The Importance of Expanding Your Personal and Business Network

The importance of your personal and business network cannot be overestimated.  When I talk about network I am not talking about the way your computers talk to each other or the internet, I am talking about the people you know and that know you.  This has been a tough year for a lot of people, and I am no exception.  The only thing that kept it from being disastrous for me was my network.

Who knows you?

I define my network as the people I know and that know me.  Chris Brogan says, “It’s not who you know, it’s who knows you.”  It’s so true!  It doesn’t matter how many people you follow on Twitter, or how many follow you, it’s how many ready what you tweet.  How many actually know who you are.  That goes for all the social networks.

This is important offline too.  If you have a job, how many of the important people in your organization that make the decisions that impact you actually know you?  If you have or you’re starting a business, how many of your customers know you? How many of your vendors?  What about competition?  All of these people can help.  Yes, it helps to personally know your competition and for them to know you.

It is important to do this because “Be there before the sale” is just marketing speak for the Boy Scout motto, “Be prepared.”  If you are going to start a business, you want to have as many people know who you are as you can.  You never know where that next huge customer or linchpin employee or investor is going to come from.  If you are looking for work, it is even more important.

I have been expanding my network over time.  Nothing overt or pushy, just using Facebook, Twiter, and LinkedIn to get to know more people online.  I have been doing the same offline.  When I hear about an offline get together or Tweetup, I try to go if family obligation permits.  This is not easy, and I’ve only been able to do a few things offline, but I noticed something.  I started to see some of the same people.  I got to know them, and let them know me a bit.

Let people know what you know

If you are looking for work, this is even more important.  Memory Deck has not worked out the way I wanted, and it became important for me to get consulting work to pay the bills.  Expanding my network pretty much saved my bacon with this.  I put out the word that I was looking for work, and because people already knew what I know about, work came.

Notice I said, “knew what I know about” , and not “knew what I did.”  Let people know what you know.  You know about so much more than your job or business requires.  You’re out there right now, filling your head with knowledge.  When you add to that expanding the number of people who know you, and what you you know about, when it comes time to need a new job or more customers, the only part left is the search.

Growing your network and looking for customers or looking for work at the same time is what most of us do.  That is why most people have a hard time finding jobs or finding customers.  Have you noticed that the people who really seem to get social media always seem to have work?  I don’t think it’s a coincidence.

When my partner and I saw that Memory Deck was not scaling the way it needed to in order to support our families, it was time to go to plan B.  Sad? Of course!  I was pissed off.  But I’m a dad first, and I can’t mess around when it comes to providing for my family.  So I put it out there to my network that I was opened to new opportunities.  And guess what? New opportunities came!

An incredible opportunity has come along to work with Ryan Design here in Toronto.  They are one of the most respected real estate marketing agencies in Canada and have done work all over the world.  I am going to help grow their interactive marketing department so I get to do all sorts of fun things with websites, touch screens, blue-tooth and proximity marketing and social marketing.  I look forward to the challenge.

So this stuff really works.  Get into the social networks.  Don’t try to game the system and pad your follower and friend count and just look good.  Go out there and start meeting people and talk about what interests you.  The what you do and what you know stuff will come out naturally.  And get offline as much as you can.  When I get to meet people in person that I already know online, that is where most of the important stuff happens for me.

Photo by Famulus

I don’t do a lot of reviews here, but since the interview I did with Scott Stratten was one of the most listened to and commented on episodes of Startup Daddy, I figure I owed it to him and you to check out the book once it came out.

I pre-ordered the book because I like the way Scott approaches marketing and social media, and also because I’ve met Scott and he’s a good guy and I wanted to support him with his first book.  So yes, I wasn’t entirely un-biased.  If the book sucked, I wouldn’t write a bad review, I just would not have said anything (Mom always said, If you don’t have anything nice to say, don’t say anything).

Luckily, I liked reading it and I’ll tell you why you should read it too.  If you read Scott’s blog, or seen him speak, you know he’s funny.  He approaches things with humor and doesn’t take  himself too seriously.  One look at the back cover and you know he approached his book with this same attitude.  When you read it, make sure to read the footnotes on each page- but not in like a hospital waiting room, or court, or anywhere else you’d be embarrassed to laugh out loud.  Because you will.

So Scott is a self proclaimed Big Deal on Twitter, so it’s no surprise that a lot of the book is about how business have used Twitter to interact with customers and market their wares.  It is more than a book about Twitter though.  It’s about the way he thinks marketing should be done in today’s world.  As he says, if you believe people do business with companies they know, like and trust, then you should make getting to now people your business.

I like that Scott uses specific examples to make his points and includes screen shots that make things easier t understand and probably so you know he’s not making things up which is refreshing for a marketing book.

So the criteria I use to determine if I like a business book is pretty simple.

• Did I enjoy reading it? If I can’t get passed the first few pages of your dry, power point presentation turned text book, I’m out.
• Did I learn something new or was this just a new articulation of stuff I already know?

The answer to both for me was yes when I read UnMarketing.  It was an easy, quick read that kept me smiling and even laughing out loud as I read it.  It is made up of a lot of short quick chapters and he makes his points quickly (probably a skill he learned on Twitter).

He uses specific case studies to make his points and provides actionable advise that makes sense for small business owners.  I use that term actionable a lot because it’s important.  Often we read things that make a lot of sense but we don’t know what to do with it.  This book is not so much a how to, but it is filled with a lot of great nuggets of truth that will help you to use social media to market your business.

Here’s a link to buy Unmarketing (affiliate link)

You can connect with Scott on his blog, UnMarketing, or on Twitter as @unmarketing.

If you’ve read it, let me know what you thought in the comments.  If not, read it, THEN let me know what you think in the comments.

I have a lot of irons in the fire. All of the successful entrepreneurs I know, do too. If you have the mind of an entrepreneur, you are constantly seeing new opportunities. You come up with business ideas like authors come up with story ideas. Good business is art.  To create great art, you need to experiment.

There is a difference between having a lot of projects going at once, and chasing your tail with distractions and not accomplishing anything. That’s where the art is.

Business is a lot like cooking.  There is a big difference between following a recipe and creating one. Anyone can be trained to read a list of ingredients and follow directions telling you how and in what order to prepare them. That’s what a cook does. A chef knows what ingredients go well together. She knows how different cooking methods will make something taste completely different. She knows how the look of a dish will impact the taste. She creates art. See the difference?

I saw a story on 60 Minutes about Chef Jose Andres.   He pioneered a cooking technique called molecular gastronomy.  He looks at food at the molecular level and uses things like liquid nitrogen to prepare it.  Here is a man that took one of the oldest professions on earth and approached it in a way no-one had thought of before.  He’s an immigrant that came to America with $50 and a set of knives, and his creative way of looking at the science of food has brought him to the top of his profession.  He has successful restaurants, money, he even teaches a course in culinary physics at Harvard.  Chef Andres is an entrepreneur.

So don’t be afraid to try different things.  Don’t distract from your core business, but if you have an idea for a side project, pursue it.  Follow through though.  Get it out.  Fail fast, or succeed and move forward.  Side projects allow you to experiment with ideas.  They allow you to pursue ideas that may be too risky to try with your core business, where there is more to lose.

But please don’t be a cook, be a chef.  If you ever think your industry or your niche is in the commodity stage, where consumers look at all the products or services and the companies that provide them as equal, and where the only differentiation is price, think of Chef Jose Andres.  The picture in this post- that’s a bagel and lox.  You can innovate anything.

In the last episode of Startup Daddy, Scott Stratten got me thinking about why someone should consider not starting a business. He said that nobody really talks about it and he’s right.  So I’m saying it now. You may not be cut out to be an entrepreneur.  If you’re not, you should not start your own business.  If you hate your job, get another job.  Here are some things you need to consider before you take even one sip of the entrepreneurial Kool-aid.

• Starting a business is risky.

Starting and owning your own business can be very risky.  Of course the case can be made that in today’s corporate environment, it’s even riskier to have a job controlled by others, but that’s not important right now.  It’s one thing to have a business that provides supplemental income, but it’s another universe when your family’s present and future is depending on you and you alone.  If you are living paycheck to paycheck, you should not quit to start a business!

One of my best friends is way smarter than I am, but when he was faced with a career crossroads recently he decided not to hang his shingle.  He was not comfortable with putting his family’s financial future at risk.  He made the absolutely right decision for him and found another job.  He hates the BS that accompanies all corporate jobs, but he was self aware enough to realize that going off on his own was a wrong move for him.

• Starting a business is scary.

This goes with the whole risky thing, but it’s very scary to break out on your own and start your own business.  You often need to rely on others, be they employees, suppliers, or of course, customers.  What if you get sick or hurt?  What if your market suddenly changes? (Think twitter and 3rd party developers right now).  What if you have to learn to do things you’ve never done before?  There is an endless list of things an entrepreneur lives with that will keep you up at night if you are not cut out for it.  Now I’ve been known to jump out of a plane or pick our two year old up over my head while she’s not wearing a diaper, so I’m cool with scary.  You need to be really honest with yourself though.  If you are uncomfortable with the unknown and the scary, you should not start a business.

• Starting a business is hard!

