Business

Two Major Pieces of Financial Advice for Starting Business

Two Major Pieces of Financial Advice for Starting BusinessIn a recent blog post, I touched on the importance of being financially ready to start your own business. But it goes much further than just having money saved up before leaving a full-time job. Here are a few things to know before giving up your job’s steady income to become a business owner.

Let’s assume you already know what you’ll need to be making to not only survive, but bring in a profit. And let’s also assume you can be comfortable without the certainty of steady income. If you’ve gotten those crucial steps out of the way, the next few pieces will be basic financial advice that every business owner should have.

1. Separate Your Personal and Business Accounts

This may seem obvious, but you’d be surprised how easy it is to put off opening separate bank accounts. For those who start off with a side hustle like I did, it’s only natural to at first put your initial income straight into your personal checking account. After all, that’s where you’ve been putting your paychecks, right? Trust me when I say that when you don’t separate business and personal income, things get messy. Because I always had a side hustle and kept that in the same place as my full-time job’s salary, I didn’t think anything of putting my first client’s check in there too. The first couple months I made this major mistake, and when it came to tax time, oh boy, it wasn’t pretty. 

But it isn’t just for tax purposes. It’s really to keep things organized so you can always be on top of your finances without everything being mixed together.  It’s essential that you’re always analyzing profits and losses, or, income and expenses. I am extremely particular about how I organize my finances, and I like to see all the incoming and outgoing money and how it all plays into my overall profits each month.

My advice is to open not only a business checking account, but a business savings too. Why? Every month I take 25-30% of my net profit and transfer it right over to my savings account. And I don’t touch that business savings account all year. Come tax time, it’s a heck of a lot easier to dish out the money when a) it’s already there b) I’ve basically pretended all along that that money is for Uncle Sam.

2. Hire a CPA.

After years of doing my taxes on my own, I couldn’t imagine hiring someone to do them for me. But when it comes to owning a business or being self-employed there are a ton of different things to think about. Your taxes will never be as simple as they once were, so hiring a professional to guide you will make things much easier. 

Find an accountant that will not only prepare your returns, but who will give you tax planning and business advice. This person will also help you with filing quarterly taxes and staying organized throughout the year. And while hiring a CPA may cost you a bit more than using an online software, keep in mind you can deduct accountant fees. 

 

5 Important Questions to Ask Yourself Before Starting a Business

Starting a business can be one of the most exhilarating and nerve-wracking things you’ll ever do. I cannot stress enough the importance of focusing on the exciting, fun new changes along the way so that minor stresses don’t become setbacks. When preparing to start a new venture, there are a few important questions to ask yourself to make sure you’re on the right track. While you can’t plan for every challenge that may come your way, having a clear path to walk down will make those hurdles easier to tackle.

1. What’s Your Goal?

By nature, I’m not always a goal-driven person. I often prefer to take things one step at a time and figure it out along the way. But that doesn’t bode well for starting a new business; having goals (multiple!) are crucial for success. Without a clear idea of where you want your business to go, you’ll find yourself stumbling through the beginning stages. 

Set aside some time to write out your goals and outline what you can do to accomplish them. Include your short-term goals (1 – 12 month period) as well as long-term goals (1 yr an beyond). Once you have your goals written out, create a plan to help you accomplish them. It may also help to write down your motivation for starting a business in the first place: what you want to accomplish, what you hope to gain out of the experience, who you aim to help, and so on.

2. Are You Financially Ready?

When you first start a business, there are a few financial pieces to consider. Maybe you’re leaving a full-time job and will no longer receive a regular paycheck. Maybe your business requires significant startup costs. Maybe you need to consider the costs of being self employed, like paying for your own health insurance and equipment. 

I’d strongly urge you to have some savings in the bank before you jump into a new venture. In the case that your business doesn’t immediately take off, you’ll have savings in the bank to aide you along the way. Before I left my full-time job I made sure I had saved the equivalent of a year and half salary. The goal was to never dip into it, which thankfully worked out, but had I not gotten enough projects right away, I had that as a safety net.

Aside from having a chunk in savings, you’ll need to consider what you realistically need to be making as an entrepreneur. Figuring out your hourly rates, project-based rates, and package options are things you should have a clear idea of before starting. Keep in mind that rates don’t have to be set in stone, but having numbers in mind to work with will certainly help when it comes time signing new deals.

3. Which Laws do You Need to Be Aware of? 

First thing’s first, decide on the legal structure of your business. Whether you register as a limited liability company (LLC), a sole proprietorship, an S-Corp, do some research on the laws or talk to a lawyer about the pros and cons of each structure. 

