No Limits Ladies.com

Wrapping paper pretty much drives me nuts. It’s a hassle to store (those long rolls), there’s paper for every occasion, and it ends up in the recycle bin (or even worse, the garbage).

That’s why I prefer to use alternatives to wrapping paper. My favorite is the tea towel. I always need tea towels. Mine get stained with nasty spills (tomato sauce gets me every time, every time I use some, it ends up on the floor, a reason for easy to clean tile in the kitchen) or… okay, I’ll admit to it, burned (don’t ask). I figure that others, even those less clumsy than I, have the same issue. And tea towels can be found inexpensively at the dollar store.

Other wrapping faves are old calendars (too pretty to simply toss), pages from themed magazines, and even advertising (what else would you expect from a marketing bunny?). Some frugal folks recommend wrapping with newspaper but I don’t like the ink getting on my (and the receiver’s) hands. Too messy.

If I do break down and buy wrapping paper, it is usually at one of those after Christmas sales. I buy the solid colors, red (lucky in the Asian world so I can even use this for weddings), green (I’m half Irish) or that beautiful Hanukkah blue (no reason other than prettiness). That way I can use it all year for all occasions.

I store the wrapping paper underneath a bed (in one of those long plastic containers) along with tape, ribbons, and cards. That way all my present giving supplies are in one place. Saves me time (more valuable than money).

Ram Charan has a great post revisiting the basics of business, key things that an investor should know before buying into a company. They include cash, margin, velocity, return and growth.

There is a reason why cash is listed first.

Being an accountant, I know that most financial statements, the profit or loss (income) statement especially, can be fudged (or “smoothed”, whatever word you wish to use). Want to make the bottom line look good? Decrease the allowance for bad debts or expense accruals or “sell” product into a friendly customer’s inventory. Voila. A better looking profit number.

And believe me, it happens (Sorbanes or not).

However, cash… cash is difficult to mess with. The statement of cash flows tracks exactly that (and if the company doesn’t have a statement of cash flows, do even more research), the movement of cash through the organization.

‘Course companies in serious financial difficulty can play with this too by not paying their bills so always have a look at the payables line on the balance sheet, see if that is growing faster than expenses (and see if expenses are growing faster than sales).

If the cash flow is positive, you shouldn’t just stop there. Good investors look deeper, into the line items. Is cash flow positive because the company took out a huge loan? Is it negative because they bought a new factory to lower costs and increase profitability? Look at it line by line. Do you understand all the money sources and money suckers?

If you don’t understand how the company is making and spending money, even after doing research, don’t invest. There are plenty of other companies to choose from.

I was talking to a buddy of mine and she proclaimed proudly that she had trimmed her holiday card list down to less than 20. I gawked at her in horror, not understanding why that could ever be a good thing.

I know, I know… it would be less expensive to have a smaller list. Less cards to buy, less postage, and…

Less connections.

You see… one of the most valuable things you have is your contact list, a list of everyone you know and stay connected to. The longer the list, the more valuable it is.

The people on your list may be friends, family, former co-workers, mentors, lawyers, vendors, recruiters. People you have built a personal or business relationship with. That is the difficult part.

So do the easy part, stay in touch. Even if it is only once a year by sending a holiday card. It is worth the investment.

An example:

When I heard I was getting laid off (the company was reducing staff by 20% and I knew project people would be the first to go), I sent out an email to my entire contact list. Within a week, I had dozens of leads, even a couple job offers (from people who knew my contact so well that they felt confident about hiring me sight unseen). The boost to my battered ego alone was worth my holiday mailing cost.

Grow that holiday mail list, don’t shrink it. My goal is to have it longer every single year.

All businesses were small before they got big (some stay small, of course) but to land the big clients, any business has to sound BIG.

So how to do that while still staying within budget?

Brandi Cummings, Co-Founder of Telecentrex and www.Freedom800.com, a virtual PBX provider / site, gives us her best tips.

"The fastest and most cost effective way for a small business to upgrade its image is to upgrade their phone system. With advances in technology, even the smallest businesses can sound like a Fortune 500 company.