Forming a company is easy, but starting a business and keeping it going, is hard.  This stuff takes a lot of work.  There’s no time clock in this world and even if you have an office to leave, you never really leave your work behind.  To maintain your sanity, you find a way to put it out of your mind or at least turn down the volume from time to time, so you can be present with your family and friends when you spend time with them.  For the most part though, your entire day is spent on or thinking about your business.  This is especially true in the beginning, but for me, it never goes away.  If you like to watch TV, read for pleasure, have hobbies, take quiet walks on the beach, you should not start a business.

• Nothing can FULLY prepare you to start a business.

I don’t care of you go to business school, read books, attend seminars, or listen to podcasts about starting a business, nothing will fully prepare you for it.  You don’t have to be an expert at everything, but you do need to know about all of the aspects of running your business.  You need to know at least a bit about sales, marketing, advertising, accounting, human resources, local regulations and tax considerations, public relations, IT, the list goes on.

You don’t need to know everything before you start, but you’d better be able to learn fast.  Even if you outsource these things or hire people to do them, if you don’t familiarize yourself with all of the aspects of running your business you are asking for trouble.  If you can’t handle going in blind sometimes, and be confident you can learn as you go, starting a business isn’t for you.

• There’s nobody there to tell you what to do.

Whether you look at this as good or bad, is a great entrepreneurial litmus test (if you’re honest with yourself).  Sure, you can and should have trusted advisers to guide you when you need it, but when you start your own business you need to blaze your own path.  You need to make your own decisions.  Some people work better with a narrow scope of responsibility.  Some people like being able to check action items off a to-do list, and bolt out of the office at 5:00 on the dot.  There is nothing wrong with that, and if you are one of these people, you should not start a business.

Not everyone is cut out to be an entrepreneur

So there you have it.  Not everyone is meant to be an entrepreneur.  If someone is selling a course, or a seminar, or a book, and saying they can teach anyone how to start a business, without any prior experience or skills, I say, “Run, Forrest!”  No, you don’t need experience, but you most certainly need skills.  Your toolbox had better have at least some combination of common sense, life experience, industry knowledge, and let’s face it, cojones.

What do you think?  I’d love to hear your thoughts in the comments.

I participated in Podcamp Toronto this weekend, and I was thinking about how to share my experience with you in a way that would benefit you most.  So I won’t post the slides from my presentation, and I’m not going to write about how attending and presenting at conferences is one of the best ways a small business owner can network with peers and keep up with the latest techniques and trends in your market.  Well I will, but later.  First, I wanted to share an observation that will make you some more money.  Sound good?

Grass roots marketing; sponsoring local events and organizations and participating in your community in a sincere and genuine way, is great business.  Businesses from General Motors to your local mom and pop get this, and if you’re not doing these things you need to get it too.  I’ll use Podcamp Toronto as an example, but you can apply it to any community, with any number of local events and conferences right where you live.

People do business with other people they know and trust.  People recommend businesses for the same reason.  Being there before the sale, doesn’t mean shouting your message at people so when they are in the position of needing your services, they remember you.  Participating in events, whether local, regional, or national is a great way to be there before the sale.  Conferences are a great place to meet people in your industry, but have you attended any for your customer’s industry?  If it is outside your area of expertise, have you considered sponsoring such an event?

In only four years, Podcamp Toronto has grown from a couple hundred attendees the first year to just under 1000 this year. Phenomenal growth yes, but the size of an event that you would expect to be on GM’s radar? It is on GM’s radar.  Chevrolet was not only a Gold Sponsor of the event, but Christopher Barger, the Director of Global Communications Technology for General Motors, came to make a presentation.  Chris and George, the PR guy for General Motors of Canada were at the event, participating in sessions and engaging in conversations.  If a large corporation like GM, understands that there is a huge benefit to having their guys engaging with peers and sharing knowledge, small business like us, better realize these benefits too.

Of course there were a number of national and local Toronto businesses who also sponsored the event. Most events and conferences have different levels of sponsorship so that you can find something that fits.  I get bootstrapping.  You don’t necessarily need to spend a lot of money to do this.  Sometimes, you don’t have to spend any.  You could be an event volunteer or your business could provide products or services to the event for free.  By choosing an organization in your community or a business group that you can relate to, you will naturally connect with the people you meet.  You will engage and participate and enjoy it.  You will get to know people, and they will get to know you.  And that’s a lucky thing, because people do business with other people they know and trust.

If your company has ever sponsored an event or volunteered, what were your experiences?

photo credits: InspirationDC ,karen_blanchard@sbcglobal.net

I wrote a post for Dad-O-Matic about talking to our 6 year old about the earthquake in Haiti, and all of the horrific images she catches on TV now and then.  It’s never easy to talk to your kids about death and tragedy but it’s important.  It’s not the usual business fair, but you can read it here.

I’m taking a mulligan for 2009.  In golf, a mulligan is when you hit the ball poorly, into the woods or a lake, or five feet in front of you, and you want a do over. I know a lot about mulligans.  I was inspired by CC Chapman, who had a bad week, and called a mulligan. If you haven’t heard CC Chapman’s podcast Managing the Gray, you should really check it out.  Anyway, I thought this was a fantastic idea.  I want to take it a few steps farther though, and call a mulligan for all of 2009.

Like a lot of people, 2009 was a particularly hard year for me.  Now A LOT of people had it far worse than I did, and don’t worry, I’m not going to go off on a poor me, this is why my year sucked rant.  Let’s just say it was hard, I didn’t enjoy it, and move on.  It’s that last part I want to emphasize.  The “move on” part.

What makes a do over even better than another turn, is that the do over gives you a chance to erase the bad stuff.  I’m lucky in that I’m usually not one to wallow.  When I see or feel something I don’t like, I have this pathological need to change it.  So for the most part, 2009 sucked.  I’m taking a mulligan.  You won’t hear me talking about how awesome 2010 is going to be, or how I’m going to make this the best year ever!

A mulligan doesn’t make your next shot great, it just gives you a chance to.  No promises of future success, or delusions of finally reaching the top of the hill and it’s all down hill from here.  Let’s be real.  Let’s just say that I’m going to leave yesterday where it belongs and focus on today and tomorrow.  I’m making a plan, and taking specific steps to change things for the better. If you’ve had a hard time lately, why not join me?  It’s easy.  Just tee it up again and let ‘er rip.

Google made a huge announcement today.  Essentially, because of an attempt by the Chinese Government to hack the Gmail accounts of Chinese human rights activists, Google has made a decision that will likely lead to their leaving China.

In 2006, in order to make the deal in China, Google agreed to censor some search results. They announced today that they are no longer willing to continue censoring results.

This is a big deal because it is not often that Corporations the size of Google, with access to the market of markets that China is, decide to give it up because it’s the right thing to do.

In a time when reports about huge American corporations so often make us cringe in embarrassment, Google has given us a reason to be proud of one.

Here is the link to the Google Blog post with the Announcement about China.

I’m Lucky.  I’m Old.  At least that’s what my 6 year old told me recently.  I’m 41, so I am lucky enough to have grown up in a world without the internet which helps me appreciate it.  It also helps me factor in how technology is perceived differently among different generations.  I read a blog post recently that got me thinking a lot about this.

Most of us view the way technology has forever changed the way we communicate as a big advancement and a good thing.  Many would argue though, that it has promoted isolation and gives a false sense of community where people stay alone, communicating through tools instead of directly with one another.  Think about it.  How many of the people you connect with on a given day do you actually see face to face? I’ll bet it’s less than 10%. For some with huge followings on Twitter and Facebook, it’s less than 1%.

So what does this mean?

If you are marketing your business or selling anything, it means a lot.  If you are in your twenties and are just entering the workforce you never knew the world before the internet or cellphones and text messaging.  You are probably very comfortable sharing the minutia of your personal life with people you have never met via Twitter and Facebook. I know this is a generalization, but follow me here. It’s important, because it impacts your perspective, your point of reference.

If you are older it matters too.  Maybe even more. You may be charged with managing younger workers and at the very least you will be getting pitched ideas and opportunities from twenty-somethings.  There is a big difference between being aware that there was a world before, and having lived in it.  I know that my grandmother grew up in a world before television, but I have no personal reference about what that experience felt like.  How she learned, received news, was entertained, was so much different than my experience.

Feelings and emotions are everything with sales and marketing.  We make decisions based on emotions not facts.  The single most important factor in marketing is making an emotional connection to your target audience.  Don’t you agree?  If you are not a member of your target audience you need to keep these differences in mind.

Awareness makes us better

If marketing or sales is on your radar, you know that companies are using social media websites like Twitter, Facebook and YouTube to promote their brands, and in some cases carry entire marketing and sales campaigns.  It is very tempting to jump on to these sites because the cost is so low and the payoff can be so big.  But before you consider this for your business or consider pitching this path to your next prospect, make sure to factor in your audience’s point of view.

Be sure you have some specific goals and specific reasons for doing it.  Setting up a Facebook fan page for your business because “everyone is doing it” is probably not going to do much for you.  Your specific reason may be broad like, “Connecting with my customers and prospects on a more personal level,” or “maintaining a listening station so I am aware what people are saying about my business.”  Do some thinking before hand, though.

Are you a forty-something pitching a twenty-something?  The inverse? Are your prospects Millennials or Baby Boomers?  Don’t count out social media for older folks either.  More and more seniors are wading into Facebook, etc., because it is the best and sometimes only way to keep up with the grand kids.  I predict you are going to see this demographic exploding onto the social scene.  Don’t just assume because they are there, they “get it.”

