How long is a string? Let me give you some pointers here, but please remember you can always do more on the cost-cutting front in any small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants.

1. Keep your staffing level low. As much as it may hurt, work longer hours yourself, until extra staff is economically viable.
2. Outsource all non-core business activities. This will reduce your fix-cost structure, make your small business more flexible and you can react faster to an economic down-turn.
3. Buy second hand. Do you really need the brand new van? Or computer, or……
4. Work from home, this will not only cut your cost, but may improve your work-life balance at the same time.
5. Let your staff work from home. No office cost, hire a room if you need to on an hourly basis.
6. Use online technology, so you don’t waste time and get distracted.
7. Focus on your core business and sales. Every distraction costs time and money, sales generates money.
8. Bootstrapping. Think before you spend a penny, could I borrow, hire or do it online, get creative.
9. Analyze your fixed cost every month. You will find things you don’t need - trust me you will.
10. Compare and get new quotes. Even if you need the service or product from your supplier, check others all the time, insurance, telephone, utilities, etc.
11. Get better payment terms. Ask to pay in 60 or 90 days, or get an early payment discount.
12. Check your bank charges - you’ll be surprised. Or have it done on a results basis, doesn’t cost you time and gets you money back.
13. Do credit control - get your money in lower your bank overdraft cost and charges.

This is only a short list of what you can do, but it’s a start. Remember even $100/£50 per month is $1200/£600 a year more in your pocket. ST.

Disclaimer: As with any of my readers questions, I do not have all the answers and here on my blog I can only give you some ideas, since I know very little about your small business. If any of you can add anything here do so for the benefit of my reader, who asked the question and everybody else, leave a comment below - I’d be most grateful.

You are in a good position - because you will have to start your business by selling your service or your idea for a product, to make any money.

Bootstrapping is what you need to do, you can find information about this in my categories, about bootstrapping.

I can also recommend a great book I got yesterday:

Bootstrapping Your Business by Greg Gianforte (ISBN: 978-1-4196-6955-2)

In my last post, I touched on the cost to set up a home business. If you read some of the articles on the left hand side of my blog you will get a pretty good idea, what I would consider when starting out - so have a look.

As a bootstrapper you will order the second-hand books of cause, won’t you. ST.

Disclaimer: As with any of my readers questions, I do not have all the answers and this is not business advice, since I only know very little about your business. If any of you can add anything here do so for the benefit of my reader, who asked the question and everybody else, leave a comment below - I thank you for your effort.

Running a small business and start-up business, like SOHO-, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants from home, is one of the most cost-effective ways to start a business, so here are some costs I can foresee:

1. Office Set-Up. You may have a desk and computer and internet already, the kitchen table can often be used for your production work, depending what you do, it may be the garage. If you do not have desk, computer, buy some second hand stuff, look in the local paper, ebay or other auction sites, to find what you need cheap. I estimate $1,000 / £500 for that one off, if you don’t have the office equipment.
2. Telephone & Fax. Get a second telephone line, get your faxes via email and get someone to answer your telephone. Use a virtual assitant, I hate small businesses who do not answer their telephones, it’s one of the biggest business turn-off’s. Estimated set-up cost $100 / £ 50, monthly cost about $60 / £ 30 per month.
3. Online Presence and E-Commerce. I am a little biased here - use our OnlineOffice and get your web-site - for customer information, e-shop - for selling online, online blog - for marketing and PR, online file-store - to keep you data safe, accounting software - to work with your accountant online in real time, and be able to outsource and work with virtual assistants, to save time, money and make yourself look professional. This all includes free 24/7 live support. Per month $20 / £10.
4. Accountant and Bookkeeper. Important, to get an accountant as early as possible, to plan your cash-flow talk about special rules that apply for taxation, insurance and other red-tape. One of you most important business partners if you get your choice right. Estimate on average $100 / £50 per month, the initial consultation should be free.
5. Bootstrapping. Do not spend any money on flyers and other printed material, don’t spend any money on any marketing until you can afford it and you know you will get a result - because it’s all free on the internet.

So you are looking at a professionally run home-office with telephone and accountant back-up for a total set-up cost of around $ 1,100 / £550 and a monthly average cost of $180 / £90. You may need some insurance, depending where and what you do?

This is the cost for running your small business from home, your accountant can talk to you about tax-breakes for working from home too. ST

Disclaimer: As with any of my readers questions, I do not have all the answers and this is not business advice, since I only know very little about your business. If any of you can add anything here do so for the benefit of my reader, who asked the question and everybody else, leave a comment below - I thank you for your effort.

