How to Develop Solid Online Business Foundations to Maximise Profits Today and Tomorrow

Get Skilled Up! When you are learning about how to become successful at something new, whether it is making money online, windsurfing or anything else, you need to learn new skills. You can’t apply your skills in fishing to windsurfing but you could apply some skills learned through skateboarding. In the same way, when you are learning to make money online you can’t necessarily transfer your entire current skill set from your current job into your new online business but you could apply some of your existing web and computer skills to help you get a head start. With that in mind, we need to accept that we are going to need to take the time, with an open and enquiring mind, to learn some new skills and a new body of specialist knowledge.

Einstein said that the definition of insanity is to “do the same thing again and again and expect different results”. So it is when you are starting out. If you are going to be successful online you must not be hostile to the new ideas, techniques and concepts that you will be exposed to.

Are You Ready? Another old saying states that “When the student is ready, the teacher will arrive”. As a newbie you must be ready to seek and accept the wisdom of those that have been there and done it before you. With that said, bear in mind that there are many charlatans out there promoting poor opportunities who just want to take your money and give nothing in return. Choose your mentors and teachers carefully. Are you ready to leave your comfort zone? The comfort zone is where you can quite happily (or miserably) carry on doing what you have always done and get the same results (good or bad) that you always got. In order to develop as a business person and a human being (I hope that you are both) then you need to push yourself to achieve more than you have before. You need to be seeking out new ideas and opportunities and be willing to fail as you learn. Don’t be afraid to fail your way to success.

How To Choose The Right Mentor For You. It should be obvious by now but you may not realise that with such a lot to be learned when you enter any money-making opportunity you have to make sure that you find a great way to learn it quickly and effectively. There are many people out there offering an overnight success scheme but I would recommend that you steer clear of these alleged opportunities which are more likely to be scams than genuine opportunities. If it sounds too good to be true then it probably is. Find an individual or a company that you can trust, who has been there and done it if you want to increase your personal chances of success.

Take A Helping Hand. Almost everyone who is successful online today had to have a helping hand from someone in the very beginning. Every mentor has a mentor. Nobody just instinctively knew the best ways to make money online when they came into the world. These things have been learned and developed over time by many people before you so don’t miss out on the chance to learn the lessons of the past and implement them to ensure your future success. The internet is still relatively young and there are still an incredible number of opportunities out there on the web for people to make money.

In this article you learned about the essential attitudes that you must develop in order to be successful online and how to select a good mentor and training programme.

The Importance of Building a Solid Business Foundation For the Long Term Success of Your Business

Everyone who starts a home based business is looking to achieve success but no one ever thinks about the long term success that you can have if you are simply willing to dedicate time to building a solid business foundation. This means that you’re going to put time and effort in the beginning in order to make sure that you do things right no matter how long it takes because you understand that in the long run your business is going to be strong.

The one thing that you do not want to happen is that you rush into the whole foundation building of your business only to have it crumble in the long run when you are least expecting it. So you can see that building a solid business foundation is very important and there are specific ways to go about it.

One of the basic things that you have to make sure you do in the beginning is to make sure that you get into a business that’s going to be legit and that is going to stick around for quite a long time. This is business foundation building 101 because if you join a business that is not legit you can be certain that is not going to stick around.

Another thing that you must make sure you have in the beginning and always have is integrity. This is very important because usually people who are able to achieve success lose their way and forget about having integrity and just focus on making money. So just don’t forget where you came from and always stay humble to your success.

Laying Your Business Foundation, Part 2: Business Formation

In this series we will take about business formation. If you have not read Part One, stop what you are doing and read the article now.

Again, laying your business foundation requires the same intensity as building a bridge, school, museum or any beautiful structure. It takes planning, time and execution, which means doing whatever, needs to be doing to complete the project.

I cannot tell you which business formation is best for your business, only you can make those types of decision. Your attorney, spouse, children or friends cannot shape your reality for you, it’s personal. Before making a decision or selecting which business formations consult with a licensed attorney and accountant to advise you of your legal rights.

Let’s begin…

Sole Proprietorship (SP)

The term “sole proprietorship” means that the business is the same as its owner. The assets and liabilities of the business are one and the same as the owner. There is no mandatory filing requirement on the state level; however, a sole proprietor may register a trade name. Although I do not recommend this entity; however the choice is yours.

Advantages

No other documents needed to open a bank account; purchase materials or supplies needed for the business and you can file taxes under your name. There are other reasons but these are the main reasons for doing so.

Disadvantages

You are responsible for any lawsuits against your company; therefore, this will affect your family well-being. Lenders do not see your business entity as a mom and pop business without any growth. Vendors are less likely to extend credit for major purchases. Contractors, governmental agencies prefer to utilize the services of a company that is not a sole proprietorship.

Incorporated (Inc)

A corporation is a type of legal entity, often formed to conduct business. A corporation is an institution that is granted a charter recognizing it as a separate legal entity having its own privileges, and liabilities distinct from those of its members. The incorporated entity can be very complex; however, you can delegate these complexities to someone who is skilled with incorporation such as an attorney or accountant who are knowledgeable about business laws and taxation.

