The Kitchen Table Entrepreneur Blog by Jackie Rogers

Thanks VoiceAmerica.com - It's Who You Know That Counts

    Two are better than one, because they have a good return for their work;... - Ecclesiastes 4:9

During the three months that I have been the host of the Kitchen Table Entrepreneur thekitchentableentrepreneur.comradio broadcast on VoiceAmerica.com - voiceamerica,com; one distinct lesson has been reiterated to me each week ; it's who you know.

Of course this isn't a new revelation to anyone over the age of three. However what my guests have taught me is both a deeper meaning and appreciation of this common concept. I'm not talking about quid pro quo - you scratch my back and I'll scratch yours. And by the way in this type of relationship; the priority is to answer an immediate need with the promise of going no further until the next alarm is sounded.

As a business owner and especially one that sits on the board of me, myself and I, you cannot afford alarmist relationships. You need to access to people who can provide counsel and advice before an emergency happens.

As much as you may want to or wish you could; you cannot run your business by yourself, unless you want to run both it and yourself into the ground. As Bette Midler sang years ago "You Got to Have Friends".

As we get ready for the New Year; it is my hope that you begin (if you haven't already) to develop the kind of business relationships the provide you the opportunity to share value rather than cost.

The following are guests and others who have helped me take the Kitchen Table Entrepreneur from a piece of notebook paper to a radio show. I hope you have persons of this type to assist you in your business endeavors. For it's not only who you know but that who you know; knows what they're talking about and are willing to share. That's what counts.

So thanks to the following for enriching me and the Kitchen Table Entrepreneur radio show experience.

Melissa Schmitz- Producer Modavox.com - thanks for challenging me and for constructive criticism that seeks to build up rather than tear down. - modavox.com

John Abdo - Motivator, fitness expert - thanks for teaching me that each and every success begins with change. -johnabdo.com

Louie Bernstein - Small Business Expert - thanks for being so cognizant of the needs of small/micro business owners by sharing valuable cost saving tips. - sales-getter.com      

Mitchell John- Country & Western Star and Entrepreneur - thanks reinforcing to our audience that nothing resonates to customers like authenticity. - mitchelljohn.com 

Andrea Sittig-Rolf - Sales Dynamo - thanks for your motivation as well as education as to what true networking or "Power Referrals" is all about - sittiginc.com 

Benjamin Tran- Website Design Expert - thanks for helping to cut through alot of technical jargon and making it plain about website rankings - deographics.com

Jason Rosado- Personal Coach - thanks the reminder that coaching is a commitment that depends just as much on follow through as just showing up - distinctivecoaching.com

Dawn Rivers Baker - Micro and Small Business Journalist and Expert - thanks for telling us that when it comes to business - size doesn't matter. Micro businesses are crucial to the country's economic growth. - microenterprisejournal.com

Brian Rolf - Visionary and Entrepreneur - thanks sharing your journey and encouraging the audience to be diligent in making their dreams a reality. - seattlebugsafari.com

Frank Schmitz- Big Game Expert and Renaissance Man - thanks for being such an unselfish self made man that lives by his creed: "sharing others success supercedes the act of  accomplishment of personal harvest". - whitebirdsummit.com

Rich Tehrani - Tech Guru a tomorrow guy for today - thanks for increasing our technical awareness regarding new ways to communicate with customers and insights on the Generation Y customer in particular. - tmcnet.com

Bonnie Price - Motivator, Trainer and much more - thanks for showing that entrepreneurship has no age limits and re-invention is a part of life...at least a successful one. - silvervixens.com 

Anne Obarski* -  Customer Service and Sales Expert - thanks  for your expertise in customer service and providing a wealth of information and tools on your website. - merchandiseconcepts.com  

*Anne's show airs January 8, 2009 but was pre-recorded this year.

