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Can an entrepreneur ruin her own company? Yes. Many have—and many probably will in the future. Look at Martha Stewart, says USA Today. Her company, Martha Stewart Living Omnimedia, has lost money four years in a row under her leadership, reports the newspaper. Because business owners can sometimes lose focus, it is best to know when to step away in order for the company to survive.

“A CEO can tell it is time to leave when they have reached their limit in terms of ability and skills to lead the company. If the company is not growing as in increasing revenue over time than it is time to either bring in new leadership or leave the company all together. There is nothing wrong with bringing in someone to lead the company,” says Anastasia Valentine, CEO of business consultancy firm Sandbox an Idea to Launch Company.

According to Deborah A. Osgood, president of entrepreneurial education and coaching firm Knowledge Institute, companies go through various stages—one of which might include a time when the founders need to step  away and turn the reigns over to someone else.

There are three phases that every business goes through: Panic, which represents the start-up phase where everything is chaotic, decisions are made on the fly and the CEO thrives and is good at being the center of attention. Phase two is the “people” phase where business growth demands begin to exceed the CEOs capacity and it’s now time to add staff. And phase three is the “process” phase where growth continues and  a whole new set of challenges require more formal business systems and  an expanded management hierarchy. Not all CEOs are good at nor welcome moving from one phase to the other. A CEO needs to leave as soon as she  realizes either through self-awareness or poor business performance, she is no longer working at her peak performance.

It’s time to quit your company if you’ve hit the wall and are not sure and don’t have the skills to grow the company beyond what it has already achieved, says Valentine. Or when you have lost the original passion you had for the business when you started it. And, if the company is not profitable or no longer profitable.

It is important for CEOs to have an exist plan in place. “Most business owners do not plan for their exit so only 5% actually achieve the exit they worked so hard for,” notes Kerri Salls of This Way Out Group LLC,  an exit strategy firm. Start an exit an exit plan as soon as possible especially if you are planning to sell your company. “The longer you wait, as sales slide, the lower value,” she says.

Just because you have started a company you might not be the best leader for the firm.“Many CEOs are ‘accidental’ in that they started the company so they believe they should lead it,” explains Valentine. “Not all founders have the necessary skills to grow a company beyond a certain point. When the company loses focus, stops generating year-over-year growth or where there is no or little motivation to continue… it’s time for the CEO to embark on something new.”

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Small business owners, are you trying to get your last-minute tax deductions lined up?  There may be a few items you had not considered — or even know were deductibles. MadameNoire.com has a few surprising suggestions from a tax experts.

via Bolt Insurance

No one ever mistook opening a small business for a walk in the park. There’s financial sacrifice, little (if any) free time, hours away from family and friends, and the struggle to take your business from zero to success. But even with all that’s involved, small business owners report being pretty pleased with themselves.

Bolt Insurance has created an infographic that literally illustrates the joy that small business owners have for being on their own. Seventy percent, in fact, say they’re very happy. And 90 percent say they prefer being entrepreneurs to working for someone else.

If you’re thinking about becoming a small business owner, this illustration also gives some info about which of the many responsibilities entrepreneurs have that stresses out them out the most.

If you’re a small business owner or have aspirations of being one, let us know what it is you love about your job.

The iPad Mini (left) and the previous version of the iPad. Image: AP Photo/Marcio Jose Sanchez

The iPad Mini is here (along with a lot of other new Apple stuff) and now one must consider whether or not to part with $329 (at least) to have one of their very own. Black Enterprise outlines five reasons why small business owners should make the investment.

One of the more interesting reasons brings together the price tag and the functionality. There are other tablets — the Google Nexus 7 and Amazon Kindle Fire — that are less expensive, but the apps on the Apple tablet make it worth the extra money. “Those apps enable entrepreneurs to manage and collaborate on tasks and projects, send invoices and receive payments, and communicate effectively with colleagues, team members, and clients—without squinting at a smartphone screen,” the article says.

And then, of course, as with all our mobile devices, there’s the endless convenience of having something that can go everywhere with you and keep you working even when you’re on the road. For more about the perks of the iPad Mini — as if you’re not already lusting after it — visit Black Enterprise.

Image: iStockphoto

It’s October 1, which means it’s the start of National Women’s Small Business Month. Huzzah! And while we’ve reported that resources can be hard to come by (microloan anyone? maybe a crowdfunding campaign?) there are signs that things might be turning around just a bit, for minority women business owners specifically and for black entrepreneurs, in general.

