by Selam Aster

Starbucks CEO Howard Schultz owns one of the greatest success stories in American business, and that is of how Starbucks infused coffee culture into American life. In Carmine Gallo’s latest column for Forbes, he recalls the key lessons he learned from Schultz, who managed to not only make Starbucks a household name but sustain its success in a time of deep recession. While other companies are folding, Starbucks is growing is projecting an increase of 70,000 employees over the next year.

Schultz is known for having brokered success through his renegade mentality which went against popular opinion on how to run his business. Of course, we all know Schultz made the right decisions. Here are three key lessons from the visionary and renegade, as told by Forbes columnist Carmine Gallo.

1. Know what business you’re in

Gallo recalls a two hour interview with Schultz, in which coffee wasn’t mentioned even once. When prodded, Schultz said that Starbucks makes coffee but it was in the business of human connection. Indeed, that’s the idea that the coffee company has been touting since it burst onto the scene. You can often hear Schultz describing Starbucks as the third place between work and home. ”It’s not about the product, it’s about what the product means to the lives of your customers that really matters,” said Gallo.

2. Make an emotional connection with your customers

In 2008, Schultz had taken back the helm as CEO of Starbucks during a period of a business slump. Part of his strategy to get Starbucks back on track was to re-invogarate the experience for consumers. For one, Gallo mentioned that “the way they shipped and stored coffee grounds, the stores had lost the rich coffee aroma that enticed customers as they walked through the door.  During Starbucks’ rapid growth, Schultz noted that the stores had lost its romance. Efficiency gave way to a less rich experience for customers and, in order to restore the brand, Starbucks had to make more expensive decisions, forgoing efficiency for long-term growth.

3. Tell A Brand Story

“Schultz believes that every store should tell a story about coffee and what they believe as an organization,” said Gallo. For Starbucks, the brand is communicated by the coffee, the art on the wall, the cups’ designs, so on and so forth. Consistency is key to strongly communicating what your company stands for and the quality of your brand.

As the CEO of ReCapturing the Vision International, Dr. Jacqueline Del Rosario leveraged her expertise in psychology, education and organizational leadership to launch a non-profit program targeting young people and their families and help them ” overcome the negative trends that lead to generational cycles of failure and dependency.” Her programs have received over $20 million in federal, state, and county funding. Known as “America’s Marriage Doctor, her work with relationships and family health has certainly caught the attention of policymakers and leaders. We caught up with Dr. Del Rosario to ask her about the secrets to her success.

What’s helped me most in building my career is the strategic network of partnerships and relationships that I’ve established along the way. Never underestimate the power of a relationship. As Jim Rohn so famously stated, “You are the average of the 5 people you spend the most time with,” so choose wisely. Surround yourself with people that embody the qualities that you admire and that are already where you want to be in life.

My greatest personal strength is my unmovable belief that anything is possible with a great God empowering a little me, along with my compassion for others. It’s what spawned my companies. It’s what has made me successful. It’s what makes me wake up and do what I do everyday.

The best piece of advice I ever got was from my mother who said, “No one is better than you. You can do whatever you want to do in life. PERIOD.” As the child of poor migrant workers growing up in the south, this statement was sometimes hard to believe. I was in the first class to be desegregated at my elementary school. There was so much racism, inequality and negativity. Even as a six-year-old, I remember the angry rioters, barricades and picket lines. I can still see the guards trying to keep to the peace as glass bottles sailed through the air as they were hurled at us in anger. It was a hostile time full of adversity. My parents gave me a sense of identity. They reminded me of who I was, but made sure to also show me where I could go in life. Eventually, my mother’s words rang true.

The best piece of advice I could give to other entrepreneurs would be to do it for the love, not for the money. For years, I worked full-time while being a wife and a mother to two young children while trying to get my company off the ground. Young companies usually don’t break even until about the third year, so trust me, there was no money. My husband and I dumped our savings into the companies, and times were tough. No more nannies, pedicures or hair appointments.

Inspiration comes from what moves your spirit. For some, it’s the majestic outdoors or music. For me, I get so much inspiration from the element of water – being around it, seeing it, hearing it.