Thanks again one and all - Jackie Rogers

Make Lemonade instead of Watching the News

I do not watch the news or much TV period, on a daily basis. I find the litany of public and private laments, the  open sore of tragedies, calamities and all manner of mayhem running 24/7 from the media (in all its forms), well; depressing. I am not a delusional Pollyanna. Nor am I ignoring the severity of problems our nation and the world faces at this time.

But the way I see it, much of the media; online, offline and everything in between lives by a minus and not a plus. That's just the way it is.  And that kind of negative bent I find leaves me either angry or despondent. There's one thing to keep up with current events, but its something else to constantly fish for the choicest pieces from the local, national and global cesspools.

The auto, banking, housing and a list of other industries are in the toilet. Hardworking men and women no longer are through no fault of their own. These things I know. But I also know that hitting bottom starts the process of moving in another direction; which is up, if that is your focus, if you choose that as your focus.

I've said this before and I'll keep saying it. Great and significant changes are happening all over the world. And all these changes mean what they have always meant: opportunity. But you have to have a positive mindset to be able to take advantage of all the great opportunities now and soon to be covering the landscape; like manna from heaven. In order to be mentally focused for all the hard work that will ensure better times ahead, you can't let the media be the dominatrix for your masochistic need to feel bad; feel sad and do nothing.

So let me recommend two things you should read.The first is the December issue of Entrepreneur magazine: entrepreneur.com They list trends for 2009 that provide a wealth of opportunities for those ready for an opportunity; ready to make a change. One of the trends for 2009 the magazine predicts is the coming boom of entrepreneurship. So read this and be inspired and rejuvenated to make the changes you need to make in order to be ready for the opportunity you need to meet.

Secondly, read the article in the December issue of Inc magazine: inc.com about their "Entrepreneur of the Year": Alison Shuback. Alison is young woman whose life was tragically altered by an automobile accident.  If anybody deserves to say "woe is me", it's her.

But instead of looking back in anger, Ms. Shuback is looking forward to the launch of a product she created and helped design. Her product is for people like herself; disabled but not defeated. Alison says something in the article that made me think and I hope makes you think once you read it (and again please read the full article) about the challenges that are facing us personally and corporately. Ms. Shuback is fully aware of her limitations. Everyday she and her family face the unpleasant fact that much of what she wanted and her family wanted for her will never be. Her take on her life is: "Now it's only possible that I will make a difference," she says, "so I have to take every opportunity."

What about you?

Why the Department of Employment Security and SBA Should Work Together

The car companies are not going to collapse. I'm quick sick of the hyperventilating over this subject that has been about forty years in the making. But enough of that, whatever happens, whatever deal goes down (or not); many people in this industry will either be let go or grab the carat of a buy out and leave. The same scenario in other industries will be quietly playing out over the next few years. As the Industrial Age continues to wind down, as the music stops, we see they're not enough chairs.

Taking into account the terminally lazy and stupid; there's still going to be too many people for too few jobs; I mean good jobs that provide a salary to allow you to buy name brand cookies. This will be the case of course in times like we have now but also when the economy picks up.

Due to the erosion of many a 401K plans, people who just a year ago had retirement or "maybe I'll just work part time", dancing in their heads, now realize that they must endure the bump and grind a little while longer - if there's a place for them to bump and grind period. Then there's the young. Those who favor not being perpetual students are continuing to come into the workforce teeming with people who should be leaving it.

My suggestion to help with over capacity in the work place is for the Department of Employment Security (I think this is one of the most euphemistic uses of the word security around, but I digress) and the Small Business Administration (SBA) to work together. Many people who now find themselves unemployed, baring the need for food and shelter, would honestly tell you that they do not want another job. Again, baring the need for securing a roof over  one's head, many people desire not a job, but an opportunity even on a part time basis to be their own boss.

This is why SBA offices should be right next door to the Unemployment Offices. One positive note on the credit squeeze in regards to the SBA is perhaps it can come back to its true mission instead of that as a loan broker.

