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.
Managing the finances of the business
· Have Stewardship (Good Manager) Mindset
Debit / Credit
EIN or S.S.
Link to Paypal
Link to Intuit Quickbooks
Self Employment Taxes vs W2 Taxes
12.4% Social Security
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.
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.