Business Fundamentals

This page is dedicated to 3 areas of business.

 

1. What you need to start your business

2. Creating/building business credit

3. Branding/ Marketing

**Additional links are under the Resources/Contacts Page

TIP: If you plan on starting a business and you have a name in mind I would suggest that you legally reserve it, even if you do not immediately plan to use it. This allows others from opening an entity with your same name. Go through your Secretay of State to reserve a name. See the Register LLC by State link above. It gives the online portal used to file, plus list the filing fee and annual fee if applicable by state.

 

Marketing & Ad Placement

This PDF, list and explains the 4 proven methods to drive traffic on Instagram:

Hashtags, Posting, Content Quality and Call to Action.

Quick Guide: Streamlining Your Business:

Streamlining is anything you do that essentially helps your business to flow more effectively and allows you to alleviate some of the responsibilities of your day to day task. Here are the top 5 ways to streamline your business.

1. Automations- processes and data that is automatically set up when triggered by an action.

     -a receipt when someone makes a purchase

     -automated responses when someone submits a question

     -scheduling your emails for the month

     -scheduling post for your social media business page

2. Outsourcing-handling off responsiblilites to another individual, usually someone more qualified. Allows you to hand off minuscule tasks so you can focus on more important things like product development.

     -hiring a customer service agent or office manager or an assistant 

3. Upselling- a marketing tactic, offer your customers something for free but sale them another product in the process.

     -I offer free tips for signing up for my email service but i'm going to pitch my courses or 7 Figure Investors Club in those same emails

4. Retargeting Ads- when someone interacts with your ad, page or post another ad is set on their timeline which increases the likelyhood of that individual making a purchase. (keeping your product in their face)

     -Someone sees your page as suggested while scrolling. They like your page but don't purchase, then resume scrolling. They will eventually see another ad of your business or service. You have to set these ads up. (See AD's)

5. Value Chain Analysis- the steps you take to deliver your product or service to your target audience. It is usually a 3 step process.     

      -Activity Analysis: identify the activities you undertake to deliver your product or service.

      -Value Analysis: for each activity think through what you would do to add the greatest value for your customer

     -Evaluation and Planning: evaluate whether it is worth making changes, and then plan for action

Set up a chain flow for your customer. Present your product-direct them to the correct landing/checkout page-thank them for their service while also inviting them to become apart of your family (email).

TIP: Set aside 1-3 to streamline. Here is my monthy breakdown:

 

1st-8th- Schedule emails, social media post, content releases for 7 Figures Investors, set ads for that month

25th-30(1)-Send invoices to tenants, schedule cleanings/maintenance for Airbnb units, Vending Machines and ATM machine. 

Between the 9th-24th- I handle other activities like answering emails, any social engagements etc.

Even though I am not active in the business on a day-to-day basis I am still able to make a profit daily. Fiverr (link below) is a great way to find help at a low cost. 

***As an entreprenuer you never truly stop working but effectively streamlining allows you to work 40-50 hours a month vs 40+ hours a week.

Quick Guide: Leveraging Credit:

        Leveraging credit in the form of business is simply using your business credit/debt to generate cash. Usually, as a consumer we use our credit for things that do will make create wealth.  Having a business allows you to have access to higher credit lines. You leverage credit by using your credit line to invest in anything or asset that will generate more wealth; real estate, new marketing plans etc.

Reduced Tax Liabilities:   Having a business allows you to write more things therefore reducing your tax liabilities (how much you pay). Amazon is a trillion dollar corporation but they pay NO taxes. How is this possible? Amazon avoids paying federal taxes using a variety of tax credits and tax exemptions that are legal and built into the U.S. federal tax code. Some of these can include the research and development tax credit which allows them to deduct some of the costs of new investments and also a big one for this past year was the ability to deduct stock-based compensation of executives (Bob Bryan, Business Insider 2018).  I am not a tax specialist, so I urge you to speak to a tax specialist in regards to your business when it comes to what works for you.  

         

Quick Guide to Ads:

 

Running ADs especially when you do not have a large following allows you to reach a larger number of people. 

1. Facebook and Instagram are connected so Ads you create on one platform will show across the other.

2. Carefully read the rules for FB Ad's as when you create them they will have to be approved

3. If an Ad goes against rules you get a strike, too many and your page will be deleted. 

4. IG ads are the easiest, its literally a 3 -4 step process. Running ADs on FB are the most effective but also the most expensive. Creating an Ad through your mobile app will have less features than running it through your business page on your computer or laptop. 

Fundamentals To Building Business Credit:

 

       As a Business owner building business credit is essential. Unlike personal credit establishing business credit allows you access to funds that can be used to grow your business and access capital that you may not readily have on hand. For a full breakdown on business credit please read our Business Credit E-book linked below.

 

The basics to building business credit:   

  • -Set up business entity with Secretary of State (LLC, S-Corp,C-Corp) You CANNOT build buisness credit under a sole-prop.

  • -Create your operating agreement & business plan

  • -Apply for EIN

  • -Open a business checking account

  • -Index business information online (Google, Yellowpages, Yelp)

  • -Apply for you DUNS nnumber

  • -Apply for NET 30 Accounts

  • -Pay bills on time.

For a full understanding of business credit. You should know there are 4 levels/tiers to business credit and each level requires dffferent critiria. 

Level 1-Basic Trade Credit:

    BTC is when a company extends credit to your company in order to allow you to buy its products and services upfront but defer the payment for a later date

  • Conserve Cash Flow –through purchasing products or services and deferring the payments for a later date your business is able to conserve cash and have the funds it may need for other important expenses.

  • Establishing Credit – As each invoice is paid on time you begin establishing a positive payment history on your company’s credit files. Remember it takes a minimum of four accounts reporting to generate business credit scores on your Dun & Bradstreet business credit report. Not all vendors report to the credit bureaus.

  • Improve Credit Capacity – When your vendor credit limits increase so does your company’s overall credit capacity. Larger credit limits showing on your files will improve the overall creditworthiness of your business simply from the fact that banks and lenders will see that other companies are willing to extend credit to you in much larger amounts.

  • No Personal Credit Check or Guarantee – The majority of vendors will not require a personal credit check or guarantee which clearly protects your credit scores and liability. This means you can apply only using your business EIN. 

Level 2-Advanced Trade Credit:

  • -Capital extended by businesses to businesses

  • -Creditors will conduct a business credit check before extending credit

  • -Larger credit lines, longer terms and in some cases can be used for equipment financing

Level 3-Bank Lending:

  • Banks offering unsecured business lines of credit; score and business history driven

  • Both personal and business credit check and personal guarantees required

  • A good business plan and financials reports are required for larger lines and loans

Level 4-Investors:

  • Consists of venture capitalists, angel investors and other private investors

  • Requires that a business is out-performing or will out-perform its industry peers

  • investors want businesses that have been around a couple of years and can provide detailed financials and growth strategies

(c) TD&F Investment Group