Small Business 101

How to Run Your Business Like a Girl

If you are thinking about starting your own business, you probably have tons of questions about where to start. Get advice from Small Business 101 to learn more about the basics of entrepreneurship.

Elizabeth Cogswell Baskin is an entrepreneur whose current company, Tribe, Inc., is a two-million dollar advertising agency working with national brands like Porsche, Home Depot, UPS, Whole Food Markets and Mannington Floors. Throughout her career, Elizabeth has always conducted business differently than her male counterparts. Until she began to see other successful women entrepreneurs, she assumed her success wasn't the norm.

While writing the book, "How to Run Your Business Like a Girl" (Adams Media), Elizabeth interviewed dozens of female small business owners and found that they all placed a strong emphasis on intuition, work relationships and quality of life.

The transcript follows below.

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Elizabeth Cogswell Baskin: Hello, everyone. I've never done one of these before, so I'm looking forward to chatting this way.

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Greenbelt, Md.: I am 26-years-old, with a bachelor's degree in communications (radio/t.v.). What's the most important piece of advice to someone like me who is thinking about starting a business with no prior knowledge of where to start and no business education background?

Elizabeth Cogswell Baskin: Hello, Greenbelt. I'd say the most important piece of advice would be to start a business in some area where you feel a strong passion. Many people find it easier to start a company (particularly if it's a professional services company like advertising or law or interior design) after they've built up a number of years of equity in their chosen profession. Not to mention a wide web of business contacts, which can be the source of business and referrals. I don't know that you need a business education background. But you do need to be very good at something that other people or companies want to buy.

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Washington, D.C.: A friend and I are looking to start a real estate investment company. The business license will soon be filed in Georgia, where I am from and where my business partner resides. I am now living in the state of Virginia. I will be taking the SBDC course (which gives you fundamental/foundational information on business plans, grants, etc) in the next couple of months in Virginia and she will be taking the course in Georgia. We have currently put a down payment on a property in Georgia that will close in April. The property will be initially titled in our names, however once we get the licensing, etc. established, we will be rolling the property over into the business name. We are minority women and would like to search for grants because the next focus of our investment properties will be to provide housing (retirement village) to low-income residents 55 years or older. What steps would we need to take in order to get things in order? Thanks so much!

Elizabeth Cogswell Baskin: I'm not qualified to give you the exact steps, but I know Georgia is a very pro-women-owned business state. I'd suggest contacting someone in the office of Cathy Cox, the Georgia Secretary of State, who is very big on women in business. They may be able to suggest possible sources for grants. Sounds like a good business idea. The elder market is certainly growing.

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Temple Hills, Md.: Hi Elizabeth.

My husband and I work full time jobs and we are fabulous cooks. Our friends tell us all the time we should open up our own restaurant. The problem is neither one of us has any food service experience in terms of working in a restaurant. What should be some of our first steps we should take to make this dream come true? We would love to own a restaurant.

Thanks for your advice.

Elizabeth Cogswell Baskin: Well, it might be prudent to get weekend or evening jobs in a restaurant you respect,  just to get an insider's view of how it all comes together. But I've known several people with no restaurant experience who have succeeded just fine by jumping in. One friend started a wine bar and restaurant here in Atlanta and after several successful years sold it to move to Asheville, N.C. His previous background was in mental health, working primarily with schizophrenics. Maybe that's the perfect background.

The truth is you can probably figure out the food service experience part as you go along. But you might want to involve a partner who does have a background in restaurant management. Of course, then that gives you the always-tricky three partner dynamics.

I'm working now on a new project that's a How to Start a Business deck of cards. The process of starting a business is sometimes overwhelming because it involves so many, many small steps. The business cards break it down for you, and let you arrange them in the order you think you need to tackle things. For instance, you'd need to find restaurant space, come up with a name and logo, develop your menu, hire wait staff, buy plates and glasses... You might try making a deck of steps yourself out of index cards. Then you can put them in the appropriate order. And make sure you get all the cards you can knocked off the list before you quit those full time jobs!

Good luck.

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Buffalo, N.Y.:

Ironically, up until mid-July of this year, I was involved in preparing an article about successfully managing a "workforce transition", a.k.a. a layoff. Just after submitting the article, I was laid-off by the organization I worked for. Within 48 hours, I received a job offer, which I declined, in part because I'm at a point in my life when I'd prefer to work as an freelance writer/editor -- a female-dominated field.

