New Business Start-Up Guide

The Women's Small Business Start-Up Kit

A Step-By-Step Legal Guide [With CDROM]

By Peri Pakroo
(NOLO, Paperback, 9781413311884, 520pp.)

Publication Date: May 2010

Since I finally extended our wireless connection into the living area at Paragraphs, I though it would be a good time to catch up with reading some e-galleys that have been waiting to be downloaded and reviewed. I must admit I am still not totally sold on the net galley and catalog experience. I certainly appreciate the green aspects -- especially when I am buried in paper and books the idea of killing fewer trees for printing review copies makes sense -- yet when I spend so much of my day looking at a computer screen I long for the relaxing feel of print on paper as I curl up in my favorite chair.

But I digress. The galley I opened was a new edition of The Women's Small Business Start-Up Kit. I am about 2 years late in reading this but after the first few pages I have decided it is never too late to get some additional guidance. Before opening Paragraphs I worked through several business guides and had some great advice from the publications offered by and recommended by the American Booksellers Association and so far things are going well; we are able to pay our suppliers, our inventory is growing along with our customer base, and I am still excited about the future. But, there are places in my planning that were definitely left a little up in the air -- things I thought I would finish after we opened. The problem with that scenario was the lack of time available once we got our feet on the ground and needed to keep up with daily chores meant those areas I planned on cleaning up later are still clouds on my horizon a year and a half after opening. So, I am ordering a copy of this great little guide and looking for some help in those areas which I still need to address.

While I have made an effort not to forget why I moved to south Texas to live on a sandbar and make sure the bookends and I along with Griff, when he is in town, get to the beach at least once or twice a week, I have had much less time to devote to establishing friendships than I expected. Pakroo identifies this as one of the topics she covers in her book.

Another important aspect of running a business that the book addresses is the development of organizational skills and systems. Now, this is what I need.

Anyway, I think this looks like a helpful and informative tool for any woman who is wanting to take the plunge into running a business. And even a year into this experiment I am looking forward to ordering the book so I can refer to it and get some ideas on making this madhouse run a little more smoothly.

Hello Again

Those that follow me on Twitter know that my laptop decided it needed a break and just quit working more than a week ago. Without this old faithful friend I have been unable to update my blog but I'm back online now. Fortunately, the nice guys at Action Computer, didn't find anything seriously wrong and after a few tweaks to my video driver, a thorough cleaning (yes, the dust and dirt was getting a little thick), and a nominal $35 charge I'm up and running.

There are some advantages to forced computer and internet withdrawl. First, it allows one more time to read. I was able to get through several books on my to be read stack and with the tanking economy this escape was pure joy.

Since I couldn't do anything online, I spent the time focusing on preparing for the move to South Padre Island. Books and more books have found their way into boxes and have been hauled to the garage. Griff will arrive from New York on Friday and he plans to make sure the old "Raven" is prepared for the trip. On Monday, I have arranged to have a packing/moving service come and move any large pieces of furniture to the garage and pack any pictures lamps or other odd items.

When they have left, we can put my mother's house back together, so when she returns next spring it won't be to the tornado-struck mess of today.

The goal is to leave Denver early afternoon on Tuesday and head to the sandbar, and paradise. It will be a family trip - my mother, aunt, Griff, the bookends and me. We will find someplace to hang out on the Island for a few weeks while completing whatever final arrangements need to be made in order to move in. Griff heads back to New York on the December 1st and will arrange for the mover to pick up everything there (which was packed last summer) and then to make a stop in Denver and pick up the items stored in our garage. I should have "my stuff" delivered sometime before Christmas. Then I can work at unpacking, which will be quite an experience in itself!

First Advertisement For Paragraphs

This is the first print ad which will appear for Paragraphs On Padre Boulevard. It will be used in the 2009 South Padre Island Visitors Guide.

Many thanks to John Carvalho, at Mixed Media Marketing Inc. in Fernandino Beach, FL for his help. John has done a lot of work for independent bookstores and I was referred to him when I first started to think about the possibility of opening a bookstore. He has been very patient with me over the year and a half that we have spent developing a logo and graphic theme to represent Paragraphs.

