How to Start a Successful Business, Part 1: Before You Begin

At Freedom Consulting, LLC, we understand the desire to dive into a new business venture head-first.

We know what it is like to want to just start!

BUT.

When it comes to setting up your new business for success, thinking things through is the most important thing you can do!

Starting a business is not something to take lightly – especially if you count on this business for your livelihood.

The first step toward success is understanding your reasons for starting your business.

Why are you doing this?

Why are you leaving your “old” life behind and embarking on this new journey?

Are you running from something? Or toward something? Be honest.

If you’re running from something, you might want to reconsider starting a business.

But if you are running toward something…

Something you know you must pursue, or you will always regret it…

Maybe business ownership is for you!

Starting your own business certainly won’t fix all of your problems.

In fact, it will create brand-spankin’ new ones.

You’ll be putting out fires every day – dealing with things you never dreamed you’d deal with.

But you’ll also learn. And grow.

And through your business, you may transform your life into something you hadn’t thought it could be.

So if you’re ready to face whatever comes your business’ way…

And if you know in your bones that this is your time…

Then LET’S GO!

HOLD ONTO YOUR “WHY”

So you have decided that you’re really in this thing.

Congratulations! You’ve made it past the first step in starting a successful business!

You found your “why.” 

Your business journey has begun, grasshopper!

Being honest with your motivations behind owning a business and holding onto those reasons will help you when times get tough.

We are going to harp on this point.

Because it’s really, REALLY important that you know – backward and forward – why you are doing this.

Self-doubt will creep in sometimes. That’s just part of life.  

But when that happens, you will be prepared. 

Because you know who you are and why you’re running this business of yours.

Know, also, that you can transform that “why” into whatever you need it to be to stay motivated.

You CAN do this!

SET YOUR WORKING BOUNDARIES

When talking with customers, it is important to be very clear & up-front with the purpose and scope of your business.

What are your business hours?

What and how much – precisely – are you willing to offer your clients?  

Don’t be afraid to set boundaries and stick with them. Customers are not afraid to test those boundaries – and will. If you’re not clear and consistent with your policies, you will have difficulty navigating those trying situations.

Don’t overthink this – just know that difficult clients will arise and that not everyone has your highest good in mind.

With this knowledge, you can take steps to protect yourself from the ne’er-do-wells and those who want your services for free. One of the best ways to do that is to prepare your boundaries, your contracts, and your mind – and stick to your guns. 

There are good people everywhere. But not everyone is worthy of your trust. Finding good clients – and learning to market to them – is a skill that will come with time.

CHOOSE YOUR NICHE

Finding your niche is a good way to flesh out your target customer and start effective marketing campaigns.

Say you’re starting a spray foam contracting business.

Which spray foam service is your focus?

Does your community have a lot of historic houses that need foundation attention? Maybe your niche could be foam wedging – serving your community by ensuring the safety of your town’s historic district.

Are you in an area with a high number of chicken farmers who may be struggling to regulate the temperatures in their chicken houses? Maybe that’s the perfect niche for you!

There are endless possibilities when trying to find your niche – and it doesn’t need to stay the same forever!

Your focus can change with time or with emerging needs in your community – but you have to start somewhere.

Once you find a niche you’re interested in pursuing, you can market your services more effectively.

DECIDE ON A BUSINESS STRUCTURE

There are several business structures you can choose from, all with different benefits to you and your business.

In the United States, a sole proprietorship is the type of business you have if you’re working alone and you just start.

Sole proprietors are synonymous with their business in that their personal taxes are tied to their business taxes. 

Are you partnering with someone else?  

Then instead of a sole proprietorship – which only involves one person – your business would be considered a partnership. All financial and legal responsibilities are shared between business partners.

An LLC – or limited liability corporation – is another popular business structure. LLCs separate your personal and business taxes and add an extra layer of protection to your personal assets if a lawsuit is ever brought against your company (heaven forbid).

Taxes and lawsuits are not the most appealing things to think about during the exciting time that is forming a business – but they are important things to consider.

There is nothing wrong with a sole proprietorship or partnership – it’s all about how you would like to keep track of your business taxes and finances.

Also, the business structure you choose now – at the beginning of your business journey – may need to change in the future. Know that you can do so when necessary.

SET YOUR PRICES

Business pricing depends on many things. Market prices should be considered when setting your business rates – but remember that your business is your own and that it is your livelihood.

You will need to be able to survive off of the profits.

So don’t undercut your worth because large corporations or bigger contracting companies are able to do that.

You have strengths that are different from the large companies surrounding you, including a friendly face and a personal connection with your customers.

