a competent lawyer who's also suited to your business.

2) Be comfortable. Don't sign up unless you're completely comfortable with the fee arrangement and relationship. Make sure an attorney is worth what you're spending — agree only to a fee structure that suits you. Small-business owners are often asked to sign blank checks or retainer fees. Avoid doing this if at all possible.

3) Understand what an attorney is doing for you. The last thing you want is for a legal problem to bite you later because your lawyer neglected to file the documents with the right government department -- or, just as bad, did not let you know what the documents meant. To keep your relationship running smoothly, keep a written account of all interactions that you have with your attorney.

4) Insist on a good system of communication. Insist in advance on how and how often you should communicate. If you have to wait days or weeks to hear back from your lawyer, either you didn't relate your expectations well enough, or you have a lawyer too busy to take on your business. Give some thought to finding a new one as soon as you can.

Franchise Your Way To Freedom

Opening a franchise is probably one of the most effective methods of starting a business. The start up costs are fair, and everything needed to run the business is already in place.

Many entrepreneurs want something that will give them stability, but find the research and work needed to get started is so overwhelming, that they often abandon their ventures even before they’ve started.

One valuable resource for not only finding the franchise for you, but for helping you get the preliminary information you need to begin your venture is MinorityFranchising.com. This site provides a near exhaustive list of franchises for every kind of entrepreneur.

In this vacillating economy, a franchise that has proven to be financially viable is the best bet. Finding the best investment for your money is a sure way to secure your financial future.

Start a franchise and allow those who came before you and worked hard to build the business make you successful. Step into financial freedom!

Interview With Black Social Networking Pioneer, William Moss

Social networking is one of the most popular activities online, next to emailing and blogging. It has the unique ability of allowing users to interact with others as if they were in the same room. Just how big is it? On a daily basis, an estimated 300 million people worldwide log into a social network.

African-Americans are heavy social networkers and possibly the fastest growing group in this segment. Many spend a lot of time on Myspace.com, Facebook.com and Linkedin.com - as well as the Black social networks such as BlackPlanet.com and HBCUconnect.com

William Moss, the 34-year old CEO and founder of HBCU Connect, launched the first social network for African Americans in 1999 - just a few months before BlackPlanet.com came along. To date, HBCUconnect.com is the largest online destination for Black college students and alumni.

Q: William, what is your professional background?

A: I’m a graduate of Hampton University, where I earned my Bachelors degree in software development. I’ve been programming since I was 13 years old.

Q: Where is your company based, and how big is it?

A: We are based in Columbus, Ohio with a staff of 12 people. We are located in the same building as our strategic partner Diversity City Media.

Q: Is it true that you created the first social network for African Americans?

A: Well, in the late 90’s, the only mainstream social network that anyone knew of was Classmates.com. There also was AsianAvenue.com, the only ethnic-specific one - which was launched even earlier. There were no others until we officially launched HBCUconnect.com (formerly HBCU-Central.com) in June of 1999. According to Community Connect's web site, they launched BlackPlanet.com in September of 1999.

Q: How big is HBCUconnect.com?

A: We have 1.2 million registered members with over 15-20 million page views a month. This makes us the largest online destination for Black college students and alumni, hands down.

Q: What makes you the king of Black social networking?

A: Well, I’m modest – I don’t actually go around calling myself that. However, I’ve done several speaking engagements, and during a Q&A someone labeled me “a king of social networking” after I answered a series of technical questions and related my experience.

I do feel that I’m a leader in the industry because I’ve been developing and programming social networks for nearly 10 years. I’ve done the technical work, the marketing, and I was able to reach profitability to survive the dot com burst. I understand social networks inside out; I was into this stuff before the term “social networks” was even coined. They used to just be called community-based sites.

Q: So, what are you working on now?

A: Right now, I’m building a white label social networking platform that will be the best in the business. It’s called Connect Platform (www.connectplatform.com), and for now we’re targeting Black entrepreneurs, organizations, and businesses to help them create their very revenue-generating social networks.

