In order to get your small business off the ground, there are 3 areas you cannot neglect. Though boring in nature – Legal, Marketing, and Accounting are the 1st three things we will need to consider once your vision is established. It’s very hard to stay patient and get your ducks in a row when your excited about an idea, you just want to hit the ground running and make your millions 🙂 As I was reminded in a podcast this AM, no one ever got anywhere without putting in the work. That may seem redundant among the loads of business advice you may read on the internet but there is a simple difference between average and great. This difference is integrating massive action coupled with an insatiable grind toward your goals. Part of this will be doing the “boring” tasks.
Regarding Legal, choosing your business entity is a very important decision that is not to be disregarded. Depending on your business structure and future goals, you’ll need to figure out whether you are better set up as either a Sole Proprietor, Partnership, Limited Liability Company/Partnership, C-Corporation, or an S-Corporation. The difference in each will be both in the way you are taxed, as well as the personal liability that is covered in case of a lawsuit. The most popular entity of the last 20 years is by far the LLC. It has the tax benefits of a sole proprietor, while providing much more personal liability in the process. It also avoids the dreaded double taxation that’s incurred in a C-Corporation. (For more info on this, ask me more in the Facebook closed group)
The second area to be considered is Marketing. In today’s technological world, it would be wise to focus on your social media presence. Don’t be overwhelmed by the amount of platforms out there (Facebook, Twitter, Periscope, Snapchat, Instagram, etc), services such as Hootsuite can help TREMENDOUSLY. It allows you to automate/schedule your posts in advance to multiple platforms. Have a plan and know who your trying to reach.
Lastly, Accounting! Though the least attractive part of running a business, it may be the most crucial. If you’ve ever seen the show “The Profit” on CNBC, billionaire Marcus Lemonis makes a point of saying, “if you don’t know your numbers, you don’t know your business.” He’s absolutely right, which is why I recommend the book “Financial Intelligence for Entrepreneurs.” To sufficiently cover Accounting for your small business, track every dollar that comes in and out of your business (income/expense) and read the aforementioned book. At the end of the year, you’ll give your numbers to your accountant, he will produce a financial statement/tax return, and you’ll be able to read those numbers. The skill of reading a financial statement will allow you to measure your progress, which we can all agree is a necessity.