Thanks to the internet we’re all much savvier shoppers than we used to be and we like to know what other people think about a product before we buy it. Testimonials tell your potential customers what your regular customers already know: that your product is a winner.

There are three factors to remember when you’re assembling your customer testimonials:

Authentic: It may seem obvious, but do not make them up. Writing them yourself might seem easy, but your credibility will be hurt if (or better, when) someone notices.

Substantial: “I love this product,” or “Your product is great!” are both nice to hear, but won’t mean much to your potential customers. Choose testimonials that say something specific about your product, whether it’s the fit, the color, the feeling or how it’s change some aspect of their life.

Permission: Comments left on your Facebook page, or mentioned on Twitter, are already out in the world, but your email isn’t. It’s tempting to go through your old emails and look for comments to use on your testimonials page, but it’s polite to ask first.

Now that you know what your testimonials should look like, the next question is where to find them? The easiest way is to ask!

Make a list of your return customers, active Facebook fans, and go through those old emails to find the positive notes you’ve received. Contact your customers by phone, email or Facebook, whatever your usual method of contact is, and ask if they would submit a testimonial for your site.

To help them craft their answers try fill in the blank “I love your product because _______” or “I tell all of my friends about your product because _______” or offer a list of specific questions they can answer. Your question list can include:

Why did you choose our company?
What features do you like best about our products?
Which is your favorite product?
Who would you recommend our product to?
Is there anything else you’d like to say about our product?

Strive to create a testimonials page that’s more than a simple collection of blurbs. Invite your customers to submit photos, and video and audio testimonials. Media testimonials add a fun interactive element to your site and add authenticity. You can increase the number of media testimonials by hosting a contest and offering one entry for every testimonial your customers send in.

Once your testimonials page is up and running make sure to share it on your social media and post a link to it in on your site. When potential customers come knocking and see reviews from your happiest customers they won’t be able to resist joining them.

The post How to Use Testimonials to Help Sell Your Product appeared first on Create Hype.

Instead of letting your blog wither and die (and possible cost your business as well), you can look for blog writers for hire. There are a number of professional writers that are available to produce content on your behalf. If you are are looking for blog writers, here are a few places to put out your plea for help.

Job Boards

There are online job boards that specialize in helping you find staff writers. One of the biggest is Problogger. Advertise on the Problogger job board, stating what you are looking for, and you will likely be inundated with applications.

You can also place your ad for blog writers for hire on places like MediaBistro and Evanto Studio. Many job boards are aggregated by the Freelance Writing Jobs web site, so that can be helpful in getting your job advertisement out there.

Freelance Marketplaces

You can also go to freelance marketplaces to find blog writers for hire. Marketplaces like oDesk and Elance can get you access to low-cost writers. You can usually find bargain prices on writers (but remember that you often get what you pay for). It’s fairly easy to set up accounts on these sites and look for writers. One of the advantages with these sites is that the escrow system protects you and the writer.

Content Providers

Sign up through content providers like Constant Content and TextBroker. This works out well if you are looking for occasional pieces and not really looking for a regular writer. You can have articles tailored specifically to your needs submitted to you, without too much trouble.

Ask Around

This has been the model I’ve used the most. Working your network to find writers that are already writing for people you know. If you are looking to hire a staff writer, it makes sense to ask other blog owners. If you know some other blog owners, find out which writers they use. You might be able to get a referral to a great writer that can provide you with just what you’re looking for. This can also save you in terms of advertising costs, since you are getting help from your friends, rather than advertising on a site.

Hold a Contest

A few years back I noticed J.D. Roth look for writers by holding a contest, and I tried this myself a year ago as well. You can ask writers to submit a guest post, and then have readers vote on which writer they like best. One of the nice things about this is that a lot of the writers were either writers I didn’t know about or regular readers with something worthwhile to say… so I wouldn’t have known about any of those potential staff writers without announcing the vacancy publicly. Not only can you find a great writer that your readers and customers enjoy, but you can also usually get a week or two of contributions from prospective writers.

When you are ready to hire blog writers, you have a number of options. There are thousands of blog writers for hire, just waiting for a chance at a regular gig, and you can add them to your site.

The post Where Can You Find Blog Writers for Hire? appeared first on Create Hype.

