Kim's BizBlog

Believe it or not, one of the smartest things I accidently did in my baby focused business was start it before I ever had a baby.  Not only have I had the time to cultivate the business and make great contacts, I've been able to approach the business objectively. 

I assist my client's based on my years of research and observing and talking to many parents.  I've learned that no parent, baby or household is the same.  When you come to the table with only your experience instead of understanding these differences, you can actually end up annoying the client.  Afterall, the one thing that expecting Moms and Dads are not lacking is advice from other people. 

Instead of bringing my experience with babies and having to learn the business side, I brought my experience in business and learned the baby side.

The experience that I brought to my business was my ability to assess and broker between two parties.  For years, I acted as a liaison between network owned and operated television stations and the advertising agencies and clients whose ad buys kept these stations in business.  I do the exact same thing now between expecting parents and vendors.

It took me a couple of years to realize the  accidental genius in my decision.  I relied heavily on Moms to assist my clients.  One day I overheard one of my Moms giving advice that didn't match what I had learned from every other Mom I knew.  Not that she was wrong in her advice, she was just recommending a product that she couldn't live without.  Evidently, she was a rarity.  It was then that I revised the way we approach clients.  I now encourage my employees with children to set their experience aside, learn all other sides of the topic, then bring their experience back in as it applies.

One of the reasons I was so insecure in my abilities when I first started is because of what others were saying to me, "You don't even have kids, how are you going to start a baby planning business?"  I listened to those people and kept playing those tapes. 

I now feel proud of our process and the way we approach our clients.  My goal when I walk into a client's home is to properly assess their lifestyle, then recommend options that would fit best within that lifestyle based on my experience with other clients like them.  I don't know if I could say the same if I had started the business after I had kids.

Recently, a friend of mine made the leap into his business, full-time.  In the last few conversations I've had with him he's complained that no one will return his calls or e-mails.  And, if they do, it's always a week later.  "In some cases, it's me wanting to give someone business," he says. "And they still won't call me back!"

I call this small business condition, the invisible syndrome.  It's something that I thought only I suffered from until I started talking to other like-minded business owners.  After years of study, I have several theories in relation to the symptoms of this invisible condition.  Below is my hypothesis.

A. Too Small to See or Hear 

This one refers to small business owners who seek professional assistance only to be ignored by those they are trying to contract.  My background is in sales.  To me, on the rare occasions that a call is missed, it should be returned at lightening speed so that the caller doesn't have time to even notice that a call was missed at all.  After all, the first one in the door has the best chance of making the sale.

But, from legal counsel to graphic art assistance to creating product, I have been amazed at the fact that I'm the one chasing these people down in an effort to give them money.  After numerous unreturned calls, my only explanation is that I'm too small and that they would all rather fry bigger, more established fish rather than the little minnow who's hoping not be eaten by a gold fish in the pond.  

I know I'm small.  I know that very few new businesses make it.  But, what if I'm that one?  Imagine if the first attorney that Paul Allen and Bill Gates contacted never returned the call.  It's highly likely that there's some attorney sitting in the drizzling rain in Washington saying, "I can't believe I didn't return the call."

B.  People are Tired

There's no doubt that things today move at a much swifter pace than even just 10 years ago.  It becomes difficult to keep up with the day to day and before long, you're flat out tired.  

When I first started, I was determined to return every single solicitor e-mail and phone call.  These people are just doing their job and even if I didn't need the service/product they were selling, it would leave them thinking nothing but wonderful thoughts about Peekaboo Design Group.  These dreamy thoughts would then be passed on to their friends and family at kid's soccer games and cocktail parties.

This worked until I started getting real customers.  Before long, I was getting 10 solicitor calls a day.  If I was staying up all night working on my business, what sense did it make to return a solicitor's call only to tell them, 'no thanks?'  To this day, I still receive more solicitor e-mails and calls than I do from prospects.  It's incredible.  There's no person in the World nice enough to return/answer all of the calls.  So, to all those on the cold calling trail, it's nothing personal.  Trust me.

As a liaison between vendors and clients, I also receive a lot of calls from vendors who want me to present their business to my clients (between 5-10/week).  I love this because it keeps me well informed on what's out there but, again, it becomes incredibly difficult to get back with everyone.   

