Savvy Business Organization.Organizing Yourself: Your Mind, Your Attitude, Time and Planning
Organizational Structure: Legal & Material
Organizing People: Inside & Outside
Measuring Progress: Hard & Soft
Before getting the business launched, it is important to codify certain things and have a commitment—at least to oneself—about the context in which you want your new business to work. Below is a suggested framework for thinking. It may or may not suit you. What's
necessary is that you have an assured approach to your new business. The idea is to be prepared
for the journey and to minimize the extent to which you are jostled and jolted
by the surprising
events that your business will experience.
The Five 'A's from WorkSavvy: Ascendant ways to be
If you would like to read my short article that expands on these ideas, then take a look at Before Your Startup—5 "A"s to Be More Successful.
Remember too, to balance the classic business behaviors of Sensing (using the senses) and Thinking (using the mind) with Intuition (using unconscious understanding) and Feeling (using emotion and sensitivity). You'll hear people talk about 'emotional intelligence' (ability, capacity, or skill to perceive, assess, and manage the emotions of one's self, of others, and of groups). This is very important in
business, without neglecting small business finance! 
Here's
an illustration of why balancing these four behaviors is important: take a look at this illustration of two tables. Your gut feel will probably be that the one on the right is square and that the one on the left is oblong; certainly you'll guess that their dimensions are different. Right? Wrong—the dimensions are identical. Your intuition has given you an incorrect answer. Go ahead and measure them right here on the screen! The depth illusion drawing Turning the Tables © is from an interesting book, Mind Sights by Roger N Shepard.
And here's another piece of advice: read Never Bet the Farm: How Entrepreneurs Take Risks, Make Decisions—and How You Can, Too by Anthony L Iaquinto and Stephen Spinelli Jr. Why? Because these two authors, have both reflected a lot on entrepreneurship (they are academics) and not from an ivory tower point of view—they know about the pitfalls of starting a business, since they've both done it, successfully. The book gives very practical advice on what to avoid. It's not a depressing book at all. I believe that in matters of organization and how you go about your business, the 15 principles could save you a lot of heartache. The book could serve as a sort of insurance policy for the risk of business failure.
Organizing Yourself: Your Mind, Your Attitude, Time and Planning
Starting a small business requires hard work and discipline—and not a little stress. What a truism! However many of us get launched, without thinking about how we may best prepare for business start up. Here are some basics:
Your Mind: We know the mind is a powerful instrument and has a thousand voices, many of which we might rather silence. However, we can work on ourselves and focus on bringing about change. The act of paying attention actually creates physical and chemical reactions in the brain. Different people use different ways to do this, but you may like to give consideration of meditation. Meditation takes many forms and if you go this route, it will be for you to determine the best one for you. You might like to take a look at Meditation at Work. Have you tried visualization (some call it visioning)? It is a means of creating mental imagery of something, so making thoughts into things. Another way is to do affirmations; repeated, focused and purposeful attention can lead to real change for the individual (see The Neuroscience of Leadership, a strategy+business article).
Affirmations are a form of auto-suggestion in which a statement of a desirable intention or condition of the world or the mind is deliberately meditated on or repeated in order to implant it in the mind. Affirmation could be viewed positively as a mobilization of one's inner resources, or negatively as a kind of self-induced brainwashing, depending on the psychological depth and wisdom of the affirmation. Affirmations can be a very powerful in reprogramming the unconscious mind. They are most effective when repeated in a quiet and restful state of mind and body. Brief guidance: put them in the first person, the present tense and express them positively. I use them and often pick up ones that resonate with me from other people—I change them from time to time.
This leads me to suggest that you may also find it useful to use active relaxation to reduce stress. Stress energizes us and enables us to meet challenges. There are plenty of those in small business startups, but too much will hamper us—or worse. Relaxation provides relief and allows self-repair. Of course you can find many ways, the most obvious of which is sleep. Recreational pursuits are obvious too, but you can also work on yourself actively. A good place to start is to use the Mind Tools Stress Management Master Class: Cope with the Causes of Street In Your Life, Not Just the Symptoms (it's only $19.99). Or make a start using auto-hypnosis with music by repeating to yourself commands to relax to each in turn of your limbs and their parts, your head, neck and back and then your organs. Take time at the end of the day, with loose close clothes in a calm uninterrupted environment. I do about 15-20 minutes reasonably frequently. You can find suitable music at either CDBaby or New World Music (they have guided relaxation visualizations, too).
