Self-Made Boss

Introduction

In "Self-Made Boss," Jackie Reses provides a comprehensive guide for aspiring entrepreneurs and small business owners. The book serves as a practical starter kit, offering valuable insights and advice on how to launch and run a successful small business. With approximately 30 million small business owners in the United States alone, this book aims to bridge the gap between inspirational business literature from Fortune 500 CEOs and the practical needs of local entrepreneurs.

Small businesses are more than just economic contributors; they are the lifeblood of communities, giving neighborhoods character and holding the social fabric together. Whether you're looking to open a neighborhood pizza joint, a local bookstore, or any other small business, this book offers tailored advice to help you navigate the challenges of entrepreneurship.

Key Ideas

1. Leveraging Free Business Resources

One of the most valuable pieces of advice for aspiring entrepreneurs is to tap into the wealth of free business resources available. In the United States, the Small Business Administration (SBA) is an often-overlooked treasure trove of support for small business owners.

The SBA offers a wide range of services, including:

• Helping workshop business ideas from the ground up
• Assistance with obtaining loans
• Guidance on drawing up initial contracts
• Connecting entrepreneurs with suitable mentors

These resources can save you significant time and money, potentially helping you avoid costly mistakes that many new business owners make. The SBA's experienced staff members have likely encountered most common business problems before and can provide valuable insights to help you navigate potential pitfalls.

Even if you're not in the United States, there are likely similar resources available in your area. Many countries have nonprofit organizations, public resources, and networks dedicated to supporting small businesses and entrepreneurs. The key is to seek out these resources and take advantage of the support they offer.

Action steps:

1. Research and identify the small business support organizations in your area
2. Reach out to these organizations and inquire about their services
3. Attend workshops, seminars, or networking events they may offer
4. Schedule a meeting with a business advisor or mentor through these organizations

Remember, there are people and organizations out there who want to help you succeed. Don't hesitate to reach out and make use of these valuable resources.

2. Crafting a Solid Business Plan

Starting a small business is inherently risky, with only about half of new businesses surviving their first five years. To improve your chances of success, it's crucial to approach your venture systematically, and that's where a well-crafted business plan comes in.

A business plan serves multiple purposes:

1. It's often required when seeking grants or loans
2. It demonstrates to others that you're serious about your venture
3. It helps you articulate your vision and outline your plans for achieving your goals
4. It forces you to research your industry and think objectively about your business

Even if you're not seeking external funding, writing a business plan is an invaluable exercise that can positively influence your entire business strategy.

Key components of a business plan:

1. Executive Summary: This is your chance to tell your story engagingly. Briefly outline the problem you're solving, your solution, and your target audience. While it appears first in the document, it's often easier to write this section last.

2. Detailed Sections: The rest of the document should be more concrete and objective. Include:

   • Market analysis
   • Company description
   • Organization and management
   • Product or service line
   • Marketing and sales strategies
   • Funding requirements
   • Financial projections

Tips for writing an effective business plan:

• Write objectively, backing up claims with evidence and statistics
• Be selective with information, presenting yourself and your team in the best light
• If targeting investors, consider hiring an accountant to help with financial projections
• Avoid gimmicks or unnecessary extras when presenting your plan
• Focus on clearly articulating the problem you're solving and why customers would pay for your solution

Remember, the process of creating a business plan is as valuable as the final document itself. It forces you to think critically about every aspect of your business and can help you identify potential issues before they become real problems.

3. Handling Incorporation and Licensing

While legal paperwork may not be the most exciting part of starting a business, it's a crucial step that can't be avoided. Taking care of incorporation and licensing requirements from the outset can help you avoid fines or even having your business shut down later on.

