Kathleen Hogg: I started Bath-a-holic after the birth of my second daughter. My epidural went wrong, and I began suffering from Chronic Neuropathic Pain Disorder. To alleviate pain I was taking a lot of baths and spending money on expensive bath products, which I did not feel did any real good other than having a pleasant aroma. Also, my daughters had reactions to a lot of the products that were deemed “gentle”. So, I decided to make my own bath bomb and came up with the “Cupcake”. I thought it was a fun idea and the product line just took a natural evolution, where I had people asking me for different products and I started making them. I studied up on natural remedies, which is key to my product line. The products are unique, because they are made in small batches for quality control. They have been designed to meet the needs of my target market; those who wish to have high quality products, with little additives and that actually do what they say they are going to do. I wanted to reach people who have sensitive skin, yet don’t want to pay the high cost of some of the more elite brands.

What kind of products do you sell? Do you sell both on and offline?

Kathleen Hogg: I have an online store www.bath-a-holic.com, and I also sell at some shows, through pick-up at my home, via placement in stores/yoga centers and through “Boutique Nights”. These are events where people host two or three different vendors and sell during the evening. I also have an option called a “Pamper Party”, where I provide hand treatments and have an individual consultation with a client. This allows people to purchase products that are relevant to their body and needs. I sell products for Bath, Body, Hair, Feet, Scalp and we have specialty products as well such as our Sickie Poo Pain Rub - a deep heat pain rub without the sticky residue and overwhelming aroma of other well-known brands. My pain specialist has been trying it out on some of his patients with great success. There is Bug “Grr” Off, a natural insect repellent, and Super Soothing All Purpose Salve, which can be used as a stretch mark cream, diaper cream, burn salve and for other various skin related conditions. Our Soothing Sauce is great for raw eczema patches on the scalp or skin, while also making an ideal after shave and hair mask. There is Germ B Gone, a natural and gentle anti-bacterial soap. The product lines are available for babies, children and adults.

What has been the most challenging aspect of launching this business?

Kathleen Hogg: The most challenging aspect of launching this business is getting people to try my products. Many people are committed to their brands, so it is difficult for them to switch. People are also hesitant to test out new products on their children. One great thing is that once people have tried my products, they tend to come back for more. I have several children with sensitive skin, who are now exclusively using Bath-a-holic products. It has also been difficult balancing family, work and my medical condition. There are times when the pain has made it a little tough to get things done, but it is a continuous process. Another challenge is proper wholesale pricing. I want to make sure that the prices are such that many people can afford them, so markup with retailers is an issue. I wanted to make sure that my Web site prices were the same as the stores. Pricing from that perspective has been difficult as my ingredients are expensive and the shelf life is an issue due to the fact that there are very little preservatives in some of the products and natural ones in others. So, quality control is a concern for me. However, I do wish to have my product more accessible to the public.

Did you write a business plan? How did you fund the launch of your business? Are you currently seeking investment?

Kathleen Hogg: I did write a business plan and it is modified every so often to change with how I see the product line and business model changing. I have funded the business entirely myself and have received no outside funding or investment. I currently have another business that has helped to finance the development of Bath-a-holic. Debt was not one of the things I wanted to take on. I also have reservations about investors, as I wish to have control over the business.

Is this your first start-up venture?

Kathleen Hogg: No, this is not my first start up. I currently have a business consulting company that I began upon the birth of my first daughter. I was lucky enough to have her just three days into 2001, which allowed me to take a year of maternity leave instead of six months. I knew that I did not want anyone else to raise her, and my previous job required quite a bit of travel. So this seemed to be the best course of action. Having the bath business as well is wonderful as the girls have input in the product names, packaging and development. I mean what little girl doesn’t want to help with bubble bath, sudsy soaps and glitter goop! Having my consulting business certainly helped me have a bit of an edge in developing Bath-a-holic.

What advice can you give others looking to start their own businesses?