The best thing about these virtual PBX systems is that they can be found for between $10 and $40 a month so they fall nicely within the small business budget."

Yes, we finally find out what PBX stands for. And $10 a month? Considering what I'm paying for my cellphone, very reasonable. If you'd like to find out more, definitely check www.freedom800.com. I love the overview page detailing how the systems work (in plain English, no telephoneze required).

A buddy of mine bought an older condo. The owner was going to sell the condo and the parking spot separately but my friend insisted that the parking spot be included, even though she doesn’t have a car.

Why?

She knew that a condo with a parking spot would resell faster and at a higher price than one without. She also knew that the condo was poorly designed. There wasn’t a parking spot for every unit and there certainly wasn’t a parking spot for the two cars typically coming with today’s couple/family buying the unit. This made the parking spot more valuable real estate than the condo itself.

What is she going to do with it? She doesn’t have a car so she won’t be using it herself. Instead, she’s renting it out (and getting quite a nice return on it too, all while her spot appreciates).

What if you have a house, instead of a condo? My father-in-law’s neighbor is renting out half of his driveway to another neighbor (with car crazy teenage boys).

There are a few things to consider with this plan. The big one is insurance and liability. Another issue, especially with condo dwellers, is whether this is allowed (some condos and even some towns won’t allow it).

I was in the mall yesterday (not shopping, that is done already) and all the beautiful festive dresses were out, tempting me to buy them for upcoming holiday parties. Just tempting me though. I didn’t buy.

I know that if I do buy, for most of the year, the dress will hang in my closet, unworn. If it is in a trendy color, it could easily be out of fashion by the next year. It would be dated.

So I stick with timeless. I have one little black dress and with the right accessories one little black dress is all you need. I’ve worn mine for the past ten years and it never gets tired (thanks to my recent trimming down, I can fit into it again).

Why?

Because I just possibly might have the world’s largest scarf and shawl collection (just joking, I don’t have a dedicated closet for them which I’m sure the world’s largest collector has… sigh, a girl could dream). Over the years, I’ve collected them from all over the world in all different styles. If people press me for what to bring back from their travels, I ask for a shawl or scarf to match a black dress.

There is a reason why French women with their limited (yet gorgeous) closet do wonderful and creative things with scarves. Because it completely changes an outfit (I’m not that skilled, not at all, but even I, with a different scarf, can pull off a different look).

A little black dress is an investment piece.

A loved one fell victim to identity theft recently. The person obtained the loved one’s credit card, her driver’s license, and her social security number. They went on a bit of a shopping spree online (extra scary because they used all three pieces of information online – identity thieves are usually not concerned about the privacy of stolen information).

So how did they obtain all this information? Did they hack into a computer? Steal mail from her mailbox? Send one of those phishing emails? Purse snatch that super huge tote she lugs around?

Nope. They took it all from her tote, while she was sleeping.

The identity thief was a houseguest.

Heading full speed into the holiday season, many of us will be opening our doors to others. Some of these guests we know quite well. We trust those (unfortunately it was one of those trusted folks that was the identity thief, which made it all the more difficult to deal with). Others, well, they may be sweet Aunt Edna’s third cousin or Sally Jo’s new boyfriend or a guest of a party guest.

In other words, we don’t know who is in our house.

And the thing is that we have a lot of personal information lying around. Opened credit card bills on the kitchen table. Binders of financial statements next to the bed (okay, I might be the only one who keeps her financials in the bedroom). A purse left next to that comfy chair in the living room.

Please put as part of your holiday schedule gathering up and securing this information. Or you might spend it cancelling credit cards and arguing with credit bureaus.

Oh, yes, Happy Thanksgiving to all our American readers!

Just finished Kathleen Connell’s new book Moving Up To Millions and wowsers, do I need chocolate. You see one of the big hits to a financial plan is the cost of caring for our elderly parents and Kathleen doesn’t pull punches when discussing this possibility.

According to Moving Up To Millions, 66% of us (and likely higher for us women) will take care of an elderly parent. Many of us will be taking care of children and parents at the same time.

