Protect Yourself

     Having insurance is important for a few reasons that all revolve around protecting you and your business.  It's good to have insurance on yourself to assure that your business doesn't die and your family is taken care of should something unfortunate happen to you.  You should also insure principle people in your company that may cause a major disruption in business if something were to happen to them.
     Also you have to recognize that you are now living in a "sue happy" world and if you are conducting ANY ACTIVITY (business or personal) where you're business logo is displayed then that puts a target on your back.  Or if you are participating in any activity where you are being perceived as acting on behalf of your business then your business could be a target of a law suit.  Meaning if you are off work and you get in your car to go from your home to the store and you get in an accident on the way there or back and you have a logo (of any size) anywhere on your car then the other person has the right to sue your business. 
     A lot of industries require some type of industry related or malpractice insurance.  But it is also important to insure essential equipment of your business.  If an equipment failure would be catastrophic for your business then you need to know that you can be compensated for at least some of your lost revenue should that happen.  You should also have insurance on the building you operate out of also for both liability and damage purposes.

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Marketing Is A Must

     Your business is up and running now, and less than a third of the people who said "you should start your own business" are actual customers.  According to smallbiztrends.com 30% of small businesses fail in the first year and more than 50% never saw the end of year four.  What is the cause of this phenomenon and how can this be avoided?  Believe it or not a lot of these failures can be attributed to one aspect of marketing or the other.  Marketing is a wide field and it would take several books to truly explain every aspect of it, so this will just be an overview.  Although sometimes marketing "just happens" in most cases this is not sustainable.  Therefore, it is imperative that you have a marketing plan or strategy and a dedicated marketing budget.  The Objectives of your marketing plan should be S.M.A.R.T. or Sustainable, Measurable, Achievable/Actionable, Relevant and Time Bound.
   The very first thing that you need to do when it comes to marketing is to define your target audience.  As my Marketing Strategy professor would say "If you try to be everything to everybody you'll end up not being anything to anybody".  This simply means that you can't please everyone, and most who try end up failing miserably.  So with that being said you have to determine who, when, and where you will serve.  The biggest mistake that people make when segmenting a target audience is to start with demographics.  Although, you make use of demographics as an end step, the problem with starting with demographics is it can lead to your business being or perceived as being stereotypical.  Not to mention you can miss out on a lot of potential customers that should be in your target audience but don't fit the demographics.  The best way to segment is to use psychographics.  For example, a premium wine company may want to target "Married women making over $40K/yr with 2 to 3 kids that enjoys romance movies".  This target speaks to the mindset and interest of your intended customer and the choices that they have already made, as apposed to demographics in which people had no choice or control over.
     The next step is to build Brand Awareness.  There are many ways to do this depending on your budget.  If you have a sizable budget you can work through the traditional channels of TV, radio, billboards, and bus stop banners.  These channels can be very effective but they also can be very costly.  However, if you have a medium to low budget for marketing, the online marketing is the way to go.  Lets face it we live in a digital world and in most cases the majority of your customers are constantly interacting with the internet or social media.  So having an online presence is essential.  The first step in establishing an online presence is to create a website (or have one created) with a dedicated landing page. The landing page is the page that someone lands on when they click your ads, banners or links.  Generally online advertising works on a bidding system.  With a bidding system space on the viewers web page is auctioned based on each of the advertisers max bid amount for the keywords selected.  Now before you just throw you hands up in defeat thinking that the companies with the deepest pockets will win every bid there are a few other things that you should consider.  Both Google and Facebook place relevance and ad quality above bid price, this helps the "little guy" rank higher in search and ad listing.  