Check out this great post from Seth Godin

It’s easy to to adopt the policy of avoiding risk at all costs, that whenever possible, the products you launch or the engagements you have should be flawless and without downside.

Here’s the problem: in most endeavors, a small increase in risk can double the reward. It’s the second doubling of reward that brings serious risk with it. But the first leap is relatively painless.

In the chart above, notice that going from point A to point B brings almost no incremental risk. It might feel scary, but rationally, it’s not. Doubling reward again from B to C, though, brings significant incremental risk. It’s this second doubling that gets you through the Dip, that leads to a breakthrough, that makes you remarkable.

But I’m not even talking about that. I’m just hoping you’ll warm up by making the tiny leap of avoiding all risk. Riskless is hardly worth your effort.

Warm weather doesn’t have to mean a meltdown for your profit margin. Check out 10 suggestions via buyerzone.com to help keep your business productive during the summer months.

Bargain hunting
If you’ve been waiting to purchase new office copiers or cubicles, the summer is a great time to shop around. Suppliers may offer good deals to generate summer business Plus, with the tax breaks available through the economic stimulus plan, you can get even more value for your money during the summer.

Research your purchases
A slow summer provides ample time to perform due diligence on major purchasing decisions, even if you don’t plan to buy for months.

Get organized
Even in the summer, it doesn’t hurt to do some “spring cleaning:” start shredding old documents you no longer need. And clean up isn’t restricted to just physical documents — deleting old emails and programs you no longer use can help boost your PC’s performance.

Hire summer help
Local universities and professional staffing companies are great sources for finding young professionals looking for internships or part-time work for the summer. The extra help allows you to hand off mundane tasks like general office duties or data compilation, allowing you to focus on growing your business.

Revisit old ideas
Use your extra time to go back to ideas or projects you put on the back burner earlier in the year. Did you want to redesign your web site? Laying the foundation for new concepts during the slow summer months could help put your company in a better position when business picks up.

Advertising opportunities
While you may tighten your purse strings during the summer, it’s actually a great opportunity to pursue advertising vehicles that weren’t in your original plans. A lack of holidays between Independence Day and Labor Day means fewer retail sales promotions to compete with. Media companies sometimes offer discounted radio or television ad spots to allow you to reach a broader audience.

Schedule business trips
Do you have an opportunity to sign a customer residing in a hot climate? States like Nevada, California, and Florida rely heavily on winter tourism and usually experience a significant drop in visitors during the summer. If you’re willing to brave the summer heat, you can typically find discounted rates on flights to these destinations.

Get reacquainted with your customers
Make sure your customers keep your business in mind, even if they’re not working with you at the time. Use the summer lull to develop email offers, newsletters, and direct mail campaigns to generate interest in your products and services for when customers are ready to buy.

Celebrate your staff
Don’t overlook one of your most valuable resources: your employees. Something as simple as a free lunch or company outing during the summer can go a long way to raise employee morale and show your appreciation for all their hard work.

Take time off
If business is slow because customers are taking vacation time, why not follow suit? After working hard all year to make your business flourish, relax and spend time with friends and family. Besides, abandoning your Blackberry and laptop for a while can help recharge your batteries and make you more productive when you return to work.

For the full article click here.

At CRAVE, we are all about women taking chances to improve their own, as well as other women’s lives. Hope Colling, owner of Marmalade in San Francisco, knows exactly what we mean by taking risks, this is her story.

Before I opened Marmalade, I walked into every single store in every single neighborhood I considered opening my boutique in half a dozen times. I wanted to talk to the owners and get a first-hand account of what was involved in owning a small business, but I was too shy to ask. I was hoping for some encouraging words, because at that point I was unsure if this was the right thing for me. I had the passion, but I had zero experience. And I didn’t have a lot of money. I wasn’t sure if passion was enough to turn a dream into a reality.

The day I found the CRAVE book on the counter in Jest Jewels was a major turning point for me. I read it cover to cover in one sitting, and referred back to it many times while writing my business plan. I learned from the fabulous women in the book who were honest and courageous enough to share not just their triumphs, but their tribulations. I recognized a little bit of me in each of them, and reading their stories gave me the confidence boost I needed to move forward.

