Woman Around Town’s Editor Charlene Giannetti and writers for the website talk with the women and men making news in New York, Washington, D.C., and other cities around the world. Thanks to Ian Herman for his wonderful piano introduction.
Have you ever thought about starting a business? If so, that’s not surprising. Many people want the thrill, independence, and, if done properly, the monetary awards of launching something new. No matter where you are in your journey, you may have encountered obstacles or have questions. How do you find your customers? Should you incorporate? Do you need a partner or partners? Jason Veduccio has been there and he’s ready to help by answering some of your concerns. Click to listen.
Have you ever thought about starting your own business? Do you worry that you don’t have what it takes to make that venture a success? You’re not alone. Jason Veduccio has launched businesses and has also worked with many entrepreneurs and venture capitalists. He offers advice that just might help you achieve your dream of being your own boss.
Many questions people frequently ask about starting a business are rooted in some aspect of incorporating.
There isn’t a formula or an algorithm for it (yet), so I think it’s wise for everyone to look into it. Incorporating can be expensive, but it can also protect you. Know what it is, and what it does, before making a decision.
The creative process aside, the decision to incorporate becomes a factor when selecting a name for your business. The name you choose must be available. Do your own research by simply Googling it. Then check with one of the online domain registries to see if the .com version of it is available. If not, it may be best to keep looking.
For those of you that have already trademarked a name for a product you’re planning on selling, something such as “Carla’s Cookies”, know that trademark laws vary from state to state, even from federal to state, so this usually means multiple filings to register the business. The trademark is not the business.
Don’t assume.
Assumptions can be expensive.
One of my overall recommendations is that every business’ first-hire to be a licensed accountant. Please don’t be among the many that seem to think you need to be making a ton of money to need an accountant. You need one as soon as you can pay one. Generally speaking, it may be the best investment you make.
How do I find an accountant?
The best way to find one is through referrals. Ask around on some of your social networks and always double-check all referrals. Don’t have any income yet to pay an accountant? Get creative, consider offering to barter with whatever you’re offering.
Good business is your business.
It doesn’t matter if you’re trying to open a creative design studio or sell chocolate chip cookies, plan on spending 2X more time on your financial books than you now think it’s going to take. If you’re a better accountant than anyone you could hire, than you probably should be opening an accounting firm. Don’t mess with your money; get everything lined up from the start.
For those of you that didn’t get everything lined up know that it’s not too late to get some accounting support.
Don’t be intimidated by the language of it all ? it’s there to be as specific as possible when discussing an action.
What 2-3 things should I know if I’ve never run a business before?
What the difference is between a “P & L” and a balance sheet
A profit and loss statement, or P&L, is a summary of the revenues, costs and expenses of your venture for a specific amount of time ? let’s say the first quarter of the year, or “Q1.” A balance sheet is a statement of assets, liabilities and capital, or equity, at a specific point in time. Assets must equal liabilities (plus equity) to ‘balance out.’
How to file your taxes correctly.
Did someone a while back recommend an accountant? That’s right, this one’s screaming at you people. How else can I say it, don’t go it alone. If you have nobody, try SCORE, a non-profit that provides mentoring to entrepreneurs.
Keep records of everything.
I know, you save all your receipts already. Now you need to take it to a new level. You need to take document filing seriously even if it’s something you’re doing digitally. Save everything until your newly hired accountant says you can toss it.
Overall I recommend proper preparation over speed when it comes to establishing the foundation of your enterprise. If you didn’t read it clearly before, let me say it again, get a professional to help you, and don’t rely on the Internet (ahem).
Next time, let’s speed thing up and discuss “marketing-in-a-hurry.”
Part 6 – How Do You Know If Your Business Idea Stinks?
Jason Veduccio, author of The New American Dreamer: How to Land That Ideal Job in a Nightmare Economy is a hard-working entrepreneur following his dreams, and he wants you to dream, too. Drawing on his experiences working with companies on marketing, technology, hiring, and workplace issues, his regular column will demystify the job search process and identify strategies for moving up the corporate ladder. Founder of In1Concepts, Jason also knows the ins and outs of launching a new business. He welcomes your questions and can be reached at jason@in1concepts.com.
Chapter 6 – How Do You Know If Your Business Idea Stinks?
Let’s look at your business idea again.
Let’s suppose you regularly bake chocolate chip cookies, and everyone at the bake sale loves them. You’re seeing people pay for them at the sale, and now wonder how you could sell even more of them for profit. You come up with a catchy name and an idea for a logo.