We all need to keep generational differences in mind when we are crafting our message and communicating.   In the end, it’s really about creating and enriching relationships, right?  We want to get the most from our relationships with our friends, employees, bosses, prospects, right?

Last year my wife and I packed up our family and moved to Toronto.  We didn’t have any grand expectations of a better life, we just wanted our kids to grow up near the huge extended family that was waiting for us here.  I have to admit that the transition has been harder for me than I anticipated.  I am a proud, fly the flag on July 4th American, but it wasn’t even the whole living in another country thing.

I have spent a lot of time and energy focusing on why it’s not better here than back in Scottsdale, AZ.  It seems that every other week some group goes on strike.  Off the top of my head these people have gone on strike in the last year: Transit Workers, Garbage Collectors, Parks & Recreation Workers, College Professors, EMS (that’s the paramedics), and the people that issue Drivers Licenses.  Many of these strikes made things very unpleasant (especially the Garbage Collectors).  In the thirteen years we lived in Arizona, I can’t remember anyone going on strike.  Ever.  And don’t get me started on the weather downgrade.

The thing is, I am trying to be more positive about things.  Monday is Canadian Thanksgiving, so I have been thinking about why I am thankful that we moved to Toronto.  I want to stop comparing Scottsdale to Toronto, or thinking about why one is better or worse than the other.  I want to just start concentrating on why it’s great HERE.  Here’s my top ten reasons I’m thankful to be living in Canada.

1. I have to start with family.  Our daughters have family coming out of their ears here.  Not just the Grandparents, Aunts, Uncles and Cousins, but when you factor in the close friends with kids our age we definitely got what we came here for.  We had lots of friends back in Scottsdale, but there is nothing like a holiday with a house full of kids running around screaming and playing to remind you of what’s important.
2. The ROM (Royal Ontario Museum).  My daughter loves this museum, and why wouldn’t she?  Among other things, you can see dinosaurs AND mummies from Egypt, and they have stuff kids can actually touch and play with.
3. The Ontario Science Center.  Awesome science museum and they have a huge machine that makes your hair stand straight out.
4. You can take the subway downtown to see a ballgame, and feel safe.  Miami (where I grew up) and Scottsdale have horrible public transportation so this is new to me.
5. When I took my daughter to a Blue Jays game, they let the kids run the bases after the game.  I have a picture of my daughter at home plate at the Rogers Center.  How cool is that?
6. On the rare occasion when my wife and I venture out, there are some great restaurants here.
7. America may be the “great melting pot” but this is truly the most multicultural city I have lived in, and I have lived in more than a few big cities.  I love that my daughters will grow up surrounded by all of the different cultures that live together here.  Acceptance and tolerance of “other cultures” is not an issue.  The way it seems to me, no one culture here considers any other the “other” culture.
8. The people here for the most part, are just plain nice.  There are A-holes wherever you go, but all in all, a down to earth nice group of folks.
9. I can’t leave out the free health care.  It cost us more than $20,000 out of pocket when we had our second daughter.  Long story short, health insurance was a total nightmare for us.  This is not a little plus, it’s a huge one.
10. Did I mention family?  My wife and kids are the most important forces in my life.  The kids will have a better life here, surrounded by the love and support of their family.  That’s what really matters right?

What about you?  If you live in Canada, you’ve probably been here longer than me. Why are you thankful to call it home?  If you live somewhere else, why are you thankful to be there?

Starting a business can be a scary, intimidating affair if you have never done it before.  The most common question I am asked is, “Where do I start?”  That is why in my very first podcast episode, I talk about the Business Startup Checklist.  It is a list of steps first-time business owners can use to get their new venture off the ground.

It has been a while since I looked at this checklist, so I recently updated it and included some helpful links to take you right to the sources when I reference them.  In the spirit of full disclosure, some of the links (like my recommended website host) are affiliate links, where I get paid if  you make a purchase.

1. Conduct a personal financial checkup. (download)

You need to know where you stand with your finances so you can start your business with a clear understanding of what it will take to support you and your family.  If you are going to start a full-time business, I recommend having enough money in savings for at least 6 months worth of expenses.

2. Do your research: Define your target market and your competition.   Find out if your  market wants what you offer, and if your competition is giving it to them.

Whether your business will be on-line or off, you want to do your homework before you get too deep into things.  You want to know who the biggest players are,  the size of your market (not anyone who might buy, but how many are likely to buy), etc.  Competition is a good thing. It means there is a market there.  Make sure you can differentiate yourself and not just by being cheaper.  Competing solely on price is a recipe for disaster.

3. Pick a name & check if it is available to register in your state and as a web domain on-line.

I have gone into some specifics about naming your business before.

4. Buy the domain name. I recommend GoDaddy.com.

If this will be your only website, your hosting plan will include registering your domain name.  If  you will have a number of websites, then register all of your names with one company, and point the domain to your webhost.

5. Sign up for web hosting.  My recommendation

Without getting too technical, it can take up to 72 hours for your domain name (website address) to point to your website.  It usually only takes a few hours but I have had it take a couple days before.  Once you pick your name and find it is available (or a domain name close enough to your business name) buy it and get your hosting account set up.  Even if it is just a parked page that says Under Construction, it is best to have this taken care of early.

6. Select your office space or work area.

Whether you are working from home, an executive office suite or a stand-alone office, you need to plan where the best place to set up shop is.  Obviously this is more complicated for a retail business that needs a store-front in a prime location than a service business you can run from your home.  Do you have young kids at home?  You better plan for childcare and a place to go when you need to talk on the phone without background noise.

7. Get a mailbox that gives you a physical address (e.g. the UPS Store.)

Mailbox services like the UPS store will give you a physical address (not a P.O. box) and provide services like signing for packages.  This is important if you are working from home.

8. Sign up for a virtual phone/fax number.

These virtual services range in benefits and features and are usually  a fraction of the cost of adding land-lines to your home phone or setting up business lines.  I use a virtual receptionist service that gives me a toll-free number that I can send to voicemail or forward to my cell phone or land line.  You can schedule it to forward to a certain number or play a certain message depending on the time of day or day of the week.  I love the flexibility it gives me and I only have to give people one number. It also acts as a fax.  I get faxes as PDFs and Voicemails as WAV files in my email inbox.

For a little less money a month, you can get a virtual phone/fax number that just goes to voicemail and accepts faxes.  It doesn’t have the forwarding flexibility of the virtual receptionist but it does the job and gets you a dedicated business line cheap.

9. Assemble your team of advisors; i.e. attorney, bookkeeper and CPA, if appropriate.

I have learned the hard way not to try to do everything myself.  DIY works for a lot of things, but there are some things where it is best to use a professional.  The best way to find these professionals is to ask around.  You want people familiar with your industry if possible.  I always try to get recommendations from people I trust, that have had good experiences with accountants, lawyers, etc.  If you can’t get recommendations, go to networking functions like Chamber of Commerce meetings to connect with people face to face.

10. Decide which business entity is right for you: LLC, partnership  or corporation.

I dedicated an episode of the podcast to this subject and there is a great discussion in the comments section that goes into even greater detail.

11. File the paperwork to form your company (business entity).

Use the company I recommend to file the paperwork for you, or do it yourself.  With a little research and legwork you can get what you need at your Secretary of State’s office.  It will save you about $150.

12. If you formed an LLC with partners, create your Operating Agreement.

Not as important for single member LLCs but if you have partners, I highly recommend writing an Operating Agreement.  You may need help with this.   Here is a good article about creating an Operating Agreement.  Here is a source for professional help.  You can find free Operating Agreement templates on-line.

13. Get Your Employer Identification Number (EIN) also known as a Federal Tax Identification Number.

Go to the IRS website and apply on-line for your EIN.  It only takes a few minutes and you can get the number right away.  You need an employer identification number (also called the Federal Tax Identification number) to open a business bank account, file your tax returns and for some state licenses.

14. Open a business checking account, and get a credit card dedicated to the business.

You want to keep your personal and business finances separate.  Even if you are a sole-proprietor (when you do not file an LLC or corporation) you want to open a separate bank account and use a dedicated credit card.  Even though these will be a personal account, keeping everything separate will save you a lot of accounting and legal headaches.

15. Get any licenses, permits, etc.,  from the state, county  or city, that you may need, and check if you need a license to run a business from your home.

The laws and regulations are different in every state and vary greatly by industry.  Your Secretary of State’s office or local SCORE chapter are a great resource to see if you need any special licenses to open your business.

16. Set up your books.  It is VERY important to keep your business records separate from your personal records and that you never mix your personal and business funds.

Most people use QuickBooks for this, but you may want to check with your accountant to see if they have a specific system or software they would like you to use.  You may also want to consider an on-line solution for professional invoicing.

17. Get your website up.

Whether you do it yourself or hire a professional to create your website, it is easier and cheaper than ever to have a great-looking interactive presence on the internet.  I have talked about and recommend using WordPress to create and manage your website.

18. Get business cards.

Not much to say here, and less important if your business is solely on the internet, but if you are going to do any face to face networking (and YOU SHOULD) you need business cards. Here is the company I use - Good quality & cheap.