I look up to people that stand up for what is right. I always say that it’s easy to do what’s wrong; doing what’s right is the hardest. It costs something when you speak out, or when you don’t cheat to get to the front of the line. Those tried-and-true leaders who exude integrity especially in the face of adversity are the people that I truly look up to.

I define success as found in the authenticity of every man and woman who become the people that they really are. Being authentic takes a deliberate decision. It requires courage to be unique. I also define success as being a sound, productive person that actively contributes to society with the aim of improving the status quo.

I wake up at 6 a.m. every morning. No alarm clocks necessary. Early starts help me to make the most of everyday.

If I could do it over again I would’ve chosen to be more comfortable with the growth that comes with adversity. We often fear change and upheavals, but I have learned that the resistance and struggle that we experience during those times are what truly shapes us and develops us into great leaders. So, if I could do it all over again, I can think of a few growing pains that I would have allowed to happen instead of fighting against the flow.

The first thing I really splurged on was my car. I used to drive around this old beat-up minivan while I was pregnant with my second child. I always chuckle to myself every time I think back to how much I disliked that van. After years of hard work and a few paychecks, I finally treated myself to the car that I’ve always wanted.

Terica Kindred’s success is definitely related to the fact that she commands a broad expertise. She is a speaker, business consultant and investment strategist who heads OutEstate Investments, which specializes in real estate and international investments. She’s currently writing her first book The Next Global Millionaire based on her experiences in working with businesses across five continents. We recently caught up with Kindred to pick her brain for our series 10 Insights From A Millionaire.

What’s helped me most in building my career is working for Corporate America

I knew I was on the right track when I could make my annual corporate salary in a month

My greatest personal strength is my integrity. If you treat people right and you do things for the service of others you will always be successful.

The best mistake I made was not getting my MBA.

The best piece of advice I got was focus on one thing and do it well.

The best piece of advice I could give to other entrepreneurs would be: you don’t need a fancy business plan to start a business just get it started

Inspiration comes from God. I know that the work I do will change and impact nations of people. As long as I am doing his will and making a difference in the lives of others my day was well lived.

I wake up at 7am

If I could do it over again I wouldn’t change a thing the experience have been well worth it and has shaped who I am today. Changing anything would mean changing me.

The first thing I really splurged on was nothing. I haven’t really haven’t splurged. The more money I make the more I invest.

By Alexis Garrett Stodghill

Most entrepreneurs start with an idea, or a love a particular industry. Having relied on their bosses to focus on the details of keeping their place of employment in order, many are at a loss when setting up their own companies. Bryan Janczko understands this scenario completely. As a small business owner who has started more than one enterprise and sold one for millions, his latest firm Wicked Start aims to transfer his wisdom to new entrepreneurs. Based on his own personal experience and that gained by answering many questions as a speaker on the small business lecture circuit, Janczko has formulated Wicked Start — a structured system to make starting a firm more manageable. The New York Times details how Wicked Start works:

The heart of Wicked Start is a series of customizable templates for each of 10 steps in starting up a business, running from producing a business plan to raising money to building the company’s infrastructure to marketing, and more. The site automatically tailors the templates to any of several industries, such as brick-and-mortar retail, e-commerce, consulting or food services, covering about 70 percent of start-ups, according to Mr. Janeczko, and users can further customize as needed. Each template lays out action items, including pinning down your business idea and creating PowerPoint presentations to hit up friends and relatives for financing. It goes on to help with taking on partners, setting up a marketing plan and signing a lease. The items prompt you to set deadlines and to create e-mail reminders to nudge you to stay on track. In a sense, it’s a project management tool that’s been thoroughly adapted to the project of getting a company off the ground.

Janczko stresses that Wicked Start does not have to be followed exactly to be helpful. While the program provides timelines and reminders in addition to forms, what sets it apart is its component of built-in inspiration. Wicked Start’s community features, how-to videos, and educational articles guide participants every step of the way with a human element that is missing from similar online tools.

Speaking of similar tools, The Times also recommends BizTree as an essential element for any start-up’s success. While a bit pricey at almost $250, BizTree grants access to over 1,500 downloadable documents that assist sole proprietors with forms for things like hiring employees and setting employee policies. Definitely a time and money saver for a small business.

