Question: I'm confident that my startup business idea is workable, but I'm a little weak in the actual business essentials. What are some basic must-knows to get off the ground?
Answer: We get this question at SCORE quite frequently. It's time to set out our Top Ten Basic Things You Need to Know. These concepts and ideas may be new to you. The first five are today's column. Let's talk about this.
No. 1: Be conscious of your branding. You'll hear businesspeople talk about their hot idea, or new customer, or potential super location. But remember that the most important component of your new business is you. Especially when you first start out into the business world, you are your branding. Make sure you're always ready to present yourself professionally, and on an instant's notice.
If you don't already have attractive business cards, local print shops have starter packages at modest cost. If you're just testing a business idea, you can get 500 good-quality cards for $10 at vistaprint.com. For free software, go to avery.com and print your own on special cardstock (like Avery No. 8371). You can make as few as 10 cards at a time; just snap them apart and you're good to go.
No. 2: You need several exciting versions of your "elevator speech." Of course this is a metaphor. To refresh, your elevator speech is your response to an imaginary question asked of you by someone getting on an elevator with you. They might say, "You look familiar, do I know you?" Don't do the deer-in-the-headlights act. Instead, you have around 15 seconds to jump into your smooth elevator speech and tell them:
- who you are;
- what you do;
- why they need you; and
- how they can reach you.
Rehearse and perfect your mini-introduction.
If you're having trouble crafting your elevator speech, here's a tip: try working through these three steps. First, practice your delivery to a child, so you keep it simple; then second, to your mother, so you're sure it's ethical; and third, to an established businessperson. Of course this last version becomes your "real" speech.
Other versions are OK too, as appropriate. Example: a humorous version would be suitable at a chamber "after-hours" social event.
No. 3: Subscribe to all of the relevant trade magazines. Nearly every business has several dedicated magazines. They're usually free, because trade magazines make most of their income by offering your eyeballs to their advertisers. The higher their readership, the more ad revenue they can generate.
You'll learn the trade jargon, and the latest news and trends in your field. You can note important companies, people, products and events. As soon as it makes financial sense, visit the largest trade show you can justify. If your business is small, you may need to budget ahead for travel expenses. Visit tsnn.com for a searchable database of trade shows in every imaginable field of business.
No. 4: Unify the design and appearance of all your company's visuals. This includes your logo, signage, business cards, web presence, letterhead, uniforms, vehicles, etc. Use the same font, same layout and same colors on anything that identifies your branding to your target market. Larger firms have entire graphics departments to do this. If your visuals seem disorganized and lightweight, your company image will, too.
It's fairly common to see a young business with incongruent and unappealing visuals. This is a problem that is pretty easy, and not too expensive, to correct. Ask a businessperson whom you admire for some informal advice. When you're ready, find an intern in graphic design to help you out in return for college credit.
No. 5: Set up your accounting properly. Get help if this isn't your forte. Consider this: if you blunder through setting up your books, you'll actually pay for it, in time or money, three times! The first is your time and pain to set it up incorrectly. Second is paying to have someone undo what you did, and then third to have it redone properly.
Go to irs.gov and download a Schedule C and a Publication 583. The latter has very good information, in straight talk, about the purpose of your books and how to set them up. Also, consider using software like QuickBooks. If this isn't for you, there are many local bookkeeping services; ask around.
When you have employees, definitely get help unless (1) you feel very confident processing payroll by yourself, and (2) there is no other, more valuable, use of your time.
Next week, we'll talk about five other basic and essential things you should know.
ABOUT SCORE
To learn more about managing cash flow, and other small business matters, contact SCORE, "Counselors to America's Small Business." SCORE is a nonprofit nationwide organization with more than 13,000 volunteer business counselors who provide free, confidential business counseling and low-cost training workshops to small business owners. Call the local SCORE chapter at 360-685-4259 to schedule an appointment. For details about the organization,visit SCORE.org.