I think all of the above leads to incoming 'need something' overload and no one gets answered.

C. Working Harder for Less

As I say all the way through this blog, everything in this blog is just my opinion based on my experience.  That said, here's my guess on the last item that I believe leads to the Invisible Syndrome.

A few years ago, when the economy was booming, there was a ton of work to be done and few available employees to fill the need of the extra work load.  When I first started, it was almost impossible to hire anyone because very few qualified people needed a job.  Unemployment was very low.

Now, companies have trimmed their staffs in order to survive.  Even though there's less work in most cases, there are also fewer employees to divide that work among. There's little doubt that people are working harder for the same or less right now which leads to resentment and poor attitude.

Even among the small business owners who are still around, you'd think that they'd be clawing and scratching trying to survive, but instead what I'm seeing is the lack of will to go on.  Again, people are tired.

In Conclusion

I truly believe that any business owner or employee that gives 110% in customer service will soar to great heights.  People are not used to getting that type of service anymore so when someone gives it, the customer is blown away.  I actually think it's so bad right now, that you could give 85% and people would still be singing your praises.

GO GET IT!

Please note the thoughts and opinions expressed in this blog are based on the experiences of the author.  The information contained in this blog is in no way meant to take the place of professional advice.  It is only meant as insight into the world of a small business owner.   As always, thank you for visiting and feel free to share your own experiences or conerns by leaving a comment.

In case I haven't said it before starting a business is a lot of hard work.  And, especially the last couple of years when most everyone is working harder for less (I know I've said that before).  

Summer is my favorite time of year! This summer has definitely been tougher than most.  There just isn't enough time in the day.  Usually our summers are filled with impromptu pool parties, dinners with friends and gardening.  This summer, my flower pots sit empty.  The pool has barely been used.  And, I'm lucky if I have time to feed myself (thank goodness for Smart Ones Fiesta Quesadillas!).

What I want to know is, "Is this normal?"  Is it normal to fall off the face of the Earth when you own your own business?  Recently, I heard someone talking about their neighbor.  Their comment was, "We used to be close to our neighbors, but then they started a business."  Well, no $%^#!!!  It was really a third party validation for me.

Now, summer 2010 is almost over and I am sad.  Wah.  Wah.

I remember after my first year of full-time business, when my brother, a C.P.A, almost rhetorically asked, "Is everything just going back into the company?" 

It shocked me a little because that's exactly what was happening, but also because, for the first time, I felt like maybe I was doing it right.  I asked anyhow, "Yes.  Is that normal?"  He proceeded to tell me that it was very normal and just something that a business owner has to do in order to grow.

This, I believe, is something that many don't understand unless they've started or run a business.  I know I didn't.  Based on what I used to believe, here's what I would think my assistant assumes. 

We are finishing up a nursery and my assistant knows that the final bill is $16,000.  She knows she made $800 for the hours she worked so she quickly tries to add up how much I made from the job.  She adds the furniture and accessories at $8500.  Outside labor at about $1500.  "That means Kim is taking home $5200!!"    

I, too, used to think the boss took the remainder "home" to their personal checking.  What I didn't put much thought into were the daily expenses that must be subtracted as well.  The boss is really taking the money straight to the business account in order to pay  for the phone, rent, electricity, insurance, taxes, payroll taxes, legal, accounting, other salaries, advertising, more products and office supplies. 

Sometimes, due to unforseen circumstances, the boss pays out all who needs to be paid only to discover there's not enough to pay everyone.  Guess what happens then.  Either the boss puts the remainder on credit or pulls from his/her personal account. 

If there is enough left over, he/she may subtract his/her own pay.  Often, what happens in my case, is that I choose to "invest" my "pay' right back into the business in the form of new products and/or marketing.  I'm fortunate in that we have another income (my husband's), but I also set aside money before I started the business.  You'll read in all the books "pay yourself first!"  I would totally agree with this statement.  However, as I stated, I've found this difficult to do in my own business.  (This is where I'm going to refer you to the disclaimer on every post of this blog.  I'm only sharing my experiences here in the hopes that it keeps someone else from making the same mistakes.  I'm not necessarily giving direct advice.)