19. Identify an appropriate networking group, and attend your first function.

Time to use those business cards you just made.  You will seriously increase your chances for success if you get out there and meet some people.  You not only need to meet potential customers, but other business owners like yourself.  I have had very successful businesses that existed solely on referrals. A great place to start is to check your local paper for Chamber of Commerce events.  Another great resource to find networking groups is Meetup.comMeetup.com

20. Prepare a written business plan complete with financial statements.

I am not going to stop talking about this.  You need to write a business plan.  It does not have to be a formal business plan, but you do need to write it down.  Competitive analysis, market analysis, financial planning and forecasting are skills you need.  Whether you use the Business Plan Templates I give away , use software like Business Plan Pro, or buy a book, you really need to do it.

So there are the 20 steps you can take to get your business started.  They are not “easy steps” or “secret steps.”  They are not even everything you need to do to start a business.  They will get you well on your way though.

Download a PDF of the HomeStartupss Startup Checklist

What do you think?  Is there anything I left out?

Nobody makes it on their own. Not in business, not in life.  To be successful you need to have people that teach and inspire you, not just directly but through their actions.  So I am going to start recommending some of the people I think you should know.  These are people that I learn from or inspire me in some way.  I stole this idea from Chris Brogan.  It is something he does with his weekly newsletter, and I think it is a great idea.  I’ll tell you a little about each one, and give you links to connect with them and check them out.  So here are a few of the people I think you should know about, and why.

The first is Chris Brogan (on Twitter:  @chrisbrogan ).   Chris is as close to an expert on Social Media as there can be.  He certainly doesn’t need my help getting his name out there, but since I stole this idea from him I thought I would start with him.   Chris has one of the most visited blogs in the world, and he tapped “his community” to make his new book, Trust Agents, a New York Times Best Seller.  What impresses me most about Chris is his ability to connect in a personal way with SO MANY people.  I started connecting with Chris on Twitter, then I met him in person at Podcamp Toronto.  He has tens of thousands of friends on the social networks, almost 100,000 on Twitter alone, yet he is able to respond and interact in such a personal way.  He is also really funny.

Pam Slim (on Twitter: @pamslim).  Many of you are corporate employees and managers, looking to Escape From Cubicle Nation, and Pam literally wrote the book on the subject.  In her book and on her blog, you will find honest advice about making the transition from corporate employee to entrepreneur.  She is an expert on that.  She is also a fantastic writer and genuinely nice person.  If you’re looking to get a home business started, and if you’re here you probably are, get to know Pam and check out her blog.

Danny Brown (on Twitter: @dannybrown ).  Danny is another person that’s taught me a lot about social media.  He uses his extensive social media skills for good, as the founder of the 12 for 12k Challenge, a unique charity using social media to change the lives of millions.  I love his blog .  He talks not only about the benefits and pitfalls of social media in a useful and specific way, but about the tools that make it possible for small business owners pressed for time, to take part in “the conversation.”

Kathryn Jennex (on Twitter: @northernchick).  I first met Kathryn on Twitter, then in person at Podcamp Toronto. She has worked behind the scenes with some pretty big fish in the on-line pond, and has recently launched her own personal blog.   She is a truly talented writer (she could make a recipe interesting) so I am glad she did.  Kathryn finds and shares some of the most interesting articles and videos online.  You should get to know Kathryn just because she is interesting, but you can learn a lot from her too.

So that’s it for the the first “People You Should Know.”  I interact with them on Twitter and read their blogs and they teach and inspire me every day.  I don’t leave comments as often as I should, but I am changing that.

I have so many more, so I think I’ll do this every week.  Do you have anyone to add?  I’d love for you to share your people you should know with me.

In this episode of Startup Daddy , I answer questions from YOU.  I really want to help you get your businesses started, and one of the ways I back that up with action is to invite you to send me your questions.  I want this to be a conversation, not a lecture.  A lot of people say that, but I mean it.

You send me your questions via email, leaving comments here, or by responding to my email newsletter.  I read and answer every one of them personally.  So I thought I would make an episode from some of the questions about topics that I am asked about often.  I hope it helps you move your business forward.

Some of the links I refer to in this episode:

Productivity Books I Like:

• Getting Things Done: The Art of Stress-Free Productivity, by David Allen
• Seven Habits of Highly Effective People
• Zen To Done: The Ultimate Simple Productivity System, by Leo Babauta (ebook)

Business Registration Services:
(These are affiliate links- I make a few dollars if you go to LegalZoom from my link, and actually make a purchase)

• Legal Zoom- Trademark Research and Registration Service
• Legal Zoom- LLC Registration Service (Corporation Registration too)

Screen Capture Software:

• Jing- Free
• Camtasia Studio- Paid App with many more features and flexibility.  There is a free trial, though.

DOWNLOAD the Mp3 of this episode.

So how about you?  Do you have a question I can answer to move your business forward?

Yesterday, I wrote my first post for Dad-O-Matic.  Dad-O-Matic shares opinions, reviews, advice and news for dads.  It is a great site and place for me to write about the overall dad stuff that is not related to my business.

I plan to write a few posts a month, and the first one is The Place “Where Dreams Come True” It is about my two days at Disney World with my Family.  I hope you find it entertaining.

My oldest daughter turned 6 on Friday.  The simple fact that my daughter, my my wife and I have survived for the last six years with our physical and mental well being reasonably intact, is more than an enough reason for a celebration complete with balloons and cake.  However, this day marks another milestone too.  It is the sixth anniversary of my becoming a daddy-preneur.  For last six years I have struggled and rejoiced over the challenges and joys that come with being an entrepreneur and starting a family.  Yes, the challenges have been many and some very large, but I have also experienced more and greater joy than I had previously thought possible.

I thought I was a good negotiator.  I’ve closed huge business deals with nothing short of my financial well-being in the balance, and I’ve bought and sold used cars, and 2 houses.  None of that compares to dealing with a melt-down in the middle of a crowded grocery store, or getting my daughter to eat more broccoli.  Kids don’t need be taught the art of the counter offer, it comes as naturally as breathing.

I thought I’d had some tough encounters with former bosses and important clients.  Then I had the pleasure of talking about money with my wife when neither of us had slept in weeks.  Good times.  I have had some pretty great moments in my life, but when I made my daughter belly laugh for the first time I saw the true definition of joy.

I thought I knew what tired meant.  I don’t need to expand on this.

We are friends with couples that have kids close in age to ours, and some of the other dads have their own businesses too.  There is a bond we share.  We have a mostly unspoken understanding of each other’s sacrifice and it’s payoff.  I see the other daddy-preneurs at the school events during work hours, the birthday parties, at McDonald’s on a Sunday morning.  I’m sure they would all agree how amazing it is that we have created  this for ourselves.

I know there are a lot of mommies out there that do the same thing, and more.  I have nothing but respect for you, because in many ways, you have a more challenging path.  I know this is true of my wife.  But not being a mom, I can’t speak to that.  You could ask my wife, but she’d probably have to get back to you because she is very busy.

I won’t say how lucky we are, because this does not happen by shear luck.  You have to work at it.  When you set out to create a lifestyle that provides enough time to enjoy and participate in your children’s lives and enough income, you are setting a pretty high bar.  So far I have been able to do that, and I do not take any of it for granted.  I appreciate every day I get to have this, because you never know what tomorrow brings.

Parenting is a challenge, at least good parenting is.  Starting and running a business is a challenge.  Doing both at the same time, might be the definition of insanity.  I could not imagine having it any other way.

So I am attending Podcamp Toronto this weekend.  It has been great to finally meet some other people who are interested in podcasting and social media, in person.  The learning sessions have been interesting for the most part, but it has been the interaction with other like-minded people, face to face, that I have enjoyed most.  It’s also great to meet some people I chat with on Twitter in person.  That’s not what this is about though.

During Chris Brogan‘s presentation (which was hilarious by the way) he mentioned a woman named Glenda Watson Hyatt. Glenda has Cerebral Palsy.  She calls herself the left thumbed blogger, because the only thing she can use to type is her left thumb.  I looked her up and started following her on twitter.  She has over 5700 updates (messages she has sent) which makes her an extremely active twitterer.  So this woman with Cerebral Palsy, that keeps her in a wheel chair, and limits her to typing with her left thumb, which is her chosen way of communicating because her speech is so impaired, can manage to actively message people, write a blog with a page rank of 5 (which is awesome by the way) and a BOOK!  Yes, she wrote a book.  With her left thumb.

Chris held up her book and asked if anyone was inspired by this.  Uh, yeah.  I raised my hand (as did most of the people in the room) and he handed me the book. I opened it, and there on the title page, written in pen, was GWH.  It was signed!  Can you imagine?  She can only type with her left thumb, and she signed the copy Chris had.  How many of these books had she placed her initials on? I imagine, hundreds.  It’s called, I’ll Do It Myself and she sells it at her website.  I’m looking forward to reading it.

How many of us complain about the things in our lives that are hard, or annoying?  I sure do.  My wife and I haven’t had a good, uninterrupted night sleep in a year and a half, so I can be kind of cranky sometimes.  I’m a wimp.  I have it easy.  And so do you.  It’s easy to find excuses NOT to do the things we know we need to do to be successful.  I don’t have the time, I’m not a good writer, I don’t know how to build a website, I hate sales, I’m not a good speaker.  Shut up.