Kathleen quotes $200,000 to support a parent in assisted care for 6 years in a private one-bedroom unit. Want to save a few dollars and take care of them yourself? Factor in at least an additional $7,000 a year (excluding the effects on your employment) on top of regular household expenses. That’s per parent (I have a Mom, a Mom-in-law, and a Father-in-law).

What does she suggest?

“Anticipate caregiver expenses when your parents are in their 60’s. Have a family discussion regarding financial options for funding health and assisted-living costs as your parents age. Secure long term care insurance for your parents, if they have no policy. Discuss a reverse mortgage as a vehicle for keeping your parents in their own home. Ensure that decisions are implemented by power-of-attorney instruments, which authorize to make medical and financial decisions.”

Hhhmmm… I don’t know if I agree with the reverse mortgage bit. You pay for that, sometimes harshly. It is often better for the parents to take out a traditional mortgage and have the heirs pay the interest payments.

Can’t argue with the long term care insurance though.

Sobering thoughts…

Last week, we talked with Brandi Cummings, Co-Founder of Telecentrex and www.Freedom800.com (did I mention that I LOVE interviewing female business owners? Love it, love it, love it) and she talked about how a home based business MUST have a separate phone line for business.

This week, she shares with us the number one mistake small businesses make with their phone system.

"Many small businesses tend to not see the importance of a quality phone system and therefore not pay enough attention to it when they set it up. One of the first impressions a customer gets of a company is when they call them. Small businesses need to make sure that they have their best foot forward.

This means that small businesses can't just grab an all in one phone and answering machine and think they have their communications covered. Their bigger competition has the advantage of bigger pockets, but with the technology available today small businesses can level the playing field when it comes to their communications."

Next week with Brandi's final phone thoughts (on this blog, that sounded a bit morbid, didn't it?), we'll finally find out what PBX is.

Meanwhile I'd better change my business message to something a little more polished just in case she calls (the words are okay but I have a pause in the middle because the hubby was asking me something).

I was in Target a few weeks ago (okay, I’ve been in there since but I saw this a few weeks ago). They were clearing out the Halloween goodies (managed to stay away from the discounted chocolate, put one win in the weight reduction column) and setting up the Christmas/Hanukkah merchandise (already? What happened to the year?). Being the constant marketer, I was looking for how companies market basically the same product to both Halloween and Christmas/Hanukkah shoppers.

One common item?

Pet costumes. Yes, you read that right, outfits for dogs and cats.

The Halloween costumes ran the gauntlet from spooky to cute (I bought a chicken outfit for my sister’s chicken loving cats). The Christmas outfits consisted of Santas, Grinches, and snowdogs. The Hanukkah outfit, well, it was mostly a blue cape (super Hanukkah doggie?).

All were priced fairly high and didn’t require a lot of material.

And people were buying (even the full price Christmas outfits).

There are a few ways to play with this idea. You could design and construct one of a kind outfits (for those very, very special dogs and cats). You could sell the designs to do it yourself’ers (book or individually on the ‘net). You could design and then mass produce.

If I was going the high end route, I’d probably team up with a pet photographer ‘cause odds are these pet mommies and daddies will want a photo done.

Lately I’ve been eating a lot of soup. It fills me up, the broth based soups are low calorie, and it slows down my eating (having grown up with three brothers and two sisters in a low income family, I had to eat quickly or my dinner would be gobbled up for me).

And it saves me money.

How? When a bowl of soup costs more than French fries at McDonald’s (don’t even get me started…)?

I make my own… from leftovers. You see, soup’s original purpose was to use up bits and pieces. Little bits of chicken, bits of veggies, a leftover turkey carcass boiled in water for hours to make a nice broth. Leftovers. Making the little you have stretch. And that’s how I do it.

Sure, it requires more prep time and when I am desperate, I get the canned stuff, but it’s a nice meal and its fairly healthy for me (I pair it with some garlic bread or chili or chickpeas for the always hungry hubby).