Is this a good business idea?
The real answer is: who knows? There are too many variables to know. But I have noticed strong business ideas seem to have a few things in common.
Look at your idea and ask yourself these questions:
Is your idea adaptable? See change as constant.Even if your idea happens exactly how you see it, the markets will change and you need to adjust. They may love chocolate chip, but prefer oatmeal cookies in winter. That one-page business plan? Think of it as a living document, meaning you update it every day if you have to.
Is your idea scalable? Being scalable (which is your idea’s ability to grow and still handle the work) is great but not always possible in the beginning, especially for those that go it alone. But have some idea of how to handle more business than anticipated.
Is your idea meaningful? Many things motivate people to start their own business but the greatest motivator is a passion for some aspect of it.If the idea is fun or better yet, meaningful to you, it’s likely a strong idea. But you know this.
The majority of new business owners I meet struggle with their idea or some aspect of it. Was making the one-page business plan more difficult than you suspected? Not to worry.
Go back to it as many times as you have to. The only idea that’s any good is the one you try.
Jason Veduccio, author of The New American Dreamer: How to Land That Ideal Job in a Nightmare Economy is a hard-working entrepreneur following his dreams, and he wants you to dream, too. Drawing on his experiences working with companies on marketing, technology, hiring, and workplace issues, his regular column will demystify the job search process and identify strategies for moving up the corporate ladder. Founder of In1Concepts, Jason also knows the ins and outs of launching a new business. He welcomes your questions and can be reached at jason@in1concepts.com.
If you’re like many Americans, you don’t think you can start your own business, simply because you don’t really know how. This series is for you – maybe sitting somewhere in a job you dislike, or sitting there squashing some dream you’ve had with the weight of a thousand uninformed excuses.
“If only I had someone to write a business plan for me.”
Not every situation is the same, but for those of you that get more charged up by the idea of “doing” and less so by “thinking”, making a business plan can keep you from moving ahead and starting your business.
I believe you can start your business with less than a business plan – maybe even without one.
Commonly held thought on the topic says that if you want to raise capital (capital being more than $10,000), generally you’ll need a business plan of some form. But, when starting a bootstrapped business from your home, for little or no money, you can get started with a business 1-pager.
Let me be clear: fundraising aside, business plans can be a great advantage. Ifyou have one, or want to make one, then go for it. But I’m all about being practical, actionable and attainable and there’s not enough research to convince me that business plans are all that for some entrepreneurs.
On business plans:
It’s about “making” the business plan. The most important part of making a business plan is the process of making a business plan. It forces you to think clearly, set goals, and in some ways, verbalizes your commitment to the project. The end results are going to change. Most mega-companies started out with business plans that don’t resemble their services today. You can and should come back to the “thinking” behind a business plan at some point.
The main principles of a good plan can be articulated in one page. For larger business plans, some owners may include sections on sales, marketing and financial projections. If done correctly, this one-pager will guide your business.
The sections of a 1-page business plan can be anything you choose, however there are four sections I suggest you include:
The “What I’m Gonna Do” Statement:
Write out exactly what you are going to do for the customer. Always keep the customer in mind when making this 1-pager. Think goals, short and long term, and be specific. How will you know you achieved them? By when?
The “Who I’m Gonna Do This For” Statement:
Who are the target customers? Be specific. Don’t say “everyone.” Only amateurs say that. The smaller your target to start, the better, as it allows you to carve out a niche.
The “Why People Will Pay for It” Statement:
Why are they going to buy or pay for this and how will things like time, competition and source materials affect this relationship?
The “How I’m Gonna Do This” Statement:
This is where you say what you will do to make or provide the product or service, get raw materials, do outreach, get customers and all that goes into your process.
That’s it. One page. Maybe 750 words tops. Can all this be more than 1-page you ask? Well, well, well, now look who wants to make a business plan!
Next time we’re coming back to that idea of yours – so if writing these statements is difficult, it may be your idea that needs tweaking.
Jason Veduccio, author of The New American Dreamer: How to Land That Ideal Job in a Nightmare Economy is a hard-working entrepreneur following his dreams, and he wants you to dream, too. Drawing on his experiences working with companies on marketing, technology, hiring, and workplace issues, his regular column will demystify the job search process and identify strategies for moving up the corporate ladder. Founder of In1Concepts, Jason also knows the ins and outs of launching a new business. He welcomes your questions and can be reached at jason@in1concepts.com.
