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New to Entrepreneurship: Here Are 6 Tips You Can Bank On

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Entrepreneurship is not a career, it is a life choice. Many people have mind-blowing business ideas. It’s almost enticing to jump right into starting up your new business. But as fun, as that sounds, the reality of running a successful business is a lot more complicated than that.

Most times opening up a business is usually a learn-as-you-go experience, but it doesn’t have to be this way. Here are essential tips that when implemented well can be the smartest decision you will ever make for your business.

Brand Your Business

What does the term branding mean to you? Most people perceive branding as the logo, colors, and visual component that you associate your business with, but it’s a little more than that. Branding is the entire identity of the business. It is what makes your business stand out in crowds.

In a fast-growing business world, it is important to create a strong brand for your business. This way it outshines your competitors, gets people’s attention, and makes it more recognizable. Branding gives you a chance to get some control over how people perceive your business. 

Build a Team

Manpower is a vital part of any successful company. It is significant for ensuring that operations are running smoothly and efficiently. Coming up with a good workforce is the secret ingredient for achieving a good relationship between your company and your customers. They are the face of the company and give an essence of the human touch to your business.

It can not go unmentioned that with improved technology manpower is rapidly being replaced with machines. That said, creating and maintaining a reasonable amount of manpower for your business can be a life-saver hack. Coming up with a team of educated and well-trained individuals will improve productivity, provide innovations, and maintain the relevance of your business in the market, something technology can’t provide.

Buy Raw Materials in Bulk

Depending on what your company’s end product is, consider purchasing the raw materials required at wholesale. Stockpiling the raw materials when they are at their lowest prices is a money-saving hack. Buying raw materials at a low enough wholesale price reduces the cost of production and in the long run, maximizes profits from your retail sales.

Consider finding a reliable wholesale distributor, this makes purchasing more efficient and you are assured of the quality of materials you will be getting. Ensure they supply within your geographical region, have prices you can afford and are trustworthy.

Advertise Your Business.

Promoting your business is a key aspect if you want to outshine your competitors and make your product or service known to your potential customers. Businesses have different ways of promoting their brands; they range from handing out flyers to postcards to brochures to advertisements in newspapers to online marketing.

Using social media platforms to promote your product or service is a no-brainer. It is the best way to get your name out there fast enough, while also providing solutions to about ninety percent of the population online searching for similar products. Some businesses opt to invest in a large indoor LED screen because of its efficiency in displaying stunning images. These types of screens are eye-catching, outstanding, and popular for their diversity in use, hence playing a major role in advertising brands.

As a business owner, take time to research which medium of advertisement will best suit your enterprise and proceed to invest in it.

Invest in Packaging

While most new business owners overlook the need to properly package their product you must seize the chance and stand out. packaging is the first touch that customers will have with your brand.

It is therefore important to create enticing packaging for your consumers that will draw attention to your brand. It is imperative to incorporate eye-catching shapes, colors, quotes, and packaging material that is unique to your brand. This will make the unpacking experience for your customers exciting and unique hence creating loyalty and enhancing customer retention. Keep in mind that with evolving people and markets, your packaging must evolve to keep up. 

Be Sure to Keep Records

For any business, accountability is key. Efficient record keeping will help to keep everything in order and help to analyze your company’s financial status, provide insight into what your real profit is, answer tax problems, or keep track of deductible expenses.

Precise record-keeping of finances and expenses throughout a business’s lifespan makes it easier for you to adjust your business plan accordingly to help solicit new business partners or investors. 

Even after a business picks up, managers are tempted to focus more on production and profits and overlook record-keeping, so don’t fall into this trap. 

Choosing whether to keep the record in soft copy or hard copy is totally dependent on the business owner’s preference.

Conclusion.

Let’s be honest, starting a new enterprise can be a little bit hectic because it requires a lot of planning, sacrifice, and money. That said if you have your business idea don’t wait for the right moment because it will never come. Take the leap and trust your instincts. All you need to do is apply the six tips explained above and you are good to go. Good luck setting up your new enterprise.

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How to Grow Your Small Business Startup: 4 Essential Steps

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Around 90% of startups fail. And while some of those failures can be attributed to bad luck, many others were the result of poor decisions at the early stages of building the company. 

But while that statistic may seem discouraging, it can also provide motivation to those entrepreneurs who are willing to follow the best practices of launching a startup and push through the various challenges that will inevitably come up during the process.

With the help of a few simple (but fundamental) strategies, you can separate yourself from the majority of other startups and give yourself a real shot of making a product that will break through and make a difference.