BTW… the now exotic French toast originated as a means to use up stale bread. I always get a chuckle when I see these offerings at high end restaurants.

I "met" Sandra Bekhor, President of Bekhor Management online (I didn't even realize that she was from Canada until this interview), I've done some virtual consulting myself (in the past, before the novel writing sucked away my time), so I asked Sandra whether distance makes a difference when deciding on a consultant.

"Thanks to the Internet and email the world has become a much smaller place.

A strategic plan on the other hand is best developed through a series of face-to-face meetings. A business in a rural or suburban setting can, however, maximize efficiencies and limit travel requirement by scheduling its planning sessions as a one or two day event."

So what other factors should we consider?

"Choose someone who really listens.

Often, when we meet clients for the first time, they don’t fully understand the service they are seeking. When you go to a dentist, you know you are going to get healthy teeth, but consulting is a very abstract concept. You will find it easiest to assess this important service if a consultant offers transparency, and takes the time to fully define process, scope, strategy and goals with you."

Yep, its all about trust. I always say that if you HAVE to get the consultant to sign a confidentiality agreement to feel comfortable (every consultant should sign one) then walk away.

I have to let Sandra get back to her clients but there are more great insights and articles on her company's website (http://www.bekhor.ca/).

It is that hectic crazy time of year again. Do you know what your stocks are doing?

‘Cause I sure don’t.

People ask me why I have a financial advisor. Can’t I do it myself? And for cheaper?

Maybe if I had the time. Most of the year, I do. This time of year? No. I hardly have time to whip up these blog posts, not to mention track my stocks.

I have some stocks in my fun portfolio (not managed by the advisor) but I ensure that before I start to get busy (November 1st), I have my funds in solid, dividend paying, going to hold forever stocks. Either that or cash. Once a day or week depending on how crazy my life is, I check to see whether there has been any new news on the companies. Other than that, I do nothing.

My financial advisor, on the other hand, has his instructions. He knows what I like (‘cause I’ve told him that often during the rest of the year) and he is more than competent enough to make decisions in my stead. All I do is review the trades… oh, and work on the zillion other things I have going on (did I mention that my youngest sister is getting married in a week and a half? Adding to the chaos).

I hear from many other investors (mostly male) that I should make investing my first priority. Really? ‘Cause I consider investing a way to give me the life I want. That life (and the people in it) is my first priority.

I have a home business (actually it is mostly virtual). I have a separate business and personal phone line. I often get asked by other start ups whether that extra line (and expense) is needed.

Rather than referring only to my personal experience, I figured that I'd ask an expert. Brandi Cummings is the co-founder of Telecentrex and www.Freedom800.com, a virtual PBX provider/site.

This is what she had to say...

"A home based start up should definitely have a dedicated business line. I would even say it is imperative to both their professional image as well as their efficiency. Trying to use one phone line for both business and personal calls leads to a number of problems.

The bottom line is that a home based business has to work harder to establish a professional image. One of the easiest and least expensive ways this can be done will be with an advanced phone system."

'Course once I had Brandi at my mercy, I asked her a few more questions (like what a PBX System is) so we'll continue on with this discussion next Tuesday.

On the weekend, I went through the house, gathering up clothes, small appliances, knick knacks and other things that I haven’t used in a few years. I did the lazy thing and donated everything to a charity. However, these items could easily be a great source of cash.

But how to maximize the cash?

The September Financial Post outlined what should go to where. The main sales channel for high value property like antiques or art is an auction. For mid range furniture and clothes, they recommend an estate sale at a house or an antique store. Less conventional items are increasingly finding a solid market online through eBay. For the low, low range, the ever popular yard/garage sale is a good option.

BTW… some estate sale trivia…

The four most common reasons for an estate sale are debt, divorce, death and downsizing (not in any order).

The biggest misconception is “That the goods and the setting go together. Often, several people’s property is sold at once, in a house that’s rented for the occasion.”

One thing that amazes me while traveling is how people get acclimatized to all different environments.