Kathleen Hogg: I would advise that you choose something that you really love. Make a list of your favorite things to do and think about what is missing in the marketplace. Come up with ideas that fill some of these voids. Make sure that you do a business plan first, get your name set and research your competition. Don’t discount someone because they have an ugly Web site or appear to be the only company competing in your niche. Go slowly - don’t make promises that you are unable to keep. Talk to other business people and really listen to what they’re saying. Even if they are not in the industry that you are in, you can learn loads from other people. Don’t take criticism personally; rather use it to improve your product, idea or service. Use the criticism to your advantage. Continually analyze how your business is doing, by conducting research through focus groups or questionnaires. Make sure you have a lawyer to assist you in the different aspects of your business. For example, partner with someone knowledgeable about government regulations in your industry, whether or not to incorporate and specific contracts and disclaimers, as these are materials that you will need. I would also do a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis on yourself and your business idea. Knowing your weaknesses is just as important as knowing your strengths. Finally, stay positive. It is in an uphill climb starting a business, and there are bound to be nay sayers and many challenges.

If you had to start all over again, what are some things you would do differently?

Kathleen Hogg: I would probably wait a bit longer for my product launch and work on creating my corporate identity a little more. Loving what I was doing, I found it very difficult to stop creating new products.

Great advice, Kathleen!

• Shower them with love. Make sure your customers are happy customers – every customer experience should be a positive one. Go the extra mile. Listen to what your customers have to say. Let them know personally when you have implemented one of their suggested ideas. Ask them what you can do to keep their business. Always respond to e-mails and phone calls in a timely manner.

• Ask for referrals. Don’t be afraid to speak up. Send a thank you note to customers who have provided a referral.

• Implement a special program, such as a Frequent Buyer Program or a Rewards Programs. Incentives can and do work wonders for many small businesses.

• Properly convey the benefits of your product or service across all mediums. Don’t let existing customers forget why they came to you in the first place.

• Add a value-added service – something extra that is included as part of the sale. If you offer a resume service, throw in a cover letter at no charge. Provide gift wrapping or complimentary eyebrow waxing. The possibilities are endless.

• If you operate a local business, get involved with your community. Participate in special events or sponsor the high school football team.

• Have fun with your customers! Hold special promotions and contests with a twist. Consider teaming up with another business. With today’s economy, customers can use a little pick-me-up.

Pros and Cons of Buying an Established Business

Pros:

• Buying a business that is already up and running offers you an expedited way to get into business.
• Some established businesses offer reduced risk and increase your odds of obtaining financing, because they have favorable track records and historical documentation.
• There is potential to make money immediately. Existing businesses often come with established accounts or customers.
• An existing business offers the new owner a chance to expand to other markets or diversify its product or service line.

Cons:

• For entrepreneurs who enjoy the challenge of building something out of nothing, an established business could prove to be less fulfilling than starting a new business on both a personal and business level.
• The upfront cost of purchasing an existing business can be substantial as compared to starting a new business. Bootstrapping is not an option in most cases.
• An existing owner/manager may be the reason for the business’ success. As such, by changing hands, a business may lose some of its momentum.
• Some customers/clients may be uncomfortable with the business being sold or the existing owner/manager leaving and, therefore, take their business elsewhere.
• Hidden problems – often tied to the reason(s) why the business is being sold. Do your homework to avoid any potential pitfalls!

Based on the pros and cons, whether or not buying an existing business is worth the investment will differ from entrepreneur to entrepreneur. Like everything entrepreneurial, it pays to do your homework. If you’re considering this route, here are some ways to find businesses for sale:

• Word-of-mouth through colleagues, business associates, friends and family – people in your network.
• Classifieds – both on and offline. Look under ‘Businesses for Sale’ or ‘Business Opportunities’.
• Business brokers who are listed in the yellow pages or online. I highly recommend checking with the International Business Brokers Association, the American Business Brokers Association or another state or regionally-affiliated organization.
• Online buy and sell networks and communities. Try eBay, BusinessBroker, BizQuest or BizBuySell.

Did I mention doing your homework? When it comes to buying a business, it doesn’t pay to cheat or rush or skip over the fine lines or rush. Take your time. Make an informed decision. Don’t rush!

