Essential Rules for New Business Owners: A Guide to Success

I hope this finds you well on your entrepreneurial journey. As a fellow small business owner, I understand the challenges and excitement that come with starting a new venture. I want to share five crucial rules of thumb that can help guide you through the initial stages of your business.

1. Choosing the Right Legal Structure: LLC vs. Sole Proprietorship

One of the first decisions you'll face is selecting the appropriate legal structure for your business. Understanding the difference between an LLC and a sole proprietorship is vital.

An LLC provides liability protection, separating personal and business assets, while a sole proprietorship is simpler but lacks this protection.

Consult with a professional to determine the best fit for your unique situation.

Neither are any-worse than the other depending on your needs. Having a sole proprietorship is a great start if you are small with little to no sales. You can always register for an LLC in the future.

Check out this article for more info!

2. Effective Financial Management with QuickBooks

Tracking your income and expenses accurately is the backbone of financial success. QuickBooks is a powerful tool that simplifies this process. Set it up early, categorize transactions consistently, and regularly reconcile accounts to gain a clear picture of your financial health.

I love Quickbooks, it tracks your spending in real time and there’s so many options you can use. From income and expenses, bill management, receipt capture, mileage tracking, cash flow, and a lot more.

Plans start at $30 a month; however, if you sign up you can get each plan for 50% off for 3 months!

Learn more about quickbooks

3. Choosing the Right Online Shopping Platform: Etsy vs. Shopify

Since I have experience with both, it only makes sense to discuss them. There are other great platforms which I know are excellent, but let me tell more about Etsy and Shopify.

Etsy is fantastic for handmade and unique items, while Shopify offers more customization and scalability. Consider your product range, target audience, and long-term goals when deciding. Both platforms have their merits, so choose the one that aligns best with your business vision.

Etsy: A Marketplace for Artisans

Pros:

-Built-in Audience: Etsy boasts a vast community of users actively seeking unique, handmade, or vintage items.

-Ease of Use: Setting up a shop on Etsy is relatively straightforward, making it an excellent choice for those new to e-commerce.

-Low Initial Cost: It is free to sign up. Etsy charges a nominal listing fee and takes a 6.5% transaction fee on each sale.

Cons:

-Limited Customization: While Etsy provides some shop customization options, it doesn't offer the same level of control as standalone platforms like Shopify.

-Competition: Due to its popularity, standing out among the competition can be challenging.

Cost:

• Listing Fee: $0.20 per item listed.

• Transaction Fee: 6.5% of the sale price.

• Payment Processing Fee: 3% + $0.25 per transaction.

Here’s 40 FREE listings to get you started on Etsy.

Shopify: Your Custom E-commerce Hub

Pros:

-Full Control: Shopify provides complete control over your online store's design and functionality.

-Scalability: As your business grows, Shopify offers a range of plans to accommodate increased traffic and sales.

-Diverse Apps: A robust app ecosystem allows you to add features and integrate with third-party tools.

Cons:

-Monthly Cost: Shopify plans come with a monthly fee, and transaction fees are applicable unless using Shopify Payments.

-Learning Curve: The level of customization can be overwhelming for beginners. However, there are plenty of Youtube tutorials and experts who can help.

Cost:

• Basic Shopify: $39 per month + 2.9% + $0.30 per transaction.

• Shopify: $105 per month + 2.6% + $0.30 per transaction.

• Advanced Shopify: $399 per month + 2.4% + $0.30 per transaction.

You can get started with a 3-day free trial and then enjoy your first month for only $1!

4. Finding Reliable Suppliers

Building strong relationships with suppliers is essential for a smooth and sustainable supply chain. Research and vet potential suppliers thoroughly. Look for reliability, quality, and consistency. Negotiate favorable terms, but remember, a good supplier is an investment in your business's success.

Depending on what products you sell finding suppliers can be tricky. However, a simple google search like “t-shirt supplier wholesale” “sticker making companies” “custom enamel pins wholesale” or “bulk glass cups” will get you solid search results.

I use Alibaba.com for a good amount of my products for my shop. You can read a blog post I created for it here. I can go more in-depth on Alibaba.com so leave a comment saying “Alibaba” and I will create a post for it.

5. Strategic Social Media Promotion

Social media is a powerful marketing tool. Identify the platform where your target audience is most active and create a robust strategy. Whether it's Instagram, TikTok, or another platform, engage with your audience consistently. Share compelling content, run promotions, and leverage the platform's advertising features to maximize your reach.

I would not be here without social media (and God), honest truth. I managed to scale my following to reach thousands of people that has paid off. I get to sell thousands of products worldwide and work with brands on lucrative brand deals. I am so honored to do this full-time.

So, don’t think it is too late to start posting online. If you want more social media help, I created a business for it. Hello Social by Jas or @hellosocialbyjas on socials. If you want to learn about my social media tips and get access to paid resources I highly recommend you check it out.

I scaled a new account in June 2023 to over 16k followers!

You can go to www.hellosocialbyjas.com to learn more.

Remember, success in entrepreneurship is a journey, not a destination. By adhering to these rules of thumb, you'll be better equipped to navigate the challenges and celebrate the victories that come with building your business.

Wishing you every success on your entrepreneurial adventure!

-Jasmine

P.S. Thank you for being here. I can’t wait to grow this community and keep sharing. There is so much more to come and you are in the right spot. I can’t wait to see God grow your business!

As always, you can refer to this post on our Hustle Hub website.

Next Week’s Topic: The Best Apps and Tech Tools for running a Small Business