Wayne Sutton, founder and CEO of PitchTo, a company that creates tools for investors and entrepreneurs, argues on TechCrunch that now’s the time for minorities to not just be entrepreneurs, but also investors. Citing research from The Center for Venture Research, Sutton shows that there is a small but robust community of women and minority entrepreneurs who are seeking and getting angel investment.

Add to that an increased interest in startups among African-American entertainers, athletes and other assorted celebrities. “The fact that celebrities and athletes are getting more active in the tech startup space could also continue the increase in minority entrepreneurship in various cultures, especially for African-Americans who often look to the sports and entertainment industries for careers,” Sutton writes. “Now there are conferences such as Venture Draft, which educates and connects athletes to venture capitalists in the hopes of providing the necessary information that could spark investment opportunities to entrepreneurs in markets outside of Silicon Valley.”

He goes on to name a number of other organizations focused on black and Hispanic startups like the Minority Angel Investor Network and Golden Seeds.

Still, Sutton makes the appeal for more angel investors in minority businesses. In some ways, there’s simply the need for more investors to see the value in minority- and women-owned businesses; to be confident in the fact that these are capable entrepreneurs and you will make a return on your investment. In other ways, minorities and women are still growing in areas of entrepreneurship. Every day, women and minorities are learning more about the business world and making strides to capitalize on the profits and satisfaction it has to offer. This new breed of high-level businessperson will attract investors.

By way of helping, and in honor of the aforementioned National Women’s Small Business Month, the Small Business Administration (SBA) is hosting four webchats this month, where tips and advice will be available. We’ll also suggest that you keep an eye on the National Women’s Business Council, which is hosting a big event this week and, throughout the year, has the ear of government members and the SBA. If there’s something happening for women business owners that you can take advantage of, they’ll probably know about it.

MEET Denise Conley:  Headquartered in the San Francisco area, Denise Conley is a business owner who not only graduated from Harvard University cum laude, but who is also leaving big footprints in the male dominated real estate industry. Conley is also a real estate economist specializing in structuring public-private development partnerships and economic development strategies. She heads Conley Consulting Group, headquartered in Oakland, California.  Since 1979, she has assisted more than 150 clients with real estate matters, development and revitalization strategies, as well as forming public-private partnerships in development.  Before founding Conley Consulting Group, she served as a principal in charge of real estate and economic development consulting assignments at a San Francisco-based economics firm, often directing multi-disciplinary teams of consultants.

MN:     What business ventures were you involved with before you launched the Conley Consulting Group? 

DC:      Before I started the Conley Consulting Group, I worked for a larger consulting firm for 20 years, the last 13 as a principal (partner).

MN:     Tell us about two mind shifts you had to make during your transition from employee to employer?

DC:   First, I had to go from being basically a builder to being an engineer.  As an employee, even by the time I was a principal, I could always rely on someone to take care of the mechanics of keeping the business running.  Now, everything is fundamentally my job. Even with strong employee support, I’m still ultimately responsible for it all.

Second, as an employee, you are focused on your own work product, and less focused on the bottom line of the business overall.   You have to earn the income (billable hours or accrual), but as a business owner you have to pay a lot of attention to managing contracts and collections.  In a down economy, more clients seemed to have ‘lost those invoices’ or just paid them slowly than in the boom years.

MN:     When did you start the Conley Consulting Group and what specific business need does your company fill for its clients?

DC:      Conley Consulting was started in 2001.  We are economists and economic planners, most often serving as a bridge between the public and private partners in development. Our clients are 75% public sector.

MN:     Businesses cannot succeed without capital. What resources did you use to finance your business and how much did you initially invest in Conley Consulting Group?

DC:      Initially, I used the money from my own savings and a home equity loan.  The business was started in my home office.  After three years, our success earned us a business credit line, which we used primarily to finance receivables.

Valorie Burton was 24 years old when she started her first business, a PR firm. It’s been more than a decade since she founded Inspire Incorporated, a company that aims to equip business leaders with the tools to live happier, more successful, fulfilling and enriching lives. Through the company’s Coaching and Positive Psychology Institute Division, Burton offers coaching certification training to nearly 100 coaches a year; she also offers one-on-one coaching sessions for busy executives. Some of her clients include McDonald’s, Blue Cross Blue Shield and the Federal Deposit Insurance Corporation (FDIC). This University of Pennsylvania graduate also appears weekly as the expert on CNN’s “Reclaim Your Career” segment. Other media outlets Burton has appeared on include Oprah Radio, ABC Radio Network, TD Jake’s “The Potter’s House” and ABC’s Family Channel. From 2001 to 2003, Burton served on the Governor’s Commission for Women in Texas. Burton is also the author of the books Successful Women Think Differently, Where Will You Go From Here, What’s Really Holding You Back, Why Not You, How Did I Get So Busy, and Rich Minds/Rich Rewards.

