Here and Now 12/15/2011: Survival of the Fittest

At this time I am sorry to report that my sales reflect pretty much like what I am pretty sure is happening across the retail landscape nationwide…..it’s dismal! And the worst part of it all is that if it’s this bad now, Christmas time, I could only imagine how bad it’s going to be in January, especially in the retail sector.

This blog is of this moment a summary of things that are going on in my business and perhaps will give you an idea of how to survive this coming crisis.

During the months leading on to the November Midterm Elections I saw a general slowdown in sales and I correctly anticipated that this would drag things down to a level that would have direct impact on the Holiday Season. This speculation was one of the most important elements I used to set down my goals for the season. As expected they are in line with my continuing advice regarding all business, “Tread Water till the Next Wave”.

Normally I would build up inventory and in January either have it all paid off (perfect scenario) or borrow against my credit lines to extend payments till hopefully the next surge of sales from the end of January till Valentines Day in February. This of course is what I am trying to avoid.  At this moment any inventory purchase, especially in the jewelry retail industry, is totally speculative. Gold is continuing to climb and sales are down as well as the overall mind set of the average consumer.

As written in my past posting “Direct Mail Advertising 10/6/20”, I implemented what I felt was the most cost effective method of advertising at my disposal. But bringing into mind that my inventory is very limited I cut back on that advertising as well.

The Wave is Here, I rode it but failed to stay on:

“The Next Wave” came in the form of a very popular watch. In November of 2009 I felt this was going to be a very strong seller and I speculated on it’s performance and purchased 20 of them. Sure enough I sold out by March and reordered 12 of the units. Unfortunately restocking was projected for June. I was OK with this because it was going to be Father’s Day. The watches never arrived and they were expected to come in “sometime in the Fall”. I finally received them on Columbus Day and although I was tempted to order an additional twenty units I backed off because of the slowdown in sales and I felt that the “trend” demand for the watches may have expired. I was wrong. Within a month’s time I had sold out on the watches. When I ordered another dozen at the beginning of December I was once again told restocking would be in March.

At this moment I am trying to keep away from “Trend Motivated Jewelry Styles” and I am concentrating on the slow moving “Traditional” items. These are high end, high budget items that I will offer on Anniversaries and Birthdays. I’m also banking on my repair services. I expect a large number of cheap watches that need to have the bands sized and other jewelry repair items that need to be adjusted as well. I am fully aware that my overhead is small enough to be able to survive on just this alone.

 

As of my last business report my planning and conservative speculation has paid off. My overall revenues are down 26% but my profit margin has climbed from 44.8% to 56.9% and this means that my gross profit is down a mere 3,858.00 dollars! If I compare these figures to my best gross profit year, I’m off by 18%.

Overall I have written off the Christmas selling season and have already begun to prepare myself mentally for Valentines Day. In the meantime I plan to enjoy these Holidays in the spirit they were intended to be enjoyed as. A time to share with the family and observe the birth of Hope for Humanity 2010 years ago….

Happy Holidays everyone.

Chapter 6- Let’s Get to the Lease!

Presuming that you have found your location and have estimated the cost of renovations, you should prepare to negotiate your rent.

This should not be a daunting task. Most commercial leases are pretty standard. Go over it carefully and be on the lookout for clauses such as one that might pass the property taxes on to you. Be sure to get an idea of how much they have been from the landlord. The lease might also have services like garbage pickup and even the possibility to of adding "special assessments" to repair or "improve" the building. It might have a "COLI"-Cost of Living Increase which means that the rent will go up on a yearly basis. Be sure to get an exact percentage. The lease might even put a clause on charging you a percentage of sales exceeding a certain amount. Let's say that if you sold more than a million dollars in one year the landlord can charge you a percentage of that. And of course you will have to insure your business so that the property is not held liable if someone gets hurt in your business. Add that insurance cost, usually a once a year fee as part of your seed money. I strongly suggest that you don't discuss any of these clauses if you don't see them stipulated on the lease. Why on earth would you want to give the landlord any ideas?

So now you are ready to negotiate the rent. Make a note of this: When negotiating the rent try get as many free months as possible before starting to pay. Tell your perspective landlord that you need at least two months to set up the place. A way to do this is by making him/her enthusiastic about your business. Tell them how you are going to fix up the place and tell the adjacent business owners how you will help bring traffic to the area.

