Friends, Romans, Small Business Owners, Lend Me Your Ears

Shawn@PRS

Shawn@PRS

yogi
Joined
Aug 23, 1985
Messages
6,871
Location
Stevensville, MD
My wife and I are starting a small business. She is an acupuncturist and I teach yoga, so we are combining forces to open a wellness studio. I'm staying at PRS, so my wife will run the day to day operations.

Any business here owners here who care to share some nuggets of advice? The do's and don'ts, if you will, of running a small business.

We are still under construction with the building rehab and I'm still working on the website, but please check out our social media pages.
https://www.facebook.com/Fair-Winds-Cambridge-1957924281181631/
https://www.instagram.com/fairwindscambridge/

Thanks in advance.
 
Congrats and best of luck!!

Some rambling thoughts...I Did the same thing a year ago myself. My advice is make sure you understand all the legalities of what you can and cannot provide for services. I opened another office in a different state than my main office, and was surprised some of the minutia that was different. Skimp where you can skimp, spend where you need to spend to grow the business. Postage seems ridiculous when sending out mass mailings, but can reach a ridiculous amount of people. Local paper advertising can range from being a bargain to "how much? for an ad in THAT paper?" Press the flesh...if you are looking for "referral" sources to send people your way, make an effort to meet with them face to face. Don't wait for something to happen...go make it happen. ( I'm my own worst enemy when it comes to procrastinating...)
Be true to your vision and believe in yourself!
 
Back when I was a young lawyer (previous career) I started a firm, and 28 years ago, started my current business for ad music.

The first “do” is be patient. Most service businesses take several years to become well established.

The second, especially since you’re still at PRS, is to keep reinvesting in the business, as opposed to drawing out too much and weakening its financial footing. A business needs enough operating cash to move and groove. If the owners need to squeeze out all the cash, the business suffers, so remember that a successful business requires sacrifice at first, but will feed you for many years once it’s going well.

Develop a strong banking relationship. From time to time you may need it; always keep your banker happy.

A good accountant is an important asset.

Marketing is the most important thing you can do; without sales, a business will go into a death spiral. Businesses don’t sell themselves - just look at Paul Smith’s many trips around the country for proof that even a fantastic, established product still needs constant promotion.
 
Wow, congrats! I probably need both services but I’m on the wrong coast!

I’ll echo the others here:

Patience
Discipline
Have a plan
Always be closing (marketing)
Your reputation is set with every encounter
I’d recommend two years expenses in cash for your home life and your biz life
A good accountant is a must
A small biz banker can help a lot
Find a mentor who has already accomplished what you are trying to achieve, ideally in the same line of work
Have a good support group
Make sure you find time for laughter :)
 
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Set up an LLC for the business, create a separate bank account in the LLC's name that you do all activities for the business from. Don't mingle the business and home funds.
Make sure to understand employee taxes when you get to that point, this includes owner self-employment taxes and expenses.

The sales and marketing thing mentioned are very important.
Get a car 'wrap' to advertise your business where ever you drive (and deduct some vehicle expenses).

Make sure your spouse understands the need for constant work and that many of your customers will want to be there in non-business hours. Evenings and weekends.

.
 
Write a GOOD business plan. Stick to said business plan.

When it seems like you don't have enough money for marketing, you should be marketing harder. But, that doesn't mean throwing money away. Try a BNI, or similar thing to help build referrals. Hand out business cards any chance you get. Get a few t-shirts, bumper stickers, pens, whatever inexpensive thing you can think of to get your name out there... and keep it out there.

Best of luck!
 
Congrats on taking the plunge.

A lot of would I would suggest has already been stated. I would second everything Les has said. Especially the part about having a good accountant. I might even suggest a second. It's nice to have one off the record to explain how the world really works.

Again, congrats. I can't wait to get stuck! :p
 
The pre-opening social media has been good. Keep that going because it might be the best way to reach your target audience. For this kind of business, establishing a local client base is key. Try to be clear about which audience you are talking to. There will be some overlap, but many of your clients will be for one service.

Be very clear with all staff about the relationship you want to have with customers and be firm about ensuring that doesn’t slip. Part of that will mean being decisive about who fits and who doesn’t. A resume and an interview don’t always match up with day to day behaviour. I never liked firing people, but I decided pretty early on that it was better to do it early than to drag it out - more important in some jurisdictions than others, but my main driver was preserving positive relationships between staff and with customers.

As far as the business, I think the important things have been said. Look after the money. Be clear with yourselves how much time you can afford to cover the business getting to a self sustaining level; i.e. positive cash flow. There will be important decisions to make once you get there, but you don’t have to make them yet. Make sure you understand your potential liabilities and that you have the appropriate insurance coverage for them.

Good luck. I’ve been excited about this since I first noticed it. I wish I was close enough to visit.

I’d be more than happy to talk off line anytime.
 
veinbuster said:
Make sure you understand your potential liabilities and that you have the appropriate insurance coverage for them.
Click to expand...

Some insurance pitfalls small business owners fall into:

Make sure that you understand the difference between 1) general liability and 2) professional liability insurance. If your agent doesn't at least address professional liability coverage, you should find a new agent. Also, most states require workers compensation insurance even if you only employ part-time workers, and make sure you understand the definition of "independent contractor" in regards to State insurance law. It is different than tax law and the liability is strict as opposed to negligence triggered. Finally, data breach and employment practices liability and discrimination are hot claims today and should be addressed with insurance.
 
On second thought, I do have some advice; this is a big undertaking, and will likely push things for both you, and your wife. Remember why you're doing this when/if things get hairy. Keep the business side separate from the personal side. Leave time for you two to be a couple. And, above all, when the day is done, leave it all in a little brown bag outside the "office" door. It'll be there waiting for you in the morning. Easier said than done, of course. Remember, you're life partners before you're business partners.
 
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