Employee or Business Owner - Which are you?

Employee or Business Owner - Which are you?

Honestly, the vast majority of us fall somewhere in between, but there is a distinct difference. In our entrepreneurial society, many people want to own their own business, but do they truly have the mentality for it? If you do, you have that mentality whether you are working for yourself or working for someone else. I hear it said all the time, "it would be different if it were my own business." I doubt that.

Here are some classic traits of an Employee Mentality:

• I work for a paycheck - period.
• I do not give more than I have to, otherwise the company will take advantage of me.
• They are lucky to have me.
• They owe me because I work here; because they need me; because I'm better qualified; because, because, because, because, because...
• I only do what is in my job description.
• I only work the hours assigned. I will work overtime only when it suits me (and when I need the extra money).
• I do not like change. We've always done (or we tried that before) and there's no reason to change.

Now look at the traits of a Business Owner Mentality

• I work for the good of the business.
• I give everything I have in order to grow the company.
• I am lucky to have this opportunity.
• I only receive the benefits of my effort, if I want more I have to work for it.
• I do what is needed, regardless of my job description.
• I work the hours necessary to complete the task, even if the overtime is an inconvenience.
• I am open to change. I think outside the box and consider all options, whether we've tried it before or not, traditional or not, I am always looking to improve. 

Now, we all want and need our paycheck, and we are all working for that but for the employee, that is where it begins and ends. For the business owner, the money is the reward, not the substance. It is the end result of countless hours of effort, often uncompensated effort.

Do you already have a business or want to start one? Are you willing to do what it takes to grow your business? Great! 

Are you still working for someone else? Hone those skills where you are, because if you're going to start your own business, it's better to take those fully developed skills into your new venture rather than try and flex those weak muscles when you branch out on your own.

Never plan to have your own business? Have an "Owner" mentality anyway, you will be the most valued employee in the company. Rewards follow. 

Christmas Sales, when does it begin?

We're all frustrated with "Christmas Creep." You know, when we start seeing all things Christmas as early as September. It's just too much! Let's let each holiday stand on it's own so that we can enjoy it, rather than the pressure of Christmas buying choking out everything in between.

That said, Christmas is the bread and butter of everything retail. If you're in retail, you know that all too well. That's the reason for the "creep", to help get the most out of the sales and to lengthen the buying season. The wisdom of that can be debated, but the reality of spending quite a bit of time planning for the Christmas season cannot.

We want sales all year long and should have a yearly marketing plan that we can implement for each holiday that will culminate in the Christmas buying season. Christmas, however, will be your biggest season for sales and deserves the bulk of your attention. So when do you begin focusing on your Christmas sales? Ideally, December 26th of the year before. Yes, that means having a plan for Christmas all year long.

If you're a crafter, you need to start building your inventory by at least the beginning of August so that you have enough to last the season. We all have seasonal obligations, so scrambling to make product during this time is counter-productive to your business, and your mental health. It really can suck the joy out of your business. Having ready-made inventory and focusing on sales is your sweet-spot and where you want to be spending your time and energy.

Shipping Deadlines - If you sell online, you realize that this is important year-round, but during the holiday season you need to be especially mindful of those deadlines. This also shortens your holiday season. Unless you have a buyer who is willing to pay the exorbitant over-night rate (and most aren't), then your holiday sales will end about a week early, so be prepared to start those plans early as well.

Craft Shows - if you present at craft shows, those will start sometime in early October, with some shopping for themselves, decorative items, and of course early Christmas shoppers. Craft show attendees are generally dedicated handmade shoppers who understand the value of handcrafted items, so presentation and quality matter. The cost of table set up has drastically increased, so it is important to have sufficient inventory to recoup those costs and make a significant profit. Some of these shows run well past Thanksgiving, so you can hit the traditional buying season.

Brick & Mortar Retail - if you have items in traditional retail venues, the buying season is extended through December 24th for the truly "last minute" shoppers. While that does provide a few extra days, those sales are far less than the ones that begin with "Black Friday" through about mid-December. You'll want to have plenty of inventory to replenish stock throughout the season. Keeping your inventory fresh is key. Too much and there's no incentive to get it right away, too little and it's just not an attractive display.  Traditional retail marketing has it's own strategy, similar to craft show displays, which is decidedly different from online marketing.  The take-away is to be prepared to have enough stock to keep the display replenished throughout the season.