The plethora of small business tools available online makes it easier than ever to get an idea off the ground and manage the process efficiently. Although capital, talent and drive are key, don’t underestimate the power of technology to fuel your new venture’s success.

Dear Felicia:

I’ve been considering starting my own web based business for two years now. I’ve searched high and low for information, products and marketing and because there’s so much junk out there it is hard for me to distinguish the good information from the bad. I would like to know if you have any information that would be helpful in making the right decision on what direction to go in, in terms of products to promote and also about any resources for inexpensive but effective marketing tools? Thank you so much for taking the time to read my email.

Ms. Osuigwe

via e-mail

Dear Ms. Osuigwe,

About 70 percent of Americans want to start a business and only about 35 percent have so you are not alone in your desire to launch a company or uncertainty about where to seek ideas and get started!

Deciding what to pursue depends on a few variables such as how much start-up capital you have, whether you want to sell a product or service and whether you want to build a lifestyle business (one that you run primarily on your own) or a scalable business that generates in excess of a million dollars annually and requires a team to run it.

My three tips for you to get off to a fast and successful start are:

Research emerging trends or think about products and services that people already buy.  Launch a business based on emerging trends or determine how you can provide products and services in a better, more convenient way, with a higher level of service — or to a specific niche or different geographic area.  There are Internet based companies that sell items as simple as basic household items.  The founders of Quidsi started out selling diapers via their original website, 1800diapers.com.  They were buying the diapers from big warehouse retailers like BJ’s Wholesale Club and Costco and sending them to their customers as orders came in via their site and toll free number.  As demand picked up they started selling other items, which is how they became profitable (and by running a very efficient business)!  The company eventually started selling through diapers.com, grew to $300 million in revenue, launched soap.com and has since been acquired by Amazon.  Find something that is an emerging trend or focus on something simple but offer it in a better, simpler or otherwise differentiated way.

Visit the local Women’s Business Development Center where you live. The U.S. Small Business Administration Office of Women’s Business Ownership has centers throughout the country that offer help to entrepreneurs.  These offices are supported by public tax dollars and provide free or low-cost services to people getting started as entrepreneurs.  Take advantage of everything they have to offer.  They help thousands of entrepreneurs every year; they can help you too.

Reduce your risk. Keep risk low for your new venture by spending as little as possible and launching as quickly as you can.  The ultimate test of a business idea is to launch it and get feedback from the market and tweak from there.  Basically, as people purchase — or don’t purchase — they will be communicating to you what they want to buy.  Sell them what they want and drop everything else.

I wish you great success.  Write to me at ask@feliciajoy.biz and let me know how it’s going!

Felicia Joy is a nationally recognized entrepreneur who created $50 million in value for the various organizations and companies she served in corporate America before launching her business enterprise.  She is often called on to discuss the ins and outs of entrepreneurial success and has appeared on CNN, FOX and in other national press.  Felicia operates Ms. CEO Inc., a company that offers inspirational merchandise for women entrepreneurs — as well as Joy Group International, LLC, a business development and consulting firm. Send her your questions at ask@feliciajoy.biz or www.twitter.com/feliciajoy.

Note: All advice offered in this column is for general information only.  Felicia Joy and The Atlanta Post are indemnified against any and all related claims.  Always seek the advice of licensed professionals before making business decisions.

By J. Smith

The Obama administration held the Urban Entrepreneurship Summit at Rutgers University in Newark, New Jersey yesterday in an effort to address the dismal unemployment rate among black Americans. As anxiety swells over the 9.1 percent jobless rate overall, the black community is being swallowed with 16 percent unemployment. After criticism and cries for help from black advocacy groups, the White House has taken heed. The conference aimed to assist minority and small business owners by bringing together government officials, private and non-profit funders and leading entrepreneurs to voice questions and share information on how to spur growth in urban areas, The Huffington Post reports.

White House officials attended the event, including Don Graves, executive director of the President’s Council on Jobs & Competitiveness to narrow in on concerns facing many small and minority-owned businesses. Access to credit, regulatory burdens, transportation options and location were dominant subjects in the summit that was met with an equal mix of openness and skepticism about the prospects for enhanced business and employment solutions in the black community.