Never fear, my South Padre Island friends, once I open and am firmly transplanted onto our sandbar, I plan to do my best to "Shop Local".

Paragraphs On Padre Boulevard, LLC

I have had a million topics over the last week or so to write about but somehow just never seemed to be able to put anything on paper, or should that be on-screen.

There are dozens of pieces to the puzzle known as Paragraphs and right now it seems like they will never fit together. Any of you who have put together jigsaw puzzles may understand the feeling - first, you pick out the straight edge pieces and assemble the border, then you continue to lay out as many of the pieces as will fit on your table, maybe even sorting them by color. Up to this point the process has been made up of short term, definable goals but now with all 1500 nearly identical pieces spread out everywhere the vision of a completed puzzle seems nearly impossible to imagine. How are all these little pieces ever going to fit into the whole and where does one begin?

Well, that is the position I feel like I am in. The border is completed and all the details are laid out, posted to some computer file, jotted down on a card somewhere, filed in a folder, or just rattling around in my brain and waiting to be put in place. But instead of being able to begin assembling the pieces it seems I just keep finding additional pieces and I can't see where they will ever all fit together!

One section of the puzzle which seems to be coming together - like when you are able to find all the copyright pieces and connect them to the border in the lower right hand corner - is the legal formation of a company.

After mulling things over and over and over I finally just made a decision and chose the Limited Liability Company to be the business structure for Paragraphs. For all those marketing types I am a testament to the power of TV advertising - since Robert Shapiro and the ads for LegalZoom.com began to penetrate my brain and I thought, why not? Well here I am a week later and I have a professional-looking leather-bound portfolio with Paragraphs On Padre Boulevard, LLC, embossed in gold on the spine, complete with a State of Texas certificate recognizing the company's existence, a company seal, and all the other necessary legal documents. They also prepared the applications for a Federal ID number and State of Texas Sales Tax Certificate. I was hesitant about using an on-line company, but for the limited purpose of getting the necessary papers on file, with the correct federal and state agencies, where an attorney would be helpful but not required, this service can save a lot of time and headaches for a reasonable cost.

Indiebound Community Launched Today

The online community is a vibrant gathering place for supporters of indie retail businesses. Those who register for the community can share information about indie retailers (including locations and specialties), comment on community issues, offer book recommendations, and exchange personal communication. Visitors are encouraged to add stores to the national indie retailer map, to become fans of stores, and to connect with like-minded indie enthusiasts.

"The mission of the IndieBound.org Community is to help people across the U.S. share and find great independently owned businesses," said ABA Chief Marketing Officer Meg Smith. "By connecting indie-conscious people with local businesses, we're working to strengthen the health of Main Streets. Thriving local economies make for sustainable communities and happy residents." Smith stressed that the community site is "a work in progress. We're planning on rolling out new features and new content on a regular basis over the next six to 12 months."

I blogged about this earlier and threw the idea out on the SPI Forum to mixed reviews, although I was pleased to see there does exist a modicum of interest in starting some kind of an Independent Business movement.

I was pleasantly surprised. Some time ago, I suggested my preference upon the arrival of a Tuesday Morning, while welcome, for an independent specialty shop that would offer a variety of housewares and gift items selected specifically for our community and which would add to the overall image and character of the Island. Most of the response on the SPI Forum was in favor of franchise, brand-name, retail establishments. The general consensus seemed to be a desire for recognized businesses where the merchandise or service provided is standardized and the consumer knows what to expect because the corporate ownership allows for less variety between stores. I must admit to a sense of discouragment at this attitude since I had felt the residents of South Padre Island would be more eclectic in their attitudes.

In all fairness, part of what may have influenced the attitude which I observed in response to my plea for the indie retailer, is the general lack of availability of many goods and services on the Island, and so even if the provider is a franchise, the ability to find what one needs without leaving the Island is certainly attractive.

The part of the Indiebound community which makes it different than most programs rolled out by the ABA, is its focus on all community independent businesses, not just bookstores. And this is consistent with the idea of booksellers as an integral part of a community. What it provides to South Padre Island businesses is access to another national demographic, which may not have been reached by the town's more conventional advertising without any additional expense. Furthermore, the concept is driven by personal recommendations from consumers - so if a business does not provide quality goods or services, they will probably not have many fans or positive comments.

