Making It Legal:

I don’t know where they come up with all their “100″ sites, but Bootstrapper has released quite a few.  The latest in the lineup is 100 .edu sites for entrepreneurs . . . which have a lot of great information, but lack one very important thing:  how to help you find the time to read them all! 

And, P.S.:  There’s a handy law site that’s not on their list — Cornell University’s  Legal Information Institute

They say that the key to happy clients is to underpromise and overdeliver.  But I just returned from an absolutely AMAZING 5-day workshop in L.A. given by Peak Potentials, called Train the Trainer 1 (How to Earn $20,000 a Weekend Teaching What You Love), which turns that adage on its head.  Peak’s approach is to “promise big and delier BIGGER” (and I have to say they did just that). 

Customer service is an area where many entrepreneurs slip a bit.  Either they’re vague on what they will do and by when they will do it . . . or they don’t adequately communicate the value of what they provide to their clients.  Or, they’re so overwhelmed by all the other responsibilities of running a small business that they lack a system for follow-through and follow-up. 

So what’s the key to delivering on the expectaions?  Here are a few tips:

1. Have a written agreement.  Contracts make sure that you and your client are, literally, “on the same page.”  This applies to purchase orders, too, where you can include your terms on the “backside.”
2. Share your value proposition.  For example, when I draft a business partnership agreement, I’m not just handing my clients a document.  I’m providing them with a method for determining financial contributions to the company, allocating profits and losses fairly, deciding who can buy (or sell) and interest in the company — and for how much, and protecting company secrets and proprietary information.  That underscores just how important the products/services are to your client.
3. Develop customer service systems and procedures . . . and put them in writing.  There are all kind of things you can do to ensure you meet and exceed client expectations.   What I learned from the Train the Trainer workshop is that, yes, they taught me the information I was seeking, but they did so in a way that was powerfully interactive, and included certain personal development issues as well.  This made it a transformative experience, not merely an educational one.  You can institute regular follow-up calls to check in at 30, 60, and 90 day intervals (or whatever makes sebse for your busienss).  You can offer a free (and unexpected) gift, as I did when I ordered a Holosync meditation CD from Centerpointe Research Institute. 

What have you done that knocked your customers’ socks off?

It’s never easy being a small business.  It’s hard enough to qualify for venture capital funding . . . and yet receiving it could disqualify you from other small business incentives through the Small Business Administration and other government programs.  It’s a “damned-if-you-do-damned-if-you-don’t” conundrum.

According to a recent report in the New York Times, Jason Altmire, a member of the U.S. House of Representatives (D-PA) proposed the Small Business Expansion Act of 2007  to enable small businesses to qualify for federal research grants without being penalized for accepting venture capital money.  VC funds are crucial for companies in the biotechnology arena, for example, that typically take years to generate revenues, which means they often have difficulty getting bank loans.   Venture capital can mean the difference between survival and failure.  

The White House and the Small Business Administration are critical of the bill.  They cite the concern that the legislation will give VC firms “them the potential to masquerade as small firms and tap into billions of dollars in federal research grants and contracts” — which are supposed to be set aside for “true” small businesses.

The legislation passed the House of Representatives at the end of September.  It has been sent to the Senate, where it was referred to the Committee on Small Business and Entrepreneurship — which (go figure) has both a Democrat site and a Republican site (don’t get me started on why the American taxpayer needs to pay for two sites to the same committee).

One of the challenges in owning a closely-held business is that it’s hard to get a day off. That’s come to mind for me as I’m en route to California for the rest of the week to attend Peak Potentials’ Train the Trainer workshop. I’ve been salivating over this program since I registered for it 5 months ago, and now the time has come! Friends of mine who have taken it call it “profound,” “mind-blowing,” and “a complete mind-shift.” They also caution me that “you’ll be going from 9am to midnight” and that “there’s little room for bathroom breaks, let alone time to check for voicemail.”