The guys over at the Small Biz Labs Blog, one of my daily information sources, has an article on “The Shifting Career Blog and Corporate Hybrids“. In it they make the following statement:

“…. One of the comments to the post mentions dual career couples who use one of the partner’s corporate job to provide benefits and income while the other partner starts a business. We call this the corporate soho hybrid model, and discuss it in our forecast reports. This model is very common in Silicon Valley and gets around many of the risks associated with starting a business or becoming a free agent.”

To me this reads like the so called “corporate soho hybrid model” is a new development in small business activities and that it is more often seen in Silicon Valley, than anywhere else. I would very much like to see any evidence for any of those statements? Or is it just that we did not notice in the past, because nobody cared about small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants?

My grand-parents, (German) on my mothers side, and my wife’s grand-parents, (English) on her mothers side, did exactly the same. As it happens both ladies ran a shop, while the husbands stayed in employment.

The same can be said for many of my clients, one partner works and the other starts a small business, often more for the reason that employment is more volatile, than a small business run on bootstrapping techniques and not with world domination in mind. I believe a substantial number of small business are started by couples with the aim, that both will work in the business in the end.

By the way, bootstrapping - another new age small business term I often use - was something everybody in business did 50 years ago, there was no other way. VCs, angel-investores, etc. where not available and obviously not needed, but then I doubt that you need them today in 95% of cases.

The moral in this story, just because we give something a fancy new name, does not mean it is a new trend, this one is IMO certainly not. ST.

I always look for way to turn a problem into an advantage, so here is my take on the so often mentioned “isolation problem” for small home businesses, free-lancers, contractor, sole-traders and micro-business.

So, you don’t meet enough people to interact with on a personal level? Let me ask you another question, what kind of people does your business need most of all? Customers, right? As a good bootstrapper you know that everything starts with sales, because that is how you get your money. You may very well do all your marketing online and get business that way, but why leave it at that? Think global - do local!

So, now to my solution for your “isolation problem”, I guess you already know what is coming:

• Go and meet people, customer people.
• Go to networking events in your local area.
• Go and join business clubs or start one.
• Run an event from your home.
• Take a business class at your local college.

All these and other events will get you out of the house, open your local paper, call your local camber of commerce, they all can help you to find events and contacts, and start your “isolation-opportunity” marketing and sales drive.

Turning “customer people” into “customer friends” could be the smartest thing you will do this year. Business is so much easier if you know someone personally. You know your “isolation-problem” has turned into an “isolation-business-advantage”, when your customers come around your house to discuss the next business deal and/or for a cup of coffee.

Always think, where is the opportunity in this problem? Once you start thinking like that you will see many new opportunities and the world will become a much more friendly and profitable place. ST.

Shirley Jaffrey wrote me an email today, telling me her story how she started her business on a kitchen table and is now supplying the stars.

But she started her email like this:

A story on the BBC website yesterday “When did normal people fall so in love
with Tattoos” see link http://news.bbc.co.uk/1/hi/magazine/7034500.stm

There is no mention of her product in this BBC article, but she has associated herself with this article, more importantly the BBC. She got me to read her story based on this BBC link, since I’m not really into tattoos.

Here is some of what she emailed me:

“… I was a nurse of 13 years experience in all areas of nursing and a practicing aroma therapist, so using my extensive knowledge in health care and natural essential oils and emollients I created my blend, Tattoo Aftercare®, (Scots are also famous for blending skills!)

I was not working, my youngest child was a year old, my daughters were 11 and 13 and my husband was unemployed due to ill health. We had no spare money and were living on social security benefits, yet I saw the gap in the market and had a vision of seeing my product in tattoo studios around the world.

With a borrowed £400 and home PC a lot of determination and hard work and testing the blend on willing testers we began putting samples out to studios in the UK . From that we got our first few customers. We worked from home for the first two years blending hundreds and hundreds of jars of aftercare every day. We would then label and package them, with the help of my daughters, and sell them to tattoo studios. In the early days we lived off soup, (I now make great soup), so we could post out samples, turning back all money made into the company. Two years on we moved into premises but were still hand blending using a small stainless steel pot and kettle for pouring. Finally after hand blending over 70,000 jars we were able to have the product made at a manufacturer in Laurencekirk , Scotland , where it is still made toady.

We moved home from Balmedie in Scotland to Chester , England in 2003 so we could visit more customers and attend more tattoo conventions to raise awareness about my product.