Most states will require you to register your business name. There will also be fees involved, so prepare for that too. I am registered as an LLC so I pay a whopping $500 to the state every year. Gulp. While yes, it is a tax deduction, it’s still something to prepare for.

4. Who is Your Support Network?

I was fortunate enough to have a mentor before I even realized I needed one. My former boss was my #1 cheerleader while I was at my full-time job. And while it seems wild to think that he encouraged me to leave his company, it’s because he saw great potential in me that I couldn’t even see before. Having someone who knows all the great things you’re capable of will be a huge help when the tough days get you down. They’ll be there to remind you why you started and why you must keep going.

Choose a mentor who will not only encourage you along the way, but someone who will guide you. Someone who is also an entrepreneur will be your best bet. Not only because they’ve been there, done this before, but they’ll be able to answer a lot of questions you have in the beginning. In my case, my mentor is an enrtepreneur of multiple ventures, but also a lawyer. Major win win.

5. Do you have the right attitude?

Starting a business requires a special mix of personality and character traits. There isn’t a formula that makes one individual more successful than another, but there are certain traits that business owners have. You’ll need to be passionate, disciplined, and dedicated. You’ll need to have effective communication skills, a positive mindset, and enough grit to carry on through the difficult times. 

Moreover, keep in mind that you will constantly be making decisions. Not only for your business, but for your employees, your clients, and anyone else involved. Being able to weigh out pros and cons and confidently make decisions are key parts of being a successful business owner.

Are you considering starting a business? Got more questions? Feel free to reach out or drop a comment below!

Digital Marketing Entrepreneurship FAQ – Your Questions Answered Part II

Since starting my company, I get a lot of questions on what running a business is like. I’m often asked how I got started, what it’s like working for myself, and how to balance it all. This is Part II of answering some frequently asked questions. This set came from reader and friend Aislinn. 🙂 See Part I here! Let’s go!

Q: What type/title position did you begin your career with? Did you have previous experience or did you learn more on the job? I know you began with Boston Burger Co. and read about your transition into your current business, but I’m more so interested in how you landed there and where the journey in marketing really began for you.

A: I always enjoy telling people that I have my Bachelor’s in Spanish. I had all intentions of entering a Master’s program for legal translation, but by the time I graduated my plans changed. I did use my degree for the first few years out of college, but as my interests and jobs changed, so did my career path. And meanwhile, I had started my healthy living blog which was a huge part of why I eventually took an interest in all things marketing. My initial job at Boston Burger Company was actually a hybrid sales & marketing role for their salsa brand, and while in that role, I convinced them to let me take over their social media. No one was really running it, and at the time, Instagram was becoming so huge that it was a waste not to be utilizing the platform. During this time, the team saw that my greatest strengths were on the marketing side, and I slowly took on more projects. Eventually they created the role of “Director of Marketing” which was the position I was in before I went out on my own. There are more answers to this here!

Q: On that same topic, how did you market yourself to positions? I find experience has been key, but for someone with limited experience, I’ve always felt capable and confident enough in myself that I could learn the things I needed to succeed after securing on job. Was there a certain way you highlighted your abilities to potential jobs that you think was key in getting you where you are?

A: At any job I’ve held, I’ve always been someone to ask for more projects and take on more responsibilities. I don’t like to be idle, so I was always eager to be doing something in addition to my usual work. A huge part of it is curiosity, but also expressing the willingness to learn, that people will recognize. As far as finding work for my current business, the vast majority of my projects have been word of mouth while a good chunk has been through Upwork.com, a fantastic resource for freelancers.

Q: What creative marketing skills do you find the most valuable and/or useful? Whether this be using an editing software, photography, writing, analytics, etc. In other words, what is something most worthwhile learning?

A: I think it depends on what kind of marketing role you’re in, but in my opinion, it’s the ability to write. We’ll never not have to use words to express ourselves, whether that’s in writing blog posts, sales copy, newsletters, advertisements, etc. Learn how to write, and learn how to write well. Best way to do that? READ more!!! Or be super dorky like me and actually buy books on grammar and vocabulary. 😉 

Q: What do you wish you had known before entering marketing?

A: There are times when I wish I had taken some marketing courses in college, but to be honest, I don’t think I even knew what marketing was until I was already doing it for my blog. To me, marketing is learning the psychology of how people work and what makes them interested in specific things. Learning how to pique someone’s interest and make them take a specific action is what you have to figure it out. 

