Interview With Erica of Erica.Biz

I figured that since this will be the last interview for a few weeks I would have to find a really amazing person to interview. After searching far and wide (on the internet) I found the perfect person to interview, Erica Douglass of Erica.biz. No point to even try introducing Erica because she does a great job of describing herself in the interview:

Me: Your story is really inspirational and interesting. What motivated you to start a website where you share your tips?

Erica: I’ve been writing a blog for a long time; I started with a LiveJournal nearly 12 years ago. I have always enjoyed writing. After I sold my business, I realized people really wanted to hear my story, and also became aware that blogging could be a huge path to success for me. So, in December 2007, I bought the domain name erica.biz, moved my blog over, and started writing for other people instead of just myself and my friends!

Me: What are your greatest accomplishments?

Erica: Big question! Stating the obvious, selling my business for over $1 million at age 26 was unquestionably awesome. But there have been many other accomplishments I am proud of. I love public speaking and getting up on stage, and I have had the opportunity to speak in front of hundreds of people about business success. Recently, someone recognized me on the street from my blog, which was another great milestone. Finally, going from ~70 subscribers in late 2007 on my blog to over 2600 today is another thing I am quite proud of.

Me: If you had to start a business all over again from scratch how would you do it?

Erica: I am kind of doing this now — launching my new business, Inspiring Innovators, and blogging about the launch process. I would do what I am doing now (a membership site) instead of picking web hosting. Web hosting is a brutal industry. Membership sites have the perks of web hosting — a monthly fee — without the 24×7 support, pagers, and network outages.

Me: Any tips for starting a new business during a recession?

Erica: Great question. I wrote two posts about this: How To Choose A Business and Three Business Ideas That Will Thrive In A Recession. Since this is a hot topic, I will have many more posts about it, as well. Definitely subscribe to erica.biz and join my community to find out more.

Me: What advice would you like to give to current college students?

Erica:Know what you want out of life. If you want to own a business, there is no reason you have to graduate college to do that. In fact, I believe the best time to take a risk is when you are young. I started my business when I was 20. But then again, I knew even in high school that I would not likely complete college. I am happy with my decision to drop out, but I support others who think that graduating is the best choice for them.

It’s really all about what YOU want, not what your family/friends think are right. My mom told me when I dropped out (yelled, actually) “This is the worst decision you have ever made!” Years later, even before I sold my business, she broke down and said she was amazed by my courage to do what I thought was right instead of what other people thought would be best. Dropping out taught me to have courage and faith in myself, and that was probably a more valuable life lesson than many I would have found had I remained in school.

Me: What mistakes have you learned from the most?

Erica:I didn’t hire an accountant when I first started, and my business was really a mess financially. Having lost hundreds of thousands of dollars due to poor accounting, I am now a huge fan of documenting where my money goes. Spending money is the easiest thing in the world when you have a business. Knowing where that money goes, and whether you are cashflow negative or positive, is key.

An accountant can help you get a system set up that you can use daily or weekly to enter sales and expenses, and then help you file quarterly and annual returns. When you first start out, it may seem really expensive to hire an accountant, but you want to have those systems set up so you can focus on your business!

Me: What are common mistakes have you seen others make when it comes to starting a new business?

Erica:I talk about one common mistake — wishing to appear more “corporate” — in Delivering the Best Customer Experience, and another in Why Your Business Isn’t Doing As Well As It Could Be. The latter, despite its imperfect title, is probably one of the most important posts I have written. I could sell hours and hours of consulting time at $500/hour just fixing this one mistake for customers, and it would pay huge dividends for their businesses.