So when does Christmas begin? It begins now.

Is Cash Still King?

How are you getting paid? We're not quite at a cashless society, but many of us no longer carry cash or even write checks, except for on the most rare occasions. Credit cards, debit cards, ApplePay, SamsungPay, PayPal and others offer many options for money transfers and payments for everything from groceries to rent.

In our retail locations, we have noticed a 55% cash/45% card transaction split with the number of card transactions continually rising. We're in a small town with a high retirement population, so I often wonder what those numbers would look like in a more urban setting. My best guess is that card processing would be north of 70%, but that's speculation. If you have hard numbers, please feel free to comment with your experience.

There are so many options, some more popular than others with different demographics. Just to name a few:

• Traditional Merchant Services/Credit Card Processing
• This is the standard terminal, contract with your bank and negotiated rates that have been the standard for businesses for many years. Many of these newer services either integrate into this or seek to replace it. ApplePay & Samsung Pay are simply a convenient phone-based link to a credit card on file that integrates into your existing terminal (if you have upgraded your hardware). There was a time that merchants were at the mercy of the banks and processing companies for their rates, but with the expansion of some of these other options, that is now changing.  
• This is what everyone is used to. Young or old, no one bats an eye at this and it's just what we've come to expect when we check out at nearly any store.
• Mobile Processing (Square, Paypal & others)
• These new companies have entered the marketplace and allow even the smallest of businesses to accept credit cards anywhere you can grab a data connection. Convenient and portable, with rates that are competitive with traditional processing, these companies are quickly becoming the mainstay of small businesses. They are certainly the savior of craft vendors and other mobile businesses that no longer have to turn away a sale because the customer didn't have cash, or risk the dreaded bad check. Again, who writes checks anymore?  
• For in-person transactions, this is still fairly new, and many customers find it somewhere between cool and convenient. There are quirks. Some cards just won't read. But for the convenience, no contracts, and decent rates, most of us won't complain. And we get to sign our name with our finger - something most of us haven't done since pre-school fingerpainting, or at the beach in the sand.
• For internet transactions, Paypal was one of the pioneers in this area, as any eBay seller can attest. Etsy and others have their own direct checkout, but PayPal has been there all along, quietly processing credit card payments for eBay sellers and website stores for over a decade. Square offers a free online store and the ability to integrate their processing into your website, giving PayPal a nice little dose of competition.
• Person-to-Person Payments (Square Cash, Paypal, Venmo, Google Wallet & others)
• These app-centric options are becoming a popular alternative to traditional bank transfers and personal checks for individuals as well as providing an option for businesses to accept payments as well. Most of these services keep funds in the app for instant transfers, or you can transfer it to your bank, which may take anywhere from one to ten days. Ten days? Really, Google? Typical transfer times are one to three days, but that's something you really want to check into with your favorite money app before you decide whether to leave it in the app or transfer it out.
• You'll notice Square & Paypal are listed twice. Well, that's because they are playing for both teams here. They both have the nice little card readers that work with your phone or tablet, but they also have the P2P market. Paypal, one of the first players in this game, started with this method and then ventured into the card reader processing. Square started with the card readers and then added the Square Cash option. 
• These apps are wildly popular with millennials, less so with older demographics. Still, you can split the check, send birthday money, or pay for just about anything and leave your card at home. Just use your phone, because it never leaves your hand anyway. 
• Bitcoin
• I'll leave bitcoin alone as I have yet to venture into this volatile market. I'm intrigued, and perhaps it's worth exploring, but I haven't done so yet. 

This is just a simple view of the landscape, not a review or recommendation of any particular service.  I've used them all, and like them all for different reasons. For mobile processing, I use Square & PayPal interchangeably depending on my needs. 

Square has a nice referral program, so if you're able to grab their free processing, then that's worth focusing on. The funds are deposited into your account the next business day, and their customer service has always been great.

PayPal allows you to have multiple log-ins with separate permissions for additional staffing, Square charges $5/month/employee for that. So, where I have staff, I use PayPal. PayPal funds stay in your PayPal balance until you decide to transfer it to your bank account, but they have a debit card that you can use so you always have access to your money. Their customer service has always been great too. 

So what is the best option? Well, that's easy. The best option is the one that works for you. The one that you're most comfortable with. And you can always use more than one. Heck, you can even use them all!