Wisdom from Melissa Joy Manning

Melissa Joy Manning

Design Sponge posted a great profile of jewelry designer Melissa Joy Manning, a graduate of Renaissance Entrepreneurship Center. She talks about why she started her own business and she shares some of her lessons learned in running a sustainable artisan jewelry enterprise.

Melissa says that it was with our help that she learned about the importance of setting well-defined goals:

“I was lucky enough to have an amazing teacher, Paul Terry, at the Renaissance Center in San Francisco, who taught me the importance of vision. He taught me to envision my success and what it would encompass. I used these goals as benchmarks when building my brand. Every time I reached one, I would sit down and create another. As the ‘visions’ kept coming true, they emboldened me to think bigger and more creatively each time.” (Thanks Melissa!)

Here is some of Melissa’s great advice for others considering a small business of their own:

Make sure it’s what you want to do.

If you really love doing something consider how it will change when it becomes a business. I meet a lot of people who loved a hobby but when they had to economize it on a daily basis, found that they lost all joy in it.

Know that your life will change

Your friendships, relationships, how you view the world…everything. When you take charge of your life by forging your own path, a lot of lessons will come forward that you didn’t consider. In some ways, it’s like a veil lifts in how you see the world. Remaining true to yourself and your passion will carry you through any unexpected reaction or loss that success may bring to you.

Always, always, always listen to your heart.

If you are true to yourself you will always succeed.

Advocating for Small Business

advocatingOn Thursday May 9th a very happy crowd gathered at the Marine’s Memorial Club in San Francisco for the Small Business Network’s Annual Awards Gala. Mayor Ed Lee was there at the start to welcome us all and emphasize his support for many new small business initiatives in the city.

I was honored to be one of the nine award winners, receiving the Small Business Advocate Award for my role as a small business owner and my involvement in the small business community for the past 30+ years. My business friend and long-term client, Kayren Hudiburgh, co-owner of The Good Life Grocery, was kind enough to introduce me and relate all the many years of our work together, both on her business and in the Potrero and Bernal Heights communities.

I got my start by owning and selling four businesses—a wholesale distribution company, two retail food businesses and a training seminar business. I then founded Paul Terry & Associates to help others start and manage their own small businesses. I see my role as an advocate—encouraging and supporting the passion and commitment of small business owners while providing tools and advice to create a sound foundation for success. I love working with business owners at every stage—teaching business planning to entrepreneurs getting ready to launch their businesses, and working with established small business clients through all stages of their business growth.

I have benefited greatly from wonderful mentors, loyal colleagues and supportive organizations and I enjoy doing everything I can to support the local small business community, particularly working with Renaissance Entrepreneurship Center and business associations such as the Potrero Dogpatch Merchants Association and the California Association for Micro Enterprise Opportunity. For me, community service and advocacy is simply a part of what it means to be a socially responsible small business owner.

Sharing Small Business Wisdom

As part of the lead-up to the eighth annual San Francisco Small Business Week (May 13-18, 2013), I was interviewed for the San Francisco Small Business Week blog.

The week is designed to offer a series of educational and networking events to educate, connect and celebrate the small business community in San Francisco. This year’s festivities will include a conference with 50 free workshops and seminars for small business owners (I’ll be speaking about business planning), a gala called Flavors of San Francisco, and an awards ceremony hosted by the Small Business Commission, the Mayor’s Office and the Board of Supervisors to recognize exceptional small businesses from each district and city-wide.

Here’s my interview with Small Business Week…


SMALL BUSINESS WISDOM FROM PAUL TERRY

Small businesses in San Francisco have a wealth of opportunities to access wisdom and technical assistance from a variety of small business experts who provide one-on-one counseling, technical assistance, and instruction through neighborhood and community-based nonprofit agencies. The San Francisco Small Business Week Committee is pleased to share wisdom from these experts who help the small businesses that shape our communities to succeed.

Today we hear from Paul Terry, business planning coordinator at Renaissance Entrepreneurship Center, who believes that one of the keys to success is making a life-long commitment to education.