Your Mental Models: 'seeing with your mind's eye' is, according to the latest neuroscientific research, exactly true—our mind is our eye. Take a look at the book, The Power of Impossible Thinking: Transform the Business
of Your Life and the Life of Your Business, by Jerry Wind and Colin Crook. It's about getting a better sense
of the world, to help you make decisions that respond better to reality. Your mental models may be getting in your way and the authors give you tools to determine what your models are and how to change them. They show how to avoid getting stuck and how to see things in new ways. These are very helpful skills for business startup people and this is a book that will help you see a new way of seeing what you may have thought were givens. With little past history, no established reputation and scarce
resources, entrepreneurs necessarily need to 'think outside the box'.
The Seven Spiritual Laws of Success: a Practical Guide to the Fullfilment of Your Dreams is a book by Deepak Chopra that will help you with your own self-organization. Deepak says, "A business must fulfil the needs of the human spirit. These include survival, safety, play, celebration, love, belongingness, self-esteem and self-actualization. It must also nurture the ecosystem. If it does so, the creation of wealth and profit will be a natural byproduct." Take a look and see if it helps you. I think it will.
Roz and Ben Zander's the Art of Possibility: Transforming Professional and Personal Life is a book that will reinforce your thinking (and feeling), especially after taking in the messages of Deepak's book. Roz is a family therapist and landscape painter and Ben is the conductor of the Boston Philharmonic Orchestra. The book is based on two premises: that life is composed as a story and that with new definitions, much more is possible than people ordinarily think. Set out in the form of 12 practices, this deceptively simple and anecdotal book gives the entrepreneur the means to bring possibility to life. They are simple though hard to instill; they require a lot of practicing.
"Design Your Life" is a program from Mind Tools that will help you to set goals and know you can achieve them; have total clarity about the goals you are pursuing; overcome the sticking points that have been holding you back; deal with your fears and overcome your set-backs; and get more motivated all of the time. It uses a workbook and worksheets, a 5-week e-class and MP3 audios. You can use it while you are busy on other things and it only costs $27.
If, on the other hand, you want to find innovators to solve you science and technology problems, try Innocentive, a company that enables companies to tap into the talents of a global scientific community for innovative solutions to tough R&D problems.
If you'd like to use a virtual assistant to save yourself from hiring someone or getting a job done that at this point eludes you from a time or skill point of view, then you can get one at Virtual Assistants or Virtual Contractor.
Welcome to WorkSavvy / Entrepreneurship & You / First Steps to a Business Start / Savvy Business Planning / Savvy Business Finance / Savvy Marketing / Savvy Business Organization / Savvy Web-biz / Sustainable Business Startup / Savvy Business Resources / About WorkSavvy! / Lift Off newsletter / Contact WorkSavvy : will @ worksavvy.ws
Your Attitude: Of course you have your own character and make-up, but your attitudes are learned and can be changed—in ways that will speed you on your business startup way. A book I think you'll find useful is Jack Canfield's The Success Principles: How to Get from Where You Are to Where You Want to Be. The book's about increasing daily confidence, tackling challenges, living with passion and purpose, as well as realizing your ambitions.
Keeping a persistently positive attitude is hard. I know. It takes work every day. To start with I suggest that you keep firmly attached to the fact that we live in an abundant world. There are a lot of messages that try to convince us otherwise. Most theories of economics are based on scarcity. It is from there that we get business notions of 'competitive advantage', for example. In business we need to keep in mind the importance of delivering more in use value than cash value.
Giving thanks is important. It's easy to do and easy to forget. The hackneyed phrase "count your blessings" may be used too casually, but giving thanks not only acknowledges gifts from God/the Universe, but also reinforces your own recognition that you can't do it all on your own.
Time & Planning: There are many time management systems out there and in any event you have always had your own. It's a good idea to review how you manage time and do your planning periodically—to work smarter, not harder. In your new small business startup you'll need to make every minute count—or as near as dammit.
