May 23, 2009
comment #1, Janelle and comment #15, Khrys! Susie will contact both of you shortly for your shipping information!
Thanks for playing, everyone! Check back next week for another contest for more sponsor packs!!
May 18, 2009
The Great Cloth Diaper Hunt is in full swing! Are you having fun hunting? We sure hope so!
One thing we’ve heard over and over throughout the past few hunts is “How do I get a sponsor pack?” For those of you who don’t know what a sponsor pack even is, here’s the discription from othe Diaper Decisions website:
“Each Sponsor Pack contains sample sized products and gift certificates from at least 25 of our amazing sponsors and come packaged in a blue market sized tote bag. A few lucky recipients will even receive full sized items. Love that Diaper Hunt discount? Sponsor Packs are your way to grab some coupons and discounts that you can use AFTER the hunt is over! And who can say no to samples of some fabulous wares??
Sponsor Packs do not have a specific dollar value. Many sponsors have sent in samples and gift certificates to be included. Each Sponsor Pack is filled randomly with items and samples from the samples and items sent in.”
Sounds cool, right? Well, they have been selling out faster and faster each hunt. THIS hunt, we have a suprise. We have several to offer up as giveaways! This week, we have two to give away.
How can you get one, you ask? Simple. Answer this in the comment section - what is the best new product you have found on the hunt so far this May? Make sure you leave a way for us to contact you in your comment or we won’t be able to tell you you won!
By answering the question in the comments section, you get one entry to the giveaway. For more entries, you can do the following:
- •Blog about the hunt
- •Tweet about the hunt
- •Purchase something from a sponsor
If you earn an extra entry, leave an extra comment letting us know what you did (blog, tweet, buy) and a link to where you did it (blog, twitter page, store).
No comments made after 12:00am Friday May 22 will be entered in the drawing. That means the contest goes through Friday at midnight and the winner will be chosen using a random number generator based ONLY on the comments left before the deadline.
We will announce the winners here and contact them on Saturday! Good luck and Happy Hunting!
April 23, 2009
Please excuse our dust as we add our old blogging to the new blog. 
February 22, 2009
 Do you have a separate business bank account? Many small, home based business owners don’t see the need for a separate business bank account until they have experienced the frustrations that come from a joint family/business account. A separate bank account will save you record keeping and tax preparation headaches, provide instant credibility with the IRS and customers, and allow you to evaluate and redirect your business spending. Opening a business bank account should be one of the first steps you take as you start your business. But have no fear, if you have not taken this step, you can reap the benefit of opening a business bank account at any stage of your business journey.
Record Keeping: A separate business bank account will help facilitate your record keeping. If you make ALL of your business spending from your business bank account, you will not have to search through your personal bank account looking for your expenses. If you are like me, you may forget about your bookkeeping until the end of the month, and then you have a whole month’s worth of receipts to enter into your accounting program. If you have a month’s worth of family spending to hunt through, this could take a considerable amount of time. Maybe you are worse than I am. Maybe, you only do your bookkeeping at tax time. Think of all the time you can save if all of your business information is one place, and you don’t have to search through a year’s worth of bank statements! The same goes for PayPal accounts. Open a separate business PayPal account.
If you want to buy something for personal use, and all your money is in your business accounts (bank or PayPal), pay yourself with a quick and painless transfer first. Then your purchase will be made from your personal or family accounts. This works the other way too. If you want to buy something for your business with personal money, transfer it to your business account first. A separate business bank account can shave HOURS off of your record keeping time. I estimate we are saving at least 5 hours a month on record keeping!
Tax Preparation: A separate bank account can help make paying taxes easy and painless (ha!)! If you are not bogged down with personal transactions in your bank account you will be less likely to miss expenses and deductions. Finding all of your expenses means more money in your pocket! Everyone loves more money!
Additionally, a separate bank account leaves a type of a paper trail. Should you ever be audited, you will have documentation and proof that you actually spent the money in question for business items. This is really important as home based businesses filing a Schedule C are THREE times more likely to be audited than individuals not filing a Schedule C (Bailey, p.1).