Persons with proven aptitude and character (if they so desire) should be aided in starting their own small business, emphasis on the small. Now you're probably saying that the SBA already does that. I would argue not to the extent that it should for a variety of reasons. In many cities, the SBA office is often located downtown instead of out in the communities where it could probably do greater good. The office here in Chicago is located in a gleaming office tower by the name of Citibank. I think it's ironic that the SBA whose original mission is to promote the growth of small business is located in an office tower named after a giant financial firm that is in the process of laying off thousands.

There should be SBA offices in every side of every town to help job growth in the communities that will in turn help job growth throughout the country. In addition to unemployment benefits, perhaps the Department of Employment Security could provide an incentive for starting a business with the SBA managing it. Just a thought but one I think whose time has come.

Contrary to ongoing popular opinion, it doesn't take much money to start many businesses. And they need to be started because again many industries are transforming or vanishing at a rapid rate. Opportunities need to be seized right here instead of overseas. And there's a lot of skill sets coming on line who can do this.

A new way of looking at governmentagencies like the Department of Employment Security and the SBA, can help mitigate these changing times. Afterall, we can't be so focused on what we've already done that miss what we need to do.

Do You Care More About Customer Service than Your Customers?

If you're a baby boomer or belong to the first wave of generation X (1965-1980) then your initial shopping experiences  were formed by walking into brick and mortar locations. You walked in and heard the obligatory "May I help you." "No thanks, I'm just looking, " was perhaps your answer to which the standard response probably went along the lines of: "That's fine, if you need anything my name is________". That was customer service at its most widely used level.

If we mark internet shopping beginning in full force with the start of eBay in 1995, we now have thirteen years of online shopping under our belt. For generation Y the offspring of X ,online shopping is what they've grown up with. It's what they're used to. There was never a learning curve for them. Point, click, review cart, check out or continue shopping is the norm for them.

That self directed attitude has spilled over onto the offline world. And I think it changes the way we should look at the whole idea of customer service. Except for getting your car fixed, there's not that much that can't be bought via the internet. And the internet has taught us as customers not so much to ask for help but to "manage our account."

As small and micro business owners, we are constantly told that customer service is our great advantage over our bigger rivals. But I'd like to put forth the questions are we wearing ourselves out providing something nobody wants to the extent we want to give it or are used to giving? Perhaps we should match the expectation of customer service to the goods and services that we offer.

I do not mean for us to turn our backs on customer service in terms of throwing civility and common courtesy out the window; but stop for a moment and think about your own shopping and/or service experiences. In the light of the financial mess, U.S. News.comfor the week of October 27th, reported that financial service companies were increasing their customer services; from pro-actively calling and emailing customers to providing online workshops or scheduling meetings in person. In both good times and bad when it comes to your finances, you both want and expect great customer service.

Visit a dollar store. What's the expectation besides a clean floor? Cramped isles, dubious brands, it's not a concern because it's a dollar store. The emphasis isn't put on courtesy of the personnel but availability of product dubious brand or not.

Customer service costs in terms of time and training. Even if you're the one providing it. So in these tight times I think we should re-think how we present customer service to our customers. Take the airlines; Southwest to be specific. They along with JetBlue are usually the only airlines mentioned in customer service ratings for providing exceptional service. However, most people wouldn't be up in arms if Southwest attendants stopped singing happy birthday as long as the tickets remained cheap. Wal Mart is basically a logistics company that has mastered the distribution of goods resulting in their ability to price them cheaper than almost anyone around. Like dollars stores, you don't visit a Wal Mart to be pampered but to save money.

Customer service is giving the customer what they want in the manner and time frame they want it and to provide recourse in case of error in either product/service or delivery. Before we start offering to give our customers full body massages let's make sure we've met the expectation of the customer of what we're selling in the first place.