There are some suggestions below, but the first is to Make Time for Success! Take a look at this process from 
Mind Tools.
This e-book
covers how to set goals
and define your priorities. It shows you how to organize
your time and life for maximum productivity, and helps
you beat the common barriers to success. that most people starting a business put in their own way.
Another place to visit for a treasure trove of articles, ideas, blogs is Innovation Tools. The website is the brainchild of Chuck Frey, a creative thinker with 20+ years of experience in PR, marketing, business strategy and information services.
A book to get behind the system: The 10 Natural laws of Successful Time and Life Management: Proven Strategies for Increased Productivity and Inner Peace, by Hyrum Smith.
David Allen is another author who might help you. Take a look at Ready for Anything: 52 Productivity Principles for Work & Life or Getting Things Done: The Art of Stress-Free Productivity. His work is based on five phases of workflow: collect, process, organize, review, do.
Time Management from the Inside Out by Julie Morgenstern talks from personal experience and uses many examples of real life experience—her own and others'. She gets you to understand your own relationship to time and big picture goals as well as the nitty-gritty means to create a time management system that suits you.
Time management systems: of course, if you type time management into a search engine, you'll get in the region of one million listings. Plenty to choose from, eh? Everything from to do lists to computer programs. They'll also include day/weekly/monthly/year planner systems, or personal organizers for scheduling (e.g. Franklin-Covey, Filofax, Day-Runner in Letter/A4 to Classic/A5 to pocket sizes). I use Filofax because it is more 'neutral' than the others. You can also find many free resources.
But whatever your planning system, it will all start with GOALS. Again a Web search will reveal a myriad of choices of methods. Why not get help? I suggest using GoalPro to help you. If you're still setting your goals on paper, try GoalPro 6.0 which is a software-based goal-setting achievement system, designed to provide you with all necessary tools to define, maintain, track, and achieve your goals. A downloadable trial version available.
A good way to bring together your goals and planning is use the Achievers Focusing System—I do. Click here and download the one-page form (it's the first item on the list of free resources featured in The Success Principles, by Jack Canfield, mentioned above). It is a quarterly program to translate your goals of different kinds into three key actions each week, with the opportunity to have an accountability partner, with whom you share your action items (your partner?). Of course you are not only going to do three things a week, but rambling to do lists tend not to keep you focused.
When you're doing any project, you'll collect all sorts of data - from your work in the field, from the Web, friends, magazines, books... where do you file it all? In Evernote. I do. It's free and is a very versatile 'single place for all your notes'. You can use it for monthly expenses, clipping Web pages, cutting and pasting... then you can search on key words, categories and other ways. It's a very handy tool.
Another free tool is Ta-Da List. If you are a list maker here's one that is versatile and very simple, but effective. You can upgrade to a paid version called Backpack that has more bells and whistles. If you want even more powerful to-do lists, plus messages, comments, file sharing, scheduling, and project management, check out Basecamp—a web-based project management tool. Ta-da Lists are just one small part of Basecamp, so if you like Ta-da Lists, you'll love Basecamp. As a matter of interest, these products are from a business called 37signals that used the unconventional Getting Real process to launch five successful web-based applications (Basecamp, Campfire, Backpack, Writeboard, Ta-da List), and Ruby on Rails, an open-source web application framework, in just two years with no funding, no debt, and only 7 people.
Personally I change my system fairly frequently. If I use one for too long, I seem to revert to scatterbrain. The I know it is time to start a new dicipline. Right now I am doing very well with iCal from Apple, because I use a Mac.
Health: no lecture is forthcoming on health here, except to say that it's something you need to take seriously. And organize. You need all your energy for starting a business. Decide that improving your own health is part of the job. If you eat healthily, take exercise and generally look after your body—it will care for you. Do not overlook the fact, though, that a whole system view of yourselfis important for all of the parts to function well. One suggestion that I offer is that you seriously consider doing six minutes of Qi Gong (say, 'chee gung') a day. You do not have to be a Buddhist or 'into' Eastern philosophies, but doing the eight easy movements suggested in the book Qi Gong for Beginners, will activate fields of energy in your mind and body that will lead to very beneficial results.
