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
- Social Security
- Personal Accounts
- General Checking
- Short-Term Savings
- Emergency Savings
- Giving Account
- Debit / Credit
- 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
- Sole Proprietor
- C Corp
- S Corp
- 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.
- 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.