Family businesses often happen by accident. The entrepreneur drives the start-up while the spouse and family chip in. Underpaid and overworked, these people are often willing to  sacrifice to make the dream come true.

Serendipity may bring success to a family business; however, the heads-up business owner builds practical solutions for potential family friction into the business plan.

• Identify the members of the family with potential to perform successfully within a structure. “Family” can mean a married couple, parents and children, or siblings and their spouses. In short, there are family members, and, then, there are family business members. Share that picture with the family.
• Separate family issues from business issues. Share an understanding at the very start about what you bring to the worksite and what stays at home. It may take some practice, but everyone needs to know where to discuss family baggage. Everyone needs to know what the process is to solve issues.
• Budget vacation, holiday, and personal time with the family. Keep business out of those moments. However, remember that children are competitive; the best families suffer some dysfunction. So, clarify an understanding for the handling of dependency issues, hostile behavior, and divisiveness.
• Pay fair competitive wages. If early revenues do not permit this, clarify the value of their sweat equity. Create a compensation plan that will reward their effort later – proportionate to their contribution and talent. Seek advice on framing the plan and communicate it clearly.
• Hold regular “tailgate” meetings, family retreats, or key member meetings. Let members vent simmering complaints– within reason. Approach these as learning opportunities. Collaborate and incorporate fairly offered ideas.
• Plan for succession when it makes sense and you are ready. Build cautions into the plan to discourage challenge to the plan. Communicate it well. A well-structured plan should reduce infighting.

Finally, enlist a third party coach – not a crony or other family member. Retain the advice of a specialist in family business matters to get things right from the start and to bounce things off as you succeed at your goals.

Heuristics influences marketing, management, software development, and decision-making. It contributes to algorithms and that pesky way that Amazon always “knows” what you want. This knack for cutting corners mentally to solve problems quickly and efficiently – heuristics – is one of many things that sets successful entrepreneurs apart.

Sometimes, small business owners get stuck. Worried about risk, debt, and growth, we can sometimes overthink things.

I admit that the best decisions are those made with the best information.  The better your input the less likely you are to decide poorly. Good information reduces bias and develops structure for good decision-making.

Enter heuristics. Very simply, there is value in an approach that is more rule-of-thumb than the management school process of testing a hypothesis with evidence and results. There is a real place for decision-making on a trial and error basis. Mistakes may happen, but it encourages learning, solution evaluation, and deeper understanding.

Setting this fancy talk aside, you want to respect and develop a talent for cool thinking. For example, when you are up against a seemingly large and complex problem, with no clear solution, you need a system to help you think.

1. Block out unessential information.  Someone said, “when the going gets tough, the tough relax.” Remember that “C-file” we all learned about in time management classes? I suggest that you don’t even keep such a file; just burn it. Run away; take your laptop to some place quiet. Turn off any internet access. And, work on the problem without distractions for a pre-determined period, say, 30 minutes.
2. Understand the Pareto Principle. 80% of the importance of a task comes from 20% of the work put into it. So, if you focus your energy on the critical 20%, you won’t overthink the non-critical 80%. Think of the pilot being forced to land on a river or a highway; there isn’t much training to fall back on, and there’s no time to weigh Plan A against Plan B.
3. Separate important tasks from the urgent ones.  It might be important to work out, read a good book, or have a nice lunch. But, these won’t make or break your business. Instead, determine what your personal peak productivity time is: early morning, mid-day, or even the middle of the night. Create walls around your peak productivity where you can work without bother or distraction.
4. Set up a debriefing process.  Knowing you are going to be making a difficult decision or a daring move, schedule a process where you can review and evaluate your decision, adjusting follow-through or implementing remedies.
5. Take aim and fire.  Think simple, and you will do a good enough job of solving enough problems. Move past indecision and take action. Visualize the result. Imagine yourself crossing the finish line. Clarify the problem in one sentence, and take a shot at fixing it. Jot things down, draw a picture, and make course corrections. Be ready to figure out things as you go along.