Now it's time to figure out the licenses needed.

Be warned, city governments are not helpful. I've noticed throughout the years that "government' has become big business. Meaning they are competing for your money as much as you are trying to make it. It's true that theoretically all the codes passed are to protect the public but for the most part these regulations are passed and enforced with the idea to generate revenues for the city. How else can a department justify their yearly allocation? And then those workers have to justify their personal incomes by enforcing everything as close to the letter as possible. Want an example? I once had a code enforcement inspector come with a ruler and measure a sign on a glass door and was told the letters were two inches larger than regulation!

When dealing with city officials try to be as to the point as possible without going into too much details. To start a conversation with one of these people is to get them to start thinking and you could never figure out in what direction they will take those thoughts in. One of the things you will need is an "Occupational License". Go in tell them what you are setting up. Be as vague as possible. If asked for numbers such as "amount of inventory" lowball the figure as much as possible. You're not lying. At this point you really don't know inventory fluctuates on a seasonal basis and then the truth of the matter is "what is the cash value of your inventory", this is the value of the inventory if you were to sell it back to the vendor that sold it to you. You might also be asked what the value of your office equipment and fixtures are. Once again, remember that they have depreciated the moment you received it. That laptop I recommended you purchase is not worth only 250.00 cash! This is important because a bill for "Intangible Tax on Assets" will be passed on to you in the future. By the way, you might be thinking of passing this on to your accountant, don't waste your money. He too is going to give a vague figure and charge you for the effort or give a figure that is going to help you get nailed. You must be the one in control!

You're also going to need a "Sales Tax" Certificate. Check this link out for the State of Florida Revenue. A sales tax certificate gives you sales tax exempt status when purchasing inventory or materials to build inventory. It does not mean you are sales tax exempt when purchasing personal items. It also gives you the right to collect sales tax for the state. This is obligatory when making sales to the public. And remember that if you don't collect the sales tax, you will have to pay for it yourself. Sales taxes are due by the 20^th of the following month and penalties are high if not filed on time. Once again you don't need an accountant to figure this out.

1-Add up all your sales receipts tax included

2-Take total and divide by 1.07 this is the tax you collected.

3-Multiply by .025 this is your "commission" the state pays you for collecting and is deducted from the total amount due.

4-Post the amounts in the appropriate place on the coupon, send them the check!

So Ok, you have an idea of:

1-Your budget

2-The Location

3-Agenda/Computer to organize yourself

4-Preparation to go into lease

5-Licenses

6-All adding up to what your "Seed Money" is going to be. It sounds repetitive but these are figures that you must ingrain into your subconscious and must become second nature to you. Recap:

1-Fixing up the store

1. Wall treatments: Paint
   
2. Flooring: (If needed) Commercial carpeting or tiles(best choice) will landlord share cost?-shop for prices
   
3. Signage: Shop for costs, be sure to include permit expenses.
   
4. Rent; Review lease request first two months rent free (you'll probably get one)
   
5. Insurance-Shop around
   
6. Licenses-Most probably Occupational, Sales Tax
   
7. Hardware
   
   1. Phone equipment-Try to start with just one line. I recommend Supra Telecom.
      
   2. Alarm/surveillance equipment: More on this in future chapter.
      
   3. Computers/Printers-I have discussed this in Chapter 3
      
      1. Software
         
   4. Credit card processor-Compare rates. As little out of pocket as possible. Watch out for extra fees. Online statements might reduce costs.
      
   5. Small refrigerator/microwave: A must to save on lunch money for both you and employees.
      
8. Supplies
   
   1. Paper, ink, shipping supplies, envelopes, company checks and deposit slips-Shop online to compare prices look for coupons from Staples, Office Max, Office Depot. Remember they all match each other's specials.
      
9. Fixtures-Shop around. Get what you need and think to hold for at least three years.
   
   1. Office furniture
      
   2. Displays
      
10. Business bank account-Based on security, loan source or be sure for it to be free.
    
11. Initial inventory purchase: We will discuss this make or break aspect.
    

Now let's get to the "Business Budget/Overhead" get the figures for the following:

1-Rent

2-Utilities

1. Phones
   
2. Electricity
   
3. Water
   

3-Advertising

4-Employees (If any)

I hope you've been taking notes and using your agenda. This is going to be the end of this chapter. The "Rent" and "Utilities" amounts are relatively easy to figure out. I will be discussing setting up an employee schedule, salary expenses and opening your business bank account and getting you financed on my next chapter.