About six months into it, I hit a wall. Business dropped off, I was working seven days a week and already feeling a little burned out. I was worried that the ‘honeymoon’ was over and I began to think that I had made a huge mistake. I remembered reading in the book that Donna O’Leary, owner of Ambiance, had said that one of the things she loved most about owning a business was being able to share her experiences with other women business owners and mentoring the up and comers. I sent her an email telling her that I had read about her in CRAVE and that I owned a boutique just a few doors down from her Union Street location, and if she really meant what she said, I could sure use her help.

She emailed me back immediately and then actually took the time out of her busy day to come into my store, have a walk around, and give me her very honest opinions about what changes she thought I needed to make in order to improve. She helped me with my window displays, with merchandising the inside of the store, she even gave me the names of some places and contacts that she had worked with in the past that she thought I could benefit from. To me, this was what CRAVE was all about- a sisterhood. A network of those who had come before and done it well, and were passing their knowledge on to those who needed it!

Any success I have today I owe in part to CRAVE and to all the inspirational women who were and are a part of the CRAVE network. Owning a business is not easy, but if I can do it, anyone can do it….as long as we have each other to learn from and lean on, we can all shine!

Marmalade is featured in our CRAVE San Francisco Guidebook, arriving July 2009!

Hazel Grace Dircksen is the proud owner of Socialbees, a company that supports small businesses and creatives by using social media through an online resource network, as well as crafting optimized Facebook Fan Pages and Social Ads to drive engagement from a high target audience. We caught up with Hazel to get the inside scoop on her inspirations, as well as her indulgences.

How would you describe your business in 3 adjectives or less?
Trusted, Positive, Approachable.

What are your most popular products or services?
Online Social Media resource/support network, optimized Facebook Fan Pages, optimized Facebook Social Ads.

People may be surprised to know…
I was a fashion designer for years before translating my creativity into technology.

What was the inspiration behind starting your business?
Social media can be so confusing for many businesses & I wanted to help ensure everyone could benefit from effectively using the best new tools without being overwhelmed by the clutter.

Who is your role model or mentor?
There have been so many influences in my career, but I think greatest have come through the Awesomepreneurs I’ve surrounded myself with. A few that I truly admire are Alison Covarrubias of Hatch Network, Melody Biringer of CRAVE, Edith Yeung of BizTechDay & Angela Jia Kim of SavorTheSuccess.com.

What mistake have you made in your business that you will not repeat?
Picking the wrong business partner.

How do you spend your free time?
I’m a born connector and my hobby is hosting social dinners that bring together amazing people over fabulous food and wine.

What is your indulgence?
Oxygen facials by Pearl Dworkin (Optimum Skin Care, SF).

Where is your favorite place to go with your girlfriends?
I rarely go to the same place twice. Adventure is so much more fun!

Check out Hazel’s spread in our San Fransisco CRAVE book coming to stores July 2009!

Click here to read The Socialbees Guide to Saving Face on Facebook by Hazel

Have you ever wondered why the Biznik logo is always on the right column on this blog? The answer is in Biznik’s tagline, “business networking that doesn’t suck”. CRAVE is all about small businesses and so is this great network, since it is a community of entrepreneurs and small businesses dedicated to helping each other succeed. Check out this short video that sums it all up:

Visit biznik.comto get started and click to watch more inspirational videos.

This great article was written by Romy Taormina of PsiBands, via Savor the Success.

What is a rep?
Broker rep. Sales rep. Showroom rep. They go by different names, but their job is the same. They represent your product and the goal is for them to help you get new accounts.

Why would you want/need one?

• Because they might be able to help you get in front of a buyer when you might not have been able to do so on your own.
• They should be familiar with the retailer that you are seeking so they can educate you on what to expect when working with this retailer (their margins, their promo allowances, sales projections, etc.).
• It gives you a sales person. It cuts down the amount of your travel, so it saves you time (and, hopefully, if they are local to the reatiler, it will save on travel expenses).
• It cuts down the amount of communications, because the rep will be handling a bulk of it on your behalf. The more accounts this rep handles on your behalf, the greater economies of scale reached – for you and your rep.

How do I find one?

• Word of mouth
• Through a tradeshow
• Call up and ask a fellow entrepreneur who is in the same category as yours and ask her for a recommendation
• Through your existing retailers

What if the rep won’t rep you?
If you find a rep that won’t represent you, make sure you understand why. For example, perhaps they rep for Target but in a different category than the one that fits your product. Maybe they know someone who reps in your category at Target. It’s all about the best fit so everyone is maximizing their time.
Sometimes reps and retailers are resistant to working with companies that only have one product/product line. We have found this to be true in some cases, and in some of those cases we have overcome. So, keep plugging away.