What role do you play in supporting San Francisco’s small businesses?

I’ve supported small businesses for more than 25 years as an independent business consultant and owner of Paul Terry & Associates with skills that I developed from launching my own food, distribution and training businesses in San Francisco. I am also the business planning coordinator and primary instructor at the Renaissance Entrepreneurship Center. I was one of the initial developers of Renaissance Entrepreneurship Center’s entrepreneurship program, business incubator, and business support program.

The role I play in supporting small businesses involves teaching, empowering, and encouraging entrepreneurs to start and grow businesses. The training and consulting helps people build their confidence and access the resources they need to be successful in business.

As a small business consultant in private practice, I work with 25-30 businesses each year to facilitate growth and transition, to build effective partnerships, and to implement strategic planning solutions. Over the years, I’ve taught 7,500 entrepreneurs, and I’ve supported over 600 small businesses.

In your years of working with entrepreneurs, what has emerged as the greatest challenge to a small businesses success?

One of the biggest challenges relates to maintaining balance. New business owners need to recognize that their entrepreneurial skills – their ability to get the business up and running – need to be in line with the complexity of the business model. They need to hone their skills, tap into their confidence and develop the scale of business that makes sense for who they are at a particular time. New skills are then required on an ongoing basis as the business grows in size and complexity.

Another challenge facing new businesses involves joint ventures and business partnerships. If the business partners fail to clearly define the relationship at the early stages, problems quickly emerge and often create disruptive conditions as the business grows.

A third challenge for a new business occurs when the entrepreneur attempts to transition from a full-time job — working for someone else — to working in a business that is not immediately profitable. People need to be realistic about the appropriate amount of capital they need launch and grow to profitability.

The common thread – and the reason people come to me – is that they are stuck. They need a better framework for making educated decisions and they need access to the appropriate mentors, advisors and associates for advice and direction.

In your experience, what is the biggest key to long-term success for a small business?

Businesses that have been around for a long time survive and thrive because they provide very good services to established clientele with fair terms and conditions. Long-term success also requires being nimble enough to adapt to new markets, emerging trends, and new technologies.

There are macro and micro competitive forces that can undo a successful business. It is key to make a life-long commitment to education, strategic thinking, and new skills development.

What are some of the most important ways in which small businesses shape communities in San Francisco?

Small businesses define the character of our neighborhoods in San Francisco. The appropriate mix of small businesses enriches and energizes a particular area, which attracts tourism and inspires residents to shop locally. Small businesses invest in their communities by hiring locally, engaging in local politics, donating to nonprofits, building parklets and other community spaces, and doing all the critical things that make our neighborhoods more enjoyable. Small businesses are the advocates of local development and define the flavor and culture of this city – with “pop-ups”, food trucks, trunk shows and an involvement in the local areas where they live, work and play.

Transitions: A Bridge to Change

The author of Transitions completed his own transition. Dr. William Bridges died on February 17, 2013. He was a pioneer on the work of transitions and transformed the way people think about change. Through his business networks and books (Transitions and Managing Transitions), he had a huge impact on many people, including me. He gave us tools to help us understand and talk about change and he explored how people actually experience change and what they need to get through it.

In 1980 he published Transitions: Making Sense of Life’s Changes. In it he proposed that even though change is situational, transition is psychological and something that needs to be better understood, especially in our fast-paced world. He believed that people experience change in three stages: first as an ending, then as a period of confusion and distress, and finally as a new beginning. He observed that people often try to skip from the first stage to the last but he proposed we spend time in the middle step—or as he called it, “the neutral zone.”

In his obituary in The New York Times on Sunday, Jim Kouzes, the author of The Leadership Challenge, was quoted as saying that “Bill’s major contribution was to give us permission to talk about the pain and difficulty of change and acknowledge that it can be very confusing. Americans have shame around pain—success is somehow supposed to be easy. If you are struggling, it’s as if you’ve failed. Bill… said, yes, you can find real meaning in change but only if you are willing to experience the pain.”

