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.