I hope you get some inspiration from Glenda’s story.  There are hundreds or thousands of Glenda’s out there though.  People, that despite some thing that would stop most of us in our tracks, achieve great things.  I’m not saying don’t feel sorry for yourself sometimes.  We’re human.  Of course we’re going to do that.  I’m saying treat that like the indulgence that it is.  A sometimes food. Like ice cream.

We all have a thing or a story.  I am going to try to remember that there is always someone with a bigger thing, a worse story.  I am going to try to feel my pain, my self-pity, then get over it.  I am going to try to stop complaining and do something.  People are drawn to positive do-ers.  I’m going to try harder to be one them.  You?

I was inspired by my Twitter friend Michelle, to think about a question I ask myself that helps me focus and prioritize.  I came to realize that it is the most common question I ask myself: “So what?” Now I don’t mean, “Who Cares?”, I mean WHY would someone care?  Why is that thought, answer, feature, benefit- important? So what? keeps away the BS.  If I think I have a great business idea, I think, “So what?” It helps me focus on who it will help, do they need it, and more importantly, do they want it?

If I am preparing a presentation, I picture a little person on my shoulder that asks, “So what?” after everything I say. This keeps me focused on benefits not features. It helps me remember that you are never selling vacuum cleaners, you are selling a clean house.  It keeps beasts like The Best and The Greatest at bay.

So what? is also a great filter for the data you get bombarded with on a daily basis. If it gets through my So what? filter, it deserves my attention.

So what? can be a big help in prioritizing your projects and tasks.  The biggest So whats are usually your most important projects.  Need help prioritizing tasks?  Ask yourself, “So what if this doesn’t get done?”  The critical things will become clear pretty quick.

Want to reduce your stress?  The next time you are stressing over a detail, or arguing with someone, try So what. WARNING: When arguing, don’t SAY, “So what?”  just think it.

So what can save you a ton of time.  It can improve your presentation skills, your sales, your stress level and most of your life.  If you don’t agree with me, then well, you know …

You can’t own your ideas.  Sorry, but it’s true.  You can patent an invention, copyright a work of art, trademark a name or phrase, but you can’t own an idea.  Once you put it out there, it’s out there.  Remember this when you start a business.  Sure, you can use a non-disclosure agreement (NDA) to protect yourself when talking about an idea with a vendor or adviser, but once you get your business up and going, you open yourself up to competition that will copy your idea.  If it is a good idea, you can count on this.  100%.

I was reminded about this on my vacation, when I had a bad experience trying to buy some clothes for my daughters.  I was in a store that sold cute tye-died clothes for kids. I was without my wife and since I would not be able to return them later, I didn’t dare make a purchase without approval.  A factor of success is knowing what you do and don’t do well, and for me, clothes and fashion are definitely an outsource to wife thing.  What I usually do in this situation, is take pictures with my phone, send them to her, and she gives the thumbs up or down. This is a very efficient process for us.

So when I started taking pictures, I was approached by one of the owners of the store who confronted me rudely and told me I couldn’t take pictures in her store.  I explained what I was doing, and that I was trying to make some purchases.  I wanted to spend some money there!  She replied that people were taking pictures of their designs and copying them, and selling them on the internet.  So they don’t let people take pictures anymore.  She became more rude, and I smiled, and said that I have worked as hard as I was willing, to spend money in her store.  I thanked her for her time, and left.  The funny thing is that she probably felt a sense of accomplishment for having stopped a usurper, instead of regret for losing money.

Talk about doesn’t get it.  You can’t stop people from stealing your ideas.  You need to implement them better.  You need to be online, if that is where people are looking for what you have (and they are!)  If you establish an online presence and have strong brand awareness, when people rip off your ideas they will be seen as rip-offs.  If someone can improve on your product, offer easier delivery or distribution, or even just market better than you, then they will steal your market share.  Deal with it.

You can’t stop it anymore than you can stop the rain, but you can prepare for it, just the same.  Learn about marketing.  Stay up on the new trends in communication and networking like facebook and twitter.  The only way to maintain market dominance is to earn it.  Having the idea is never enough.  You have to implement it better than your competitors.  If someone is ripping you off don’t stand for it, tell the world about!  But don’t just say you’re being ripped off, tell everyone why you are better.  Always look for ways to improve.

Sometimes a little competition can expand your market and if you are truly better, and you market well, those newcomers to your market will find you.  Don’t waste too much energy trying to protect your great idea.  Spend it trying it improve it.

I want to know what you think.  What part of your product or service is so unique it can’t be duplicated?  How do you stand apart from the competition?

I have come to realize that there is a huge difference between a father and a daddy.  I had a father, I’m trying to be a daddy.  So just for fun, here are a few differences between a father and a daddy:

A father changes a diaper by yelling, “Hon, the baby needs to be changed!”
A daddy can change a diaper while talking on the phone, and go right back to eating a sandwich.

A father still watches 2-3 football games every Sunday, in their entirety, LIVE!
A daddy thinks whoever invented TIVO should win the Nobel Prize.

A father looks like a deer in headlights when he hears, “I need to run out, you watch the kids for a while.”
A daddy enjoys being left alone with the kids because he can play with his kids while surfing the web and watching Sports Center.

A father can answer questions about the government and the stock market.
A daddy can also answer, “Who do we ask for help, when we don’t know which way to go?” and “Can We Build it?” (For the fathers, The map and YES, WE CAN!)

To a father, making lunch means opening a can of Spaghetti-Os or frozen pizza.
To a daddy, well this one’s a push.  Forget it.

To a father, a peaceful quiet moment actually requires Quiet and Peacefulness.
To a daddy, a peaceful quiet moment can include kids screaming and the lights and sounds of kids toys that make Times Square look tame, as long as he can sit on the couch and especially if he can watch a few minutes of Sports Center.

A father talks to his kids at dinner and might know the name of their kid’s best friend.
A daddy not only knows his kid’s friends, he knows which ones to stay clear of on the playground, and which one’s parents to stay clear of at birthday parties.

A father thinks the best thing he can do for his family is work hard and make as much money as he can so he can provide a nice home for his family and his children will have everything they need and most of what they want.

A daddy gets that, but he thinks the most important thing he can do for his family is to be present in his children’s lives and participate in forming the way they look at the world.

I’m trying real hard to be a daddy.  I don’t catch every big moment, but I get to see more than most, and that makes me pretty lucky. What about you?  Leave a comment and tell me what you think.

The one time you skip a CYA procedure will be the time that procedure was really needed- guaranteed!  If you downloaded episode 5 of my podcast before today (December 22, 2008), and you listened to the Time Saver Quick-tip, you were probably thinking, “What’s wrong with this guy?”  There were long pauses and heavy sighs, it was a mess.  That’s because it was the one time I skipped a step in my process for publishing and posting my podcast.  And of course, it bit me where I sit.

My basic process for recording a podcast is this. I record the segments in one sitting, then go back and edit them, then assemble them.  Then I listen to the whole thing, and then I post it to the web.  I use an outline of the things I want to talk about, but I don’t use a script.  This means I have a lot of editing to do.  Sometimes I will say something over or in a better more clear way, or sometimes I just have to remove a cough or something.  Hey, you don’t need to hear my Umms, Uhhs, and Coughs.  I have too much respect for your ears and your time for that.  So what happened this time, and why I am I telling you about it?

The What is simple.  I was tired and got lazy.  I was sitting on this interview for two weeks because I was sick, and I really wanted to get it out.  I was still feeling the effects of the cold, so the recording was a mess.  I edited everything but when I assembled the final one, I used the wrong file for the Quick-tip.  I was in a hurry to get it out there, so I didn’t listen to the final file before I posted it.  Stupid.

Luckily, I got some email from some listeners asking me what was wrong.  The questions people were asking ranged from asking if I was angry or frustrated to whether I was having an asthma attack.  The truth is I was just still feeling the cold, and out of breath.  I have fixed the file, but the damage is done.  Half of the listeners of this podcast got the unedited version of the file.  If you are one of them and still reading this, Thanks for sticking with me!!

So why am I telling you all of this?  I want it to be an example of why you need to put CYA (Cover Your Assetts) Procedures in place, and to NEVER deviate from them.  The one time you skip a step, is the time that step will be the most needed.  You forget to backup a file?  You will loose or delete it.  You forget to look at the TO: field before you send that scathing email?  You just hit Reply To All.   Count on it.  Forget to backup your hard drive?  Do you smell smoke?

The point is, you need these things in place for when you ARE tired, or off your game.  You need backups becauses drives DO fail.  It takes a little extra time but it is ALWAYS worth it.  Take the time to determine where the scary parts are in your business process.  Develop a procedure for protecting yourself from failure or embarrassment, and make sure you follow it.  If you don’t, trust me, <heavy breath> <lip smack> you’ll regret it.

I talk about using WordPress to build your website in episode 4 of the podcast.  One of the things that makes WordPress so powerful, is the ability to install plugins to easily add certain functions.  Andy Beal, from Marketing Pilgrim has recently posted a great list of WordPress Plugins that will supercharge your new website.  I am using some of them on this site, and I am going to look into using some of the others he suggests.

