Index
Accounting software, 72–73
Acme Smoked Fish (Brooklyn, New York), 197–198
Ada’s Café (Palo Alto, California), 145
Adjacent products, selling:
as growth tactic, 182–183
as response to roadblock, 162
Adjourn Teahouse (Washington, DC), 52–53
Advertising, 115–116
Alignment Growth Strategies (Indianapolis, Indiana), 97
All Raise, 141
All Things Considered (NPR program), 161
Allied Steel Buildings (Fort Lauderdale, Florida), 15–16, 35
ARS Roofing, Gutters and Solar (Santa Rosa, California), 157–158
Audience, knowing your, 102–103
Bamboo Asia, 165
Bank accounts, 68–69
Bank loans, 83–84
Bank references, 92
Banks and banking:
beginning a business-banking relationship, 78–79
business plans as prerequisite for loan approval, 17
choosing, 75–77
Barnes & Noble, 98
Baugh, Leilani, 65–66, 171–172, 183–184
Bell, Megan Jones, 124–125
Ben & Jerry’s, 98
Benchmarking data, 24
Benefits, 146–148
Big-box stores, 181
Billboards, 116
Billing cycles, 89
Bloomberg, Michael, 62
Boards of directors, 39
Boom Supersonic (Centennial, Colorado), 100
Bottlenecks, 48
Brand building and marketing, 95–117
in business plan, 25–26
and customer experience, 98–99
earned media, 116–117
email and SMS, 110–111
knowing your audience, 102–103
photographs for website, 107–110
relationships and, 96–97
social media for, 111–115
through customers, 99–102
website design, 104–106
(See also Newman, Julie; Wilensky, Ilana)
Brex, 77
Brooklyn Community Darkroom, 9
Brown, Michael, 195–197, 200, 201, 203, 207
Brownstein, Harry, 197
Bubbly Paws Dog Wash (Minneapolis, Minnesota), 145, 151–152, 154, 182
Burt, Alicia, 141–143
Bushwick Community Darkroom, 9, 12
Business banks, 75–77
Business line of credit, 84
Business plan, 15–30
asking for help, 28–29
as blueprint for business, 17–26
and executive summary, 18–19
finances in, 23–25
Business plan
and management team, 19
and marketing, 25–26
and operations, 22–23
problem, solution, and audience, 19–21
and test marketing, 26
tips for, 27–28
Business reserve, 66–68
C corporations, 40
Callie’s Hot Little Biscuits (Charleston, South Carolina), 104
Capital (see Finances)
Care packages, 102–103
Cartography, 38
Case, Ingrid, 101–102, 130–131
Cash-flow cushion, 66–68
Cash reserve, 71
Center for Innovation & Entrepreneurship (Minnesota State University College of Business), 17
Certified public accountants (CPAs), 73–74
Chambers of commerce, 28
Checking accounts, 76
Childcare, 130
Coldwater Creek, 6
Communication, culture of, 123, 126
Community banks, 77
Community-supported agriculture (CSA) program, 8, 186–187
Construction (see Lassner, Michael)
Consulting firms, 181
Contract-to-hire arrangements, 134–135
Corporate structure:
legal issues, 36–40
LLC, 38–39
S corporations, 39–40
sole proprietorship, 37
County/city governments, 29
Courtney Foster Beauty (New York City), 96, 167–169
Covid-19 pandemic:
beauty business during, 111
Courtney Foster’s response to, 167–169
Germanee G’s response to, 166–167
product diversification as response to, 165
and remote workers, 138
selling adjacent products as response to, 162
Peter Stein’s response to, 160–161
CPAs (certified public accountants), 73–74
Creator Marketplace (TikTok), 114
Credit inquiries, 87–88
Credit limits, 92–93
Credit scores, 87
Credit unions, 77
Crocker, Bobby, 3–4, 173–174, 184–185
CSA (community-supported agriculture) program, 8, 186–187
Cudby, Ali, 97
Culture:
clear communication as part of, 123
finding employees who fit, 143–146
and holidays, 148
Customer privacy, 43