Here and Now-Direct Mail Advertising 10/6/10

The holiday selling season is here and now it's time to "sharpen the knives". Because of the rising price of gold I have decided to emphasize my watch line which not only promotes my store but is also one of the items with the most generous profit margins.


As you have read, for the past few weeks I have been working on some new watch designs, debuted them on my website and integrated everything with my Facebook pages, eBay store and Blog.


I am now preparing to reinstate sending postcards to my customers who have upcoming events. These customers are numbered over six hundred that have purchased from me in the past three years. I have painstakingly taken their addresses, birthdays, anniversaries and spouses birthdays and developed a program of sending them a total of six post cards each week. Four mail pieces before their "event" and two after. This comes out to an average of sixty customers a month.


I am also taking down their email addresses and will incorporate that into "Constant Contact" in order to send everyone an advertisement at least once a month. More on an email campaign in another posting……


Budget:

At this time I am using Printingmadeasy.com which averages about 70 dollars per 1000 double sided postcards. Of course the idea is to have at least six different designs. When you figure the cost it is about 420 dollars for 6K postcards. This number of postcards should last you over 15 months.

Here's the math: Six different postcards, 1000 of each style @ 70 (this includes shipping to you) = 420.00. The monthly average number of customers with events are 60. I mailout a total of 360 postcards per month. 6000 postcards divided by 360 = 16.6 months. So figure for your budget's sake that the postcards will run you about 25.20 plus 100.00 for postage for a total of 126 +/- per month.

The tedious part is designing the postcards themselves. This is advertising on a limited budget. If you have any idea about selling you will realize that you have best results when there is "need". Obviously your advertising will hopefully ingrain the idea to your prospect that they have a "need" for your product.


Postcard Design:



As I stated before, at this moment because of the climbing price of gold I am using my watches as the focal point of my sales. My watch brand promotes my store name and allows me the most profit margin. So I am emphasizing/pushing them.
When I sort my customers I divide them as Anniversaries, His birthday, Her birthday. I try have the cards I send match that criteria. Meaning I try to feature Anniversary jewelry, Hers, etc.

I produce my own pictures so I have made a solid investment in digital camera equipment (Nikon Coolpix 4800) a good photo editing program (Adobe) and most of all…. a light box (MK GemBox). I will add links and write ups on the equipment and programs used in my future postings. In the meantime if you have any questions please feel free to ask.

Once I am happy with my edited pictures I upload them to the Prints Made Easy website and incorporate them into my postcard design.

If you look at my postcard designs you will see a clear and "catchy" phrase. I also try to get the most "bang for the buck" by pushing my website on all my advertising. The customer may not be drawn by the image on the postcard but most probably they will find something that will draw their attention on the website along with all the detailed information of the item.


Website Design:


I originally started my website as Vvs1blue.com but I have decided to use something that would identify better with the store and therefore I am slowly incorporating everything with the website into LAJlrs.com.


The bulk of my sales have come from eBay so I have opened an eBay store and use their "Markdown Manager" application to set up weekly sales. Because of this you will notice that I use my website to present "galleries" of the jewelry I stock. Sometimes the pieces may not be available on eBay but the prospective customer may always contact me and inquire. I will try to have a page for the items listed on the galleries with the item specifics. I also try to have link for my newsletter and blogs. In the near future I am publishing my first book and I want to exploit my best customer base, my existing customers. I have also linked the website to Facebook and my Facebook company page. There are still numerous glitches that need to be ironed out and one of them is to try to get what I have termed as "information" flow, describing posting once and having it embedded in all my sites.

Chapter 5-Setting up the store budget: Is there a reality to this dream? There can’t be any romance without the finance!

Believe it or not it's quite easy to know if your business is going to survive. I'm sure that you've read that 80% of most new businesses go belly up in the first two years. When I read stats like this I shake my head and realize that it is obvious that most new business owners really don't understand or did not do any research to find out the validity of their enterprise. It's easy, let's get to it now.