Users who have created accounts can do a number of things:

• Post comments on retail stores, whether it be a review of each store, a personal experience there, some recommendations -- anything that can help other people learn more about that store;
• Edit existing stores to add more information -- store hours, pictures of the store, etc.;
• Add interest tags both to their own accounts and to stores ... tags like "Southern literature" or "vegan" help connect users and stores, and help everyone discover new things;
• Become fans of stores they know and love -- so that other people can find stores through their user profile;
• Add new stores -- great indie retailers they're familiar with; and
• Add other users as friends, and leave notes for other users.

What Else Can Go Wrong?

The last couple of weeks are not ones I want to relive any time soon. Not only have they been immensely frustrating days but the time wasted is not insignificant and with the number of things needing to be done according to my detailed schedule I have felt my already mounting stress level going off the charts.

To begin with, after Paragraphs survived Hurricane Dolly, our basement in Colorado was flooded during a freak thunderstorm. Wading through the water and looking out the basement window, where the water was flowing into the basement from the flooded window well, I was reminded of an aquarium, except instead of fish we had a few surprised spiders wondering where this deluge had come from and trying to locate a piece of bark or some other saving ark.

Anyway, I spent several days understanding - admittedly on a smaller scale - and undertaking recovery efforts similar to my friends on the island. Getting rid of several inches of water, bleaching the walls and floors, tearing up water-soaked carpet and rounding up all the fans I could find, filled several days with unneeded hassle but eventually things were beginning to look up and I was ready to return to bookstore tasks.

Of course, when it goes bad it just goes bad!! When I turned on my laptop last Thursday morning, happy to be back on track and looking forward to thinking about Paragraphs, I was met with a black screen and a little blinking cursor in the corner. I had believed my days of DOS screens were over - but here it was just sitting and blinking like the old days - except I couldn't get any response, try as I might. Add to this frustration, the sinking feeling in my stomach when I realized that I had backed up a Quicken file after preparing this years taxes, but a complete backup was something I had neglected.

So I spent a day going through all the motions, trying to recover, repair, restore all to no avail. Finally, after a call to tech support, which left me in an even more agitated state, I resorted to taking my failing brain to my local independent computer guru. The diagnosis was a failed hard drive with a poor prognosis of data recovery. Now I know why this old machine had been making so much noise the last few months. But of course the constant grinding and whirring wasn't enough to prompt me to take the precaution of backing up this obviously overworked hard drive.

I did have some remaining hope - my email was safely archived on Google's server in the sky and my addresses, phone numbers, calendars, passwords and log-in information, booklists, and myriad other details were safely stored on my trusty Treo. This also meant that I was not completely shut off from the world. Until...

Saturday morning the unthinkable happened. My phone decided to crash. At this point I decided that there is something to be said for pencil and paper and I am still wondering if the advantages of technology are actually worth it, when faced with the trauma created when it refuses to cooperate.

Luckily, the guys at Action computers realized my nerves were shot, and they returned my laptop yesterday instead of the 5 days which Comp USA would have required so I am beginning the arduous task of reloading application software and determining what all I actually did lose. I have also recovered much of the data from my phone although it still seems to have a problem which may require professional help.

All in all, tomorrow should be the beginning of another day and hopefully circumstances will allow me to return to those tasks which are on my to do list. I am keeping my fingers crossed.

SPI - IndieBound?

I attended a workshop,this morning, sponsored by the American Bookseller's Association, telling us about all the exciting things that are happening with the new IndieBound program.

For several years, the ABA sponsored a marketing program for independent booksellers called BookSense. The idea behind BookSense was to harness the collective wisdom of member bookstores in making recommendations to readers and to have a greater influence in the publishing world.

Well, the time had come to spruce up the program and apparently as the Madison Avenue types reviewed what was happening in the marketplace, they discovered that the concept of supporting local businesses and independent retailers was a growing trend and movement. There has been a distinct shift away from and a general disenchantment with the big box and chain retailers.

So the new brand IndieBound was born. Initially this is still primarily focused on bookstores but the aim of the program is to allow other types of independent businesses to become linked-in to the program so the consumer can more easily locate and support his or her local shop or at least buy from an independent retailer.