Customers:
marketing through, 99–102
repeat vs. first-time, 25–26, 184
Dance studios, 187–190
DBA, 37
Debit cards, 76
Debt, 80 (See also Loans)
Delinquent accounts, 93
Dentistry, 193–194
Dimichino, Nick, 111–113
Discounts, 101
Discrimination, 157–158
Distribution:
outsourcing of, 57–58
plan optimization, 56–58
Zellee’s approach to, 181–182
Diversification:
of geography, 165–166
of products, 164–165
Diversity, 141–143
Dividends, S corporations and, 39–40
Documentation (payment/performance risk management), 90–91
Dowd, Eriko, 182
Dun & Bradstreet, 92
Earnout, 206
Edgar, Sebastian, 106–107
Email marketing, 110–111
Employee-owned businesses, 199–200
Employee stock ownership plan (ESOP), 200
Employees:
benefits for, 146–148
considerations when selling your company, 204
freelancers vs., 132–135
how to find, 136–138
retaining, 150–152
transitioning of company ownership to, 199–200
Equinox, 98
Errors and omissions (E&O) insurance, 42
ESOP (employee stock ownership plan), 200
Exclusivity, 174
Executive summary, 18–19
Existing customers (see Repeat customers)
Experian, 92
Experience:
customer’s, 98–99
job applicant’s, 137
Family, loans from, 82–83
Family and Medical Leave Act (FMLA), 147–148
Family businesses:
survival rates, 195
transition from founders to other family members, 4–5, 196–199
Fees, bank, 76
Finances, 63–94
basics, 64–66
beginning a business-banking relationship, 78–79
in business plans, 23–25
cash-flow cushion, 66–68
choosing a business bank, 75–77
existing job as source of, 67–68
getting a bookkeeper, 71–75
getting paid by your customers, 88–89
loans, 79–86
managing payment/performance risk, 90–94
paying yourself, 70–71
separating business and personal finances, 68–70
three categories of money for business, 66–67
tips on securing loans, 86–88
Fintechs, 84–86
Firing employees, 152–154
First-time customers, 25–26, 184
Float, 92
Flowers (see Pratt, Jen)
Floyd, George, 166–167
FMLA (Family and Medical Leave Act), 147–148
Food allergy treatments, 1–2
Food businesses:
organic (see Zellee Organic)
tea, 52–53
(See also Grocers; Seafood)
Food photos, 109
Foster, Courtney, 95–96, 111, 167–169
Found, 77
Free resources, 10–12, 28–29, 191
Free samples, 100–101
Freelancers, 132–136
Fresh Sunshine Flowers (Sandpoint, Idaho), 6–7, 163
Friends, loans from, 82–83
Fundera, 85
Geographical diversification, 165–166
Giant Spoon, 115–116
Gibson, Ted, 95
Gift boxes, 102–103
Gindi, Emily Caslow, 197–198
Goldman Sachs, 191
Google Search Console, 107
Grindr, 129
Growth and scale, 171–192
building relationships with larger retailers, 180–182
finding a partner, 183–184
focusing on repeat sales, 184–185
geographic expansion, 177
going beyond your comfort zone, 176
growing business revenue, 175–192
licensing/franchising your business model, 187–190
Growth and scale
online sales, 177–179
reasons to stay small, 172–174
selling other people’s products, 185–186
subscription models, 186–187
Growth capital, 84
Gusto, 149
Hackers, 43
Hair stylists:
Courtney Foster, 95–96, 111, 167–169
website photos for, 109
Hard inquiries, 87
Heber Valley Milk & Artisan Cheese (Midway, Utah), 182–183, 191
Hecht, Jared, 85
Hedberg Maps (Minneapolis, Minnesota), 20–21
Hiring and HR, 119–155
benefits, 146–148
determining appropriate skill level, 137–138
determining right time to hire, 129–130
diversity/equity/inclusion, 141–143
embracing your role as a leader, 121–127
finding employees who fit company’s culture, 143–146
finding good employees, 131–135