The primary concern for new bloggers often is to drive traffic and that is where they focus all their energy, but what happens when you get the traffic? If you are unable to capture the reader in an email list you have wasted your efforts. Depending on constant new traffic to generate an income from your blog is a flawed strategy. If your goal is to established a successful online venture, an email list is a must.

You have probably heard of the saying “The money is in the list” I know bloggers who earn a lot more from their newsletter than they do from the ads on the blog.

When Should I Start My Newsletter?

Unfortunately most bloggers wait till their blog is “successful” before starting to build up an email list, however by then you will have lost a few THOUSAND potential subscribers! Implementing an email list should be one of your top priority when starting a blog. One of my biggest mistakes was not starting an email list when I started blogging in 2009, don’t make the same mistake.

Why Start a Newsletter?

A newsletter is in addition to your regular blog posts, not a replacement. A newsletter gives you the opportunity to provide your subscribers with exclusive content, offers and products that is not available on your site. A newsletter is a more intimate way to build a relationship with your readers. I get almost 3 times as many emails from my newsletter subscribers than I do with from my readers and the emails are always longer and more in-depth. More engagement usually translates into more trust which in turn increases your chances of making sales (we all like sales!)

A newsletter is an excellent way to promote your own products or your affiliate products. Since the subscribers already have a “relationship” with you they are more likely to purchase something you recommend. About 60% of my affiliate sales come from my newsletters, but what’s more interesting is that the conversation rate of the newsletter is four times that of my site!

Although setting up a newsletter may be a little time consuming the long term benefits far outweigh the investment and the earlier you start the better your ROI.

How Do I Start a Newsletter?

1. Make it easy. No point in going through all the trouble of setting up a newsletter when nobody can find it. Bring the readers attention to your newsletter and make sure it’s easy to sign up. For example on this site you see a box on the right sidebar as well as at the end of the article.

2. Entice them to register. It’s always a good idea to offer something in exchange for the reader signing up. This can be a simple ebook, a mini course in your niche, a discount on a product etc. You don’t need to go crazy with it, just something to encourage people.

3. Value. If your newsletter doesn’t provide any value, people will stop opening your email and eventually unsubscribe. Make sure you provide valuable content.

4. Don’t Spam. Don’t send an email everyday. I usually recommend 2-4 times a month,  depending on your niche.

Use a Reliable Service

There are many email list management services available, however make sure you use a reliable one. Create Hype was using Aweber, then moved to GetResponse. I haven’t had any issues and it’s easy to use. You can test drive either Aweber or GetResponse for the first month and see how you like it.

What Others Say About These Newsletter Services:

I switched to Aweber from MailChimp because it offered much better email tracking features.  I also prefer the way Aweber handles autoresponder sequences because you know exactly who has received what email.   Most importantly, the delivery rate improved as well once I made the switch. – Steve, BumblebeeLinens.com

I use Aweber as an added benefit to subscribers. they get exclusive content, deals and promotions. – Robb, Boomer & Echo

I’ve found GetResponse to be a great service. First I moved all my email subscriptions from MailChimp to Aweber, then to GetResponse. I now have much nicer looking emails, better deliverabiltity, and a lower cost. – Tom Drake, Create Hype

The post Set up Your Email List & Newsletter Before It’s Too Late! appeared first on Create Hype.

But that’s waaay too much pressure to put on a tagline. And it’s not true.

So what is a tagline, exactly?

At its most basic, a tagline is a phrase, usually situated near your logo or in your website’s header that succinctly communicates your brand’s unique message to your intended audience or likely buyers. The best ones convey an immediate benefit and the essence of the brand.

Think Amex’s “Don’t Leave Home Without It,” Nike’s “Just Do It,” Apple’s “Think Different,” Southwest Airlines’ “You Are Now Free to Move About the Country,” and FedEx’s former tagline, “When it absolutely, positively has to be there overnight.”

Taglines are especially important online because of the vast competition on the web and the edifying fact that you’ve got just 3-7 seconds to catch someone’s attention, depending on which study on web surfing behavior you read. In a sea of competing sites, you have to do something to get the attention of your ideal audience, and a good tagline can help you do that.

Unfortunately, if you research “how to write a tagline” on Google, you’ll get over 7 million results and a metric ton of conflicting advice, much of which places such a heavy burden on what a tagline needs to accomplish that you may give up in frustration on creating one at all.