Although the ‘wow’ factor was missing for me – probably because I’ve been around the block – it was a good read. I particularly liked the real-word examples that Brodsky provided throughout the book, not only to make his points, but to also connect with his audience. Aimed at first-time and relatively new entrepreneurs, readers will be able to relate some of the examples presented in The Knack to their own business situations. Rather than simply reading, they will be thinking and reflecting as well – which is good. Entrepreneurs should never be on auto-pilot. They should always be learning from their mistakes, recognizing when something is too good to be true and planning, planning, planning. The Knack will give newbie entrepreneurs a reality check, while reminding seasoned veterans of all the things that can and will go wrong.

As I read the book, I made notations next to statements I felt were particularly important. In no certain order, here are just a few of the many important points that Brodsky and Burlingham bring to light in The Knack:

• A lot of people starting out in business would prefer to have a step-by-step formula or a specific set of rules they could use to achieve their goals. The problem is, there aren’t any. (Introduction, page 3)
• Because sales do not equal cash, and cash is what you need to survive. (Chapter 1, page 13)
• It’s always a mistake to let yourself get too relaxed in business – to ever start thinking you’re out of the woods and safe and secure. (Chapter 1, page 17)
• They often ask me what it takes to be a successful entrepreneur, and I tell them that the most important quality is resilience. (Chapter Two, page 22)
• You have to accept a never-ending flood of complications as a normal part of the business process, and you have to learn to enjoy that process. How? By getting caught up in the fun and excitement of finding solutions. (Chapter Two, page 39)
• If you’re the new kid in town, you can’t compete on price, because you’ll go out of business. (Chapter 3, page 44)
• Don’t try to turn that revolutionary new concept into a business. Find a great old concept instead. (Chapter 3, page 44)
• High gross margins translate into high gross profit, and gross profit is the main source of the cash you’ll need to support yourself and build the business. (Chapter 5, page 77)
• If you have the respect of your competitors, you probably deserve it. (Chapter Seven, page 115)
• Sometimes it really does pay to be nice. (Chapter Seven, page 117)
• Too many low-margin sales can drive you out of business. (Chapter Eight, page 119)
• Small customers are the backbone of a solid, stable, profitable business… (Chapter Eight, page 119)
• Oddly enough, one of the best ways to increase sales is also the most obvious, although you’d be amazed how few people actually use it. I’m talking about listening to your customers. (Chapter Eight, page 126)
• Winning is not just about closing the sale. You win when you close the sale and at the same time lay the foundation for a good relationship that allows you to keep the customer for a long, long time. (Chapter Nine, page 135)
• Make a habit of having small price increases on a regular basis so that you aren’t forced to have a big increase later on. (Chapter Ten, page 153)
• That’s the problem with success. When you fail in business, you can look back, see what you did wrong and learn the appropriate lessons, but it’s often difficult, if not impossible, to figure out why a particular business concept clicks. (Chapter Eleven, page 158)
• To be a good boss, I’ve learned, you need to maintain a certain distance from your employees. (Chapter Twelve, page 166)
• People are extremely loyal, however, to a company that they’re proud of… (Chapter Thirteen, page 182)
• And understand, in most businesses there’s a significant lag time between the hiring of a salesperson and the production of sales… (Chapter Fifteen, page 214)
• No matter how far you go in business, no matter how much you learn, you never know it all. (Chapter Sixteen, page 229)
• Preparation is a crucial competitive edge. (Chapter Sixteen, page 245)
• Whatever your company does, you need to believe in your gut that it’s the most interesting, exciting, worthwhile enterprise you could be engaged in at that moment, or you’re going to have a hard time convincing anyone else… (Chapter Seventeen, page 260)

There are countless other points made in this book; points that are not commonly discussed in the entrepreneur’s circle – out in the real world. That’s why I encourage you to buy The Knack. It’s an excellent addition for the entrepreneur’s library. Pick it up here.

