Business in General
Some Questions to Answer About Your Business Structure
Among the many choices the entrepreneur faces in setting up a business from scratch is deciding upon the type of structure he/she will set as the framework for the enterprise.
Sometimes the alternatives are few and the choice is readily apparent.
At others, it may be more difficult to know what’s best.
Typically, the decision about the structure of your business is influenced by the following factors and the answers you come up with to some pertinent questions like:
1. What’s my vision, long-term, for the business? Do I plan to stay a small solo business or do I have a more grandiose vision of a large corporation looming in the future?
2. Do I plan to seek help in the ownership or management of my firm? Do I plan to keep firm control of my business or am I willing to give up a substantial portion of the control and assets?
3. What is the best organization method given my tax situation, my other annual earnings, investments and assets, and my willingness to expose my current personal assets to law suits, liens, collateral status, etc.
4. What is most cost-effective and practical for the type of business I have?
5. What structure will allow me to keep the largest percentage of the after-tax profits, and at the same time, avoid the most hassles and risk?
6. Will there be any unwanted constraints placed upon me or the business by the city, county, or state if I organize in a certain way?
7. What structure affords my business the best legal and asset protection?
8. Do I want to be in a position to seek outside investment? How am I going to finance my business if I decide to expand and grow beyond my personal capacity to fund the growth?
9. How are the other top businesses (my competitors) in my niche structured? How long have they been in existence? Do they know some things that I ought to learn from? Can I follow their example? (Survey the competition, but don’t just automatically assume that your competitors’ situations as the same as yours.)
10. Will my business structure be dictated by my suppliers and wholesalers? If I have a sole proprietorship will that negatively impact my status in the eyes of those whom I rely on for goods and/or services, my financial institutions, or my merchant account holders?
By answering all these questions, or at least considering these issues, you should have a fairly good feel for several issues:
– Whether you plan to grow your business and expand into a larger and more complicated enterprise in the future;
– How you feel about personal risk and exposure to legal actions;
– How much of your “baby” (the business) you’re willing to share;
– How you can avoid excess work, paperwork, and undue stress.
Here’s some good news.
While it’s best to anticipate the longer-term success of your business, the structure can be changed as the business develops and matures.
You won’t be limited to riding the same horse over the complete journey.
Many solo entrepreneurs begin as sole proprietors and move to partnerships and corporations as the business activity warrants.
Usually it’s the need for help in managing or financing the business that dictates this type of move.
We’ll review the pros and cons of differing structures in another discussion.
Above all, if you are undecided, don’t know what’s best for you, or if you have questions or concerns, seek out competent professional legal assistance before you commit to one structure or another.
To your online business success,
Steve Browne
www.stevebrownedirect.com
Biz Opps - Make Money
Mentor or Coach? Which Do You Need?
I can tell you how to get any successful business owner to mentor you!
It’s very simple . . . don’t ask him to be your mentor or coach. If you do, he will nearly always turn you down.
Let me explain by first clearing the air a little about online mentors and business coaches.
To me, at least, mentors and coaches are not the same thing. I realize, however, that the two terms are confused and used interchangeably online all the time.
I believe a mentor is a friend, a teacher, a supporter, and an advisor.
I believe a coach is a something different. To me, a coach is a private tutor or trainer, someone who is typically retained under contract to give one-on-one direction and specialized training fit to the needs of the client in order to get that client to a higher level of output or performance. A coach is also a motivator and a cheerleader that sees the client/coach progress as a team effort.
Certainly, I acknowledge that there is some cross-over in the roles and functions of mentors and coaches.
Why does all this matter? Let me explain my thinking here.
If you want to hire someone to help you individually in your business, IMO, you should go out into the marketplace specifically looking for a successful business owner that does paid coaching.
If you ask most successful business owners to be your mentor they will almost always turn you down. They will worry that if they become an “official” mentor:
- it will become a major time drain for them – time away from their own business
- they may not be able to provide you with what you really need
- they will let you down when they can’t constantly hold your hand
- you are just one more “iron in the fire” that complicates their business day
- named association with you may not be in their best interest
- they may not appreciate your valued time by being themselves lazy, unteachable, or unwilling to follow the advise that you are genuinely giving – in essence, they are a waste of your time.