Don’t let that stop you

All you need to do with your tagline, especially if you’re just starting out in your creative business or not yet well-known in your niche, is give your likely buyers a compelling reason to stick around your website, blog, or online shop to learn more about your creative offerings. And that’s it.

So how do you create a tagline?

The first order of business before you begin brainstorming tagline ideas is to get uber-clear on who your most likely buyers are and how you serve them, because everything flows from that. I can’t overstate the importance of this.

Once that’s done, the easiest way to create a tagline when you’re just starting out is to use this simple formula: [Thing You Do] + [Who You Do It For].

For example:

• Life Coach for Gutsy Entrepreneurs
• Wedding Photography for Punk Rock Brides
• Minimalist Silver Jewelry for the Style Savvy
• Copywriting for Creative Rebels Who Mean Business (hey, that’s mine!)

Now, I know what you may be thinking – snore, those taglines are boring.  Boring they may be, but if an entrepreneur who considers herself bold and gutsy Google searches for a life coach, is she going to stay and explore a website with no tagline, a website with the tagline “Life Coach for Women,” or a website with the tagline “Life Coach for Gutsy Entrepreneurs?”

While this tagline could use a little extra pizzazz, it’s a fine one to start with, and better than having nothing at all. (Unless everything else on the hypothetical life coach’s website makes it blindingly obvious who she serves and how she’s different from other life coaches in under 10-20 seconds.)

Remember, the goal here is simply to give your likely buyers a reason to stay on your site and explore. You’re not trying to convince them to buy anything or to become your BFF, you just want to grab ‘em by the eyeballs long enough to get them interested in finding out more about you and your business.

If you want to add a little more “oomph” to this basic tagline, throw a colon after it and further define your brand’s essence, your personality, or more about who you serve.

Let’s do this for the examples above:

• Life Coach for Gutsy Entrepreneurs: Your Next Bold Business Move Starts Here
• Wedding Photography for Punk Rock Brides: Your Story, Told Your Way. No Clichés Allowed.
• Minimalist Silver Jewelry for the Style Savvy:  For Those Who Want to Make a Statement . . . Subtly
• Copywriting for Creative Rebels Who Mean Business: Because We Don’t Believe in the Term “Starving Artist” Around Here

Caveat: Most branding and copywriting experts will tell you to be clear, not clever, and I wholeheartedly agree, but there’s nothing wrong with adding some personality into the mix.  Because again, what we want is for the right person – your most likely buyer – to find a reason to stay on your site and find out more about what you have to offer.

Keep in mind, the “thing you do + who you do it for” is only one kind of tagline. There are many other kinds of taglines and ways to create them, but if you’ve got nothing now or you’re just starting out, this is the fastest and easiest formula to follow.

The post Taglines 101: How to Create a Tagline for Your Creative Business appeared first on Create Hype.

I’ve been there, and I decided to do something about it. I took on a philanthropic project that changed my life and business forever. Today I am here to break down, why this is one plan you need in your business model.

Let’s start off with a quote from Richard Branson.

“We must learn that doing good is good for business. If we start to be a force for good, I genuinely think we could get on top of most of the problems of the world. And people will have a lot of fun. It is just such a satisfying way of doing things.” ~ Richard Branson

1. Satisfaction

There is no greater satisfaction than knowing you are making a difference in the world. It feels good to show your children what really matters isn’t the weekly paycheck, but leaving a legacy.

You and your business can be the change you wish to see and when you become that, your passion and joy increases like no other. In my interview with Danielle La Porte she simply stated, “It just feels GOOD.”

2. Visibility

Every entrepreneur especially those of use who work their bootie off wants to be seen. We want more traffic on our sites and we want to connect with business big shots.

What better way to be seen than to do good. Case in point, Tom’s Shoes gives one pair of shoes to a child in need with every purchase. I have been on their website one time and will never forget that.

In my case, when I took on End Sex Trafficking Day I invited such big shots as Seth Godin, Danielle La Porte and Carol Roth. They all said yes and now I forever have a connection with these entrepreneurs. Philanthropy was what connected us and because of that, they know my name.

3. Increased Loyalty

As entrepreneurs we shouldn’t worry about competition, you read that everywhere. But point blank, we do and it’s only natural. Philanthropy is one of the best ways to increase your customer loyalty making sure they never go to the other guy.

