GMR 31: Starting and Operating a Small Business Part 2

Episode 31
This is episode 2 of 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.

SHOW NOTES:

Managing the finances of the business
 

·      Have Stewardship (Good Manager) Mindset

“Be diligent to know the state of your flocks, and attend to your herds; For riches are not forever, nor does a crown endure to all generations.”
— Proverb

Personal

  • Social Security

  • Personal Accounts

  • General Checking

  • Short-Term Savings

  • Emergency Savings

  • Giving Account

  • Debit / Credit

Business

  • EIN or S.S.

  • Business Accounts

  • Business Checking

  • Business Card

  • Retained Earning

    • Link to Paypal

    • Link to Intuit Quickbooks

Self Employment Taxes vs W2 Taxes

Business Structures:

  • Sole Proprietor

  • Partnership

  • LLC

  • C Corp

  • S Corp

Taxes

  • 12.4% Social Security

  • 2.9% Medicare

  • 15% Federal

  • 0%-13% State

1. Should I quit my job to start my dream business?

Don’t quit your day job just yet!

  • Starting a business can be financially draining.

  • Making a profit can take a while - 2 or more years is common.

  • Having a base income coming in will remove the stress of having to make a profit quickly.

    • Save a year's salary to live on while you build the business.

    • Spouse working can help cover some of the living expenses.

    • Working part-time or full-time while you build the business can provide the needed income.

 

2. Do I need a Support Network?

Being a business owner can be an isolating experience at times.  Especially if you’re a solo business owner.

  • Friends and family for personal support and encouragement.

  • Accountability partner - set goals and hold each other accountable.

  • Business coach - help you find solutions to problems and work through tough decisions.

  • Facebook and Linkedin.

  • Mastermind group (peer group).

    • Discuss problems and solutions

    • Hold each other accountable to goals

    • Support and encouragement when you want to quit.

3. How do you find clients?

  • Word of mouth (referrals) are generally the best.

  • Website.

  • Social media.

  • Marketing and advertising.

 

4. How do you find and work with clients?

  • Identify your ideal client.

  • Have a process for client acquisition.

    • Interview them as much as they are interviewing you.

  • Price your products or services correctly.

  • Offer a great deal of value.

 

What not to do when running a business

1. Don’t quit - keep trying

  • Running a business is like a marathon.

  • You will have ups and you will have downs, possibly in the same week or even in the same day.

  • You will gain clients and you will lose clients. That’s just part of having a business.

  • I don’t know of any business that hasn’t experienced failure and disappointment, often many of them, before success came.

  • Instead of becoming discouraged, focus on becoming resilient, learning how to handle stress productively. Don’t give up! Keep trying! Learn and grow from your failures. Success will come eventually.

    • Don’t try to do everything yourself.

    • Don’t forget why you started.

 

2. Don’t stop evolving

  • Nothing you’re doing now is set in stone. Your strategy, your marketing plan, your target market - it must change and evolve with time.

  • The world is changing more and more rapidly each day.

  • The best way to remain relevant is to keep your eyes open for changes that will impact your business and your mind open to new ideas. You must stay flexible.

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