4 answers
Montavis
Student
Rock Hill, South Carolina
1
Question
Asked
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How do we go about starting our business and how do we promote it.
How do we go about starting our business and how do we promote it.
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4 answers
Danielle Rawles
Analyst
10
Answers
Los Angeles, California
Updated
Danielle’s Answer
Hi Montavis,
When formally starting your business, it is important to look up the organizational laws of your state to make sure you are in compliance, and research different types of businesses (LLC, C-Corp, S-Corp, 501C3 & more) to make sure you are selecting the business structure that fits your goals, scale and purpose the most. Whether your business will revolve around a product or service, marketing is key! It is very important to find your target audience, even if your product or service can be enjoyed by everyone. This will help you focus your marketing tactics to attract your ideal customer base. I agree with the above answer that social media, networking and conversations are great ways to market yourself. It is also important to think outside the box with your approach and/or develop a clear aesthetic to make your business memorable. Here is a link that lists some great marketing resources for up-and-coming businesses: https://blog.avada.io/resources/best-free-marketing-tools.html
Good luck!
When formally starting your business, it is important to look up the organizational laws of your state to make sure you are in compliance, and research different types of businesses (LLC, C-Corp, S-Corp, 501C3 & more) to make sure you are selecting the business structure that fits your goals, scale and purpose the most. Whether your business will revolve around a product or service, marketing is key! It is very important to find your target audience, even if your product or service can be enjoyed by everyone. This will help you focus your marketing tactics to attract your ideal customer base. I agree with the above answer that social media, networking and conversations are great ways to market yourself. It is also important to think outside the box with your approach and/or develop a clear aesthetic to make your business memorable. Here is a link that lists some great marketing resources for up-and-coming businesses: https://blog.avada.io/resources/best-free-marketing-tools.html
Good luck!
Josh Jona s
Consulting
1
Answer
Cary, North Carolina
Updated
Josh’s Answer
Starting your own business has a lot of factors that go into it. If you have a specific sector or industry you are trying to break into there will be additional details.
Generally speaking: *I have used Legalzoom to start various companies, they assist/do most of the below)
- set a budget then double it and double it again sorta-speak (min to get a business in legal standing ranges from $1000-5000)
- determine a name (think marketing) and research the availability
- purchase a web domain that suits the name (build a site that supports your needs and future such as ecommerce capacity, etc)
- determine which state(s) you will operate in
- use a company such as Legalzoom to create and file proper paperwork and determine how the company will be organized (LLC vs. Sole-proprietorship)
- set up contract(s) with a legal advisor (if required)
- get licensed (if required), must be done before establishing the business in most cases
- find investors (crowdsource, interested parties, etc)
- determine if a woman, veteran, or other entity is best to be in the org for contracting purposes
- write a business plan (plan for growth)
- take/receive advice from all potential advisors and do not get emotionally attached to "your" way of doing things.
This is a start.
Generally speaking: *I have used Legalzoom to start various companies, they assist/do most of the below)
- set a budget then double it and double it again sorta-speak (min to get a business in legal standing ranges from $1000-5000)
- determine a name (think marketing) and research the availability
- purchase a web domain that suits the name (build a site that supports your needs and future such as ecommerce capacity, etc)
- determine which state(s) you will operate in
- use a company such as Legalzoom to create and file proper paperwork and determine how the company will be organized (LLC vs. Sole-proprietorship)
- set up contract(s) with a legal advisor (if required)
- get licensed (if required), must be done before establishing the business in most cases
- find investors (crowdsource, interested parties, etc)
- determine if a woman, veteran, or other entity is best to be in the org for contracting purposes
- write a business plan (plan for growth)
- take/receive advice from all potential advisors and do not get emotionally attached to "your" way of doing things.
This is a start.
Marc Bradburry II
Manager/Consultant
14
Answers
Henrietta, TX
Updated
Marc’s Answer
Assuming its a self starter, 1-2 person start up that produces a product or provides a tangible service (remote car wash, house painting, etc) - Identify what you want to do, be passionate about it, believe that is something you can commit to day in and day out. Do research on this passion and identify if there's a market and how much of that market is already taken (competition). Write out a business plan, with the business plan you need to identify the capital you need to start, and the working capital you will need to operate for at least 6 months (building, utilities, legal fees, equipment, travel, raw materials, etc) if you have 0 income (should be more like 12-18 months minimum but it depends on what business and timeframe on returns), and what you need to make to make a living (this is often where most people struggle, you have to pay yourself a salary, your business' money is not your income)
Another way to do it, if possible, is a part-time almost hobbyist approach. Have a steady income (job) and take a hobby or small venture and turn it into a revenue stream. Just make sure you are billing for your time and consumables as I will discuss later. You can get your DBA (doing business as) pretty cheap and this will allow you to have a business account and a legitimate standing locally (make sure you understand all your tax and business laws). Always keep your business finances separate from your personal, both for legal and tracking purposes. Dedicate your free time to your business and grow it until you can commit to it full time and approach it as I first stated.