Can you point me toward one good resource for developing client base? As an experienced technical and business writer, I know how to ply my trade, but very little about selling myself as a writer/editor.

Elizabeth Cogswell Baskin: Good for you, for being brave enough to turn down a job. The trick to selling yourself as a freelancer is just to let people know you're out there. You need to be networking like crazy. Call up everyone you know and let them know you're freelancing and eager for work. If you're seeing this new chapter as a slightly different direction for the kind of work you do, make sure you have a short one-sentence description of what kind of work it is you're looking for. Also, a great business card helps. Hand it out to people you meet, enclose it in an introduction letter to prospects. Generally, once you break into a company as a freelancer, they'll call you again and again, assuming you do a good job. So in the beginning, you may have to put more energy into finding clients. Take comfort in the fact that later, it will be easier, after you've developed some client relationships.

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Dayton, Ohio: What's the best way to network?

Elizabeth Cogswell Baskin: The best way to network is to be interested in other people. Take the focus off yourself and concentrate on getting to know them and finding out if there are any ways you can help them or people you know who might be a good referral for them.

In my book, Chellie Campbell gives some great pointers for networking. She's a real pro. Goes to several functions a week and gets almost all her clients that way.

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Washington, D.C.: Thanks for answering my question. I have one more question. The form of ownership that we are looking to establish is LLC. Can you offer any pros and cons? Thanks again!

Elizabeth Cogswell Baskin: I'm not a lawyer, but I know LLC's are very popular over the last several years. I've always liked corporations, myself, but I don't think there's a wrong answer. I'd trust your lawyer's recommendation, after you explain all the particulars of your situation to your lawyer.

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Bethesda, Maryland: Hello Elizabeth,

I would like to open a small marketing, advertising, and public relations firm all in one. What would be my first step in the process?

Thank you.

Elizabeth Cogswell Baskin: The first step would be to find a client.

Actually, you might want to start with figuring out what would make you different from any other marketing firm and why clients would hire you. What would be the things that set you apart?

You might try writing a Web site first, as a way to get a handle on what your agency will be. Then start networking like crazy and try to land some client projects. One of the three women profiled in depth in my book runs a NYC public relations firm and I also write a lot in the book about our early days starting my first ad agency. You might find some useful thoughts in there.

Good luck!

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Washington, D.C.: I'd like to start a VERY small business, and as a result, I'd like to keep initial start-up costs low. What are the best places for advertising and marketing on a small scale? Would places like my college alumni association be a good place to start?

Elizabeth Cogswell Baskin: I'd say you should skip advertising at first, and depend on word of mouth and possibly PR. If your business has an interesting angle, you might send out press releases about your launch and see if you can get some media coverage.

Are you starting a service business or selling a product?

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Rockville, Md.: What advice can you give for someone who gets discouraged sometimes from starting a business?

Elizabeth Cogswell Baskin: Don't do it. It's not worth the headaches and hard work unless it's something you're really dying to do. It's not something you should force yourself into.

Not everyone enjoys running their own business. Maybe you just want a job you really love?

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Frederick, Md.: Never heard of your book before ... what exactly does it focus on in regards to women entrepreneurs?

Elizabeth Cogswell Baskin: The book focuses on the ways in which women entrepreneurs tend to run their businesses a little differently from the guys. Most women business owners tend to place more importance on their intuition, on building strong business relationships and on quality of life.

It profiles three women-owned businesses in depth and also contains Q&A segments of about 30 others answering all sorts of questions, like how much startup capital they had, what's the dumbest thing they ever did, and so on.

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Anonymous: Many women I know have tried and almost universally failed to make a business out of something they like doing, like quilting or being a freelance travel writer.

How do you tell a real business model from a pie-in-the-sky idea?

Elizabeth Cogswell Baskin: Pie-in-the-sky ideas are sometimes the best place to start, but you've got to make sure your idea is for something people really want to buy, in enough numbers to make you a living.

I think the trick is to be passionate about your business, but also treat it like a business and not a hobby. Finding clients or customers is something you have to spend a lot of time and energy on. And you should think through the prices the market will bear, what it costs you in time and materials to have something to sell, who else is out there selling it, and most importantly, what need do potential customers have that current companies aren't solving.

