GREAT 15 IDEA: Join or Create a Peer Support Group

Tight budgets and soft sales during the recession pushed savvy business owners to turn to each other for free advice rather than hiring consultants. What began as a cost-cutting measure is still yielding invaluable benefits as business picks up, according to members of three informal, peer-to-peer business support groups.

Members say they look forward to their monthly gatherings to share contacts, tackle tough problems, and brainstorm together to dream up marketing strategies. They also rely on each other for motivation and inspiration.

“We always ask, ‘How can we help each other and what information can we share?” said Alison Raffaele, a makeup artist, beauty products entrepreneur and member of Beautiful New York. (Alison did my makeup for the photo on the back of this book.) “One member shared a contact that helped me get a $20,000 loan guaranteed by the Small Business Administration.”

The members of Beautiful New York all make beauty or personal care products. Peace-Keepers Cause-metics sells natural lipstick and nail polish and donates its profits to organizations helping women. Juara Skincare makes and sells Indonesian-inspired complexion products. Raffaele is a makeup artist who sells a line of concealer and foundation. The only rule is that members can't compete directly with each other. In fact, they look for ways to promote each other's products as well as share distribution channels and sales reps.

Raffaele said sometimes members benefit by asking if a vendor is reliable or whether a boutique pays its bills on time. “We are all looking to increase our distribution channels at a time when the channels have changed.”

Metta Murdaya, cofounder and owner of Juara Skincare, which sells skin and body care products containing ingredients found in Indonesia and elsewhere, said she looks forward to the monthly gatherings because they “keep everyone energized.”

“The one thing we have in common is that we are female entrepreneurs in the New York beauty space,” said Murdaya. “We meet to share resources, sales reps, distributors, and press contacts.” She said they've also held successful joint marketing events such as opening temporary “pop-up” stores. (Juara provided the first prize for our “Great Ideas” contest.)

Two Minnesota-based entrepreneurs have taken the peer-to-peer counseling model a step further by serving as vice presidents of each other's companies.

Michelle Massman owns a marketing and event management firm in Minnesota. Every year, she produces a popular women's trade show. She also worked with me to round up sponsors for my book promotion tour and crafted our social media strategy. One of her other clients is Shaun Johnson.

Johnson is the founder and co-owner of Tonic Sol-fa, LLC, an entertainment company that owns and manages Tonic Sol-fa, a super successful all-male a cappella group. Tonic Sol-fa performs at sold-out concerts, sells thousands of CDs and song downloads, and produces popular holiday specials for PBS. I attended their holiday concert in Minneapolis and it was fantastic. A blizzard the day before did not stop fans from attending the concert.

“When Shaun and I first met, we were inches away from being totally burnt out,” Massman told me. “The first conversation we had lasted three and a half hours. After that, we started looking at each other's companies in a different light. It is great to have someone to help you dig in and work on new strategies.”

Although Massman and Johnson initially worked together informally to solve business challenges, they now serve as vice presidents of each other's companies and pay each other for services rendered. It's worked out well for both companies, which managed to keep busy during the Great Recession.

If you prefer to join an existing organization, check out The Alternative Board (www.thealternativeboard.com). TAB is an international franchise organization with more than 3,000 members in the United States, Canada, the United Kingdom, and Venezuela.

Founded in 1990 by business author Allen Fishman, TAB hosts monthly meetings as well as providing consulting services. Fees vary depending on the location, so contact TAB for details.

Ladies Who Launch has more than 100,000 members across the United States. This active group has a dynamic web site and newsletters designed to encourage networking and bootstrapping among members. Chapters across the country host monthly luncheons, seminars, and workshops. LWL is a national sponsor of my 201 Great Ideas book tour. For more information, visit www.ladieswholaunch.com.

The Women Presidents' Organization (www.womenpresidentsorg.com) has 82 chapters and about 1,500 members in the United States, Canada, and the United Kingdom. Members are required to have $2 million in annual revenues ($1 million if it is a service business). WPO members meet monthly with a trained facilitator. The basic annual membership fee is about $1,650. Contact WPO for more information.

There are many other groups providing peer support and motivation for busy entrepreneurs. Joining your local chamber of commerce is a good place to start. Be sure to attend the monthly mixers and get to know as many members as possible. For more information visit the Chamber of Commerce of the United States web site (www.uschamber.org).

If you are interested in how politics affects business, join Women Impacting Public Policy (WIPP). The group tracks legislation and keeps tabs on elected officials (www.wipp.org).

Minority business owners can also contact the National Association of Minority Contractors (www.namcnational.org) and the U.S. Hispanic Chamber of Commerce (www.ushcc.com).

Franchise owners should consider joining the International Franchise Association. For more information, visit www.franchise.org.