Why? Because your do good mission will make them feel good buying from you. They will feel as though they are a part of the change you are making, and who doesn’t want to be a part of that?

Fusing philanthropy into your business is something I believe in with my whole heart, because I know the change it caused in not just my business, but my life. It’s something we all need to take on as business owners not when we are rolling the dough, but from day one. Generosity isn’t something we can do to help change the world, but it can be part of our growth strategy- how’s that for a win-win.

The post 3 Reasons Why Philanthropy is Good for Business appeared first on Create Hype.

And that is a hard question to answer simply, because it totally depends on your biz, your products, your target audience, your niche, your time & money budget, as well as your own strengths and interests.

But there is one thing that we all have, no matter what type of business we run. Customers. Clients. Fans. Supporters. You know, real people who already like what we do! Often times we get so busy looking outwards to find new ideas for promoting our biz, or hopping on whatever platform or strategy that is being touted as the next best thing in small business marketing, that we forget about what is right in front of us.

Our existing customers.

Showing your customers a little love is a great marketing strategy, and it is well worth your time to come up with a concrete plan to ensure that ‘customer love’ doesn’t fall through the cracks when you get busy or when the next shiny bright idea comes along.

Here is why you need a customer love plan…

• It costs less/requires less time and energy to maintain existing customers than it is to go find new ones.
• It is much easier to sell something to someone who already wants it, so focusing on people who already love what you do can make marketing and selling feel a lot easier!
• People buy from people they know and like, so building a relationship with your customers will pave the way for future sales & referrals.
• People love getting something extra or unexpected, so going above and beyond with your product & service will make a bigger impression than many other marketing efforts ever will.
• People love to tell stories/brag about something great that has happened which is another reason to go above and beyond with your customer service and foster word of mouth.
• Referrals and word of mouth marketing can send you a constant stream of new “right” customers with little added cost or effort on your part.
• People love to be thanked and to feel appreciated, so when you do get a referral or a testimonial be sure to thank the referrer (and maybe give them some token of thanks as well) and you will foster a long term relationship that will lead to more referrals!
• Testimonials act as social proof to others who come along; they build trust, reduce fears, and when everyone else seems to be raving about what you do others will jump on board to find out what the fuss is about!
• Dealing with concerns/complaints immediately and effectively is imperative; you don’t just demonstrate professionalism to the current customer you send a clear message to all potential customers (especially in this age of social media.)
• Following up with customers after they have made the purchase shows that you care about them and their needs (not just making the sale, but making sure your customers are happy) and will help you stay on the radar of that customer for future purchases.
• People who already love what you do are very effective at building buzz for any new things that you launch because they genuinely want you to be successful.
• Your loyal customers and fans are a great source of information; they can help make your current offerings even better, help you test new ideas for products & services, and give you feedback to grow your biz.
• Focusing on your core group of loyal customers can offer a lot of information and insight about who exactly your ‘right people’ are: their problems/fears/concerns, how you best help them, where you can find more like them, and what you need to say to them when you do.
• Dealing with people who love what you do is way more fun and rewarding than pounding the pavement and hocking your wares. Building a long term relationship with your customers feels really good, and will keep the joy in your business.

None of this is really new. We all know that customer service is a key way that we can stand out and make an impression with our small businesses (and sometimes it is the only way we really stand out.) And you might already do these instinctively, but creating an actual ‘customer love strategy’ and including it in your business plans will ensure that it never falls by the wayside, and that you never miss out on an opportunity to build a stronger relationship with a customer that already likes you!

So in your strategies for your biz have a plan in place for:

1. going above and beyond for your customers (any extras you can incorporate & where)
2. collecting testimonials
3. encouraging word of mouth (or at least making it easy for people)
4. thanking or possibly rewarding customers for referrals
5. checking in with a customer after a purchase
6. surveying customers about future needs/asking them to help you with new products
7. dealing with complaints

By taking some time to build customer love right into your marketing strategy you will ensure that you always have a steady stream of your ‘right’ customers coming your way. Doesn’t that sound awesome?

The post All You Need Is Love (Customer Love, That Is!) appeared first on Create Hype.

What are Estimated Taxes?

Estimated tax payments are used to pay taxes on income not subject to withholding.