I’ve been to the Middle East during the middle of their winter. While I’m perspiring in my light weight dresses, the locals have on woolen sweaters. How can they stand it? Because their bodies have become used to the eyeball boiling heat (simply the thought of the blazing sun reflecting off the sand makes my eyeballs hurt).

The same with the cold. I’ve been to Alaska and my definition of cold is the local’s definition of a nice spring day.

What does this mean?

I enjoy the change in seasons by not keeping my house at one year round temperature. It is cooler in the winter and warmer in the summer.

There’s really not a lot of logic to having my furnace working hard in the beginning of November (as long as the pipes don’t freeze). I get out my flannel pjs (yes, I have daytime flannel pjs and nighttime flannel pjs) and fluffy sweaters and dog scaring slippers (dogs bark at my slippers, I don’t know why). Put an extra comforter on the bed.

Of course it saves money but I also read somewhere that cooler temps keep skin looking younger. At least that’s what I tell my guests (huddled around the fireplace).

As an entrepreneur, I am very slow to hire (employees can be a challenge) yet I don't have time to do everything.

How do I manage? I automate, outsource, and bring in consultants.

When should you consider bringing in a consultant?

Sandra Bekhor, President of Bekhor Management explains...

"Any business that is planning for change or already experiencing it can benefit from the advice of a business and marketing consultant.

The work of a consultant can help transform business objectives into tangible lifestyle, professional and financial plans. For most companies, there is no time like the present to begin that process."

I bring in a consultant when I don't have the skill set (I'm honest with myself on this one) to handle the business critical task and I can't hire "just anyone" to do it. With a cash hungry start up, it is sometimes painful on the pocket book to pay the fees but I remind myself that it can be even more painful if I mess up that task.

Today is the last in our three part series on self image with Allese Thomson from Wesabe.com. Allese has made Women and Image the focus of her studies and is graciously sharing her knowledge with fellow No Limits Ladies.

We've looked at how self image impacts our finances and what the biggest influence on self image is.

So what is the one thing Allese suggests a woman do to improve her self image?

"Is there an activity that makes you lose track of time? Do that as much as you possibly can. It could be anything - hiking, painting, playing an instrument, yoga, walking your dog, reading a delicious book, writing poetry, making collages, designing clothing, rearranging your living room, whatever, it truly does not matter. The key here is that it something you love and is not dependent on anybody other than you. You don’t need to accomplish anything when you do this, you don’t need to impress anyone, and you don’t need to look a certain way, or achieve anything. It should be done just for your sheer enjoyment and pleasure. I have found that when you spend time by yourself engaging in activities that truly inspire and satisfy you, what other people think of you or the media thinks of you starts to become a lot less important. When you do something you love, it’s like loving yourself, making yourself important and cherished. And strong self-image is all about loving yourself for who you are."

A wonderful "trick" Allese and thank you (and Wesabe.com for letting us "borrow" you) for visiting us here at No Limits Ladies.

Oh, I've gotten a few emails about what Wesabe.com is. I asked Allese what the key high points of the system and how that can tie into working with a financial planner.

"Wesabe helps members better understand their spending and work towards their financial goals, which are central when working with a planner. Users can see see all their credit card and bank balances in one place, and can drill down to see exactly where their money is going. Purchases are labeled or "tagged," so members can find out how much they are spending on groceries, shoes, gas, etc. Wesabe lets you create spending targets for areas where you want to limit spending. Let's say my spending target for eating out is $125 a month. Wesabe keeps track of how much I've spent during the month, so at any time I can see how much I have left to spend. By providing customized money-saving tips, Wesabe also helps members get more for their money."

"We've heard from our female members that they really like the community aspects of Wesabe - the ability to share tips, and to ask questions and participate in discussions in our Groups section."

I love, love, love people brave enough to call themselves gurus, I think it takes a heck of a lot of confidence, so when I ran across one of Maria Simone's articles, I knew I had to put her on the No Limits Ladies interview list.

Why?

Because she is The Manifest Success Guru. She helps inventors and entrepreneurs realize their goals.

So what do I ask The Manifest Success Guru?
How about one simple way to add value to a business...