Credibility: Having a separate bank account instantly provides your business with credibility. The IRS is more likely to treat you as a business instead of a hobby if you treat yourself as a business. If the IRS deems you a hobby, you will loose all those home office deductions! The IRS determines if you are a hobby or a business in part by the way you conduct your business. Do you run a professional business or a spare-bedroom hobby (Bell, sec. 4)?
A separate bank account also provides you with a professional appearance to your customers. Customers will be able to make money orders and checks out to your business instead of you personally. Your customers will feel more at ease upon paying when they know that you have taken the time to establish your business in a more permanent way. They will know that you are not a fly by night operation, taking their money today and possibly pulling up roots tomorrow.
Self-Evaluation: A separate bank account will allow you to easily chart trends in your spending. When you are armed with the knowledge of where your money is going, you can easily adjust your budget to allow for changing needs. You will also be able to quickly detect money wasting habits you may have developed and work on erasing them. You will then be able to redirect that money into fruitful endeavors. You can not effectively grow your business if you are not in control of your money. A separate business bank account is an invaluable business growth tool!
Sources:
Bell, Kay. “Turning hobby into business means tax breaks”. BankRate.com. 2/15/09 < http://www.bankrate.com/brm/itax/tips/20010403a.asp >.
Bailey, Eileen. “Audit Risks for Home Businesses”. Suite101.com. 2/15/09 < http://home-based-businesses.suite101.com/article.cfm/audit_risks_for_home_businesses >.
December 19, 2005
**Warning**
This article is representative of the personal experience and findings of the author and is intended only to bring awareness of an internet scam. Please be sure to verify all credit card information with your merchant and use caution and discretion before accepting or declining any business.
We’ve all no doubt received e-mails from unknown parties promising shares of large sums of money or other similar plots that are quite easy to identify as scams. However, there’s a smarter breed of scammer making their way through legitimate businesses these days. How do they do it? They pose as real customers.
Every business from diapers to sundries to electronics and more can be a target. So long as you have a product that can be physically delivered, you have what they want. From what I have found from my inquiries, the targets seem to be small to medium sized businesses.
The basis of the scam is that they request a quote to place an order with your company. Usually it’s a good size order; probably a little more than what you’d normally expect, and certainly enough to get excited about. They say it’s for a charity, orphanage, hospital, or some other well deserving good cause, which makes you feel happy to know that your products will be put to good use for those in need. The quote is requested by a Doctor, CEO, or other high ranking person. Perhaps this makes you drop your guard, just a little, so you entertain their request for a quote and anxiously await their response. A day or two later, you get the e-mail you’ve been waiting for; your quote has been accepted. But there’s a catch; they want the products ASAP. Your mind races trying to figure out how you could possibly deliver these products in a short period of time, and since they gave you their credit card information, you know they’re serious about following through with their. They also ask that these products be shipped air freight as there’s a dire need for them, so off to work you go. You process their credit card payment when the product ships and it’s a done deal, right? Wrong.
What you didn’t know was that the credit card didn’t belong to them and they weren’t who they said they were. It turns out the credit card was stolen, or obtained by dubious means and the credit card company, once they realize this, tells you, the vendor, that they want that money back. But, by now your products have shipped, and you’re out of pocket for your inventory and the expensive air freight or priority shipping charges.
How can you protect yourself? There are a number of things that have been identified as “red flags” to watch out for. These include:
• Shipments destined for Nigeria. There are no doubt many legitimate businesses in Nigeria, but as of late many, many scams have originated there. Even the credit card companies are advising against shipping anything there, and using extreme caution if you choose to do so.
• A customer who wishes to have the payment for their order split over 2 credit cards
• A customer who wants everything, including shipping paid up front, in one transaction on the two credit cards
• A first time customer
• Larger than normal orders
• Providing credit card information over “secure” e-mail
• Ordering multiples of the same item
• A customer who asks for rush, overnight or air freight shipping
• Shipping to an international location (not just Nigeria)
• The customer may provide the CVV2 code (the 3 digit security code on the back of the credit card); this does not mean it’s a legitimate card and transaction.
• A customer who refuses to pay in installments (i.e. Put down a deposit, or be billed for shipping separately once the charges are confirmed, etc.)