Tom Yeomans, founder of The Concord Institute reflected that “Trust informed Bill’s process and trust is the core idea of self-reliance—trusting your instinct, what you know, your potential to be more truly yourself, trusting the process of change and moving with it.”

For me, Bill Bridges was a mentor. I met him twenty years ago at a networking group and we talked all the way down in the elevator. I told him about my work training entrepreneurs and established business owners and how they struggle with scary transitions in start-up and expansions. He wanted to know more and after two lunches together was very supportive of what I was trying to do to support small businesses. “This is very key work” he said, “so write a book on it.” I did not write a book yet I am so grateful for his support and mentorship as I developed my early consulting practice. It is so often our business friends and mentors that help us through “the neutral zone” on the way to those new beginnings.

Resolve Conflict

Being in business is challenging. You can’t be in business without running into conflict at some point… your landlord raises the rent, your largest client reduces your hours, your reliable vendor is three weeks late with inventory, your wait staff calls in sick at 5:00pm and/or your key employee gives notice. Wow! What to do?

resolve conflict

Winged Wisdom, part of Presidio Habitats, a site-based exhibition created for the Presidio of San Francisco

Perhaps the answer is to quit…start a new business or…as we all say to ourselves at one time or another, “I need to get a job!” Most of us don’t go and get a job. Sometimes we try and go through the motions of an interview and think this will resolve all the conflicts…but then realize that’s really not what we want. Working for someone else does not resolve or eliminate conflict. It is still there and now we don’t have the “power” to implement a change!

The idea is not to instigate conflict or prolong it, or try to win the argument. The process of running a business is to minimize conflicts and if a conflict arises, to face it and try to resolve it. The owner has to build the business, take care of the employees, satisfy the clients or customers, and create a balanced life for themselves.

There are solutions to the conflicts. Sometimes it is a genuine transparent management style; at other times, it is direct conversations with key employees; or it could be recognizing the error before the client or vendor sees it and suggesting a solution before there even is a conflict. (When I ran a gourmet food business, I noted right after the holidays that we did not sell all the extra inventory that we had bought. I called the vendors immediately and negotiated a 6 month payout plan…before they noticed we were late with payment and got upset with us.)

To find the right solutions we can look to supportive mentors or professionals who can listen and advise, talk things through with key employees, meditate on the right action, and then forge ahead and explore new approaches. If you run your business with integrity, honesty and transparency and confront your stumbling blocks head on, you can make it through. But if you don’t resolve a conflict…guess what comes back for you another day? So, resolve conflict!

Testing the Waters

Before you start a new business or expand into a new marketplace, it’s always essential to “test the waters”.  This means doing some simple market research. The intent is to find out as much as possible about potential customers or clients before taking the plunge and/or repeating a marketing effort!

market research

Shoe leather approach
Market research can be as simple as asking casual questions, comparing prices, walking around your neighborhood or attending a trade show. I call this “shoe leather research” even if you don’t do it by walking around. You learn by keeping your eyes open, your ears to the ground, and paying attention to what you notice.

Situational Observations
Casual and informal research can also be called situational research. Basically, it involves getting a feel for the industry, the general marketplace, and/or the specific targeted market that you think is right. The process can include informal conversations with potential customers (“I’m thinking of opening an online pet helpline. Would you use something like that?”), direct competitors (“I wonder if you could help me as I’m thinking about opening a shop like yours 50 miles away.”), and potential suppliers (“Can you tell me how much inventory you usually sell to stores that carry your line?”) Sometimes this informal style of research generates enough information to build your confidence and help you get a new business started. Other times, this approach will help an existing business to identify and carry a new product line.

Formalized Primary Research
Shoe leather and situational research can be very helpful but more formalized research may also be needed when trying to determine if your business approach is the right fit. This can include careful observation (watching, counting, recording), interviewing someone relevant to your business area (by phone, in person or online with carefully chosen questions), or preparing a survey to administer to your potential customer base (by mail, in person or online using free software like Survey Monkey).

