Time to start networking...

Now that you’ve taken the basic steps to building your new business it’s time to get out there and meet people that can help you get clients, come up with new ideas, build relationships and expand your brand.  Business networking is the best way to do this.  Get the word out there.

Set a goal for yourself.  How many networking events will you go to per month?  I recommend at least 2-3.  You might often see the same people at these events but that’s a great way to build relationships and gain leads.  The more you can remind someone of your services, the more they begin to trust your professionalism and will be willing to recommend you to their business associates. Even though many of the people you meet are not your target clients or potential partners, they might offer a unique insight, share a valuable resource, or get you thinking about a new solution to your problems.

Of course networking can be time consuming and takes commitment but it really is a must as you look to get the word out on your new venture.  Additionally, some networking events are pay-per-go so it could be an investment of financial resources but there are also events you can find for free.

Consider social networking as well: LinkedIn, Twitter, Facebook, small business boards.  Social networking sites allow people to create new relationships and reconnect with friends and family. Increased communication, even online, strengthens relationships.  Social networking sites bring people with common interests together and offer exposure to new ideas.  Some people might not have the best communication skills in person or even suffer from social anxiety so interacting via online resources can be another helpful option.

Here are some useful networking organizations you might want to consider getting involved with: First Degree (http://www.breakfastnetwork.com/), New York City Networking Group (http://www.meetup.com/The-NYC-Business-Networking-Group/), Gotham City Networking (http://www.gothamnetworking.com/).  You also might want to consider using your high school or college networks.  Get in touch with your alumni associations.

Make sure to bring lots of business cards with you to hand out.  Don’t be shy.  Go up to people; introduce yourself.  Start up a conversation.  Ask them what they do and they’ll ask you in return.  Collect their business cards.  Follow-up with them quickly via email or phone.  You might want to consider setting up one-on-one, face-to-face business meetings with them so that you can talk to them in more detail.  You know what they say: “You scratch my back, I scratch yours.”  Make sure you have your pitch down pat.  You want to be quick and concise in your message of what you do.

So what have we learned here today?  Get out there.  Get the word out about your business.  Meet people.  Build relationships.  Your business doesn’t exist in a vacuum.  You can’t be successful solely on your own.  Don’t be afraid to ask for help or seek advice from like-minded individuals.  Your business can only grow as big as your network.  Be proactive and success will follow.

Naming your business

What’s in a business name?  A lot, in fact.  Naming a business can be a tricky undertaking.  The name you choose says a lot about the product and services you are selling along with goals and values of your company.  After all, you’re trying to convey the expertise and uniqueness of your new venture – how you will stand out against the competition and be remembered by your target audience.  You should think about ease of pronunciation and how it will look on a business card.  You want to be memorable but not confusing.  Entrepreneurs often angst over naming their businesses.  It’s a complicated process after all.

What should your business name communicate and what does it say about you?  First and foremost, it should relay the key elements of your business – something that is long lasting and embodies the values of your company.  Experts feel it’s your best bet to pick something meaningful and broad.  Be careful you’re not overly descriptive.  For example, if you’re based out of NYC and choose to put that in the title but then decide to expand to other locations down the road this could be a hindrance.  It might be better to be suggestive – a name that is more abstract and coveys what the business is about at the core.  Additionally, think of something that is appealing to the consumer, something comforting and familiar not long and confusing.  A strong name should be simple.  Make it easy to spell and pronounce; stay away from cute puns – if you land a good one, you’re in luck.  However, you run the risk of picking something that’s overused or too “cutesy.”  Don’t be a copycat.  Just because others have had success with a certain name or phrase, you want to make sure you stay original.  You might want to consider something that lends itself to wordplay or in essence verbal branding.

Some experts suggest new forms or spellings of existing words but others warn against this.  If you name your company something that sounds differently than the way it is spelled, it could be difficult for your customers to find you online.  In this digital age, you have to keep your domain name in mind.