MN:     When and why did you found Inspire Incorporated?

VB:       I went into business for myself in 1997, founding a public relations. Four years later, I founded Inspire Incorporated.  I launched the Coaching and Positive Psychology (CaPP) Institute in 2009, as a division of Inspire Inc., to address the training needs of organizations. In the current economy, many companies and organizations are dealing with a lot of change.  Large amounts of change affect employees. Even the most resilient people get tired of change: layoffs, taking on more work, etc. For this reason, one of our training programs revolves around resilience.  For example, organizations and professionals can receive training on how to deal with and overcome unexpected change. Another piece of training provided through Inspired Inc.’s CaPP division deals with personal and executive coaches.  There haven’t been a lot of programs that teach an academic foundation around what makes people happier, more resilient and prepared to perform better.  When I created the coaching programs I also noticed that many coaches lacked a research foundation.  What I mean by this is, just because someone is great at being a coach doesn’t mean that they know how to market and build a business.  Inspire Inc. and CaPP fill that need.

MN:     Was gaining access to capital a challenge for you? If so, how did you face and overcome this challenge, and how much capital did you initially invest in your business?

VB:       Inspire Inc. launched as an offshoot of my writing and speaking endeavors. After I sold my PR business, I used some of that money to start Inspire Inc. in 2001. I also made sure that I didn’t have a lot of expenses when I started my business. It’s important to remember that when businesses first start, money may not come in as quickly or as regularly as it did when you worked for someone else.

MN:     Tell us about the coach certification process at CaPP. What types of training and certification examinations do you provide?

VB:       Through CaPP, we’ve been training coaches for about two years.  As part of our certification process, coaches go through an in-person and online training process. After finishing a certain number of training hours, coaching client hours they then complete a written and oral exam to complete their certification. Coaches certified through CaPP also complete written exams in business development and positive psychology. We train about 100 coaches a year. We conduct in-person and online programs twice a year.

MN:     What was your biggest challenge as an entrepreneur during the formative years of your business? What is your biggest challenge today and what strategies do you use to overcome those challenges?

VB:       In the beginning I didn’t know how long it would take to ramp up business, particularly as a writer.  I thought my business would be fully ramped up in six months.  Keep in mind that I had begun writing and speaking before launched Inspire Inc. full-time. I was overly optimistic in terms of how long it would take to see my marketing efforts manifest into revenue. What I thought would take six months probably took the first few years of the business. Today the challenge is maintaining clarity about the business vision because there are always multiple opportunities to do something else that might be related to but not precisely what we do at Inspire Inc.  This is so important – when you see opportunities – ask yourself if the opportunity is right for your business.  As yourself if the opportunity is it at the core of your business’ mission.

MEET Vera Moore:  Vera Moore, the President and CEO of Vera Moore Cosmetics, is a former actress who has portrayed “Linda” on Another World for 12 years. Her cosmetic credits include working on Hollywood movie and television sets for The Antwone Fisher Story (starring Denzel Washington), The Bill Cosby Show, The Guru and Saturday Night Live. This dynamic beauty expert offers a comprehensive line of cosmetic and skincare products for the professional and retail market. With more than 30 years of experience in the theatre, television and beauty industry, and the recipient of numerous awards and recognitions, Vera now celebrates the launch of Vera Moore Cosmetics in the new upscale environment of the Duane Reade stores and, nationally, in select Walgreens LOOK boutique locations.

MN:     Earlier in your career you portrayed the character “Linda” on the soap opera, Another World. You also acted on Search for Tomorrow and As The World Turns. What inspired you to go from acting and television to starting your own cosmetics company?

VM:     There was a void in the market for quality makeup for Black women at that time. This was in the 1970’s.  I didn’t want to wear what the masses were offering, because it was red, oily and rubbed off on your clothes.  Also, the colors offered for the beautiful women of a darker hue turned gray and ashy on their skin.  Makeup at that time didn’t allow the true color of women with beautiful dark skin to shine through. Add to this the fact that on Another World I portrayed “Linda Metcalf” a nurse from Bay City General. I had a big problem. Not only were the makeup colors not right, I didn’t want to get the colors on my white uniform or anything else I touched. As I sought a way to meet this challenge, I became inspired to go into the cosmetics business.

MN:     Businesses cannot succeed without capital. What resources did you use to finance your business and how much did you initially invest in Vera Moore Cosmetics?

