In this episode of Startup Daddy, I talk about the best business books for starting a business, and a service that makes it easy to share large files with clients (or anyone else).  I get asked about books a lot, so I made a new page on this site called, Recommended Reading.  I thought it may be interesting to do a podcast episode on the subject, and I also thought it may be interesting to turn this into a video, so I did that too.  We’ll see how much extra work it is, and your feedback, and maybe I’ll do it this way more often.

I want to build up my Youtube Channel, so if all works as intended, you’ll be able to watch OR listen in your iPod or iPhone or Zune, OR watch it on this site or Youtube.  Please drop by the Startup Daddy Youtube Channel, and subscribe to the channel to be notified when I post a video there.  I plan on having some fun with that soon.

Below the video for this episode are the links for the books I talk about.  These are Amazon affiliate links. If you are concerned with this, it may be a good time to review my Disclosures Page.

Here are my picks for the best business books to read when you are starting a business

Some are literally how to start a business, some are about getting more done and productivity, but all have something that you can take away that will make you a better business owner, and hopefully, make you more money.  I have read them all, and they have all influenced how I think and act as an entrepreneur.  It is far from a complete list of good business books, but it’s a great start.

After watching the video, drop me a comment and let me know if you have any great business books to add.

If you only read one book about starting a business, please read this one. Seriously.

The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It, by Michael E. Gerber

Books About Getting A Business Started and Transitioning from Corporate Life to the Entrepreneurial Life:

Rich Dad Poor Dad: What the Rich Teach Their Kids About Money-That the Poor and the Middle Class Do Not! by Robert T. Kiyosaki

The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything by Guy Kawasaki

Escape From Cubicle Nation: From Corporate Prisoner to Thriving Entrepreneur, by Pamela Slim

Crush It!: Why NOW Is the Time to Cash In on Your Passion, by Gary Vaynerchuk

The 4-Hour Workweek, by Tim Ferriss

Books About Productivity and Getting Things Done

Getting Things Done: The Art of Stress-Free Productivity, by David Allen

The 7 Habits of Highly Effective People by Stephen Covey

Leo Babauta’s  EBook, Zen to Done

File Sharing

The files sharing service I talk about is called Dropbox.  It is a free service that makes it easy to share large files with other people or keep them synced with multiple devices.  If you have an iPad, it’s a must.  If you use this link to sign up with Dropbox, we both get a little more free storage.

Photo Credit by p!o

Do you have any great business books to add?  Let me know in the comments.

This episode of Startup Daddy,  I talk about one of the challenges I have been facing getting my new business going.  Starting a business with young children in your life is hard. Period.  Hopefully, by talking about some of my challenges, I can encourage some of you, to push through your challenges, and not give up.

I get more personal than I usually do, and talking about something that is holding you back is always a little scary.  It is also cathartic.  Just putting this out there has already helped refocus my energy on my goals.

I want to hear from you, so I leave you with a question.  What are you struggling with right now?  Whether it falls under balancing family life with getting things done for your business, or something with the business itself, let me know.

Trust me, it does help to talk about this stuff, so let’s talk about it in the comments.

Download the Mp3 for this episode

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.

Download the Mp3

In this episode of Startup Daddy, I interview Scott Stratten, president of Unmarketing, and author of a soon to be released book: UnMarketing: Stop Marketing. Start Engaging (affiliate link).

Scott has a successful company, popular marketing blog, busy speaking schedule, and a book deal with a major publisher.  I figure that’s someone you could learn from.  He’s also one of us.  He’s a dad juggling the challenges of raising his young son and growing a business.

So we sat down at the coffee shop he calls his office to talk.  Here are some of the things we talk about:

• Twitter
• Ways small businesses and solo entrepreneurs can find the time for social media
• Picking the right social media platform
• Using public speaking to grow your business
• The book he has coming out in Fall

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

You can pre-order his book now: UnMarketing: Stop Marketing. Start Engaging (That’s an Amazon affiliate link but you can find it on all the major online bookstores, or buy it in a real brick and mortar store when it comes out in August).