With your customer-centric, value-adding idea in tow, you’re moving one step closer to starting your own business.
It’s time to start building it, and yet you don’t want anyone to steal your idea along the way.
No offense ? but I think it’s fair to say nobody will.
Here’s my take on NDAs, and let me be upfront about this: I’m not a lawyer.
The first thing I’ll say is if you have access, get a lawyer. A lawyer and a good accountant are two people you will need now, and always. If you have access to one, ask a lawyer about NDAs.
From my point of view, I think NDAs are mostly unnecessary and can actually hurt your business’ chances of getting off the ground.
Here’s why:
Most startups fall under two main categories when it comes to funding:
Bootstrapped – mostly self-funded, so you remain in full control of the venture.
Equity Funded – funded by outside people who are issued shares of stock in return.
Whether you’re self-funding or looking for investors, you need to be able to discuss your idea in full bloom. You need to be able to get feedback on it, or it won’t go anywhere.
So should you make everyone who hears about it, sees a deck on it, or listens to your pitch, sign an NDA? Absolutely not and here’s why:
Most professional investors won’t sign it.
Think about it, if every investor signed an NDA for every pitch or idea they heard, then they would need to track each one, year after year, and protect themselves against legal actions taken against any one of them, no matter how ridiculous. How could they perform their work? Most venture capitalists or VCs won’t even talk to someone who asks them to sign one.
Not to mention that many people who are serious about business, and who knows how things really work, these people know that ideas are meaningless without execution, so stealing one is useless.
Most good people won’t need it.
Still not convinced? How about this, if you’re asking someone to sign an NDA, then you are admitting you have some doubt about this person’s character. So tell me, even WITH an NDA, do you really want to share your million dollar idea with them? Thought so.
There’s one other reason you shouldn’t be doling out NDAs to potential investors, or anyone – you need to push your business out there and any hint of secrecy about it is not only a turnoff, but is counterintuitive to how the world works today with connections and sharing viewed as ways to propel your brand.
Instead of all this, why not just talk to people you trust, and then when you feel like you must gain their trust, shoot the person an email saying something like:
Hello,
Thanks for hearing my pitch.
Please don’t share anything about project XYZ with anyone for now.
Thanks,
Your Name Here
See, wasn’t that easier? There are exceptions to all of this, especially when potential patents are concerned, and if there’s existing revenues at stake then consult a lawyer. But as far as holding on too tight to your idea in the early stages, I say let it go and see how far it flies.
Jason Veduccio, author of The New American Dreamer: How to Land That Ideal Job in a Nightmare Economy is a hard-working entrepreneur following his dreams, and he wants you to dream, too. Drawing on his experiences working with companies on marketing, technology, hiring, and workplace issues, his regular column will demystify the job search process and identify strategies for moving up the corporate ladder. Founder of In1Concepts, Jason also knows the ins and outs of launching a new business. He welcomes your questions and can be reached at jason@in1concepts.com.
Okay, let’s kick around the concept of a “great business idea.”
If possible, let’s kick it to the curb.
I know this may disappoint some of you, especially after you’ve spent years developing the “big idea.” Don’t worry, it may be helpful later, but when starting out, an idea on paper is, well, a paper idea. However, my very unscientific and proprietary invention, the Good Business Idea Detector, does look at some key data points to assess if there’s an increased chance of success for that sketch on the back of a bar napkin.
In nearly every industry there’s a new idea generated every, oh, I’d say, every second or less. Are some of these ideas better than others?
Certainly.
But only on the cocktail party circuit.
We could discuss the value of a particular business idea for hours, but I rather not. I’ve heard so many they start to sound alike.
The reason for this is that a paper idea is based on unproven value and nothing changes that. There are so many factors that come into play when developing an idea that nobody can tell if it truly is a great idea. (Do you really think you would have invested in the ThighMaster if you had the chance?)
In seeing lots of new businesses make it while others struggle, I do find a few things make even average ideas look as though they had potential.
Here are a few factors that can make your idea a more effective one:
Do you know more than the average person about the potential market for this product or service?
In hearing years of business pitches I’d estimate that 90% were too heavily product-centric. As much as these businesses thought they were talking and thinking about their customers, they only did so to validate the demand for their product. Don’t do this! Always focus tons of attention on the customer; their behavior may be a good indicator of how they will see your product or service.
