From Small Biz Daily, there’s a nice article about women entrepreneurs bringing more jobs for the economy.  Here’s a snippet.

Writing on ForbesWoman.com, she notes, data from the Center for Women’s Business Ownership show that the 8 million women-owned businesses in the U.S. account for more than 23 million jobs—16 percent of all U.S. employment. But only one in five women-owned firms has revenues over $1 million. “If women entrepreneurs in the U.S. started with the same capital as men entrepreneurs, for instance, they would add a whopping 6 million jobs to the economy within five years–2 million of those in the first year alone, according to Babson College research,” Pinelli writes.

Pinelli believes the key to helping women business owners create jobs is helping them in three key areas: access to capital, business networks to help them scale their businesses, and global supply networks.

Brokelyn interviews the founder of LearnVest Alexa Von Tobel. I am a fan of LearnVest which is a personal finance site for women. Alexa talks about how she raised a million dollars for her startup. Congrats! BTW, I am also a fan of Brokelyn blog whose founder, Faye Penn, will be joining me on my SXSWi panel, The Broke Diaries.

Thinking of joining forces?  Nina Kaufman, of “Ask the Business Lawyer,” has developed a workshop on business partnerships and is holding a preview teleseminar tomorrow, Tuesday, October 6th at 800 PM.Visit Entrepreneurial Prenup for information and registration.

Are you looking for a change from your 9-5? Are you debating about following your passion? Thinking about taking that leap into entrepreneurship? Last week I came across a very interesting video on this topic. The video was created by Caren Magill, the Founder & Chief Media Strategist of Digital Pink Media. Digital Pink is a website portal and consultancy dedicated to helping women entrepreneurs build brands and promote their small business online using affordable, repeatable strategies.

Here is what I learned: when starting out here are 4 tips you should keep in mind.

1. Consider what you’re good at and what you enjoy doing. If you don’t enjoy being in the kitchen cooking, then becoming a top chef might not be the right fit for you. Figure out another way to work your passion.

2. Brainstorm without restrictions. Don’t eliminate any ideas in the beginning. Your best ideas will stick while the other will fall to the side.

3. Explore your ideas exhaustively. Research! Research! Research! Talk to people already in that profession. Find out as much as you can: the good, the bad, and the ugly.

4. Surround yourself with like-minded people. Network both OFFLINE and ONLINE.

So don’t forget to learn about entrepreneurship. You can view the video here on the Digital Pink Media website.

Wednesday night I attended The Runway Project’s brainstorming session that brought together a group of independent workers for a discussion about how to determine your prices. As a person who is just starting out on my own this is the biggest challenge I am dealing with.

Here is what I learn:

• You must have a vision of where you want to go and how you going to get there.
• Know what your cost of living is. Also make sure you have at least 6-8 of living expenses to live off just in case you hit a dry spell. Knowing how much you need on a month-to-month basis would allow you to assess what your minimum rate should be.
• Be honest about what you are good at and what you can accomplish in the allocated time.
• Don’t devalue your own services. Giving away your services pass the point the point of building your portfolio will bring down you value. Also doing work for next to nothing will not only hurt your bottom line but your business won’t be able to survive.
• Think about other things that you can do in between projects that can bring in additional income.
• When it comes to discussing price with a client, allow them to tell you what they can afford or what they are expecting to pay for your services. Your rates shouldn’t be the first thing discussed.
• Doing a job for free? Presents client with an invoices with the balance of zero, but include the lines items to show the worth of your services.

Cool Quotes:

“A friend of mine applies the ‘bitch’ factor.” When a client is a particular pain, she pads the numbers in anticipation of fickleness.

Regarding potential clients who lowball you: “There has to be a point where you just say f*** you.”

Brainstorm: Factors to Consider When Determining Your Price
The Runway Project
Twitter: @runwayproject

This event was hosted by the good folks of New Work City, a community coworking space in NYC. For more info please check out or their twitter page at @nwc.

Related Posts:
Stepping Out on My Own: The Chronicles of a First-Time Entrepreneur

Monday night I attended Collective-E’s panel on National Food Brands. As a food blogger for Cupcakes Take The Cake and a small business person, I found the information to be very valuable.

The panelists were great: Beth Schoenfeldt of Collective-E was the moderator. Wendy Friedmann from Heavenly Souffle,  Drew from Geoff and Drew’s  and Kim Yorio of YC Media.

In the audience were some sweet makers as well. Regina  and her sister from Gourmetibles, Jill from Fretzels and Laura from Sweet Muse.  They brought their treats for everyone to sample.