“All too often they have these [summits], but no blacks actually get access to capital,” said Cassandra Dock, a member of Concerned Citizens to Revitalize Communities. “They’re not even going to help us find loans to improve our credit.”

The one-day conference was a nice effort, but far from what the black community needs to recover it’s economy. As is too often the case, there is more talking and conferencing than mobilizing and taking action, but at least it’s a start.

Dear Felicia,

I am a professional makeup artist and I just started my own online cosmetics company. I would like to know if I need to register with the federal government, in addition to registering with the Secretary of State for my trademarks.  I am concerned about my logo, slogan, catch phrase and my company name. Also, can you recommend an inexpensive lawyer and accountant in my local area?

Eric D.

Los Angeles, CA

via e-mail

Dear Eric,

Congratulations on transforming your business into a product and service company with the launch of your cosmetics line.  That’s a very important step because one of the secrets to long term business success is residual or royalty income.  That’s income you earn by doing work one time (in your case, developing the cosmetics line) and getting paid on it infinitely. High five!

As far as registering your logo, slogan and company name as trademarks–yes, you should definitely protect your unique brand property after you have used it in commerce for at least six months and know for sure that you want to stick with what you have.  Entrepreneurs often tweak and change their logo, slogan and other brand elements in the early days of business because you’re growing into your new creation and you may also get constructive feedback from others that inspires you to adjust.  Don’t worry too much about this because you can always get new trademarks later if you need to. But, at $275 or more, to register a federal trademark, changing your mind can add up.  It’s much better to carefully and strategically think through your brand upfront to be sure it conveys what you intend and you really like what you have.

You can register your trademark with your Secretary of State, as you mentioned. But in California, it costs from $70 to $100 to register a mark.  Since registering with the U.S. Patent and Trademark Office starts at $275 — and gives you national protection — you should pursue a federal trademark if you can.  Also, note that each element you mentioned — the logo, slogan and company name — will all have to be separate trademarks unless the “specimen” (a visual representation of what you want to trademark) includes all of those together in one design. Also,  if you submit one design, then only that complete mark is protected, not the individual elements.

I’m glad you asked about an attorney and accountant.  That means you are taking your business seriously.  I don’t have specific people to recommend, but be sure that the attorney and accountant you eventually work with have professional credentials.  You can search the State Bar of California database to make sure your attorney is in good standing and check the California Board of Accountancy database regarding the status of any accountant with whom you are planning to work with.  Since you need someone who will work with you on a modest budget, ask a few local business owners about who their attorneys and accountants are and do your homework on potential candidates before getting started.

Note: All advice offered in this column is for general information only.  Felicia Joy and The Atlanta Post are indemnified against any and all related claims.  Always seek the advice of licensed professionals before making business decisions.

Felicia Joy is a nationally recognized entrepreneur who created $50 million in value for the various organizations and companies she served in corporate America before launching her business enterprise.  She is often called on to discuss the ins and outs of entrepreneurial success and has appeared on CNN, FOX and in other national press.  Felicia operates Ms. CEO Inc., a company that helps women entrepreneurs achieve more success, faster — as well as Joy Group International, LLC, a business development and consulting firm. Send her your questions at ask@feliciajoy.biz or www.twitter.com/feliciajoy.

Dear Felicia,

I have a question with regard to online businesses. I run an online music video website that will soon be adding e-commerce as a revenue stream. Is it necessary to register my business in a particular state although the transactions will primarily take place online?

Thank you,

Charlie

via e-mail

Dear Charlie,

There are three main reasons — and depending on your long term plans, a fourth reason — to register a business with the state: liability, credibility, taxes and ownership.  Liability is a concern if you operate a business with a physical space where an accident can happen, or if you operate a business in an industry that is highly litigious. An example of such an industry is financial services where people might allege that a business ripped them off and take civil action to recoup their losses. But it doesn’t sound like liability is a big risk for you.

If you are the sole owner of your business, and are planning to give ownership to others as you expand, then you may consider registering with the state so that you codify your business and operating agreements.