In Chapter 1 we discussed setting up your own budget. I hope you've taken my advice and by now you are pretty much aware of the two factors that control your financial stability, Expenditures and Cash flow. If you don't seem to understand let me explain it to you this way.

Expenditures are expenses that you most pay at that moment. But what happens when you pay them by credit card? In an "Accural Accounting" format the expense is deducted off your earnings at the moment you post that purchase on the credit card. But the truth of the matter is that it should be deducted when you actually pay for that expense. When you use that type of accounting system you would be using a "Cash Based" accounting system. There are a number of tax breaks in using the "Accural System" but I strongly recommend you start with a "Cash Based" system because in this way you can see the actual "Cash Demands" of your business. "

Understanding "Cash Demand" will also help you understand your overall "Cash Flow". In a nutshell, "Cash Flow", especially during hard times, is what makes the wheels spin.

 

In Chapter 2 we discussed looking for the location, preparing estimated seed money. This chapter is really a continuation of Chapter 2. So I hope you haven't fallen asleep on me. I know you're dying to ask me some questions.

It is time to consider what kind of Business Tax Entity you will operate as.

Will you incorporate or be a sole proprietor?

Once again this is easy. If you own a home, or if you have other assets incorporate as an LLC.

Operate as a sole proprietor until you establish your business, then incorporate. Operating as a sole proprietor is easier for obtaining needed credit, tax and accounting purposes. Be sure that your lease can be transferred to the corporation in the future.

 

10/5/2010 Update: There is money being made available through small business stimulus programs but one of their requirements is for the business to be filed as a corporation….no LLCs. Check into this before making your decision. Remember you may always incorporate in the future.

 

Many banks and vendors might understand the fact that you are a sole-proprietor. When applying for credit or buying merchandise many times bank officials and vendors look at my application and with I interpret as a confused look ask me: "you're not incorporated?" I usually point out to them, and you should also, that you are not hiding behind a "corporate veil", you are putting your name and reputation on the line and you will not fail them! Besides, even if you are incorporated many will ask you for a "Personal Endorsement/Guarantee". Beware of this the day you incorporate. That defeats the whole purpose of incorporating to begin with. When at first you open a business you are "self-employed", once you are established and have employees and managers that generate income and make decisions in your behalf you will have established a business. At that point you have had to relinquish a part of that control and you must protect your personal assets from the business performance and decisions or events that can jeopardize you, such as getting sued, worker's compensation claims etc. Keep in mind that your goal is to build a business that will ultimately serve you. Not become a "slave to the trade" yourself. This is something that I will discuss in a future chapter when we go over "Just Why do We Want To Do This?"

I also feel that the tax advantages to a proprietorship are better. On a Schedule C you can deduct just about everything you can imagine. You may disagree with me, but it's definitely worked for me.

Instead of hiring a lawyer or accountant to set up your corporation, do it yourself. Here is a link that will help you immensely:

http://www.sunbiz.org/register.html

Presuming that you have found your location and have estimated the cost of renovations, you should prepare to negotiate your rent.

This should not be a daunting task. Most commercial leases are pretty standard. Go over it carefully and be on the lookout for clauses such as one that might pass the property taxes on to you. Be sure to get an idea of how much they have been from the landlord. The lease might also have services like garbage pickup and even the possibility to of adding "special assessments" to repair or "improve" the building. It might have a "COLI"-Cost of Living Increase which means that the rent will go up on a yearly basis. Be sure to get an exact percentage. The lease might even put a clause on charging you a percentage of sales exceeding a certain amount. Let's say that if you sold more than a million dollars in one year the landlord can charge you a percentage of that. And of course you will have to insure your business so that the property is not held liable if someone gets hurt in your business. Add that insurance cost, usually a once a year fee as part of your seed money. I strongly suggest that you don't discuss any of these clauses if you don't see them stipulated on the lease. Why on earth would you want to give the landlord any ideas?

So now you are ready to negotiate the rent. Make a note of this: When negotiating the rent try get as many free months as possible before starting to pay. Tell your perspective landlord that you need at least two months to set up the place. A way to do this is by making him/her enthusiastic about your business. Tell them how you are going to fix up the place and tell the adjacent business owners how you will help bring traffic to the area.

Now it's time to figure out the licenses needed.

