Archives for February 2018

Keys to naming your business

Your business is your baby so it deserves some time and energy when it comes to choosing a name. While it may seem easy at the onset there are a lot of important considerations when choosing a name for a business as it is the first line of communication on who your business is and what it does.  In my experience starting with a big list and winding it down is the best way to explore all possible name choices and set the pace for how you define your business.   Here are the steps I go through when naming a business:

1.Brainstorm with a list of who your business is. This is just words that you use to define your business. It could include things like your name but as you are just beginning so also include words that describe what you want to communicate about your business. If you are a plumber for instance you may have Johnson Plumbing in mind but should also write down words like experienced, professional, timely, or honest if that is important to your targeted client.  I find a great trick is to you the thesaurus to drum up other words that may be more unique or catch to add to your list.

2. Take a look at your competition. Chances are that whatever you want to do there is someone out there also doing it. Taking a look at your competition may give you some inspiration but it also gives you an idea of brands that are already out there as a way to make sure your brand is distinguished from the pack. It will also tell you if your idea is already taken.

3. Get input from those whose opinion you value. Finding a trusted business advisors is important to have a clean space to bounce ideas off of in a positive way. Try to find someone who you both trust and respect their business opinion. It can be a great way to find flaws in names you like that you did not previously consider and work through reworking names you previously discarded.

4. Take a pause and use your imagination. If it was easy everyone would do it. Your business is your baby so even if you start off with a name you want to consider and reconsider it to see if it will stand the test of time when it comes to operating your business.  This is one instance where rushing is a no-no in business as your marketing efforts will stem from your name so reselecting can hit you big in your pocket and your brand image.

5. Do your research. You have to put some energy into if your name is taken both on the World Wide Web and with the secretary of state when you file your name as an entity. The Secretary of State should allow you to search names to see if yours is taken for a minimum cost and even reserve the name if you want to hold it but are not ready to file for your entity. While you may have never heard of a company with the name you are interested in, it does not mean that it does not exist.  You can use any domain resource like GoDaddy to search domains for your name.  This quick search lets you know if the name you want is already taken and to see how much brand confusion would be caused if you used the same name.  Doing the work on the front end prevents you from falling in love with a name you cannot register or does not make sense from a branding perspective.

Preparing for opening your business banking account

Opening a bank account for your business entity is imperative to begin to establish a footprint and path to success for your business. While the state defines the birth of a legal entity with filing, you begin to give it life by acting in the name of the entity. So taking baby steps to define just who your business is often begins with establishing a bank account.  This is a great tool for you to begin to separate your personal finances from your business and to have an active record of the activities of your business.  This record can later be taken to banks and other businesses as proof of your profitability and cash flow.  It is a critical consideration when applying for loans, credit and even when bidding for projects that want to ensure the information you provide can be backed up by your numbers.  Financials will usually be square one in considering who your business is so getting in line with a great bank begins to lay a foundation for your business.  Here are the important things you want to gather up when preparing to go to a bank to start a business account.

Articles of Formation: This is essentially a receipt from the Secretary of State you filed with as to the formation of your entity, the start date, the important members and any other details provided when filing. Think of it as a birth certificate for your business and tells who the parents are and date of birth and who was in charge of what when initially formed.

Operating Agreement: The articles of formation do not have to provide detailed information on your business as the operating agreement gives more information on who is in charge of what. In this agreement you will provide who owns the business and in what percentage and who manages the business and in what capacity. This will be critical information for the bank as it also sets the guidelines on who can access the funds in the account and to what extent.

EIN: The Employer Identification Number is like the social security number for your business. It is filed with the IRS to give them an idea of who to expect a tax return from and provides basic information on the type of business and who will be in charge. If your business is an LLC it will also ask how you elect to file your taxes between the members.

Banking Resolution: For those who have opted for a Corporation a banking resolution will speak on behalf of the corporation to provide authority to a member of the board to start a bank account, for instance the President or Treasurer. As the owners of the corporation may or may not be involved in the day to day operations it works to provide definition to who should access what.

Gather all members. Frequently a bank signature card requires simultaneous signing so there is one easily accessible go to point to verify signatures at the bank. Even if you do not go to the same location it is possible you will have to coordinate a time to allow these wet signatures to happen all at the same time.