So the moral of the story is you need to do everything you can to protect your assets. This includes entering into confidentiality agreements and filing for patents, copyrights, trademarks and any other intellectual and physical safeguards to prevent others from simply stealing your ideas. It is important to note that venture capitalists and other investors typically refuse to sign confidentiality agreements. They often claim that they have reputations to uphold, so they will “of course” maintain confidentiality. Don’t buy it. This is your life and your livelihood at stake. Any reputable investor will understand your concerns and will sign a damn agreement. Here are a few additional guidelines for keeping your ideas safe:

• Do your homework before approaching any potential investor or partner. Check out their deals, who they’ve worked with and so on.
• Keep thorough and accurate records of all your activities. This is especially important if you have a revolutionary idea that will place you first to market. Print off existing patents and information on similar products. Be prepared to show a gap in the market.
• Don’t post your idea or business plan online and never, ever give out too much information. A synopsis or executive summary should suffice in the early stages of any deal negotiations.
• Hire a reputable attorney and have him/her draft up the necessary documents. Don’t go it alone.
• Adopt an “assume the best, but prepare for the worst” mentality so that you will be prepared to defend your idea or concept should the need arise.

And if you’re interested in seeing Flash of Genius, it comes out in select theaters October 3, 2008. Catch the trailer here.

1. Overly optimistic and inflated financial projections (particularly sales); the kind that causes delirious laughter and occasional eye squinting.
2. Focusing solely on sales; ignoring cash flow which pumps blood through a business.
3. Buying foolish and very unnecessary items - also known as projectile spending.
4. Not taking precautions for surviving the unexpected.  Preventative care is critical.
5. Equating sales to profits.  Take your medicine, there’s a fundamental difference.
6. Believing that your business is viable before launching it.  You could be experiencing pre-denial.
7. Having no idea where things stand with your business on any given moment.  Taking your finger off the pulse.
8. Convincing yourself that you are going to be a millionaire in a few short years - again - because the projections say so.  Not good.  You’re hallucinating.
9. Thinking with emotions rather than objections - going with your heart, not your brain (and gut).
10. Not writing a business plan or writing one and sticking it on a shelf.  This is complete insanity.

If you have one or more of these symptoms, you could very well be suffering from entrepre-lusion.  My best advice, take a step back and examine how you have been functioning as an entrepreneur.  Seek outside help if you need to - from a mentor, colleague or friend.  At the very least recognize that you are on a dangerous path and make some needed adjustments.

So here’s what you do:

• Register for an account
• Post a tweet
• Follow others
• Have others follow you
• Send messages
• Update regularly (daily if you can)

Others are using Twitter. For example: Get Twitter updates from the Utah government. Follow JetBlue, get your java fill from Starbucks or score some deals from Amazon.

Everyone is tweeting. What are you waiting for? Unsure? Check out this tutorial.

This phrase also reminds me of a guerrilla marketing tactic called referrals. A classic marketing method. Give and ye’ shall receive! But let me back up a bit… Some experts believe the best way to generate referrals is to provide optimal customer service so that clients are comfortable passing your name along to others. While I think this is very important, I also believe that there are other ways to go about this. One of the most effective tactics and quickest ways to generate referrals is to pass along the names of people you know well and have confidence in - your colleagues – to others. Help them grow their businesses and land new clients! What comes around really does go around!

Now colleagues come in all shapes and forms… They can be people in your extended network, suppliers, businesses across the street or even competitors. Don’t cringe at that last one. When you have more business than you can handle it sometimes pays to refer prospects to another party. Wouldn’t you rather have someone give you the names of other businesses rather than tell you that they are too busy to take on more work, but good luck? Some help that is.

Some tips:

• Let the referred know that you have given out his/her/their name. Send them an e-mail or pick up the phone.

• Only refer people you know, have done business with or who have built a solid reputation for outstanding customer service.

• Don’t be afraid to ask for referrals from your colleagues – particularly from those who owe you one.

Quid pro quo, entrepreneur. Quid pro quo.

For those of us with little time left to breathe let alone work out, this invention can be compared to the introduction of the wheel. I’m serious. Entrepreneurs are constantly on the run, do not always eat well and have a hard time shutting down at night. For all these reasons, it is critical that we stay in shape and take care of our hearts.

Here’s the bad news… If you really want one of these state-of-the-art masterpieces, it’s going to cost you; $4,000 to be exact. But they do come in 36 laminate finishes and are equipped with ergonomically correct desktops.