First, let’s define withholding. Anyone who has been an employee of someone else has seen the amounts taken out of his or her paycheck for tax purposes. Part of this is your income tax withholding. The IRS requires employers to retain, or withhold, amounts from paychecks to cover the employee’s income tax liability. The amount withheld is based on information you provided to your employer on your Form W-4 usually at the beginning of your employment. Rather than receive a lump sum every April 15th, withholding allows the IRS to receive payments as often as the employee does.

Employees (taxpayers) then true-up this amount every April. Income tax for the year is calculated (with all relevant credits and deductions) and the taxpayer either submits further payment or gets a refund, depending on his or her situation.

This situation is slightly different for people who are self-employed. As there is no employer to withhold income from paychecks, self-employed individuals are required to submit their own withholdings quarterly.

Some people are both employees of someone else and self-employed. For them, estimated taxes are due on the amount of income they make from self-employment if their employer withholds taxes on the income they make as employees. People doing part-time or contractor work also need to be aware of whether or not their employer is withholding taxes.

In the end, it is your responsibility to make sure your tax situation is correct. Everyone’s tax situation can be different, so be sure you know the facts as they pertain to you.

In most cases, you need to pay estimated taxes if:

1. You expect to owe at least $1,000 in taxes for the year after subtracting withholdings (if any) and refundable credits. (Note: refundable credits are those that provide you a refund if your tax liability is zero or less. Some examples are the Earned Income Credit and the Additional Child Tax Credit).
2. You expect your withholding and refundable credits to be less than the smaller of:
   1. 90% of your total expected tax for the year, or
   2. of the tax on your prior year return.

In short, you want your withholdings and refundable credits to cover at least 90% of what you owe this year or 100% of what you owed last year. If they don’t, and the difference is $1,000 or greater, you need to pay estimated taxes.

Special rules apply if you are considered high income – meaning that your adjusted gross income for 2014 was more than $150,000 ($75,000 if your 2015 filing status is married filing separately) – or if you are a farmer or fisherman, so consult your tax professional if any of these situations apply.

You do not have to pay Estimated Taxes for 2015 if you meet both of the following requirements:

1. You were a US citizen or resident alien for all of 2014.
2. You had no tax liability for the full, 12-month 2014 tax year.

How do you calculate Estimated Taxes?

The easiest way is to begin with you prior year return and adjust for changes in the tax law and/or your personal situation.

Changes in tax law include enactment or expiration of tax credits and deductions that would impact your tax situation. For example, the standard mileage rate for business use of your vehicle can change every year. An increased deduction may decrease your tax liability, so it should be considered when computing estimated tax payments.

Changes in personal situation include events such as marriage, divorce, birth of a child, sale of significant personal property (such as a house), and other large life events that would change your tax status. For example, child tax credits are refundable, so an additional child would reduce your overall tax liability and your related payment due each quarter.

The IRS allows for two methods to calculate the amount you owe.

1. Regular Installment Method. This method assumes that all of your income for the year comes to you evenly and regularly throughout the year. In simple terms, you calculate how much you will earn for the year and the taxes you will owe on that amount. Then, you divide your tax liability by four and pay one-fourth each quarter.
2. Annualized Installment Method. This method assumes your income is not regular over the course of the year. Perhaps the product or service you sell is seasonal and you get most of your income around the Winter holidays. This payment calculation method allows for swells and inconsistencies in income and throughout the year.

How do you pay Estimated Taxes?

Individuals should calculate their federal estimated tax liability using the Form 1040-ES.

While estimated taxes can be paid by mailing in a check or money order with the proper payment voucher for that quarter, the best method is to pay online. The IRS strongly encourages online payment. By paying online, you are able to ensure timely receipt of your payment and can pay with credit or debit card.

State Estimated Taxes

If your state collects an income tax, it likely also collects estimated taxes. Visit your state’s department of revenue website for more information.

Penalties

Individuals who don’t pay or underpay their estimated taxes generally face a penalty unless the total amount of withholding and estimated tax payments is equal to:

• 100% of your prior year tax liability, or
• 90% of your current year tax liability

Again, special rules apply for high income individuals and those engaged in farming or fishing.

Penalties are figured separately for each period, so you may owe for an underpayment in a prior period even if you paid enough later to “catch up” on the amount due. It’s very important to calculate the proper amount due each period and pay it on time!