Giving: no lecture here, either. However you may find that even with all the demands on your time, that you will be enthralled by giving some of it. CoolPeopleCare exists to motivate and educate people in order to mobilize them to change their worlds. It is a web resource for people who want to make a difference, where you'll find practical ideas, helpful hints, and local events, all aimed at motivating you to change your world.
Welcome to WorkSavvy / Entrepreneurship & You / First Steps to a Business Start / Savvy Business Planning / Savvy Business Finance / Savvy Marketing / Savvy Business Organization / Savvy Web-biz / Sustainable Business Startup / Savvy Business Resources / About WorkSavvy! / Lift Off newsletter / Contact WorkSavvy : will @ worksavvy.ws
Organizational Structure: Legal & Material
Legal Structures: within each country jurisdiction there are a range of different available legal structures. in North America and Europe they are quite similar in principle.
In summary, they are:
In every case some form of registration will be necessary. In the US this will vary by State, although generally pretty similar in each case. Business.gov has a handy guide to forms of US business ownership; it summarizes the pros and cons of each form. A simple overview of UK company structures is available by clicking here.
Cliff Ennico is an attorney based in Fairfield, Connecticut. Yes, he's dealing with the US legal system but I suggest that, wherever you are based, you read his Small Business Survival Guide: Starting, Protecting and Securing Your Long-Term Success before getting too far down the road. It will help you avoid crass legal mistakes in dealing with everyone from family and friends, as well as customers, suppliers and indeed lawyers and accountants themselves. While you will probably want to deal with the professionals, this book will save you a lot of time and professional fees. If you are US-based, Cliff offers some standard legal packages like ones for forming an LLC or a corporation. You can find out more from Cliff's website.
Though you are likely to want to check out the possibilities for yourself first and then verify your choice with an accountant and/or lawyer, do not be daunted by doing it yourself. I did, more than once. It is generally simple especially if you are in one of the top ten countries for entrepreneurs. You can always make changes later,once you have been up and running for a while.
However, there are many on line company registration services
available. In the US, I recommend Bizfilings, because they offer a comprehensive service for all forms of in corporation
as well
as a mass of free stuff to help get your business off the ground. Indeed, why not learn about incorporating from their very helpful guide. For the UK, I suggest Incorporate Online, who offer a very straightforward service and backup accounting services and more; Michael Clifford, the managing director runs an effective business
from Mayfair, London. He also can organize offshore incorporation through his associates, OCRA who have 25 years in the business and 18 staffed offices round the world, run regionally from the Isle of Man, Hong Kong and Mauritius.
Limited liability companies, or LLCs, are becoming more and more popular, and it's easy to see why. They combine the personal liability protection of a corporation with the tax benefits and simplicity of a partnership. In addition, they're more flexible and require less ongoing paperwork than corporations.
There is another useful way to go with the incorporation process and that it to use LegalZoom.
One of the advantages of this service
is that you can complete a questionnaire as you consider whether the LLC route is appropriate for your business. The process costs nothing and may save you time and energy, before you do actually take the plunge. Fill out their easy-to-follow questionnaire, which was created by experienced attorneys. Unlike other services, you would have the choice of forming a new LLC or converting an existing business, for example a sole proprietorship. In addition, you have the option of including advanced provisions
not typically found with other services.
For fledgling companies a favorite option is to establish an LLC in the US State of Delaware (30% of LLC registrations are for foreign owned entities and very large numbers of US corporations are registered in Delaware. You will also find on many websites in different countries the possibility of downloading the necessary forms.
In the US you will need an EIN (Employer Identification Number). You can now get one online from the IRS. You will be able to use it immediately for most of your business needs, including: opening a bank account; applying for business licenses; and filing a tax return by mail.
If you need to find out what your NAICS (North American Industry Classification System) number if for any administrative reason, it is easily found at the US Census Bureau site, where you can search by the keyword you think best describes your business. Mine is 541611 for 'Business Management Consulting Services'.
