10 BUSINESS TIPS

Ten tips every business owner should know and that includes you. The ones at the end are going to bend your brain you're going to love it first some llc tips you can form llc's out of state using a registered agent there's a lot of places online right that you can do that but you can also buy shell corporations which are older so if you don't want to wait around for your llc to be two years old you can go buy what's called a shelf corporation and buy them online so you can have an instantaneous two-year-old business which helps you get approved for stuff and three if you want to start your own business start your own llc and you want to work fast get your ein number today just go to the secretary of state website and self file your llc in your home state because you can get your electronic documents same day then you can go to irs.gov and get your einnumber that fast which means you can go get your dun and bradstreet number that fast as well little bonus 1.5 is done in bradstreet will also give you your dun and bradstreet number same day if you mark that you might eventually apply for a government grant they'll just instead of making you wait two months they'll give it to you right now everything can be outsourced that's number two see as a business owner you're good at a few things you should not have to be good at everything and trying to learn everything will slow you down so if you want a graphic designer web developer in my Airbnb business a housekeeper or handyman you can go to places like thumbtack taskrabbit upwork any place like that and you can or fiverr even and you can go and find people who are experts at what they do and you can pay them contractor piecemeal and that's a great way to grow your business without having to learn everything it takes us to number three which is understanding the difference between contractors and employees it's by far cheaper to utilize contractors to grow a business because you don't have to pay their half their fica and their social and all that stuff but there's a very fine line here and you need to understand it you cannot tell a contractor how to do their job you cannot tell them when to do their job there's so many things that you cannot do like you cannot give themcompany equipment you have to lease them the company equipment they have to pay for it even if it's a dollar a month because contractually you cannot provide them the tools that they use for free to do their job otherwise they become employees and if you don't do this right you end up in a workers compensation orunemployment uh snafu and you might end up paying a lot of money on the back end contract law tips is number four it pays to be thorough not smart when you do contract law see you don't have to know all of the english all of the jargon a lot of contracts are written in legalese because it makes it easy for lawyers to charge you money for it but it's the intention of the contract that really is what is argued in court and so even if you use plain language layman's terms and you write out that contract to have clear meaning even though you didn't say it eloquently that contract will stand and other tips for contracts is there's something called uh vidcoactus which is under duress in latin and if someone tries to get you to sign a contract where you don't have time to review it and or you're signing against your will because they're like coercing you in to do it like fear of loss like they're they're threatening you you could lose money right now if you don't sign this contract you can just write vc next to your name when you sign which is a self testimony that you were under duress atthe time of signing that contract so if you ever have to take that contract to court later you can dissolve it and say this was not willfully signed I was actually you know about to lose twenty thousand dollars in a shipment and this person hit me with this wild contract last minute that I couldn't read but in order for me to get my shipment within the next few minutes and not lose to 20 grand I had to sign it right now you can give that testimony and course will break that contract for you business partners tip number five you do not needbusiness partners a lot of time people pick up business partners in business because they want to have the confidence that someone else can help them out and grow the business with them where people feel incomplete but if you went back to my you can outsource everything thing the whole point of this is we just want to know that someone else can do something that we cannot do and so if you ever consider taking on business partners you should first always imagine what would what it would be like if it goes wrong many people that I know who start businesses as newbies and then have business partners they end up getting screwed by their business partner for example my father went to school with the girl whose father started dungeons and dragons well the guy who started dungeons and dragons had his friend as a business partner and that friend was smarter than him and ended up stealing the whole entire company and driving the founder of dungeons and dragons back into poverty see this can happen to you if you're not careful so if a business partner does not bring something that you absolutely cannot get your hands on without them likeproprietary information best practices some sick deal flow that your business needs then don't partner with them and this includes a fundraising tip number six is that when you fundraise you should always opt for debt over equity if you are sure about your business now you need to be objective with yourself everybody like you know the cute baby syndrome a lot of business owners they love their businesses so it's like how pretty is my baby now if you are a brand new business owner and you really know jack about business thenyeah maybe taking equity is cool because if you strike out there's not going to be any debt but if you form your business the right way and negotiate it the right way debt is always cheaper than equity because if you ever sell your business or you keep it for 30 years and it's profitable the person who just gave you like fifty thousand