In this episode, we’re talking about starting and operating a small business with Jordan Kennedy, the owner of a small photography, videography and media business. Among other things, we’re discussing finance, marketing, sales and working with clients.
How to get started in a small business
1. Find your niche
· Do what you’re naturally good at. Don’t start something because it has the potential to make a lot of money. You may end up successful but miserable. Do what you like and what you’re passionate about.
· When researching your niche competition is a good thing - sign that the service or product you plan on providing is in need.
· Focus on one thing until successful. Trying to do too much too soon will only lead to a lot of work that will not produce a return.
2. Be very specific with your goals
· Quarterly goals, 1-year, 3-year, 5-year goals.
· When it comes to revenues, break them down to into smaller numbers so they’re easier to obtain.
o If you need to make $25K in a quarter, what does that mean in terms of sales?
o How many items do you need to sell each week or each month?
o How many speaking engagements do you need to book?
o How many workshops do you need to teach and how many students do you need in each?
“You can’t manage what you don’t measure” Your success relies on defining measurable goals, regularly documenting and assessing your progress and reviewing your results.
Add professionalism to your business
· Be as legitimate as possible
· Have clear and concise communication
· Have well-thought out, written contracts and other documents (stay away from the “handshake”)
· Don't be afraid to say "no!"
· Be organized
· Style Guide - Color Palette, Fonts, Look & Feel (pictures)
· Target customer?
· What’s the promise you make to the consumer. Brand is a promise.
· Consistent on website, social media, emails, ppt presentations, any marketing and products.
Delegate whenever possible
· Do the things that only you can do. This will grow and make your business profitable.
· Delegate the administrative stuff or anything else you’re not good at.
· Hiring people may cost you money but if they’re the right people they will do a better job and they will do it faster than you. This will free you up to do more of what will directly benefit the bottom line.
· If you're a creative, a great way to make passive income is through social media and stock photo/video.
· YouTube can be a great way to make passive income when utilizing ad-sense and monetizing videos.
Renting vs. Buying Equipment:
Purchase your "core" equipment and then rent "specialized" equipment. This could apply to tools, production gear, etc.
Sometimes you just have to do the math. If you have 5 prospective jobs in a single year and the equipment you need could be paid off with the same amount as it would cost to rent, then go for it!
Know the value of and longevity of what you're purchasing.
Ex. What will the item re-sale for it 5 years? Is this technology going to be obsolete in the near future?