• A customer who refuses to pay with Pay Pal
To protect yourself, always make sure you get all of the credit card information including the customer’s name, phone number, the credit card number with expiry date, CVV2 code and the customer’s address (as it appears on their account statement), so you can verify all of this with the credit card company prior to processing the transaction. If the information they gave you does not match the information on file with the bank, you are very possibly dealing with a scam. Visa also advises that you can request a “code 10” authorization from one of their representatives.
Taking a couple of small steps to verify the payment information you have been given will take a little bit of your time and may cost a long distance call, but it may be some of the best time you’ve ever spent.
******************************************
Cheryl Yakem is the owner of an online cloth diaper boutique.
Stitch ‘n Stuff
November 3, 2005
By Melissa Coffey
Diaper Decisions
In a word - publicity! In two words - free publicity!!
A press release is a short piece of work that highlights the goings on of your business. It is submitted to the papers in your local area in hopes that someone might find some interest in it, and get it ready for print! A press release is not an advertisement and does not focus on your products, but rather on your company’s place in your community.
What has amazed me is the cost of having a press release written for you. Upon searching around on the internet, I have found places charging $250 just to write it for you! If you check out the Diaper Decisions store, you will find our prices much more suited to the work at home mom! Have to plug something that good!!
So you already have a press release in hand, or are getting ready to write one! What are your options? As with anything, the more work YOU do, the less money you spend. There are services online that will submit your press release in massive quantities to be picked up all over the country (and globe) but it can be costly. If you are concentrating on your local community, however, this really isn’t a good option for the WAHM. You need to focus locally. The first thing you need to do is find all the newspapers in your area within a certain mile radius, say 50 miles. Many of these newspapers will have websites, making contact information very easy to find! If there is no email address, you can decide to snail mail your release, or fax it. The easiest and fastest way to deliver your press release is to find an email address of the person most likely to be interested in your type of information. You will want to find the editor of the section most suited to your business, such as “Lifestyle” “Family” or even “Business.” If you cannot find anything like this, find the main editor and use this contact information. It’s always a good idea to read a few issues of the newspaper you are submitting to, to see if there is a section you feel your release would fit best in with.
When submitting your press release via email, there are a few things you should know. You will email directly to the editor, using their email in the “To” line of your email, and the title of your press release will be the “Subject.” Do not write “press release from such and such” in the subject header! The body of your email will be the actual body of your release, with your contact information directly below the actual release. If you are using a press release submission service, it is recommended that you do NOT use your email address in the actual contact information, as you will be subject to having your email harvesting for a fresh round of SPAM! You can however, use your web address, and if you are emailing the editor directly, they can simply reply should they need to contact you via email. Always end your press release submission with “# # # #” so they know they have received the whole email as you sent it! Simple enough right??
A press release is a snap shot of your business. Sometimes you might peak the interest of a reporter who will want to get the whole story! This is when you need a media kit! We will talk about the importance of being ready with this in a coming “Tips from the Trenches!”
By Jennifer Bonn
Celtic Cloths
It’s a wonderful feeling when your work at home sewing business starts to get busy. Finally the long hours, hard work, and smart marketing has paid off! But with success comes new concerns. Seemingly overnight, you are overwhelmed. Orders come in faster than you can fill them and you realize you need help.
There are a few different ways to approach this issue. The first is to simply limit the amount of orders you will accept. This business model works very well for many people, including some of the most popular brands on the market. It may seem contrary, but limiting the availability of your items can sometimes increase the demand for them. Raising your prices may also decrease the amount of orders you receive. This has the added benefit of increasing your profit at the same time that it decreases your workload.
Another option to consider is hiring help. Hiring help can be as simple as having a neighborhood teen watch your children so you can work uninterrupted. Although many moms feel this is counter to the reason they stay home, which is to spend more time with their children. You might consider hiring that same person to assist with portions of your business that don’t require technical skills. Things such as cutting fabric, addressing packages, and trimming threads are all easy projects for a teen.
