How to Work Hard and Stay Poor

If you want to work hard and stay poor, I’ve got a simple proven formula for you. I know it’s proven, because I see countless people using it every day in the business world.

What? You don’t want to work hard and stay poor? I don’t blame you. It doesn’t sound appealing. Yet, so many aspiring entrepreneurs do it. Read more

Hamsters on a Wheel

I’ve got a headache. Why? When I visit webmaster forums I feel like I’m watching a group of hamsters on a wheel. It’s simply amazing. The same questions, the same wrong conclusions, and the same return to the same questions.

Maybe you’re one of those hamsters. I sure hope not. If you are, jump off your little wheel now while you can and come join the party. Read more

What Chess Can Teach Us About Internet Business

I was reading a forum yesterday and, as usual, I was seeing the same mistake over and over. Many webmasters are wondering why they can’t succeed or why they can’t seem to break through a certain income point. The game of Chess holds the answer.

In Chess, there’s a move that experienced players always play on first timers. It’s called Fool’s Mate and boy do I wish it would work more often. Read more

Do you know your ABCs?

Last night was Karaoke night. Yes, I do Karaoke—albeit poorly. It all started when I was dating this Asian girl. Oh wait, that’s not important.

So, there I am doing my Elvis impression while singing the ABC song. I hope you know the one: “ABCDEFG HIJKLMNOP QRSTUV WX and Y and Z.”

I began to think about how many people I saw daily who were struggling to start up an Internet business or struggling to make money.

The thought hit me. They don’t know their ABCs. I participate at a few forums that are loaded with people trying to do business on the Internet. A common issue with many is their lack of basic business knowledge.

Why is this? Are late-night infomercials to blame? I think so, partly. We now have an entire culture that believes all you need to do to make money is turn on your computer. Ah, I can hear the old the old mantra: “Build it and they will come.”

Rather than learning about business principles, people are simply following advice from others who apparently are doing the same—what a vicious cycle. Rather than learning about the why, they just want to know what to do—quickly. Unfortunately, this almost always leads to failure or very limited success.

There’s a dangerous thought out there that Internet business is completely different from doing business in the real world. While the Internet has some differences, the basics of business still apply. And not knowing them equates to failure on some level.

Whether you read some business-oriented books, go to college, attend some seminars or all of them, you need to grasp the basics of business to succeed.

How to set up an LLC and sleep at night

I’m always amazed at the number of business entrepreneurs—maybe even you—who do business online without setting up a company first. If you’re one of these people, you’re just asking for trouble.

Countless people simply turn on their computers one day and start engaging in business transactions. Sure, it’s easy to do, but it’s potentially dangerous.

Back in October, I talked about setting up an Internet business. Today, I will go over the steps to setting up a LLC.

First, let me point out that this information is not meant to be official advice. Consult a professional.

The easiest way to set up your LLC will be to hire a company that specializes in this task. I’m not going to recommend any specific service, but a search in your favorite search engine for “set up LLC” will yield many results.

Typically, a service will charge you their fee plus state fees. For instance, one service I recently looked at charged $139 + state fees for their basic service. State fees vary.

Setting up a Nevada LLC

Okay, let’s go over some basic setup for a Nevada LLC.

Your first step is to visit the Secretary of State Web site for Nevada, which is at sos.state.nv.us.

The URL that has the LLC forms is here:
http://sos.state.nv.us/comm_rec/crforms/llc_index.htm

The forms you will need to fill out are:

1. Limited-Liability Company – Articles of Organization
2. Initial List of Managers or Members

The Articles of Organization costs $75 to file and the Initial List of Managers or Members costs $125. Each year you’ll submit an Annual List of Managers or Members, which costs $125.

So, we’re at $200 initially. You’ll need to either be a RA (Registered Agent) or know one that you can use. A Registered Agent is someone who is located within the state, has a street address, and will accept mail on behalf of your company.

If you setup your company through a service, this should be a service they offer. They may charge a small annual fee, or it may be in your original cost.

The big lesson to learn here is that setting up a company isn’t a one-time cost. Paperwork must be filed, with the appropriate fee, annually. Many services will do this for you and bill you before it’s due.

If you do it yourself, the time it takes to complete the registration with the state depends on the state. If you’re in a hurry, you can pay an expedite fee. For instance, you could speed up your Nevada filing, so it’s completed in one day, two hours or even one hour.

