Working From The Basement

Sorry for the month long absence folks, but I’ve been working on a few things and trying to catch up with some other projects.  Anyway for those of you that know me I’ve had this side thing going on for awhile now where I got out and listen to local music on the weekends.  Well a few weeks ago while I’d been working on the website (which isn’t finished), I decided to promote my fan page on Facebook.  Initially I had convinced 4 of my friends to join but hadn’t posted anything, but with about 50 videos up on YouTube I finally had something for people to see.

Initially I sent invites out to about 100 people that are my friends this generated about 50 people signing up within a day or two.  Well I wasn’t exactly happy about that number, but eventually it organically grew to about 100 fans.  Considering I have slightly more than 150 friends on Facebook that’s not a bad number, but I really wanted to see if there was any interest in what I was trying to accomplish.  So I decided to take the plunge and set aside some money for a Facebook advertisement.

Well I am a newbie at this but Facebook has a really easy system for creating an ad, especially for Fan Pages.  I am not going to go into detail on how to do this part because it is really simple and Facebook has some great help documents on how to do it.  The biggest decision I had to make was in the pricing section either Pay per 1000 Impression (CPM) or Pay per Click (CPC).  Based on Facebook’s advice I went with CPC which means you only pay when somebody clicks on your Ad.  I targeted my Ad with the criteria listed in the image below, which gave me a pool of around 175,000 people.  Wow really, that’s a lot of people to reach, what’s the circulation of a typical daily paper?  No wonder the paper’s are losing advertising revenue, and remember these are targeted.

So after about a week and a half of playing with the daily maximum that I was willing to spend, along with the cost per click out of 175,000 people, 77 people clicked on the Ad and 42 people signed up for a total cost of $54.99.  The Ad actually was displayed over 175,000 times but that is irrelevant because I choose CPC, it would only have been a factor if I had chosen CPM. 

So here in a nutshell is what I learned:

• It was in my mind over 50% effective in getting people to become a fan when they clicked on the link.  This was with hardly any effort in producing the Ad, I took my logo and mission statement and did a cut and paste.
• Fan Pages have a viral quality, since the people who joined the Fan Page also had friends with similar interest for each person that became a fan other’s joined. This is because the newsfeed now posts when somebody joins a Facebook Group or Fan Page.
• I wasn’t selling anything so your results may vary if you are promoting a product or service.
• People on Facebook don’t click on the Ads very much, but this is irrelevant if you select CPC.
•  Know your target demographics bid as close to the suggested maximum and keep an eye on it; reduce it when you don’t think people will be into what you have to offer.  I increased my bidding in the afternoon, because if you’re into local bands and have been out I doubt you’re going to be up early.
• I now have the confidence to go through with the project, based on the feedback and people I have met through the Fan Page.

So the inevitable question becomes will I continue promoting the Ad and I have mixed emotions on this one.  While I want to promote the community the final website isn’t up so is it worth paying a $100/month, I’m not sure.  Once the website is up, yes I would use Facebook advertising to drive traffic to the Fan Page, then ultimately to my website.

Anyway I hope everyone is having a great year so far and check out my Local Band Review Fan Page and the Local Band Review YouTube Channel.  Also make sure to go see some of our hard working local talented bands most of them work  for little money and they put on a great show.  Technically all band members work from the basement or at least the garage.

WFTB
Michael Lawson

I would like to share something that happened this past week with one of my clients.  I’m working with a local family.  The wife works for a large multi-national company and the husband works as a handyman.  They became my clients this past summer and they recently asked me to research the husband’s current business insurance.

Of course, I agreed and the first thing I noticed in their current policy was that the husband was classified as a carpenter.  So I asked him…are you a carpenter?  Well guess what he’s not, because in the course of his work week he does do some light carpentry, some electrical work, and minor home repairs, etc… In fact he is a handyman!

The commercial “class code” on his policy was wrong.  This means that if he had a claim while doing something un-carpenter like he ran the risk of having the claim being denied by his insurance company and having his policy cancelled.  On the other side of the coin, his current agent (no, not me…but a LARGE state-wide chain) has a possible errors and omissions exposure.

As a quick side note-a class code is the code for a type of business.  This code is in turn associated with a rate.  Each business type has a different code which means each code has a different rate.  For example a carpenter is generally a less expensive rate than a roofer.

Sometimes an agent might misclassify a business deliberately because the rates are more favorable.  An agent that does this might lose the ability to sell insurance for that company, especially if he/she does this often. While this may save you money on your insurance it could cost you a good deal more if your business is not classified correctly.  The point is; check with your insurance agent to make sure that you are correctly covered for what you do.  When you receive your commercial policy, please review the declaration page(s) carefully to make sure the information about your business and its operations are correct.   Commercial insurance policies are very specific about what they will NOT pay for.  If you see something there that either does not make sense, or you don’t understand…ASK.

When you receive your commercial policy and you have questions, your agent should be very willing to answer any and all your questions about it.  By the way, when shopping for commercial insurance, you may want to consider using an independent insurance agent (like me!).  They have more than one company they work with and if the rates go up with your current carrier, they can always “shop” your business with another company.

Charlie’s Info:
Hi my name is Charlie Schein and I’m an independent property/casualty insurance agent.  I’ve been in the insurance industry since 1988…but have been working “from the basement” since September.

Charlie can be reached via his contact information listed below:
(860) 513-1055
(860) 819-9810-Cell
(877) 513-6363-Fax
charlie@starschein.com
www.starschein.com

To keep up with Charlie follow him on Twitter or Facebook.
Twitter: http://www.twitter.com/cdschein
FaceBook Fan Page

WFTB – Charlie Schein

We all know the story of the cobblers kids walking around shoeless.  Well, I have been feeling that way for awhile now.  While Diana has had the B-Law LLC Fan Page up, I’ve been negligent and hadn’t done one for either WFTB or 2ndot, so last week I took the plunge.  The experience so far has been interesting in that, while I am used to getting followers on Twitter, a Fan Page can be a one-way street.  Twitter encourages conversation, while Fan Pages are more passive and the only way to talk to people you don’t know is to become their friend – unless they participate, which kind of defeats the purpose.  You can start a discussion, but there is no guarantee that anyone will participate and sending a Facebook email seems too invasive.

So what use are they, you may ask? Well, it does provide you with a fairly low-maintenance way to interact with potential clients and build a referral network without much work.  I have always found it annoying when people update their personal Facebook status from TweetDeck or some other Twitter-related tool because most of the time it is Twitter speak (lots of @ symbols and short talk).  Facebook now provides a link to go the other way, which seems more effective as long as your first 120 characters gets your point across.  (The other 24 characters get turned into a shortened link pointing back to the Facebook post). It is also easier to update than a Blog, which actually takes time to think about, write, add links, and check your spelling and grammar etc., while adding an external link, photo or status update in Facebook with a comment is a fairly quick and easy process.

So the next question is what do you put up there? Do you just rehash the same thing that you put on Twitter?  My answer is no.  Since I started with the 2ndot Fan Page, let me explain a little bit about what I did with it.  Since @2ndot is my primary work-related and personal online personality, I wanted the page to reflect that persona.  So I decided to provide links to information that an everyday computer user would find interesting or useful.  My business normally doesn’t provide home computer support, just business-related services. But I have a wealth of information that can help home users, so a Facebook Fan Page provides a perfect platform for this.  A bonus here is that I don’t need yet another website to maintain, and it’s a totally opt-in relationship.  Also being able to use the discussion feature allows people to ask home computer related questions.  Facebook is also a great product to use for event scheduling, with attendance tracking and just notifying people in general, so having a Fan Page opens up another communications avenue.

While my personal profile on Facebook is very active, I don’t like spammy Fan Pages, so I have decided to limit my posts to only one or two a day maximum.  I think this may even be too much and I will adjust it if I get complaints.  As for the WFTB Fan Page, well, for now I will probably use it to promote the site much in the same way I do in Twitter.  Since WFTB is a blogging website I think you would use it to direct traffic to the blog, but only time will tell.  I am really interested in any feedback about my techniques used here and how other micro-businesses use their Fan Pages, so feel free to comment.

Again thanks for visiting WFTB…

WFTB – Michael Lawson

They say there is no such thing as a good decision, but unlike what the accompanying picture says Indecision can kill a business.  Being able to make quick well informed decisions is one of the benefits that entrepreneurs have over their larger competition.  If you’ve ever worked for a large corporation or on a committee you know that sometimes even small decisions can take forever.  Endless meetings, missed deadlines and misinterpretations have killed or sidelined many projects.

It’s not that larger companies can’t make decisions, it’s just that sometimes their structure and policies can get in the way. That’s not to say that longer strategic plans shouldn’t be discussed at length especially when they affect their employees and the company’s long term health.  Also just because you are small you shouldn’t make snap decisions based on no information.  Take as much time as you need and gather all the information you can, do your research, ask friends and consult your peers.

So what happens if we make the wrong decision? Well then you simply make a new one to correct it the best you can and move forward.  I always go by the formula of 50, 50, 90 which means:  you have a 50, 50 chance of making the right decision, but 90% of the time you are wrong (just kidding, sort of). Making any type of decision is better than none, because if you don’t your forward momentum and enthusiasm may be lost. Sometimes making a decision is hard especially when you are unsure of which way to go, but take the responsibility and implement the changes as you see fit.

Just to make it clear Indecision is not the key to flexibility, don’t believe everything you read on a wet nap.

WFTB – Michael Lawson

We write a lot about networking events here on WFTB, for the obvious reason that they play a major role in meeting clients and finding resources.  These events are not strictly business-oriented, and people attend for various reasons. While it is a great way to socialize and make some real connections, it doesn’t always work out that way.  I’ve had this article sitting in draft mode for awhile now, and after reading Chris Brogan’s “Stop Humping My Leg” post on his blog yesterday, I finally decided to publish it.  I have met many people I like at these events and whom I would consider real friends, but as Chris mentions in his article, simply: “if you hump my leg, you risk screwing yourself.”

One of the benefits of Social Media is that it can accelerate trust, friendships and client interactions, based on the amount of information you can find about people and their companies on Social Media sites.  This usually works to each person’s advantage, but once and awhile, just like in real life, it is one-sided.  Like Chris mentions in his article, it is about building relationships, and that is not as simple as just knowing about the other person from their online presence.

Social Networking events such as the CT TweetCrawls are a good way to meet people, and I have been both promoting and reviewing them on WFTB.  My own social media guidelines allow anyone to become a LinkedIn Connection, but don’t assume I am going to let you be a Facebook friend.  Notice that LinkedIn calls people “connections,” which is not a big commitment in my view, while Facebook uses the word “friend.”  This may be the crux of the problem and may just be a word to most people, but to me it means something.  I use Facebook to communicate with the people that I know and have usually met in person.

When you do meet in person (and if you have been following somebody on Twitter and they followed you back), don’t assume that they are your best friend.  Just like in any social setting introduce yourself in a respectful manner and let the person know that you are a follower, then start a conversation.  Even if you have had a conversation online don’t assume the other person remembers it. There is nothing more annoying than somebody assuming that you know all about them, too, especially if they use an alias.

The way you post information about yourself may also be exacerbating the problem, if your posts are too personal you may want to rein them in.  Using your real name as your nickname can also be an issue, but it is up to you to create your online identity and presence.  I have multiple Twitter accounts for exactly this reason, and for me that strategy has worked well.

A lot of people are using Social Media resources in different ways to promote products, services and themselves, so your views may not agree with the other person.  If you consider someone a spammer, for instance, you should not feel guilty about unfollowing or unfriending them; but, you can also use filters to hide their posts as a compromise.  We are all learning the rules as we go (and the problem is there are really no set ones), so for now I would suggest be patient and understanding, but don’t allow people to be abusive.  Just like in real life, we have to interact with people that we don’t exactly get along with – you should use the same techniques with Social Media.  Just remember to bring your Miss MS Manner’s book and we should all get along.

WFTB – Michael Lawson

OK a lot of entrepreneurial related media talks about creating your own rules to be successful, but that’s not what this posts about.  What I am talking about are the rules that we need to keep ourselves motivated, organized and sane.  I have two sets of rules I use, one set is used every day the other for specific days of the week.  I’ll go over some of the ones I use every day.

1. COFFEE – This is the number one rule that must be obeyed for me to function, and I’ve seen Diana without coffee so I assume this rule to be universal.  I must have coffee before my brain even starts to work correctly. 
2. SHOWER, SHAVE etc… – OK this one usually happens at some point during the morning, but again it is not as important as rule #1 and sometimes goes un-followed.  This rule actually becomes rule #1 when leaving the basement though.
3. THE DAILY TASK LIST – This really should be rule #2, but #1 and #2 seemed to go together (am I confusing you enough yet?). I try and keep a short task list with only 3 or 4 things on it, enough to get completed during the day but not too daunting.  Yes I have a real task list that contains everything I need to do, but by moving only a small number into a daily list it makes it so I feel accomplished.  You can always add and remove things to the list and prioritize it as the day goes on.
4. LIMIT DISTRACTIONS – We talked about space here before and limiting environmental distractions is important, but keeping yourself focused is important as well.  If you are in the middle of something and the phone rings don’t take it unless you have to.  Close your email client, Chat, Facebook and any other Social Media outlet, plan to spend a set number of minutes an hour checking them if you use them to market your business.  I like to answer emails first thing in the morning, mid-morning, over lunch and mid-afternoon, unless it’s an emergency.
5. MUSIC – I don’t consider music a distraction, it helps me concentrate while working alone, One of the benefit about being self-employed is we can crank it when a good song comes on.

I actually have a few other rules I follow, but I just wanted to get you started writing your own list, although I think Rule #1 is universal please let me know if you have anything else to replace it.  I’ll post my weekly list if anyone is interested, but that is going to vary greatly depending what you do for a living.  Having guidelines even if we don’t follow them exactly helps us get through those really tough days, and I think also keeps us more focused.  One nice thing is your rules can be anything you want them to be; after all you are the boss.

WFTB – Michael Lawson

Morning, kids.  Still having my first cup of coffee.  Okay, maybe it’s my third cup, but I’m still not fully awake yet.  Been reflecting on the week.  I haven’t had much time to write this week, but I have a few minutes this morning and wanted to share my thoughts.

I am so very thankful.

Here’s what I’m thankful for:

1.  Good friends. This week has been rough – hell, the last six months have been rough – and I’ve got amazing friends who give me that boost when I need it.  And, I wanted to thank Mike Lawson for carrying the weight of the blog this week with all of his awesome posts.  And for the IT help.  And for the weekly beer and grilled cheese.  And his wife, Karen, for allowing me to invite myself over and yell at people in their basement.

2.  Good family. My sister has been my Office Manager for the past six months or so, and I owe so much to her.  She’s our Collections Officer; she’s Accounts Payable; and she handles purchasing all of the office supplies.  Working together has made us closer as sisters, and I’m so lucky to have her. 

3.  Good beer. Headed to Foster’s tonight to share some beers with some friends.  Nothing like swapping stories, teasing Mike Lawson, and drinking some fine brew.

4.  Great presentation yesterday. I spoke at Mohegan Sun to a group of financial services professionals.  The talk started out as LinkedIn101, but then morphed into a discussion of FINRA rules and compliance difficulties.  Great discussion.  I love smart, passionate people.

5.  Great roommates, both personally and professionally.

a.  Personally. I recently moved from Marlborough to East Hampton, one of the toughest decisions I’ve had to make.  I found a guy on craigslist who was recently divorced, had a large dog, and needed a roommate to afford his house.  We rolled the dice and combined households, and it has worked out so well.  I got really lucky.  Having someone to share in the dog responsibilities and the house chores makes life so much easier.

b.  Professionally. My office is in Main Street Market, in Middletown.  We moved from the back of the building to the front of the building a few months ago (yes, two moves at the same time – stressful), and we are so lucky.  The landlord is great; the tenants are great; the building is beautiful.  MSM functions like a mini-community – Pastry Steve’s shop operates as the watercooler for all of us in the building; Norman at the African Art store signs for packages for me when I’m not around (and he barely knows me); and Tad the Building Manager stops in to check and see how we’re doing.

I’m in the right place, and I’m extremely lucky.  Thankful Friday. 

WFTB

If you are starting a new home business, one of the most important decisions will be where to put your home office.  Over the years mine has moved and ended up in the basement, but depending on your situation that may not work for you. Most people at first end up using a table in the kitchen, dining room or simply working from the couch and floor, when nobody is home.  It is very important though that you find a quiet place to work, especially if you need to think, write and make private phone calls.

While a corner in a room can work,  I would recommend finding a whole room or using a partition, and make sure that you keep it somewhat organized.  If you have a whole room, make sure it is big enough for some expansion, my latest space even has a spare desk.  Also consider going paperless, this one decision alone can free up a lot of space, scan what you can and keep up with your filing and shredding.

Having a space doesn’t mean you are tied to it for 8-16 hours a day either. Break up the monotony by working from  the deck, going to a coffee shop or even the library.  After all, if you are self-employed, setting your own rules is one of the benefits. I usually take a long lunch when I begin to feel cooped up and bring a laptop with me to get some work done.  This helps clear my head and get motivated. Make sure that when you do this, though, that it is something you can do while being distracted.  Don’t take a project with you that requires a lot of concentration. Your office or shared space should feel comfortable enough for you to escape to and get serious work done.  If you dread it because it is disorganized or in the wrong spot, you may want to consider other options.

In the past I have always thought that clients didn’t take you seriously if you worked from home, but with more people telecommuting I think that this perception has changed.  While this does depend on what you do for a living, and having an office outside the house can motivate you to get going in the morning.  One of the best consulting jobs I had was for GE in Avon where I was able to bike into work on nice days using the Farmington Valley Greenway.  I am just pointing this out because if you don’t pick a spot in your house or apartment on where to setup shop it may impact your work. If you really can’t work in the house or coffee shops, another option is month-to-month office facilities where they rent you a small office and a shared conference room.  This can be a great stop-gap measure, before committing to an office lease.  Other options include adding an addition on to your house, but if you plan to have employees you should check your towns zoning regulations.

The IRS used to frown on the home office and it was a big red flag, but now the rules have relaxed, and as long as you have a legitimate office, preferably one with walls it can be a great benefit.  I have always had a home office and over the years have made it a home within a home – my commute is 16 stairs in the morning.  It may take you awhile to make it comfortable, and make sure that if you don’t like something you change it as quickly as possible.  Don’t buy a lot of furniture either – people tend to crowd out their home offices – and make sure anything you buy is light-weight and can be moved easily.  Considering that I live off RT 4 in Farmington I save about 2 hours a day, so for me working from the basement works.  Make sure you name your space accordingly whether it’s a corner, a basement or a fortress of solitude make it your own and make it work for your business.

We are looking for people to Interview about how they work from home so please feel free to contact either Diana or myself if you are interested.  If you have any suggestions on what makes your home office work please feel free to comment on this post.

WFTB – Michael Lawson