If you decide to hire someone to help you with sewing, there are many more considerations. You will be required to comply with Department of Labor employment laws and IRS tax laws. It is your responsibility to withhold taxes and pay employer taxes for your employees. You can also hire contractors to perform this role, but it is important to understand the difference between an employee and a contractor. A good guide can be found here http://www.ftmn.com/Employee.html While it may seem simplest to have an informal contractor relationship with a friend or neighbor, it is extremely important that you protect yourself. Relationships can go bad, and if you are reported to the labor board or the IRS for violating employment or tax laws it can be costly to resolve. This website- http://www.dol.gov/elaws/firststep/ has in interactive tool to help you decide which laws apply to you. If you have any questions about whether the person you’ve selected is a contractor or an employee, find a good tax advisor familiar with employment laws. Your local small business association is also a good source of free or low cost advice on this topic.
Hiring a contractor can be confusing and difficult if you are unfamiliar with the sewing industry. Small contractors who work out of their home can be very useful to a small business that just needs occasional help when overloaded. Check your phone book, or place an ad in the local paper. When interviewing prospects, bring with you a copy of your pattern and a sample of your items. Don’t worry that they will “steal” your design or ideas. These people are sewing contractors for other people because they choose this work. They don’t have any interest in stealing your idea. This would mean they would have to find a way to sell the item, market it, ship it, and do many other things that they don’t want to do. If they did, they would already be doing it instead of doing contract sewing.
A good contractor should be able to give you a price quote for their labor just by looking at your item. If they seem unsure about this, or their price is significantly higher or lower than others you’ve talked to it’s likely they are not very experienced. This could cause problems later when they realize they quoted you too low or underestimated the amount of time they will need to complete a project. The result can be shoddy work, missed deadlines, or unexpected cost increases. Also be wary of contractors who don’t return your calls or seem too busy to answer your questions. You will likely need to talk to this person on an almost daily basis at first and if you can’t get them on the phone then you won’t get your items back on time.
But perhaps your business has grown beyond what a home seamstress can help you with. Congratulations! You’ve made some smart decisions to get to this point. This is a good time to reevaluate your business plan if you haven’t done so already. Hiring a manufacturer will be a major investment, and if you aren’t prepared properly it can be a financial disaster. Be sure you are familiar with the costs of your goods, and don’t forget to figure in 5% for waste. Ask a professional to review your business plan if you are unsure.
Finding a manufacturer is much like finding a contractor. Check your phone book, or ask your suppliers for good recommendations. Be sure to visit any facility, and take a good look around. Talk to the workers if possible. You don’t need to interview workers on their sewing skills, but it is important to know that they are happy and well treated. Unhappy workers produce inferior quality products, and can quit unexpectedly; leaving you with a delivery date you can no longer meet. The facility should be clean and well organized. The cutting tables should be very long, at least 20 feet to reduce waste. The equipment can be old, but should appear in good working order. Observe any safety hazards, and don’t be afraid to ask your contact person about them. It may not seem important, but these things are indications of what kind of company you are hiring. Well managed facilities generally produce better quality work with fewer seconds and waste.
A good contact person is a must. This person should return your calls or emails in a timely manner, and answer your questions openly and honestly. Often they can assist you in finding sources for fabric and notions you may need. They may be unfamiliar with your particular product, but that does not mean they are not a good choice. Be sure to go over your item with this person carefully and verify they have the equipment needed or are willing to procure it. Ultimately, you should trust this person and feel comfortable with them. You will work closely with them, and talk to them often. They should be able knowledgeable in their field, and be able to help you understand the process and their needs and expectations of you.
Finally, be sure that you talk to several different companies or contractors. You will learn a lot in the interviewing process, and quickly realize what is important to both you and your business. A good contractor or manufacturer is worth their weight in gold to your growing business. A bad one can be the end of your business.
Sources
http://www.business.gov/
http://www.irs.gov/businesses/small/index.html
http://www.sba.gov/
Fasanella, C (1998). The Entrepreneur’s Guide to Sewn Product Manufacturing. Apparel Technical Svcs
October 20, 2005
By Sarah Reid
Wallypop
What is business continuity planning? Simply put, it’s knowing how your business will be run in the event of an unexpected interruption. For example, what would happen to your business if you needed to be placed on bed rest? If you had to leave town unexpectedly? What if your house (or other business location) is destroyed by a tornado or earthquake? Or your area suffers a multi-day power outage?