The post All You Need to Know About Estimated Taxes appeared first on Create Hype.

Are you running a FEAR-based business?

Fear is one of the biggest roadblocks to young aspiring entrepreneurs looking to start a business. It causes you to second-guess yourself, your experience and your talents, to assume that the value that you bring to the table isn’t really value at all, and that the risks of potential failure are all too tangible. When you operate your business from a place of fear, you place yourself in a dangerous downward cycle of “What If?” thinking:

What If I fail, and look like a fool because of it?
What If I fail, and have to start over?
What If the business never makes any money and I can’t afford to live?
What If my ideas turn out to be stupid, or unappealing?
What If somebody steals my ideas that I’ve worked so hard to formulate?
What If people don’t take me seriously?
What If they find out that I’ve never done this before and I lose all my credibility?
What If…

You could go on for days listing out all of the potential “What If” scenarios that can happen in your business, but all that would do is give more credibility to your fears. The best way to overcome the fears behind this “What If” mindset is to essentially diminish the credibility those fears have in your mind by asking yourself, “Just how likely is this to really happen?” Anything is possible, but is it probable?

And while you’re breaking down the credibility of your fears, it’s just as important to focus on increasing your confidence as a professional so that you’re producing positive thinking to replace those fearful thoughts. So where can you start thinking positively to break down your fears, boost your confidence, and benefit your business in the process?

Fear-Buster #1: Own Your Expertise

Chances are you decided to start your business based on a product or service around which you have a decent amount of knowledge and experience. Even if you’re starting from scratch in a business that’s built around something you love but maybe don’t have experience in, it’s likely that in doing your research and planning you’ve learned a thing or twelve about your niche area.

When potential customers come knocking on your door, it’s because they are interested in your products or services and view you as the expert. They want to believe that you are a reliable and trustworthy source with whom they can feel good investing their money. And they want to buy from someone who is confident in their products in services and the value they provide, not someone who is shy and modest about their talents. So own this expertise, and don’t be afraid to walk that walk.

Many people feel like a “fake” when they’re first starting out and lack the hands-on experience you might associate with being an “expert” in something. But you have to start somewhere, and knowledge is power. Don’t be afraid to talk to people, everyone you meet, about what you do, about your business, your products or services, and what makes you interesting and unique. Your title as “business owner” is not defined by a certain revenue point, or “x” number of customers; it’s defined by you, and your passion around what you do. But in order for others to believe you and feel good about your ability to provide them with a quality product or service, you have to believe it yourself. And the more you practicing talking about the value and presence of your business, the more natural it will feel and become.

Fear-Buster #2: Define the Value You Bring to the Table

Another common fear many new business owners have is that people won’t like the quality and value of their work, or that people will think they’re not good enough. But you as the entrepreneur, the creative brain behind your operation, know fully well why the work you do and the services or products you provide are valuable, what’s unique and interesting about them, and why someone would have a great experience engaging with and buying from you. It’s important to be able to define the value that you can provide to your target customer, and why they should trust and buy from you, and only you. Maybe you have a unique background that really brings an interesting angle to your business, or why you chose to work with a particular market segment.

Perhaps your products are made from eco-friendly materials, or are produced in a special way that makes them cost-effective. Whatever that unique value that you bring to the table is, whether it’s your experience, knowledge, talent or your products and services, make sure that message comes through loud and clear to your audience.

Fear-Buster #3: Set Goals that [Slightly] Intimidate You

If we’re talking about overcoming our fears of failure in business, it might seem counter-intuitive to suggest setting goals that seem intimidating. But it’s more about pushing yourself to set goals that are slightly a stretch to help you develop confidence in yourself and your business, and your ability to produce quality results. And when you make a practice of setting higher and higher goals each time that stretch your capabilities and talents, you set yourself up for growth both in your business and as an individual.

Too many new business owners fall into the trap of setting goals that seem overly attainable because they want to play it safe in the beginning. And when you lack experience running your business, it can be difficult to have a strong confidence in your ability to reach those higher goals. It’s important to challenge yourself so that you continue to grow, learn and evolve. The AIM SMART goal-setting structure is a great practice for setting multiple levels of goals that are attainable (easier), ideal (challenging) and somewhere in between that’s a stretch, but still reasonable. This way, you’re not tied to one number, and you’re still pushing yourself to reach a little bit higher each time, while keeping a realistic perspective on what is and is not attainable at that particular point in your business.