firing employees, 152–154
freelancers vs. employees, 132–135
hiring for childcare/home tasks, 130–131
and job descriptions, 132
job interviews, 139–141
making your first hire, 128
payroll issues, 148–150
remote workers, 138
for restaurants, 119–121
retaining talent, 150–152
scaling your team, 127–128
Holidays, 148
Homebase, 149
Household help, 130
HR (human resources) (see Hiring and HR)
Ice cream (see Pesso’s Ices & Ice Cream)
Ikea, 98–99
INCase LLC, 38
Incorporation, 41 (See also Corporate structure)
Influencers, 101
Information:
flow within an organization, 122–123
and operations, 48–49
Instagram:
for job candidate searches, 138
Instagram Business Account, 114
Insurance, 42–43
Intellectual property, 42
Interest payments, 80
Interest rates, 85
Intuit, 149
Inventory management, 53–54, 179
Investors:
business plans as prerequisite for, 17
repayments to, 24–25
Invoicing system, 89
IRS, 133
Jewel Branding and Licensing (Atlanta, Georgia), 31–32, 69, 77, 164–165
Job descriptions, 132
Job interviews, 139–141
Journalists, 116–117
Keep Your Customers (Cudby), 97
Keyword research tool, 106–107
Klein, Tim, 101–102
Ku, Samantha, 59
Larrow, Audre, 108–110
Lassner, Michael, 15–16, 35, 36
Lawyers, 44
Leadership:
and HR practices, 121–127
and self-care, 124–127
taking responsibility for your role, 122–124
Legal issues, 31–44
benefits decisions and, 147
corporate structure, 36–40
franchises, 43
freelancers vs. employees, 133
funding of legal requirements when starting a business, 65
partnerships, 33–36
payroll errors, 150
Lele, Meenal, 1–2
Liabilities:
insurance and, 42–43
LLCs and, 38–39
S corporations and, 39
separating business and personal finances, 68
Licensing:
franchising vs., 190
incorporation and, 42
in oyster business, 50
of your business model, 187–190
(See also Newman, Julie; Wilensky, Ilana)
Lil Mixins, 2
Limited-edition merchandise, 58
Line of credit, 84
LinkedIn, 138
Listening, 101
LLC (limited liability company), 38–40
Loans, 79–88
bank loans, 83–84
beginning a business-banking relationship, 78
business plans as prerequisite for approval, 17
credit cards as source of, 81–82
fintechs and online lenders, 84–86
friends and family as source of, 82–83
questions to ask of lenders, 85–86
tips on securing, 86–88
The Local Grocer (Flint, Michigan), 7–8, 185–187
Logistics (see Operations and logistics)
Lululemon, 98
Luxury Estate Managers of Aspen (Colorado), 160, 174
Macro-influencers, 101
Magnolia Street Wine Lounge & Kitchen (Oakland, California), 171
Management team, business plan and, 19
Margins:
loans and, 80
marketing and, 25
operations and, 46
Marketing (see Brand building and marketing)
Marketing materials, 42
Marketing partnerships, 103–104
Mercury, 77
Micro-influencers, 101
Miller, Keith, 145–147, 151–152, 154, 182
Miller, Patricia, 147
Mindfulness, 124–125
Minorities, corporation ownership and, 41
Mistakes, 122
Money (see Finances)
Money, three categories of, 66–67
Montgomery, Andy, 105
MYT Automotive (Columbia Falls, Montana), 35
Name, business, 42
National Public Radio, 161
Nature Valley Innovation (Golden Valley, Minnesota), 46–47
News media, 116–117
Noncompete agreements, 204
Obstacles (see Roadblocks)
Office of Capital Access (SBA division), 11
O’Kelly, Lisa, 22–24, 26, 55–56, 180–182
Omakase Capital, 165–166
Online advertising, 115
Online banks, 77
Online lenders, 84–86
Online sales:
avoiding common pitfalls, 178–180
expansion into, 177–178
shifting to, 164
Operations and logistics, 45–62