To prove that it works, we just recently launched several more social networks in-house.

Q: What other social networks have you launched?

A: In partnership with Diversity City Media, we’ve already launched over 15 different sites. The big ones are BlackHistory.com – an online encyclopedia and social network for African American history and culture, BlackWomenConnect.com – the first ever social network for African American women, and BlackInAmerica.com – the first ever social network for socially-conscious African Americans. All of them are growing exponentially with thousands of active members signing up daily.

We’ve also been tapped to do social networks for TV One, Real Men Cook, October Gallery, Janet Jackson, Patti Labelle, Juanita Bynum, Pepa from Salt-N-Pepa, and other bigger brands that I’m not yet at liberty to discuss.

Q: Some say that social networking is a waste of time. Is this true?

A: Absolutely not. Every social network has a purpose. Professional social networks help people advance their careers, and build client relationships for their businesses. Other niche social networks allow people with similar mindsets and interests to connect and build relationships that make life online more fun. Social networking has the same benefits that offline networking has.

Q: What's the future for social networking?

A: The future includes a smaller number of super-large social networks like Facebook and Myspace. I believe there will be a major consolidation of these. However, I also believe that there will be an ever-growing number of smaller but powerful niche social networks. Users are more attracted to networks for individuals that share the same mind frame, background, and/or interests.

Q: There's a rumor that you and Dante Lee of Diversity City Media are getting ready to launch a Black dating site. Will this be a social network too?

A: This site, which I won’t name just yet, will be unlike any other dating site on the Internet period. Not only will it be one of the few that are Black-owned, but it will also be the first to include the functionality of a social network. Look for this site to launch in late 2008.

Q: Are you in discussions with bigger companies to get bought out?

A: Yes, we are approached all the time by major Black and non-Black owned companies. However, none have been smart enough to make a quick acquisition of our technology, experience, and brands. But we're not too excited about selling now because the best is yet to come.

Q: How can people contact you for business purposes?

A: They can contact my business partner and publicist Dante Lee at 614-595-6063 or dante@diversitycity.com

Top 20 Consulting Businesses To Start

Here are some interesting snippets I took from a recent article on Entrepreneur.com:

Everyone has an untapped reservoir of knowledge. Put yours to work for you as an independent consultant by teaching your skills to others. Just how big is consulting? In 1997 alone, U.S. businesses spent just over $12 billion on consulting.

A consultant's job is to consult. Nothing more, nothing less. It's that simple. There's no magic formula or secret that makes one consultant more successful than another one. But what separates a good consultant from a bad consultant is a passion and drive for excellence. And--oh yes--a good consultant should be knowledgeable about the subject he or she is consulting in. That does make a difference.

Here are the top 20 consulting businesses thriving today:

1. Accounting: Accounting is something that every business needs, no matter how large or small. Accounting consultants can help a business with all of its financial needs.

2. Advertising: This type of consultant is normally hired by a business to develop a good strategic advertising campaign.

3. Auditing: From consultants who audit utility bills for small businesses to consultants who handle major work for telecommunications firms, auditing consultants are enjoying the fruits of their labor.

4. Business: Know how to help a business turn a profit? If you have a good business sense, then you'll do well as a business consultant. After computer consulting, people in this field are the next most sought after.

5. Business writing: Everyone knows that most businesspeople have trouble when it comes to writing a report--or even a simple memo. Enter the business writing consultant, and everyone is happy!

6. Career counseling: With more and more people finding themselves victims of a corporate downsizing, career counselors will always be in demand. Career counselors guide their clients into a profession or job that will help them be both happy and productive as an employee.

7. Communications: Communications consultants specialize in helping employees in both large and small businesses better communicate with each other, which ultimately makes the business more efficient and operate smoothly.