Fear is a natural part of starting a business, and a natural part of our own growth process. But knowing how to recognize when and where fear is holding you back will allow you to better manage it when it rears its head, and not allow it to stifle your creative efforts. Running a successful business often involves taking risks, and requires confidence, strength and ambition. If you allow fear to drive your decision-making process, you essentially starve your business of those necessary ingredients for growth.

The next time you sense your fears getting the best of you, recognize their presence, and then diminish their power by asking yourself, “Just how likely is this to actually come true?” And then remind yourself that you are the expert, you bring value to your customers and your audience, and use that confidence to consistently set goals that bring you one step closer to the vision you have for your own individual picture of success.

If you want to give your business a jumpstart, I’m offering a 3-week Business Quick Start Program.  I help you put together an exit strategy to clarify your vision for your business and help you set your financial goals to transition out of the current career or job so you can move into the next phase of your business.

The post Are You Running a Fear-Based Business? appeared first on Create Hype.

Entrepreneurs commonly ask me if they should establish a Limited Liability Company (LLC). LLCs are a popular way of establishing a new business, but they are not the only or, often, the best choice.

First, some definitions:

Sole Proprietor – a business owned and operated by an individual

Sole Proprietorship is the default classification for anyone who is earning money on their own (rather than as an employee of someone else). This is business at its simplest form.

While you will not have to file anything with the Federal government to operate as a sole proprietor, your local jurisdiction may require you obtain a business license. Check with your city’s business office.

Additionally, if you operate as anything other than your legal name (e.g., calling your business “Party Plus” rather than “Ann Jones”), you will need to obtain a “doing business as” license. This is also known as a “DBA” or “fictitious business license”. Each jurisdiction has different requirements for obtaining this license, so be sure to do your research.

A drawback to being a sole proprietor is that there is no distinction between you and your business. If you are sued in the course of your operations, you stand to lose your personal as well as business assets. This is one of the key reasons entrepreneurs look into other business structures.

LLC – a hybrid business structure that combines features of the corporation and partnership

The most popular feature of the LLC is the personal protection from business liabilities. With an LLC in place, a lawsuit may still be able to clean out your business assets but likely won’t cost you your family home.

Many entrepreneurs form single-member LLCs. This means that they are the only owner – they do not have a partner. In this case, income earned by the LLC (business profits) are reported on the member’s Schedule C and filed with the annual tax return.

If you are looking to form an LLC with more than one member, I cannot stress enough the importance of talking with a lawyer to draw up an operating agreement. While few people go into business with a friend anticipating things going awry, strong legal agreements set in place before things go sour can be indispensable. This agreement will also determine how items of income and expense pass through to each partner to be claimed on that partner’s personal tax return for the year.

LLCs are regulated by the State rather than the Federal government, so requirements – and fees! – vary depending on where you live.

What to choose

Clients sometimes come to me thinking that forming an LLC is a must. While making your business an LLC is generally not a wrong idea, it’s not always the best idea.

If your key concern is personal liability for business issues, consider business insurance. Depending on where you live, it could be cheaper than filing LLC paperwork. Additionally, take time to consider how litigious your industry is. Look at your key competitors to see how they’ve structured their business.

Keep in mind that you have more than two options. While S-Corporations are less common among entrepreneurs, they offer certain tax benefits for profitable businesses.

Finally, establishing an LLC (or S-Corp) does not have to be done in the first year. You and your tax adviser can always re-evaluate as your personal or business situations change. It’s not uncommon to operate as a sole proprietor for the first couple years before adopting a business structure for tax planning reasons once profits are noteworthy.

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Sounds so romantic, doesn’t it? While being an entrepreneur can be exhilarating and exciting, don’t be fooled by the glamorous overtone. It’s a true test of your creative, intellectual and personal limits. Yet there are more and more young professionals leaving the ranks of the 9-to-5 to start a small business. And one thing that many of them have in common? For many it begins as a part-time side venture that we continue to nurture, build and refine while we pull in our full time salaries for months or even years, so that one day when we’re ready to take the leap, we can do so with complete confidence and a solid foundation for success.