adjusting as you go, 58–59
business plan and, 22–23
distribution plan optimization, 56–58
examining your sales data, 59–61
finding the right suppliers, 51–53
inventory management, 53–54
manufacturing processes, 54–56
as process management, 46–47
sourcing of raw materials, 49–51
using data to design an efficient workflow, 48–49
Orum, 98
Overseas manufacturing, 23
Owner’s insurance, 42
Ownership (corporation), 41
Oysters (see Stein, Peter)
OysterTracker inventory management software, 53–54
Pampered Pooch Playground (Minneapolis, Minnesota), 146, 151–152, 154
Pandemic (see Covid-19 pandemic)
Park, Min, 165–166
Part-time workers, 135
Pass-through entity, 37
Passion, personal, 5–6
Payment (customer), 88–89
Payment risk:
agreements and documentation, 90–91
dealing with, 91–94
decreasing, 92–94
managing, 90–94
Payroll, 148–150
Peeko Oysters (New Suffolk, New York), 6, 45–46
Performance reviews, 151
Performance risk, 90–91
Personal banking, 78
Personal liability (see Liabilities)
Personal networks, 29
Personal passion, 5–6
Personal trainers, 3–4, 173–174, 184–185
Pesso’s Ices & Ice Cream (Bayside, Queens, New York):
hiring of employees, 136–137
job interviews, 139
managing payment risk, 90
and sales data, 59–61
transitions in family business, 4–5
Pet services (see Miller, Keith)
Photography:
Bushwick Community Darkroom, 8–9, 12
for business website, 107–110
Pike Place Market (Seattle, Washington), 145
Pinterest, 115
Pleasant, Franklin, 7–8
Press releases, 116
Pricing:
testing higher/lower, 175–176
when selling goods from other suppliers, 186
when selling your business to another company, 205
Privacy issues, 43
Process management, 46–47
Product diversification as response to, 165
Promotions, 117
Publicly traded corporations, 40
QuickBooks, 203
Racial discrimination, 157–158
Radio advertising, 116
Rathmann, Kurt, 71–75
Raw materials, 49–51
Reference checks, 123
REI (Recreational Equipment, Inc.), 144–145
Relationships, marketing and, 96–97
Religious holidays, 148
Renter’s insurance, 42
Repayments, 24–25
Repeat customers:
as critical to growth, 184–185
marketing to, 103–104
new customers vs., 184
Reporters, 116–117
Research, business plans and, 20
Restaurants:
Marc Bash and, 119–121, 135, 139
Leilani Baugh and, 65–66, 171–172, 183–184
common pitfalls of online sales, 178–179
hiring employees, 119–121
Min Park and, 165–166
Retirees, business plan assistance from, 29
Revenue:
separate bank account as proof of, 70
testing pricing up/down, 175–176
Risk management, 90–94
Risk tolerance, 80
Roadblocks, handling, 157–170
finding a new group of customers, 160–161
finding customers who value what you offer, 169
geographical diversification, 165–166
letting go of less profitable goods/services, 163
product diversification, 164–165
selling an adjacent product, 162
selling what your customers are buying, 166–167
teaching clients to help themselves and each other, 167–169
Roofing companies, 157–158, 169
Rooster & Rice, 165
Roux and Vine (Oakland, California), 65, 171
Rusenko, David, 177–179
Safety precautions, 42
Sage Business Credit (Minnetonka, Minnesota), 91–92
Salary:
paying yourself, 70
S corporations and, 39–40
Sales data, examining, 59–61
SBA (see Small Business Administration)
Scaling a business (see Growth and scale)
Schedule C, 37
Schriefer, Heidi:
on firing decisions, 153–154
on hiring decisions, 129, 132, 148
job interview questions, 140
on performance reviews, 151
on skills of potential employees, 137