Can you hire or pay a mentor to do that? IMO, you are confusing terms again and what you really want is a paid coach. When compensation, or contracts, or specific time commitments, or performance measures are involved, we’re in the realm of coaching.
So if you want a mentor (a teacher or advisor), here is what I suggest:
- Befriend a wise and successful business owner but don’t abuse your relationship by expecting handholding, specific time commitments, or special “preferred” status of any kind
- Be willing to observe how your mentor does his business without personally taking up his time. Watch and learn how he runs his business, dissect his selling system, his lead generating activities, his funnels, his web site, his email list, his newsletter, his follow-up. If you can, buy his product(s) and become his subscriber and see what he does for you, his customer.
- Offer to help him in any way you can with no reciprocation needed (or expected) on his part
- Cultivate your relationship in various professional ways without being a stalker, a groupy, or like a clinging child under foot. Offer to give him time in your specialty, take him to lunch occasionally (if you are nearby), give him credit for your successes, support his business.
- Very important: don’t abuse your relationship or “expect” anything beyond friendship.
I have often heard people describe how much their wonderful mentors have helped them, but if you were to ask that mentor what they had done, they may looked puzzled . . . as though they hadn’t really done anything special for that person except to be a friend.
If you ask me to be your coach or mentor . . . I will say “No thanks – nothing personal , but I turn down all such requests.” But I am happy to talk to friends about business, my own experiences, and what I believe or have learned about best practices, tools, and approaches in IM. I even try to help strangers when I can (ever read any of my blog or forum posts?).
Is this post making sense? I hope so. Contrasting views are always welcome.
To your online business success,
Steve Browne
www.SteveBrowneDirect.com
Advertising
Direct Sales Marketing
Direct sales advertising and the Internet”
The other day I spent some time at the bookstore, the giant bookseller franchise that I often frequent when I’m searching for some Internet selling tips and advice that I can’t find in the books on my own bookshelf.
Large retail book stores are cool places, much like a mini library where the atmosphere is pretty laid back and browsers are free to pull a book from the shelf and sit down to read a chapter or two.
I must admit that their intentions are obviously to sell books rather than play the role of a library for the cheapskates (like myself) who usually purchase books online at Amazon. But still, they don’t seem to mind too much if I’m there and sometimes walk out empty-handed.
Anyway, I was in this local book store checking out the latest books on marketing and advertising on the Internet. I was a little surprised at what I found.
Most of the books seemed to be focused on the cool advertising campaigns of Madison Avenue, those that had probably won some award for creativity, style, or unusualness.
Book after book contained mostly examples of graphic designer’s work and the reasons why that particular ad had been singled out for mention or praise. It almost appeared to me that “winning” advertising was all about cleverness, coolness, and being nominated for some obscure little designer award.
My personal reaction to all this glitz and glamour was simply, “I wonder if any of these fancy ads actually made any money for the sponsor?”
Yes, I realize there are multiple reasons to advertise: building brand, creating buzz, developing product credibility, and other things all are important outcomes hoped for in an ad campaign.
But on the Internet, in direct sales advertising like many small online businesses do, it’s my opinion that glitz and glamour usually distract a prospect more than they convince him to buy.
Which brings me to the question: “What is your ad attempting to do?” Do you know what you hope to gain from launching an ad online? Are you designing and writing the ad to win some creativity award or are you just trying to make as much money as you can?
If your answer is the latter, I believe you need to keep the ad straightforward, simple, and without the confusion of numerous graphics, flashing banners, twirly things, and cutesy sayings.
You’re not trying to impress an art director or entertain a crowd of customers with your HTML and JAVA skills. Your narrative is not written to appeal only to techno-geeks, industry insiders, and the few people that can speak the jargon of the technical experts.
Direct sales marketing is all about grabbing attention, pulling the reader into the story with emotional involvement, ushering him down a narrowing path and ending with his credit card action on your behalf.
Ad copy and carefully chosen words accomplish this task much better than distracting and annoying graphics.