Do this: we will discuss better ways to understand your customers down the road, for now, take out a piece of paper or in the notes section of your smart phone, and write down every single thing you know about these people who are going to willingly give you their money.
How much do you believe in it?
If nobody believes in your idea, it doesn’t matter, if YOU believe in it. How many stories could we insert here about the rejection a musician or architect or product designer faced before making their work a reality?
Do this: write one sentence about why you believe in this idea and include one fact along with all of your gut feelings
Does your idea explicitly and clearly give more than what the customer already has?
Again this is about adding value. An idea that is creative and great for a target audience may be just that, creative and great, but if it’s not worth the cost, it won’t float.
Do this: make a list of things you pay extra for, laundry detergent, sneakers, and bottled water as examples, and write down why you pay those extra few cents for each. Try to capture the reason in one or two words such as “convenience” or “trust.”
Now do one last thing for today – email me your business idea and I will respond with an assessment. You want me to sign an NDA? No way. Okay next time we discuss the ins and outs of NDAs.
Jason Veduccio, author of The New American Dreamer: How to Land That Ideal Job in a Nightmare Economy is a hard-working entrepreneur following his dreams, and he wants you to dream, too. Drawing on his experiences working with companies on marketing, technology, hiring, and workplace issues, his regular column will demystify the job search process and identify strategies for moving up the corporate ladder. Founder of In1Concepts, Jason also knows the ins and outs of launching a new business. He welcomes your questions and can be reached at jason@in1concepts.com.
You have your two lists: the one with things you want to improve on and the other a list of things “to do.”
It may look like this:
List A
Things I want to improve
Public speaking
Piano
Kick-boxing
List B
Things that other people need
Driving kids around
Financial planning
Shoe repair
Nothing jump out at you so far?
Try for a moment, to think of this as a puzzle, and to put it all together you have to consider the many possibilities. Could you become a concert pianist? No, you say. Okay, fair enough.
Are you a competent financial planner? Definitely not you say. Fine then.
So what good are these lists, you ask?
If you already know what business you’d like to start ? but just don’t know how ? then stay with us, because we’re coming back around to move forward in just a moment.
For anyone who doesn’t already know: putting things down on paper is the best way to work through something inside your head. Look at what you wrote and spend a few days thinking about each item. Say you know nothing about, nor would you enjoy working in shoe repair. What is it about shoe repair that made it come to mind? (Yes, I know the items on the list were my idea.)
Suppose people in your neighborhood have been asking you for a good shoe repair shop. What’s to stop you from finding the best shoe repair shop around, and then create a pickup and delivery service for shoe repair? Work out a deal with the shop and you may get a fee plus a markup price. Your hands never touch a brush. This is called adding value and it can be done in an infinite number of ways. It’s about creating or delivering something that is more helpful to someone than before you touched it.
We could go through anyone’s list and pick almost any item and think of ways to add value.
This is Main Point #1: Always think in terms of adding value – ahead of anything else. That means instead of trying to be “number one in your industry in five years,” or instead of worrying about “blowing up Twitter” with your new brand, think about how you can add value to anything.
This is the mindset that can make or break your business before you even begin. And if you already knew what it was you wanted to do, you also need to ADD VALUE.
Back to our lists. You say you’re only an average pianist? Ok, can you teach it to beginners? Remember this – you don’t have to be great at something to help others = add value.
Use the two lists as a jumping off point. Add items in either column. Reflect on what you’ve written. If you are stumped by this question you need to sit back and really think about what it is you can do to start a business. It’s not a sign you shouldn’t have your own business, it is just part of the process to really think this through. It’s not unheard of to spend a year or more thinking about this alone. Here’s a little tip though – the best ideas are often so obvious we don’t see them until they are “activated” through necessity.
If you need to do some reflecting, bookmark this section and come back when you’re ready. For the rest of you, next time we take your “added value” idea and start to build it.
Jason Veduccio, author of The New American Dreamer: How to Land That Ideal Job in a Nightmare Economy is a hard-working entrepreneur following his dreams, and he wants you to dream, too. Drawing on his experiences working with companies on marketing, technology, hiring, and workplace issues, his regular column will demystify the job search process and identify strategies for moving up the corporate ladder. Founder of In1Concepts, Jason also knows the ins and outs of launching a new business. He welcomes your questions and can be reached at jason@in1concepts.com.