One of the things that makes this list so great is that he does a very good job of explaining what each plugin does.  You should definitely check this out:

21 of the Best WordPress Plugins for New Blogs

Okay, I gave away the answer in the title, but I just couldn’t wait to tell you.  There is a lot of talk about the recession lately.  The world economy is on magic mushrooms, and stock markets go up and down by 10% in a given day.  All you hear on the news are stories about people loosing their homes, businesses going bankrupt putting thousands out of work, Armageddon.  Are we in a recession or aren’t we?  The media is selling fear, worry and panic, and the general public can’t buy enough.  The candidates for President of the US keep saying that the country is facing the biggest economic crisis since the Great Depression.  They wouldn’t be setting themselves up to be a huge hero when things turn around, or have a good excuse if they don’t, would they?

Let’s assume we ARE in a recession, and we are facing this huge economic downturn.  So What?!  That may seem cold, or uncaring to people facing hard times right now.  It’s not.  I’m just saying that worrying about it isn’t the answer.  You may have already been affected by the economy in some way, or maybe you haven’t. If you have, make a plan.  If you haven’t, MAKE A PLAN.  Don’t get sucked into the vacuum of panic and paralysis that is sure to grip so many small business owners.  Change your tactics.  Adapt to the market- like you always should. If you don’t think a business can survive hard times, and the great Depression wiped out everything, think again.

Do a google search on companies that thrived during the Great Depression, and you’ll see I’m right.  You’ll find that the common thread among the companies that demonstrated the highest level of growth and sales was that they advertised heavily.  Want examples?  Proctor & Gamble has a policy of not cutting advertising budgets during times of recession and they have made progress in every one of the major recessions, and the Great Depression.  During the ’20s Fords were outselling Chevy’s by 10 to 1.  In spite of the Depression, Chevrolet continued to expand its advertising budget and by 1931, the “Chevy 6″ took the lead in its field and remained there for the next five years.

Doesn’t this make sense?  People don’t just stop buying things in hard times.  Now if you sell Lear Jets to stockbrokers, I probably can’t help you, but if you have a product or service that gives true value to your market, then you can not just survive bad times, you can thrive in them.  Should you start a new business in a recession?  Absolutely.  All of the same rules apply.  Define your market.  Find what they want, and sell it to them.  Don’t try to sell them what you think they want.

Become an expert marketer.  Learn all you can about promoting your brand, and then DO IT.  Companies will be slashing advertising budgets, so you should increase yours.  When competitors start disappearing from the marketing landscape, it is a precursor to their permanent disappearance.  In hard times, advertising costs drop, as advertisers slash budgets.  This is a huge opportunity.  If you can negotiate, there will be some great bargains out their for advertising.

If you have a good product or service, find an angle why it is important to keep using it in hard times. If you provide business services, stress the importance of your product to your customer, and show them how it will help them survive the hard times.  Entertainment or leisure? Stress the importance of staying sane in hard times by maintaining your personal relaxation routine.

True courage is not the absence of fear, it is the abilty to act in spite of it.  That isn’t a Startup Daddy original, but I was lucky enough to learn that lesson as a young child and it has influenced my attitude about fear, my whole life.  It is okay, normal, to be at least a little fearful about starting a new business in a troubled economy.  Don’t let that fear keep you from acting.  Use is to keep you sharp.  Do your research.  Fortunes are not just lost in hard times, they are made.

This post continues the series on Starting A Business. This installment deals with choosing a business structure for the formation of your new company.

Choosing the right business structure for your personal situation is one of the first decisions you will have to make when you start a business. Just like daughters are different than sons, a Sole Proprietorship is much different than a Corporation or LLC (Limited Liability Company). They have many similarities but at their core, they are very different. In this post I will explain the differences between the business structures and provide you with information that will help you make the decision about which is right for you.

When making the decision about how to structure your new company, some of the things you need to consider are:

• personal liability
• taxes
• management structure
• will you be seeking outside financing
• selling the business

Here is a list of the most common business structures and a brief description of each:

1. Sole Proprietor
2. General Partnership
3. Corporation
4. Limited Liability Company (LLC)

Here is a brief description of each business structure and some information to help you decide which is best for you.

SOLE PROPRIETORSHIP:

This is the most common and the simplest form of a business. With a Sole Proprietorship, an individual just goes into business without any formal organization. If you want to have a business name, a DBA (Doing Business As) or Trade Name is filed with the state. Owners are personally liable for all debts of the business.

GENERAL PARTNERSHIP:

A general partnership is created when two or more people associate to carry on a business for profit. A partnership generally operates according to a partnership agreement, but this is not required. Like with a Sole Proprietorship, the owners are personally liable for all debts of the business.

CORPORATION (C Corporation):

A corporation is a legal entity, separate from its owners (called “shareholders.”) This is why a corporation limits the liability of its owners. Forming a corporation is a great way to protect your personal assets from company liabilities such as lawsuits and debts. It also makes it easier to seek outside investment, there are tax advantages, and it makes it easier to transfer ownership. The people who manage the business of a corporation are
called “directors.” Corporations are complicated. Every state has different rules, and the names for things vary slightly from state to state. A corporation is generally created by filing a document called Articles of Incorporation, with your state.

Some downsides of a corporation are that there are formalities and record keeping requirements like formal board and shareholder meetings, keeping “corporate minutes” and filing Annual Reports. You are also taxed more, as the corporation pays taxes on income, and the shareholders are taxed on any profits that are distributed.

LIMITED LIABILITY COMPANY:

A Limited Liability Company (LLC) combines some of the characteristics and flexibility of a partnership, and the liability protection of a corporation. It is formed by filing Articles of Organization with your state. The owners of an LLC are called “members.” Generally, the liability of the members is limited to their investment.

The advantages of an LLC are that generally, any income or loss is passed through to the members (as in a partnership or sole proprietorship), so the entity is not taxed like in a corporation. So the owners get the liability protection of a corporation with less formalities, paperwork, and accounting.

S Corporation (“S Corp”)

An “S” corporation is not a different entity, but a federal tax election. There are tax rules that can make it advantageous for small businesses to elect be “S” corporations, but you should contact the IRS or a competent accountant regarding this decision. You can apply for both a Corporation (C Corp)or an LLC (Limited Liability Company) to be taxed as an S Corporation.

Your Decision

It can be very confusing to try to decide which entity is right for you. One of the things I am going to try to do is not just give you information, but when I can, guide you with advice. So with the understanding that I am NOT a lawyer or an accountant, here is my take on things.

I highly recommend forming a Limited Liability Company (LLC) or Corporation. There is too much liability in this lawsuit happy society of ours, to have a Sole Proprietorship or General Partnership. You need to protect yourself. I have had both, and the LLC is less paperwork and accounting on an ongoing basis. It limits your liability and protects your assets like a corporation, but without the burden of corporate maintenance. That’s why the LLC is becoming the most popular way to start a business, and why it is the business structure I chose for my new company.

COSTS

The process and cost to establish them is about the same. Once you decide which one you want, establishing a business entity is usually not that complicated or too expensive. If you have never done it before, I recommend hiring someone to file the paperwork. A lawyer can cost over $1,000, but there are businesses that provide this service on your area, for much less. The cost varies, but on average should be around $300-$500.

I have a recommended resource that will file an LLC for you for as little as $149, and a Corporation for as little as$139. You will also have to pay the state filling fee, and have the fillings published in a local newspaper. This will add about $150. So for about $300, you can have professionals prepare your paperwork, and you have a company.

Whichever way you decide to go, form the entity and get OFFICIALLY IN BUSINESS! For my new company, I am using the resource I recommended above to file an LLC. To save money, I opt not to do all of the fancy embossed kits and expedited services. If you really want that stuff, reward yourself later.

Next up in the Starting A Business Series- Setting up your website.

Having done both (more than once), I am going to make the argument that choosing a name for your business is even more difficult than choosing a name for your child. While you don’t have to factor in things like people in your past that had that name, in-laws, and what will happen to your business on the playground, with your child, once you decide that you like the name, you’re done. No so with your business.

With a business you need to go much further. You need to find out if there are other businesses with that name, and if so, if they are in your industry. Is the trademark available? Is the domain name available? Does it mean the same thing to others as it does to you? The list goes on. There are businesses out there thriving on this very concept. Day in and day out, they help people name their companies. There are also companies that will help you name your child, but that is another story entirely.

These services are not for us though. We are not that decisionally challenged. We would never entrust such an important, personal decision to strangers. Besides, we are on a budget, right? So here are are some tips and advice about naming your business.

CHOOSE A NAME WITH MEANING

Unless you have a HUGE advertising budget, you want to stay away from names that do not mean anything, and do not indicate what the business does. Google, Yahoo!, EBay, and Amazon, spent millions before most people knew they existed, or what they did.

Using your family name in the name of your business is fine, but only if you never intend to sell it to anyone outside your family. You want to avoid anything too generic as well. Accurate Business Accounting, may tell your potential customer exactly what you do, but it does not distinguish you from your competitors. If they see your brochure, or an advertisement with that name, it is not likely they’ll remember you. You need to strike a balance between creative and descriptive, so when people hear the name, they remember it and they have at least a vague idea about what you do.

THINK BIG FROM THE BEGINNING

You may also want to avoid any regional references in your name. Be optimistic. You’re going to take over the world right? A multi-national distributor of widgets with the name West Coast Widgets, just doesn’t work. 5th Street Bakery might seem like a great idea in the beginning, but what happens when you want to open the other 10 locations? What if you move?

IS THE NAME AVAILABLE?

Your State

The first place to check is with your state’s Secretary of State and Corporation Commission. You can usually do this online. You will want to check if there are any other registered entities (corporations, LLCs, etc.) or DBAs (Doing Business As) that are already using that name.