Imagine you need to move a product cross country despite a transit strike, inclement weather, and a three-day holiday. Think in a straight line until you hit a barrier. Move right until you can see a way forward. Go forward until you hit the next barrier, and continue as before. Eventually, you will see yourself at the end of your plan.

The right Small Business Coach can challenge you to set and achieve bigger goals in 2012, while helping you navigate the obstacles.  Know what you are looking for in order to choose the best candidate.  Read on for some practical advice for choosing the right candidate:

Let’s start with what you don’t need in a Small Business Coach:

• Nice is not a virtue. You want someone to hold you to high expectations. If you think you are a good manager, then, you probably have a skill in holding employees to performance accountability. You will best benefit from the advice of someone who practices the same demands. Expect to be pressed to the edge of your comfort zone.
• Expertise is not a priority. You need someone who is a good coach. What you need is cross-disciplinary skills: communication, planning, training, etc. These are valuable transferable skills that help you see the short and long-term.
• Avoid a therapist. Don’t pay someone just to listen to you and all your problems. Look for someone who will turn your path around. You need someone focused on action, plans, and deliverables. You don’t have the time for the coach to worry about your feelings.

So, what do you need?

• Someone you can afford. Bargain basement coaching is not worth the money. It will cost you time and money, and some outcomes may require additional investment. So, you need to be at a point where all this makes sense: the need, the expectations, and the price. Shop available coaches; seek word of mouth; look for referrals. It’s a big decision, and deserves focused investigation.
• Someone you can listen to. Coaching is partly a matter of style. If – and only if – you are ready to take a close look at what you are doing, you need to find someone with the rapport you need to take a few hits. You are paying to be told things you may not want to hear, to get tough about what you have been doing, and to push your face into some bad decisions you may have made. For this to work, you need someone you can work with.
• Someone with a plan. Demand a schedule and agenda in writing in advance. Expect the coach candidate to demonstrate goal-setting and effective planning. Ask to see models and samples of what the coach has done for other clients, and make him/her connect the dots between plan and results. Ask the candidate to introduce you to previous clients with your intent to seek their story of the relationship. And, be sure you talk to more than just one.
• Someone who knows what you don’t know. Remember, you are looking for someone to bring something new to you. Much of this should be in the form of plans and direction. But, you also want insights, product knowledge, marketing strengths, and fresh perceptions about your business. I am reluctant, for example, to recommend a coach who claims to be “all things to all people.” You’d be better off with someone experienced in your line or business or business sector.

A final caution is that you do want to see the track record or credentials of a coach who does this for a living. I am reluctant to recommend the coach who is an out of work MBA. Interview candidates with their experience in mind.

Creating loyalty doesn’t have to be difficult. It just takes good common sense. But. it also requires you to build a culture of service – at your virtual and real world sales counter.

We all know great customer service when we see it. When quality customer service is what brings them back for more (isn’t that what loyalty is?), why is it so hard for small business owners to pull it off?  try these tips to start building loyalty among your own customers and clients:

• Clean your windows! Be very aware of what your customers see from the street. Post clear, attractive, and inviting signage. Keep it neat and professional. Seasonal and whimsical can be appropriate, but keep it simple, so your identity is not lost. This applies to the front of your online business. Put emphasis on accessibility, ease of navigation, and welcoming design. Remember, website appearance must be an integration of visual design and search functionality. Pretty is a side-benefit and not a goal.
• Put your best face forward! Stop cleaning up after staffs who don’t meet your customers’ needs. Hire people-forward people, employees are keen on stepping forward, cracking a smile, and shaking a hand. Before you put them on the floor, make sure they know your key customers by appearance, name, and need. If you don’t physically meet your online customers, make sure your picture and those of your customer friendly staff are on the website. Encourage your customers to connect through Skype or Google+; it’s meaningful to put face and service together.  Make sure your employees know that customer loyalty helps pay their salaries.
• Keep them surprised and guessing! Think outside the usual seasonal and business cycle calendar. Hit them with a deal they weren’t expecting, an unexpected sale, or an email only discount. Take advantages of those slow times of the year to bring people back though social media and Groupon sort of discounts. Tie a deal to a referral or a customer anniversary. Surprise customer engaged employees, too; handout good service cash certificates, but do it sparingly and with some ceremony.
• Build a better mousetrap! To build customer interest in and employee support for a new product or service, structure their early involvement. Invite them to collaborate in the design, development, and delivery of a new product or service. Lay it out early what can or could go wrong, and seek input on quality improvement and service response. Give them a discount for their assistance and secure a partner for life.
• Under-promise and over-deliver! Keep and meet your deadlines. Structure your business to around delivery. Delivery built southwest Airlines, FedEx, and Amazon. This model makes a promise, meets its promised deadline, and keeps customers current on the process. They also hold their suppliers and vendors accountable for their part of the process. Maximize email, phones, and video conferencing in a scheduled structured strategy that communicates and engages.