"Ah! I couldn’t put my finger on just one but I would say the top three for me are 1) to be able to establish traction in your market and have “sell through”---- customers are buying from you but they’re also coming back for more; 2) having Intellectual Property ---trademarks, patents, copyrights--- that can be developed for other markets and product lines in addition to being appropriate for possible licensing opportunities which would add revenue streams; 3) establishing goodwill through Strategic Alliances, Joint Ventures, high-profile advisors, and a growing customer list."

What is a common red flag Maria Simone sees in business plans?

"I see great concepts all the time but if it’s unprotected or too easy to duplicate, it may not be worth developing unless you were able to really hit the market fast and hard which could take a lot of resources. Also, I see great concepts but the people at the helm may not have the competencies to execute or may not be willing to “let go” a little bit to allow others to help them. Those people tend to self-eliminate fairly quickly. My biggest concern is when someone is putting lots of effort taking out a concept they’re not passionate about. If that’s the case, then those people have a tendency to lose steam at the most critical junctures. I would say not to even begin if the passion isn’t there to start with."

Uh oh, the passion vs profit debate... must... resist... commenting... LOL

So we have a solid idea for a business, when should we think about raising funding?

"Raise money early on when everything is fresh, excitement is high and you don’t really NEED the money. It will help you right from the beginning to access the resources you need to really make a hit in your market instead of struggling the first few years. Most businesses fail in the beginning because they’re undercapitalized so I’m all for capitalizing from the beginning."

Too true... raise money before you need it.

For more slammin' insights, visit Maria at her blog http://mariasimone.blogspot.com/

Last week, we started discussing things to consider when starting up a daycare business (research for a friend who recently has decided its "too hard" even with Fiona's how to video).

One of the recurring questions you'll hear me ask businesswomen and investors is what they feel the biggest mistakes newbies make. Why? Because I feel that if we help you prevent making that mistake, these posts are worth our investment in time.

So what does Fiona feel is the biggest mistake entrepreneurs make when setting up a daycare business?

"The biggest mistake entrepreneurs make when setting up a day care business is not doing adequate research before opening and that includes a business plan. Too many people gloss over these aspects of starting a day care believing them to be unnecessary and adopting the 'how hard can it be looking after cute kids' mentality. The fact is, exhaustive research and a thorough business plan are the most vital steps you can take in order to open a daycare. You have to know what you are getting yourself into, you have to be prepared for the worst case scenario and the more knowledge you can arm yourself with in advance the better. Anyone who reads my articles knows how I advocate 'on the job' practical experience prior to starting any childcare business. Go to to an established child care provider, get a job or offer your services and learn from those who know, on the ground. That same diligence is required when formulating a business plan and every attempt should be made to ensure an accurate picture of what will be involved in running your business."

And what are some things to look out for?

"Childcare can be a minefield for potential legal issues if you have not done your research and set up strong policies and procedures. These form the framework of your day to day operations and go a long way towards ensuring that you, your staff and children are protected from any incidents that may result in legal ramifications. They provide uniformity across the board and indicate to everyone how things are done at your facility thus protecting all concerned e.g. your safety statement highlights all potential hazards and indicates steps to be taken by you and/or your staff to eliminate said hazards. When setting up your business you will also ensure that you have adequate insurance, fire safety, vetted staff, secure premises, hygiene standards and all other elements that ensure a safe environment."

Of course, there is plenty of more information on Fiona's site and blog. A must read for anyone considering the business.

Now that I've fallen in love with doing interviews (because I learn SO much), I've had a few emails from concerned readers thinking that these are paid for by the guest.

No, you'll be happy to know that No Limits Ladies has still not earned a cent in advertising (or any other revenue). You'll notice that I haven't featured NoLimitsLadies on More Money Mondays. LOL

When I do put advertising on this site (it is very low on my to do list though I eventually should, have the site at least pay for itself), I will make it pretty darn obvious. I'm not a fan of advertising dressed up like content or being tricksy or anything like that.