Premises & Equipment: Organizing workspace and acquiring equipment often temps the entrepreneur to over-reach. The way to approach the subject is to see just how small a space and how little equipment are really necessary. If you take on too much space, you'll fill it and if you have more equipment than is absolutely necessary, there will be stuff that you don't use—a non-productive cost, not an asset.
Consider questions such as these:
If you want to find other expense-saving ways of working take a look at my article, Virtual Seed Money: Use the Bootstrapper's Cashbox, or take a look at Savvy Business Finance.
Be sure to keep the minimum of records. I recommend keeping your company in a box. A box file where you keep all the important or official papers, like company registration. A very convenient way to do it is to buy a Limited Liability Kit and Seal from Bizfilings. WorkSavvy has one.
Organizing People: Inside & Outside
Colleagues: You may be alone or already have a team around you. If you're working with others, you'll increase your chances of success. If not you may want to think about what key talent or experience you lack. There is much evidence to suggest that business startup teams are critical to success; there has to be a sales star present; to have two or three people in your team is probably good, more may diffuse focus.
You do not need a full team around you from the start. My view is that the lead entrepreneur needs to be head salesman and finance chief. These are two responsibilities that you should not shove away. It does not mean that you have to do all the selling or take on the bookkeeping yourself. But you need to be on top of both. If you start your own business success will depend upon it.
See how few people, if any, you really need to hire at the outset. Think about building a virtual staff. It's amazing how much help you can get with having to hire. Take a look at my article Staffing a Startup Without Hiring—getting the work done with minimal payroll and it'll show you lots of ways you can do this. If you want to know a good virtual assistant, then there is none better than Lori Davis of Davis Virtual Assistants. Take a look at her site and cross question her. You may save yourself many head and heartaches.
Skills and experience for business operations: Working out what skills and experience are needed to run your business may seem pretty obvious. However, it's worth taking time to figure out what they are and when you'll need them. Some abilities will be needed right away. Some you'll need full-time, others you can sub-contract or buy in as and when needed. You can identify what's needed, when and how you'll meet the need early on and then you will not be tearing your hair out later wondering how to deal with the problem later. Here is a proforma grid, though of course, you'll need to adapt it to your special circumstance.
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IT |
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If you do absolutely have to hire people, make sure that you have a flat organization. Happily a flat organization is almost synonymous with starting your own business. Don't build hierarchies or so-called 'stovepipe' organizations. Make sure you hire people that are highly motivated, share the vision and have personal traits that you respect. The incentives you offer don't always need to be financial, but make sure that people are going to commit and give them a real reason to be there. When you are hiring, avoid denigrating yourself. You are starting the business, after all. I have experienced the mistake of thinking since I was not a trained sales person, I should get in professionals.
The choice of partners and colleagues is fraught with risk. Don't therefore make decisions that you may regret later and ensure that the conditions you offer people are really clear. If you are going into partnership or taking on senior management, be prepared to spend a lot of time working out whether your values are really shared; how you are going to divide
responsibilities; what will be the share of ownership or income; who will
measure success and by what yardsticks. This may sound harsh at a point when you are full of get-up-and-go, but I learned from bitter experience that it's better done before you start.
Make sure you value the talent of your people. Remember that those who may be paid the least may have a high impact on your success. Don't confuse the impact with the cost of people. Someone who answers the phone can make or break you.
Recognise how different people are: a truism to which we often don't pay enough attention. It's important to identify your own personal profile for achieving success and valuing your uniqueness, and it's also important to do so in relation to others. Emergenetics: Tap Into the New Science of Success by Geil Browning is a book that you will enjoy, learn from and be able to apply. It is based on a brain-based approach to personality profiling that gives you the keys you need to discover not only your own natural strengths and talents, but also those of others. You will discover your thinking style (Conceptual, Social, Analytical, or Structural) and your behavioral set points (your degree of Expressiveness, Assertiveness, and Flexibility). These insights will help you recognize how you approach new situations, how you get things done, how others see you, how to enhance relationships, and how to communicate with people who are not like you. 'Emergenetics' is a word that may put you off, but it encapsulates the interplay between your genetic make-up and what has emerged from your life experience.