If you're selling boot leg DVD's your first concern should be clarity of picture and sound. You can afford to scrimp on some aspect of packaging. If you're selling custom kitchen cabinets, your focus is on selection, delivery and installation; we're talking a completely different customer expectation. And just to belabor the point one last time; for most fast food emporiums the name of the game is speed and efficiency. Fries kinda cold, that's not going to send you fuming on a blog to the extent that staying at a four star hotel and getting bed bites would.

Let's find out what our customers expect from us; what they need from us, what they want from us. Answer their needs with integrity of the product or service and efficiency. Say thank you. They may be out the door or off your site before you know it. But you'll know you've met their expectations, didn't over promise or waste their time because they'll come through your door or go on your site,  point, click, review cart, check out and keep shopping again.

We Can Get By With a Little Help from our Friends: The Case for Micro Lending

Muhammad Yunus is one of my heroes.  He is one of the pioneers of the micro lending movement.  He started Grameen Bank in Bangladesh in 1976 as a way for people too poor to qualify for traditional loans to be able to borrow small amounts of money to start businesses. Micro lending is popular throughout the developing world; as these small amounts have made and continue to make a big difference in the lives of people formerly stuck in debilitating poverty. But when it comes to micro lending in the US and it's popularity, in the words of comedian Kathy Griffin "not so much".

Hopefully the global financial crisis will lead us to think differently about a number of things including micro lending as a way to help launch small or shall I say micro businesses. When I learned about the idea/philosophy behind micro lending and some of the impediments to its growth in this country, I can't help but think micro lending's time has come.

Micro lending came out of the belief  of Professor Yunus and others that the poor have skills that are under utilized. Well I don't think a sweat has to be broken to prove the case that many people in gleaming office towers, sleek industrial parks, on assembly lines and other venues have skills that are under utilized. From all classes: poor, middle, affluent and all the shades within each, there exists a great reservoir of unused talent. Survey after survey points to the fact that most people are not satisfied with their jobs. Of course in this financial climate most people are looking at their jobs like an unhappy marriage: they're staying together for the sake of the kids.

I believe with the exception of the pathologically stupid and lazy almost everyone has a talent or skill for which they can generate some form of income for themselves. And I also believe that for most people it does not take a huge amount of money to join the ranks of business owners. But the need for a small loan (and I'm talking $5,000 and under) runs into big obstacles; obstacles that we as a society have created.

In reading about why micro lending hasn't caught on the way putting a pet's picture on a credit card has; one of the primary reasons listed is basically we don't need it. Written in 2001 but still just as valid today is a white paper on micro lending in the U.S written by Mark Schreiner and Jonathan Morduch titled: Replicating Microfinance in the United States: Opportunities and Challenges ( http://129.3.20.41/eps/dev/papers/0109/0109002.pdf). In their paper, Messrs. Schreiner and Morduch state that one obstacle to the growth of micro lending in this country is our standard of living and the safe guards to insure it.

The paper states that people in developing countries don't have societal props like welfare, unemployment compensation or a boatload of fast food and other just above minimum wage jobs that you can get until times get better. In order to eat, many people in these countries have to start a business. They have to sell noodles by the roadside, make shoes from an office made from corrugated cardboard. Other than agriculture or pursuing and engaging in nefarious activities, people in developing countries have to well, develop themselves everyday into business persons; honing accounting, marketing, inventory and other skills. Each and every day by sheer necessity they have to become successful entrepreneurs.

The writers say that our safety nets tend to deter self employment. That may have been true until now. Or it should be true until now. As I have stated and will continue to state, self employment should be a part of a financial plan. Whether you choose to work your business on a part time or full time basis, if these economic times haven't taught us anything else ; it is that the only way you can guarantee not being laid off or your job sent overseas is to work for yourself. Of course I do not advocate overturning these safety nets but a recognition that in the coming months and years as we remake our economy these safety nets may change.  Just an example; what sober minded person is looking for Social Security to remain as we know it in the coming years?