You’ll want to pay extra to get certified copies back. The $60—for two forms—you’ll spend is worth it. These forms will be used at the bank to open a company bank account.

I don’t recommend you do this process yourself if it’s your first time. The little bit of cash you might save won’t matter if something gets messed up.It could end up costing you a lot more.

Most services charge $25 for a Tax ID (EIN – SS4). You can get this for free by going to IRS.gov and filling out the SS-4 form online. It’s really not that complicated. Again, if you have better things to do, the $25 isn’t too bad. Make sure they give you a copy of the form. If nothing else, you can use it as a guide for your second company.

In closing, if you are really confused, check out an LLC book by Nolo Press. They put out good stuff. Their books will help guide you through the process.

It takes money to make money—or does it

You’ve undoubtedly heard the business adage: “It takes money to make money.” Is this true? What does it mean?

Many Internet entrepreneurs—and those aspiring to be one—seem to fall into two camps. There are those that think this business adage means you must spend a lot of money to make money. The other camp believes you can do everything for free.

I’d like to modify this adage to read: “It takes resources to make money.” Now, that’s a cold hard fact.

Whether you spend your time or your money, you’re spending a resource. For some cash is less valuable than time, and for others it’s reversed.

I think many fail to make more money and reach their goals because they have misunderstood this concept.

There’s a large segment in the would-be business population that ends up doing nothing, because they believe that one must possess a lot of money to start making money.

Another segment of that population runs themselves into the ground. This segment believes that time is free and “free” is better than spending money. They either work extra hard for minimal gains or they never get off the ground. Almost all will fizzle out. I’ll go more into this in another article.

Here’s a nugget for you. I’ve been self-employed and doing business on the Internet since 1994. I actually started with mail order marketing before that. When I did my first business venture as an adult, I had about $40 to my name. I was just a young lad. I’m still living off that $40. To this day, I’ve never taken out one loan for business purposes and I’ve never subjected myself to being an employee.

I’m not going to talk about my finances too much, because I believe that’s poor form. There are some key reasons I’m still here and in another article for Internet Business Entrepreneur I’ll go over them.

Remember, it takes resources to make money. Learn what resource mix to use. Don’t fall into the “time is free” camp and you’ll be better off.

Target Your Market Properly Or Die

You know, I talk to many business owners on a weekly basis—everyone from the freelance writer on up the business ladder. I was shocked to learn that most, and this might include you, don’t properly target their market.

Failing to target your market will lead you to either fail or be limited in success. Maybe you think you targeted properly? Let’s find out.

I’m not going to get into a long drawn out marketing session, but what follows will give you a great idea on how to properly target your market for increased business success.

Let’s say that I just opened a lemonade stand—yes it’s the classic business example. How do I target? Well, most business owners I talk to simply open their doors and hope the business comes in. That’s not right.

First, do you think that you and I have the same exact taste and preference for a perfect glass of lemonade? Most likely not. What if you and I were standing in a room of 1,000 people? Would we all like the same things?

For my lemonade stand to be successful, I need figure out my exact target. What will separate my lemonade stand from the others out there?

Example of a poor target: People who need lemonade.

Example of another poor target: Males who need lemonade.

The above two examples won’t get the job done. The second one leans towards males and may be a good start to follow up on, but alone it won’t do.

After much thought, I’ve decided to make the finest lemonade on the planet. I will target real lemonade connoisseurs who have higher incomes and expect and appreciate the finest of details in each facet of the perfect glass of lemonade.

Hence, my lemonade is priced higher than others. Now, let’s stop here. Do you see what targeting has done? I know whom to market to, what makes me special (or helps separate me into a finer group) and where to go with my business.

If Larry Lemonade, a typical guy who’s thirsty, comes up to my lemonade stand and sees my $29 price tag, he’ll choke and go to Discount Lemonade, where it’s only 50 cents. That’s okay though. He’s not my target.

I’m after a person like Thirsten the Third, who’s a successful entrepreneur and must have the finest lemonade there is. He balks at places like Discount Lemonade and has come to know my lemonade business as THE place for fine lemonade.

You can’t be al things to all people. If you don’t figure out what your exact target market is, you’re destined to a life of limitations.

While this article could have continued in more detail, I’ve given you enough to formulate a general idea about your own business.