Trademark

This is a big one. Once you decide on a name you like, you need to check if other businesses are already using the name. There are many ways to do this, but the best first step is going to be to Google it. Throw the name into Google, and see what comes up. If there are businesses there, but not with the exact name, and not in your industry, you may still be in luck.

Check the trademark availability at the US Patent and Trademark Office website. Even if you are not planning to register the trademark right away, you want to make sure it is available. I recommend registering your trademark as soon as the budget allows. Remember, you’re going to take over the world! If you register yourself, it will cost about $325. All of the information is available at the USPTO website. A lawyer will cost more, but will save you time and possible delays if you do something wrong. Here is a resource that will prepare and file your trademark application with the United States Patent and Trademark Office for $169 + standard government filing fee of $325.

Domain Name
This is your website address. Once you are confident you have a unique name, you get the joy of checking if the Domain Name is available. There are many domain registrars out there and each has a search function. GoDaddy.com has a good search function because it gives you possible alternates if the name is not available. Be prepared to discover your name has already been taken. Don’t get discouraged, get creative.

Avoid using an alternate spelling of your name, because you’ll probably end up sending business to whoever owns the right spelling. You can try adding something to the beginning or end of a name though, or a logical abbreviation. If you are going to incorporate, try adding inc to the end. If you are going to form an LLC, try adding that. (My next post will talk about business entities) Of course this only works if the people who have the name you want, are doing something completely different with the website.

This is what brainstorming is for. If you expect people to input the name directly into a web browser, don’t get cute with the spelling. Remember that most people will find you online either by reading the name from a business card, brochure or an advertisement, or using a search engine. This is why a creative prefix, suffix, or abbreviation is much better than an alternate (wrong) spelling.

If you are going to do business in the “real world” your domain name should be your business name. If you are starting an internet business, there are different approaches to picking a name. One is a branded name- something memorable that hopefully, indicates something about your business. The other is a keyword rich domain name, optimized for search engines. I chose to combine these two approaches for this site. Startupdaddy.com (my branded name) redirects to home-based-business-startups.com (comprised of keywords and optimized for search engine rank).

DON’T FORGET TO CONSIDER OTHER CULTURES & LANGUAGES

A classic example of a name becoming a problem later, was the Ford NOVA. This car sold very well domestically, but not so great in Mexico or Latin America. This is because in Spanish, “No Va” means “Doesn’t Go.” Food for thought.

Test Your Name

This is important, so do some testing. At the very least, run the name by everyone you know. If you want to provide your product or service to customers with diverse cultural backgrounds, run the name by people who speak different languages. To get more sophisticated, you can use surveys or a pay-per-click advertising campaign to see if your name accomplishes what you want it to.

Whatever you do, don’t settle. Don’t pick a name just because the domain name is available. Remember, if you are lucky, you’ll be living with this name for a very, very, long time.

I know it has been a couple months since I posted anything, but I am back. In the two long months since my last posting, I have learned many new lessons and re-learned a few old ones. In the coming posts, I plan to share a lot of what I have learned. You will also see me launch a new business, from the very beginning. But first, let me tell you why you haven’t heard from me for a while.

Simply put, I got myself into a business deal that ended up going against almost all of the criteria I have for my business ventures. I got into a partnership, where my responsibilities far outweighed my ownership stake in the company. Our roles and responsibilities were too vaguely defined from the beginning, and this led to a quick meltdown of the working relationship between me and the main stakeholder. Most importantly though, I allowed myself to sacrifice the flexibility and lifestyle, I have worked so hard to achieve.

The good news is that I have developed the ability to recognize when things are not working. I have a very good idea about when I can turn things around, and when they will only get worse. I needed to get out of this, but I had to be very careful to do it right. Oh, I didn’t mention that one of the partners was a very close friend, and all of the partners (except for me) were lawyers?

I am not a quitter. If I commit to something, I am all in. I will almost always stay in a bad situation longer than I should. Now that I have kids though, I have had to shift my mindset and my priorities when it comes to my businesses. A long time ago I decided that it was more important to me, to spend time with my family than to make as much money as possible. For me, lifestyle often trumps income. Don’t get me wrong, I enjoy a nice lifestyle and make a good income. It is just that I could never be one of those dads who has a very high paying job that keeps him at an office from 8 am to 8pm. There is nothing wrong with it, but it is not for me.

I stayed with this project about a month after I recognized that it was not what I wanted to do. I really tried to make it work. I put all of my other projects on hold (including my consulting business and this blog), and put all of my effort into making the business work. Meanwhile, my relationship with the other main partner was quickly deteriorating, and we would often end up arguing. I was sacrificing too much. I was not happy, and I was not hiding it very well.

Coming to the decision to leave the partnership was not easy. As I said, a very good friend was a stakeholder, and his financial investment was not the only issue. My leaving might put him in an uncomfortable position with his partners. I also wanted to make sure I was not opening myself up to litigation. Also, I still thought the business was a good idea, and I was struggling to figure out where it went from something I was excited about, to something I could no longer do. There were a lot of factors, but I think in the end, it came down to personalities.

I spoke to my friend first, and then to the other partners. I really agonized over how to approach them, and what to say. Of course when I finally made the phone calls, it was not as bad as I feared. None of the conversations were confrontational, and we were able to leave things very amicable. They may even enlist my services as a consultant from time to time.

I have always said that action is exponentially better than inaction. I would rather make a bad decision and correct course, than be caught up in the quicksand of indecision. When you take this approach though, you have to be willing and able to see when you have made a mistake, and willing and able to take the actions necessary to correct it.

You are ultimately responsible for your own success and happiness. Before you start a business, or go into any business deal, you have to give a lot of thought about how you define success. What sort of lifestyle do you want? How much money do you need? Will this business or opportunity help you achieve your goals? If yes, do it! If the answer stops being yes, be prepared to stop doing it.

There was a time when I would have thought of this experience as a waste of months of my time and a lot of money. I do not look at it that way. I learned a lot of things that will make me a better adviser to my clients, and gained knowledge and insight that I will be able to apply to future ventures.

I am re-energized and motivated to put my energy into teaching people how to start and grow their businesses. I am lucky to have found something that fulfills me personally and professionally, and I will be very hesitant to stray from this path again. What I like to do is teach. The wonderful thing about teaching is how much you can learn while you do it.

Ready, Fire, Aim! This is how most people start a home based business. This is how most people start any business; how most companies launch a product. This is how I did things when I first started along my entrepreneurial path, and let me tell you, it is one of the most expensive and important lessons you can learn. You have probably heard, “People don’t plan to fail, they fail to plan.” It’s true, and if you are even thinking about starting a business, you better remember it.

So where do you start? A business plan, right? Wrong! This is very important, and I will get into that later, but the place to start is your idea to start a home based business in the first place (or any business for that matter). Let me tell you about one of my flops.

I was about 25, and I moved back to New Orleans to pursue a business opportunity that eventually fell through. I had just sold my first company, and I was rich. After paying off a bunch of debt, I had about $10 thousand in the bank! Listen, when you’re 25, and that is more money than you have ever had before, you think you’re rich. I put the whole thing into spray mace (pepper-spray) distributorship. This is a self defense spray, and since New Orleans had such a high crime rate, and was at the time, the murder capital of the US, I thought I had a no-brainer here. I was very wrong.

Long story short, I finally threw out about half of my INITIAL inventory investment about ten years later. Maybe the people who were interested in carrying something to insure their personal safety were all carrying guns, I don’t know. What I do know, is that I will never invest my time or money into a venture again, without first testing to see if there is a market for the thing.

It is far easier to find a market and provide them something they want, than it is to have a product and find a market for it. Notice I said, want not need. It helps to be a member of your market too. It is not a requirement, but it sure makes things easier and more interesting if you can relate to the people you are trying to sell to.

A good way to start, is to think of a product or service that will make your life easier, better, more fun, exciting, you get the idea. Do some research to determine if other people are looking for it. Search online for the product or service, and see what comes up. Do some keyword research (If you don’t know how, I will get into how to do keyword research in a future post). Search online forums for groups that represent your market- just add “forum” to the description of your group in your search. See what they are talking about. Can you help them?

This is finding a niche. Identify a market and identify something they want. If you do that, you are onto something. Remember that people are more likely to purchase something they want, than something they need. This is why it is more dangerous to walk into a Best Buy than a Farmer’s Market. Don’t, “Ready, Fire, Aim!” Take careful aim and you will exponentially increase your chances for success.

Here are five things you can do get off to a bad start, waste your time and money, and frustrate yourself in your quest for financial and career independence.

1. Forget About Niching Down

Whether you are starting an online venture or a real world, brick-and-mortar business, it is very important to find your niche. All of my successful businesses have been targeted to a very specific sector of a bigger market. I’ll give you an example.

One of my earliest post-college startups, was a swimming pool service and repair business. This also happened to be my first partnership. A friend of mine discovered a device that used copper and silver ions to purify pool water, instead of chlorine. He started a business installing these devices, and offering service contracts to the homes that purchased one. He did not have a strong business background, so he found himself struggling. This was way before the internet got started (yes, I’m old!), so he did not have fantastic resources like StartupDaddy.com that he could easily go to for advice. We started talking about it, and I thought he was really on to a great idea, so I partnered up with him.