The other reason given for the lack of growth of micro lending in this country is somewhat related to the first in terms of not being needed. The writers say that our banks and other financial institutions do the job that micro lending does and much more efficiently. This opinion was echoed recently in a broadcast of Business Week TV on September 5, 2008 http://www.businessweek.com/ Go to search micro lending. A segment of the program was about micro lending and how it can make a big difference to those who only need a little money or can't get qualified by traditional lenders. But an opposing view in the segment said that it's not micro lending that's needed but better banks and other financial instruments to address the needs of these constituents.

As I write this, the government is considering taking an ownership stake in some banks. Titans of finance are reeling, toppling, falling and being swallowed up. Don't ask me why but I just thought of the painting by Francisco Goya titled Satan Devouring his Son. But anyway, who owns who is the question of the moment in the financial community. For the most parts these institutions came to be where they are not because of small micro loans but by loans in the thousands and hundreds of thousand and even millions that will never be repaid.

And yes credit cards can provide you quick access to funds. But now more than ever that depends on your credit score. But no matter your credit score, the credit card companies constantly think of fees on top of hefty interest rates that may not make funding a business this way feasible or sensible in the long run.

One of the things said in the Business Week TV segment and that ties all this together; by one of the commentators during the segment was: "It's hard to be a small entrepreneur in this country." If you have decent credit and want to start a business and get a big bodacious loan from the SBA, by and large, it's not a problem. In this country we tend to want to do things big and that includes small business and that is the reason why the SBA defines a small business of the retail sort as one that generates $6MM in gross receipts annually.

For most of  us, I think it makes no sense to go out and load yourself down with a huge amount of debt for a new business. For most of us I think a great way to better secure your financial future is to start small. A great way to begin your business venture maybe while you have a job so if your budget permits you can pay-as-you-go as you build your business. And when the time comes when just a small amount of money would greatly help your business, micro lending would provide a great resource and reality check; if only for the simple fact they don't give you enough to destroy yourself.

For those who've watched their credit scores plummet under the weight of having to prioritize who gets paid, who live with the very real threat of not knowing if they will have a job tomorrow and look to business ownership for the stability their jobs may no longer provide, starting small is maybe the only choice.

Of course this is easier said than done. Even in the entrepreneur community there is still a bias against micro businesses. You can get someone to talk to you if you're talking about borrowing thousands of dollars for yet another new thing in tech (even in this economic climate). But maybe not so if you're thinking of starting a business doing house cleaning for the elderly.

Yes there's micro lenders Kiva and Accion, but their focus is still primarily on developing countries. There's Prosper.com and Richard Branson's year old Virgin Money, both financial vehicles that can provide smaller amounts of money than traditional banks.

But I hope that when we awaken from this financial nightmare, we realize that a dream of financial security, a sense of empowerment and accomplishment doesn't have to start with some grand gesture or matching funds. Business ownership often starts with small steps and small amounts of money that lead to the confident realization that you can own your own business, make a difference in your family and in your community. That's what micro finance is all about doing something small to get a big return. An obvious lesson many of our financial institutions have missed but one we shouldn't.

Succeed by Having a Frontier Market Mindset

Before you get the picture of John Wayne and covered wagons firmly in your head, when I say frontier, I'm talking about what's all the rage in investment circles right now. Financial crisis be damned. Frontier markets offer invaluable lessons that I think we as business owners and entrepreneurs can learn and grow from.

Frontier markets, for those who don't know are what China and India used to be. The term has been around since 1996 but took off last year. Frontier markets are usually countries that are less developed than say the Brazil's of the world. They do not have much of a business infrastructure like developed nations, but they have an infrastructure of energy, enthusiasm, hard work and commitment to free market systems that investors find exceedingly attractive.