The exciting part is the materials the ABA is making available. They are easily reproduced - they suggest we practice what we preach - at any local print shop, such as Toucan Graphics to name one. But the best part about these professionally designed marketing pieces is they can be easily modified and used as part of a town wide Buy Local - Support Your Independent Business program and did I mention they are free - at least with a membership to the ABA (and Paragraphs is an ABA member bookstore so we will have access to any and all of the materials).

Wouldn't it be great to see the Indie businesses of SPI come together and cross promote one another as part of a Buy Local campaign. It could also be expanded to include Port Isabel, and the nice part is the advertising and marketing materials are top of the line, with modern graphics, professional artwork and totally customizable and remember they are free to use.

I think this would be a wonderful way to invite tourists into our small businesses and maybe divert some attention away from the T-shirt shops. Buying from Indies is a national movement and I believe it meets the South Padre Island vision, if we can work together to take advantage of our uniqueness.

Of course, the other piece is to encourage independent businesses instead of focusing on bringing chain stores to the Island. Hopefully, as the development in the entertainment district at Amberjack's is brought online, this will be a consideration. I would really hate to see us trying to become another shopping mecca with Saks, Starbuck's, Bubba Gump's Shrimp, and Barnes and Noble, when we can have the same quality but provide a more unique experience by promoting and encouraging our own brand of specialty shops that better represent our own distinct community.

I have said it before, on the forum and on my blog, I believe that the first step in attracting repeat tourists is continuing to develop a community that we find it a joy to live and work in, and then to welcome our tourist friends by treating them as an important part of our local community. The trend for many travelers, is to find places where they feel part of the crowd and where there is a sense of local individuality - as opposed to the mega-resorts where everything is standard fare and it becomes difficult to determine whether one is in Maui or Hilton Head. I only hope we are wise enough to recognize this market instead of seeking those who prefer the "it's Monday this must be Maui" visitor who is seeking the nearest chain retailer for the perfect Coach handbag or Gucci watch.

What Comes Next?

When I think back to the beginning of the year and when construction started on Paragraphs, it seems like ages ago.  And, yet, when I try to quantify the progress I have made in preparations for opening the business it seems as if I haven't been doing anything.

There was a column in the American Bookseller's Association newsletter, recently, which printed the responses of several new bookstore owners to a question which appeared on the ABA's bookseller-to-bookseller forum.  Someone had asked, "If you could do it over again what would you have done differently in planning and opening a bookstore?" Now, why didn't I think to ask someone that?

Well, I'm not open, and I probably wouldn't actually change anything, since this silly dream of mine, just seemed to take on a life of its own, but if I were to admit there could have been an easier way, it would probably be not to do everything at once.

Building a new home, creates a whole set of questions to be answered, decisions to be made and expectations to meet.  I never dreamed of having the opportunity to build a home from the ground up and have it be just the way I wanted.  The problem then, becomes knowing what my idea of a dream home is and then adjusting to the reality of what I can afford.

Next, occupying this dream home of mine has meant consolidating and packing all those things that one just can't bear to part with - a duck my aunt gave me when I was born that has long since lost most of its stuffing - from two locations. And, the next issue is figuring how to get these precious possessions from New York and Colorado to Texas.  That, I think I will leave up to Griffy - it seems like a job he should be able to handle, and after all, what are husbands for.

Anyway, I have just realized that most of my efforts have been focused on the above challenges, and my timeline and bookstore opening checklist doesn't have many items crossed off, and I think I am woefully behind schedule.

Let me think, there is shelving to order, computer systems to evaluate, paperwork to complete for vendor accounts, opening inventory to choose, a website to design....

With that, I think  I'll end this and take the dogs for a walk.

Spare Change?

The business plan for Paragraphs has been a work in process but the time has come to commit it to paper and say enough, it is finished. Like nearly all human endeavors in life, opening a small business, requires money, and a consistent and reliable source of it.

It is now time for me and my brain child, Paragraphs, to find a local bank and establish a line of credit. I view the banking relationship as a partnership. Going forward with this attitude helps me overcome feeling like I am standing on the street corner brandishing a placard, constructed from a piece of cardboard torn off an old tomato box, on which is written in crayon or a borrowed felt pen "Spare Change?"