Nobody likes to think about these things happening to them, but the fact is that a business interruption of some sort is likely to occur at some point. And, particularly for the WAHM, being prepared is the best way to overcome these types of events.
Developing a business continuity plan needn’t be a lengthy, complicated process. This article will walk you through the basics, and there’s a short example at the end to get you started.
1) Assume a multi-day tragedy for your business that would involve you being unable to access your office or work areas for several days. Make a list of each of the tasks you would need to be able to complete. This list might include things such as sending a note to your mailing list (or posting at your regular message boards) that you will be out of contact for a few days, finding a way to access orders and manage your inventory, or keeping track of orders you’ve placed with your suppliers. Your list likely wouldn’t include everyday tasks such as responding to customer inquiries or actually filling orders, as these are tasks that could wait for a day or two.
2) Now assume a situation that would keep you away from your office for over a week, and list tasks you’d need to complete in that case. For example, this list would probably include filling customer orders and responding to inquiries.
3) Starting with your first list, then moving to your second, start to write out (or even just think through, if you want a more casual plan) how you would accomplish the tasks. If you’re writing them out, write them out assuming that you would need to have someone else perform the task for you, perhaps even without your assistance. Include details such as website URLs, usernames and passwords, and file locations. Print off each of these documents and place them in a file folder labeled “Business Continuity.”
4) Write up a business calendar. This is a good idea, anyway. List out every periodical task you must complete for your business. For example, you must file income taxes each year (or each quarter). You must pay sales taxes regularly. Perhaps you have to file a business information statement with your state. List the due dates of these filings and payments (and any other recurring task) and keep the document with the rest of your Business Continuity files.
5) Print hard copies of key documents for your Business Continuity file. In my file, I keep a list of usernames and passwords for all of my online accounts (in case I am unable to access a computer and need to have someone else send an email, access an online account, or complete other password-protected tasks for me). I also keep contact information for key business contacts, such as each of my wholesale customers. Last, my file contains a big note that says “For help, call or IM the following people” and gives the names of 2-3 fellow WAHMs who I know would be happy to help out in a pinch.
6) Place your Business Continuity file in a safe, accessible location. My file is in my family’s safe, and I keep a backup copy at my mom’s house. Be sure to review your files every 3-6 months to ensure that everything stays up to date. And, let your family members and perhaps a sympathetic fellow WAHM know the locations of these documents and that they should access them if you are indisposed.
7) If you don’t have time right now to go through this formal process, at least discuss the topic with your spouse or partner over dinner some night. Go over the things you’d need him or her to do in the event of an emergency. For example, my husband knows that if I ever get stuck away from home for a day or two, he needs to access my email and let anyone who’s placed an order know that it will be delayed by a day or two. He also knows where to find the password for my email program.
 Last, practice good business practices to help avoid problems in emergency situations. File your quarterly tax returns as early as you can, rather than waiting until the day they’re due. That way, if illness strikes the day before a payment’s due, you don’t have to worry about how you’re going to complete your filing. Try not to get behind on orders, so if you’re out of touch for a few days, there’s a smaller pile to come back to. And always practice good customer communication, so if you suddenly go out of touch for a few days, people will know that you’re experiencing an unusual situation and will understand about any delays.
Sample documents:
If I couldn’t access my office for 2 days, I’d need to:
- Let customers and others know I’m inaccessible
- Keep track of incoming orders
- Complete any filings or payments that are due
If I couldn’t access my office for over a week, I’d need to:
- Complete each of the above tasks
- Fill and ship incoming orders
- Manage my inventory
- If at all possible, find a way to sew custom orders and keep instock store stocked. If not possible, update webpage to note that custom orders are suspended until further notice.
Then a procedure document for updating the webpage with a note that I’m inaccessible and custom orders are suspended would read:
1) Log on to website control panel (give URL, username, and password)
2) Click on Files icon
3) Locate Index file and open it
4) Add a note here that I am inaccessible, etc.
5) Save and update the file by clicking “Save.”