Remember that selling direct to the customer is best accomplished with simplicity of purpose, focus on benefits, engaging dialogue, and a call to action right then and there.
To your online business success,
Steve Browne
www.SteveBrowneDirect
Biz Opps - Make Money
Learning Entrepreneurship
How do high school and college students learn to become entrepreneurs?
Does the current public school system do an adequate job of training young people to become business owners?
Years ago I made a new friend in Chris Elliott who found my blog and decided to subscribe. Chris was a high school senior about to make a choice between colleges and was interested in entering the business world after school was completed.
Chris reminded me that there was a legion of potential small business candidates among us – the future business leaders that will blossom in the coming generation. Most of the attention I pay to solo business owners goes to those who have a wealth of knowledge and experience under the belt. Chris was eager to learn, bright, and anxious to dive into operating his own business someday … hopefully, sooner than later.
Really and practically, there is no logical reason why young online business owners can’t follow their dreams, and even thrive in today’s online business environment. In fact, it will become harder and harder to distinguish the age of the business owner as time goes on because the demographics of the work force are changing significantly.
There was a time not long ago that conventional wisdom taught us all to land a good job with a solid company, build up tenure and longevity, move vertically through the ranks with a progression of promotions, accumulate personal wealth through saving and investing in a 401K, and retire at 65 with a pension and a nice little savings nest egg to spend in the golden years.
Oh, how times are changing! The old way of working for one company all one’s life is probably gone forever for almost everyone!
Solid companies are going bankrupt, being folded into mega multi-nationals, and experiencing downsizes in employment and reductions in employee retirement packages, even for the company elite. Pensions are rapidly disappearing as are golden parachutes for long-time tenured employees and management.
Entire industries and marketplaces come and go at a blistering pace in today’s economy. The ride is dizzying and the stakes are high for anyone that steps off the curb into the business fast lane.
It’s amazing to me that the curriculum in most high schools, and even in colleges (to a lesser extent), barely includes education and training in small business development. With the number of new small businesses popping up all over the globe now and in the near future, it seems to me that our educational system is letting our young people down in many ways.
Small business development education is typically a hands-on, learn as you go, on-the-job training type of learning. But there is a set of basic business principles and skills that could very effectively be taught to young people, regardless of the business subject, that would help them avoid common pitfalls and learn the “correct” or accepted methods of business operation.
Young people like my friend Chris are hungry for helpful information. They recognize that their life’s path probably won’t be set or controlled by a large corporation. They want help, guidance, and information now that will allow them to chart their own course and succeed and profit from their own ideas and hard work.
I am continually amazed at the strength, creativity and resourcefulness of today’s young people. As I look at them, and compare what I see to my own carefree (more like careless) attitude when I was in high school, I have every hope and reason to believe that the world will be a much better and kinder place with the coming generation at the helm.
Before it’s too late, and as we prepare to hand the business ball off, it’s my hope that successful entrepreneurs with a wealth of personal knowledge and experience will step forward and offer their insights and wisdom to next wave of entrepreneurs standing in the wings soon to be taking center stage.
Ask yourself the question: What can I do to help a young person get ahead in life and business? Can I be a mentor or coach to my own children/grandchildren in finding their own unique career path as they exit the public school system? Going to college may not be the very best option anymore (as it used to be) for graduating seniors.
I would be interested in your take on this subject.
To your online business success,
Steve Browne
www.SteveBrowneDirect.com
-
Tech9 years agoStartup adds beds and Wi-Fi to buses to turn them into ‘moving hotels’
-
Tech9 years ago5 Crowdfunded products that actually delivered on the hype
-
Tech9 years agoFord’s 2018 Mustang GT can do 0-to-60 mph in under 4 seconds
-
Tech9 years agoHulu hires Google marketing veteran Kelly Campbell as CMO
-
Tech9 years agoNASA seeks to build a quieter supersonic plane for passenger flight
-
Tech9 years agoNetflix was the top grossing app in Q2, with mobile revenue up 233%
-
Tech9 years agoMicrosoft Paint is finally dead, and the world Is a better place
-
Tech9 years agoMobile Google CEO Promises 11 Daydream-compatible phones