Takeaways: “Be passionate” about your business. Start slow.  Keep your overhead down to a shoestring budget when first starting out. Find the right market for your product.  Be flexible,  since things change.  Be authentic.

Drew said something that also resonated with me. “There are times  when an idea can be too early”. I think some of the ideas I had three or four years ago may work better now.

Today is the first day of Entrepreneur Week.  There are some fun, informative and networking events going on, so check out the NYCENT site and sign up for events. Many of the events are FREE.

Tuesday, The Downtown Women’s Club is having an event in Brooklyn.  The topic of this month’s meeting is “What’s New About Networking in 2009″

1. Clicks & Mix Networking:  Why you can’t ignore Twitter, Facebook and LinkedIn
2. The new rule of networking:  Sharing, not hoarding information
3. Mastering the personal/professional blend
4. 360 degree networking
5. How to have fun while networking

Purchase tickets  today which are $16/DWC+ members and $22/general public.

Cupcakes Take The Cake is hosting a shopping night this Thursday, April 23, at Re/Dress in Brooklyn.

Shannon Manning is a writer, producer, and performer. She has written and produced for TV news and weather, the Chicago Bulls, LifetimeTV, Fuse, Kraft, and more. She helps manage the Charles Mingus nonprofit organization and touring bands, is webmaster for Pathetic Geek Stories, published and edited Pipe Up! Magazine, was the Corporate Cash Manager for a major multinational newspaper and internet company, and recently helped create a web and stage show with Lizz Winstead, co-creator of The Daily Show. She has taught, directed, and performed improv at Second City, IO, Upright Citizens Brigade, Magnet Theater (which she also co-founded), and Drinkytown, and has performed on Late Night with Conan O’Brien.

After a recent stint as New Media Deputy for Obama for America, she returned to developing her artist collective/production company Sparkle Television, which launched a music/comedy/art webshow called Beauty Love Truth in April.

 1.  How did you get started doing what you do?

I’ve always been a DIY-type - this is my fifth company. First was a computer/video animation company with my mom, then two companies with my sister - one creating weather graphics for TV, and another as one of Chicago’s first web design companies. I came to New York and, ten years after falling in love with improv from studying with Del Close in Chicago, co-founded the improv school and venue Magnet Theater.

I currently freelance on TV projects; producing, directing, shooting, and editing webshows and pilots; sometimes acting; and, trying to put all these experiences into Sparkle Television to produce comedy, music, drama, and art for art’s sake! It’s a way to work with people I admire and with whom I share creative goals.

2.  What is your biggest joy and what is your biggest headache?

My favorite thing in the world is to see someone develop or build on an idea of mine, or to watch someone that I’ve taught, promoted, or worked with find success. My own accomplishments always leave me immediately thinking, “Ok, cool, but what’s next?” That’s the freelance/entrepreneur default mode/psychosis…always hatching the next plan, looking to the next project.

Most of my projects rely on collaboration. That’s a joy and also a challenge. Working with other people inspires me, and makes me accountable for my time, ideas, and integrity.  Working with talented people makes me step up! I also like to take the reins on a set or project, and create a beautiful, efficient machine with a happy team that feels proud of their work and the final product.  Creative people often thrive with structure. When they are in a safe and trusting environment, they can just focus on their work.  Creating that environment is always a challenge.

The biggest challenge in collaborative efforts is to clearly define your role, so your role does not get defined for you, and you don’t get stretched too thin! I am great at stepping into multiple roles, and welcome input and change; but then I have to step back and make sure I’m on my right path and make sure communication stays open and honest. And if it’s not working, and obstacles seem insurmountable, I have learned not to spend too much time trying to fix it. It doesn’t have to be dramatic (the band is breaking up!), it’s just the nature of collaboration.  There’s always another idea, project, opportunity, even if I have to create it myself.

 3.  Where do you spend most of your time online (business-wise)?

I try to focus on spending time creating rather than consuming online. I like to use productivity tools like Bubble Timer to keep me focused.  43 Folders is also a great productivity-meets-creativity blog.  I use social networking to see what friends are up to performance-wise. Mediabistro, Freelancer’s Union, and LinkedIn are great sites and communities for freelance issues, professional development, political activism, and job postings. I also like Cynopsis - it’s fun to gawk at the money that’s getting tossed around to executives in the latest gold rush to monetize the web and creativity.

My latest trick is to work on my own priorities before even checking email, and to avoid being immediately responsive to every email or phone call. It was hard at first, but this way I get to choose which things get done first instead of technology doing the prioritizing for me.

