The Magic Of Tiny Business - Sharon Rowe | Summarized Books

The Magic Of Tiny Business : You Don't Have To Go Big To Make A Living

Tiny Business Is The Big Deal

The author decided to take charge of her life, do something that generated a good income, all the while ensuring that it made an impact on the environment or society, and left her with enough family time and also gave her ample time to live and enjoy life. She calls this a Tiny Business.

She found something she was passionate about, started a business that was the solution to the problem, and used her resources to do so. What was less rational was that she started building a company from scratch, with no master business plan or formal business training, and as expected she fell into a lot of mistakes along the line.

Her Tiny Business helped her. A Tiny Business is a business that is on YOUR Terms or that Fits Your Life. How you can create it? To identify what Tiny Business is to you, to get insights about mistakes the author made and how you can avoid them, go to the next chapters

Choose Your Limitation

One misleading myth is the “go hard or go home” statement that has you risking everything, or not bothering at all. With a Tiny Business, you don't need to risk all before you realize your dreams. A tiny business:
1. Is born from crystal-clear priorities of what you want out of life, not out of the need for a paycheck.
2. Makes you a living and still lets you live, as opposed to pushing everything important to you aside.
3. Puts your energy into something that matters to you, not into making money.
4. Grows at your own pace and in alignment with your life priorities, not just for the sake of growth.
5. Is business on your terms, not one where you have to work your life around?​

Building market values with your values

Tiny is a laser-focused disciplined approach that works by making your work, work for you. First, be clear about your priorities. Decide what you want in your life, business, and future. Figure out what's most important to you, what you're working for and what your “why” is, both personally and financially. Then, you set a schedule, and stick to it. After selecting what's essential, remove the obstacles, noise, and clutter — imaginary or real.

What matters most to you?

What do you want in life and work?. Whether it is time and money to travel or an easy commute. Or you can start with what you don't want, which may be limited vacation, long commute, or working in a cubicle. Add whatever works for you in the list.

Determine your understanding of money, risk, profit, and success, either by writing, or if you're visual, you could do a pictorial representation.

Challenge your assumptions

Ask yourself if you genuinely understand the concepts of business, so that you can know what you know and what to work on. Don't do this work when you’re under pressure, and trust that your understanding will grow with time.

Break it down (Tiny steps)

You will learn how to take baby steps toward starting a personal relationship with your concepts and challenging assumptions so you can pick your best path. Here’s how you can break it down.

1) Money: At this stage, you will need to use and manage borrowed cash for growth. Answer the following: Do you have money to invest in your business? Do you have access to cash? What is your relationship to having or not having money? Do this first before you move on to the next conversation.

2) Risk Tolerance: If you have no idea what your risk tolerance is, don't worry. To understand, ask yourself: Am I financially secure now? If so, for how long? How much do I need now and three months from now? What am I willing to risk being without right now? Etc.

3) Financial security: This could mean settling all your bills for basic amenities and still having a little extra. It could also grow to include mortgage, tuition payments, savings, etc. Figure out what the dollar amount on your monthly need vs. wants is, determine what the space between the figures tell you and how your needs and wants will change over the next couple of months.

4) Profit: Don't make the mistake of comparing your compensation with profit. Profit is the asset you will use to build your business. Pay yourself first by picking a percentage for your compensation. Your profit is the gross revenue minus your compensation minus expenses.

5) Success: What is ​success for you? Whether it is a vacation in a country yearly, or being able to stay in five-star hotels, paint that picture in your mind. Think about how you want your success to look like in a couple of years or when you're eighty

The French Press

A french press is that one thing that can make you feel like everything is okay in the world. Create a list of things that make you happy no matter what and do not compromise.

Work with what you’ve got and made​ it work

When you're about to start a business, the general idea in your head is that you have nothing. But that is wrong; your nothing is a whole lot of something. So, be honest with what you have, what you don't have and what you need to get. Don't minimize or overblow it. Make a list of all you have right now in two ways:
• The regular and comfortable way, where you write it out on pen and paper or your laptop.
• An unusual and uncomfortable way where you write left-handedly if you're a righty and vice-versa.

Doing it the uncomfortable way will give you ample time to think because it will slow you down. Compare the lists to make your final copy. Your list can include family, housing, trust fund, savings, skills, friends, etc.

Money is not everything. Think about money as a tool you use to build something. How much money is enough for you to live and work with? What is the least amount you can live and work with, and still have some fun? The author recommends that you allocate 10% of your baseline towards savings and another 10% towards fun.

Who you know and how much information or advice you can get from them is also very important. Relationships are vital; so, set out to meet people or any brand that relates to your “why” and find their origin stories. Talk to these people, find out what sparked them, and filter out what you want or what you don't need.

