The Latest Guide for a Practical Business Start-up
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The Latest Guide for a Practical Business Start-up
The Latest Guide for a Practical Business Start-up
The latest guide for a practical business start-up gives you 5 crucial steps to follow to get your online business running.
You can assure yourself of a solid business foundation by following the latest guide for a practical business start-up.
You are not required to do anything that we recommend. It is up to you to decide how you want to run your business. However, years of experience has proven to us that it is better to put certain fundamental business structures in place to protect you, your family, and your future. Be sure to consult with a trusted advisor and an attorney as you move forward.
In this episode of My Biz Dream Team: Opportunity Wednesday Training Series we share with you our systematic approach to starting up your on-line business so that you can leave your 9-5 job and start living your entrepreneur dream life.
1. Prepare a Business Plan
Last week we discussed doing research to discover if your business idea is viable and compatible with your business personality. We hope that you took the opportunity to take the entrepreneur assessment test in Harvard Business Review: Assessment: Identify your Entrepreneurial Personality Type
This week we want you to continue researching your business idea. Then write a business plan. The data and research that you have gathered should be enough to start making projections for your business.
Do not be intimidated by a business plan. It is not cast in stone. It does provide you a guide to follow during those crucial early days after start-up. For help in developing a business plan consult with your local economic development authority or the federal small business development centers that are sponsored by the Small Business Administration.
2. Create a Legal Entity for Your Business
Creating a legal entity for your business is an important step in building a solid business foundation. As you decide on the type of legal entity to create for your business think about your business goals and exit strategy. These considerations will help you decide what type of entity is most suitable for your situation.
You should familiarize yourself with the (1) different types of company structures and (2) laws and regulations regarding them. Then choose the best one for your circumstances. Consultation with a business attorney who specializes in this area is always a great idea.
You may decide that a sole proprietorship will work for you. A single owner business is the simplest type of business formation. Just be sure to make an analysis of your risk factors.
You may also want to consider forming a limited liability company or LLC. Over the past 25 years LLCs have been used very broadly and in many different types of circumstances. The state statutes on limited liability companies offer business owners great flexibility. An LLC shares characteristics of a corporation (limited liability) and a sole proprietorship or partnership (pass through taxation).
You need to decide whether you want to go through with the formalities of forming a LLC. If you decide to form a LLC, pay close attention to the provisions of the operating agreement, if you decide to have one. If your operating agreement does not specify what happens in certain situations, you may be subject to the default provisions of the relevant state statute. Also, be sure to ask your attorney about the benefits of a “charging order” as it relates to attacks of creditors on your LLC.
3. Get an Employer Identification Number (EIN) for Your Business
After you have formed your legal entity, then you can get an employer identification number (EIN) from the Internal Revenue Service (IRS) for tax administration. You can apply online for your EIN. This is a free service.
Be sure that you have all the information needed to complete the form when you begin the online application. The online website does not allow you to save the information that you have already entered and return later.
The IRS offers many helpful tools on its website to help you through this process. These tools include a Frequently Asked Questions section and a video. We recommend that you review these tools before beginning the application process.
4. Establish Separate Business Accounts for Banking and PayPal
After you have your EIN, then you can use that it to set up your business banking account. This account should be separate from your personal business account. You should not mix the two. It only causes confusion at tax time.
You then can use your EIN to set up a separate business PayPal account that is linked to your business banking account.
When you have set up those business accounts, be sure that you are tracking your business expenses and income. In the beginning, you may want to track these items yourself. With the help of business software, you can create the various categories of income and expenses and track them. As your business grows you may want to hire a bookkeeper.
When you consult with your attorney about your business entity, ask for a recommendation for an accountant. An accountant is very helpful in giving you advice about the tax consequences of running your business.
5. Plan for a Private Space for Your Office
Plan for a private space for your office. Like many online entrepreneurs, you may start working from home. It is important to set up a separate space to run your business. If you are working at home, being able to close your door trains your family to know that you are working when you are in your office.
At first you may not be able to have a separate home office. We know people who started with a laptop on their deck. But eventually, you will want a private and separate space for your business. You will want a place where you can record your videos, podcasts, and webinars that is free of distractions.
There are also tax consequences for using a dedicated space in your home for your business office. Check with your accountant about this matter.
Conclusion/Call to Action
The latest guide for a practical start-up gives you 5 crucial steps to follow to get your online business running. Following this guide will help insure that your online business is fundamentally sound and has a solid foundation.