8. Computer consulting: From software to hardware, and everything in between, if you know computers, your biggest problem will be not having enough hours in the day to meet your clients' demands!

9. Editorial services: From producing newsletters to corporate annual reports, consultants who are experts in the editorial field will always be appreciated.

10. Executive search/headhunter firms: While this is not for everyone, there are people who enjoy finding talent for employers.

11. Gardening: In the past decade the demand for gardening consultants has blossomed (pun intended) into a $1 million-a-year business. Not only are businesses hiring gardening consultants; so are people who are too busy to take care of their gardens at home.

12. Grantsmanship: Once you learn how to write a grant proposal, you can name your price.

13. Human resources: As long as businesses have people problems (and they always will), consultants in this field will enjoy a never-ending supply of corporate clients, both large and small. (People-problem prevention programs could include teaching employees to get along with others, respect and even violence prevention in the workplace.)

14. Insurance: Everyone needs insurance, and everyone needs an insurance consultant to help them find the best plan and pricing for them.

15. Marketing: Can you help a business write a marketing plan? Or do you have ideas that you feel will help promote a business? If so, why not try your hand as a marketing consultant?

16. Payroll management: Everyone needs to get paid. By using your knowledge and expertise in payroll management, you can provide this service to many businesses, both large and small.

17. Public relations: Getting good press coverage for any organization is a real art. When an organization finds a good PR consultant, they hang on to them for life!

18. Publishing: If you're interested in the publishing field, then learn everything you can and you, too, can be a publishing consultant. A publishing consultant usually helps new ventures when they are ready to launch a new newspaper, magazine, newsletter--and even websites and electronic newsletters.

19. Taxes: With the right marketing and business plan (and a sincere interest in taxes), your career as a tax consultant can be very lucrative. A tax consultant advises businesses on the legal methods to pay the least amount of tax possible.

20. Writing services: Anything related to the written word will always be in demand. Find your specialty in the writing field, and the sky will be the limit!

For the complete article, visit:
www.entrepreneur.com/startingabusiness/businessideas/startupkits/article41384.html

Use The Time You Have

Stop viewing time as something that you will never run out of. The reality is that you will not have forever to build your company. So stop procrastinating, and use the time you have in this life to create your legacy. Learn to be an aggressive entrepreneur.

Did you know that 150,000 people worldwide die every single day? This means that last year alone 5.5 million people died from heart attacks, strokes, car accidents, household accidents, violent acts, old age - you name it. If you're reading this blog, you are a survivor. You survived yesterday, last month, and last year. Every day, you should remind yourself of this and be inspired to become more productive.

Instead of laying around watching TV, use your free time to brainstorm, research, and plan. Instead of hanging out at bars, attend relevant networking functions to connect with the right people.

Instead of playing around on Myspace and BlackPlanet, visit the professional social networks like LinkedIn and Plaxo to find yourself some valuable contacts. Instead of putting money away for vacations and cruises, save your money and invest it into your company to take it to the next level.

Recreation has its place, but right now - it's time to build on those ideas that are in the back of your head. As an entrepreneur, you want to always be pursuing your business goals. Its not something you do every now and then; its something you do during every free moment you have.

Most entrepreneurs aren't money-driven. They do want to actually make money, but that's not their motivation. Their motivation is to have an impact on the world - to do something that would've never been done, had they not been born.

If this sounds like you, then my advice is to stop fooling around. Use the valuable time you have to act on what will make you successful in business. Time goes on with or without you. Successful entrepreneurs understand this point well, and they live by it.

"If You Build It, They Will Come" - Is This True?

Most of us are familiar with the popular movie "Field of Dreams" starring Kevin Costner. The 1989 film is best known for the voices that whispered "if you build it, they will come." The statement was made to Costner's character, encouraging him to build a baseball field in his backyard in order to get dead baseball legends to come and play.