You can ask questions like:
• What inspired you to start?
• What motivates you?
• What was and is your financial picture?
• What is your biggest obstacle or what does success mean to you? Etc.

Attend networking events filled with like-minded people, or people in the niche you would like to start, to accustom your mind and body to that kind of setting. If you feel uncomfortable going to your first business event, remember that you are not the only one feeling like that. Don't leave. Stay and keep going till you're comfortable.

If there's someone in the room, in particular, you want to discuss with, and you’re freaking out, calm down, set your posture right and enter the room like you're the Queen of England.

Then, some other time, try talking to someone who you see standing alone. Make sure to do a lot of listening, and unless you’re uncomfortable with it, share the idea of your business.

These five tips will help you in walking into a room with strangers:
1. Make sure you’re not thirsty or hungry or tired.
2. Pick a mantra or song to get you out of your head.
3. Take a few centering breaths and walk into the room.
4. Commit to listening versus talking.
5. Be curious

Taking tiny steps: Let your “why” speak

You need to take some tiny steps, try out some things to convince you that you’re sure of what you’re about to do. Do a survey, or get more info.

After this, put a name to your business, product or service you’re rendering, and find an intellectual property (IP) trademark lawyer to help you get started, to prevent the massive cost of fixing the problems later.

When there's a heap of things to do, and it feels like there's not enough time to sort them all out, prioritize your tasks into “need to do” and “nice to do.” In time you’ll find that the nice-to-do​ pile is so high that it outweighs the need to pile by volume. Sort some out or throw it out. If it is that important, it'll reappear, and you’ll treat it then.

Find opportunities that will sell out your idea to the right public. The author got to know about Earth Day, applied for a stand, and sold out at only four hours. This event was the first step to their media breakout.

Additionally, share your story — everywhere with everyone. You never know who is in need until you find out.

Tiny Business 80/20

The Pareto principle states that 80% of results are produced from 20% of efforts. In Tiny Business, it means for every 80% of results; we need to give ourselves a minimum of 20% permission to fail and reboot.

The point is we can’t control everything, and being perfect isn’t a good strategy. So, a softer focus will allow you to breathe, step away, and create room to gain new insights. It's when you get a glass of water. Keep reading to find out more on that.

Get a Glass Of Water

When you have business emergencies with conflicting priorities like if the promise to your employees is a four-day holiday weekend and a rush job comes that will pay handsomely but will impact that promise, what do you do? You calm down, focus and figure out a solution.​

When the author's kids had a fight or bike accident, she would take a glass from the shelf and fill it with water, and have them drink the water before asking them what had happened. This gave the space for more calm and focus, which is why she applied this to her Tiny Business

Don't Let Business Become Busy-Ness

Don't rush to fix a problem that springs up. Take the time to apply thought and intention to the issue — break the problem down before you break down. The author’s system for reviewing problems are:
1. Get a glass of water.
2. Reframe the problem as an opportunity.
3. Figure out which of the following three buckets it falls into:
a. Those you've seen before and had options X, Y, and Z to fix.
b. Those you've seen before but not all. What’s the same and what’s different. You may need help with this.
c. Those that make you feel completely blindsided.

Even if it means losing the immediate business, act according to your Tiny business priorities

Listen To Your Tiny Voice

Listen to your “why” to choose your path. It is essential to have a good story to tell and listening to how and where it lands. With a story, you not only connect to like-minded people, but your product will also be aspirational. You have to get the most from “whatcha got” while staying true to “who you are.”

What differentiates you from other businesses, is your articulated intentions, your journey, and how telling your story inspires others. To market your “why”:
Win an award — You’ll find that the returns on getting an award are all about raising your profile and building momentum. Find relevant awards, and nominate yourself for them or get family who would. Even if you don't win, some events will still invite you to meet with other participants of the awards, thus increasing your recognition and exposure.
Get media/influencer attention — choose an influencer who shares similar views as you. Always have your complete LinkedIn profile, two-sentence summary describing yourself and your company, short bio (125-150 words), long bio (300 words), professional headshot in high and low resolution on hand. Also, having a social media handle, a website and a complete list of company awards and recognition are essential.

Sometimes, you have to give to get the visibility you need. The donations will make you feel good, and also create mutually beneficial relationships. Find brands that are hungry for your service and products and cater to them; then they'll in turn offer visibility for you. Put a market value on your goods or services, ensure visibility, negotiate on partial or full value exchange and get sample assets for your files.

To connect more with your users, get a logo that shares your story, portrays your brand and connects you with new and repeat customers. Then, think differently, attend trade shows and conferences, to allow more room for networking.

Practice the act of listening, not just to members of your tribe, but even to naysayers, because amid the noise, you may find one or two tools that you can use to your advantage.