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Rockville, Md.: I have been trying to open a seminar company for the past year. I have my business plan written and a good target audience, but now I'm stumped. What do I do now? How do I market and how do I attract new clients? Who can I talk to who would give me advice on the best track to take? Mostly people tell me to just forget it because it's too much work, which is not what I want to hear. Any suggestions?

Elizabeth Cogswell Baskin: That's funny, that people are telling you to forget about it because it's too hard. It probably is hard, but most things that are worthwhile are a little difficult sometimes.

You are stumped at exactly the point where your business plan becomes a business -- finding clients. You need to talk to people who buy seminars, I'd say. People love to help startups. Call up a handful of people in human resource departments or whoever you expect your market to be and ask if they'd spend a few minutes with you refining your company plans. Don't take too much of their time and don't, whatever you do, make them read your whole business plan. Just give them a brief summary of what you plan to provide and what makes your seminars special and get their reactions. The feedback they give will be very useful so you can tailor the company's offerings to your potential clients needs, but also, when you leave their office, you'll have made an important contact. In your sort of business, I think most of your clients would come from word of mouth. If you change something about your business based on their feedback, follow up and let them know you did. Keep in touch with them. Thank them for their help. And then get out there and meet with more people. You need a big dose of networking to get your company off the ground.

Good luck!

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Chesapeake, Va.: I have been a computer programmer for over 10 years and truly enjoy technology. Throughout the course of my career, I've always had two problems. First, I've always had a difficult time following instructions from management. Of course, I'd do what I'm told but in my heart of hearts I always see the product I'm developing from different directions. I can see where I can make it stronger, faster, and better (management may not agree). Secondly, I always had a problem with someone else being in control of me (what to do, how to do, etc.). I do better in environments where my manager gives me a task and leaves me alone to complete it. During the technology boom, I use to move from company to company because I didn't want anyone to control my career.

Well, the IT boom is gone and the IT projects and jobs are being outsourced. Even my current IT job is uncertain but I still have those same feelings I described above. I'm wondering if something has been telling me all along to become an entrepreneur. What is your opinion? I don't want to walk into another job with the same issue. If I do, I really want to be a team player.

Thanks.

Elizabeth Cogswell Baskin: You certainly sound like an entrepreneur to me. And it also sounds like you've got some strong career equity built up. Do you have an idea for the company you might start?

One of the women featured in my book started a company called ITJobs.com. She financed the startup by applying for 10 pre-approved credit cards all in the same day, so she suddenly had $100,000 in unsecured capital. (Not recommending this, but it's the way she did it.) Later she secured several million dollars in venture capital and today she has a thriving company.

Figure out what you have to sell and go sell it!

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Detroit, Mich.: For the past two years, I've been the VP in a small school financial services company. Since joining, I've increased profits by 2,000 percent. Prior to joining the firm, it was agreed that I would build equity in the company, and eventually majority ownership, as the current president would like to consult on a part-time basis. It's now time to start negotiating ownership transition. Much of the responsibility transition has already occurred. Do you have any negotiating tips to share or recommended books to read to propose the formal transition, especially with respect to financial agreements?

Elizabeth Cogswell Baskin: Hmmm, that's tough. Somehow it's always easier for a business owner to agree to give equity when they're trying to lure someone in to help build the company. It's very hard to hand over that equity later.

I think you'll probably have to be pretty straightforward in your requests that the financial part take place. It might be time for some conversation with the president, to see what he or she is thinking about how that happens. The president is probably not going to just hand it over without you asking for it, in a clear and strong way. I don't mean to go in there and pitch a fit, but sometimes you have to ask for what you want, even if it was agreed to ahead of time. And if you don't get the answer you want immediately, keep asking and keep talking.

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Piscataway, N.J.: I am a female scientist in my 50s with a PhD and many years experience in R&D (first with a large lab and more recently with a series of start-ups). Now after four years with the current company, I keep itching to start my own. I have brainstormed a number of what I think are good ideas and thought about ways I could start in my basement, and am familiar with government R&D programs such as SBIRs. However, I don't have much knowledge of the basic workings of a business (i.e., how to set up the books, etc.). I also have concerns about legal issues such as how not to get into trouble with no-compete clauses I have signed. I am wondering where and how to start to get this knowledge together? Thanks!