Remember to follow these 5 steps from the latest guide for a practical start-up:
- Prepare a Business Plan
- Create a Legal Entity for Your Business
- Get an Employer Identification Number (EIN) from the IRS
- Establish Separate Business Accounts for Banking and PayPal
- Plan for a Private Space for Your Office
Click here to get a the latest guide for a practical start-up checklist. We mentioned this checklist on the podcast.
If you like what we have to say on this topic follow us.
I am Pamela Montgomery, the attorney, author, and online business strategist working with entrepreneurs, speakers, and authors as they create the lives of their dreams and achieve uncommon results.
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Work from Home: 3 Tips for Creating a Business Not a Job
Work from Home
Work from Home: 3 Tips for Creating a Business Not a Job
Are you ready to work from home? Are you ready to leave your 9-5 job? Many people dream of working for themselves, being their own boss, and having the freedom to take on clients and projects they love. This dream continues even in the face of data from the Bureau of Labor Statistics that the self-employment rate has trended downward over the past two decades. According to a recent report from the Bureau of Labor Statistics, in 1994, “the self-employment rate was 12.1 percent; by 2015, the rate had declined to 10.1 percent. From 1994 to 2015, the unincorporated self-employment rate fell from 8.7 percent to 6.4 percent.”
What you may not realize, though, is that there is a huge difference between building a business and being self-employed.
Business owners scale their income. Self-employed people trade dollars for hours. I know several dentists, doctors, lawyers, and technicians who are self-employed. Don't you? If the lawyer is sick and out the office, the work does not get done.
Business owners leverage the skills and talents of others. They have staff who work for them. The staff can be employees or contractors.
Self-employed people rely on their own skills. If you are the only person in your “business,” then you are self-employed.
Are you discouraged yet? Don't be. Every business owner started out self-employed. Just do not stay there. When you work from home, these three tips will help you build a sustainable business instead of another job.
1. Do Not Try to Do it All Yourself
Building a sustainable business requires that you leverage the talents and time of others. While it might seem cost-effective to simply do everything yourself–especially in the start-up phase when you likely have more time than money–it is the path to burnout and stress.
Instead separate your tasks into those that you love and are especially suited for (for example, marketing) and those that you dislike or not great at. Then make a solid plan to get those tasks that you dislike or are not great at doing off of your plate. If you think that you cannot afford to outsource it all right now, start with what you tend to procrastinate doing, even if it is just a few hours each month.
For more information on building a business team, listen to our podcast and read our blog post: Building a Great Business Team.
2. Do Not Allow Yourself to Work All the Time
The trouble with working at home is that you live at work. That means that there is no clear line between your work day and home life. Initially, I found myself caught in a never-ending cycle of work. But I quickly learned that was not a recipe for success.
Since there is always work to do, it is easy to find yourself working every available moment–often to the detriment of your family relationships. You can avoid this situation by:
- Setting and maintaining clear work hours
- Having an office with a door you can close when you are done
- Scheduling time for family and other activities
- Taking time for yourself
It is so important to find time everyday to reflect and focus on what is truly important. As stated by Kevin Kruse, author of 15 Secrets Successful People Know About, Secret #1 is “Time is your most valuable and scarcest resource.” Use some of that time for yourself. That is not being selfish. To find out more about taking time for yourself, read our blog post, Finding Time for Yourself: “Me” Time
3. Take Time to Relax, Refresh, and Renew Yourself!
Do not create a business that requires you to be “in the office” every day. At the start, you may need to be available more, but you should plan for the day when you can be “off the grid” for extended periods of time.
- Have trusted contractors who can handle things when you are away
- Leverage automation tools such as autoresponders and auto-webinar systems
- Create repeatable systems so that you are not always re-inventing the wheel
While you may not be able to hit the road with no internet access for weeks at a time, at the very least you should be able to reduce your workload to a daily check-in.
Sound impossible? It is not. with some forethought and planning, you can create a team, and systems they need, to successfully run your business without becoming overwhelmed and overworked. To find out more about the importance of creating systems and delegating to others read your blog post, Delegate to Your Business Dream Team to Multiply Your Success.
Conclusion/Call to Action
Make sure that when you leave your 9-5 job to work from home, that you have not created another job for yourself. By following these three tips you will be on your way to leveraging the efforts of others to create a business that you can scale and enjoy.
- Do not try to do everything yourself
- Do not allow yourself to work all the time
- Take time to relax, refresh, and renew!