Now we’re down to the two reasons that probably matter most for you: taxes and credibility.  A well-managed, unregistered business is no less credible than a registered business, but a registered business creates a perception of higher authority and trustworthiness.  Since you operate an online business, you should take advantage of that perception. People have heard of Napster, iTunes and Amazon.com, but they may not have heard of you.  Most people are accustomed to shopping online at this point, but scores of people are still leery (including my mom). So, if they wanted to check to make sure your business is legit before making a purchase from your website, then an easy way for you to create instant credibility and set them at ease is to be registered with the state.

Also, there is the issue of paying and collecting taxes.  You can take advantage of most business deductions whether you are registered or not. But some advanced deductions may require that you are a registered entity. Plus, if you were to ever be audited by the IRS, they would have a harder time declaring your deductions invalid because your business seems like a hobby if it is registered with the state.  (This is more of a concern for part-time entrepreneurs who could more easily be pegged as hobbyist. I am mentioning this because I’m not sure of your status.)

As far as collecting sales taxes, generally, if you have a physical presence in a state, like a store or business office open to the public, then you must collect and remit sales taxes from online purchasers in that state.  But this is a murky subject because there is no consistent rule from state to state.  Check with your state revenue department and tax attorney for the final word.

Ultimately, you don’t have to register, but it’s a good idea to do so. You can simply register in the state where you reside and from which you operate your business.

Grace & Peace,

Felicia Joy

Felicia Joy is a nationally recognized entrepreneur who created $50 million in value for the various organizations and companies she served in corporate America before launching her business enterprise.  She is often called on to discuss the ins and outs of entrepreneurial success and has appeared on CNN, FOX and in other national press.  Felicia operates Ms. CEO Inc., a company that helps women entrepreneurs achieve more success, faster — as well as Joy Group International, LLC, a business development and consulting firm. Send her your questions at ask@feliciajoy.biz or www.twitter.com/feliciajoy.

Dear Felicia,

I’m starting makeup artistry school to become a professional makeup artist. I have my logo designed, I’ve selected Intuit as my webpage hosting site, I have my design ready for my business cards etc. I have a few questions regarding my new journey: do I need to register my business with my county, state? Do I need to federally trade mark my business name/logo? How do I handle taxes, etc.?

Lexie B.

via e-mail

Dear Lexie,

Congratulations on your creative new endeavor. How exciting to be studying to become a makeup artist.  You have made a lot of progress already.  I like it when people take action!

In regards to creating a formal entity for your business by registering with the Secretary of State, there are three main things to consider: liability, credibility and taxes. If there is high risk for you being sued or taking on a lot of financial responsibility to start your business, then creating an entity is a must because it separates your personal assets from the business. If a formal business entity faces a lawsuit or financial struggles, the entity is at risk instead of the personal assets of the founder.  Mind you, I am vastly oversimplifying how this works.  There are many nuances and complexities involved in legal and financial liability, but I am giving you a general idea of why it matters.

Next, consider credibility.  If you’re going to be serious about your business then separating business funds from personal funds is a best practice; so you’ll need a business bank account. Some banks will allow you to open a business account as a sole proprietor (which is your status before you are registered with the state) as long as you have a Federal Employee Identification Number (commonly known as an EIN). But many banks will require your business to be registered with the state before you can open an account.  In addition, if you pursue contract or corporate opportunities, the potential client may take your proposals and business more seriously if it’s a formally registered entity.

As far as managing your taxes, the easiest entity to establish is a Limited Liability Company.  (You can take business tax deductions as a sole proprietor too, but a formal entity demonstrates to the IRS that you are seriously engaged in a business, not a hobby. This further substantiates a business in the case of an audit.)  Nearly every dollar you spend to launch, grow and operate your business is deductible so keep a monthly list of what you spend.  Scan your receipts using Neat Receipts and keep them saved digitally or keep physical photocopies of them on file.  At the end of each month, or every quarter, give your accountant your list of expenditures.  When you start making a profit you’ll have to make quarterly estimated tax payments, so you need an accountant who is experienced in dealing with state and federal business tax filings so you can remain compliant at all times.

Trademark your business name and logo after you’ve built your brand for a few months.  To get a trademark finalized you have to demonstrate that you have used the name and logo in commerce.  This extra time will give you a chance to fine tune your brand.

