Here is a brief recap:
*How do you go about incorporating your company, and when do you do it?
Answer-If you Inc. you need to start in small steps. Start as a sub chapter F and then a C chapter once you take on staff so you can save on taxes. However, the best advice is to start as a sole proprietor and to hold off on Inc. until you have grown in size and have staff.
*What are the biggest mistakes a new, start up business could make, and how can they avoid those mistakes?
Answer-Not understanding the amount of money to start a business. The working capitol needed to continue is huge and should be factored in during the "research" part of developing your business into reality. Another big mistake is to not close shop when you continue to lose money. If you hang on to a business idea that is failing, all you are doing is flushing away money. Walk away with what money and investment you can save. ALSO, pay yourself first. You are the most important employee, and should be paid FIRST. Then pay everything else. A huge mistake is for business owners, esp. women, to take care of their staff and everything else before they pay their paycheck. You are in business to make money, and you won't do that unless you pay yourself!
*What is the best use for extra income, either from bonuses or paychecks, right now?
Answer-Normally, Suze would recommend paying down debt; however, in our current economy, she says SAVE IT! Credit Card companies are actually starting to close down accounts on people so they decrease their risk; so, if you get laid off and and don't have an 8 month emergency savings, you may find yourself in a hard squeeze if the credit cards you thought you could use in such an emergency are closed. So, right now, save all the extra money you can.
*What is the best way to finance a business? Self finance? Bank finance? And how do you get a bank to back you right now?
NEVER self finance unless you can afford to still live your lifestyle unburdened should you lose your whole investment. The best way to find investors is the put together all the research of your idea, get the money costs, the staff costs, the hows, whys and wheres all worked out and into a professional presentation before you hit up investors for money. Going to the bank, clean up your credit and have investors backing you. It never hurts to also show the bank your business plan so they can feel more confident in your success as well.
*What if you live paycheck to paycheck? How do you save an emergency fund?
Answer-Play financial unemployment-Force yourself to put money aside first thing and you'll be amazed at how you make your money stretch. When you open a SaveYourSelf account and put $100 dollars each month in, at the end of the year you will get another $100 added to your account, that you can immediately withdraw. You can go to www.saveyourself.com for more info.
I wish I could go through all the great questions the fabulous mom blogger panel got to discuss with Suze, but there were so many it would take many many posts to go through them! You can; however, go to twitter,follow me, of course, and search the #suze tweets (or is it twitterings?) to see the questions and answers Twittered in real time yesterday. I think between all of us mom bloggers present we were able to cover everything asked and answered! Also, the most awesome part EVER is that Suze DOES answer questions you send her over Twitter, so if you missed out on submitting questions yesterday, you can still get them answered by following @SuzeOrmanShow!
Suze was also so amazing and motivating, and I have to thank the wonderful people at Mom Select and AVON for putting together this interview and inviting me to be on the panel. I really felt like a fish out of water, sharing the discussion with the fantastic group of top mom bloggers AND Suze Orman!
I mean, really, I watch her on Oprah! Never in my wildest dreams did I ever think I would get to talk to her and ask her my financial questions!
Here are a last few tidbits of advice I learned:
*Go to www.savingforcollege.com for THE BEST advice on the different state 529 college savings plans for your family. NEVER use Universal life insurance. Suze has a fit over anyone using those. Just so you know.
*Suze is a huge fan of AVON, a company that allows women to really become powerful in their own business with no risk of losing investment. You can learn more about AVON here: http://www.prnewswire.com/mnr/avon/37724/ and if you would like to get involved with AVON you can go here: http://www.youravon.com/REPSuite/become_a_rep.page?p=PRBlg423&c=PRBlg423
Time for a GIVEAWAY!
You should always have a living will in place; that is the best and only way to protect tomorrow today. Usually it costs a lot of money to set it up; however, for the next 48 hours, you can get one done FOR FREE buy going to www.suzeorman.com,click on the "Will & Trust link in the blue bar on the left hand side of the home page. Click on the orange Gift Code button and enter "Moms Rule" into the gift code field. Click the green Submit button and follow the instructions to redeem your free copy of the Will & Trust Kit. This Give Code will be valid until 12:00PM EST on Saturday, April 25th.
So yes, I learned A LOT yesterday, talking with Suze Orman! Is there any advice, financial or otherwise, that has really made a positive impact on your life, business and money management? Suze's greatest advcie to me? 1-You must be powerful in your money to be powerful in your life and 2-"Being a mom is the hardest job there is-if you can do that, you can do anything."
Have a great weekend; I'll be busy working on my Will & Trust after downloading my free kit!