Listen and trust your Tiny voice and allow it to speak for you — remember taking care of yourself comes first before you can take care of business.

Be Ready For Takeoff

When your company begins to grow, the customers increase too, along with the attention of the industry on the product, and of course, the competition starts. Mind you, as the business grows, if there is no anticipation made towards unexpected recession, the slowdown will hit hard.

The tips to ensure you are ready for anything are:
• Keep your overhead low
• Expand with caution and lead with agility
• Know your lending sources before you need them
• Keep asking yourself “what if?” from many perspectives
• And always be forecasting.

In every business, you have to pay attention to the industry, the economy, naysayers, the environment and everything that could affect your job, so that in the end you’re able to take necessary actions.

Once you see that you’re overwhelmed with too many unsolved issues, pick up the phone, stay connected, and work out a solution together.

To prepare for a downturn:
Expand cash flow
Slow down accounts payable and speed up accounts receivable by taking credit card payments or other incentives
Trim staff hours
Focus on the need to have versus nice to have

When the competition gets tough, collaborate. Onyeka Obiocha, Director of Innovation, Yale University, coined the word Co-opetition from joining competition and cooperation. Co-opetition will not only grow your brand, but it will lead to healthy interactions with brands. But never forget to protect your brand legally, to avoid situations where the collaborators try to kick you out of the market by using or selling your brand.

The Tiny Business Is the Lean Business

When building your business, it's not just about hiring accountants or a bookkeeper; you have to know your money like the back of your hand. Decide what enough cash is, or what your baseline is, and tie it to your level of confidence with sales and expenses, based on the findings you’ve gathered through the relationships you’ve made. The ideal cash flow position means having enough cash to:
• Do what you need to do.
• Allocate a percentage to what you want to do.
• Have a safety reserve leftover​ for just in case.

If you ever get a credit card, make sure to pay off debts in full every month or if the interest rate is low, carry over to the balance and schedule payments monthly, and always paying more than the minimum.​

In business, you need good credit to show that you understand how to borrow and repay and have a history of doing so. Credit and loans can be a lifesaver and business opportunity when used appropriately.​

Accounting is a tool to track and record your everyday financial reality. It follows how much money made from sales, or how much you pay for rent, utility, marketing, etc. It will also show if you’re going to miss payroll or inform you when your most important client hasn't paid in two months.

Layout a projected monthly income statement and have a line for every revenue and expense that you track in your accounting system. Then you need to measure what happens each month against your forecast, to take the necessary steps.

Apply the 80/20 as an operational guideline, and figure out who your top 20% of customers are and how to make sure they are kept happy. Know what products or services you provide that bring in 80% of your sales and how to ensure you’re never out of them?

Create both personal and professional relationships with your partners to make sure you’re on the same level, establish trust and the metrics once you’ve articulated your “why,” it will guide the day-to-day “how” of your Tiny Business

Walk To Work

Sitting at a desk all day isn't right for you. Staying fresh and open to new ideas is part of being on top of your game. So, exercise your mind and body. Make it a part of your schedule, and urge your employees to do the same.

Whether you work in your home or an office, walk at least twenty minutes every day before you start your workday. The benefit from these walks will outweigh all the reasons you can find for not doing it.

Make it a team activity. Whether it's to take your staff out for tea, or a meeting, walk there, to set a living example of how healthy you all should live. You can change your patterns, start a new habit if you feel like you’re stuck in an old one.

Schedule a “meeting” with yourself, to give you the feeling of urgency. If it's going to the pool or going to the spa, take that time out for yourself.

Allow yourself that free time, tune in and turn off all work related things. Also, make time for vacations and when you have to travel for business, make it an adventure.

Quit?

There are two types of quitting:
• Quit for the day, at the end of the day: Here you’re tired, so you go home or close your computer if you’re already home. Stop working!
• Quit your business: Here you are burned out and can’t possibly suffer another week of doing what you’re doing — even though it's on your terms.

The author suggests that you quit at least once a year. Make a list of the things you want that you're not achieving. Find the ideal job that will allow you to accomplish those things, rewrite our resume, send it out and go on interviews. Do this to recall why you chose the Tiny Business

Conclusion

Don't fall into the trap of isolating yourself. When you do what you do, share to others so they can benefit from what you’ve learned. It is an act of generosity.

Speak whenever you're invited and look for opportunities to mentor others, it's a way of giving back what you've gained.

Also, share to make connections. Most people want to connect with the success, hurdles, downfalls and how you managed to make your vision work.

There is no place like home, so go to the community you belong to and interact with people. There are many enlightened, engaged and generous people there. Visit libraries, Rotary clubs community colleges or universities to relay your experiences.

Try this:
When you feel like you’re stuck or in a rough pile, relax, get a glass of water, and watch as the magic of your Business.