"Let's Talk Money" Success Lab got under way with the introduction of the mysterious Lulu. To some, "Lulu" may sound like a French poodle owned by a Madison Avenue executive (no offence intended to Madison Executives who own French poodles named Lulu!), but those in attendance quickly discovered who Lulu really was: a business owner facing fate every entrepreneur strives to avoid - loosing money...

Presenter Barbara Cline, CPA, armed with visuals galore, used a composite example she called Lulu the Turkey Sandwich Maker to illustrate the concepts of pricing. Lulu sells homemade sandwiches and even with a great customer base is losing money. Barbara provided worksheets to walk the group through the accounting process to determine Lulu's problem. She explained that pricing consists of three components: direct costs, indirect costs, and profit. After doing the math, it turned out that Lulu was in the hole 44 cents for every sandwich sold because the costs of goods sold plus the operating costs out-paced the price of the product.

The lesson is, pay close attention to the breakdown of each component of the pricing structure. Barbara emphasized that it is essential to know all of the costs associated with your business, down to the tiny little details. In Lulu's case, the dab of mustard or an extra pickle slice might mean the difference between breaking even and losing money. A monthly review of prices, costs, and profit margins is essential to a successful business.

The presentation evolved from Barbara's philosophy of recognizing how one learns best, and then structuring learning experiences to capitalize on that. The visual, interactive presentation-part of what she calls "money mapping"-seemed to work well for the YES!Circle attendees, many of whose self-introductions began with a sheepish "I'm not comfortable with numbers."

Barbara also addressed some tax issues relevant to entrepreneurs. Pitfalls of self-employment include neglecting to take taxes into account when determining salary: grossing $60,000 doesn't equal a $60,000 corporate paycheck. Luckily, this topic will be addressed further in the Tax-Saver Success Lab on November 19th. Management and technology topics related to pricing and marketing were also discussed. Several accounting-enabling applications such as Excel and Peachtree were suggested to ease the "right brains" into the cold hard world of finances. A world, which after today's presentation does not seem so forbidding after all.

In the end, it all came down to the YES!Circle Rule #1, Ask for what you want! Participants took turns sharing their gifts and wishes - what they wanted to contribute to the group and what they were looking for. Enthusiastic "I know someone you have to meet" and "I can help you with that" bounced around the circle. The session concluded with a lively networking session that was finally broken up by facilities manager, wanting to claim his space back. What can we say, YES!Circle members are legendary for lingering to bond - we can live with that!

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Business Plan, Business Plan, Business Plan

You've got a product, you're got energy, you've got heart, you may even have clients. A business plan?! Heck, what do you want one of those for?! Well, those who came to the October 7 meeting of the YES!Circle event without a business plan likely went home to start the process of developing one after hearing Henry Turner and Bob Steere's presentation... Go to article

Henry, executive director of the DC SBDC (http://www.bschool.howard.edu/SBDC/index.htm) at Howard University (for the acronym-disinclined that would be the Small Business Development Center here in Washington), has lead a varied professional life as a fifth grade teacher and failed business owner turned super successful entrepreneur and consult. The SBDC at Howard University, part of a 1,600 center-strong force across the nation, offers free management counseling in 4 DC locations as well as low-cost training for all potential and existing small business owners.

Sprinkled with anecdotes about successful entrepreneurs-having been warned away from telling horror stories by the YES!Circle's chief visionary-Henry's presentation started off with an unlikely analogy: there is the living dead (the business owner) and then there is a passionate and self-confident different breed (the entrepreneur). And at the heart of every successful business led by an entrepreneur, there is a business plan.

He identified three key elements to a business plan (market, money, and experience), as well as three financial statements that must be understood by the entrepreneur (profit and loss, cash flow, and balance sheet). There's magic in threes: as Henry said, "Tell them what you're going to say in the business plan, say it, and then tell them what they're just read." He stressed that while many people look to secure traditional loans to finance their dream, a more successful strategy is to create equity by including family, friends, and neighbors as partners in the business. Henry's tome of a handout featured business cartoons, which reinforced concepts such as anticipating your customer's needs and constantly pushing yourself, and your business, further. No resting on your laurels for this set of entrepreneurs!

After a seventh-inning stretch, Bob took over the reins of the meeting. Forget Letterman-the leader of the Steere Group has his own Top Ten List. For entrepreneurs, that is.