The first step is deciding on your corporate structure, which will determine how your business is taxed and operated. Here are the main options:

1. Sole Proprietorship:

   • Simplest form of incorporation
   • Only requires filing a "Doing Business As" (DBA) form
   • Pass-through entity for tax purposes
   • Owner is 100% responsible for business liabilities and debts

2. Limited Liability Corporation (LLC):

   • Offers personal asset protection
   • Can have multiple owners
   • Relatively simple to set up (about two hours of paperwork)
   • Also a pass-through entity for taxes

3. S Corporation:

   • Similar to an LLC but with more formalities
   • May be preferred by some investors, lawyers, and advisors
   • Requires a lawyer to set up

4. C Corporation:

   • Allows for multiple types of stock shares and unlimited shareholders
   • Necessary if you plan to raise capital by selling shares
   • Taxed twice (corporate level and shareholder level)
   • Requires a lawyer to set up

When choosing your corporate structure, consider factors such as:

• How many owners the business will have
• Your plans for growth and expansion
• Your desired level of personal liability protection
• Tax implications

In addition to incorporation, you'll need to look into licensing and insurance requirements for your specific industry. An insurance broker can be helpful in determining what coverage you need.

Action steps:

1. Research the pros and cons of each corporate structure
2. Consult with a lawyer or accountant if you're unsure which structure is best for your business
3. File the necessary paperwork for your chosen structure
4. Investigate industry-specific licensing requirements
5. Meet with an insurance broker to determine necessary coverage

By taking care of these legal and administrative tasks early on, you'll be able to focus on running and growing your business with peace of mind.

4. Designing Efficient Operational Workflows

Once you've taken care of the legal aspects, it's time to focus on the day-to-day operations of your business. Efficient operational workflows are crucial for small businesses, which typically operate on thin margins. By paying close attention to every aspect of how your company runs, you can optimize for efficiency and increase your chances of success.

Key steps in designing efficient workflows:

1. Observe and document:

   • Take time to carefully observe all aspects of your business operations
   • Document everything from sourcing materials to inventory management, distribution, and sales processes

2. Standardize and systematize:

   • Create standardized procedures for all routine tasks
   • Develop systems to ensure consistency in how these tasks are performed

3. Use data to your advantage:

   • Collect and analyze data on your processes
   • Use this information to identify problems or inefficiencies

4. Test and improve:

   • Regularly test new solutions to improve your workflows
   • Be open to making changes based on the data you collect

Case study: Pesso's Ices & Ice Cream

The story of Pesso's Ices & Ice Cream in Bayside, New York, provides a great example of how careful observation and analysis can lead to significant improvements in a small business:

1. The owner closely examined all aspects of the business, from ingredients to spoon prices to hiring practices.
2. He noticed that the shop barely made money before 2 PM and adjusted opening hours accordingly.
3. A full cost analysis revealed that ingredient costs had risen dramatically without corresponding price adjustments. He changed the pricing and sizing of ice cream scoops to improve margins.
4. Less popular menu items like floats were eliminated to simplify operations and focus on core products.

The results of these changes were largely positive. While a few customers complained, most didn't notice or even appreciated the simpler menu. The business saw improved margins and was able to focus more on quality.

Tips for optimizing your workflows:

• Start by observing your systems from multiple angles
• Look for opportunities to simplify processes
• Collect as much data as possible to move from reactive to predictive decision-making
• Regularly review and adjust your processes based on changing customer demands and market trends

Remember, as Mike Bloomberg said, "In God we trust. Everyone else: bring data." By basing your operational decisions on solid data and continually striving for improvement, you'll be better positioned to adapt to changes and grow your business over time.

5. Building a Strong Brand and Creating Buzz

Creating a strong brand and generating buzz in your community is crucial for the success of your small business. Remember, 70% of purchasing decisions are based on how a customer feels during a transaction. To keep customers coming back and make your business their go-to choice, you need to form a bond based on trust and create a memorable experience.