If you’re like a lot of small businesses and freelancers, you get paid for what you know.  You may be a consultant, or a designer, or an accountant (or you may want to be), but in the end, people pay you because you know more about X than they do.  Now if you’re smart, and you’ve been listening to me, you have put yourself out there as an expert in your field.  Whether you have a blog, podcast, or Facebook page, or even just a twitter account, you write or talk about what you know.  You share the good stuff others have written about your field.  You probably do many of these things.  So here’s the problem.  You do these things for free, but you also do these things for a living.

A friend wrote a post on her blog, that got me thinking about this.  Where do you draw the line between free and paid?  When do you stop and say, “I’d love to continue helping you, and take you on as a client.”

Anyone who has ever traded what they know for money, has encountered this.  Those if us who put some of what we know out there on Blogs, Podcasts, Youtube, etc., will encounter it more than others.  We put stuff out there for free, because we love teaching.  Of course we enjoy web traffic, and the clients it brings, but for most of us the reason we do it is rooted in a love for teaching.  If you are writing only to attract new clients, you will quickly find out there are better ways to leverage your time to increase business.

So where do you draw the line between doing things for free and charging for your knowledge and expertise?  That’s different for everyone, and really, I don’t think it matters.  What really matters is that you draw the line.  Some people draw the line at the “how”.  Here’s what to do, if you want my help doing it, you’ll have to pay me.  Some draw it at how much time the request may take.  It doesn’t matter.  People read your blog, or listen to your podcast etc., because they are getting value from it.  They ask for a favor, or advice, or your opinion, because they view you as a knowledgeable person.

Never apologize for charging for your expertise. Ever!  I hate it when I hear something like, “I’m sorry, but if we are going to continue this, I’m going to have to charge you.”   I want to reach out and shake the person screaming, “What happened to you?!”  What I really want to say is, “Grow a pair!  Why do you have such a low sense of self worth?!”   My doctor has never said, “I’m sorry, I know you got a lot out of that article I wrote, but it we are going to talk about how to get YOU healthy, then I’m going to have to charge you.”   If what you know is worthy of being paid for, never, ever, feel bad about asking to be paid for what you know.

Me?  I draw the line when it feels like work.  I love helping my friends build their websites and start businesses and move their businesses forward.  Once it starts to feel like work though, I’ll say “I’d love to continue helping you, and take you on as a client.”  No apology, no regret.  Sometimes it moves forward, sometimes it doesn’t.  Never be afraid of offending someone by moving things to a business relationship.  If this is greeted with surprise, or the person is put off by it, you should be the one who is offended.

Have you ever run into this?  How do you handle it?  Where do you draw the line?

Photo credit: Dave Keeshan

In this episode of Startup Daddy I talk about my new company, Memory Deck.  I hope that by talking about the process I’m going through as I start this new company, you will see that you can do it too.

While my partner and I have been researching and planning this for months, when it came time to create the company and form the LLC, we got the whole process done in a week.  Yes, I filled out the application at LegalZoom, and seven days later we had a company with a business checking account, and we were on our way.

I’m not smarter than you.  You can do this.

Download the Mp3

In this episode of Startup Daddy, I’m going to talk about a new business I’m starting, and some tools I am using to collaborate with a partner in another Country.  In today’s time saver quick tip, I’m going to talk about some things that will help save you some time and money when it’s time to file your taxes.

If you are interested in 1 on 1 coaching, go here.

Learn about Google Apps.

Check out Skype.

Friend me up on Facebook.

Add me to your network on LinkedIn

Download the Mp3 of this episode.

Leave a comment and tell me what you think, what you want to learn about, or anything else you want to share.

Photo Credit: Atrayu

This episode of Startup Daddy is my first Video Podcast. I made a video that talks about the different kinds of business plans and the elements that a business plan should contain.

About a month ago, I posted this video to YouTube. When I compare my statistics for the number of people who listen to this podcast to the number of people who visit this site, there are a lot more of you who listen than visit. I have absolutely no problem with this. I am honored that you choose to listen to me at all. So I made the video into a podcast episode so that the subscriber only folks can have a look.

Download Video

UPDATE: The first file would play in iTunes, but would not transfer to iPhones or iPod Touches for some reason. I have replaced the file, and all should be well now.

So what do you think? Should I do more video?