Finally, be prepared to make it right when service fails. If you have built your business well, you can keep customers even when things go wrong. But, if they have bought into your culture, refunds are not enough. Make the mistake right and throw in a spiff, such as a gift or additional service. Whether you are selling coffee, books, or marketing advice, you have something the customer wants and needs.  It’s part of what builds customer loyalty.  It’s your job to make that multi-dimensional.

When the economy is tight, it’s not easy for small businesses to give back to their communities. For the record, 90% of our small businesses give to charities and non-profits in their area. And, 60%+ of them admit that charitable giving brings them success. 

Even when they are have little time or money to spare, small businesses find a way to support a local T-ball team, contribute equipment to schools and libraries, or mentor and coach. We want to share some of the ways our customers in meaningful ways without giving up big bucks or otherwise productive time. 

• Award a prize. Support a charity by donating a prize for a raffle or silent auction. Donate a product or a gift certificate.
• Give them a hand. Provide a service, such as printing, webspace, or window posting. Supply giveaways, such as promotional items, volunteer service, or volunteer hours.
• Put employees to work. Make volunteerism a part of your business pace work culture. Calendar a day when employees can volunteer to work at the local food bank, cook at a homeless shelter, or help local seniors.
• Take a collection. If your situation permits, collect customer spare change for local charities; change it monthly. Or, place a collection bin for used books or non-perishable food.
• Sponsor a scholarship. Contribute as little as $25 to a reading contest at your library or school, and call it a “scholarship.” Children and parents appreciate the support, regardless of the size.
• Join forces. Persuade the stores on your block or in your strip mall to promote a single campaign. It multiplies contributions and maximizes exposure. Partner with another small company in your sector to turn what may have been a small donation into a sizable one.
• Sit on a board. Bring your business and management skills to the board of a non-profit. Take the lead on bringing other businesses into line.
• Scratch a back. Trade your service for a link on the charity’s program or website.
• Hold a lawn sale. Sell used office furniture and electronics to raise money or donate it outright to local schools, churches, and libraries.

 Now, you can only work with what you have. Don’t over commit or spread yourself thin. Weigh your options when you are doing your 2012 budget. For example, you might take that $10/week payment for a tiny ad in your church bulletin and put it towards are larger gift with bigger exposure. It doesn’t lessen your charitable motives to expect community response for your effort. Small businesses serve their communities well, and support them with taxes, rentals, and payroll. There is no reason their loyalty should leave town.

We all know the “personality” who constantly seems to get in his or her own way. Short-tempered and shortsighted, the person(ality) doesn’t realize that these traits are getting in the way of greater business and personal success.

Are you killing your own business? Can your public personality mean the end to your small business?

Such people often don’t know how others feel about them. So, how are you to know if this is you? And, if you have developed bad habits, how do you change them?

Perform a personality audit.

Periodically survey your partners, peers, employees, and customers about your own performance. You can do this casually in the form of conversational questions meant to evoke an estimation of your personality presence. Or, you can use a survey service to seek the input. Doing this annually, for example, will tell your public that you are on top of this and that it is meaningful t you. Of course, it also suggests you will improve in response to the feedback.