As Wall Street continues to surprise and not in a good way, it's time for us on Main Street to start acting like a frontier market. Maybe you think it's too risky to start a business now. However if you're filing for unemployment compensation re-think  that. Perhaps you've already opened your doors and you're looking at the umpteenth month of making just enough to pay other people. Worse yet, you may not be making any money; not one net nickle. Don't be afraid, discouraged or depressed. Please don't give up. Think like an Estonian, a Tunisian or a Kenyan; all frontier markets that are making investment hearts skip a beat.

The October 2008 issue of Bloomberg Markets magazine(www.bloomberg.com) features an article by Yoolim Lee and Netty Ismail on another hot frontier market: Cambodia. The country is only now emerging from the nightmare years of the Pol Pot regime that existed over thirty years ago. People who left during that time have now returned to help the country and help themselves. There is a palpable energy of capitalism; of all things being possible.

The words of a former refugee who has returned  to Cambodia hit me like a two by four but caused me to think and I hope it causes you to think as well and to re-energize and re-commit yourself not just to your business but to success (however you define it) period.

"When I worked at GE, I worked hard for the shareholders, but who are they? ... Here , my shareholders are men, women and children in the streets I see every day." - Cambodian Public Works and Transport Minister, Chanthol Sun

Frontier markets may be less developed but tend to be more daring. And that's our lesson. We should be more like Mr. Sun, seeing opportunities to grow our businesses right outside our door in new and different ways and confident in the value we bring to our communities as well as our country when we take advantage of those opportunities.

These are challenging times and challenging times don't always call for caution but instead acts of daring do. Sometimes we want the ducks all in a row before starting a business or changing some things in an existing one. If just thinking about it makes you tingle; if your gut is screaming "do it"; don't let analysis paralysis or fear keep your from the thing that you know will be the key that opens the door to greater success.

Times like these will make you take Maalox intravenously but times like these offer the best rewards for those who can stomach the ride. Realize that your success may not come the way they wrote it in the book or presented it in class or talked about at that seminar. Your success will come when you take on the attitude like the people who are making things happen in frontier markets. They're  starting practically from scratch. They have nothing to lose but the chance of a lifetime.

It doesn't matter how small your business is: be daring, decisive and determined. This is absolutely the best time there is start a business. This is the one of the best times to start further mining existing customers or pursuing new ones. What do you have to lose but the chance of a lifetime when things are cheaper and deals are out there for the taking or making. Adopt a frontier market mentality. Sooner or later you'll attract the customers you want. You'll attract the people with the capitol and skills you need. They'll notice your energy, attitude and hard work and want in.

PS - As I wrote this the song "Walk Like an Egyptian" kept playing in my head, but alas the investment community doesn't consider Egypt a frontier market.

This Blog's For You

People think of business ideas while at work, while sitting in traffic or even sitting at the kitchen table. Not many people go beyond thinking and actually start their businesses. This blog's for you the ones who do.

Here at Kitchen Table Entrepreneur we think there's something very brave about striking out on one's own. We think there's something quite heroic and romantic in sacrificing what is for what can be. There's something oh so sexy about committing to a risk.

As you can tell we just love all things entrepreneurial and relevant to business ownership. And to us size doesn't matter. It's hard for us to even use the word "small" when talking about business, because if it provides you an income and/or the experience of being your own boss; there's nothing small about that.

The Kitchen Table Entrepreneur blog will be a cheerleader for business ownership. However, before we get too warm and fuzzy know that we'll be a cheerleader, but of the bi-polar type. While we'll admit to the heady excitement of owning and operating a business; The Kitchen Table Entrepreneur will also admit to the thrill being gone when you open your doors and no one comes through them - all day. Your website; your beautifully designed and optimized website: where is it? If someone is going to ruin your business which is better a stranger or a relative? We'll discuss it all; the good, the bad and the ugly; the relevant.

However in the end, we think it's all good. We invite those of you who have started a business and lived to tell to share your thoughts. We invite those of you who haven't  started your business to share in the collective genius of the people who energize and grow our economy.

It's the real deal straight up with no chaser as we discuss the reality of making your business and entrepreneurial dreams come true.