To help you get started, let’s look at four crucial aspects of launching a startup that you should consider.

Start with the “Why?”

The number one thing you should do when launching a new company is to ask yourself a simple question:

Why is this solution necessary? 

There are millions of startups globally, and the majority of them would fail to provide a viable answer. Some just want to break into a hot market because they think that will increase their chances of success. Others believe they have a unique idea without knowing whether there’s any demand for it. 

But in most cases, ideas that might seem reasonable at first glance crumble when their purpose is questioned even a little.

So, if you want to avoid pouring your heart and soul into a project only to find out that it was a waste of time, it’s a good idea to spend a fair amount of time thinking about the core purpose of your product and the effort it will take to launch it.

Most of the successful startups you might have heard in recent years started with a very clear idea of the purpose behind the company. It can be a feature that no other product in the market can offer. Or, it might be a unique process for solving a problem that will change the industry forever.

Most of the time, there’s at least a clear answer to why the startup needs to exist in the first place. If you strip away the gimmicks and the additional features, you should still be left with the core idea of what you can offer that no one else can.

Take Care of Your Employees

No matter how you decide to finance your startup, you won’t be able to go forward alone for long. And that means that at some point, you will need to figure out how you’ll take on employees and ensure that they are happy and protected.

Then, there are various state and federal regulations that determine how much paperwork you’ll need to file out, what protections you’ll need to offer, and countless other details that someone outside of the HR world has probably never dealt with.

Because of that, startups can benefit from using HR outsourcing services that can take over the entire process. The team at SnackNation recommends using services like Bambee or Workday, which provide comprehensive solutions for companies of all sizes.

These companies can offer HR consulting, benefits administration, performance management, payroll, bookkeeping, and various other services that can be a hassle to manage on your own when you’re just starting a new company and have a lot on your plate already.

Plus, it ensures that you implement the best HR practices of today and that your employees are taken care of. And that will make attracting the top talent you need for growth that much easier.

Use a Proven Website Platform

Launching a startup is impossible without a strong web presence. And that inevitably starts and ends with your website. But if you don’t have experience with building and designing websites, the entire process can be a bit overwhelming.

The good news is that with a platform like WordPress, you can have a website set up in a matter of days if you want something simple. But at the same time, the platform offers robust customization capabilities and it can get a bit confusing when picking the right ones. That’s why it’s a good idea to curate your own WordPress toolbox that includes a wide variety of powerful themes, plugins, add-ons and WordPress resources that you know would always work for your website. 

In the end, you want to find fast hosting, install robust security features, and provide a seamless User Experience (UX) to all of your site’s visitors.

Designing a site from scratch can be appealing. But WordPress can give you enough versatility to get any features you need while remaining user-friendly enough to keep costs down and provide you with a simple way to get started.

Maintain Focus

As a startup owner, you will probably never run out of avenues you could pursue. Whether it’s the new shiny marketing tool or a promising networking opportunity, there will be times when you’ll want to do everything at once because that’s what could give the company the best chance of success.

But in reality, maintaining focus and clarity in terms of priorities might be the most practical choice for your startup in the long term.

By only focusing on a few things at a time, you will allow yourself to really give them time, tweaking your approach until you find what’s working. Moving on to something else is easy, but then you might miss out on incredible opportunities because you were too quick to dismiss something without giving it a real shot.

So, whether it’s a marketing approach or adding features to your product, always weigh the potential benefit against the resources it would require and against how it would impact what you’re doing right now.

Sure, at some point, you will need to cut your losses with projects that didn’t pan out. But it’s a good idea to stick with them for a bit longer than you might want to, especially if you know that it’s a sound strategy that could deliver big if you would just find the right approach. 

Final Words

Launching a successful startup is a dream that drives millions of entrepreneurs worldwide. But only those that follow sound business principles and are disciplined in their decision-making can expect to see success.

The strategies listed above may not be flashy, but they represent essential parts of running and scaling a startup. And sometimes, taking care of the less flashy details like HR management can set you up for exceptional results in the future.

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Starting a new online business during the pandemic: Two COVID-era tales of renewal in Miami

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The pandemic forced more than three-quarters of small businesses across the U.S. to temporarily close up shop in the spring of 2020, and thousands have since shut down for good.

But the COVID-19 pandemic also led to a record number of people trying to start their own businesses: 4.5 million filed new business applications in 2020, according to an analysis of U.S. Census Bureau data by the Economic Innovation Group.

That’s the highest number ever and a 24% increase from 2019.

 

And the momentum isn’t slowing. The Census Bureau says 492,000 new business applications were received in January 2021, a 43% jump over the previous month. Many more informal businesses are believed to have been created, often as side hustles, but never registered.