Pick a peer.

Meet regularly with someone you trust, someone whose opinion you value, someone you can be candid with and who will retain your concerns and confidentiality. Pick an advisor from your Mastermind Group or even a customer who regularly sees you “in action.”

If you’re a family business, bring the family together for reasonably “lay it all on the table” meetings. If you’re small enough and your employees are vested in your success, invite them to speak up in a structured atmosphere. If you are big enough, seek feedback from your customers, clients, suppliers, and employees – but respect their privacy.

Build a model.

Assuming the feedback gets your attention – and who of us is perfect – fix what is easy to fix. But, personality habits are often deep seated and long practiced.

If it turns out that your personality might really be getting in the way of your business, find a role model. Look around your community, church and club, among your friends and your own business dealings for someone who seems to have their business and personal lives together. Such people are likable, their business is growing, people seem to respect them and flock to them. Identify and model some of the behavior traits that make them successful. My guess is that you will find these traits:

• Patience
• Humility
• Recognition of others
• Transparency/honesty
• Humor
• Resilience and flexibility
• Willingness to teach or share information

Start identifying these and other traits, find someone you can model, and start implementing these changes gradually. Personality is largely something we are born with. It is challenging to change, but it is done every day. Be patient with yourself, continue to seek honest feedback and you will find your relationships, business and otherwise, drastically improved.

Loss of motivation and confidence in the big economy leads to loss of the same in the smaller world of your business environment. Doubts creep in and erode your enthusiasm. Such concerns and emotions are normal, but you can prevent being overwhelmed and defeated by them. Consider these ideas to remake your daily activities and reconnect with why you began your business.

How are you holding up? While everyone must cope with stress and worry, small business owners seem to experience more than their share.  They feel the financial and emotional aches and pains of the economy before anyone else. And they have been kicked around for 5+ years now. They wonder about what the economy does to their customer base; about what’s happening and not happening in Washington; and about what they can do to secure their future and those of their employees.

Reduce stress by re-organizing your day.

• Try to distinguish energy from adrenalin. If you become enveloped by the business needs and decisions overwhelm you, the “high” you feel is actually draining you physically, bio-chemically, and, thereby, emotionally. Accept this condition as a fact of your life, and learn to manage it. Put a 10-minute break into your morning and afternoon. This is not a coffee break. You take a short walk, perform some in-office calisthenics, or close the door for some deep breathing exercises during a brief respite. Put it on your calendar and set your phone to remind you.

Keep “motivators” handy.

• Keep a batch of motivators around you. Frame an unhappy photo of you in the corporate world, a wage slave for somebody else! Post a list of reasons you were originally excited about the business. Contemplate that desk photo of your kids, the ones you are working for. Read a chapter of a great business book about a successful business owner. Also, start a file, online and off, of customer “thank you’s” and praise. Make their compliments your screen saver.

Remember how you serve.

• You are in business, ultimately, to serve. Service is its own kind of satisfaction. Making things better is its own reward, so spend some time thinking on what and how you do things. Are you in retail? Spend some time visualizing your customers enjoying your products. Are you a plumber? Remind yourself of how much better your customers are off because of your skill. An accountant? Delight in the fact that you have saved people money. Every business serves some purpose. Think about how well you serve!

It is normal to have peaks and valleys in your motivation and confidence. Learn to manage these with a set of tools prepared in advance, and you will overcome these challenges quickly and return to happily serving customers in no time!

Pssst!  Your business start-up idea is not on the internet!  Internet lists don’t guarantee success.  In fact, browsing for best business startup ideas only takes you down the wrong path.  Instead, examine your passions, interests, gifts, and talents.

People search lists of ‘easy to start’ businesses (is there really such an animal?), of hottest businesses, of top ten businesses, and so forth. If you’re looking at lists for inspiration, don’t bother.

A successful search requires thought, experience, and advice of trusted advisors. Leave behind the quick and easy attitude. The only thing that truly works is - you guessed it – persistent hard work.