It’s that latter part that concerns me (although the prospect of long lines for the ladies’ room is not an attractive prospect, either). How can I keep my office functioning — and keep meeting my client obligations — when I’m tied up with other things? Here’s a couple of tips for making sure you stay on top of your client deadlines:

1. Let people know in advance. Yes, you’ll work like a dog before you leave (I just had to reschedule a lunch meeting and a session with my personal trainer because what I needed to get off my plate was going to take longer than the time I had alloted) — and you’ll work like one when you come back. But the sooner people are aware that you won’t be available, you’ll find — almost miraculously! — that their schedules have changed, too. That oh-so-urgent contract that they wanted you to review while you were in the airplane is now being held up another 10 days by the other’s attorney.
2. Cultivate CYA colleagues. Who can handle emergencies for you while you’re away? I’m fortunate to have a business partner who fills that role for me. Certain employees can take that on, if they’re properly trained. Or, if you’re solo, make it a point to develop a close relationship with a similarly-situated colleague so that you can each step in to hold down the fort for the other in the other’s absence. You know the kind: the “can I pick your brain for a minute?” kind of colleagues who will generously give you 30 minutes of their time when you would have been eternally grateful for merely 10.
3. Get wired. If you don’t have anyone in category #2 to fill in for you, it may be a little more difficult for you to detach. Maybe you’ll need to bring the laptop to the beach; maybe you can get away with just the BlackBerry. Either way, make sure your vacation messages are set and that your voice mail gives adequate information about how to reach you — or how often you’ll be checking in.
4. Set boundaries. Whether you’re on vacation or in a workshop (as I’ll be) or just need quiet time with an ailing parent, there’s no reason that technology needs to be intrusive. Set particular times of day that you’ll check and return messages and keep to it. That way, you won’t feel the constant pull of checking in.

Billions of dollars in small federal contracts could be opened to small businesses if the Small Business Administration (SBA) prevails in a dispute with the General Services Administration (GSA).  According to a report on Associated Content, the SBA has ruled that, under the Small Business Act, the GSA needs to set aside contracts valued between $3,000 and $100,000 for small businesses.  A copy of the decision can be found at http://www.fitnet.net/FPA/Press/SBA%20Opinion.pdf.  Not surprisingly, the GSA disagrees.    According to a report from the Washington Bureau of Bizjournal.com, the GSA contends that if all orders under $100,000 have to be set aside for small businesses, medium-sized businesses and large businesses effectively would be eliminated from the program. “Not only would this reduce competition and increase costs to agencies, it would also negatively impact those small businesses who are part of large business subcontracting plans or who participate in teaming arrangements with large and medium-size businesses,” GSA wrote in response to SBA’s opinion. The founder of the Fairness in Procurement Alliance, small business advocate Raul Espinoza, disagrees.  He thinks all exemptions from small set-aside requirements should be eliminated from federal contracting.  “The exemptions are directly responsible for having excluded, illegally, $640 billion in federal contracts over the last decade from small and minority businesses,” he said. 

Far be it from me to turn away business (actually, I’m not), but there really are times when pre-paid legal services could be a better option for your business than hiring a firm and paying the higher rates.   

A pre-paid legal plan is like legal insurance.  You’re provided with some services at no cost (except for your monthly membership), some services at a reduced rate.  If most of your company’s legal needs involve quick consultations, pre-paid legal could be a convenient solution.  One of the drawbacks, as reported by Tina Dettman-Bielefeldt, Chairman of the Green Bay (Wisconsin) chapter of the Service Corps of Retired Executives (SCORE) is that you can’t necessarily request a particular attorney.  As a result, you don’t have the same opportunity to work with a trusted advisor who knows about your business and its goals, who can work with you proactively.   

Also, there are many companies offering pre-paid legal plans, and some may be less-than-adequate.  Ask for references, and research the companies before buying the coverage. 

From the Department of Nightmares comes this story of a David-and Goliath lawsuit.  Apparently, online perfume retailer Perfume Bay has been embroiled in litigation with online auction site eBay (also spelled ebaY in its logo) for about the past three years.  According to the Orange County Register, which profiled the case last month, Perfume Bay grossed $17 million last year; eBay grossed $6 billion. 

Perfume Bay has spent hundreds of thousands of dollars defending this lawsuit, which is on appeal from the Central District of California in the U.S. Court of Appeals for the Ninth Circuit.  While Perfume

Imagine spending several years building your brand, investing thousands of dollars, and having cultivated thousands of satisfied customers, to find that an online behemoth with enormously deep pockets will stand in your way of protecting your trademarks.  That’s what’s been happening to Jacquelyn Tran, Perfume Bay’s owner.  You can read about her saga on her blog, www.makesnoscents.com.  The briefs on appeal are there, too, which make for fascinating reading.  It’s like the studies done in Psych 101 classes where a clown quickly runs through a room and the students are asked to describe the clown:  there’s rarely agreement on height, weight, clothing, or which door the clown entered.    