Now seven years on we supply tattoo studios all over the UK and Europe, and use a number of distributors selling into Canada , Sweden , Czech Rep, and Indonesia and are in the process of securing a deal with an American distributor. To date over 400,000 people have used my product as an aftercare for their tattoo, many of them stars. www.tattooaftercare.co.uk

My company has had several magazine reviews and newspaper articles written about my success and personal achievement as a woman in business. In 2005 I was surprised to find myself as one of three finalists in the North West of England Business Awards 2005, Women in Business Category. My product recipe also won the BUAV first ever Gold Bunny Award in 2006 for not being tested on animals. My blend is made using the finest natural ingredients; It is 100% Natural contains no chemicals and is paraben preservative free and is the only aftercare in the world approved under the Humane Cosmetics Standard. ”

THIS is what I’m talking about when I talk about bootstrapping, work-life balance and all that. I love this story and I’m proud to be used for advertising, in this quint-essential bootstrapping marketing drive. Her last paragraph reads like this:

As we move our company forward and set up business links with companies across the world I believe my story can be seen as an inspiration to others who have the get up and go to begin in business and shows that hard work and determination can cross boundaries and countries.

I could not agree more, I hope Shirley is well on her way to business and private life success. A lot can be learned here and if you have similar stories, why not tell us about them? ST.

PS. Before I retire for the day with a nice glass of my favorite malt, I wonder what she means about the Scots and blending skills? Any idea anyone?

Whilst writing the Small Business Quotation: Crisis I started thinking about the crises I have had in my business life and it it occurred to me that crises are not only unavoidable, but sometimes good for small business.

Sometimes Plan B is better than Plan A.

The question I asked myself was, why did I have these crises? For those that I can remember it is true to say “Something was not right with the way we did business, developed our product”, but once you got through it we had usually improved things.

Let me use the recent Skype outage as an example. I think everyone would agree that the recent outage was a major crisis for Skype. They had a software problem in their code, they had not know about. So after the problem was fixed Skype’s service today is better then it was before the crisis.

It really is that simple sometimes, crises are another form of progress if you learn to accept that crises are part of our everyday life, be it in business or in our private lives. It is needless to say that not all crises fall in this category, losing a loved one, having an accident, falling ill are quite different and as such also part of our lives, but they never improve things, ever.

I think we need to understand that things will go wrong, before they actually go wrong - remember Murphy’s Law - so assume the worst and do your best.

The lesson we can learn here is also one about staying focused, stick to the simple stuff, less will go wrong and you will have to deal with less crises. For the stuff you have to do, ask yourself if you can prevent it, plan for it, make it tolerable or influence any possible crisis. It is a form of disaster planning, for the everyday crises that happen in business.

You know “Business is Progress, Progress is Life and Life’s a Mess!” ST.

A few days ago I was once again reminded by Joshua Levy and his piece “One Blogger Asks: Is the Grass Really Greener on the Web Worker’s Lawn?” on his blog Web Worker Daily that I wanted to write a piece about what I believe to be the social impact of home working.

Joshua is asking some interesting questions about working from home:

So is all of this freedom actually liberating us? Does web work actually represent an evolution in the working conditions of the masses? Or are we fooling ourselves, blind to the reality that we can’t have it two ways — you can’t have the freedom AND have someone else, er, pay the bills.

If I ask myself these and other questions I’m invariably drawn to find answers in my personal work life and how it has changed in the last decade.

In 1999 I was still office based, traveled from one of our offices around the world to the next and was rarely home. In fact most of the time those years I came home Friday very late or Saturday and then often left Sunday night again. So I saw little of my family and especially my son who is now grown-up and ready to go to university.

Then in 1999 I sold my ISP-business and went back to run WinWeb. This time around I worked from home, right from the start I did not want to be in an office and lead the same life as before. So for the past eight years I have been there when my son came home from school, I even picked him up often enough. I was here when he came home with the latest music CD, I had to listen to - not always easy, I admit - or the latest sport-shoes form addidas had finally arrived at the shops.

Similarly I spend much more time with my wife, going for lunch, doing some “essential” gardening - I hated gardening, but love it now. I could give you many more examples, but you get the picture.

While there are many challenges for home workers, I believe we are seeing the beginning of an “reversal” trend. I would like to list here some challenges I believe our society is facing currently:

• Child care - in our work dominated society we often outsource most of our child-care, in kindergarten, boarding schools, and other institutions, here our children will not receive the same level of care and love they deserve and need;
• Care for the Elderly - our lifestyles often separate us from our loved ones and in times of need we are often not able to care for our relatives or friends, because we live in different cities or even countries for example;
• Environment - many of us spend hours every day alone in cars or on trains - not alone, but still isolated - and contribute to the carbon emissions that change our climate.

