Whether you’re a freelancer or entrepreneur, starting off right can definitely give you that unfair advantage for your business. Let’s give you a head start with the right tech, advice, and tools to start your first step in the digital world. In this episode we talk about the 6 basic steps that every business needs to get started. My name is Marion Owen and The Freelancer Head Start podcast is here to lend you a hand.
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Have you ever wanted to be your own boss but didn’t know where to start? Ever wondered how to start your own business or get your ideas off the ground? Do you feel stuck and overloaded in today’s tech savvy world? Do you shake your fists at these new fandangled websites and gadgets? If you said yes to most or all of these questions; this show is for you! The Freelancers Head Start podcast helps with just how and where to take that first step.
Starting a business may not be as hard as you think. Keeping the business running and operating is the real challenge. But we’ll get to that part soon enough. For now, let’s take things one step at a time. No matter what type of business you want to start, you will need these basic 6 steps.
1 Research Your Customers
Who are you trying to attract to your goods and services? Just because you have an idea, does NOT mean that people are willing to buy. You should test the waters before you dive in. Do NOT, I repeat, do NOT skip this step. You will sink time and money chasing a dream and eventually burn out.
You’re going to want to do what is called “market research”
- Who, specifically, are you going to be facing (niche)
- What is the problem that you’re hearing the most often
- What are they willing to pay
- Is it sustainable
- Where do they hang out
Finding your customers, what their pain-points, and understanding the value of your services is going to give you that head start that you’re looking for.
2 Register Yourself
Once you’ve identified your customers and audience, you can then focus on registering yourself. You’re also going to be working on what you’re going to call yourself. You can name your business almost anything you want. Registering your business provides legal protection for yourself, your goods/services, as well as your assets.
Work on a name for you business that mixes creativity and the market research you just performed. Right now, we’re not going to focus on if it’s already been used. You want to just have a brain dump of possible business names.
When you have a few names that you want to use, sleep on it. See how you feel the next day. Once you’ve honed in on a single name, it’s time to register. Each state has different requirements on registration.
You’re going then circle on a Business Structure for your business. They vary on what your goals are for the business, how much risk you are comfortable with, and what tax benefits are you after.
Most people choose either LLC or S-Corp. In a nutshell, LLC separates your personal assets from your business assets. This is good in case your LLC faces a lawsuit or bankruptcy. There are also tax benefits, profit/loss benefits, and legal benefits that may be attractive to you.
An S-Corp is a special type of Corporation that has a whole different range of tax benefits, profit/loss structure, and legal standings. Your business can also take on shareholders and other tax havens with an S-Corp. All of these are specific to each state
During registration, you will be notified if your name is already taken. Personally, I would check to see if the domain for you business is already taken THEN check your state’s Entity names. Quickly put in your business name into a search engine and see if a website exists. If you’ve found that both the Domain Name and Entity Name are available, go ahead and register!
Congrats! You’ve just made yourself legal. Let’s talk about getting your finances lined up to start taking in payments the right way.
Bonus Interview: LLC vs S-Corp and The Tax Man
3 Finances
Once you’ve finally registered with your state, you’re going to then hop over to the IRS and grab yourself a unique Tax ID. Why do you need a Tax ID? Well, because you’re going to reach a point where your business is making some decent money and you don’t want the government to come in and seize it all. Al Capone didn’t go down for drug charges…..i’ll just say that.
You’re also going to be using your Tax ID to open up a business bank account. This is your new financial operating point of your business. Head down to your favorite bank and ask them about the details of their Business Accounts. Some banks have yearly fees, or minimum amounts, or other special requirements. Go ahead and create an account with an institution you feel comfortable with.
The other reason that you will want a Business Bank account is because you will eventually get to a stage where you may need to take out business loans or other credit-required actions. Even if you think you will never take out a loan or borrow money, you want to set yourself up now for future in-case situations. Building a relationship and credit with your bank will help in the long run.