Q: What are your best pro-tips to new marketers? This can be related to the job itself, life in general, or anything in between.

A: A BIG piece of advice — seeing as how I did not major in anything related to what I do now — is that YOU CAN LEARN SO MUCH ON THE INTERNET!!! All caps because it’s true!! I would never tell anyone not to go to college, but holy moly, between online courses, podcasts, webinars, YouTube, and blogs…it’s a gold mine of education.

Hope these answers helped some of you! Always feel free to send more my way! <3

Entrepreneur vs. Employee: The Pros & Cons of Each Role

Entrepreneur vs. Employee: The Pros & Cons of Each Role

Before I started my company, I went over the pros and cons of leaving my full-time role to become an entrepreneur. I had always had at least one side hustle (sometimes multiple) and knew that I was fully capable of something bigger. My end goal was to combine all of my current clients and side hustles to be enough to take the leap. Having been on both sides, there are some major pros and cons to both being an employee or an entrepreneur. First I’ll go over a few things, then I’ll get into specifics about my own business and life. 

Amount of Hours Worked

Employee: As an employee, your full-time job probably consists of around 40 hours a week. You go in, keep busy for 8 or so hours, and go home. You may be limited in the specific daily schedule you commit to work, ie 9-5 and your schedule is often set by your employer. On the flip side, having a structured schedule each week gives you a good idea of what’s ahead.

Entrepreneur: When you first start your business, you may put in 60-80 hours per week. But once you establish yourself and/or outsource tasks, you can greatly reduce the amount of hours you work. In addition, you may be able to greatly replace the income from a day job in less than 40 hours by charging a higher rate as a contractor. It all depends on how much you want to work and meeting your own needs. 

Work/Life Balance

Employee: Typically as an employee, once you’re done with work you can clock out and go home. And often times you can forget about work completely once you’re out of the office. While this isn’t always the case, it’s easier to create a good work/life balance in a structured role.

Entrepreneur: It can be really difficult to get out of work mode, especially if you work from home. You’re always near your phone or computer, making it super tempting to check on things. But, as I mentioned above, you may get to work less hours than an employee and therefore get more free time with family and friends.

Work Stress

Employee: As an employee, my stress level was always pretty low. I knew what was expected of me, I knew when I could go above and beyond, and I knew how to keep my bosses happy. I didn’t worry about the daily operations of the business, but instead, fulfilling my own role. 

Entrepreneur: When you first start out, you may be a one woman show. It can take time to build a team and adjust to outsourcing income. Projects can fluctuate and you always need to be working on multiple streams of income. You also wear many hats. You don’t just provide a product or service — you market, network, find suitable employees, and act as your own accountant. However, the direction of your business is all up to you.

Money

Employee: Your income is usually limited, unless you work on a bonus structure. You put in hours, and in return, get a paycheck for the same amount each week. You can move up the chain, but eventually your income is capped. On the plus side, you know those paychecks are coming and you don’t have to chase anyone down for your money.

Entrepreneur: The possibilities are endless. The money you bring in and the rate your business grows is all up to you. The sky really is the limit here. Lose the fear of not getting a paycheck and instead think about the multiple streams of income that will bring you so much more. 

General Work Life

Employee: As an employee, you have bosses (sometimes multiple) and coworkers. Often times you are put on projects with coworkers that you may or may not like. This may be a struggle for someone who prefers to work on their own. On top of that, many employees put in their time and go home, especially if the extra mile isn’t going to get them anywhere.

Entrepreneur: It’s all up to you to earn your income. Nobody is going to earn it for you. It can be such a hustle in the beginning, and you may have a tough time balancing projects, taking on only what you can handle, but also fearing you may not grow if you don’t take on more. 

My Honest Experience

Amount of Hours Worked: My first couple of months, I worked a ton. I had a couple big projects but was hustling to find lots of little projects to fill those voids and grow. During the summer, business slowed down. I got nervous! I remember telling my former boss and he assured me things always pick back up around September. And boy, did it pick up. 

Work/Life Balance: I often struggle with this, especially given that I’m in the world of social media — which is 24/7. It’s so easy for me to open my laptop or grab my phone to see what I might be missing. Then I end up getting roped right back into something. I also really like to complete things, so I have a hard time putting my laptop away until I feel like something is finished. During the first couple months, I made sure to give myself a little time each day to completely unplug and not think or talk about work. It wasn’t easy. Eventually, around the six month mark, I made sure I had one day a week to mostly put work away. Now this isn’t to say I was working 90 hours a week; I just struggled with time blocking. After the first year, I really learned how to work in increments so that I wasn’t working all day long.