There are many more examples. This whole process began with the “Industrial Revolution” some 150 years ago. Some of us may even remember a time when three or even four generations of a family lived in one house. People worked in their villages, child-care or care for family “just” happened - was that a bad or good thing? Looking at single parent families and the impact on our children, I would argue it was a good thing, and so would the many parents working from home exactly for that reason - to provide a healthy family environment for their loved ones.

I believe that the whole trend of home working may in the future allow us to have a much more natural work/life balance and will reverse some of the damaging effects of the post industrial revolution changes in our society. People will live closer to family, local communities will be revived - I believe that is happening as we speak, and our children will benefit from “more family”, and all this will have a profound impact on all our lives and the environment.

I would encourage Joshua and everyone else working from home to relearn the social skills of building local friendships, or live near family and give you the social life you need.

After all, this technology we at WinWeb and others supply makes it possible to work from anywhere, gives you a tremendous amount of freedom to live the life you want, where you want.

Let’s hope in hundred years from now people will see this era not only as the “Information Age”, but also the age when we learned to live a better work/life balance, in tune with our emotional and social needs as individuals, families and society as a whole. What do you think?

Have a great weekend with your family and friends.

It seems finally people are waking up to the fact that small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal business wants to stay small. Small Biz Labs reports:

According to this month’s Discover Small Business Watch (a survey of small business owners with 5 or fewer employees) “69 percent of small business owners said that they prefer to have their business remain small.”

I’m still somewhat surprised it took most people that long to finally understand that it is perfectly OK to want to stay small. Question is why nobody ( apart from WinWeb) is really catering for these types of small business and personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants.

What really gets me going is when these types of small businesses get told ” It’s just like having a home job!” - dream on.

Running a business from home can be one of the most liberating and fulfilling things you have ever done in your life.

Starting and running a small business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal business today, is all about staying focused on the small business and not on running your office. WinWeb’s Software as a Service applications allow you to do exactly that. Below you will find some of the benefits detailed to help you make up your mind if this kind of technology is for you.

1. No More Software Installation.

Since our software comes to you via your internet browser, there is no need to install anything. Your printer will also work with our software without installation or any modifications. Our software works with any web browser, Internet Explorer, Safari, Firefox etc.

2. Our software is always up to date.

This really is one of the main benefits of SaaS. We make all the software updates on our servers, so you don’t have to do anything. No update hassle and worry anymore. There are no “Update available - Please download” messages and no CDs / DVDs updates arriving in the mail.

3. Never pay for software “updates” again!

No matter if we update or bug-fix, you will never have to pay for them again, it is all part and parcel of our service. Artificially accelerated software cycles are a thing of your past.

4. Fully Compatible with any Operating System.

Our software runs on any Operating System (OS) with Linux, Mac, Windows and some others - you login and use it.

5. Work and collaborate with anyone, anytime and anywhere.

Our software allows you to work with your accountant, colleagues, virtual assistants and others in real-time at anytime - whatever your business needs.

6. No commuting. No time wasting.

With online technology you can work from anywhere, so no need to travel to an office. Run your small business from home and benefit in terms of time, money and investment.

7. No security problems. No business interruption problem.

Your data is continuously backed up onto multiple RAID-5 data servers in multiple physically and network secure data centers - if that is not enough you can make a copy of your data anytime onto your PC or a CD.
Should your computer crash or get stolen - no problem, just log on to another computer and keep working - can your competition do that?

8. 24/7 Live Support 365 days a year.

We believe that you will be busy during the day with your clients and with working on new projects and so you should - after the phone stops ringing you get down to your admin work. So we thought we better be around in case you need some support for any of our products. It would be no good if we weren’t around now, would it?

9. No contract needed.

No minimum term, cancel anytime, no contract needed and you can test drive any software for a minimum of 30 days free of charge. This puts you in control. Unlike the boxed software you buy, once you paid for it, it’s yours including the problems. Not so with our software.

10. ClimateByte™ Technology

Our environment is in trouble - by using our on-demand Small Business Infrastructure™, you can help to reduce your carbon footprint and help our environment - we are dedicated to develop our future products and services with this in mind.

Our Software as a Service products provide your small business with a on-demand Small Business Infrastructure™ helping you to concentrate on your business, while we run your office and IT. This makes your business more mobile and competitive while saving you time, money and helping the environment.

When you run a small business and personal business, like contractors, freelancer, self-employed, sole-trader and virtual assistants you probably benefit even more from using SaaS technology - program your business for success.