Those words were so popular that 20 years later, many use the phrase in real life to emphasize to others that you have to build on what you believe in. They tell aspiring entrepreneurs that "if you build it [your company]...they [the customers] will come".

Is this true though? Do you just build a company and expect customers to show up? Absolutely not. You have to do much more than just build a company. To get those customers, you have to actually brand and market your company.

Think of it this way: How did you find out about the products that you currently buy? 9 times out of 10 - you either saw a commercial on TV, heard it on the radio, saw it in a magazine, clipped a coupon from a newspaper, saw a banner ad, or got an email promo. You also may have heard about it via word-of-mouth from someone else who learned about it through those outlets.

The point is that you did not telepathically come to know that a certain product existed, and that you could buy it. You were marketed to, and this is exactly what you must do to promote your own services and products.

Whether you are selling a book, opening a coffee shop, or starting a lawn care business - you must understand that customers will not just automatically come to you. They don't know you exist, until you market to them. You can spend $1,000 on your web site, $200 on business cards, and $500 on equipment - and still end up with no customers.

Early on, you must factor in what your marketing strategy will be and create a budget for it. If your marketing initiatives are not realistic or just plain non-existent, I promise you - you will fail in business. If you believe (like so many do) that you will get automatic customers when you start your company, the only thing you will get is automatic failure.

I'm changing the words, right here and right now. The new saying is: "If you build it and market it, they will come."

New Social Network Allows Professional African American Women To Connect Online

BlackWomenConnect.com is a new social network that enables professional Black women to "connect" with each other online. The site, which is free to join, gives African, Caribbean and African American women the ability to create a profile, view other profiles, and interact for business, networking, empowerment, entertainment and more.

Similar to Facebook and LinkedIn, Black Women Connect (BWC) has all the user functionality of a social network and more. The site offers the latest news, blogs, and events that appeal to Black women - and allows them to add their own content. They can create and manage public and private groups, and they can view and apply for the latest job opportunities from actual companies that are hiring.

Research shows that African American women are launching successful businesses at a faster rate than any other demographic. It has also been noted that more Black women than ever are assuming professional careers as leaders and managers at large corporations, and as work-at-home moms. BWC gives all of them the ability to share their resources, and network with others to provide the first global experience of its kind.

Most remarkably, the site is 100% free to use.

To join the site, interested ones should visit:
www.BlackWomenConnect.com

Learn, Not "Burn" From Your Mistakes

We all have made bad business decisions. Some of them were quite dumb, others were just bad instincts. Maybe you lost money, wasted time, or even both. Despite this, you must recognize that making business mistakes is a natural part of building your career as an entrepreneur.

Here's the key: When you do make a business mistake, learn from it. Start by fully accepting the blame and responsibility, and not putting it on others. There are very few cases when you can place the blame on someone else other than yourself, and this is very easy to determine.

All you have to do is ask yourself: "Was there something I could have done to prevent this?" If the answer is yes, then it was your fault. If the answer is no (which it rarely is), then it wasn't your fault.

The point is that the minute you accept full responsibility, that's the same moment that you actually learn something valuable from your mistakes. As a mature adult, your brain is automatically trained to not make the same unwise decisions over and over again. However, your brain is waiting for you to admit that it was you who actually made the mistake.

Some people, however, end up "burning" from their mistakes. Instead of admitting that they were at fault, they blame other people or factors. They say things like "he screwed me over", instead of "maybe I should have looked closer at the contract." They say things like "he stole my idea", instead of "I should have better protected my idea through patents and trademarks." Or even "he didn't do what he said he would do", instead of "I should have gotten that in writing."

They "burn" from their mistakes because in the future when they face a similar scenario, they will make the same mistake again...and again and again. Why? Because their brain is telling them that last time it wasn't their fault, so there's no reason to proceed cautiously this time.

Please believe that the only way to grow in business is to learn, not "burn" from your errors. We all make bad decisions, but how we respond thereafter determines how successful you will be.