How to start your own business
The new year is just around the corner and you’re thinking about finally taking the leap of starting your own business. Maybe you want to turn your hobby into a career, maybe your boss demands you to come back into the office but your cat has separation anxiety, Maybe you want to reap the benefits of your own labor. What ever the reason, Starting your own business can be a liberating experience but it can also be a risk depending on your situation, so make sure you’re prepared before taking the leap and starting your own business.
In this blog I’ll go over some important tips you’ll have to consider. I’m coming from this as a branding expert, and my own experience as a business owner and what I use to run my business. I will touch on the legalities of setting up your business but that part is not my expertise so I highly recommend you do your own research based on your location and the type of business you’re starting to make sure you comply with the law and you limit any liability to your personal assets. Here are some tips on how to get started setting up your business
Develop your brand
What is it exactly you’re offering and how do you easily communicate this to the right people? Confused people will take their business elsewhere so make sure you can talk about your product or service in a clear and concise way. Think of it as your elevator pitch. You hop in the elevator and run into an old classmate who asks you what you’ve been up to, if you can tell them about your new business by the time they get to their floor it’s a success! But if you’re giving a long winded story and don’t get to the point by the time they get off, you’ll have some more work to do.
What, who, and why?
What do you offer, Who is your target audience, and Why should they use your product or services vs those of a competitor?
If you know the answers to these questions you are well on your way to developing a solid brand story that will connect to your audience.
As an example:
What does C42 offer?
Bold design and branding that connects on on emotional level
Who is the target audience of C42?
Small to medium sized businesses who need a partner in developing their brand.
Why should they go with C42 vs a freelancer or a design studio?
C42 offers the best of both worlds, is a scalable business working with expert freelancers, so instead of you having to find a graphic designer, copywriter, market specialist, etc. C42 has a team of experts that work well together and understand your needs when it comes to running a business.
Naming
Before you pick a name, make sure it’s not already in use by other companies by doing a simple google search. If the name is already in use, especially if it’s in the same industry as your business, pick a different name. Make adjustments to the name or pick something that is less literal and goes with the “vibe” of your brand. You want to have a name that is unique to the industry to avoid mix ups and lawsuits!
Logo and Branding
To appear trustworthy and avoid confusion, you want consistency throughout your brand. Use the same logo, colors and fonts on online and printed materials. This is important for brand recognition. The end goal is to have your audience recognize your brand at a glance.
Legalities
Just because well known public figures can get away with tax fraud doesn’t mean you can. I highly recommend you set up your business properly so you are protected from any business liabilities. You can play by the rules while also minimizing your taxes if done right! As I mentioned before, I’m a branding expert and can only speak from my own experience of setting up a business but this section will give you a good starting point and the resources to set you in the right direction.
Register your business
You might not legally need to register your business, but one of the advantages of registering is that you can get an EIN number, this avoids you having to share your social security number with other entities keeping your SSN private. You’ll also be able to set up your business so the liability falls on your business and not your personal assets.
Pick a business entity
Research what type of entity best fits your business. Should you be a Sole Proprietor, LLC, Non Profit, or a Corporation? A good resource is the IRS website, Here is the one for Minnesota.
https://www.irs-ein-tax-id.com/apply-federal-tax-id-minnesota/
Figure out your taxes
Make sure you understand what taxes you have to pay and get an accountant you trust. Your taxes may vary depending on the services you provide and the state you are living in.
Set Up
You might need less than you think. You can start a business with a laptop, on your kitchen table. Don’t worry too much about fancy offices when you’re starting small, you can always scale up your business later. My previous business partner and I gave up our studio space when we realized we had no clients coming in anymore, we were meeting everyone on zoom! We do sometimes miss our creative studio space where there is plenty of space for messy creative projects, but in the end, giving up the studio saved us a lot of money and we quite enjoy our regular meetups at each other's homes or a nearby coffee shop. So, what do you need?
Domain and Website
The best domain you can own is a dot com domain. It’s easy to remember and the chances of clients ending up on the wrong website are slim. Your website has to look professional and should be easy to navigate for any potential clients. Besides making a great first impression and providing your clients with content they care about, it can also help your run your business smoothly by having a scheduling system, E-commerce capabilities or membership only content.
Social media accounts
Get social media accounts that make sense for your business and target audience. Find out what platforms your audience uses and get on there. Although it would be great to be on every single type of platform, it’s best to focus on “low hanging fruit” at first. Social media can take up a lot of your time but by focusing on only a few high reward platforms you can create effective and targeted social media campaigns to reach out to people and build your audience.
Google Suite
Get an email address using your brand name. This looks more professional and trustworthy. See example below.
info@brandname.com vs brandname@gmail.com
With GSuite you’ll also get applications similar to Word and Excel. I have a folder in GSuite for each of my clients where I keep my notes, estimates and shared files. It makes it easy to stay organized and I always have access to my files no matter where in the world I am, as long as I have access to the internet.
Business bank account
Keeping your business and personal bank account separate can save you a lot of headache during tax season. I use Square and Square Banking for getting paid, tracking my money, sending invoices, paying bills, and setting money aside for taxes.
If you end up using Square you can use the affiliate link below, you don’t have to, but it would be appreciated :)
https://squareup.com/i/C42CREATES
Promote your business
Now that you have everything set up it’s time to kick back and relax!.... Ok, no you’re only just starting. The most important and difficult part of running a business is making people aware of your existence and your offerings. You need to direct traffic to your website and turn curious visitors into loyal customers.
Blogging
A great way to drive traffic to your website is to add a blog with information that is relevant to your business and of interest to your audience. Not only will it provide great content, it will act as organic SEO (Search Engine Optimization).
Social Media
Post on your social media channels to reach out to your audience and keep them informed about your business. Keep content interesting so people stay engaged.
Business cards
Go to events, talk to people in person and carry a good old fashioned business card with you wherever you go.
Let your family and friends know about your new business, they might be some of your first clients!
Need help with your new business?
At C42 we’ll equip your startup with all the branding you need, from a logo you’ll love to a beautiful website that sets you up for success.
Good luck!