Imagine… work-walking to stay fit and caught up. A dream come true!

Malcolm Forbes

About: (August 19, 1919-February, 24 1990) Malcolm Stevenson Forbes was the CEO of Forbes, Inc., a family-owned media company responsible for creating the prestigious Forbes magazine. Under his ambitious direction, the magazine became one of America’s most successful publications – exceeding 700,000 subscribers. Outside of the business world, Forbes lived a lavish and luxurious lifestyle, owning a private jet, numerous Highlander yachts, an extensive collection of Harley-Davidson motorcycles and a massive art collection. At the time of his death, Forbes was estimated to be worth $400 million. He is often remembered for his unusual and vibrant gift to Elizabeth Taylor, a one-of-a-kind Harley-Davidson that was appropriately named Purple Passion.

On Speaking:

Forbes lived life to its fullest with both passion and integrity. The many quotations attributed to this extraordinary man reveal an uncanny combination of intelligence, wit, charisma and humanitarianism.

Notable Quotes

Attributed:

~~~ Ability will never catch up with the demand for it.

~~~ There’s no way to move without making waves.

~~~ When you cease to dream you cease to live.

~~~ You can easily judge the character of a man by how he treats those who can do nothing for him.

~~~ It’s easy to curb the freedoms of others when you see no immediate impact on your own.

W. Clement Stone

About: (May 4, 1902 to September 3, 2002) William Clement Stone was an American businessman, author, advocate of the philosophy ‘PMA’, short for Positive Mental Attitude, and founder of the W. Clement and Jessie V. Stone Foundation. Stone became an entrepreneur at age 13 when he opened his first newsstand. When he was 16, he traveled to Detroit to assist his mother at her insurance agency. Stone later built the Combined Insurance Company of America and quickly had thousands of agents all over the U.S. working for him. In 1987, the company changed its name to the Aon Corporation. Stone was recognized for his impeccable appearance and famous for his thin black mustache, colorful suspenders and polka-dot bow ties. On his 100th birthday in 2002, he gave a generous donation of $100,000 to the University of Illinois at Chicago.

On Speaking:

W. Clement Stone was a pioneer of the Positive Mental Attitude movement. Naturally, he was an effective speaker and could effortlessly compose a compelling quote.

Notable Quotes

Attributed:

~~~ All I want to do is change the world.

~~~ Aim for the moon. If you miss, you may hit a star.

~~~ Sales are contingent upon the attitude of the salesman – not the attitude of the prospect.

~~~ Truth will always be truth, regardless of lack of understanding, disbelief or ignorance.

~~~ There is little difference in people, but that little difference makes a big difference. That little difference is attitude. The big difference is whether it is positive or negative.

~~~ Regardless of who you are or what you have been, you can be what you want to be.

~~~ When you discover your mission, you will feel its demand. It will fill you with enthusiasm and a burning desire to get to work on it.

~~~ Do It Now!

James Arthur Ray

About: (Born on November 22, 1957 in Honolulu, Hawaii) James Arthur Ray is a business owner and self-made millionaire. Prior to establishing his own corporation, James Ray International, Ray had an impressive career as a top sales manager at AT&T. In addition to his personal achievements, Ray spends much of his time working as a personal and spiritual growth coach and mentor teaching individuals how to create ‘wealth’ in all areas of their lives.

On Speaking:

With words that spark a positive mindset and energize broken spirits, James Arthur Ray is the quintessential speaker. He has helped countless entrepreneurs to untap their potential, accelerate their growth and reach both their business and personal goals.

Notable Quotes

Attributed:

~~~ Goals are the fuel in your furnace of success and achievement.

~~~ The light can be switched on in an instant. The true question, and also the challenge, is how long it will take you to find the switch.

~~~ We are all born into greatness and conditioned into mediocrity.

~~~ When we come close to those things which potentially break us down, we are walking the path that will break us free.

~~~ Everything happens for a reason. It is nor mere happenstance that the terms ‘vocation’ and ‘vacation’ are only differentiated by one digit.