Few cities saw more aspiring entrepreneurs than Miami. Although new business creation was not distributed evenly across racial and socio-economic lines, green shoots of entrepreneurship popped up across the metro area, helping to bring a dose of resilience to the local economy.

[At the same time, untold numbers of existing small businesses — restaurants, neighborhood shops, salons — decided to establish a digital presence, allowing them to find new customers and take orders from beyond their immediate area.

In all, the number of digitally connected microbusinesses in Miami-Dade County rose 6.7% from 2019 to 2020, according to data from GoDaddy’s Venture Forward project, which studies the economic impact of these small online businesses. The Miami metro area, which includes the neighboring cities of Fort Lauderdale and Pompano Beach, has more microbusinesses per 100 people than any other large metro area in the country.

These everyday entrepreneurs make a big impact on their communities, with each new one leading to the creation of two additional jobs, Venture Forward data shows. Additionally, each new microbusiness per 100 people can reduce the unemployment rate by .05 percentage points.

And between 2016 and 2019, every microbusiness per 100 people that’s active online was associated with a $485 increase in a community’s household median income.

Here are the stories of two inspiring women entrepreneurs who took the initiative when the pandemic upended their lives.

Natasha Nails: Rethinking the press-on

It took a painful case of contact dermatitis, a type of allergy, following a visit to a nail salon for Natasha Williams to come up with an online business idea for the future of press-on nails.

The Miami native, who lives in Little Havana, has had her nails done since her teens.

But after her allergic reaction in March 2020, she was forced to switch to press-on nails that used hypoallergenic adhesive pads.

Unhappy with the appearance of what was available — they felt cheap and plasticky — Williams started buying clear nails and hand painting them with her favorite colors and designs.

Around the same time, the pandemic shut down the local economy. A well-known tap dance performer and teacher around Miami, Williams suddenly had a lot of time as lessons and gigs dried up.

By July, buoyed by the admiring comments she got from friends and strangers on the street, she realized there was a market for her creations, so she quickly built an online store and Natasha Nails opened for business.

At first, it was as much a hobby as a career plan. But soon she started asking questions and understanding the opportunity was real.

Why did women tend to apply press-on nails and leave them on and then throw them out? Given how easy they are to remove and reapply, particularly the adhesive-pad type, wouldn’t it be more fun and affordable to have collections of nails so they could match outfits or daily moods, the way they choose which shoes to wear or purse to carry?

“I want people to be able to mix and match, like ‘let’s see what I have in my closet to wear today,’” she says.

If she can popularize this approach, women may one day not feel obliged to suffer the daily inconveniences of wearing long nails.

“Just try typing all day with these things on,” she laughs, showing off long, olive nails. “You really can’t do much. And anyone who tells you differently is lying!”

While her new business doesn’t make enough money for her to quit her teaching, she spends about the same number of hours on both.

That includes 30 minutes each morning tending to her growing Instagram account — where she has amassed more than 5,000 followers who account for most of the orders on her website — and a few hours in the evening painting nails, including custom orders, and packaging up boxes for customers who opt for her monthly subscriptions.

Many challenges remain ­— particularly how to scale production beyond her ability to hand-paint nails while maintaining the artistic quality. But Williams is definitely a long-term thinker who hopes that, some day, her creations will be featured at major retailers.

“I don’t see obstacles as problems, but as challenges,” she says of the process of building a company. “You just have to follow the steps.”

Read more about Natasha’s story here.

Starting an online charcuterie-to-go

Like so many healthcare workers around the world, Maryam Kheirabi faced new demands when the pandemic hit. An oncology pharmacist with a Miami-area hospital, she suddenly had more hours, more stress and more fears of the unknown.

To deal with the growing pressure, Kheirabi decided she needed a new activity, something that would take her mind off her stressful job and give her a newfound source of fulfillment.

That’s when Fig & Brie, a charcuterie-to-go business, was born.

 

“I’m happiest when I’m extremely busy, and I wanted to create something beautiful for people to share,” she says. “In a way, I think the business got me through the worst days of the pandemic. It gives me hope, and hopefully it gives other people hope, as well.”

The idea came to her soon after the pandemic began, when she saw groups of friends eating from plastic containers full of snacks at a park across the street from her home for socially distanced get-togethers.

“How cool would it be to have a charcuterie box to go,” she remembers thinking. It would give people the option to pre-order a food board that could be delivered just when it was needed.