VM:     In 1979, when I started Vera Moore Cosmetics, I received a loan for $70,000 that was backed up by the Small Business Administration (SBA).  I had to repay the loan within seven years. My husband and I had to personally guarantee the loan by putting our house up for collateral.  This was a herculean challenge, a huge risk. Not many people are going to mortgage their home for a business not knowing the end results. However when you are passionate, determined and laser focused, that’s what you do. We let go of the trunk of the tree and got out on a limb where the fruit is. There are no guarantees, no paycheck every Friday when you own your own business. It’s risk and reward.

MN:     What was the biggest challenge you faced as a business owner? How did you overcome this challenge?

VM:     The biggest challenge I faced involved capital and expansion. As you grow your business, expenses grow right along with you. Every entrepreneur knows that it’s imperative to keep the mentality of lean and mean but inevitably you must hire more employees to meet business demands. However you learn how to work smarter vs. harder as you become a seasoned business owner. As a bit of advice, have a business plan and a marketing plan to use as road maps as to how you are going to get through your daily hurdles and your projects. Proper planning also allows you to know in advance how you are going to achieve your short and long term goals.  When you put your plans down on paper and see it in writing, the challenges are not as frightening. The tasks of operating and managing a business are still daunting, but, with plans, you know which priorities to focus on first.  For example, would you go on a trip without a plan, without knowing where you’re going, what you’re going to wear, where you’re going to stay, the expense of the trip, etc.?  As you can see it takes a plan to succeed.

MN:     When did you realize that you had a viable business and what did you do to celebrate this milestone?

VM:     We realized that we had a viable business when the phones started ringing. New customers were calling based on referrals. People were talking about Vera Moore Cosmetics.  We did out of town trade shows to get new customers and to get the word out. People knew our brand. Our marketing strategies paid off and soon customers wanted to know how they could get the products in the future. These marketing events blossomed into another avenue of distribution, mail order. Also, and I will never forget. . . . A wonderful thing happened to me. I was at an event. I went into the bathroom and a lady took out a compact and it was a Vera Moore compact.  Seeing the compact brought a feeling of exhilaration, created a Wow! moment, letting me know that all the years of hard work were worthwhile.  I celebrated by thanking God for the faith to persevere, for allowing me to stay the course and not give up. I also reinvested back into my business by purchasing technology which allowed me to work more efficiently and effectively.

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

This financial tip has been sponsored by Wells Fargo. Here’s Michelle Thornhill.

The old phrase, “it takes money to make money” is one that still applies when opening or running a small business. There are many options out there for those looking for ways to finance their businesses.

One option is to open up a Small Business line of credit. Wells Fargo offers BusinessLine®, which allows customers to access up to $100,000 for business purposes quickly and conveniently. Business lines of credit are best used for short-term purchases. Another option is an SBA, or Small Business Administration loan. SBA loans come in a variety of options to suit your needs so you can decide which type of financing would be right for you. Other alternatives include applying for a Small Business government grant, enlisting investors, or seeking a financial partner. Try to strike a balance and keep a close eye on your budget and cash flow so that you know which option is best for you to finance and grow your small business.

One last tip is to develop a strong working relationship with your banker or lender.

The more they know about you and your business, the better they can advise and assist you. Join us next week as we discuss tips on how to prepare for home ownership.

For more tips and information, visit wellsfargo.com.

Michelle Thornhill is the Senior Vice President and African American Segment Manager at Wells Fargo/Wachovia. Michelle has over 15 years of experience developing consumer initiatives for diverse audiences in the financial services and non-profit sector. Michelle earned a Bachelor of Science from Virgina Polytechnic Institute and State University, a Master of Science in Administration from Central Michigan University and a Master of Public Administration from Harvard University, the John F. Kennedy School of Government. Michelle resides in Charlotte, N.C. with her husband and two sons.

Michelle Thornhill will provide personal finance tips to get you and your family on the right track when it comes to money management. This financial tip is sponsored by Wells Fargo.  Here’s Michelle Thornhill.

For business owners, keeping track of business finances can sometimes be the most daunting part of the job. There are helpful tools geared specifically for small-business owners that will allow you to make your bookkeeping as seamless as possible.

Business checking accounts offer features like business bill pay and direct pay, allowing you to make next-day payments to vendors and employees; and online foreign exchanges for those who do international business. Wells Fargo Business Banking offers all of that and more. If you use a financial management tool like Quiken or Quickbooks, Wells Fargo Business Online Banking enables you to perform transactions through that software.

Creating invoices and receiving payments has also been made easier through Online Invoicing. Online tools like these offer business owners ease and accuracy for managing their finances.

For more tips and information, visit wellsfargobusinessinsights.com.