I was living in Miami at the time, and this was just as South Beach was starting to be a place beyond a community of retirees living on their social security checks (I told you, OLD!). Since this was a luxury product, I started targeting luxury communities. The expensive Miami Beach mansions in exclusive gated communities would be our target market. I increased what he was charging for the device itself, doubled what he was charging for a monthly service contract, and quadrupled the business in the first year. We were able to differentiate ourselves by targeting a specific niche in the market. This is when I discovered it cost me the same time and money to get a pool clean for a wealthy person who could afford, and wanted, other premium products and services, as it did for a person who could not afford, and did not want, premium products and services. A lesson I keep in mind to this day.

2. Listen To Everyone’s Advice

When you announce to your world that you are starting a business, you will be surprised at the advice you will receive. Some from people who have never run a business themselves! While this advice usually lacks in quality, it will surely not lack in quantity. You will hear, “Wow, pretty risky! Better have a backup plan.” Like working for a company for 20 plus years, and getting laid off at 50, is not risky. You can also get overwhelmed by the sheer volume of GOOD books, courses, and online content, devoted to starting a business. Do yourself a favor. Find a few trusted advisers, read as much as you can, and shut the rest out.

3. Remember, You Already Know Everything You Need To Know About Your Business

While it is very important to filter the information and advice about your business, it is also very important to seek it out. You may have been doing what you do for your business for 25 years, but believe me, there is always something you can learn to make more money doing it. All of the successful entrepreneurs I know continually read journals and books about their business, and business in general. You are going to need to pay for some of this education, too. Go to seminars (on-line AND OFF-LINE). Sure, some are truly a waste of your time and just an excuse for the presenter to sell his wares in the back of the room. Do some research though. Get referrals or read some of the author’s material first, to make sure you like what they have to say, and how they say it. Seminars can be a great way to get information and make contacts, that will make you money.

4. Stay Secluded and Go It Alone

It is easy when you are starting a business, especially a home based business, to get caught up in the day to day activity of getting things done. When you couple that with starting a family, you can quickly and easily find yourself going days or weeks, without seeing another adult human being that you are not related to. Do not fall into this trap. It can get very lonely, and it is not healthy for you, or your relationship with your family. Get into a networking or mastermind group. It will help your business, and your psyche.

5. Get Bogged Down In the Planning and Minutia, and Never Get Started

Let’s face it. Starting a business is scary. It’s exciting, but no matter how many times you do it, there is a little voice reminding you that there is the possibility of failure, and that is scary. Some people say that is a poison thought. You should not allow yourself to even think about failure. Bull!! The possibility of failure is real. To me, shutting out reality is just plain dumb. The key is to be motivated by this possibility. Be careful. When there is a scary, big picture thing out there, we have a tendency to bog ourselves down with minutia. We get caught up performing tasks, instead of accomplishing goals.

Don’t get sidelined by the siren song of inefficiency and delay. This will happen to you. Count on it. Be aware when this is happening though, and you can stop it. Get started today. Go launch your website. Call the printer and get your business cards. Sit down, and niche down your business idea. Whatever the next step is for you, take it. Today. Now. Go.

This has more to do with the Daddy than the Startup, but this is how I spent Super Bowl Sunday. About 4 am, our oldest daughter comes into the room. “I don’t feel so good.” Great day to come down with a cold! She didn’t wake me up, because this is about the time the baby is placing her breakfast order. While the missus took care of the baby’s breakfast, I put the oldest back to bed. So started the manliest day of the year.

There was a time when Super Bowl Sunday meant friends, food, beer, and some football to top it off. How times have changed. Instead of the 12 hour Fox Super Bowl Pre-game show, we get Disney Channel and Noggin at our house. Handy Manny is more interesting than Terry Bradshaw anyway.

Lucky for me, I got my daughter into watching football. We sit there for a bit on a Sunday afternoons, and she hangs out with dad and does her touchdown dance when either team scores. Don’t get me wrong, we don’t watch a whole game (or even a half) but we have a good time for as long as her attention span allows. She really likes the Fox football player robot, too. Thank goodness for DVR.

I record the games I’m interested in, and watch them at night, when everyone is asleep. You’d be surprised. You can watch a whole game, every play, only fast forward the commercials and between-play mulling around, in about an hour and half. Just remember to set it to record about a half hour extra, or you will find yourself missing the end of an exciting overtime game on occasion.

I was lucky tonight. Startup Mommy had things well under control with the baby, and my daughter has a vested interest in the game. It seems the main characters in the animated movie Madagascar, are called the New York Giants, by someone at some point in the movie. She has a team to root for! That and she said that it wasn’t fair that the Patriots won all of their games. Apparently everyone is supposed to get a chance to win. What do you want? She’s four. I thought I would wait another few weeks before I teach her the harsh reality of life. We actually got 3 quarters of very inconsistent watching in. (I’m in Phoenix so things got started around 4:30). It worked out perfectly. The Giants scored to go ahead just about at my daughter’s bed time. So I hit pause, my daughter satisfied that the Giants were ahead, and went to read some books and put her to bed.

After she fell asleep, I went back to watch the end of the game. I’m from Miami originally, and a very big Dolphins fan. Sorry if I just lost some readers. The very first football game I got to see live, was Jets vs Dolphins, in the Orange Bowl, during the 1972 season. That’s right, the STILL, only remaining perfect season. Like I said, for me, things worked out perfectly. A perfect end to a perfect day.

How did you get some game-time in ?

The first thing you need to do before you start any new business, is to decide what you want from the business in the first place. Do you want something that is part-time, to supplement your income? Do need a way to pay your bills if you quit your job, because you have a job or a boss that you just can’t take any more? Do you want a Home Based Business to eliminate your commute? In order to know if something is a success, you need to first figure out what you mean by success. By setting goals from the very beginning, you give yourself a way to measure success. You either meet your goals or you don’t. When you first sit down to define your goals, I suggest you make them as specific as possible, and include a “Reward-Goal”:

• Instead of, “Make more money” something like “Make enough money to go to Hawaii on vacation this year.”
• Instead of, “Spend more time with the family,” something like, “Be home by 5:00 every day, so I can eat dinner with my family,” or “Take Fridays off every week.”

I know a guy that, when he quit his job to start consulting, did just that. He decided he would not work on Fridays. He has had three day weekends, every week, for the last five years! Because he know he wanted this from the beginning, he built it into his process.

One of the biggest problems businesses run into, not just small businesses, or home based businesses, but all businesses, is that they fail to set goals. When you are getting started, think about what you want from your business, and set some goals that will make that happen. You need to write them down too. There is something about writing your goals down on paper, that makes this work. Maybe seeing what you expect of yourself, on paper, in your own handwriting, is what makes it real. Whatever the reason, trust me. Write them down.

You need to set specific goals, and re-visit and revise these goals throughout the year. If you do, you will stay motivated, know when ideas are working and when they are not, and know definitively that you are on the path to success.

If you are reading this, you are probably interested in starting a new business or you have already decided to do it. You may have a small or home based business, and you are looking for ways to grow. You may also be expecting a baby soon, or have young children already. So congratulations! You have taken the first step in securing your career and financial future, while forfeiting the majority of your sleep. I promise you that the feeling you get from owning a business that generates enough income to support you and your family, is well worth the work. NOT depending on an employer for income, NOT waiting for someone else to give you a raise because you need more money, NOT asking permission to attend your kid’s school recital, or a daytime ball game, these are some the perks of being your own boss. This may be the reason you want to start a business. The other part of course, is the work. Owning your own business, especially a home based business, takes discipline and will. It may not be the hardest work ( I have worked construction and as a carpenter, and I know what hard work is) but it is difficult work, challenging work. I don’t know who first said, “Nothing in this world that is worth having, comes easy,” but it certainly applies to owning a business and raising children. It especially applies to doing both at the same time.

Most people who start a business, start off in their home. They either have a tight budget, or just enjoy the convenience and commute that a home based business provides. I am going to try to give you a wide variety of information, insight, and help, with starting and growing your business.

I have been in business for myself, for over ten years. I have a four year old daughter, and a newborn infant. I know a lot about the tug-of-war that trying to run a business while starting a family can be. I know about juggling schedules and late nights. I know about sweating the mortgage and accounts payable. I also know victory in its various forms; closing the sale, getting the contract, getting the baby to stop crying, potty training. I have built businesses from the ground up, with no outside financing, and sold them for a profit.   I want to share my experiences as I get a new startup going while juggling the demands of family life with a young child and a baby.

I will get into how to prepare yourself for success with the right mindset, how to decide which kind of business entity to establish, how to decide which home based business opportunity is the right one for you. There are literally millions of home based business opportunities and websites offering information and selling plans, courses, and business franchises. I am going to try to provide you with real, practical information and tips that you can use to get your business started right. I have not had a “J-O-B” for a decade. In the coming posts, I am going to tell you what I have done, and still do, to establish successful businesses with little or no staff or start up capital. I am no Mr. Rogers, but I will also throw in a parenting tip whenever I find some life saving solution that I think may help you.

I hope you find the information helpful and that I can play a small part in helping you achieve your goals of financial an career independence. Please let me know what you think. I want to hear from you about what your fears and concerns are, what questions you have about starting a business, and how your new ventures are going. So let’s get going. We have 529 college savings plans to fund!