EDIT: Some of you listen to the podcast but don’t visit the site, so I turned this into a video podcast episode. Listen to your customers! I do :)

I made a video about the importance of creating a business plan whether you are just starting your business or looking for funding.  The video talks about the difference between a business plan you create for yourself, just to have a game plan for success, and one that you create to attract partners or investors.

Please give it a look and if you like it, I would appreciate it if you rate it and leave a comment on YouTube

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?

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?

In this episode of the Startup Daddy podcast, I talk about the importance of writing at least a basic business plan, and how to tackle some basic financial statements: Startup Expense Table, Break-even Analysis, and Cash Flow Statement.

When you write a business plan, the process is the juice.  Going through the research and thought necessary to complete the plan is what you get the most out of.  That’s why I give away the business startup tool kit when you sign up for my newsletter.  I want you to do this and I want to make it easier for you to do this.

You need to have a solid grasp on your financials to succeed.  So in this episode I talk about a few of the important financial tables you need to understand- the Startup Expense Table, the Break-even Analysis table and the Cash Flow Statement.

This episode’s Time Saver Quick tip is about Google’s Wonder Wheel- a graphical flow chart of search results that is great for brainstorming.

Download the Mp3 for this episode (right-click link and select “save link as”)

In this episode of the Startup Daddy Podcast, I talk about how to conduct initial market research to determine of there is a market or potential market for a particular product or service.  I also talk about some ways to evaluate an opportunity and some tools I use for market research.

Today’s feature segment is about research.  Specifically market research.  You have an idea, and you need to determine if it will make you money. The first thing you need to do is determine of there is a market for your idea. In other words, PROSPECTS.

I discuss ways to use Google Search, website keyword tools, Twitter, and others,  to determine if there are people looking for what you want to sell.

The websites I talk about in this episode are:

The Google Adwords Keyword Tool

http://search.twitter.com/

Scribd.com

Let me know what you think.  What are some tools you find useful to get a lay of the land for your market?

Download the Mp3 for this episode

In this episode of Start A Business With Startup Daddy, I talk about Affiliate Marketing.  It is a type of home based business that offers flexible hours and location, as well as leaving plenty of time in your day to spend with your family or to pursue other interests.

I explain what affiliate marketing is, the different types of affiliate programs, where to find and apply for affiliate programs, and where to go to learn more about it.

Places I mention in this podcast episode:

• Warrior Forum
• Amazon.com Associate Program
• Clickbank.com
• CommissionJunction.com
• Google Sync

Download the Mp3 file

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

In this episode of Start A Business With Startup Daddy, I interview Dan Zeidler, an expert in both Individual and Group Health Insurance coverage.  He answers your questions about getting health insurance for you and your family when you are self employed, and getting coverage for you and your employees after you grow your business.  In the Time Saver Quick Tip, I discuss Google Analytics.

I don’t have to tell you how important having health insurance is.  It can be a challenge however, to navigate all of the options and choices available to you and find a health insurance policy that you can afford.  In this interview, Dan shares his insight on choosing a policy that balances having the benefits you need with a premium you can afford.

Some things we talk about in this episode:

HIPAA: Health Insurance Portability and Accountability Act

NAHU: National Association of Health Underwriters

NAIFA: National Association of Insurance and Financial Advisors

HSA: Health Savings Account

Quick Tip:
Google Analytics

You can contact Dan Zeidler at Essential Financial Associates:
dzeidler@efaofaz.com
480-367-1260
www.efaofaz.com

Download the Mp3

In this episode of Start A Business With Startup Daddy, I talk about how you can have a modern, Web 2.0, interactive website for your new business, even if your computer skills are limited to sending email and searching Google.

I discuss free open source software you can use to create your website, as well as the advantages and disadvantages of certain platforms to help you decide which is best for you.

Links to items mentioned in this podcast:

Blogger
TypePad
WordPress.com (Get a site on THEIR site)

My recommended web host (with 1 click install of WordPress)

WordPress.org (The software to install on YOUR SITE manually- NOT 1 click install)

WordPress Theme Directory
All In One SEO Plugin for WordPress
Google XML Sitemap Builder for WordPress (You want the one for WordPress 2.1 and later)

FileZilla FTP software for Windows or Mac
Cyberduck FTP Software for Mac

Download the Mp3

In this episode of Startup Daddy, I give some tips about setting up your home office and get you started with branding by talking about getting a Business Identity Package for your new business.