To sum it all up: yes, register your business with the state, find a savvy accountant right away and trademark your business name and logo after you’ve finished school, started your company and gotten established.

Grace & Peace,

Felicia Joy

Felicia Joy is a nationally recognized entrepreneur who created $50 million in value for the various organizations and companies she served in corporate America before launching her business enterprise.  She is often called on to discuss the ins and outs of entrepreneurial success and has appeared on CNN, FOX and in other national press.  Felicia operates Ms. CEO Inc., a company that helps women entrepreneurs achieve more success, faster — as well as Joy Group International, LLC, a business development and consulting firm. Send her your questions at ask@feliciajoy.biz or www.twitter.com/feliciajoy.

Dear Felicia,

I am interested in starting a day care center in Atlanta, Georgia.  I am in school now for day care management, and I have over seven years of experience in the field.  Where do I go to find grants to help me?

Ms. Q. Rucker-Woods

via email

Dear Ms. Rucker-Woods,

You can find legitimate federal government grant opportunities online at http://www.grants.gov, which is the U.S. government’s portal for announcing competitive grant projects.  Since you are planning to open a daycare, the Administration for Children & Families under the U.S. Department of Health and Human Services is the agency most likely to announce grant opportunities that you might be eligible for once your childcare center is open. You may want to join their e-mail list to keep up with news and announcements from their agency.  For example, in 2010 they offered a competitive grant opportunity to boost the success of Head Start, an early childhood education program¹.

Now that I have addressed your core question, I want to take this a step further and point out a few things because there is a lot of misinformation about grants.

People typically think of grants as free money to pursue their interests or business ideas.  It is free money, but not really.  Government grants will typically go to non-profits.  They will also often require that you have matching dollars and an evidence-based plan for sustaining the program that those federal grant dollars help you create.  To meet these criteria, you have to already have funding and documented results at your up-and-running organization.

Also, grants aren’t available for general business use.  They have to be used for very specific projects and outcomes that the government wants to achieve.  To compete for grant dollars, organizations have to submit a detailed plan that shows how their program, staff and skill sets can contribute to the overall objective.  If an organization is awarded a grant, it has to submit detailed reports and keep up with a lot of compliance paperwork too. Because the government realizes that the compliance requirements could be burdensome to a small, individual organization, it often provides the grant monies to state and local governments and leaves it to them to disburse the grants further, hold grantees accountable and provide technical assistance. In the end, this means smaller grants for the organizations that are fortunate and skilled enough to get them.

If you are seeking grants to start your business, you are better off seeking an SBA-backed small business loan.  There are several things in your favor. You have work experience in the child care industry, and you are pursuing an educational program that will further equip you with the skills to succeed. In addition, successful childcare businesses have an average profit margin of 39.1 percent—not the highest in the profit margin pecking order, but not the lowest.

Since you are still in school and know that daycare ownership is your goal, prepare yourself further with these steps:

1.     Pull your credit record and make sure there are no errors.

2.     Establish a relationship with a small business loan officer at a local bank that makes SBA-backed loans.² Find out from this person what a dream file would look like and prepare yourself to present that dream file.

3.     Consider alternative lending sources like Prosper.com.

4.     Write a business plan; the process won’t guarantee your success but it will clarify your ideas.

5.     Identify two or three successful daycare owners in other cities (so they won’t see you as competition) and interview them. Ask them about their ups and downs in that business and their advice for you. Do this after you’ve done the research for your business plan. Be prepared with solid questions, offer them lunch, wrap up in the time that you said you would and send them a handwritten note within a day of meeting with them.

Good luck!

Grace & Peace,

Felicia Joy

¹ U.S. Department of Health and Human Services – Administration for Children & Families

² Georgia SBA lenders

Felicia Joy is a nationally recognized entrepreneur who created $50 million in value for the various organizations and companies she served in corporate America before launching her business enterprise.  She is often called on to discuss the ins and outs of entrepreneurial success and has appeared on CNN, FOX and in other national press.  Felicia operates Ms. CEO Inc., a company that helps women entrepreneurs achieve more success, faster — as well as Joy Group International, LLC, a business development and consulting firm. Send her your questions at ask@feliciajoy.biz or www.twitter.com/feliciajoy.