I’m not about to place odds on where the appeals court will come out; a decision is expected/hoped at the end of this month.  I did have a chance to speak to Jacquelyn herself to see what she has learned from the experience, and what she might have done differently.  Jacquelyn is the sole owner of Perfume Bay and an Inc. Magazine “30 Under 30� award winner.  She’s been fortunate in that the company has generated sufficient revenues to pay the legal fees, which has given her the ability to “stay in the game,� as it were (other entrepreneurs in her situation might have to use their personal savings, or give up the lawsuit altogether).  She is passionate about her company and its branding.  Upon reflection, though, she acknowledged that she didn’t seek legal counsel when she began her branding and trademark process.  “I think if I had to do it again, I would definitely get legal advice . . . someone who could give me information at the outset,� she remarked.  “It’s hard to say what I would have done differently – maybe trademarked sooner,� she added.   Even with the appeal looming – which has put Perfume Bay’s marketing into a bit of a holding pattern – morale at Perfume Bay is positive.  “We’re optimistic,� Tran said, “and going full force with our objectives.�

OK, I’ll confess that my feathers are a little ruffled today (maybe a case of a bad night’s sleep), but seeing Guy Kawaskai’s Top Ten (Sixteen) Lies of Lawyers just stuck in my craw.  I can handle lawyer jokes just fine, but after seeing so many entrepreneurs shoot themselves in the foot because they were too scared/cheap/undercapitalized to seek the expert legal advice they really needed, after a while, enough is enough.  Lawyer-bashing is certainly not a recent phenomenon, but its prevalence is like watching The Flavor of Love:  first, it’s dopey entertainment; then, it becomes just plain stupid; finally, I just want to smash the television for projecting this nonsense.  (That’s when I yell at my husband to change the channel). 

I’m not saying that lawyers are perfect or immune from these things (and I thank fellow Entrepreneur blogger Tim Berry for putting a soft touch to the issue), but remember this:  Lawyers get lied to, too.  So do other service providers.    Here’s the top 10 lies I’ve been told over the years.  For entrepreneurs, all I can ask is:  don’t be these people.  Service providers will probably nod their heads in recognition: 1.                  “I’m eager to get started right away.�  So am I.  Is your initial deposit for fees as forthcoming as your desire to get started? 

2.                  “I just need something simple.�  I know you’d like something simple, but when you’re entering into a strategic alliance with an out-of-state company to market and develop intellectual property to children, there are a couple of issues that need to be handled delicately.  A one-page agreement won’t protect you.3.                  “I need this done yesterday.�  No, you don’t.  Unless someone is about to hang on Death Row, or you’re going to run up against an inviolable statutory deadline, it’s not an emergency.  Not that I’ll sit on it, but working until 3am because you woke up yesterday and decided you needed to sell your business today is not my problem.  Your failure to plan is not my emergency. 

4.                  “This wasn’t my fault.�  There are at least three versions of a dispute:  yours, theirs, and The Truth, which lies somewhere in between.  It’s exceedingly rare that someone has been an angel from heaven and the other side Hades Incarnate.  If I don’t know your downside, it’s hard to advise you properly.

5.                  “The last lawyer was an idiot, but I hear you’re terrific.�  I’m not a gambling woman, but I’d bet odds in Vegas that you said that to the last lawyer, too.  If you’ve hired and fired more than one other person before me for the same project, you’re probably no better than my philandering college boyfriend who left a trail of broken hearts.  And unpaid debts. 

6.                  “This company will be huge and have a lot of work to throw your way.�  This is usually raised in the context of trying to get me to reduce my rates.  There’s a reason it’s called a “volume discount�:  you provide me with the volume first and then I’ll give you the discount.  When I give the discount first, I’m usually left hanging, waiting for the volume.   

7.                  “The bookkeeper didn’t come in this week/month/quarter/had a death in the family.�  And that paralyzes your hand from writing a check?

8.                  “This wasn’t what I asked for.�  Usually said after a client has changed her mind 37 times since the beginning of the project. 

9.                  “This cost me a lot more than you promised.�  Did I really promise?  Did I guarantee a fee?  No, I estimated, based upon the amount of time I thought would be involved.  Time expands to fill the number of changes you request to a project.  See mind changing, #8.

10.              “I sent the check last week.�  Need I say more?