Secondary Research
It can also be very helpful to do secondary research—getting information from trade journals, census reports and other industry references. There are online services based on Google key words or specific industry data.  This form of research is easier in a way (you just go online and ask some questions) but it isn’t always relevant and may be too general for your market. A combination of primary research (done by you to acquire original data) and secondary research are BOTH valid and need to be part of your business planning.

Making the Time
The most important factor when selecting a market research approach is to determine if you have the time to do it and if you will actually compile and use the data. Your research should help you minimize the risks related to the venture you want to undertake, so make the effort to talk to people, gather information from the industry, watch competitors and record your impressions. Testing the waters (even at the shallow end) will make your plunge into business much more successful!

In the Company of Others

A common assumption is that word-of-mouth promotion for small business means encouraging customers or clients to tell other people about your business, either directly or through online review tools like Yelp. This is important but another key part of word-of-mouth promotion involves your own word-of-mouth efforts—attending events, meeting new contacts, talking with others and sharing who you are and what you do.

It’s great to attend events that directly relate to your business or industry and it’s also incredibly valuable to just get out there and make contact with people. We need to be out in the public—be it a street fair, holiday event or home-based party—and connect with others.

Even at gatherings that aren’t “officially” networking events, try to put yourself into the mix and in your own way, “work the room”. It’s okay to have an agenda in mind. You can be ready with a critical question to ask or some simple information to share about you and your own business. Travel with a business success story or a lesson learned, and always be on the lookout for good resources and leads for other business owners you know.

word of mouth

In conversation with PTA Associate Andrea Baker, Owner of Baker Consulting

The key to building a good reputation may simply mean being a person ready with a story to tell, good resources to share, and the ability to listen and ask questions in all conversations. Every encounter is a potential business opportunity—even if you don’t know what the benefit will be to you and your business in the moment! It is in the company of others that magic can happen.

Outstanding Service

Last week I received the Outstanding Service Award from Renaissance Entrepreneurship Center.  This award was presented by CEO Sharon Miller to recognize over twenty years of work with Renaissance as an independent business consultant in developing classes and incubator programs and as the primary business planning instructor and coordinator.

service

receiving the Renaissance Outstanding Service Award

It was such an honor to receive this award in front of colleagues, students, friends and family during Renaissance’s gala event, “Small Business, Big Impact: Celebrating 28 Years of Small Business Success” on October 2nd at the Bently Reserve in San Francisco.

It was quite surprising to realize that I have taught over 5,000 business planning students and supported over 100 incubator tenants at Renaissance. The secret is that I’m constantly inspired working with new and emerging business owners. I love the experience of helping students to explore options, get organized, develop practical business skills and take the steps necessary to make their small businesses work. I am inspired each day by the diversity of people who want to start their own businesses, the variety of business ideas, students’ focus and passion, as well as their willingness to put in the time and make the commitment to be successful.

While the award was so appreciated, the people who truly deserve the accolades are the Renaissance graduates — the new entrepreneurs who are doing research, creating prototypes, testing concepts, launching on a trial basis, and then jumping into the marketplace.

service

with fellow Renaissance graduate award winners, Heidi Gibson, Yvonne Hines and Alphonso Rhodes

These small and micro businesses are the engines of our local and national economy. We need to support them so they can thrive, continue to expand, offer jobs, and become community-based institutions for our neighborhoods and cities. When you choose to frequent small, independently owned businesses you are directly building the local economy and, in the process, supporting some amazing, dynamic people. Our small business owners are heroes. They are making a difference through their focus on sustainability and their attention to the local community. We need to award the local, small business owner for outstanding service!


Leading you in the Right Direction

expert

 

As business owners, we cannot do it all by ourselves. Small business specialists can help tackle problems in accounting, law, insurance, graphic design, marketing, management and other critical areas.