4.  What is the one thing, person, service or resource you can’t do without?

The internet on/off button.  There’s so much information, entertainment and interaction available, I have to be vigilant and step away. I need to recharge with real face-to-face community and activity. I need to go to live music, theater, comedy, and political meetings, to remind me why I live in New York!  I need to get my news from professionally edited newspapers and magazines without user comments, and I need to write with pen on normal paper.

But then I have to turn the internet back on because it is a constant reminder that there are no gatekeepers anymore; that there is nothing to prevent anyone and everyone from creating and publishing and, yes, even monetizing your own creativity. You don’t need a stage, a camera, or any technical abilities, as long as you have good ideas and friends who believe in them and also in you.

5.  What do you wish someone had told you the day you started your business?

“I must Create a System, or be enslav’d by another Man’s. I will not Reason & Compare; my business is to Create.” -William Blake

I love that quote because “reason” and “compare” do not usually get a bad rap in business and management, but they are great hindrances to creativity.  So is relying on old systems or paths, especially when they are broken or littered with unnecessary obstacles.  On a practical level, I discovered it is helpful to work in two different roles: one the Big Picture, thinking, planning boss, the other the efficient loyal employee. The boss writes everything down, from top level goals, objectives, processes and priorities, to clear tasks for the employee. If I’m feeling inspired, I can just write or plan or jot down my crazy ideas without judging the practicality because I know that my employee will try to make it work (she’s great!) And if I’m not feeling inspired or having doubts, I can just tick things off the list and trust that the boss knows what she’s doing (she’s great!) It took a while to learn that when you work for yourself you have to have discipline, but when you are creative worker, you also have to learn to listen to yourself so you’re not forcing yourself to work counter-productively.  That goes for the real people I work with, too.  Always trust them, always communicate, always treat them like poets and geniuses (so said Del Close); then, together you can overcome any obstacle and create whatever system is needed.

Originally from Providence, Rhode Island, Shayna Kulik began her career working as a textile designer for Longina Phillips Design Studio in Sydney, Australia.  Relocating to New York in 2003, Kulik joined the design team at ES Originals.  She spent two years with the mass-market shoe manufacturer, conceptualizing a wide range of kicks for corporate accounts such as Target, Rampage, and OshKosh. Kulik went on to Playboy Enterprises where she worked as a product designer developing their accessories and menswear lines as well as managing brand control with the company’s global licensees.

Kulik now brings that unique perspective to clients including Bumble and Bumble, Elizabeth Arden, Marc Ecko, MTV and Panasonic through her design and trend forecasting studio, Pixel Rumor located in New York’s East Village.   Kulik is also founder and editor of Pattern Pulp, a web forum devoted to print and pattern design.

1.  How did you get started doing what you do?

Internships in New York, DC and Sydney laid the foundation for my interest in the commercial art world, and led to my first paying gig as a shoe designer.  Following a few more in-house roles, including a stint as a product designer for Playboy Enterprises, I founded Pixel Rumor.   Most recently I’ve started Pattern Pulp, a weblog that covers design, marketing and creative trends in the print and pattern worlds.

2.  What is your biggest joy and what is your biggest headache?

Biggest Joy:  Trend assignments that incorporate travel

Biggest Headache:  Tax season

 3.  Where do you spend most of your time online (business-wise)?

I hop around a lot, but the frequent reel includes: news sites like New York Times, Wall Street Journal; design and trend sites such as NOTCOT, Cool Hunting, QBN, ffffound; media professional sites like MediaPost and mediabistro; and any random link that gets forwarded to me throughout the day.

 4.  What is the one thing, person, service or resource you can’t do without?

  It’s a three-way tie between my camera, Wacom tablet, and passport

 5.  What do you wish someone had told you the day you started your business?

 Trust your gut with people, projects and goals - it will rarely fail you.

April 15 is less than a month away. Don’t panic! If you are self-employed, have a sole proprietor LLC , then you will be filing a 1040 with Schedule C.  The Schedule C shows the Profit or Loss from Business.  The income is the easy part,  but the tricky part is knowing how to classify expenses.  First look at your Chart of Accounts. The Chart of Accounts is to a business’ financial picture as a table of contents is to a book. Use your Charts of Accounts as a guide and it will prevent errors in recording your income and expenses. I recommend printing a blank copy of a 1040 form with the Schedule C and then printing out a copy of your current Chart of Accounts. Then you can “map” accounts, which means to assign the proper deductible expenses that will properly correspond to your business’ Chart of Accounts.  If you are not using Quickbooks or have no idea what a Chart of Accounts is, then I suggest you sign up for a free Outright account. You can use Outright to figure out your taxable income taking the income and expenses for 2008 that you already have calculated on an Excel spreadsheet.