Here are some key strategies for building your brand and creating buzz:

1. Create a signature experience:

   • Design a unique and engaging experience for your customers
   • Put love and creativity into every aspect of your business
   • Example: Wild Rumpus bookstore in Minneapolis, which features live animals and whimsical exploration areas

2. Develop a strong web presence:

   • Build a professional website with all necessary information (hours, location, etc.)
   • Tell your story and connect with customers on a human level
   • Invest in professional design and photography to establish credibility

3. Leverage social media:

   • Establish a presence on at least one or two platforms
   • Aim to post 3-5 times per week
   • Share new inventory, weekly specials, and promotions
   • Be persistent in growing your social media following

4. Use traditional publicity methods:

   • Place ads in local papers
   • Sponsor community activities for free press coverage
   • Send out press releases for special events or new openings

5. Encourage word-of-mouth marketing:

   • Offer free products or services initially to generate buzz
   • Solicit feedback from early customers to improve your offerings

6. Invest in branding:

   • Create a memorable logo and consistent visual identity
   • Consider hiring a graphic designer to help establish your brand

Remember, building a strong brand takes time and effort, but it's essential for long-term success. By creating a unique and memorable experience for your customers and consistently promoting your business through various channels, you'll be able to generate buzz and build a loyal customer base.

6. Adapting to Unexpected Setbacks

Even when your business is running smoothly, it's important to prepare for unexpected setbacks. These can range from everyday issues like traffic jams and unreliable employees to larger-scale problems like changing consumer behavior or global events such as pandemics.

To weather these storms and keep your business thriving, focus on two key strategies:

1. Be observant:

   • Keep a close eye on your company's sales information
   • Compare your data to consumer trends and customer feedback
   • Pay attention to gradual changes that could affect your business

2. Be flexible:

   • Cultivate the ability to pivot when necessary
   • Continuously ask yourself how you can adapt or improve your business
   • Stay committed to evolving your offerings based on market demands

By combining observation and flexibility, you'll be better equipped to find new opportunities when your initial approach isn't working. Here are some ways to put these strategies into practice:

1. Regularly analyze your sales data and market trends
2. Seek feedback from customers and employees
3. Stay informed about industry news and developments
4. Be open to creating adjacent products or services if your primary offering isn't selling
5. Consider reaching out to industry experts for advice when facing challenges

Case study: Etsy sellers during the COVID-19 pandemic

During the early stages of the COVID-19 pandemic, many Etsy sellers who typically sold festival fashion items saw their sales plummet as events were canceled worldwide. In response to changing market demands, Etsy executives advised sellers to pivot to making face masks. This flexibility allowed many small businesses to survive and even thrive, with mom-and-pop shops selling $500 million worth of masks in just a few months.

When facing a roadblock in your business, ask yourself:

• Is it time to double down on your original vision?
• Should you recalibrate your approach?
• What does the data tell you about the best course of action?

Remember to rely on data rather than gut feelings when making important decisions about the future of your business.

Final Thoughts

Becoming a self-made boss is an exciting and challenging journey. As an entrepreneur, you're joining a community of daring individuals who see problems in the world and decide to become part of the solution. Whether you're a creative looking to turn your passion into a profession or someone inspired to give back to your community, starting a small business allows you to build something from the ground up.

To turn your entrepreneurial spark into a successful business, follow these key steps:

1. Leverage free resources: Connect with organizations like the Small Business Administration to access valuable support and guidance.

2. Create a solid business plan: Take the time to articulate your vision, research your market, and outline your strategies for success.

3. Handle legal requirements: Incorporate your business and obtain necessary licenses to ensure you're operating legally from the start.

4. Optimize your operations: Design efficient workflows by observing, standardizing, and continuously improving your processes.

5. Build a strong brand: Create a signature experience for your customers and use various marketing channels to generate buzz.

6. Stay adaptable: Remain observant of market trends and be flexible in your approach to overcome unexpected challenges.

Remember that success in small business often comes down to persistence, creativity, and a willingness to learn and adapt. By following the advice in "Self-Made Boss" and staying committed to your vision, you'll be well-equipped to navigate the challenges of entrepreneurship and build a thriving business.

As you embark on your journey as a self-made boss, keep in mind that you're not just building a business – you're becoming part of the fabric of your community. Your success can contribute to the character and vitality of your neighborhood, creating jobs and fostering connections among local residents.

Stay focused on your goals, but don't be afraid to adjust your course when necessary. Embrace the learning process and celebrate small victories along the way. With dedication, hard work, and the right strategies, you can turn your entrepreneurial dreams into reality and join the ranks of successful self-made bosses who are making a difference in their communities and beyond.