Connections: Rate your network of contacts highly. Even before you start your own business, begin building your database: something simple will do—any old spreadsheet, for instance. You'll be surprised how many people you know. Your network may not seem to contain all the people that you want to meet, but remember that generally there are only a maximum
of six links between you and that
person. This scientific fact means you are not isolated. You just need to use the network wisely. Try to add at least a name a
day. You can go faster by joining LinkedIn or other relationship network. At the time of writing there were nearly ten thousand new people in my LinkedIn network over the previous seven days! 
. If you are not attracted to LinkedIn, then you can try Ryze Business Networking. Also look at Zoom Info where you can find useful information about people and organizations. But whatever you do, start building a network before you need it and maintain it as the business progresses.
The networking site that attracts me the most at present is Xing, though I have to admit that I have yet to benefit directly from membership. I have only two direct contacts, but they lead to over 7 thousand 3rd degree contacts. It is German by origin and thus there is a European bias, but there are members from all over the world.
If you want to check out different alternative networking sites, including the well-known ones, then take a look at the the Directory of Online Network/Social Software Comapnies. It is on the site of the Virtual Handshake "Opening Doors and Closing Deals Online", where you can also find the book, The Virtual Handshake, for free download or purchase as a published version.
Make sure you build your connections. They do not always need to be people from whom you think you can obtain something. In fact it's perhaps better to think about how you can help them. Remember, too, that they have their own networks. Linking up and co-operating with other people will lead you to opportunities that you may not even have dreamed of.
Take a look at Small World and the Groundbreaking Science of Networks by Mark Buchanan. This presents the fundamental principles of the emerging field of 'small-worlds' theory—the idea that a hidden pattern is the key to how networks interact and exchange information, whether that network is the information highway or the firing of neurons in the brain. If you feel shy about networking then you may want to read a 'how to' book on the subject: Masters of Networking: Building Relationships for Your Pocketbook and Soul by Ivan Misner. Or you could read a Brief on Business Networks prepared by the New South Wales small biz service in Australia.
Measuring Progress: Hard & Soft
Numbers: An organized attitude to measurement is an imperative. It's fairly obvious that you need to keep up to the minute (I mean almost literally to the minute) figures on income & expenditure and cash. Even if your accounting is simple, like records in an Accounts Journal (take a look at NetMBA' note on General Journal Entries to see what I mean), you must keep a handle on what's going on. See Savvy Business Finance for more on small business finance.
Data on sales and sales forecasts will keep you on track for your growth targets. In a matter of days you can lose the thread and the end of the month may be too late. At the simplest level view your actual sales against budget or forecast. You can start with the figures that you prepared for the small business marketing plan or the business plan Income Statement, preferably expanded to give detail on individual products, services or market. Then you can manage by variances (real-life vs. plan) and ask yourself why things have not turned out as planned and what corrective action you can take.
I suggest you use some form of customer relationship management, keeping detailed and orderly information about your potential and actual customers and the actions you take to secure orders. Try Free CRM—CRM Software for Small Businesses or free Personal Edition CRM from salesforce.com, but otherwise be sure to keep track of sales potentials, suspects and prospects at the very least, so that you can monitor your activity and pipeline. If not you are going to find that when a sale is done, you suddenly have to start from scratch, the repeated filling of the pipeline is essential. See Savvy Marketing for more.
Observations: As well as the hard data, you'll want to keep track of the 'soft' stuff as well. It is harder to measure, but start by recording matters like: feedback you receive on your products or services both directly and indirectly; attitudes of your colleagues and their comments on you; things that are changing in your marketplace; new products in similar markets; trend data that you read about (inflation rates, consumer sales, the housing market) since though these may not have a direct effect upon your business, they may change attitudes and behavior that do impact on your ability to trade.
In both the case of hard and soft data, you will need to apply your judgment and take timely action. Easy to say and hard to do.
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Welcome to WorkSavvy / Entrepreneurship & You / First Steps to a Business Start / Savvy Business Planning / Savvy Business Finance / Savvy Marketing / Savvy Business Organization / Savvy Web-biz / Sustainable Business Startup / Savvy Business Resources / About WorkSavvy! / Lift Off newsletter / Contact WorkSavvy : will @ worksavvy.ws
William Keyser • WorkSavvy LLC • will @ worksavvy.ws