Trust is HUGE for clients making purchasing decisions – especially with something like spray foam insulation or petroleum exploration.

They count on YOU to help them, and many are willing to pay that little bit extra for a job they know will be done well.

When setting your rates, a good rule of thumb is to ask yourself if you would be comfortable paying the prices you are considering. You don’t want to set the bar too high – but you do want to set prices that motivate you. 

If your prices are too low, you won’t want to complete the work you receive. If you’re unable to motivate yourself to complete your work, your business will not be sustainable – and will ultimately fail. 

No bueno.

Don’t forget your expenses when setting your prices – like material and equipment costs and taxes you will pay. Expenses cut into your profit margin, and profits are what you live on, man.

Is it all about the money? Not at all – but that doesn’t mean you should short-change yourself because you didn’t think your pricing through before you made a bid.

So. Do some research and choose pricing that you are comfortable with, covers your expenses, AND makes you excited to live that business-owning life!

Like anything else, you can adjust your prices as needed.  

DECIDE HOW YOU WILL TAKE PAYMENT

While we are on the topic of money, let’s dive into how you plan to receive payment. This depends somewhat on your business type but really comes down to personal choice.

If you want to accept credit card payments, there are several convenient platforms available to you online – like QuickBooks, PayPal, and Square. You can invoice customers through these platforms, and some of them even double as accounting software.

Other payment options include personal or electronic checks and wire transfers. Banks and online payment platforms may charge fees for any or all payment types, so comparing which payment options are right for your business before you get things going could save you a good chunk of change.

To receive most forms of payment, you’ll need a bank account. Opening an account for your business that is separate from your personal bank account is a simple way of protecting your personal assets and is worth consideration.

Regardless of how you decide to accept payments, we recommend you require them up-front. People may mean well, but eliciting payments when you are no longer face-to-face with customers – especially after the work is completed – can be very difficult.  

If you aren’t able to take all of the payment before the work is completed, at the very least, make sure that your customer covers the material costs for the work you will do – just in case.

Strict business policies surrounding money will protect you from getting scammed or stiffed by your customers – who are often good people. It’s much easier to set strict boundaries and loosen them than the other way ‘round.  

Something about teaching old dogs new tricks comes to mind…

DECIDE HOW PEOPLE WILL CONTACT YOU

Lastly, before you being your successful business, you will want to determine how your customers will contact you.

If you want to protect your personal phone number, investing in a business phone might be worth your consideration. With this boundary in place, it will be easier to unplug outside of business hours. 

It is also a good idea to set up a business website and email address. Having a website gives customers a way to research your business, products, and services before contacting you.

Customers love the ability to do their own research – and the information they find out before reaching out to you can save you a lot of time.

A business email address can be as simple as setting up a free Gmail account using your business name. This can be a great option, especially if working with a tight budget.  

However, if you own a website domain and want your email address to help signal to your customers that your business is legitimate, consider creating a professional email address at your web domain – something like this: todd@freedomconsultingcorp.com. 

There are many providers available to host such email services – like Google Workspace and Microsoft Exchange – but you will need to own a web domain to set one up. You can purchase a web domain from sites such as Bluehost, GoDaddy, or Namecheap. Furthermore, owning a domain name for your business is the first step in starting a website! 

Okay, now don’t panic.

If you already know that you want to start a website, but you very much like someone else to set it up for you, reach out! We partner with a web designer who can help you with that.

If you want to try your hand at designing your own website, stay tuned. We have another blog post in the works to help you. In the meantime, there are countless resources available online for learning to set up your business website. Informational videos and tutorials on YouTube are a great place to start.

Once you have a website set up, your customers can contact you through a website contact form. Contact forms give customers the chance to interact with your website and let you know that they visited it. Win-win!

Another popular way to communicate with your clients is through social media. Facebook, Twitter, and LinkedIn – to name a few platforms – are available to your business for marketing. They can be great tools.  

If you don’t have a professional website at the moment, a business Facebook page may be just the thing you need to help customers find you and start growing your brand.

CONCLUSION

There is much to consider before starting a new business – so much that it can be overwhelming.  

Luckily, Freedom Consulting, LLC is here to help you think through your business decisions and guide you toward success!

Feel free to contact us if you have any questions.

Thoughts become things – and your business is already blooming, right there in your brain!

Let’s work to bring that dream into reality and change the world together!

If you’re ready to get this show on the road, check out Part 2 of this How to Start a Successful Business blog post – where we outline the tangible actions necessary for starting your awesome new business.

Until next time, happy thinking!