My Dad, who does get paid to give this kind of advice, has told me time and again, "when you set your prices, you must consider all expenses of the company now and all expenses that will exist in future."  This means, I may not have a storefront/office now, but I need to charge as though I do.  This prevents a business from having to quadruple their rate when they grow into that store front.  It's easier to lower prices, than to raise them.

The problem I ran into in building a new concept is that I was trying to build the value of a brand new service, while also selling the service.  In other words, I cut some pretty dirty deals just to prove that the service has value, but also build my portfolio.  Imagine the very first wedding planner.  Before wedding planners a person would have said, "Why would I pay someone to arrange vendors for me when I can just do it myself?"  I faced the same criticism and had to prove it wrong.

In a way, I cut my nose off of to spite my face, but I will say I was vaguely aware of what I was doing.  To combat this pricing issue, I made clear that anyone who used my service in the first two years would get a discounted rate.  Prices after that would go up to where they needed to be.  The clients understood this and, as a result, shared invaluable feedback with me.  To this day, I still get great advice from the client's who started with me.  It feels as though they truly are a part of my company and I consider them part of the Peekaboo family.

Two years may seem like a long time, but what you have to remember is the gestation (not a pun!) period for each of my clients.  We accept clients after 14 weeks of pregnancy, so I can spend almost six months with a client up to their due date and then even more time if they require our services after baby. 

I don't regret the money or time that I have invested and continue to invest back into the company.  I chalk it up as R&D.  It's been frustrating because the start has been slower but, now that other baby planners are surfacing, I can see how valuable that "R&D" time turned out to be.  Peekaboo may look smaller now, but I can tell that our foundation is firmer so our staying power should be longer.

My husband keeps telling me what a genius for spending all of the time/money in "research."  This makes me laugh.  It's kind of like telling the guy who just ran out into traffic that he's a genius because he only got hit by a motorcycle.  I have a business plan and I duck and weave with the punches, but everything feels accidental.  I don't much feel like a genius.  I just feel lucky...so far.  

Please note the thoughts and opinions expressed in this blog are based on the experiences of the author.  The information contained in this blog is in no way meant to take the place of professional advice.  It is only meant as insight into the world of a small business owner.   As always, thank you for visiting and feel free to share your own experiences or concerns by leaving a comment.

The Red Hot Chili Peppers song, "Give it Away" could have been an anthem for my business when I first started.  Lately, the tune has made a re-entry into my brain & business.

I started laying the foundation for my baby planning business in 2004, during a pretty strong economy.  It was in 2006, during a really strong economy, that I finally made the full-time leap into baby planning.  Most of 2007 proved to be bang-up as well.

Something you should know is that I'm surrounded by economic & financial gurus.  All of whom told me, "You're starting a business in the worst possible time."  But did I listen?  What could they be talking about?  The market was booming.  The unemployment rate was super low (which, I quickly found out is not a plus for a new business).  As I walked away, I could faintly hear them say, "We're slated for a recession end of 2007."  Recession Shmession! Bring on the new biz. 

Here's what happened.  In order for a new concept to work, you have to prove out and perfect that concept.   To do this, I had to give quite a bit away and/or work for peanuts.  I hustled taking on any work I could get in order to perfect the Peekaboo process and build a strong portfolio.  It paid off!  Not only did I build a great portfolio and process, I received valuable feedback.

By the middle of 2007, I was able to establish my value and build a semi-appropriate pricing model.  After 3 years of building the business, I was finally starting to see the potential for a return on my investment. 

Now, I was leery of what was to come because the market in the fall of '07 was at the highest it had been in history.  Un-employment was at the lowest it had been in decades.  From my experience, what goes up must come down.  But, my calendar was booked through the spring of 2008 so, I decided to start looking for potential employees.  [Insert screeching brake noise here]. 

Almost immediately after I held a recruiting meeting for new talent, the talk of "Depression" was haphazardly thrown about.  I say haphazardly because my experience as a small business owner is that small business owners have a finger right on the pulse of the American consumer.  Every time a politician got up to talk about how dire our situation was, I received a cancellation.  I started talking to my other vendors and they were experiencing the same phenomenon.  This was before the market & employment really started to tank.  And, to say that I'm furious with politicians who create more of a crisis than exists for political gain, is an understatement.  But, let's move on.