THE REALITY OF THE WEEKEND ENTREPRENEUR

Just how does one balance building a business with working your typical 40 to 60 hour workweek? I like to think it’s driven largely by passion, motivation, and perhaps an absolute refusal to settle for less than what we feel we’re capable of achieving on a personal and professional level. Welcome to the phenomena that plagues most of Gen Y, the consistent need to ask ourselves, “What else can I be doing instead?” We’re an incredibly ambitious and driven generation, boasting multiple members who by age 30 have changed the face of technology and culture as we know it. And for the rest of us who are satisfied creating something that simply allows us to make a fulfilling living doing the work we love, the real reward is in bringing that vision to fruition, whether we do it in 6 months or 6 years.

The first phase of starting my own business was saving up enough money to move onto phase 2, which was trading in my full time job in IT for a part-time administrative job at a small design agency in NYC. Certainly not my dream job to sift through resumes and balance the bookkeeping, but it was just enough supplementary income to cover the bills without depleting my savings, and it freed up a good 3 days per week to focus solely on building my business. But it was incredibly important that I looked at having that part-time job not as a diversion from my goal, but as a stepping stone bringing me closer toward it.

Even the business moguls of the world like Donald Trump and Robert Kiyosaki talk about the importance of keeping a part-time job, or some other supplemental income source during the startup process (I’ll let you read “Midas Touch” on your own). Smart entrepreneurs understand that starting and building a business is a process that can take several years to truly prosper into a profitable and sustainable venture. If you’re not willing or able to ride out the 12-36 month startup phase without a salary, it’s best to keep your income options open and diversified. What does that mean exactly?

DIVERSIFYING YOUR INCOME STREAMS IS THE WAY TO GO

Careers no longer have to be limited to one’s primary money-making occupation. We can use our talents to cater to different audiences and provide a variety of services and products to make a living. We can expand into new side opportunities to not only maximize our earning potential and build a career safety net, but continue to build new skills that may open up additional doors for future opportunities.

This is certainly a great strategy for jobseekers, and an even better strategy for budding entrepreneurs. Whether you take on a part-time job while working on your business, or you stay in your full time career for awhile, you’re essentially creating multiple income streams that can help support you through the startup phase. This not only serves as a great professional network-builder, a way to start tapping into your target market, but it also lessens the financial risk and stress of trying to attain immediate profitability so you can survive. Believe you me, there is enough stress involved with running a business, and the more you do to lessen the financial burden, the more you will be able to focus on actually growing your business to a sustainable point.

STARTING UP TAKES A WHILE. AND THAT’S OKAY.

During my first year in business, I was lucky in that I had a consistently profitable first 9 months. But eventually my monthly revenues became erratic as I hit various seasonal points like summer vacations and the holidays. Those who had been in business for themselves much longer than I had, and who had more of a basis for comparison, reassured me that this was simply the way of most small business, and that you just have to ride it out. In many cases, no particular month is consistent year-over-year; there are no peak or off-peak seasons in my consulting industry, and as an entrepreneur you simply have to prepare yourself for a continual revenue roller coaster.

The good thing about taking time to establish your business on a part-time basis and not having to worry about your profits while doing so is that you can start to recognize trends in terms of what works, what doesn’t work, what seems to resonate best with your customers (they really love that holiday 40% off promotion!), and get a sense of what your annual salary could potentially look like once you make the full time leap. And having those projections handy as you continue to grow and evolve will make plotting out your marketing, financial and growth strategies much easier year-over-year.

I understand from experience the urge to make that full time leap, to feel like you’re finally reinventing yourself and escaping the restrictive chains of the cubicle world. But the smarter you are about starting your business in the beginning, the better the chance that it will be successful and sustainable in the long-run. Much like a building, it’s a gradual construction process, with one of the most critical parts being the solid foundation that holds it up. Whatever brand-building timeline equates to a solid financial and strategic foundation for your business is the right strategy for you, and that may be a slow and steady part-time start.

It’s far too easy to start looking around and comparing yourself to your entrepreneurial peers, trying to decipher their secret success recipe. But always remember that your business is unique, with its own unique challenges, characteristics, brand personality and potential. And while it takes time to build a well-rounded brand that uniquely positions your business within your target market, that’s what will ultimately make your business (an you) a thriving success!

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