So after you have created a quality ad or display banner you should bid using  the CPM method to increase Brand Awareness.  Cost Per Mille or CPM is closely related to traditional advertising as you pay your bid amount for every 1000 views.  This is both cost effective and it gets you a lot of exposure.  Now if you are running an extremely low budget marketing campaign then guerilla marketing is the way to go.  This is a process where you basically do whatever it takes to get your name or project in front of people.  Most people leave cards or flyers everywhere they feel it would stick or generate relevant traffic.  For example, a company with a product women would value could leave business cards in the ladies bathroom everywhere in the target market.  Or if you have a budget like Jay-Z then you can leave partial lyrics to songs on your upcoming album in the most unsuspected places causing people to become curious about what it was, who was doing it, and why.
     For both your business plan and your marketing plan it is important for you to do a competitive analysis.  You should always know what your closest competitors are doing.  You need to know exactly who your biggest competitors are, the similarities and differences in your products/services, and what are their prices.  Knowing this information allows you to create a sustainable competitive advantage based on your brand, offering, or relationships once they are established.  Also, it lets you know how attractive your prices are to customers.  For example, if you are selling used tires and you find out your competitors are selling them for $35 and you are selling them for $20, then you are shortchanging yourself.  Or if you are selling them for $45 then you know you are overpriced, unless you have an attribute that puts you in a niche category in which people are willing to pay more (i.e. you only sell specialty used tires).
     Next is positioning.  This is where you show your value to your target market.  One of the core principles of marketing is to be customer-centric and to provide a value that meets a customers specific need or needs.  Most consumers hate to feel like they are being "sold to" and are not open to just another business trying to sell them something.  Yet, if you can show the consumer that you offer a value to them, whether real or perceived, then they are more open to your business because to them you are fulfilling a need.  Positioning is sometimes confused with placement (one of the 4 Ps of marketing), but instead of the physical location of your business/product/service positioning more so refers to the position you hold in a consumers mind.  For example, people shop at Whole Foods because its a place where they can get healthy or organic products.  Therefore, despite prices which a lot of people would view as being high, shoppers at Whole Foods are loyal because of the value they feel that they are receiving.
     Although most business owners feel that you only have to market something once and then just let it work it's magic, in reality its an ongoing process.  One of the biggest processes in Marketing is to evaluate and adjust.  This allows you to see what's working, what isn't, and what just needs a little tweaking.  For instance if your company is running a Google Ads campaign on a Cost Per Click (CPC) basis and one of your ads is under performing.  In this situation you can first inspect the ad to make sure that it is of high quality and relevant.  Then you can check you keywords to make sure that they are relevant and if the bid amounts need to be adjusted.  If everything still looks ok to you then you can try A/B testing.  This is where you would allow the original ad to run as your A and then you make a few changes to the original ad and run it as your B.  Allow both ads to run at the same time for a specified period of time then evaluate them both.  Then discontinue the one that performed the worst, and create ad C to run simultaneously with your highest performer.  This is a process you would reevaluate every 3 weeks to a month, when you get 2 high performers you can either let both run or pick the highest performer.  Even though that was an example for a Google Ad, its pretty much the process you go through when reevaluating you entire Marketing Plan.
     A major part of evaluating your marketing plan and your business as a whole is conducting a S.W.O.T. analysis.  First you want to look at your Strengths, these are the things you are doing right and are going good.  Next evaluate your Weaknesses, or the things that need to be improved.  Then evaluate the Opportunities that are in front of you (i.e. the ability and demand for an expended product/service line).  Finally you want to access your Threats, this can be competitors, budget, infrastructure, internal company issues, or external factors that can affect your business.  You should conduct a S.W.O.T. analysis quarterly and adjust accordingly.

