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6 Things to Consider in Your First Year of Owning a Business

6 Things to Consider in Your First Year of Owning a Business


– Do you think an investor
will give me some money? – If you have a well thought
out business plan (laughs) – I will now thanks to this video. – Yeah. – It’s going brutal (laughs) Alright so you got your
business up and running, it’s the first year, now what? What do you do besides, celebrate, celebrate? – Well, after celebrating, you really want to, really
figure out what the foundations are of your business, but before you jump in,
you’re running your business, it gets tough. You have to remember to give
yourself some self-care. – Get your z’s. – Get your z’s, get your zen. You’re probably working,
I don’t know, 40, 50, 60, possibly more hours a week. And you can forget about
you, and you are important. If you get burnt out, then
that business suffers. So Em, what do you do
to get that self-care? Do you sleep for 20 hours a day? What is it? – Okay that’s excessive, but I’m all about the eight hours. Also, eating a well-balanced meal. I’m a big plant-based gal
for all you vegans out there. That keeps me refreshed,
feeling healthy, spry, also making sure to balance
my social life as well. ‘Cause I know, I work remote personally, so I’m at home, it’s easy to get the clocks strike 5:30
and you’re still working, ’cause it’s just like, you’re
in that work mode zone, so you gotta make sure to
really schedule out your days and ensure that you get
exercise in, a social life – Yes, absolutely. Social life is huge. Many of us, solopreneurs who
are just working by ourself or maybe with a small team, we get trapped in our
bubble and then we look up, it’s bedtime, and when we
wake up, and then we work on the business, and we
go to sleep, and it’s just a never-ending cycle. – Yeah, and then you get burned out, and then your business is
also going to experience that which brings me to, I know you
have a lot of info on this, the team that you cultivate as well, ’cause those are like people
you’re gonna be around, day in and day out, fulfilling
your goal and your mission. – Right. Like even if you’re a solopreneur, you still wanna surround
yourself with like-minded people. – That’s why I surround
myself with Nealey. – So many of us, again solopreneurs, we don’t have that team but
there are lots of places where you can find those
like-minded people like Em here. There are meetups you can go
to, they’re absolutely free and you can find people that like the same stuff that you do, or check out maybe a
local coworking space. There’s a ton of people just like you
– And free coffee. – Free coffee, usually
free beer with membership. I may know (laughs). – What’s next? What should I consider doing next in my first year of business? – Yeah so stick to the foundations. The foundations are never any fun, it’s not the fun side
of running a business, but they are so so so very important, and probably the first
thing that you should do, even just starting a business, is to register your
business with your state. Many people do this by filing as an LLC or a sole proprietorship. Probably the most common though is LLC. It helps protect your business
from your personal assets. – Question. Okay, LLC, I’ve seen this, and when my friends were doing their taxes and I would start to brainstorm, okay I see LLC, why are you
LLC versus Inc. versus Co.? How do you decide on that? Does it matter the type of
business you’re running, or the state you’re in, or? – It really depends on the
business that you’re running, and the team that you have behind it. So what I would recommend
is your state will have some information on how
to file your business, and give you some information
on what’s right for you. Should you be an LLC? Should you be a sole
proprietorship or a partnership, or a corporation? What does that look like? – Alright Nealey, so I’m having
flashbacks to my childhood when I wanted to be an entrepreneur, and I’d think about
having a business plan, and that’s when my parents would ask me, “Okay so you wanna own
an amusement park, cool, but what’s your business plan?” And so I’m thinking
about now, as an adult, and the entrepreneurs listening in in their first year of business. Real talk. Business plan, is that something you need to be doing right now, and
how do you go about that? How do you organize that? How much information do you need to know, or can you wing it? – Definitely don’t wing it. There’s a lot of business owners, especially just starting out,
solopreneurs, they’re like “Cool I’m just gonna
start my business and go.” But the business plan
keeps them locked in, helps them really find that
foundation that they’re gonna need to stand on when they start to really grow their business. Now business plans are pretty lengthy and it does take a ton of time to create. There are plenty of sites out there that’ll help you generate those, but we’re gonna go over some
of the different sections of a business plan, hopefully it’ll help you out a little bit. Alright Em, so the first
section of a business plan is the Executive Summary. Now you can really think
of this as the cliff notes for the entire document. It’s gonna give a little bit
about what that business is, the market it serves, and some information so if anyone were to read
this, like potential investors for your business, they know
what they’re gonna get into. – Okay so number two, don’t worry, I got this one Nealey, you wanna have a Business Description. What is your concept? So let’s go back to my amusement park. – Okay, let’s do it. – I think it should be a pizza park, because
– A pizza park? – What else would you wanna
eat and possibly throw up after a roller coaster ride? Pizza of course. – Those tilt-a-whirls are – It’s going brutal, (laughs) but that’s my, that is my concept. – Alright so number three
in your business plan is the Industry Analysis. Now going back to your pizza park, it’s really just an
overview of your industry. Who are the major
competitors in your industry? How do you rank up in that list? And just the market
itself in that industry. Alright Em, so with your competition, can you give us a little insight of who your competitors might be, and how you would stack up against them? – Yeah, so no big surprise
in the amusement park world, a few that are my
competitors would be like a Six Flags or, Disneyland or, what’s one of your favorites? – I think as a kid I used
to go to Busch Gardens a lot in Florida. They had the Sheikra ride,
that 90 degree straight angle, scared the, everything out
of my mom, it was fantastic. – He threw up pizza. So back to my amusement park. What makes me unique is that
