Living Phrugal in Philadelphia

I am still amazed that in 2010 after being in an economic downturn for 10 quarters straight (3-month periods) , we are still calling this economic period we are facing, a recession. The standard newspaper definition of a recession is a decline in the Gross Domestic Product (GDP) for 2 consecutive quarters. (http://economics.about.com/cs/businesscycles/a/depressions.htm). As I look all over the internet, we are now trying to redefine the terminology for a depression. A depression, from my textbooks in 1995, is a prolonged period (lets say 3 quarters) of a recession. WE ARE IN AN ECONOMIC DEPRESSION. Median household income declined in 2008 and 2009. A number of factors contribute but the most important factor is that housing costs rose during the 1990's into 2000's that outpaced rises in income. What made it even worse is that women still earn 77% of a man's dollar especially in a country where over 33% of all children live in single mother households. (http://thebulletin.us/articles/2009/04/08/herb_denenberg/doc49dc278e8e4ff020049158.txt). To put it bluntly, women are bringing home less dollars and have to stretch those dollars for provide shelter, feed and clothe a family. Philadelphia has a very interesting problem, it is not the cost of buying a house that keeps family's out (right now it is credit). Historically, it is the combined rates of PGW and PECO that keep the American dream elusive in Philadelphia.

I will take a very small example, SEPTA, and show the how changes in income affect the middle class. SEPTA recently instituted a small fare increase (during a economic depression). This weekend, my son had to attend an event at Temple University and I decided to make it a family outing using SEPTA. As we got to the EL, I found out that now children over the age of 4 are faring paying adults. Before the hike increase, I would pay $1.00 for my oldest child. Now our 3.00 trip went to $8.00 (166% increase). As I have running around to do, we again travelled using SEPTA to the next destination (another $6.00 - since my son was not present), then travel back to get my son (finally, I was at a station to purchase tokens) so another $4.65. Then our last trip of the day to our home cost another $8.00. In total, it cost $26.65 to take my family to Temple University and back! A small example like this shows why it does not pay to be apart of the middle class. Even my usual first choice, PhillyCarShare, would have cost $48.00 (rates are at a premium on the weekends). Though SEPTA was the cheaper option, it is no longer an affordable option. Before the rate increase, I would have paid $12.00 for this trip, now I have just shelled out $26.65 (rate increase of 110%). One of the qualities that makes me special is the ability to overcome obstacles. In an economic depression, lack of capital is the obstacle.
Here are three workarounds overcome this obstacle:
1) Trader Joe's instead of the your neighborhood supermarket. I discovered Trader Joe's a few years ago we we decided to give up beef, chicken and pork (still eating fish). Trader Joe’s serves eating options as health conscious choices that also satisfy your wallet! The meats are a bit pricey but Philadelphian’s have the famous Reading Terminal Market as an alternative. On average I save 50 -90 dollars on our twice a month shopping trips.
2) PhillyCarShare (http://www.examiner.com/x-13481-Philadelphia-Business-Technology-Examiner~y2009m10d31-Phillycare-share--marketing-convenience-and-affordability) for short trips or a family of three or more. Price includes gas, insurance and only 25 cents a mile! Another perk for business - business accounts include fee membership as compared to Zipcar’s 75.00 membership fee option.
3) SEPTA Regional Rail - Did you know commuting around the city during off peak hours is Free for transpass holders? Take your subsidy back (city transit riders subsidize suburban regional rail riders WOW!) and fill up the comfortable Regional Rail trains.

This morning my oldest child, Sahar, told me that her brother was taking a bubble bath. I thought to myself “that is strange since we have no bubble makers”. To my surprise, Nasir, my 5 year-old had used mommy’s shampoo to make a bubble bath. Apparently, the ability to overcome obstacles has reached my next generation!

How are you overcoming obstacles today?

Connections: Networking Events for the week ending June 27th, 2010

Connections: Networking Events for the week ending June 27th, 2010

SEO (search engine optimization) starter kit for FREE

SEO (search engine optimization) starter kit for FREE

Connections: Networking events for the week ending May 22nd, 2010

Connections: Networking events for the week ending May 22nd, 2010

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Happy Fitness Month - May 2010

A quote from the book, "E Myth Revisited" by Michael Gerber - "Your business is a reflection of you". Those were powerful words to a overweight mom of three young children under the age of 5. My translation - if I want a better running business, I have to improve myself. Reading those words started me on my fitness journey in June of 2006. Even today, I still count days to when I reached my fitness goal and maintain a fitness routine so I can not return to my pre-fitness weight of 250 lbs.

As I was thinking about this month's theme, I researched on Google and found out that May is National Fitness Month. What a beautiful theme for the month of May! After the April showers, May is the "unofficial" beginning of Spring and the flowers begin to bloom. Philadelphia is a great city for runners - With the 20in24 annual race sponsored by the non-profit organization back on my feet, gener8tion run fundraiser for students run philly style, the ODDYSSEY half marathon, the ING distance run ( now Rock N Roll Philadelphia) in September, the Philadelphia marathon and the greatest race on the fastest course with 30,000 runners this year - the broad street run. These are a few of the many races that line the streets of Philadelphia and the largest urban park in the country- fairmount park and it's enchanting outdoor adventure called Valley Green.