Next you should think about acquiring a trademark.  If you only operate in one state you do not need to trademark your business name because you already have the right to use it in that state and you are allowed to use it in other states.  However, conflicts could arise once you expand into new markets and another company operates under the same name.  Registering a trademark is relatively simple.  On your own, you can file an online application in less than 90 minutes without enlisting a lawyer by registering on the U.S. Patent and Trademark Office’s website: www.uspto.gov.  Before doing so, check the site’s “Trademark Electronic Search System” database to make sure another company hasn’t already registered the same trademark.  Online trademark registration costs between $275 and $325 and requires information such as “the categories of goods and services for which the mark will be used, date of the mark’s first use in commerce and whether there’s a design component to the mark you’re seeking.”

Naming your company can be a daunting task but it can also be a fun experience.  Brainstorm with people.  Try things on for size.  Don’t limit yourself.  Remember although it’s not the best plan, you can always rebrand down the road if your business objectives grow and change.  Don’t get stuck and let naming your business stand in the way of getting started.  Think logically and be creative.  Obviously, your company name says a lot but it’s not everything.  The meat and potatoes are in what you are offering and selling.  It is your business model and service offered that will make or break you in the long run.

We’ve come a long way but we’re not there yet.  In fact, we’ve only just begun so log on next Wednesday as our series continues.

Until next time…

How to secure funding

Now that you’ve written a business plan it’s time to move onto the next step: securing funding for your new venture.  There are many ways to do that and I will talk about most if not all of them today.  However, it is trickier to secure funding for a small business.

“Today, entrepreneurs are much more likely to dive into their own pockets and hunker down for a battle to start up and stay alive. But if you don't have the cash in your wallet, what do you do? Luckily, there are still options for funding new companies, but finding and securing the cash will take careful research, good negotiating skills, and, above all, an unflagging commitment to launching your new business.”

Sometimes getting money to start up your new venture can seem like a daunting task.  You have to calculate your startup costs and then add in the amount of money you need to cover your personal expenses.

Regardless, thousands of individuals do find the money to start up a new business – but how to do it?  Some are less risky but others involve a lot of financial risk.

Sometimes it’s wise to maintain a part-time job where you will still likely have the luxury of benefits to cover your family’s health insurance and a 401K.  You might not want to quit your day job until your business has a steady amount of customers and profits.

It might be wise to start your business based out of a home office for much less money so that you don’t have to pay for office space.  Live frugally.  While you might not want to make it clear to your clients that you are working from home, consider using a virtual office from an office business center where you can get a phone number, have a virtual assistant and mailing address that does not reveal your home address.  “According to the US Small Business Administration, 52% of new businesses are home-based.”  A virtual office is a great option for young companies.  Having such a resource might make you seem more established – investors and clients might take you more seriously.  They are offered at a low cost.  One of the best perks is that you don’t have to change your address should you seek to move into the same office business center down the line with which you are renting your virtual office.  One company out there offering virtual offices which you might want to check out is Emerge212: http://www.emerge212.com/boutique-virtual-space.html.  Emerge212 also offers a “stepping stone” program offered at the low cost of $850 a month all-in.  Here’s what the program entails: You simply share an office with one to three like-minded business professionals.  You receive a dedicated desk, a 212 number (a highly sought after option), 24/7 access, access to all the common spaces and conference rooms and high-speed internet connection.  This is up to a 60% savings when compared to renting a similar Class A-quality office with the same level of services.

If you have good credit, consider using a credit card which is one of the easiest ways to get the money you need to start up a new business.  “Equipment, suppliers, advertising and postage (for mailings) can all be purchased with a credit card.  And if your credit card gives you a line of credit, you can give yourself an instant loan (up to your credit limit).  But using a credit card to start your business bears some significant risk, too.  If you're not careful you can quickly run up a huge credit card bill – a bill you'll be responsible for paying whether your business is successful or not.”

You might want to consider a home equity line of credit.  Some banks offer home equity lines of credit that let you borrow up to as much as 75% of the appraised value of your home.  The downside – you’re putting your home at risk.  If the business fails and you can’t repay the loan, you could lose your home.