*Do not skimp on the business establishment (llc, corporation, dba, etc) as well as pass on general business and liability insurance. These things are rather inexpensive and protect you personally, the consequences of not doing so are far more costly than these investments.
When it comes to marketing, undersell and overdeliver. Make sure you can handle what you promise to do. It takes years to build a reputation and one bad interaction to destroy it. Communicate clearly what you offer, how it benefits them and the value you add. Value your time and your product/service, don't do or give things for free; if people do not invest anything they will not see any value in it. Start out with face to face interactions if possible, take space at local events (farmers markets, parades, festivals etc) these often do not have great conversions from interaction to sales but it will give you practice communicating what you do. Use P2P (peer-to-peer) marketing, ask people to tell their friends and family about your business, don't assume they will. As your experience grows with more interactions you will be able to develop an idea of what is popular and what items/services are most beneficial and you can start to promote those for free on social media platforms. Get with your local chamber of commerce or small business association representative as they often have programs to help small businesses advertise.
One of the biggest mistakes I see is people not billing properly for their products or services. Your business needs to make more money than you put in, understanding all the costs involved with your business is the most important thing for your business to survive. This may seem like an obvious statement however this is where many fail, they don't understand billing for time, consumables and the wear and tear of equipment. There is more to the cost of a product than raw materials or distributor pricing. Unloading/Unpacking, Shipping, Stocking all takes time, time=money and if you don't account for it, you're creating unnecessary costs because one way or the other you're going to pay for the time. Equipment degrades with use, so if you're using equipment you need to account for depreciation and time used on equipment. Same with vehicles, it takes fuel/energy to travel, traveling wears tires eventually requires maintenance (oil changes, tire balancing, etc) not to mention the depreciation of the vehicle's value with the added mileage. These may come down to pennies, but if you mind your pennies your dollars will watch themselves.
Be prepared to not be profitable out the gate, be prepared to sacrifice and do what it takes to make it work; anyone can be successful if they have the tenacity and perseverance to see it through.
Another way to do it, if possible, is a part-time almost hobbyist approach. Have a steady income (job) and take a hobby or small venture and turn it into a revenue stream. Just make sure you are billing for your time and consumables as I will discuss later. You can get your DBA (doing business as) pretty cheap and this will allow you to have a business account and a legitimate standing locally (make sure you understand all your tax and business laws). Always keep your business finances separate from your personal, both for legal and tracking purposes. Dedicate your free time to your business and grow it until you can commit to it full time and approach it as I first stated.
*Do not skimp on the business establishment (llc, corporation, dba, etc) as well as pass on general business and liability insurance. These things are rather inexpensive and protect you personally, the consequences of not doing so are far more costly than these investments.
When it comes to marketing, undersell and overdeliver. Make sure you can handle what you promise to do. It takes years to build a reputation and one bad interaction to destroy it. Communicate clearly what you offer, how it benefits them and the value you add. Value your time and your product/service, don't do or give things for free; if people do not invest anything they will not see any value in it. Start out with face to face interactions if possible, take space at local events (farmers markets, parades, festivals etc) these often do not have great conversions from interaction to sales but it will give you practice communicating what you do. Use P2P (peer-to-peer) marketing, ask people to tell their friends and family about your business, don't assume they will. As your experience grows with more interactions you will be able to develop an idea of what is popular and what items/services are most beneficial and you can start to promote those for free on social media platforms. Get with your local chamber of commerce or small business association representative as they often have programs to help small businesses advertise.
One of the biggest mistakes I see is people not billing properly for their products or services. Your business needs to make more money than you put in, understanding all the costs involved with your business is the most important thing for your business to survive. This may seem like an obvious statement however this is where many fail, they don't understand billing for time, consumables and the wear and tear of equipment. There is more to the cost of a product than raw materials or distributor pricing. Unloading/Unpacking, Shipping, Stocking all takes time, time=money and if you don't account for it, you're creating unnecessary costs because one way or the other you're going to pay for the time. Equipment degrades with use, so if you're using equipment you need to account for depreciation and time used on equipment. Same with vehicles, it takes fuel/energy to travel, traveling wears tires eventually requires maintenance (oil changes, tire balancing, etc) not to mention the depreciation of the vehicle's value with the added mileage. These may come down to pennies, but if you mind your pennies your dollars will watch themselves.
Be prepared to not be profitable out the gate, be prepared to sacrifice and do what it takes to make it work; anyone can be successful if they have the tenacity and perseverance to see it through.
Tina Q. Luong
Real Estate Agent
11
Answers
Urbandale, Iowa
Updated
Tina Q.’s Answer
You can start by researching the field you want to start your business in, and asking those who have done it how they do it. Then work on getting documents prepared for your state. How would you promote? Social media, networking. Talk to people. Tell them what you do. Talk big about your business! Be confident!