Once a partnership has been established I am sure the day to day communications with the formidable man behind the desk will become less formal and it will be simple to convince him what a grand idea it is to advance me some more money to buy some more books . But, before that can happen it will be necessary for me to convince some Mr. Banker that he wants to, indeed cannot afford to miss out on the opportunity, to loan me money and accept my deposits.

For the small business, the business plan is the cardboard sign of the street corner huckster. And finishing a plan for Paragraphs is my mission-see I even have the jargon down-for the week.

Boulevard or Blvd.?

I spent much of the afternoon returning e-mails to various publishers and vendors requesting catalogs and account applications. In the process, I have been compiling the information needed to complete all the paperwork necessary to open accounts with those companies I choose to order from. Of course, the first question is; Business Name. And, therein, lies a tale.

Way back in December and January - I know it's only been three or four months but it feels like years ago - I decided to start this blog to keep my family, friends, and the SPI community informed about the process involved in opening my dream bookstore. Before I could really start the blog, I had to have a name, and that is a story of its own. But, I finally made a decision; Paragraphs on Padre Boulevard. It can be shortened to Paragraphs, which I thought had a kind of community appeal - "Hey, I'll meet you at Paragraphs" - and the, on Padre Boulevard, tells everyone where the shop is located. So, that choice was made and the blog was launched.

Not long after, I received a very nice call from Jerry Wilson, suggesting that I reserve a domain for my perfect name and future website. He told me that in this new internet world there are folks that just look for names that someone may want, then these same people register the name and when the poor dope (that's me) gets ready to launch their web site, the domain name has been taken but can be purchased, for a price.

Now this sounded like reasonable advice, and I put registering ParagraphsonPadreBoulevard.com as a domain on my list of things to do. Well, we all know what happens to our To Do lists. By the time I got around to this task, a couple of weeks had gone by in classic Padre Style, and, you guessed it, ParagraphsonPadreBoulevard.com was not available. Now, there is no logical reason why this domain name would be used by anyone but me, unless the registrant planned to make me pay for the use of my own carefully chosen name.

My Italian temperament kicked in and I decided there was no way I would give these scavengers the satisfaction of inquiring about this domain name. I finally decided that it was easy enough to change Boulevard to the abbreviated form and everything would be great.

It was one of my first lessons in doing business in this virtual world. So there you have it - Our name will officially be Paragraphs on Padre Blvd. Now I'm ready to get the legal niceties out of the way - that is on the agenda for next week.

Seven Months and Counting.

Now the hard work begins. I just reviewed my "Opening a Bookstore" time line to remind me of what lies ahead. It is a little mind boggling!!

In some places I am ahead of schedule and some items are wrapped up in the construction of my own building. In other areas I need to get busy, which is hard to do down here in "manana" land.

Yesterday Griff left to return to New York, so I should have time to get busy. With our strange lifestyle, when we are together, I like to spend time with him and it's hard to concentrate on business plans and stuff.

My list for six to nine months includes things like:

1. Everything that needs to be done to finalize my business name
2. Update business plan
3. Obtain a SAN number from R.R. Bowker
4. Create credit reference sheet
5. Contact vendors on products, services and computer systems
6. Store design and layout
7. Finalize product categories and inventory percentage

It sounds so simple yet each item can be broken down into a million little pieces. I am glad I have the American Bookseller's Association as a resource. And, yes, like everything else there are consultants that specialize in opening independent bookstores. I have been using materials from Paz and Associates.

Right now I am waiting for a call from a graphic designer who specializes in product branding and marketing. It took me ages to finally decide on a name for the shop - and I want a logo that will stand out and serve several functions:

1. Identify the store
2. Reflect our mission
3. Place the shop as to location, eliminate the need to look for street numbers - this is part of the reason I chose a distinctive architectural style
4. Be easily reproduced in all media from low-quality newsprint to glossy ad pieces
5. Be equally distinctive in color or black and white

I believe that a name and brand are an important part of meeting my goals for Paragraphs. I want to be more than a retail store but also a gathering place, a destination, a community institution - and I want my logo to reflect all of the above.