Be warned, city governments are not helpful. I've noticed throughout the years that "government' has become big business. Meaning they are competing for your money as much as you are trying to make it. It's true that theoretically all the codes passed are to protect the public but for the most part these regulations are passed and enforced with the idea to generate revenues for the city. How else can a department justify their yearly allocation? And then those workers have to justify their personal incomes by enforcing everything as close to the letter as possible. Want an example? I once had a code enforcement inspector come with a ruler and measure a sign on a glass door and was told the letters were two inches larger than regulation!

When dealing with city officials try to be as to the point as possible without going into too much details. To start a conversation with one of these people is to get them to start thinking and you could never figure out in what direction they will take those thoughts in. One of the things you will need is an "Occupational License". Go in tell them what you are setting up. Be as vague as possible. If asked for numbers such as "amount of inventory" lowball the figure as much as possible. You're not lying. At this point you really don't know inventory fluctuates on a seasonal basis and then the truth of the matter is "what is the cash value of your inventory", this is the value of the inventory if you were to sell it back to the vendor that sold it to you. You might also be asked what the value of your office equipment and fixtures are. Once again, remember that they have depreciated the moment you received it. That laptop I recommended you purchase is now worth only 250.00 cash! This is important because a bill for "Intangible Tax on Assets" will be passed on to you in the future. By the way, you might be thinking of passing this on to your accountant, don't waste your money. He too is going to give a vague figure and charge you for the effort or give a figure that is going to help you get nailed. You must be the one in control!

You're also going to need a "Sales Tax" Certificate. Check this link out for the State of Florida Revenue.

http://dor.myflorida.com/dor/eservices/apps/register/

A sales tax certificate gives you sales tax exempt status when purchasing inventory or materials to build inventory. It does not mean you are sales tax exempt when purchasing personal items. It also gives you the right to collect sales tax for the state. This is obligatory when making sales to the public. And remember that if you don't collect the sales tax, you will have to pay for it yourself. Sales taxes are due by the 20^th of the following month and penalties are high if not filed on time. Once again you don't need an accountant to figure this out.

1-Add up all your sales receipts tax included

2-Take total and divide by 1.07 this is the total amount of sales you had. Subtract it from the total of your receipts and that the tax you collected.

3-Multiply this amount by .025 this is your "commission" the state pays you for collecting and is deducted from the total amount due.

4-Post the amounts in the appropriate place on the coupon, send them the check!

So Ok, you have an idea of:

1-Your budget

2-The Location

3-Agenda/Computer to organize yourself

4-Preparation to go into lease

5-Licenses

6-All adding up to what your "Seed Money" is going to be. It sounds repetitive but these are figures that you must ingrain into your subconscious and must become second nature to you. Recap:

1-Fixing up the store

1. Wall treatments: Paint
   
2. Flooring: (If needed) Commercial carpeting or tiles(best choice) will landlord share cost?-shop for prices
   
3. Signage: Shop for costs, be sure to include permit expenses.
   
4. Rent; Review lease request first two months rent free (you'll probably get one)
   
5. Insurance-Shop around
   
6. Licenses-Most probably Occupational, Sales Tax
   
7. Hardware
   
   1. Phone equipment-Try to start with just one line. I recommend Supra Telecom.
      
   2. Alarm/surveillance equipment: More on this in future chapter.
      
   3. Computers/Printers-I have discussed this in Chapter 3
      
      1. Software
         
   4. Credit card processor-Compare rates. As little out of pocket as possible. Watch out for extra fees. Online statements might reduce costs.
      
   5. Small refrigerator/microwave: A must to save on lunch money for both you and employees.
      
8. Supplies
   
   1. Paper, ink, shipping supplies, envelopes, company checks and deposit slips-Shop online to compare prices look for coupons from Staples, Office Max, Office Depot. Remember they all match each other's specials.
      
9. Fixtures-Shop around. Get what you need and think to hold for at least three years.
   
   1. Office furniture
      
   2. Displays
      
10. Business bank account-Based on security, loan source or be sure for it to be free.
    
11. Initial inventory purchase: We will discuss this make or break aspect.
    

Now let's get to the "Business Budget/Overhead" get the figures for the following:

1-Rent

2-Utilities

1. Phones
   
2. Electricity
   
3. Water
   

3-Advertising

4-Employees (If any)

I hope you've been taking notes and using your agenda. This is going to be the end of this chapter. The "Rent" and "Utilities" amounts are relatively easy to figure out. I will be discussing setting up an employee schedule, salary expenses and opening your business bank account and getting you financed on my next chapter.