Don’t forget to shop around. Different banks offer different relationships. As access to capital will probably be a consideration at some point to allow your business to grow choosing a bank that prioritizes the type of business you have can give you an important leg up in accessing cash or credit. With fees, procedures and features being drastically different for each bank make sure you do some research to connect with the bank that will work best for your unique needs.

Girl Power: Super charging your business by teaming up

When you are an entrepreneur the thought of teaming up with someone else can seem pretty daunting. You have to open yourself and your business to criticism, change, new perspectives and new attitudes.  But in the ever changing world of business, and especially in our recent economy finding likeminded go getters to brainstorm ideas with and share some of the ways you have weathered the storm is one of the best ways to sharpen your business knife in preparation for the fights ahead.

So why are women not teaming up in drowns, trying to do the best to reinforce their business principals and ensure their business is on solid ground?

While some may say its pettiness, or competitiveness or part of a refusal to reach back I think the answer could be found in something as simple so people not knowing how. Where we first learn to work together begins in school but forced collaboration often ends in disappointment.  Especially for the type A personality you normally find in entrepreneurs.  While you press forward others lag behind forcing you to pull them in order to get the results you desire.  But in a grown up version, with likeminded peers the result can be much different.  You just have to be prepared to learn or relearn how successful collaboration works.

By no means is this easy. Whether this is someone in a similar business or someone where there is potential for business synergy you have to learn to put trust and active listening first.  This happens at its best when both parties realize there is a boundless field for potential and income when you are tuned into the needs of your audience and how you can best uniquely serve those needs.  Yes this simple fact means that for my business, although I am a business law attorney, I am not competing with another business law attorney I may choose to collaborate with.  While it seems like we are geared towards the same audience my true goal is to find clients that I can service best given my skills set.  So the old saying “you are your own competition” proves tried and true.  When both people accept this then the sharing can begin and that is where the power is.  Having someone similarly situated to bounce ideas, wins and losses off of can change the game for your business, assuring you that you are not alone in the fight for success and others are praying for and supporting your successes, not your downfalls.  It is a comforting breath of fresh air in the concrete jungle of entrepreneurialship.

Travel Tip of the Week: Fare Sale with United

Yearning to travel this spring or summer???? Well good news the fare sale competition is on and especially if international destinations are on your way now is the time to grab your tickets and get on your way.  From Barcelona to Venice and even parts of Africa the deals from New York are as low as $400.  To add icing on the cake it is a United fare sale so you don’t have to worry if you are flying the Greyhound of the air and focus your attention to planning the rest of what is sure to be a fantastic vacay!!

Here are just some of the deals you can find on Secret Flying and other websites:

Los Angeles to the Turks & Caicos for only $380 roundtrip

Many US cities to Hawaii (& vice versa) from only $395 roundtrip

Austin, Texas to Amsterdam, Netherlands for only $395 roundtrip

Detroit to Rome, Italy for only $430 roundtrip

 

Your operating agreement: Plotting out your business relationship

When it comes to starting a business entity there is a lot to decide and like any relationship the more people the more problems that come up in the birth of your business. Regardless of the type of entity you decide to form it is critical to start an open dialogue when it comes to deciding how the important business matters of your business will be handled.  Businesses ebb and flow so while every important matter may not be a priority for your operating agreement there are a couple that are key.

Money – Like it or not money will be a running theme in your business so deciding how it should be handled is crucial.  As you start off contributions take center stage.  While the state default is that your ownership rights are determined by your percentage of contribution you can decide to split it in different ways to reflect experience, sweat equity or other resources being donated by a partner.  It is also important to decide once money or losses begins to flow how it will be divided.  Again it can just be a reflection of initial contributions but it can also work to compensate members for management or even repay initial heavy contributions.

 

Management – Just because you start a business does not mean your main skill set will be to run the business.  In a partnership hopefully each partner will bring their own wining expertise to make your team as well rounded as possible.  So if one person is the money and one is the brains you want this discussed and to be reflected in your operating agreement. You can also decide that appointed managers will be responsible for managing the entity all together.  The decision you make early on can have important repercussions especially if changes is needed so discussing it early helps sort out problems before they start.

 

Changes down the road – If nothing else is guaranteed in business change definitely is.  How your business will roll with the punches called entrepreneurship is key to long term success.  Thinking about what happens if a partner gets sick, dies, or no longer wants to retain their shares in the business give everyone a leg up instead of having to fight in the case of disaster or discord.  Note that the default to some agreements is if that if one member rescinds the entity will cease to exist to read and proceed carefully when planning for the future.

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