Here are some questions that you could ask of the rep (choose those that are appropriate for your situation):

• What is your territory?
• Are you are considering representing me nationally? Can you give me some examples of other companies that you represent nationally?
• You have a wide range of retailers – drug, grocery, mass, catalog and online. Which categories/departments does your team specialize in?
• Where are most of your product lines?
• Do you have products in my category? If yes, which one(s)?
• Can you provide manufacturer references?
• Where are you located in relationship to the retailer headquarters?
• What are your payment terms (retainer, commission, travel expenses, etc.)

Before contacting a rep, make sure you are prepared
You may only have one shot with this rep (treat this as a special opportunity, just as you would the first time you meet with the retail buyer).

• Craft your sales pitch. How is your product unique? Who is your competition? How large is your market? You need to convince your sales rep-to-be that they should rep you.
• Can you fulfill large orders on time?
• How will you support retail sales – in and out of the store (i.e. what are your marketing plans)?

Together, Alison Covarrubias and Claire Fontana have created a business education network for women entrepreneurs. Hatch Network teaches women to take their businesses beyond the launch by creating solid foundations built on informed decision-making and high ethical standards. Their members contribute time, energy and experience so that we all may become wise and successful entrepreneurs with sustainable businesses that thrive in a changing economy. These two ambitious women present the inspiration behind their successes:

How would you describe your business in 3 adjectives or less?
Energized, Focused, Motivated

What are your most popular products or services?
Emerging and Expanding Business Pods - small group education programs for the foundation building and growth stages of a business.

What was the inspiration behind starting your business?
In the field experience and responding to direct requests of the women we worked with.

Who is your role model or mentor?
Our role models and inspiration: a guru, a father, a mother, a duo of boys and a really cute kid.

Where is your favorite place to go with your girlfriends?
Any coffee shop or nail salon with a spa chair will do.

Check out this dynamic duo and Hatch Network in our San Francisco Guidebook arriving in stores July 2009!

Linda Derschang, legendary entrepreness behind Seattle hot spots like Smith, Oddfellows, King’s Hardware, Linda’s Tavern, and the Rob Roy, recently took a moment to share some of her business philosophies, secrets and inspirations with us. Read her thoughtful words below.

What was the biggest surprise you have had as an entrepreneur?
People get the impression that as the company grows, there’s less work to be done on the part of the owner. Its mind boggling. The bigger the company gets, the more work there is to be done!

What have you done to make your business more profitable and your finances more stable?
Buy low! Sell more! Keeping the businesses casual, and affordable, has always been really important. Despite the aesthetic development that happens with every new business idea, it has always been paramount that they remain accessible.

What are three top things you invest your time and resources into to grow your business?
Our employees, the design and details of the businesses’ interior space, and the daily or weekly financial analysis necessary to keep everything running smoothly.

What type of marketing efforts do you plan to increase over the next year and what things are you eliminating or decreasing investment in?
The devil is in the details. Little things like making beer cozies for King’s and throwing weekly movie nights on the patio feed the culture of the created space. Its just a matter of providing more to our customers and not necessarily using advertising in print as a means of popularizing ourselves.

Share some ways you stay motivated, encouraged or brave.
Staying motivated has never been an obstacle. There’s always so much going on, and you just can’t let it slip. There are so many employees counting on me; its just not an option. I work in an incredibly creative environment with interesting people. Its always changing which keeps it from getting boring or mundane. My encouragement comes from walking into one of my places and seeing them full of satisfied customers- that’s the applause and the pat on the back! Brave? Sometimes its a fine line between brave, and just plain crazy.

What advice do you wish someone gave you as you were getting started?
I tell people to think about whether they really want to run a business. Its great to have an idea, and fun to cultivate a project’s design, but think about the future and whether you want to do it every day.

Share something you are excited about right now.
I’m going to France this summer! I’ll be there for two weeks with my family and some dear friends.

Share a website, book or some other kind of resource you have found valuable in building your business.
I subscribe to about a dozen magazines, and pick up another 6-8 per month. Whether its food, design, or business, they’re a great source of inspiration.

Check out the second part of the list of the most common legal issues women business owners face. While this list is not an adequate substitute for proper legal advice, it should provide women business owners with an initial “checklist” you can later review with a trusted legal advisor.

