This is a good time in your life for you to take more aggressive action -- and take a few more risks here and there. So what if a plan or two backfires on you? It's time for you to get comfortable with the idea that you can't hit a home run every time you step up to the plate. Sometimes you just get to first base -- and sometimes you strike out.
But guess what? No one is going to throw you off the team any time soon. You'll always have more chances."Now that you understand the "Risks & Rewards" of entrepreneurship, it's time for you to place faith in yourself and your product/service. Since reading our preceding lessons, I hope that you have learned to build a solid foundation. If not, go back to the first and read through to the last.
The first thing you need to do is decide what type of entity best suits your business: sole proprietorship; partnership; corporation; limited liability company (LLC), etc. By choosing the appropriate type of entity, you will be able to save yourself thousands in taxes and headache. Although many businesses start as sole proprietorships, I am not a fan of them. To explain, everything relies solely on the owner. The owner's credit, credibility, liability and personal artifacts are all on the table in this gambling game of entrepreneurship.
I often hear clients bark about how good their personal credit score is, how small of a business they are, etc. I usually challenge them by saying, "Can your personal life (credit, credibility, liability and assets) survive ONE unfortunate situation? Being sued? Business slows down? If not, establishing your business as a corporation or LLC is the best solution. By forming your business into a legal entity, you protect yourself and your business. Build business credit in your business' name. That way, if God forbids something goes awry, your personal credit and assets will remain intact. Also, it builds credibility that you are not a "fly by night" company, while offering you hundreds of more tax deduction opportunities.
It's time to get moving, there is no better time than the present! Don't look back five years from now disheartened that you never followed your dream. Take the bull by the horns and begin! With job security being at its weakest levels since the Great Depression, business ownership is your team that no one can kick you off of!!!
Friday, August 22, 2008
Thursday, May 29, 2008
The Labyrinth of Business Choices
"Life is funny." Ha, if you think life is funny you should try business ownership. Sometimes it seems as if every decision you make to better your business ends up at a dead end. At times, you can see the wall ahead and others, you take a long winding journey before you face another wall. I must admit, the choices that lead to the U-Turns of entrepreneurship stem from a few things:
1. Research - there was not an effective amount of research done prior to making the decision that was made.
2. Arrogance - thinking you do not need any help, that you built this on your own and you can run it on your own.
3. Selfishness - either not hiring someone to do a job that yes you CAN do, but it takes you so long to do it because you have to learn the effective way to do it
4. Mismanagement - putting all of your eggs in the wrong basket. Yes, you have $1000 for marketing your landscape business; so you decide to get a HOT website built... um, you cut grass.
5. Faithless - everyone else believes that you will succeed, but you question yourself.
6. Instant Gratification - because things are not happening as fast as you want it to, you think that you made a wrong choice in business ownership and make irrational choices.
If you haven't read or watched 'The Secret" I implore you to do so. A lot of people complained that it took God out of the formula, but I disagree. It all comes back to "Cogito, ergo sum" Latin for "I think, therefore I am." If you have faith (from a Biblical perspective or not), you know that you will reach your reward even if you don't know how. This is the best approach in business ownership. You know your product or service (if not, that is the first error); your prices/fees are competitive; and you know your marketing demographic. Once you align these particular items, everything else will come together.
"With great achievement comes greater sacrifice." (That is a COLE-oquialism) There are going to be road blocks in business, some greater than others. Stay determined and persevere by making the adjustments that each situation requires and keep moving forward. Once you focus on your reward and place your ducks in a row, it will be easier for you to find your way through the labyrinth of business and you will find your 'cheese' (metaphorically and literally speaking).
1. Research - there was not an effective amount of research done prior to making the decision that was made.
2. Arrogance - thinking you do not need any help, that you built this on your own and you can run it on your own.
3. Selfishness - either not hiring someone to do a job that yes you CAN do, but it takes you so long to do it because you have to learn the effective way to do it
4. Mismanagement - putting all of your eggs in the wrong basket. Yes, you have $1000 for marketing your landscape business; so you decide to get a HOT website built... um, you cut grass.
5. Faithless - everyone else believes that you will succeed, but you question yourself.
6. Instant Gratification - because things are not happening as fast as you want it to, you think that you made a wrong choice in business ownership and make irrational choices.
If you haven't read or watched 'The Secret" I implore you to do so. A lot of people complained that it took God out of the formula, but I disagree. It all comes back to "Cogito, ergo sum" Latin for "I think, therefore I am." If you have faith (from a Biblical perspective or not), you know that you will reach your reward even if you don't know how. This is the best approach in business ownership. You know your product or service (if not, that is the first error); your prices/fees are competitive; and you know your marketing demographic. Once you align these particular items, everything else will come together.
"With great achievement comes greater sacrifice." (That is a COLE-oquialism) There are going to be road blocks in business, some greater than others. Stay determined and persevere by making the adjustments that each situation requires and keep moving forward. Once you focus on your reward and place your ducks in a row, it will be easier for you to find your way through the labyrinth of business and you will find your 'cheese' (metaphorically and literally speaking).
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