Here and Now Sept 27, 2010

This summer was brutal in the jewelry retail business. Last year I sold off all my gold and managed a nice profit and most of all a substantial amount of hard cash to infuse into my business. Unfortunately I could not find any merchandise that would be not be considered "speculative". Truthfully I did not see a good outcome for the 2009 Holiday Season and decided to take a job with Montblanc. Despite slow times I was hired because of my experience. Mind you, you can hardly make a decent living working the bottom rung of luxury retail. I resigned from Montblanc and returned to my store in June 2010. You might think this was a bad move but with the way the economy is doing I was sure I was going to have to close my store if I did not come back. Before leaving i did put in place an effective "system" and my employees were reasonably capable but I've build my business based on personal one on one relationships with my customers and once I was gone my absence had a terrible effect on an ailing business.
Take note that at the time I left Montblanc I had produced well over 300k in sales for the 5 1/2 months I was there. I had written top ticket four of the six months there and had been assigned to direct "corporate sales". But I felt that I would produce the same amount of income for myself at my store, have the liberty to continue to be involved in my 11 year old daughters development and have the creative freedom a small business offers. Of course I have no insurance nor 401k plan. At this time the banks have all but eliminated credit but then again one must tread very softly when it comes to purchasing stock. I am being extremely conservative and only purchasing or manufacturing pieces with a higher turnover percentage. I am also working on an increased web presence focusing on my "Private Label" pieces and targeting my existing clientele. Unfortunately I predict a ten day selling season for Christmas and jewelry purchases will be dismal.
These are indeed trying times to open a business but a few weeks ago the government approved a 30 billion package stimulus for small businesses. This includes tax credits, other incentives and loans. Look up this information in the SBA website and exploit it as a funding source.

Chapter 4: Hardware

Hardware:

Well, this is where I would probably make a little money if I ever figure out how to get these companies to pay me for endorsing their products. If you've come this far it's because you are getting serious about your intentions to open a new business. So investing money into the following things I'm sure will pay off great dividends in your future. Take note that I originally posted this in 2008 and I have rewritten it in many places.

I know this is going to sound really obsessive compulsive but I really recommend you keep your schedule on computer program such as "Outlook" and be able to sync it with your cellphone or other portable device. The whole purpose of this constant planning is to keep you focused on the operation of your business. Get used to it!

Let's start counting:

You are also going to have to get an accounting program, more on this later. I recommend you get, or for the time being borrow a computer and I strongly recommend a laptop because this way you can take your work with you and start working on it wherever and whenever you get inspirational! In this age and market and with all indications that it will be even more essential in the future, technology is one of the biggest needs and expenses your business is going to incur. So make your technology expenses for equipment that you will be holding on to for at least 3-5 years ( I prefer 5).

I purchased a Compaq laptop back in 2001 and it was one of the best investments I ever made. On many occasions I felt I needed a desktop and added a docking station, two power supplies (one for home and one for work), flat screen monitor (first I had an old clunker), wireless keyboard/mouse, Data switch to make a network and a number of external USB stations for a number of peripherals to my trusty laptop. Last year I purchased a Dell Desktop and I made two mistakes. Don't take me wrong, I love my Dell, I upgraded it to 2 megs of Ram, added my video card to monitor two security cameras, wireless keyboard and mouse and a fax card…But…. My first mistake was getting the computer with a Windows Vista OS. It simply made me have to practically replace many of my programs and hardware….Not! I simply installed an XP program and despite warnings that my Dell hardware might not function everything did function correctly and I have had no other problems since. Including the installation of the Avermedia video capture card that is the heart of my security system. I guarantee that everything you hear about Windows Vista is true. Keep away from it! Note: I have begun to leave my computer on 24-7 and at this time I am evaluating the increase on my electric bill.

My second mistake was not getting a laptop (although I realize that I do need a desktop to serve as a network server and of course to run my surveillance hardware 24-7). My desire to justify the purchase of a new laptop drove me to push my performance and after six months I finally ordered my laptop which I haven't received as of yet!