Advantages

Your business will be accepted as a major contender within the business arenas. You and your businesses are separate entities which mean if your company is ever sued or liable the plaintiff can only charge the company not you personally. Lenders are more apt to lend funds to an established corporation entity compared to other business structures. You are telling the world that you are serious about expanding, growing and or selling your business. There are a number of good advantages to this particular entity and the decision is entirely up to you.

Disadvantages

The number one disadvantage is double taxation. You or your account will have to file taxes in the company name and your name. This drives most potential companies to sway from incorporating under this business entity. Contact your attorney and account to help you navigate through the incorporation process.

Limited Liability Corporation (LLC)

A form of business whose owners enjoy limited liability, but is not a corporation. The State of Wyoming is known as the LLC formation capital since 1976.

Note: Wyoming is not the only state that welcomes LLC formations.

Advantages

LLC members are afforded limited liability and have pass-through taxes similar to a partnership. By forming LLC instead of a corporation, you get all the benefits of forming a corporation but you avoid a few drawbacks that you would run into if you formed a corporation. Specifically, when you form a corporation, you subject yourself to double taxation and excessive paperwork. Both of those annoyances can be avoided if you form LLC. The LLC allows for multiple owners, or members. Additionally, there is a managing member, who also enjoys the benefits of limited liability and is typically the person responsible for managing the business. Members of LLC can be other companies, trusts, organizations or individuals. Members share power, ownership and responsibility over the LLC operations based upon an agreement each member signs upon formation of the company.

Note: If you are the only LLC member or manager you are allowed to use the 1040 or 1040-A filing forms. Check with your accountant or tax provider for advice.

Disadvantages

The entity we were forming will be seeking outside investment and will be offering stock options to employees. Many angel investors and venture capital firms are not lenient about investing in LLC because it’s a new business formation that is not well understood. When raising capital, it helps to keep things simple and avoid anything that makes an investor think twice.

Limited Liability Partnership (LLP)

A partnership where a partner’s liability for the debts of the partnership is limited except in the case of liability for acts of professional negligence or malpractice. In some states LLP may only be formed for purposes of practicing a licensed profession, typically attorneys, accountants and architects. This is often the only form of limited partnership allowed for law firms (as opposed to general partnerships).

Advantages

Both LLC and LLP entities are treated as pass-through entities for federal tax purposes. This means that the owners report company profits and losses on their personal income tax forms. The business itself is not subject to a federal income tax, as a corporation.

Disadvantages

LLP offer the same type of limited liability that of LLC; however, some states require a minimum of one partner of LLP liable for the obligations of the company. There are other business formations; however, these are the most popular.

Until Next Time! Stay tuned to “Laying Your Business Foundation.”

The overall scope for choosing a business formation is to give your business an identity that is separate your personal identity. Doing so will level the placing field within the business community should you choose to grow or expand your business. The topic of discussion for the next article of “Laying Your Business Foundation – Part 3”: Customer Service.

Your Business Foundation – Where the Right Results Start

As a solo business owner, you are like one of those specialty performers: A plate spinner keeping a whole row of dishes on sticks whirling like tops. You get lots of things in motion at the same time, and then spend a lot of time and energy making sure everything keeps spinning.

If you are like most solopreneurs, your plates started spinning on Day 1 and you’ve been keeping them going ever since. You have had very little opportunity to step back and consider the strategic foundation upon which your business needs to stand. Unfortunately, this means that you are probably wasting a lot of your resources spinning the wrong plates; in other words, you are not making the progress that you should.

“What do you do?” So many of the solopreneurs I work with have a problem answering this question with elegance. They stutter and stammer, talk on and on, leave the listener confused and nodding politely. They find it hard to answer this question because they haven’t spent the time needed to lay the foundation for their businesses. Without this foundation business growth can’t reach the levels they seek.

Your business foundation also supports marketing and sales activities. A clear understanding of your target market and what you do to serve its members allows you to create on-target marketing messages and to sell offerings that fit their needs and objectives. If you aren’t clear on the foundational elements of your business, you risk overspending, putting energy in the wrong places, and having the sensation of wheel spinning.

As soon as possible, sit down at your computer or with a pen and paper and go through these three exercises:

  • Fine tune your target market. This may be counterintuitive – as solo business owners, we should spread our nets wide, right? Wrong. The more specific you are in defining your target market, the more focused and effective your sales sphere and marketing will be.
  • Walk in your customers’ shoes. What keeps them up at night? What challenges or obstacles do they face that you can help them with? What are their goals and objectives? What are the right results that they need to produce?
  • List the benefits customers get from working with you. What issues, challenges, or problems do you help them solve? What goals or objectives do you help them achieve? Be specific; the more specific you can be with this list, the better focused your marketing message will be.

The results of these exercises will give you the “raw material” you need to create the right offerings and build the right marketing program for your market. The sooner you stand back from those spinning plates, the sooner you can get rid of the ones that you don’t need.