I’ve found there are three primary reasons for a business owner to hire an outside expert:

  1. For the short-term when over-extended, such as market expansion or preparing a business for sale
  2. For specific or sensitive issues, such as personnel problems
  3. For issues demanding special expertise, such as computer systems, taxes or engineering help.

Here’s how you can choose the right professional for you and your business:

Before your search begins
Determine what you really need, when you need it and how much you can afford to spend. This will help you decide the type of professional to look for and the criteria you’ll want to use in evaluating your options. Know the results or outcomes you would like to obtain. This will help clarify the level of expertise you’re looking for.

The Search
Ask for recommendations from colleagues in businesses of similar type, size and philosophy (instead of blindly searching the internet). If colleagues have been satisfied clients they will be happy and eager to refer the professional or consultant to you. You can also find quality help through business associations and industry-specific professional groups.

The Screening
Find an advisor who can really listen, evaluate the situation, make recommendations and then, if appropriate, help you implement solutions. When you first talk with the professional, notice if he or she can connect your problem to his or her previous experience. Pay attention to the questions the professional asks you.

The Meeting
Spend the first few minutes of your first face-to-face meeting setting an agenda, identifying possible outcomes and getting agreement on the length of the first session. This will help focus your time, set criteria for measurable results and keep you in charge. The professional should be able to define the basic issues and then estimate time, terms and fees.

The Agreement
It’s wise to get things in writing, including a work plan and timeline. Many professionals will provide a letter of agreement but don’t expect consultants, like a computer or management consultant, to provide a full analysis for free. A thorough analysis of your business situation and expert recommendations are worth paying for in advance of a solution being implemented. This important step, if done properly, can actually save the overall expenditure of certain projects and should be included in the total budget for the project.

Using professionals in your business is not a sign of weakness! It is an indication of sound management practices. As a business grows, staff can be added to replace outside experts or you can continue to use contract professionals.

Are you all alone?

Being the owner of your own small business is a fantastic undertaking.  Here is where you prove your concept, sell your product for a profit and become a social entrepreneur, changing the world one transaction at a time.  Yet, being a small business owner CAN be isolating and sometimes lonely. alone However, there IS one simple and successful support strategy that is free, motivational and really helpful from a practical perspective.  This is a solution that will provide information, motivation, and access to resources.  This is a solution you can develop without spending a lot of time and money on professional advisors and/or consultants.

Solving Isolation

All business owners need personal support, access to accurate information, and to be around people who can motivate and inspire. Business is an interdependent environment of vendors, competitors, and resources. Business owners need to set up support systems that are appropriate (for level and content), easy to use (accessible) and timely (available when and where they are most needed).

The first step and easiest solution is to find a support partner who will help make you accountable.  The support partner is your unconditional “business friend”. Ideally, this is someone also in business like you who can listen, give emotional support for your business issues, and can provide constructive feedback on business dilemmas and opportunities.

The relationship is bi-directional – each support partner helps the other. You may agree to meet weekly, catch-up, share problems and successes, and then use your partner as an objective reviewer for your plans of the week. The meeting should be a check-in for ongoing support and follow-up. It is also key that this be on-going and long-term (e.g. 6 months) so that your support partner gets exposed to the issues and understands the context and the players in your world. Your meetings with your support partner can be a catalyst for positive change and an opportunity to talk discreetly about business issues outside of your own business environment.

Roberto felt that getting his business marketing efforts off the ground was so difficult he ignored many of the key initial steps. He felt the isolation and frustration and had no one to really talk to that could relate to his issues of time management, cash flow and making internal decisions. Then he found Maria who was in a very similar situation, yet in a totally different business. They liked each other, respected each others’ opinions and set-up a weekly review meeting over coffee every Friday when they could talk to each other, give each other feedback, and commit to an action for each week. These meetings continued weekly for many months and were supported by the occasional e-mail and phone call.

All you need to starts is to find ONE person in business like yourself.  This will need to be someone you like and trust…and is willing to help you just as you will help them.  Try it out and see if this will help you build your business and get the support you need to keep going and flourish!