Creating a Logo and making sure all of the things that project the image for your company- Logo, Website, Letterhead, Business Cards, etc.) all have the same over all look and feel, are essential in establishing the identity of your business and the foundation of establishing your brand.  In this episode, I reveal a cheap and easy way to get a professional designer to create your logo and all of the other things you will need.

Links to sites I talk about in this podcast:

99 Designs

Elance.com

Download the Mp3

Please take a brief 3 Question Survey about my upcoming Business Startup Course

Have a question or comment?  Please use the form below.

This video tutorial teaches you how to use the US Patent and Trademark Office website to search if a trademark is available. Before you finalize the name for your new business and file the paperwork for your LLC or corporation, you need to make sure the name is not being used by another business. One of things you can do to make sure your name is available, is search the USPTO database using their website.

The website is pretty confusing but this tutorial shows you how to find the search form and easily conduct the search to make sure your name is is not already registered as a trademark by another company. After watching the tutorial, go to The United States Patent and Trademark Office Website to conduct your search.

If you find this video useful, please share it with one of the social bookmarking sites below, and leave a comment for me here.

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.

In this episode of Startup Daddy, I talk about the differences between business entities.  I explain Sole Proprietorships, Partnerships, Limited Liability Companies (LLC), and Corporations, and why it is so important to protect yourself.

In the Time Saver Quick Tip, I recommend a virtual phone system to give you a professional image without the cost of additional phone lines or expensive PBX systems.

Recommended Resource for Filing Your LLC or Corporation Paperwork

My Recommendation for a Virtual Fax Line and or Voicemail Number
The Startup Daddy Community gets a 30 DAY FREE TRIAL, by following the link above. If you want a dedicated fax line, and/or all you need is voicemail, this is the way to go.  You get your faxes in your email inbox as a PDF, and if you opt for the PRO Service option, you get voicemail as well, with the ability to record a personalized message.  If the system hears a fax tone, it just accepts the fax.  If it is a caller, they hear your message and you get the voicemail in your email inbox, in the form of a WAV file that you can listen to on any computer or smartphone.

My Recommended Service for a Virtual Receptionist Phone Number
The Startup Daddy Community gets a 30 DAY FREE TRIAL, by following the link above . Big-business sound for small businesses.  Customers get a toll-free and/or local number that answers calls with a professionally recorded greeting. Callers can navigate the touch tone menu to find the right person by name, extension or department. Calls can be transferred to any phone, anywhere, anytime. It also includes features not found on traditional phone systems like advanced call screening and voicemail stored by phone, email or online.

Please take a brief 3 Question Survey about my upcoming Business Startup Course

Download the Mp3

(A great discussion took place in the comments on this post, going into the subject in greater detail.  Be sure to scroll down and read more.)

This is the premier podcast episode of Startup Daddy.  In this episode I talk about my entrepreneurial path, and how I made the leap from unhappy employee to financially independent home based business owner. In this episode you’ll also find:

• The basics of starting a business
• A checklist to get you started
• The 2 books that influenced me the most in the beginning.

Items Mentioned in this podcast:

Download your Home Based Business Startup Checklist (PDF)

Download your Personal Financial Checkup form (PDF)

United States Patent and Trademark Office Go here to conduct your trademark search

Getting Things Done, by David Allen

The E-Myth, by Michael Gerber

I did have a little fun getting an intro done, but I am not a professional broadcaster, and this is my first attempt at creating and editing an audio file, so I apologize if it doesn’t sound perfect and polished.  I will get better. So what do you think?   Let me know what you thought about my first ever podcast.  I can take it.  Let me know what you liked and didn’t like, or if there is some topic you would like me to cover.