Work Stress: As I mentioned, the “stress” in the beginning was making sure I had enough of an income flow to make up for the full-time job that I had left. However, the general work stress greatly reduced as I was really focusing on the industries I loved and the type of work I enjoyed most. Being my own boss is also a huge part of why I know this was the best decision.

Money: One of my biggest concerns about leaving my full-time job was not getting a paycheck every 2 weeks. Looking back, this seems so silly. My former boss convinced me that I was basically already at the top where I could be in the company and that I could be making so much more working for myself. When I say the opportunities are endless, I mean it. Within 6 months of starting my business, my income surpassed the six-figure mark. A couple months after that, my income had actually doubled from when I was an employee and that’s where I am today.

General Work Life: This was, by far, the best decision I’ve made career wise. I loved what I did in my full-time role, but I really love what I do now. I choose which projects I want to work on, I pick which clients I want to work with, I decide how much or how little I want to work. There are certainly times where I ponder taking on a bunch more clients and hiring a team, but I truly love being a one-woman show. Never fear that you can’t grow as a single-owner business. Do what you love, and outsource the rest.

Take the risk, make the leap, and figure it all out as it comes. Enjoy the whole process.

Six Skills Social Media Marketers Need to be Successful

A common misconception about those who manage social media is that it’s just a matter of slapping up a photo with a caption. When done right, social media is so much more. I can’t tell you how many times I get asked “Oh so you take photos for Instagram?” Well, yes. Technically I do. But the bigger umbrella of digital marketing requires more skills than that. In order to be a successful social media manager, there are a few tasks you must master. 

Keep in mind, I didn’t go to school for this. Heck, I didn’t even take a single marketing class in college. My major was Spanish! Some of this I was already skilled at, and some I learned along the way. It truly goes to show that you can often create your own path with determination and hard work.

  1. Copywriting – First, let’s define copywriting. Simply put, copywriting is the craft of arranging words to make things sell better. Think of it as the text version of salesmanship. It’s about writing copy that is compelling, engaging, valuable, and helpful. Copywriters work on marketing materials like websites, emails, brochures, catalogs, menus, and of course, social media content. In the social media world, copywriting is essential for not only creating social media captions, but also ads, email campaigns, blogs, and more. Captivating copywriting will do at least one of the following: define the product or service, focus on the benefits of the product, provide a solution, contain strong action verbs, give a sense of urgency, or include a strong call-to-action (CTA). 
  2. Customer Service – Social media has given us this huge opportunity to provide great customer service to current and potential customers. This skill requires someone to be empathetic, solve problems, and provide solutions and answers. Customer service on social media can include responding to feedback, answering questions in a timely manner, and — most importantly — facilitating engagement. This part of social media can be a 24/7 job, so having a pulse on all activity is crucial.
  3. Design – Here we have an essential skill to pair with copywriting. The art of designing both still images and videos is essential for social media work. But fear not — you don’t need a graphic design background to be able to design. At this day and age, there are plenty of tools to help you create eye-catching content. Some of my favorites are Canva and PicMonkey for images and Animoto for videos.
  4. Public Speaking – Not all social media work is done behind the computer. It’s a very common misconception that we all hide behind our laptops. I would strongly urge any social media manager to get comfortable being on camera. IG Stories and FB Live can be a great way to showcase your own knowledge and attract potential clients. If you are doing social media for your own company, sharing your passion for your product or service is an incredible way to customers to see what makes your company so special. And to really stand out as a social media manager, I urge you to be able to give presentations or host workshops. This will set you apart from other marketers and will allow you to make connections with others in your industry. 
  5. Strategy Planning – A critical aspect of social media management is understanding the strategy behind everything you post. You’ll need to consider the business goals in order to create effective campaigns. A huge mistake I see brands making is throwing up content just to have something up. Know the why behind your content. Understand the big picture and how all this content works together. Consider outlining goals, defining your target audience, and determining which platforms will help you scale your efforts. 
  6. Analytics – Knowing how to measure the impact of your marketing initiatives is extremely important. It’s just as much science as it is an art. You will assess business metrics, website traffic, leads, conversion rates, engagement, likes and comments, and overall reach. This will help achieve business goals and allow you to attribute a post’s reach to said goals.

Remember, not all of these skills are required to have a career in social media marketing. I recommend being a master of at least a few of these to get your career rolling. Above all, passion and a true interest in the work will get you just as far. Feel free to reach out with any questions by leaving a comment below! 

What skills do you think are required for a career in social media marketing?