The Next Level. Sponsored by: Presented by:

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1 1 The Next Level Sponsored by: Presented by:

2 Tag us Today! Los Angeles Urban Be Your Own Kaleidoscope Consulting AARP /aarpcalifornia Los Angeles Urban League /laurbanleague Kaleidoscope Consulting Group /kaleidoscopeconsulting Be Your Own Brand /byobbeyourownbrand Los Angeles Urban

3 Six Things About Finance 1) Save 10% of ALL income your company makes 2) Pay off all consumer debt 3) Create a budget and stick to it 4) Save three months of your personal expenses and 3 months of business expenses before investing 5) Keep good records of all expenses and income 6) Don t discount too quickly

4 Save 10% of Everything! Have a separate checking account and savings account for your business. Don t assume the money will always be there. Consider paying quarterly taxes every quarter if saving money is not your strong suit

5 Pay off all Consumer Debt Freeze your use of credit cards and develop a plan Contact your creditor and ask if they can lower the APR Apply extra money or windfalls to the balance Pay down the cards with the highest interest rate first OR the lowest balances Focus on GOOD debt (property, student loans) Amount of Debt at 22% APR Min. Monthly Payment Time to Pay Off $5,000 $142 4 Yrs, 10 Mo $8,107 Total Amount Paid $10,000 $284 4 Yrs, 10 Mo $16,214 $15,000 $425 4 Yrs, 10 Mo $24,364 $20,000 $567 4 Yrs, 10 Mo $32,471 $25,000 $709 4 Yrs, 10 Mo $40,578

6 Create a Budget Create a personal budget and a business budget Don t forget to deduct your 10% Savings

7 Save 3 Months in Savings Save three (3) months of your business expenses before investing in a new business venture Save three (3) months of your personal expenses before investing in a new personal venture

8 Keep AMAZING records Track all expenses through an accounting software, physical receipts, etc. (QuickBooks) Create an easy way to store and access your receipts by year

9 Don t Discount too Quickly! You go to Taco Bell You buy 10 tacos for $10 You eat 8 of them You then ask your friend to buy the other two How much would you pay for the taco?

10 Don t Discount too Quickly! You are marooned in the ocean You have no gas You have no food Now how much would you pay for the taco?

11 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 Retention (%) Retention vs. Discounting Retention by Discount 50% 48% 46% 44% 42% 40% 38% 36% 34% 32% 30% 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - Returning (#) Returning (%) The larger the discount, the lower the retention.

12 Discounting Says your not worth what you charge The hook up will jack you up You resent the customer

13 Some Things You Never Want Discounted Craigslist Ad For Sale: Parachute. Only used once, never opened. Discount on brain surgery. You will be my first patient.

14 Who pays someone to change their oil? What are the consequences of not paying you for your craft? What value are you offering?

15 Be the Best Now!! Customer Service Branding Marketing Processes and Procedures Define the Experience

16 Customer Service State what you CAN do - not what you can t Use keywords: My pleasure, no problem, absolutely, please, thank you Use the customer name frequently Ask confidently instead of demand Be proactive and calm Summarize

17 Branding Your Business Be Intentional Define your experience Identify your uniqueness Be consistent Make sure your messaging conveys your brand in everything you do

18 Marketing to Clients Solve a problem - find the pain Remember It s not about you Offer loyalty discounts or cards Look for new offerings to sell your clients that are in your wheel house Ask them to complete surveys and feedback about your company Ask for referrals Measure and evaluate. Monitor, Monitor, Monitor Service Businesses: Try to get clients on a retainer Product Businesses: Can auto-ship customers monthly, quarterly, etc.

19 Processes and Procedures Create a manual that can maintain your business without you Master list of passwords for your business accounts Quality control checklist of your product or service Expectation setting Purchasing procedure (flights, costs, etc.) HR policies once you hire an employee Cell phone device policy at work Return/refund/discounting policies

20 Define the Experience Be intentional Be clear Highlight your uniqueness Think through the process Define the deliverables Determine the outcomes

21 How do you Want to Grow? Do you want to own your own a job or own a company? Do you want to franchise? When do you need office space? When is it time to hire employees?

22 Employee vs. Consultants An independent contractor can accept other clients and take on other jobs Consultants make their own hours Consultants manage their own taxes and payroll You can impose deadlines on the consultant, but you can t tell them how to get the job done Used more when you need someone part-time Person doesn t require much supervision

23 Hire an Intern Offer your experience in exchange for free labor Allows you to test drive the talent Give back to the community Interview, select and then hire interns. Conduct regular interviews Gives your business a new and fresh perspective

24 Sustainability Creating products if you are a service business Online ordering if you are brick and mortar business Develop an app for your business Look for ways to upsell services during the proposal phase

25 What is Your Exit Strategy? Grow Sell and Liquidate Legacy Creation (Family Business) Invest? Retire?

26 A Few Do s Do Be willing to take risks Develop a plan of action Use social media (particularly products) Get a separate phone number Set boundaries for yourself and customers Finish what you start Focus your time on money generating activities Get up earlier Create processes to increase efficiency Do Prioritize family and friends over work Network, Network, Network Invest in quality design Focus on time management Do less, but do it BETTER Be prepared for 5-7 years of really hard work Learn how to manage stressful days Be careful about hiring friends and family members Do something you like or enjoy Be frugal without impacting the customer Learn about sales cycles Be committed to continuous learning

27 A Few Don'ts Don t Underestimate how much time it takes to start or launch a business Discount too quickly Be afraid to fail Don t Get defensive when people give you feedback Feel like you are forced to have a brick and mortar business Partner with someone out of desperation or convenience Get stuck in the past Assume you know what s best and not listen to advice from clients and/or other business owners Get discouraged by roadblocks. Focus on solutions Create business cards, logo or stationery until you start making money Quit your day job too soon if you are trying to do both Stop learning

28 Homework Think of one additional product or service you can add to your business to create additional revenue Spend time thinking about your business and how you can take it to the next level.

29 Let s Tuesday, October 23, :30pm-7:30pm Conference Call: , ID: Connect Next Week! BYOB Kaleidoscope LA @laulyps