The rest of 2008 was a volleying match.  I followed restaurant trends.  All of the middle priced restaurants were starting to go under.  Fast food and high end restaurants were still above water.  Because my services are too time extensive to cater to the lower wage earners, I focused high.  Suddenly, the more expensive restaurants started sinking.  I was still targeting the correct market; it just meant that the majority of my market's pocket books had closed!  If they weren't willing to shell out a descent amount for a nice dinner, they weren't about to hire me for an over-the-top baby experience.

2009 started different than any other year.  Most years, I'm optimistic and excited.  This year I was pissed and in defense mode.  I've worked hard to build a great concept and I wasn't going to let it slip through the market's fingers. 

When a market turns, the natural reaction in business is to re-evaluate your profit centers and try to create new ones.  Instead of selling convenient packages, I started piecing out my services, selling ala carte.  This meant working harder for less.

In addition, I realized it is a good time to build up my brand.  To do this, I decided to launch a revolutionary new marketing concept.  One that will be fully unveiled soon!  The kicker is...the combination of the weak economy and my new marketing has got me right back where I started,  "Giving it Away." 

Bottom Line: There are economists who spend their whole lives evaluating our economy and tracking, pretty accurately, when we will climb and when we will fall.  If I had listened to those around me, I would have started my business in an economy like the current one with low rent, available labor and a great idea.  Then, as the economy climbs back, I'm positioned for a longer period of success and will hopefully be stronger when the next dip occurs. As it is, I started in a sprint, got to cruise in good economy mode for a couple of months and then was forced right back into the sprint of survival.  A person fresh into the race could really give business owners like me a run for their money.

Best of luck!

Please note the thoughts and opinions expressed in this blog are based on the experiences of the author.  The information contained in this blog is in no way meant to take the place of professional advice.  It is only meant as insight into the world of a small business owner.   As always, thank you for visiting and feel free to share your own experiences or conerns by leaving a comment

That's right, I said it.  And, if someone had told me to fake it 'til you make it when I first started my business I would have said, "You're a cheeseball.  Back the hell off." 

But, guess what?  Everyone's doing it.  That guy with the full wrap on his truck that you saw at the stoplight today...fakin' it.  The guy with the awesome website that lists a full host of services...fakin' it.  Billboard on highway, printed work shirts, slick brochures...fake, fake and fake.

Obviously not all of these businesses can be total fakers.  But, I can guarantee you one thing.  If they are not faking it now...they were at one time.  No doubt.  

I think this is a great secret that business owners share only with each other.  It took me a long time to unravel that fact.  Finally, one day I was talking to one of my vendors who was adding a new service to her tool bag.  She had a grand portfolio on this service which prompted me to ask, "why haven't I seen this work before?"  She proceeded to tell me that it was all work she had done for family and friends, she's never sold these services to a client...her portfolio suggested a totally different story!

This was my first glimpse behind the curtain, as they say.  Since then, several of my vendors have shared with me the things they did/do to enhance their image.  One of my vendors and I laugh and always say, "pay no attention to what's going on behind the curtain!"  All that matters is what is presented and delivered in front of the curtain.

Even the guy with an awesome retail spot down the street is sweating every day.  He's not going to let that show.  He's going to fake it.  But, you can bet he's worried that someday, he won't be able to cover his overhead.

Why is the realization of this secret so valuable?  It was valuable to me because it made me feel more secure in my venture.  Those guys I strive to be like with their store fronts, fancy wrapped trucks and printed uniforms might be just like me...trying to make an idea work. 

I like to remind myself, things are rarely as they appear.  It's like the old phrase, "Grass is always greener..."  Sometimes it takes a little spray paint to get your grass green! 

See ya next time!

Please note the thoughts and opinions expressed in this blog are based on the experiences of the author.  The information contained in this blog is in no way meant to take the place of professional advice.  It is only meant as insight into the world of a small business owner.   As always, thank you for visiting and feel free to share your own experiences or conerns by leaving a comment