Sciabica, Jonathan, 48–49, 56–59
Sciabica Olive Oil (Modesto, California), 48–49, 56–59
Seafood, 197–198 (See also Stein, Peter)
Search engine optimization, 106–107
Security breaches, 88
Self-care:
and customer insights, 125–127
leadership and, 124–127
Self-promotion, 176
Self-serve marketing platforms, 113–114
Selling your business to another company, 200–206
alternatives to, 206–207
cleaning house, 203–204
deciding when to sell, 201
metrics for valuation, 205
negotiating a deal, 204–206
risks of delaying, 202
running your company during the sale, 202
Shares, public, 40
Shopify, 179
Shutting down a business, 206–207
Skluzacek, Lisa, 46–47
Small Business Administration (SBA):
free resources available from, 11, 28, 81, 191
Small business development centers, 28
SMS, 110–111
Snapchat, 114
Social media:
Courtney Foster Beauty and, 96
and Courtney Foster’s response to Covid pandemic, 167–169
Soft inquiries, 87–88
Software:
accounting, 72–73
and customer privacy/security, 43
inventory management, 53–54
Sole proprietorship, 37
Solomon, Lisa Kaye, 125–127
Sponsorships, 116
Square Financial Services, 59
Standardization:
of processes, 61
of workflow, 48
Start Small Think Big, 12
Statements of purpose, 144–145
Stein, Peter:
on direct sales, 58
finding the right suppliers, 51–52
following his personal passion, 5–6
inventory management, 53–54
manufacturing processes, 54
operational challenges for oyster business, 45–46
response to pandemic, 160–161
sourcing of oysters, 49–51
Stress, 125
Structure of company, 32 (See also Legal issues)
Subscription models, 186–187
Superlatives, avoiding, 27
Suppliers, 51–53
Supply chain, 58–59
Swivel, 168
Talent, retaining, 150–152
Target, 182
Taxes:
sole proprietorship, 37
timely payment of, 43
Taylor, Natalie:
on bank accounts, 76
on loans from friends or family, 82–83
on paying yourself, 70–71
on separating business and personal finances, 68
Tea, 52–53
Television advertising, 116
1099 tax form, 149
10,000 Small Businesses (Goldman Sachs program), 191
Test marketing, 26
Tidal, 112
TikTok, 114
Toast, 179
Transitions, 193–208
alternatives to selling your business, 206–207
building a business someone else could run, 194–196
keeping family businesses in the family, 196–199
of ownership to employees, 199–200
selling to another company, 200–206
Turnquist, Karen, 91–93
Tutu School (San Francisco), 187–190
Twin Cities Pride, 152
UPS, 161
US Department of Commerce Export Assistance Centers, 23
USPS, 56
Utah’s Own, 191
Valuation metrics, 205
Values (see Culture)
Vendor references, 92
Vision, 27
Volatility, cash-flow cushion to counteract, 66–68
Walmart:
Zellee and, 182
Wardrobe stylists, 63–64, 166–167
Website:
design, 104–106
photographs for, 107–110
search engine optimization, 106–107
Weebly, 177
Weeks, Genevieve, 187–190
Weinberg, Jeremy, 33–34
White, Alana, 115–116
Whole Foods, 181
Wild Rumpus (Minneapolis, Minnesota), 99
Wilensky, Ilana:
on choice of bank, 77–78
on diversifying business offerings, 164–165
and partnerships, 31–32, 35–36
on paying yourself a monthly salary, 70
separating finances into different bank accounts, 69
Women, corporation ownership and, 41
Work-life balance, 174
Workflow:
and customer payments, 89
using data to design, 48–49
Workforce Investment Boards, 29
Yahoo!, 100
Yardley, Mike, 35
YouTube, 114
Zellee Organic:
adjustments to supply chain, 58
building relationships with larger retailers, 180–182
manufacturing process issues, 54–56
operations issues, 22–23