A native of Queens, N.Y., who moved to Miami with her speech pathologist husband in 2016, Kheirabi grew up being responsible for creating food platters for family gatherings.

“We Persians are very big on hospitality, and I never lost my love for creating beautiful, delicious things,” she says.

Once the first spike in COVID-19 cases began to ease in August, she started doing research, which included the creation of a variety of charcuterie platters for colleagues at the hospital.

A cousin in New Jersey agreed to help her secure a domain name and choose website-building tools.

“The rest was left up to me, but it was mostly dealing with aesthetics, which I love, anyway,” she says.

In early November, Fig & Brie officially launched, with a range of offerings, from a $20 “solo” platter to an $85 “soiree” box.

The seed capital was $2,000 that her husband, Francisco, urged her to take from their savings, with the understanding that they wouldn’t spend any more if the business wasn’t profitable after a month. She ended up spending $1,900 of it in that time, but by early December the business was making money.

Kheirabi’s digital marketing strategy initially was solely based on Instagram, in part because she wanted to grow slowly at first. But sales jumped more quickly than expected over the holidays, as friends and fans spread the word. One local real estate broker ordered platters as gifts to her clients.

It wasn’t easy, but she and her husband managed to keep up with demand while maintaining their jobs in healthcare. It helps that most orders come on Thursdays or Fridays, for delivery on Saturday.

Francisco does everything from taking photos to taste-testing to driving their only car around the city making deliveries. When he once asked what he would be paid for all his work, she quipped, “Sorry, but we pay in cheese.”

Her near-term goal is to have enough demand to hire a driver or two, and then to find a way to ship around the U.S. (That will require some innovation, to either find a way to keep fruits and veggies crunchy and fresh, or to come up with boards that meet her standards without those foods.)

Ultimately, she’d like to open a storefront in Miami and share her business model so women in other places could follow suit.

“I wouldn’t be doing this if it was only for the money,” she says. “That’s just icing on the cake.” The primary reward, other than enriching customers’ lives, is to empower women, including herself.

“We’re living in a time when women are standing up and taking charge of themselves,” she says. She even welcomes the competition from other female-owned online charcuteries in the city. “There’s enough demand to go around,” she says. “Women shouldn’t compete with each other. We should lift each other up.”

Related: Research shows that women have what it takes to make great CEOs

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Do You Need a Business License to Sell Online?

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Selling goods online has never been more popular. As ecommerce grows, many are wondering if you need a business license to sell online. Not only does getting a business license—and several other required permits—give your business credibility, but it’s also required to operate legally and establish your company.

We’ll go through the answer to this question as well as many other considerations to take into account as you’re establishing your online business.

What is a business license?

Simply put, a business license gives you permission to run your business. The specific business license you’ll need varies state by state, but their purpose is common: They show you have government approval to operate your business in the area in which you’ve been approved.

Do you need a business license to sell online?

The short answer to whether a business license is a requirement for online selling: yes.

A business license is a requirement for online selling, and it’s a crucial part of establishing your business as legitimate and legal. But getting an online business license is not as simple as just applying for a document. There are several other considerations to take into account.

Do you need a business license to sell online if you’re an existing brick-and-mortar store?

No, you don’t need an additional online business license. The important thing here is that you have a business license period, which enables you to sell your goods and also registers you to pay the taxes for which you’re responsible. If you’re a physical retailer looking to add an online component to your existing store, you don’t need any further paperwork.

Requirements for online selling: 6 common types of business licenses and permits

Although there is a document called a “business license,” there are also several requirements for selling online that you’ll need to go through in order to begin your ecommerce business. Some of them will not apply directly to you, but it’s essential to know about all of them so you can make certain you have the right operating paperwork before you start selling online.

Business license (general license)

A business license, sometimes called a “general license” or “business operating license,” gives you permission to operate as a company in a certain area—generally your city, county, or state.

Almost every business—both online and otherwise—will need a business license to operate. The requirements for obtaining a business license will vary among areas, as will the fees to obtain one (usually, these are relatively low). Business licenses will need to be renewed every few years.

Seller’s permit

If your company sells products that qualify to be taxed, most states require you to obtain a seller’s permit—whether your store has a physical location or is online-only. You’ll need to collect sales tax, which is what a seller’s permit allows you to do.

At the same time, it may enable you to purchase certain products from suppliers without paying sales tax. This happens through what’s called a “resale certificate,” which shows that the products that you’re buying will be sold through your store either wholesale or retail.

Again, this requirement varies state by state, so you’ll want to check in with your local jurisdiction to figure out whether or not you need a seller’s permit. Additionally, if you physically operate in multiple states—even including housing inventory—you may be required to obtain multiple seller’s permits for each state.