Elizabeth Cogswell Baskin: The stuff you don't know is the easy stuff. You need a good lawyer and a good CPA before you start. Hire smart people whom you think you will trust and admire. They will be important members of your team moving forward. Your business should be in an area where you're an expert. For the various areas of running the business, you can get help from people who are experts in that.

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Alexandria, Va.: OK ... you've got my interest piqued. What does "selling like a girl" mean exactly?

Elizabeth Cogswell Baskin: Thanks for being the first question and I'm sorry to take so long to get to you.

Running your business like a girl means being true to who you are and not having to do it exactly like the business textbooks say to do it.

Of the women entrepreneurs interviewed for the book, most put a higher importance on three things than men do: intuition, connecting with people, and quality of life.

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D.C.: As a female business owner how can I compete with the guys?

Elizabeth Cogswell Baskin: Just run a good business. I wouldn't see it so much as competing with the guys as competing in the marketplace. Figure out what makes your business stand out from others, what makes clients want to buy from you instead of other companies, and then maximize that. And use your abilities to build relationships -- with prospects and other business contacts -- in order to help your company grow.

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Vienna, Va.: As a young woman, how can I get others to get me and my work seriously?

Elizabeth Cogswell Baskin: First, take yourself seriously. People are taking their cues from you. I wouldn't see being a young woman as a disadvantage, at all.

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Philadelphia, Penn..: If a female owned/operated business wishes to challenge a male oriented business, how does it avoid discriminating against men? Isn't there a legal obligation not to hire on basis of sex?

Elizabeth Cogswell Baskin: I'm not sure what you mean when you say challenge a male oriented business. Do you mean compete with a male-owned company or are you working in a male-dominated industry?

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Bowie, Md.: What do you think is the single hardest thing about starting your own business? What suggestions do you have for overcoming this obstacle?

Elizabeth Cogswell Baskin: The hardest thing is that it's all up to you. But that's also the best thing.

The best way to overcome it is just to keep on going. Over time, you build up your confidence that you can handle pretty much whatever comes your way.

The book has a chapter on overcoming difficult times, which is sort of inspirational to me. To hear women describe hard times in their businesses that they somehow turned around is really cool. In our culture, people don't talk about the small failures as much as they do the big successes. It's a great gift that the women in the book give such honest answers regarding their experiences.

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Washington, D.C. (small business, again): My business idea is a service-based business, and one that would initially start out serving individuals as opposed to companies or an industry.

Elizabeth Cogswell Baskin: I'm sorry, now I can't find your original question or my reply. Where were we going with this?

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Rockville, Md.: As has been the tradition in our family since my husband and I have been together, we got our price list this weekend from one of her relatives to buy things like scented soap and bath oil for the holidays. Her husband has confided to me that she makes enough to cover the expenses and keeps her occupied doing something she likes, but any profits are trivial.

How many enjoyable hobbies can be converted into home businesses that actually earn a living wage?

Elizabeth Cogswell Baskin: A lot of people do manage to pull that off. But I think it's easier to make a lot of money if your hobby is plastic surgery than decoupage.

Several of the women in the book did turn a hobby into a full-fledged business though. From greeting cards to yoga to ceramics.

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Brandermill, Va.: What are the chances of a woman obtaining a grant to start her business? Where do you find grants for women?

Elizabeth Cogswell Baskin: I'm not sure where to send you, but I'm sure that info is out there. Try calling the Small Business Administration in your area. Or maybe just google it.

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Vienna, Va.: Elizabeth:

How can I get people to trust me as a young woman who is in the begriming of her business? How can I build a good relationship between me and the client?

Elizabeth Cogswell Baskin: People love to help a startup . Ask for advice and help. Once someone is invested in your success, they really care if your business grows or not. You might ask for advice from a handful of business people or client prospects you admire, and then follow up with them after you implement their ideas.

Building good client relationships depends on your ability to serve them well. Ask for their feedback too. Some of the best advice I've had recently is to overreact to mistakes. If you mess something up, go out of your way to make it right, and to apologize, and to repair that relationship.

Clients are just people. Building strong relationships with them is like building a relationship with anybody. Relax and be yourself and I'm sure you'll do great.

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Elizabeth Cogswell Baskin: Got to run to my next meeting. Thanks so much. I enjoyed it.

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