dollars for ten percent of your company gets ten percent of that profit for life and that getsexpensive so don't take equity if you can take debt businesses build credit so much faster this is number seven see once you get that ein number in the dun and bradstreet number you can go to s-e-t-o-n.comseton.com and they're going to give you something called the net 10. this is an example of a trade line that you're instantly approved for with that one company you go to different company that's you l-i-m-e that's uline.com you make a purchase for them over 50 bucks or over 100 bucks and then next month you can make another purchase but it's on what's called a net 30. and net 30s are how businesses track each other for credit and the tips to growing your business credit fast is to pay that net 30 off as early as possible see how your score goes is how many days before your net 30 expires did you pay your debt so if you paid 20 days in advance you are going to have a really high score and you can build your score up in just as little as three months so go and do that and then go on amazon.com and get the amazon prime business card and this might be your very first non-personal guaranteed business credit card that you can get once you start getting these non-guaranteed personal business credit cards you can go to places like chase bank and get an ink business card because you have proof that someone else is trusting you and that's how you build your credit and I would say slowly because it everything requires patience but this is far faster than trying to build your personal credit there is a point where you don't need a personal guarantee anymore as far as like lines of credit go chase bank is one of the strictest companies for getting credit but if you revenue more than threemillion dollars a year you can get a business line of credit that is non-personal guaranteed if you're thinking of starting a business and you're a little bit lost in the woods number eight the tip is to understand where most businesses come from over 80 percent of all founded new fresh businesses are founded by someone who isservicing the company that they used to work for or competing with the company that they used to work for see when you're breaching into the unknown you want to retain as much expertise as you can imagine it as a venn diagram this is everything you know and if you go to a new opportunity this way up here you have nothing in common with that opportunity but if this is everything you know and this is your new businessthere's a lot of overlap there right so my first company I sold newspaper subscriptions and that was the first one I succeeded in the one I failed and I tried to sell teeth wedding kits and that went okay but I didn't understand anything about import export and they froze my teeth winding kids at customs and that's how my company went out of businesses I ran out of product because I didn't understand how to import stuff I was like 22 years old 23 years old it was kind of kind of rough so try to form a business that overlaps in yourexpertise or that you are servicing the company that you used to work for because now you have what's called intangible assets and let's put that on number nine intangible assets are anything that your company can have that you cannot really put on a balance sheet it's not like a couch or a car or a crane or actual cash right those are tangible assets but intangible assets you need to write all these down do you have trade secrets do you have proprietary methods of doing something no one else can do you have patents do you have intellectual property do you have a client list people that you can sell do you have access to humanresources like employees that you can hire that you know leaving a company do you have influence like this YouTube channel I’ve got what you would call a favorite bank with people who have helped them build their businesses and if I ask for a favor they'd be glad to return these are examples of intangible assets write every single thing the study intangible assets first and then make a list of everything that you have because this can help you pitch for money if you ever want to pitch for money but this also can help you understand that you're fighting with more than just the dollars in your pocket generalists are more successful on average than specialists this is number 10. if you're going to start a business you need to widely encompass all the people that work for you if you're subject matter expert in technology and you start a business you'll become the chief technology officer in that company that's pretty damn cool for a tech business that's about as high as you ever want to go a ceo is the person that runs the whole board of the c-suite right chief marketing officer runs all of marketing the ceo is technically higher than the cmo or the cto or the cfo so that's why the generalist that runs the whole panel of like like specialist c-suite dudes that's why that guy's the rockstar that makes it into forbes magazine because generalists are the ones that piece everybody together you can trustspecialists to give you the information that you need to run your company and the ability to trust those peoplewithout questioning them without micromanaging them don't be helicopter mom this is how big companies are able to act scrappy because the cfo says this is what we need to do with our cash this is what we need to do with our debts the technology officer says this is where we're weak against our competition and where we need to innovate the marketing officer says we've got a gap in the market that we can take a lot of revenuefrom if we market appropriately right and then the ceo is like okay how do we put this all together see that's why generals are at the top of the military that's why ceos are at the top of the business do not think that you need to be super smart in any one specific category or all of those categories jack ma doesn't know much about much but he hired a lot of good people and now he runs alibaba this channel teaches how to Airbnbbut I’m a business owner with four successful startups follow for more tips on how to Airbnb how to grow abusiness how to be a leader.