One additional thing to note: In some states, such as California and Idaho, there are what’s called “temporary seller’s permits,” which enable you to sell online temporarily if that’s all you need.

Sales tax license

An important part of being able to sell products online is charging customers sales tax. It’s a requirement, not an option—meaning, you’ll incur fees if you don’t.

As such, you’ll need a sales tax license. As you might expect, this differs from state to state as sales tax differs from state to state as well. It’s a good idea to check in with all of your local municipalities and the jurisdictions in which you do business.

Your state might also require some additional sales tax permitting, so, again, make sure you check in with the regulations in your area.

Employer identification number (EIN)

An EIN is crucial for every business. The employer identification number is something like a social security number for your business: It identifies you as a business and enables you to stay compliant with taxes and other regulations. If you’re going to incorporate as a business entity other than a sole proprietorship, it’s essential.

Another thing an EIN enables you to do is get a business bank account. This might seem secondary, but you’ll need your earnings to go into a separate business account, since it’s crucial to separate your business and personal assets.

“Doing Business As” (DBA) license

Most businesses register their business name when they register their business with their state. However, not all business entities are required to register—namely, sole proprietorships and general partnerships. In this case, the name of your business defaults to your legal name.

However, if you don’t want to operate your business under your own name—or if you want to operate under a business name other than the one you registered with your state—then you’ll want to look into a DBA license. This will give you permission to operate under a trade name. If you’re using a different name, you’ll also likely need your DBA license to execute certain contracts, such as opening a business bank account.

This will only apply to some businesses, but, again, you’ll want to check in with your state to figure out what regulations they have around DBA licenses. If you’ve previously used another name and you’d like to change it, it’s especially important that you look into it.

Home occupation permit

If you’re operating out of your home, which is common for many online sellers, you may need a home occupation permit. This is a fairly common license, especially for businesses that are shipping from home. If you’re hiring employees, you will likely need a home occupation permit as well. Again, different cities, counties, and states will have different rules around whether or not a home occupation permit is required.

This permit can help you avoid breaking regulations if your business does things like hang a commercial sign, or have a lot of foot traffic from shipping companies or from seeing customers.

Determining which business licenses you need to sell online

You won’t be surprised to hear this: Your local jurisdiction will determine what kind of licenses you need to sell online. Some may require some licenses and permits that are not on this list and that may be proprietary to your area. You’ll want to check federally as well as on the state, county, and town level.

The licenses you need also may depend on the types of products that you’re selling. For instance, if you were selling fireworks, you’d likely need a different license than if you were selling jewelry.

No matter what, it’s absolutely crucial that you figure out what applies to you and your specific business. It’s always a good idea to consult with your business attorney during this process to ensure you’re obtaining all of the necessary business licences for selling online.

How to apply for an online business license

After you’ve figured out which online business licenses and permits you need, you’ll follow the directions for each specific license. They may be different—some may allow you to apply online and some may require you to mail in forms or show up in person.

Remember that many business licenses expire after a certain amount of time. You might even want to put a note in your calendar for their dates of expiry so you don’t let your licenses lapse.

When should you apply for a business license?

As with other pieces of the process, when you should apply for a business license to sell online will vary depending on where you’re selling. In some instances, you may need to apply before you begin selling. In other areas, you may need to grow to a certain size before you’re required to obtain licenses and permits.

Again, consulting your legal resources and local business resources will help you determine your exact timeline.

How much does a business license cost?

Luckily, you don’t have to worry about shelling out thousands of dollars for a business license. A basic business license will either have a nominal fee, or cost a couple hundred dollars. Some permits might not cost anything at all.

Don’t forget that you’ll also incur some fees when you want to renew your licenses—some will be less when you renew.

The biggest expense around a business license is not getting one at all. You could get hit with big fees if you’re found operating without the proper licensure or an expired license.

What do you need to apply for a business license?

It’s important to look into the specific requirements for your local jurisdiction to figure out what exactly you need to apply for a license to sell online. However, there are some documents that you can pull in advance to make the process easier.

Make sure you have information about your business entity type, any required inspections or permits that are specific to the products you’re selling, the name you’ll be operating under, and, in some cases, an EIN.

The bottom line

If you’re getting into ecommerce, it’s important that you look into the relevant business licenses and permits required to sell online. Operating without the correct licenses not only makes your business look amateur, but you could also run into big fines if you’re operating without the correct documents. Luckily, applying for the right licenses isn’t tough and shouldn’t cost you a great deal. You’ll be off to the races soon enough.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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