6. Implementing appropriate vendor and client contracts.
Too often, women in business fail to put the terms of their business transactions in writing. Business owners sometimes hesitate to insist on a written deal, fearing that the other party will feel a lack of trust. All transactions of significance (irrespective of monetary value) should be documented in writing. Also, contracts proposed by vendors and clients should not be accepted without question. Owners should take the opportunity to negotiate more favorable terms. If an owner does not speak up for herself, who will? Usually, suggested changes are positively received. And, even if the other party refuses to accept the proposed change, at least the groundwork has been set for future negotiations.

7. Addressing conflicts that arise with friends hired as employees
Hiring friends as employees is a common approach taken by women business owners. Hiring friends is often easier than hiring strangers since their backgrounds are known and there is a level of trust already established. However, it is often difficult to make sure the friendship does not blur the employer-employee relationship to the detriment of the business. By setting out written vacation and sick-leave policies as well as performance expectations, conflicts and stress can usually be drastically reduced, if not eliminated.

8. Addressing conflicts that arise with partners and investors
Going into businesses or accepting investments from friends, families and business acquaintances presents the same risks and potential conflicts as does hiring friends. Again, the key to reducing and hopefully avoiding such conflicts is to be proactive. Business owners should talk about and plan for the “what if,” and then put that plan in writing from the outset.

9. Learning how to negotiate appropriate terms and conditions for commercial leases.
This common pitfall is similar to the one concerning vendor and client contracts. Too often women in business do not consider their legal rights or investigate the current marketplace before signing commercial property leases. Business owners need to have all the information before they can weigh the pros and cons of signing a lease. Each lease should be read thoroughly and any term or condition that is unfavorable should be questioned. The worst thing a landlord can say to a proposed change is “no,” but at least then, the owner will have all the information necessary to make an educated choice on whether to sign the lease.

10. Determining how to appropriately and effectively handle collection matters.
Unfortunately, all businesses have to deal with outstanding accounts receivable. Learning her business’s legal rights and how to implement effective account origination and collection policies and practices is the best way for a woman in business to ensure success. With proper planning, outstanding accounts are a manageable nuisance, not an overwhelming problem that disrupts the success of her business.

Click here to get in touch with Renea.

Click here to read part 1.

Women business owners still confront a handful of obstacles regularly faced by most minority business owners. The most cited barriers include negative perceptions about their ability to run a business, differential treatment by customers and suppliers, and lack of access to capital.

Check out Renea’s list of the most common legal issues women business owners face. While this list is not an adequate substitute for proper legal advice, it should provide women business owners with an initial “checklist” that can be later reviewed with a trusted legal advisor.

1. Determining what kind of corporate entity to create, and creating it on time.
Many women in business are not sure whether they should create an “S” Corporation, a Limited Liability Partnership, a Limited Liability Corporation, or operate as a sole proprietor doing business as (“d/b/a”) a particular business name. They also often fail to create the proper entity early on. Once the appropriate business entity is initiated, it is critical that all the necessary paperwork be completed (e.g., licenses, articles of incorporation, bylaws and/or managing agreements), formally recorded and updated each year.

2. Distinguishing personal assets from business liabilities and protecting both.
Many women start their businesses using their savings, retirement funds or credit cards. It is also common for women to grant personal guarantees or other security in order to obtain financing for their business. This practice exposes women to unnecessary liabilities and prevents them from building a business credit history for the future.

3. Choosing the employment structure for the business model.
Deciding whether to hire independent contractors or employees can be difficult. Whether or not to make the owner an employee of the business is another tough decision. Often, the wrong employment structure is chosen and, as a result, the most appropriate employment policies and practices are not put in place early enough.

4. Deciding to use noncompete, nonsolicitation, and/or nondisclosure agreements and when to enforce such agreements.
Many women are hesitant to use noncompete, nonsolicitation, nondisclosure terms and conditions with their employees and vendors. Some women incorrectly believe that such agreements cannot be enforced even if they are in place. These agreements can be drafted in a manner that is fair to both the business and the other parties.

5. Recognising and managing intellectual property.
Recognizing and managing intellectual property is often overlooked by women in business. Before deciding on a trademark, a business owner must make sure it can be protected and does not infringe on another trademark. Once that is determined, it must be registered and protected in agreements with employees and business associates. Intellectual property should be reviewed at least annually, since businesses usually generate additional intellectual property as they grow.

Click here to get in touch with Renea.

Check back Friday for part 2.