Make sure you only spend or receive money that is specific to your business. DO NOT MIX YOUR PERSONAL MONEY WITH THIS BANK ACCOUNT. You will screw yourself over royally because you’ve just created a DIRECT path to all of your personal assets. Which will-be and can-be seized if you’re ever faced with a lawsuit or bankruptcy.
That Tax ID can also be used when purchasing bulk or wholesale items. You’ll be doing taxes at the end of the year (or quarterly) with that specific Tax ID and will be tied to your profit/losses for your business.
Now that you have everything registered and set up to take in money, let’s get you online!
4 Get Online
When you registered with your state and federal level, hopefully you found that your business does not exist as a website. Hop over to a domain registration website such as WhoIs.com or domaincheap.com. From there, you’re going to register your website name. A website name is basically an online address that tells browsers and device where to go when people pop in your website name. They’re relatively cheap and should run you about $10-15/year.
After you’ve registered your domain name, you’re going to then want hosting. Hosting is the space for you physical files that live on a server. This will be your images, text, files, and content that live on your website. Based on your business, your hosting can fluctuate in price and complexity.
You can use all-in-one solutions such as Squarespace or Wix. You can also hire a professional to take care of all of this for you. Choosing an all-in-one solution may box you into a product that limits what you can and can’t do with your website. A professional developer will be able to develop a solution for you that will match your business goals and online platform you need.
You’re almost done with the basics. Next step is to get the word out about your business.
5 Marketing
Marketing is one step that a lot of freelancers and entrepreneurs tend to skip or gloss over. Marketing does not mean that you have to have that 50’ billboard on the main highway. You can start off small and grow to needing a second blimp during the Super Bowl.
There are essentially 2 different routes to marketing; organic and paid. Each route requires you to have already done research on your customers. We need to know where they hang out, what problems they are having, how you can solve it, and what they’re willing to pay. If you can answer these questions, then you can easily market.
Organic marketing is using free tools such as word of mouth, referrals, social media, emails, and your website. The cost for organic marketing should be low to none since you’re relying on people naturally finding you. Expect to see slow but steady response if you’re consistent.
Paid marketing is a combination of banner ads, search engine ads, or video ads that are created. You would then create rules about where, when, and who sees the ads to ensure maximum ROI. The larger the audience and the longer the ads, the more this route will cost. You will see the quickest response with this route, but it may not translate into a direct sale every time.
Start off with organic marketing to get a rhythm going. Once you start to get a stronger and stronger following, you’ll be able to maximize the effectiveness of a paid advertising campaign.
6 Get Help!
There is not a single organization or company that has been successful by itself. There are is a mountain of resources and help out there that you can take advantage of. Do not be afraid to reach out and just ask. You’ll be surprised to find that a lot of people are very willing to help with what you’ve got going on. By you asking someone for help on a particular topic or piece of your business, your telling that person that you value their opinions and view them as an expert. How can they NOT be flattered?!
Do not think you have to do this alone. Join a local Meetup.com group. Go to a local Chamber of Commerce event. Talk to people who are in your industry. You want to always be talking about what you’re doing and what you want to do. You never know who you’re going to meet that will help you get over that little hump to tackle the next big thing.
There are so many different avenues for getting advice or help in your business. Social media is possibly one of the easier platforms to raise your hand for help.
You will also need to be open and willing to take a step back and let the expert handle things. Hire help, consultants, and other freelancers when you are moving into an area where you are out of your depths. Do not take it all on; you should build a team of people who you can off load tasks or actions for you business.
Conclusion
Getting a head start as a freelancer or entrepreneur can be daunting at first. But once you start down the path of getting that first client, it becomes easier. You’ll find your stride and identify what does and doesn’t work for you. Don’t think that you have to eat that elephant in one bite!
In the next few articles we’ll be diving deeper into the different aspects of starting down the path of being a freelancer or entrepreneur. The different tech, tools, and advice that will be covered can give you a leg up in your business. We’ll also be talking about challenges and pitfalls that some people face in their own journey.