Download this episode

I like to cook.  My family just made a huge move a few months ago, and we are renting a furnished house for a year, while we settle into the new city, and figure out the area where we want to live permanently.  Most of our stuff is in storage, and that includes most of my cooking tools.  So tonight, mashed potatoes are on my mind, only the peeler in the house is broken.  No problem, I just need to run to the store and buy one.  The problem is, the one I own (in a box somewhere) is one of those good ones, with the big black rubber handle and razor sharp blade.  The only one the store has is one of those cheap $2 metal handled ones.  So pealing 6 potatoes, which usually takes less than 10 minutes, ends up taking 20 minutes (not including the 20 minute trip to the store).  What does this have to do with starting a business?

When you have bad tools, doing even the simplest tasks will take you twice as long.  Accomplishing big things like starting a business, with bad tools, is next to impossible.  That is why I put together the Business Startup Tool Kit and why I give it away for free, to anyone who signs up for my newsletter.  It is far from every tool you will need to get your business started, but it will definitely get you started in the right direction.

It will take more than a business plan, and financial planning.  That is only the beginning.  You will need to educate yourself in every way you can.  If you are like most people, you will need to read books, attend seminars, take courses and join networking groups.  You hear about these people who seem to fall into money.  They have a good idea, and the next thing they know, they’re millionaires.  Urban legends.  Real success takes work.

I have been self employed for more than ten years, and I can tell you that for most of them, I have worked harder than most of my friends with 9-5 jobs.  True, I define working hard a little differently then they do.  I work shorter hours and I have the freedom to work when and where I like.  The difference is, I create every single dollar I make with my own imagination, determination, and follow through.  They have a boss, or a job description that says do x, y, and z, and you will make x dollars.  I have no such road map.

This is a good thing though!  As entrepreneurs, we have unlimited money making potential.  We do not depend on salary or bonus.  If I need more money, I work more, or launch a new product.  You need to keep you tool box full and current though.  You need to read the business books, find the good blogs in your field of interest, and participate in on-line forums.

I highly recommend reading,The E-Myth Revisited, by Michael Gerber , if you haven’t already.  This book literally changed my life at the beginning of my entrepreneurial journey.

So keep at it.  And PLEASE, buy the good potato peeler.  A few extra bucks will save you half the time.

Do you have something that has made your business life easier, or changed the way you approach your business?  I would love to hear about it.

Before you start doing the things, the tasks, required to start a business, I suggest you spend some time doing some serious thinking and planning. Not just setting specific goals, which is important, but higher plain stuff. The things David Allen calls 50,000 feet thoughts- career, purpose, lifestyle.

There is a very famous book by Napoleon Hill, called Think and Grow Rich. It’s one of those books that most successful people I know have read. In his book, Hill presents his concept of the Definite Major Purpose. It was a challenge to his readers, to ask themselves “in what do I truly believe?” You need to define this, and make sure whatever business you decide to start, is aligned with this purpose. If your business is in some way aligned with your core values, or doing something you truly love, you will have passion in your work. Passion always comes through, and greatly increases your chances for success.

For example, I love to teach. I get really jazzed when I can help someone do something they have been having trouble with. Whether it is something big like starting a business, or something small like helping my wife figure out how to sync her outlook with gmail, I really enjoy sharing what I know. I get real, sincere joy and inspiration from watching and helping others succeed.  I believe that is the most important factor in my success as a business start-up coach.

There are a lot of people who start businesses in a niche because they think it will make them a lot of money. They know nothing about the niche, and have no interest in learning anything about it. This can work, but I highly discourage it, especially for your first, or primary business. LOVE WHAT YOU DO!

I often say that most people spend the majority of their time awake, working, so if you hate your work, you hate your life.  Don’t be miserable for the majority of your waking hours. Personally, I would rather live in a box on the street.

Love what you do, and your passion, your enthusiasm, will come through in your work. People respond to that. So if you are trying to figure out what business you want to start, begin by making a list of things you like to do, and things you know about. You will be surprised how many great business ideas appear on that list.

Once you decide what business you are going to start, envision the outcome you want.  Picture the lifestyle it will bring you.  Imagine what you will do with the money you will earn.  Be as specific as possible.  Don’t think this stuff is important?  Ask any pro athlete or any successful person you know.  This is not only important, it works!  When you picture in your mind, the outcome you want to achieve, you make a connection to the outcome.  It becomes something real, and on a subconcious level, it becomes your reality.  You know you can do it, because it is something you have seen.

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.