6) Locate Custom file and open it
7) Add a note here that custom orders are being suspended until further notice.
Save and update the file by clicking “Save.”
The document is not needlessly complex, but it does give all of the information that a relative would need to complete the task without my involvement. Now, if I’m involved in a car accident and am in the ICU, I doubt that my husband’s first thought would be “gosh, I better update the website to reflect that Sarah’s not available right now.” However, at some point, he would be able to locate the documents and complete any necessary tasks without me there to help.
October 11, 2005
By Melissa Coffey
Diaper Decisions
In our last Tips from the Trenches, we talked about how important first impressions are to your business. Now we will talk about professional business promotion, the second impression you will leave on potential customers.
There are now many options in business promotion. Some cost a little, some cost a lot and sometimes you will run across something offered for free! Free is good right? Not necessarily. You can get free generic looking business cards sent to your home and it may seem like a good deal until you flip it over and see the printer’s advertising on the back. What this says about your business is that you are either too cheap to promote yourself with a nice looking business card, or worse, that your business is not even bringing in enough money to afford a small printing of your card. (You can even have a business card template designed at Diaper Decisions and print them at home!)
Another option we have run across recently is a free brochure you can “customize” with your business information. Diaper Decisions created the original customized brochure for the very reason that we believe your business should stand alone in its promotion. The free brochure, correctly labeled generic, is priced right, but what will it do for your business? Your business name will be displayed, but it’s going to compete with another business wanting the attention of the consumer… The business offering the “free brochure.” In this instance, you will be advertising for a place that is essentially a warehouse for other WAHMs to promote their business. You have just caused yourself to greatly reduce the chances of making a sale from this promotion. You have spent the money on paper and ink and the time on folding and preparing your presentation, but who are you really promoting? Sadly enough, it is not yourself. This is a marketing gimmick that some use to promote themselves at the expense of other WAHMs. It is not just a “good will gesture” to help your business. Something free is very rarely without cost.
At Diaper Decisions, we believe in every business’ ability to be successful. If you have the desire and willingness to work hard, you CAN do it! You do not need cheap advertising, you do not need to jump on the nearest bandwagon, and you do not need to push your business into the background while promoting your products! Cooperative promotion is great! But YOU should call the shots as to who you will promote while promoting yourself! If you have the goodwill to participate in promoting other WAHMS (that YOU pick) wonderful! But you can also choose to stand alone in your business promotion. As a business owner, you should say who, what, when, where and why you will lend your voice to promoting someone other than yourself.
The WAHM world is great! There are so many wonderful parents out there, with extraordinary products and customer service. This is the majority of who you will find in your WAHM dealings. But beware the opportunists that will look for any opportunity to make themselves look good at your expense. Count the costs of free, cheap and easy. It’s rarely worth it!
September 19, 2005
By Melissa Coffey
Diaper Decisions
Recently I read a “marketing tip” that I found very interesting. The tipper advised putting your business cards in all books related to parenting at the library, or bookstores. That sounds great! However, one instruction was missing: Remember to ask the librarian or book store owner if they will let you do this. Common sense would tell you the answer might be no. So if you find out the answer is no, that they would prefer you not do this, how do you proceed?
Respect is a two-way street. If you want your business to receive recognition and respect, it is best to think through your actions and to really pay attention to what reputation you are giving your business. If you are aiming to be the cloth diaper “go to person” in your community, you need these people on your good side. You do not want them irritated that you have disregarded proper respect to promote your business.
The library especially is an important part of every community and if you really want to promote yourself here, there are many other ways to do so while showing some respect. You can offer free bookmarks at the counter. You can compliment the librarian on the community bulletin board and ask how to display your information. You can ask about the community rooms available and ask if there are currently any natural or parenting type events scheduled, leading into describing your business. Find the free publications offered at the library and check out adverting opportunities.
First impressions are so important. While it may be tempting to follow advice that seems cheap and easy, you run the risk of being associated with unethical and rude behavior. That is not good for any business and it’s best to avoid these types of marketing techniques. Your business is worth it. You are set up to provide a great service to your community! Don’t lurk in the shadows, thinking of passive ways to promote yourself. Smile and tell the world!
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