Find your passion and dream!

To succeed in small business, you are best served by finding your passion and dreams that fit with your gifts and talents. Let’s look at each and do some real brainstorming to find your new small business opportunity.

Make your own list of the three to five things that answer one or more of these questions:

• What do I enjoy about my current job?
• What do I enjoy helping others with?
• What do I enjoy teaching others?
• What do I enjoy talking about?
• What do I enjoy reading about?
• What do I enjoy learning about?
• What do I enjoy doing for others?

All the questions center on what you enjoy, and many ask about your relationships with others. With answers in hand, brainstorm – without looking at the internet – what types of small business startup ideas might be most served by those passions.

Identify your gifts and talents.

Ask others to help determine your gifts and talents. Seek their feedback on your top three gifts or talents:

• according to your spouse
• according to a coworker
• according to a close friend
• according to another friend

Settle on the top three or four most common gifts and talents, and brainstorm what types of small business startup ideas need those gifts and talents.

Don’t choose just one business idea … choose three! Why? I don’t want you to lock in on any one business that may or may not be right for you.  Then, you are ready to set about the task of determining which idea answers a market demand or need.

I know – it’s a lot more work upfront this way. However, the alternative is to charge ahead and fail. Too many people don’t plan and charge ahead. Do it right the first time and succeed with your small business startup ideas.

A final thought!

Once you have followed this process and if you have a personal profile from Meyer Briggs (MBTI) or similar test, see if your strengths and weaknesses help shape your decision.

For many people, a home-based business is a dream come true. Being able to have the flexibility, the additional freedom, more contact with family and lower overhead are valid reasons to want to pursue this venture. And as mobile technology becomes more trustworthy, even if you don’t own your own business, a significant number of employees are working from home one or more days per week.

Many huge companies started out as home-based ventures. Jeff Bezos started Amazon in his garage. Apple’s roots are the same. Mattel started in the home of Ruth and Elliot Handler. Working from home allows you to literally keep your day job while you feel your way, experiment, build an online presence, develop a client base, poke around with different marketing techniques and expand service or product lines. About half of the tv show Shark Tank’s entrepreneur competitors (competing for investment money) operate from home. It has never been easier to launch a product or service based company from home.

Operating a home-based business has tax advantages and allows you to utilize your spouse and children for extra manpower if the business starts booming. Many people prefer to keep their businesses small and at home. Even if it just provides a steady second income, working from home offers peace of mind and independence that a second job simply might not.

While not everyone can afford to dedicate a room or separate dwelling for their home-based business, if you can, do-and make it one with a door. It will be easier for family, friends AND customers to take you seriously if you have fairly set hours and some privacy. But many small entrepreneurs and freelancers work on a laptop on the sofa. There are almost as many different set-ups out there as there are work-from-home folks. Don’t limit yourself because of space! Take a chance and start small.

Utilize wireless technology to network computers and printers, open source software to save money, Skype to make international calls cheaply or for free if that is part of doing business. Build online profileson Twitter and Facebook for exposure, develop your own blog, send out a newsletter, use Elance to find a logo designer. Don’t go deeply into debt for your business. It isn’t necessary!

Are you working from home in a small home-based business?We would love to hear your stories!

I like the concept of bucking the trend of college being the end all. As we discussed earlier, there are alternatives to college and getting deeply into debt. I like this man’s challenge.  It seems most of the critics in the article make the unfounded statement that rich people got that way because of their education. I challenge that and say perhaps they got rich in spite of their education. Most who have “made it” got there not because of a particular formal education but because of who they were, their character and attitude. If not, every educated person would be rich!

Wired recently featured a story about Y Combinator (the Y=Generation Y) which they called “boot camp for startups”. It isn’t a replacement for college but the odds are a significant number of the chosen few either didn’t go at all or dropped out. In fact, the “drop outs” are so numerous and respected that there is a whole website devoted to them: The College Dropouts Hall of Fame. And. Do you think this is a new concern? Check out this 1962 Time article about famous dropouts, including a couple of astronauts: