Tale of a Small Entrepreneur

Tale of a Small Entrepreneur
Launching a Successful Consulting Practice

by Michelene Malosh

Consulting is a common start-up business for individuals who wish to contract themselves independently to a variety of organizations. Many give consulting a taste part-time, while still working at full-time jobs. A few of the hardy go into consulting full time. Consulting often is a home-based business, with relatively little overhead or start-up costs involved. However, in order to succeed, the same small business start-up principles apply.

Lightkeeping Consulting, based in Mount Gretna, PA, is an example of a local consulting firm that has been in successful operation for two years. Kathleen Snavely, the proprietor and sole employee, markets herself as a strategic planner for small businesses and non-profit organizations.

As a strategic planner, she has been able to provide services to a variety of businesses. Recently, she assisted a bed and breakfast that was seeking to rewrite their business plan in order to refinance their mortgage. Snavely has also headed an employee empowerment initiative at a local retirement village and helped a graphic display company establish a business plan.

Along with strategic planning, Snavely has a number of additional interests. Currently, she is writing a book of children’s sermons based on the lectionary calendar. She also works on highway safety issues. "I am a certified instructor for the Network of Employers for Traffic Safety (a program of the National Commission against Drunk Driving)," she said. "Also, I am a trainer for individuals instructing the state’s Alcohol Highway Safety Schools."

Involved in the community as well, Snavely is bringing her extensive knowledge of small business to the Lebanon Valley Chamber of Commerce Home-Based Business Committee. She will Chair the Committee’s Spring Conference.

Due to her experience starting her own small business, as well as assisting others, MODE asked her a few questions about what it takes to be successful and what pitfalls to be careful of.

1) What was the one decision, practice, or idea that you implemented which really helped you get your business off the ground and soaring?

I really stalled getting started. Although I initiated my business name, etc. in 1995, I didn’t really get started until mid-1996. I had volunteered to do a good deal of non-profit (and non-paid) work, which I wanted to get done first. I think I also had a fear of failure looming over me. A few caring mentors and family members asked me, "What do you really have to lose by trying?" So, I gave myself a deadline by which to finish my business plan and then got moving in a constructive direction.

2) What was your best idea and practice for attracting customers and building your clientele?

The overhead transparency series I developed I had planned on marketing to individual DUI county programs. The organization I previously worked for provided services to this group, so I knew the target market well. I was told that I probably wouldn’t receive any contracting work through my former employer since, as a past employee, it might be construed as favoritism. However, I did want them to see what I was planning on marketing. Because I took that initiative, that organization bought 62 sets, which they supplied under contract to all 62 county DUI programs in Pennsylvania.

Additionally beneficial was joining the local Chamber of Commerce and getting involved. I initially joined the Chamber for their health benefits package. Shortly after I joined, however, a home-based business (HBB) committee was initiated. I got involved in that committee right away since I am a HBB, and that is part of my target market for the strategic planning work I do. I attend chamber mixers/events and advertise in the monthly newsletter. The Chamber has been a great source of business, not just because I belong, but because I’m involved. I make my Chamber membership work for me.

3) As a person active in small business entrepreneur-ship at the community level and as a owner of your own consulting business, what are some key insights you’ve learned about starting a business?

Keep your traditional job, and start your business part-time if possible. Before getting started, research, your service area, target market, etc. I investigated three other businesses before I started this one.

Know your business - stay focused on your mission statement and goals.

Take well-researched, calculated risks.

Give your customers more than what they want or need.

Be prepared to invest a great deal of personal time, emotion, and effort. If you like the 40-hour, 9-5-work week, stick with a traditional job. I usually work at least 60 hours week and frequently more.

Remember that cash flow is everything. The most frequently made mistake, along with not preparing or poorly researching a business plan, is lack of healthy cash flow.

Always pay yourself last.

Another big mistake entrepreneurs often make is doing everything themselves. Although many business owners have technical expertise, they lack good business planning or management skills. They often refuse to ask for help and when they do it’s too late or they don’t listen to good advice. Many businesses I’ve talked with operate more by the grace of God than sound business management practices. Do not strive to live by grace alone.

Build a network of other professionals who share your passion for excellence to help you serve your customers. If I can’t deliver a segment of whatever best serves my customer, I find someone to partner with me who will share talents with them that I can’t. For example, I am teamed with a personnel analyst and accountant to help one business re-engineer itself.

Build a network of mentors to act as an honest sounding board for issues and ideas. Don’t line up a bunch of yes men who will tell you what you want to hear. Rather, have a group of people that genuinely care about you and your business, who have an understanding of your mission and how you pursue fulfilling your goals. They will help keep your ego in check, so that you stay focused and your purpose remains well grounded.

Always remember that what you do shouldn’t be who you are. Keep your sense of self separate from the business you conduct. No one’s self-esteem should be solely dependent on their business.