Once again I went to Dell and spend over two months looking up the Dell site and trying to get the best price possible for the configuration I wanted. I finally called them up directly and made an offer. With tax and free shipping I got the laptop for a bit over 900 dollars. It might not have been the best price possible but I feel that getting the laptop at the moment I did was worth the extra money I might have paid.

I expect to have this laptop for the next 3-5 years and emphasized on Speed, Connectivity, Comfort, Portability and Components I would use in the future. I decided on the Vostro 1500 with a glare free screen (I took advice from their "Product Ratings" and most buyers regretted purchasing the "TruBrite" screens), a Dual Core 2.0 GHz processor, 2 Gig ram, 160 Gig 7200 rpm hard drive, blue tooth, N card and 2.0 build in camera and most importantly I got it with the Windows XP OS. The only component I'm not too sure about is the 2.0 Meg camera the unit comes equipped with but once again thinking of the future, some day I might just have to show a client one of my products instantly and just one sale will surely pay for the 40 dollar upgrade! OK, so now you have an idea of the equipment you should purchase now lets get to the root of why we should have this, let's look at some of the software you should be equipped with.

Update 09/2010: In the summer of 2009 I was looking for total mobility and purchased an Asus H1000 Netbook. I really enjoyed everything about this netbook to the point that I wrote an review about it. The only drawback it had was the size of the screen but the weight and everything else was amazingly comfortable. I added an HP L1710 screen at both my home and office for mobility and I felt I had a complete system. Unfortunately in February of 2010 in a moment of lapsed judgment I left my laptop bag in the backseat of my car and someone broke the window and stole it. I was fortunate that I have a iOmega 1.5 Tetrabite external hard drive and I perform regular back-ups. I had done a complete back up the night before.

Instead of reverting to the Vostro, which I still regard as the best laptop I have purchased, I still cannot stand it's cumbersome weight so I went shopping and settled for an Acer 1401. This Acer has an 11.2 screen, 250 Gig HD, and up to 4Gig of Ram that I immediately upgraded to. It came with a Vista OS and to my surprise unlike my previous post, the Vista OS worked quite well. I would think it had to do with all the updates that Vista went through. Instead of downgrading to Windows XP that has been discontinued by Microsoft, I decided to go with the best and the latest and upgraded to W7 Professional. I got the stand-alone OEM version for 139.00 at CompUSA. The installation was quite easy although I had to purchase an external DVD player Samsung SE-SO84 which I would need anyway.

I also upgraded my Canon Pixma 1400 printer to a Canon MX870 WiFi capable printer and replaced my Sierra Wireless Card that was also stolen with a Sprint U300 card by Sprint. This card is 4G capable but I find it heats up considerably. Sprint at this moment has other updated Air Cards of better size, quality and performance. Added to this bundle I got a Cradlepoint MB1000 router that converts the aircard's signal into a wifi network where up to 64 devices can connect to. This router/converter has become a "must have" because of its ability to connect the Asus, MX870, Dell Desktop, my daughter's Inspirion and iPhones……very sweet!

Regarding software first on my list and most important is Quickbooks 2011 Professional Edition. When setting up this program I suggest you add your own "categories" as you go. Depending on the type of business you are opening I would decide on using the "Items" detail to keep track of your inventory and purchases. And yes, pick an "Accural Method" of accounting at this moment! I will have a section going over the use of Quickbooks in the near future. But now the most important part of Quickbooks is preparing your budget by going to the "Company Tab" go to "Set up Budgets" and begin to post your projected expenses.

 

Well, that's the end of this section. Keep reading my posts and feel free to post any questions and criticisms. As you can read I might have to break out and open other sections to detail things like "Time Management", Quickbooks, etc.

09/2010 Update: There are a number of new aps on the market and especially if you use an iPhone. I recommend you purchase aps that you can sync with your phones because at this point online based aps are the way to go. Once again be sure that any hardware purchase you make will last you at least 3 years. In purchasing my Acer I although I had to upgrade to W7 I still saved money. The equivalent laptop with Intel Processor, 160Gig HD, and W7 pre-installed is selling for over 600 USD.