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Becoming An Entity

     Now you are at the point where you are ready to take the legal steps required to be a legal business entity.  A lot of people choose to do "handshake business" and get paid under the table in order to be able to take home all of their profits, but ultimately this is bad for business.  This practice can be damaging both legally and in the way that potential customers view you.
   The first set in becoming a business entity is to visit your states Secretary of States website and search for "Starting a Business".   In Louisiana it will take you to Geauxbiz, here you can submit forms to register your business a Corporation, S-Corp, L.L.C., or Sole Proprietorship.  You might be asking what's the difference between the four types of entities, here's a quick description.  A corporation is a business entity that is legally separated from its owner so that the personal liability is minimized.  Corporations are allowed to issue shares of easily transferable stock in order to fund its business ventures.  One of the biggest benefits and drawbacks of Corporation (depending on the circumstance) is taxation.  Because of high corporate tax rates, most small businesses shy away from this option.  An S-Corp has all of the benefits of a corporation but S-Corps don't pay taxes.  Rather they issue dividends to their shareholders and the shareholder is responsible for reporting the taxes as well as their individual taxes.  A Limited Liability Corporation or L.L.C. is one of the most commonly used entities for small businesses.  LLCs are less formal than corporations and have a lot more flexibility.  What appeals to most companies about LLCs is the fact that the owners are neither partners nor shareholders but they are considered as company members.  The limited liability status protects members for being accountable for company debt.  Also LLC's utilize Flow-through taxation, this means members only pay taxes on their earnings and not for the company also.  This allows members to avoid the double taxation seen in corporations.  Sole-Proprietorship and Partnerships are individually owned non-incorporated companies.  A lot of people like this form of business because the owner has complete autonomy (other than industry regulation) in the way that they run their business.  However, the major drawback is the fact that the owner is 100% liable for all actions of and against the company.  This means that if sued the plaintiff can come after the owners personal property as well as company property.  The same goes for the IRS if the company is found in default of taxes.  It's important to note, that anyone that is doing business and has not filed to be an entity will be treated as a sole proprietorship if found liable for any damages or back taxes incurred while you are unregistered.  Also most states and cities can inflict fines and penalties for operating an unregistered business.  
     You can also use Geauxbiz to fill out forms to register with the states department of revenue and apply for a state employer ID number.  After you've gotten registered with the state, you now need to apply for a Federal Tax ID Number with the IRS.  The final step to the registration process is to apply for an occupational license in your local city or parish/county.  In some cities you do this at your local Chamber of Commerce, but for others (such as in New Orleans) you have to apply at City Hall.

    After you have completed these steps then you have all the documents you need in order to open a company bank account and turn the lights on at your building (if you aren't a home business).  As mentioned before, taking these steps makes you look more favorably in the eyes of your customers and future customers.  Most consumers won't do business with companies that they don't trust.  So seeing that you are a legitimate business helps to instill consumer confidence and can lead to more business from unsuspected sources.  Also after you complete these steps you can legitimately seek out funding through small business loans, grants, venture capitalist, and philanthropist.  At its core becoming a legal business entity is the difference between just having a side hustle and truly being serious about your business.

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You've Got to Have A Plan

     Ok so you've completed the process of acquiring a trademark.  You're off to a great start but you aren't quite ready to open your doors for business yet.   Next you need to come up with a business plan, a blueprint for how your business is going to be ran from top to bottom.  The business plan should include your Vision, your Mission Statement and an outline of your strategy. 
    A company's Vision is a statement outlining what you as the company hopes to achieve.  The vision should focus on the future and should be something that can be longstanding.  The vision should also briefly 

Vision, Mission, & Strategy work together

outline a company's core values and core beliefs which should remain true regardless of the state of the business.  For example Amazon's vision is-
"To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online". 
Your vision doesn't have to be overly complicated, it should actually be simple and to the point.
     The Mission statement is similar to the vision but instead of laying out a vision for the future the mission tells what the company's purpose is, and what goals it wants to accomplish now.  What is the reason your business exist? What activities are you doing (or hope to do) now?  An example of an effective mission statement is Apples- 

"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad."

This is the 2017 revision of the mission statement.  To the contrary of the vision statement, which should stand the test of time, the mission statement is generally revised periodically.             