However, I WILL continue to link back to my guests' sites or products because I think it's a nice thank you for sharing their expertise. Also I want readers to be able to contact our experts if they have more questions. No sense having helpful guests on if I don't allow them to be helpful.

At least that's my thinking. I, of course, welcome any feedback.

Amended to say that I forgot about the Amazon Affiliate links. That I forgot about them says just about all that needs to be said (we use them because they're a way of using cover art without going through the copyright use process).

Alex from Advice Network sent me an email, letting me know about the writing contest his new site is hosting (grand prize a laptop). Since it IS Frugal Fridays here at NoLimitsLadies and I'm a bit of a contest hound, I thought it only right to pass the link along.

More details can be found at www.AdviceNetwork.com.

When I was a kid, my five siblings and I would make up a list of toys, clothes and other things we wanted to receive as gifts. It was a lot of fun drafting it, even knowing that we’d only get one item (if things went well) off the wish list.

I’m 36 years old (yep, getting up there) and I’ve recently been working on a similar list. You see, I’m very difficult to buy for. I have almost everything I want and the few things I do want, loved ones can’t give me (unless the loved one is the hubby with delivery in 9 months).

So I make up a list of fun things that I’d get a kick out of receiving… like colored paperclips. I don’t know why but colored paperclips make me happy. When I’m at contract gigs, I hoard them. One of the toughest things I have to do is leave those paperclips behind when I leave.

Of course, I could buy them for myself but they do cost more. To take away some of that supply bloat related guilt, I put them on my wish list. When people ask, I distribute the list. Sure, it takes away a bit of the surprise but I am less likely to get yet another rice cooker (being Irish/English married to a Chinese guy, the assumption is that I can’t make proper rice… okay, they might be correct about that).

What’s on my list this year? Besides an overly generous buyer for my drilling stocks, items like books, notebooks (a staple for most writers but the ones I receive as gifts are fun and funky), cleverly designed memory cards (which I constantly lose), binders, etc.

Last week, June Campbell from Nightcats.com explained to us the difference between a business proposal and a business plan.

So what is the number one error entrepreneurs make when writing a business proposal?

"The number one mistake that I have seen is the failure to explain the items in the proposal clearly and fully. I have read many business proposals that entrepreneurs have written. All to often, I had to ask the writer to explain or clarify various points. The reader should not have to do this. A busy CEO receiving a proposal like this is likely to trash the document rather than contacting the submitter for clarification. This is a common mistake, however, because we all know our own businesses so thoroughly that we forget that others do not have the same understanding. We miss key issues because to us, those issues are obvious. They are not obvious to the reader, however."

That is actually the number one mistake I make writing novels. I think the feelings or actions or... are obvious but when my test audience reads them, they ask questions they shouldn't have to. Maybe its part of being too close to the work.

So if being too close isn't a good thing, does June think it makes sense to hire an outside consultant?

"The obvious advantage to using a consultant is that writing a proposal takes considerable time. The entrepreneur may be better off spending his or her time in other business activities. Secondly, the entrepreneur may not understand the key elements to include in a business proposal and may not know how to describe the proposed venture in the most favorable light.

However, I believe that no one understands his/her business as well as the entrepreneur himself/herself. Therefore, if he has the writing skills needed, I believe the best business proposal will be the one he writes personally. I have written business proposals for entrepreneurs before, and I know how challenging it can be to understand the intricate details of the business arrangement that I am trying to explain to a third party. I believe the ideal solution is for the entrepreneur to write the document themselves and perhaps engage a consultant to edit and revise the document as needed. I have developed a guide to writing a business proposal that takes the entrepreneur through the steps of developing the document themselves. By using the guide, the entrepreneur can create a well thought out business proposal which she can then have edited by a consultant."

I could pick June's brain for days but I should really let her get back to business. She's a busy woman (aren't we all), and I don't want to steal too much time away from her regular website readers at Nightcats.com (don't you think that's the coolest company name?). It could be better spent writing articles on subjects like How To Botch Your Media Interview (I hear her about business people hell bent on messing up their interviews).