1. Do what you love
2. Balance your checkbook before meeting with your bank's president to discuss a loan: if you can't organize your personal finances, where's the bank's incentive to work with you?
3. Create a board of directors or advisors, even for a sole proprietorship, as it never hurts to have people around to discuss ideas
4. Check your integrity, because bad news travels fast, much faster than good news
5. Hire yourself a coach and make it a business agreement so that the coach will go through with telling it like it is
6. Never forget that it's all about the customer
7. Avoid the temptation to do good-never give away for free what could earn you money
8. Write thank you notes
9. Network, network, network-always have a business card and if unemployed, think of volunteering ten hours a week within your chosen field
10. Never, never, never, never, never, never quit

Bob's handout featured a series of questions framed as a one-day business plan, which he explained would provide all of the information needed to create an executive summary. Questions explore your business vision, objectives, target clients, principal roadblocks, marketing strategies, skills, and attitude, among others. Being flexible is key. Bob offered his own experience as example. His non-profit venture, If I Had A Hammer, was intended to be a local and eventually national conference; recent interest has brought up the possibility of taking the conference to France. Were his business plan rigid, this wonderful opportunity would have to be passed up.

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Exchanging Innovation and the Innovation of Bartering
By Joe Coleman

Selling rare papers, car stereos, romance, and bugs... Working as a lifeguard in whitewater, sailing a charter sailboat, flying through the air on a trapeze... Flipping pancakes, baking pies, singing for your supper... 30 creative spirits... 30 innovative ways to make a living...

On Monday, September 30th the Yes!Circle hosted Fast Company's "Company of Friends" (CoF) guru Heath Row. Freshly arrived in D.C. as part of the annual CoF "Road Show," Heath spent the evening facilitating an active discourse on the role that innovation and creativity play in business and life. The varied careers, jobs, and entrepreneurial endeavors described in the first paragraph are all activities that participants in the session identified in response to the opening question, "tell us about a time you did something innovative or adventurous for a living."

Building on the energetic flow incited by the introductions, Heath began the session by observing that Fast Company is "not a magazine, it's a movement." After relating the genesis of the Company of Friends - from random emails linked via a spreadsheet to 43,000+ members in 35 countries - and the evolution of his position with magazine, Heath guided the conversation through a myriad of "innovation examples." Members of the Yes!Circle augmented the conversation by providing anecdotes of their own experience using "outside the box thinking" to achieve success in throughout their careers.

One of the most prolific discussions of the evening centered on the concept of bartering in business - definitely an "outside the box" option in a world captivated by the omnipresent dollar. Many of the attendees lauded the value of bartering when starting a new business, building a service, or operating a successful entity. The majority of participants believed that bartering could augment a business or project in ways that often go overlooked. Whether bartering for payment "in trade" or exchanging services for non-monetary compensation (boats, art work, and board positions), the predecessor to coins and dollars (i.e., trading) serves as a contemporary tool of commerce.

In order to barter successfully, participants recommended that exchangers keep three things in mind:

1. Create a monetary value for the items/services being bartered. -- It is important that people be fairly compensated for their work. When paying without the familiar dollar, the value of items and services becomes obscure. To help ensure that both parties feel that they are paid a just amount, barterers are encouraged to assign respective dollar value to their exchange.
2. Keep an accurate record (for tax purposes) of the bartered goods given and received. -- As with many aspects of business, the IRS is a constant presence in the exchange of money - even if the exchange involves services instead of cents or duties instead of dollars. Make sure to consult with a CPA or tax advisor to make sure that all barters are properly performed and recorded within the boundaries of tax regulations.
3. Look beyond dollar values. -- While step one encourages barterers to keep dollar signs in the equation, it is important to recognize the non-monetary benefits of bartering. While the service one offers in exchange may be of greater monetary value than the item received in exchange, the investment in the transaction may pay valuable dividends at a later date. A new contact, a familiarity with work-product, and proof of a willingness to operate creatively are but some of the benefits that stem from a successful barter.

Whether bartering is a regular occurrence in your business or you are preparing your first non-monetary exchange, the lessons shared by the Innovation Session participants offer a wonderful framework for creating an effective bartering practice.

The Yes!Circle's Innovation Session with Heath Row was yet another successful program in the organization's ever-evolving history. As Heath recognized, "if you are a person who connects people, you will always be connected." The innovation, enthusiasm, and willingness to share of the members in attendance evince the potent reality of Heath's statement and the creative connections made at the event will surely benefit the participants in both their personal and professional endeavors.

Editor's Note: YES!Circle made it into Heath Row's Fast Company Road Show diary http://www.fastcompany.com/roadshow/2002/092902a.html.

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