We would love the opportunity to work with you to help you create the business and lifestyle of your dreams. Are you ready to leave your 9-5 job? Are you ready to work from home? If so, give us 6 weeks to show you how to build and grow your online business. Check out The Strategic Pathway to Success Program™
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Starting an Online Business: A Question & Answer Session
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Starting an Online Business
Starting an Online Business: A Question & Answer Session
In this episode of My Biz Dream Team: Opportunity Wednesday Training Series we held a question and answer session to discuss some of the key questions that entrepreneurs frequently ask about starting an online business. Just think, you could run your business from anywhere in the world with an internet connection and a computer. But before you run off to set up your website for your online business take a few minutes to think about the many issues involved in starting an online business. This episode of the podcast is the start of a conversation between us to discuss just what it takes.
In this episode we discuss:
- How do you make money with an online business?
- How do you get noticed on the internet
- What methods do you use to attract customers and clients?
- Should you use a virtual assistant?
- If you are going to work out of your home, should you have an office?
Key Issues to Consider When Starting an Online Business
Before starting your online business there are several issues to consider. For example, what are you going to sell? Remember, you are not in business, unless there is something to sell. In this episode of My Biz Dream Team: Opportunity Wednesday Training Series we talk about (1) selling information products; (2) teaching online courses; and (3) affiliate marketing. These are only three of the ways to make money with an online business. You can also sell physical products. There are entire courses dedicated to that subject. If you are interested in selling physical products, contact us to discuss the various options.
One of the most important issue that you must address, is whether this is a hobby for you or a business? If starting an online business is a “business” for you, then you must sure that you set it up and run it like a business. With any business, there are certain legal and regulatory matters that you must address. Those matters will be addressed in future podcast episodes and articles.
Final Thoughts
As you consider starting an online business consider having someone at your side to show you the ropes. You need someone who has done it before. We would love to be your guides. Read all about “The Strategic Pathway to Success Program”
How to Make Money with Affiliate Marketing Episode 5:2
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My Biz Dream Team: Opportunity Wednesday with Dexter and Pamela Montgomery
A Great Business Opportunity: Affiliate Marketing
This episode of My Biz Dream Team: Opportunity Wednesday Training Series is all about affiliate marketing. This program is dedicated to educating you about the many business opportunities available to build and grow your online business. Affiliate marketing is a business opportunity that can work for you even if you still have a job. You can start earning extra income as you begin your business part-time. We started making money with affiliate marketing after a few months and started generating another stream of income.
On this episode “How to Make Money with Affiliate Marketing” we will cover (1) what is affiliate marketing; (2) types of products to promote; and (3) best practices in affiliate marketing.
What is Affiliate Marketing?
Affiliate marketing is promoting other people's products. What a great business opportunity: Making money recommending what you love! You receive a commission if anyone buys the program because of your promotion efforts. As an affiliate marketer you can promote products on your blogs, websites, social media, and through email. Affiliate marketing is basically an agreement between a vendor (someone with a product) and a promoter (you). You search for vendors that have affiliate programs, join the program, and start promoting! The vendor usually provides artwork and information that you can use to promote the product.
Types of Products to Promote
The best products to promote are those that have used and know that your audience and clients will find valuable. Focus on the needs of those in your particular niche or specialty. We recommend focusing on products that you love! You want to be a raving fan promoting a product that is fabulous! You can use affiliate networks like JVZoo or Nanacast to search by categories to find products to promote.
Best Practices
There are several best practices to use in promoting products. (1) Remember to use the product that you are promoting. You have much more credibility when speaking about the benefits of the product when you are familiar with it. (2) Know your audience. It is essential that you understand your audience and its needs. Be able to explain to them why they need and want to buy the product. (3) Be selective in the types of products that you product. It can be confusing to your audience if you promote too many different types of products. For example, you have a cooking blog and promote tableware or pots. It is confusing if you suddenly start to promote guitars or exercise equipment. Make sure that what you promote is consistent with your overall message.
Conclusion
Affiliate marketing is a great business opportunity. It is a great way to get started with your online business especially if you don't have products of your own. Remember to promote products that (1) you love and (2) are consistent with your overall niche and message.
Our main website is http://mybizdreamteams.com. If you want to continue to receive information from us about other events and other income generating opportunities, please go to the website. Grab your free report on “Building Your Business Dream Team.
You can contact us at pamela@mybizdreamteams.com or dexter@mybizdreamteams.com.
We would love to hear from you.
