You're Digging Your Own Grave by Not Being on Social Media and Here's Why (Part 2)

Here’s one thing that you should know about social media: It’s here to stay and if you’re not using for your business you will get left behind. Below are some of the reasons why social media is becoming an integral tool for businesses:

Customer Acquisition - Want to get the word out about your business so you can acquire new customers? Take it to social media. Aside from letting you run targeted ads to get in front of potential customers, social sites have a lot of FREE built-in tools that help generate interest for your business. For instance, if you have a brick and mortar location and one of your customers checks-in on Facebook, that customers’ friends will see that update, and that could lead them to check out your business.

Engagement and Retention - On top of letting you acquire more customers, social media also helps you keep them. By consistently updating your accounts, you’re opening up engagement opportunities with your patrons. Additionally, publishing fresh content on a regular basis helps keep you top of mind, and makes you more memorable to consumers.

It’s funny how one of the most simplest and basic marketing methods is often ignored by entrepreneurs for newer and fancier tools. We’re talking about asking for referrals. Yep, we know you’ve heard of them. The question, have you used it to your advantage lately?

Most entrepreneurs are quick to jump into listening to marketing gurus or trying fancy software or services when it comes to getting the word out about their business. And while there’s certainly nothing wrong with the above-mentioned marketing tools, it’s important to note that the basic, tried and tested methods are just as effective.

With that said, here’s a food for thought. Before buying into the next marketing craze, make it a point to ask for referrals with your current clients or customers. Compose a quick email saying that you’re taking in new clients and say that you would really appreciate if they could help put the word out about your business.

If you’ve done your job right, then your customers would be happy to send you some business. Do all this, rinse, then repeat.

Want to have a snazzy logo for your biz but don’t have the budget to hire a fancy graphic designer? Don’t fret. Below are a number of ways in which you can create a professional logo for your company without breaking the bank:

1. Do it Yourself - Why not make a DIY project out of your logo needs? Even if you don’t have any graphic design training or skills, you can still create a decent logo by mixing and matching font faces, sizes, and colors. Just go to Word, explore the different fonts and see what you can come up with.

2. Freelance Platforms - Can’t make your DIY project work? No problem. Check out freelance communities such as Elance.com, Odesk.com, or Freelancer.com and scout for contract graphic designers for your logo. Most of the freelancers on these sites offer affordable rates, often as low as $50 per design.

3. Fiverr.com - If you want to go even cheaper, check out Fiverr.com, a marketplace that lets people buy and sell products or services for the low, low price of five bucks. Everything, and we mean EVERYTHING on this site costs five bucks, and the good news is there are a handful of logo-designers hanging out here too.

The first thing you need to know about establishing a partnership type of business is that there are three general categories for this business structure.

First we have General Partnership. Known as the simplest type of partnership in business, a Generap Partnership entails that all the facets of the business (i.e. revenue, official duties, liability, and more) are equally distributed among its members. If unequal distribution occurs, the General Partnership requires that the members have it in writing.

Limited Partnerships on the other hand is a form of partnership that allows for one or more limited partners in addition to the general partner(s).  It’s a lot more complicated than having a General Partnership. A Limited Partnership factors in input, management decision, and limited liability. The limits may vary depending on how much the members have invested in the business.

Joint Ventures, also known as JVs, Joint Ventures are usually temporary and are only set up by parties who intend to work together for a specific project or event. Once the project has passed, the JV is dissolved.

A seller’s permit enables entrepreneurs to collect sales taxes from their customers. They are then required to report those amounts on a regular basis.

The question is, do you need one?

If you want to have a certain level of protection when running your business, then you’ll need to look into establishing an LLC or Limited Liability Company. Unlike a sole proprietorship, which allows the comingling of personal and business finances and affairs of the entrepreneur, the LLC makes the business a completely separate entity from the individual.

An LLC is particularly attractive because of the amount of protection it gives the entrepreneurs. If you’re running a sole proprietorship for instance, any debt that you incur will be under your name. Therefore, creditors can come after your personal properties (your house, car, etc) in the event that you default.

The same goes for any lawsuits filed. If you’re running a sole proprietorship and you get sued, you're putting your personal assets on the line.

These things do not happen to LLCs. Since they operate under a separate entity, any debts or lawsuits will only be attributed to the business, and not to the individual.

Ready to take your hobby to the next level? Do you want to make things “official” and legal in the eyes of Uncle Sam? Then you’re ready to establish a business entity. Chances are, if you’re just starting out and you’re not really worried about getting sued or owing a lot of money to creditors, you will have to set up the most basic form of business, which is a sole proprietorship (at least for now.)

The good news is, establishing a sole proprietorship is relatively simple, inexpensive, and doesn’t require a lot of legal mumbo-jumbo.  

While the fees and specific steps may vary depending on where you’re going to operate, below are the general steps that you need to know to get started:

1. Determine the name of your business - As a sole proprietor, you can use your own name and operate the business under it. However, if you want to operate under a different name i.e. “Awesome Graphic Design” then you will have to file a dba or “doing business as”.

2. Obtain the necessary licenses (if any) - Depending on what type of business you have, you may need to obtain certain licenses. For instance, if you’re going to provide beauty services, you will need a cosmetology license.

3. Get your EIN - As a sole proprietor, you aren’t required to have an Employer Identification Number (EIN), as you can use your social security number for tax purposes. But it’s highly recommended that you obtain your EIN anyway. For one thing, you wouldn’t want to give your SSN every time someone needs your tax info and for another, having an EIN helps you separate your business taxes from your personal affairs to keep things simpler.