The 3rd piece to this puzzle is Strategy.  Strategy is basically saying how are you going to accomplish your short term (mission oriented) goals as well as long term goals (vision oriented).  Its awesome to have goals and say all of the things that you want to accomplish but its just amounts to "hopes and dreams" if you don't lay out a roadmap as to how your business is to achieve these benchmarks.  Your strategy should evolve and change with the business climate, as in lot of cases doing things the same exact way while the business world is changing around you could cause your business model to become outdated (unless your niche is an original formula that must be strictly adhered to).  One of the most effective strategies is Chick-fil-A's "Raving Fans'" Strategy (click on the link to read more).  Unlike the company's vision or mission the corporate strategy isn't just a sentence or two but is generally very detailed sometimes even to the smallest element.

     After you've added these major components you now need to develop Standard Operating Procedures (S.O.P.s) for business operations.  S.O.P.s help ensure that your business runs smoothly and with continuity.  After your S.O.P.s you need to come up with policies and guidelines that instruct you and your employees on what happens when something doesn't go according to plan (It is essential that all employees receive a copy of these policies and procedures also.  Most employers distribute them in the form of an Employee Handbook).

If you have any further questions click Majestic Marketer to email or leave a comment below
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Trademarks

One of the hardest things to do in a business is to say that you were the first to do something. Even when it comes to your name, who's to say you REALLY came up with it? This is where trademarking is very important. Trademarking can literally be the difference in having a million dollar product, and just saying you created something while others make millions. There are 2 ways to register a trade name or trademark, the first being a state registration and the second being a national (or Federal Trademark). You might be asking, What's the difference? and do I need both? Well the difference is, if you plan on doing business just in-between state lines then all you would need is a state trade name registration. This gives you all of the rights and protection of the federal trademark, but only covers business carried out within the state in which you are registered. For example a music business selling woodwind instruments, that is doing business exclusively in California, could have a registered trade name of Reeds & Co. While at the same time a retailer with the family name of Reed can have a Jewelry company in Louisiana named Reeds & Co. Both names can be legally trademarked and used simultaneously with little regard to the use of the exact same name which were trademarked in each's individual state. In Louisiana you would register your trademark here. But what if you plan on doing business outside of your state? Or what if someone in your state is trying to use the same name as you. If this is the case you would need to register your brand or business name as a federal trademark. The first thing you want to do is go to the U.S. Patent and trademark Office and search for available trade names. After you've found a suitable trademark then fill out the trade mark registration form and just wait for your approval. If you don't receive an approval then you are sure to get a letter detailing which steps you may have missed or what you may need to improve on. Once you've received your trademark registration then you are in shape to represent yourself as a "real business" and use your trademark legally anywhere you choose to. You make have to show proof that the name or idea was originally yours and then you can enjoy the spoils of your reward. Not to mention the fact that once you own the legal rights to a name or idea then you can demand any other to cease and desist, which is to stop using your property without proper licensing. Feel free to visit any links on this page or direct any questions to Majestic Marketer.

This video is very informative about the trademarking process and even covers a little of the information that will be addressed in the future blog  "Becoming an Entity"

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What It Takes To Get A Business Started.

     Have you ever known someone that was so good of a cook that people felt that he or she should open his/her own restaurant?  However, once they did start their own business in 6 months to a year they were going out of business.  The fact of the matter is, most people who start a business are excellent at what they do but they suck at the actual business aspect of things.  Starting a business isn't as easy as getting a sign and a building with the lights on and just doing what you do best.  Rather its a combination of preparation, strategy, patience, knowledge, and a little bit of luck.
    Follow me as I discuss a few of the many steps that you must go through in order to get a small business started.  This blog is meant to cover the processes that are essential for getting a business started.  However, there are sure to be other steps that are particular to your specific business, and I urge you to consult your professional governing bodies for those instructions.  Also, if there is anything that you feel that I may have forgotten or if you feel that this blog was a help to you, then please feel free to leave a comment below.

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