it is this pizza-themed park. So not just the best slices of pizza from all different kind of themes, like we have the New York style, the deep dish Chicago style. – What’s your favorite? What style? – This is a little embarrassing, because it’s really boring, but I just like a good cheese pizza, like I am Kevin off of Home Alone, it’s just, I prefer dairy-free. – Chicago style or New York style? – In between the two. – Okay, you heard it here first. – And then also what’s
unique about the park is that everything is pizza-themed,
even the rides. So there’s a bunch of, really bizarre-looking
rides because they’re shaped out of like pepperonis, and
dripping cheese for the slide, but it really sets me
apart from everyone else, and fun fact, all the prizes that you can win too, are also pizza-themed.
– Pizza-themed. Heck yes. I’m here for it. – Cool. Come on down. Get you a deal on your summer. – Come on down to pizza park. (laughs) – Okay so another thing that comes up, here I’m just one person, I’m gonna have an amusement
park to draw in a lot of people, I need a good team, how do you go about organizing that? Who’s gonna do what? What’s the organization
of this pizza park? – Right. And that’s number four. That’s the organization
in your business plan. Who’s gonna run it? Is it just you? Are you going to have a team? Are you gonna have a board of directors, and investors, and all this good stuff? And that’s where you map that all out, so you really have that
plan when you go to start your amusement park, ’cause
I know you’re awesome, you can do a lot, but you can’t be running
from ride to ride to ride stopping and starting it, plus running the business,
– That’s a lot of work. – Plus eating the pizza, I get it. You need people. – Yeah I worked at an
amusement park, fun fact, when I was 16, and it was just enough doing one ride, and you just pull a lever
and then you stop it, but kids are, – It’s riveting.
– they are a mind of their own. Mind of their own. – Alright so number five is
your Financial Projections. Now I’m not saying you’re gonna go with, “I’m gonna make a million dollars,” and that’s it. – What are you talking about? – My projection. Now this is
– That was my plan. – This is what your budget is, how much you’re gonna be spending, what you’re projected to make. Not every business is profitable in their first year of business, that’s more like two,
three, and five years. You really want to have that plan, that projection of what you think with the industry and the competitors and the market and your customers and how much you’re selling tickets for, all in that little projection there. So, do you have projections
on your business? Are you gonna be making a
million dollars that first year? What are we doin’? – Well, maybe we should sit down over some pizza and talk about this, but I just kinda feel really confident about my business model. I’m just thinking put it together, however much money it
costs to put this on, what have you, that’s fine. The customers are just
gonna come rolling in. – If you build it they will come? – Yes, field of dreams right? – Yeah. – Yes I got it, movie trivia point, Emma. So yeah I just hadn’t really thought about the exact numbers. – We’ll go over that. – Okay thanks. Thanks. Alright so with everything
we’ve talked about, now we are at number
six which is, investor, you have a great idea, you have a well thought out plan, now you gotta go and get an investor, get that money. Right? – Absolutely. That’s the whole point.
– Show me the money! – Show me the money, give me the money! But you want to, you’re building this business
plan to get investors, that’s one of the main key points of this, that investors don’t wanna just hand out their money anywhere. Have you seen Shark Tank? They’re not just saying yes to everyone. They have a plan.
– They’re very picky. – Very very picky, and that’s why you have your business plan, it’s well thought out, well written, and that last part, that investor request, or that finance request is really to say, here is exactly what I’m asking for, and then let the negotiation continue. – So with my idea being pizza park, and what we’ve discussed, the themes, the uniqueness, the vibe, the fun, do you think an investor
will give me some money? – If you have a well
thought out business plan. (laughs) – I will now, thanks to this video. – Yeah! – So let’s say good news,
the investor likes my idea, and I did in fact get the
money to pursue my idea. Next thing I’m thinking of is, keeping track of how
much I’m spending, where, how do I look for a return on investment? How do I keep that all organized, because I’m gonna be dishing money out in all sorts of places. What are your recommendations though from your experience, Nealey, with keeping track of ROI? – Yeah especially in your first year you have to keep track
of literally everything. And now what a lot of people
do is they go Gung-ho and crazy and start spending their
money on a bunch of things ’cause they think they
need everything right now. But what I would recommend is go lean, and really focus on your ROI, or your return on investment. Make sure the money
that you’re dishing out to your amusement park, you’re dishing out with your business is actually getting customers back. ‘Cause at the end of the day, if you run out of money, and there’s no more investors, there’s no more business. So focus on that, and you can do that with
some bookkeeping software, like QuickBooks is the
main competitor out there. There’s GoDaddy Bookkeeping, there’s many many other ones as well that’ll help keep track of your income, your expenses, and even
help you with tax time, or tax season rather. – I love that. Help you stay organized. Definitely check out
the resources you have, will make your life a lot easier, and, – So much easier.
– Your bank account happy. – Yeah we gotta keep
the bank account happy. How else are you gonna
buy all of this pizza? – Otherwise you’ll just be, at home sitting on the
couch eating cheap pizza, and that’s depressing. So I imagine with
everything we’ve discussed, and I know this comes up
a lot with social media when I’m educating on best practices, trial and error. Expect it. It’s going to be definitely something that you need to embrace, trial and error. Also just keeping in check
with how your team is doing and make sure they’re
on board with the goals and the success and your struggles, so open communication is key too. But expect to have some trial and error, would you agree? – Absolutely. One of my favorite little
quotes or whatever is, “Failure is feedback.” Failure is not the end of the road, it’s something that you learn to kind of grow and just becomes the
better you or better business. So fail early, fail often,
but always keep learning. – I love that. And if you love this, be sure to like this video. Also, subscribe to the channel, and – Ring that bell. – And comment below on
what you learned to do for your first year of business. – This is The Journey. We’ll see you next time.

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