Outright enlisted the help of two bookkeepers Jeanné Neubelt of BookWorks Total Bookkeeping Services and Cheryl Hinkson of For Your Business Bookkeeping Services to compile a list of nine “hardest to classify” business deductions.

1. Business cards
When you first hang out your shingle, you might head down to the local printer to get some business cards made up.  But what kind of expense is that?

Which do I choose: Supplies, Legal & Professional Services or Advertising?
Recommendation: Advertising

As a self-employed individual, odds are your business cards will be given out to prospective customers in an effort to generate revenue.  For this reason, the most appropriate category would be Advertising.

2. Website Hosting
You pay a monthly hosting fee to firms like Host My Site. Does that go under equipment rental?  Office expense?

Which do I choose: Advertising, Utilities, Equipment Rental or Office expense?
Recommendation: Advertising or Utilities

According to Jeanné, this expense is similar to business cards in that it is likely used to help attract customers and drive revenue.  However, Cheryl sees it a bit differently: “Web Hosting is a service and with a detailed P&L you would list it as Service Provider but on a simple P&L you will list it as a Utility.”

3. Stock photos/icons (and other digital media)
Which do I choose: Cost of Goods Sold, Office Expense, Supplies, Legal & Professional Services?

Recommendation: Cost of Goods Sold, Advertising, or Supplies

In this case, it depends on how the items are used.  As Cheryl explains, “A web designer or graphic company that has signed up for unlimited access to stock photos available online would expense the monthly or quarterly fee to supplies for Cost of Goods Sold.”  However, in the case where the images are being used for your business web site, “you could easily classify the expense as Advertising or Supplies”, says Jeanné.

4.Getting a DBA/Fictitious Name
You’re now in business for yourself, so you get a super cool name to use.  How do you treat the costs of doing that?

Which do I choose: Taxes & Licenses or Legal & Professional Services?
Recommendation: Both, unless you file everything yourself

According to Cheryl: “Formation Fees should be broken into two categories:  The portion of the fee that is paid to the state and the annual renewal fee should be recorded as taxes & licenses and the portion of the fee that is for professional services provided should be classified as legal & professional fees if you contracted a licensed professional to complete your formation documents.”

5. Payments to web designers (and other independent contractors)
How do you treat the graphic designer who created the look and feel for your web site?

Which do I choose: Legal & Professional Services or Contract Labor?
Recommendation: Contract Labor

“Professional services is generally used only for legal, accounting/tax/payroll and business consultancy,” says Jeanné.  Better to use Contract Labor – and “be sure to get a completed W-9 so you can send 1099s where appropriate.”

6. Desktop Software
You fork over the money to purchase the latest version of Adobe’s CS4.

Which do I choose: Supplies?  Office Expense?  Depreciation/Section 179?
Recommendation: Depreciation/Section 179

As Cheryl states, “Software Purchases are a depreciable item unless the program has a useful life of less than one year. In most cases you would not replace your software each year so it should be listed as a depreciable item.”

7.Web-based software subscriptions
Being the fan of web-based software that you are, you have monthly subscriptions to FreshBooks  for your invoicing.  But where do those expenses go?

Which do I choose:  Utilities, Office Expense, or Taxes & Licenses?
Recommendation: Utilities or Office Expense

Here we get different opinions.  For Cheryl, “In a simple set of books I would classify payments to a Web Services Provider to utilities as you are utilizing their program.”  However, Jeanné recommends placing them under Office Expense.

8. Postage
There are still times when you have to send this by snail mail.  And that does in fact cost money.

Which do I choose:  Supplies, Office Expense, Other Expense?
Recommendation: Office Expense if small, Other Expenses if significant

According to Jeanné, you would place the costs under “Office Expense if it is a few rolls of stamps or the postage meter for letters.”  However, for large shipping costs, place them under Other Expenses.

9.Coffee machine, coffee and filters
You need your caffeine, we know.  But what kind of deduction is that?

Which do I choose: Supplies or Office Expense?
Recommendation:  Office Expense

“Office Supplies are physical widgets and stuff you use up (paper clips, pens, sticky notes, toner, legal pads, thumb drives, computer supplies, planners and calendars, etc),” says Jeanné. “Office expense might be more substantial or service related  (janitorial supplies, cleaning service, coffee supplier, water cooler, etc.)”

Bonus expenses: Using the “other expenses” category

The following are very common self-employed expenses that should be placed under the “other expenses” category:

* Bank/ATM fees
* Survey and research costs
* Professional “How To” Books (web design, programming, etc.)