 

May 30, 2008: The Here and Now:

I should have prepared a "Graduation Gifts" campaign right after Mother's Day. I thought it graduations would take place after Mother's Day but too late I realized that many schools have their graduation ceremonies the week after Mother's Day. Normally I wouldn't bother but I'm looking at a lean summer this year and every single event has to be taken advantage of. I did post this note in the "2009 Planning Next Year" of my agenda. I dumped this ad project and concentrated on my E-mail newsletter and three scheduled Father's Day Email promotions. A month ago because of the increase in the price of stamps and print ad production, I decided to use a trial of "Constant Contact", an email promotion service. I used it for a May Newsletter and a couple of Mother's Day Promotions. It was very effective.

I've spend a couple of days preparing my June Newsletter and promotions but my email list is way over 300 so I decided to go ahead and end my trial period that only allows unlimited emails for 60 days to 100 contacts.

In the trial version Constant Contact will only host five pictures. The rest can be embedded into the email templates by inserting html code. I did this but whether it was by design or not, I found it hard to post links to pictures I had hosted in "The Linkup", Picasso web albums and my own website into the their email templates. I decided to pay the extra 5.00 a month and use their Premium Picture Hosting Service.. I see a great future in this type of advertising and already looked into buying a stand-alone program in the future. More info on Constant Contact click this link

Hurricane season is coming up and I scheduled a weekend in June to test my shutters. I also tested my security system both at store and at home. Two nearby businesses were broken. I interviewed one of the owners and he told me that someone had broken in and stolen 750.00 he had in the cash register. He explained that he didn't do a daily deposit. The other business was broken into two days after and the cash register was stolen. No money was inside it. But there was over 500.00 worth of damage done to both businesses. Sign of the time people! Secure your investment!

Chapter 3

So how’s your budget coming along? Takes time huh? Getting all the paperwork together is a real pain. Don’t think an accountant is going to do a better job. Like I wrote before, “You are the one that should know the most about your business”. You should realize by now that you are perhaps finding in yourself some personal traits that a business owner must have in order to survive, Commitment and discipline.

Get an agenda. You can purchase a “Day Runner” but I recommend you make up your own. One that’s portable but not small, you need to take plenty of notes. I recommend the
Avery dividers that measure 5.5"x 8.0". Buy a set of tabbed separators you can label to your needs. I have mine labeled:
Current: I write down my current things to do and sometimes I have to make a separate sheet for a particular task. After I have these things down I like to go to the Weekly Calendar section and schedule them for immediate action.
Orders: My customer orders with name, phone, email and description of order.
Follow-up: Anything that needs to be followed up, merchandise order, customer call is written here.
Missed: For whatever reason an order is missed it doesn’t mean you dump the customer. A lot of money in the way of advertising and operating expenses have been spent to get them into your door. Offer to call them back when you get your new merchandise, give them a coupon towards a future purchase and if you were smart enough to get a birth date, give them a call.
To Do Month: During the course of the year you are bound to come up with new ideas, ads, etc. I like to breakdown ideas/tasks in this area broken up into the months I want to start working on them.
On the inside front cover of my agenda I placed a pad xxxx I secure it by keeping a tape behind it. This is great to jut down notes, ideas etc. Make sure to move it to the correct section afterwards or it’s just going to sit there.
I also have two Calendar sections one is my Weekly Calendar and the other is my Monthly Calendar.
Weekly Calendar: I prefer the Day Runner “Week in View Planning Calendar” Ref# 481-285Y. If you look at these calendar pages they will give you an immediate look of your week and each daily section is split into two sections Hours and “Record”. I post my tasks (divided by Office, Calls, Projects with ref# to notes, Pending Orders, etc) on these sections. Once listed I go ahead and post them on the days and times I want to work on them.
Monthly Calendar: I also have a Monthly Calendar section and once again I prefer the Day Runner “Tabbed Month in View Planning Calendar”. Once you get into the habit of using an agenda you will take advantage of both the “Objectives” section for projecting the course of your projects and skipping to the back of the you will find a “Planning Next Year” section where you can post your tasks such as tax preparation and filing along with the proposed advertising schedule for the coming year.
There is a section titled ‘Quarterly Overview”, I usually post a recap of my projects here and on the calendar section, in my shorthand, I have my advertising schedule for the entire quarter, more on this later.
On the Calendar dates itself I usually post personal things like dinners, beach days, dinner at Mom’s, etc
It might sound a bit obsessive but I guarantee your ability to plan ahead will pay for itself.