I had successfully lost weight 3 times before but did not maintain the plan once I reached my goal. It was a partnership with SIS fitness that I learned how to lose weight and MAINTAIN my fitness goal. It was at sis fitness that I learned the importance of stretch which took me from a size 16 to a size 10. It is discipline and understanding The Slight Edge by Jeff Olsen that helps me keep the weight off 3 years later. African- American women have the highest rate of obesity in the nation, I share this story to inspire and motivate others to add a healthy balance fitness routine to their lifestyle. It is up to each of us to share our struggles and help each other that will eventually change this statistic. Join us as we celebrate this fitness Month by adding a fitness routine and setting a fitness goal to your lifestyle!

Networking 101 - Build your contact list with Facebook

Networking 101 - Build your contact list with Facebook

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How to Use Technology to complete your Financial Goody Bag

How to Use Technology to complete your Financial Goody Bag

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Financial Plan for your business

One of my biggest mistakes was creating a business with a financial plan that consisted of using my own money as working capital. 90% of all businesses fail because of issues with cash flow (not enough revenue coming in or too many expenses). My goal in creating the business was to love my work and be able to do it for the rest of my life. This year I will learn from my mistake by implementing something different! The greatest advantage of being a business owner is the ability to save money utilizing the tax code for business. This country was built and designed for business and the current tax code heavily favors business ownership which used to have a high cost of entry (rent, staff, overhead expenses). Now because of the network marketing industry, anyone and everyone can have access to the tax advantages of business ownership.

Lately, I have been consulting with clients who are expecting a refund from their 2009 tax return. The best advice from Christopher Chaplin, a fellow ULEC Financial Consultant and Michael Bing, Director of The Enterprise Center Capital Corporation is to save the refund (in the form of a savings account or money market account) to use as collateral for the SBA guaranteed Micro loan Program . The loan program has a maximum loan size of 35,000 which President Obama has proposed to increase the limit to 50,000. A lot of business owners do not apply for the program because of the reporting requirements. As you may already know, I am a multi-tasker (mom of three , business owner, network marketer, mentor, mentee) and I view this is an opportunity to complete the W/MBE certification requirements at the same time. Since most of the paperwork for the loan and certification is the same, we can create a financial goody bag!

The financial goody bag should have an executive summary of your business, a company profile (with testimonials and past clients), 3 years of tax returns (call 1-800-TAX-FORM to get past reported information from the IRS), a business privilege license, a certificate of organization from the state, a signature card from the business bank account and the articles of incorporation. Once this information is in the bag (pun intended!) your business is set to complete both the loan application and the state certification for Minority or Women Owned Business. My intention for the micro loan program is to create a working capital account for my business. Expenses that are incurred (like rent, salaries, cell phone, electric, etc) without regard to actually selling a product will be paid from this account. Then the revenue generated from the sales of goods and services will be used to service the debt and create a buffer fund for research and collateral for the next loan. This will remove my company from the feast or famine trap of small business to create the financial stability needed for long term success!

Happy Financial Planning!

Payment Options for Business - KISS (keep it simple) PayPal

Payment Options for Business - KISS (keep it simple) PayPal

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Business Networking Tips and Tricks

Christopher Davis, one of my Facebook friends, asked me to write an article about black business networking for the magazine, A Designers Portfolio. My first thought was there is no such thing as "Black Business" networking; There is just networking. As I sat down to write this article, I thought about how the black community networks differently than everybody else.
Let's first define networking. This is one of the many definitions of networking - a communication with and within a group. To me, networking is two or more people having a conversation about business. This simple definition allows networking to occur any time or any place. We can network one-on-one at a specified event, birthday party, club, client location, hospital, conference call, blogtalk radio(with the host and their guests) and even on-line (Read Social Media for Business)! Thanks Tai Goodwin, the interview on the Career Makeover Coach Radio show went very well and I made 12 new facebook friends! Everybody, and I mean EVERYBODY, has a network. When you meet someone, just imagine their 250 friends, relatives and business associates standing in front of you. The person in front of you represents their network. That is why I get so excited when I meet someone, I can grow my network by finding resources within to fulfill their need. Today (and everyday) was a great day for networking!

My first client of the day was Orchid Blue Hair Salon. My task was to improve their Facebook fan page. One of my suggestions was to not only show samples of the work but add the price so that clients who call already know they want your services (see below). Next week, I will show the salon how to create a unique URL for their fan page.

My second client was French Mobile Notary Services. I asked her to look into her network and find some referral partners (rehabs, nursing homes, hospitals) that could bring French mobile notary business. Specifically, I asked for businesses in her neighborhood. This is what network marketing calls memory jogging (taking inventory of your network) - just like that she thought of three referral partners to add to her prospect list.

My third unexpected client was a retired special education teacher with a curriculum for people coming from low-income homes and prisons. She needed a non-profit partner to launch her curriculum and apply for the PEPSI and GOOD.IS (http://www.refresheverything.com/) grant program. During our networking (conversation), I introduced her to Educatedsista organization and after our conversation she sent this message through Facebook "Nicole, I want to thank you once more for everything you've done for me. I also want to know if you sent me an invite to Orchid Blue Hair Salon because you noticed my bad hair do. :D I thought I couldn't afford to have it braided until you sent the link and I checked out the cost. I can do it! Thanks again!!"

Just two people sharing information IS networking. Now there is a difference in how black people network and everybody else. The events I attend at the Greater Philadelphia Chamber of Commerce start early in the morning and networking happens BEFORE the event. Most events I attend in Philadelphia for black business start late in the afternoon and the best networking happens after the event. Knowing these subtle differences allows my company to take advantage of the best of both worlds.

Now that I have shared these networking Tips and Tricks - HAVE A GREAT NETWORKING DAY!