2021: The Year You Launch

We all know that 2020 was kind of a wash, particularly for aspiring entrepreneurs. The global pandemic coupled with local political unrest meant most of us threw up our hands and decided to wait to start our businesses. Well, your wait may be over. Now’s a great time to get started, but there are a few things you want to do first, outlined here by the Social Media Club St. Louis.

Start With A Plan

You can’t go into business without a plan. While you might think it’s enough to simply know what you want to do, you will have a better chance of capturing investor attention if you have a business plan in place. Be sure to include some of the essentials, including your mission statement, executive summary, breakeven analysis, and timeline.

Your business plan will also include a marketing and competitive analysis, which Brandwatch explains is essentially the process of researching your competitors to know how you stack up against them. This is a crucial component of your business, particularly in the early days. Failure to know what you’re going up against makes it that much more likely that you won’t have the products and services your potential customers want.

Marketing and Social Media

A good marketing strategy has always involved knowing how your product or service will meet one or more needs of consumers and implementing advertising toward the appropriate population. Nowadays this includes social media, a must for any entrepreneur serious about tapping the 4.66 billion internet users and the 4.2 billion social media users. Running a social media campaign isn’t rocket science; you can use programs online like those from Adobe that, for instance, allow you to use a free, editable Instagram post generator to stay active on that platform with minimal time investment.

Get A Grip On Your Cash Flow

One of the first things you need to manage a company’s finances is an accounting program. Look for a software that lets you create custom invoices faster with these batch-processing features: expedient invoice entry, ability to duplicate previous invoice, and invoice duplication for multiple clients. By streamlining the invoicing process, you’ll save man hours, payroll, and frustration.

Outside of your accounting software, it can also help to use a dedicated bank account for business purposes. Most banks have, at minimum, the ability to download and organize your transactions. But, you might also consider a more tech-savvy financial institute that offers more online services, such as team management and virtual bank cards, that help you make the most of your money. Look for a bank that utilizes API (Application Programming Interface) that allows you to integrate with other software and share data with partner companies.

Why Now?

It’s only natural to feel reluctant when stepping out of your comfort zone on the heels of a major crisis. The pandemic was no different. But, there are plenty of reasons that starting your own business now is a good decision. First are the traditional reasons: you’ll be your own boss, you get to be creative, and your commute is up to you. HR services directory and news blog Onrec also points out that working for yourself means having financial freedom -- if you’re willing to put in the work.

Another compelling reason to enter into the startup phase after the pandemic: COVID business closures. While nobody wants to see anyone else fail, the mass exodus of entrepreneurs in 2020 leaves a lot of market space open for those of us brave enough to make 2021 our launch year. Something else here that puts you in a great position is that these businesses have likely or will soon sell off raw materials and equipment. This means you have a great opportunity to buy what you need to get going at much less than retail. Your business will start out with less debt, so you can head straight toward a profit.

There are many, many other moving parts that go into starting a business. But, those above, including writing a business plan and getting an early handle on your finances, will put you in a better position to capitalize on the market that is almost certainly ready to bounce back from the economic crisis brought on by a virus.

Social Media Club St. Louis provides valuable tools and education to help local marketers, storytellers and business leaders amplify their voices in the increasingly crowded digital sphere. Find out more today!

Your Small Business’s Most Important Expense? Your Home Office!

The home office deduction is saving WFH entrepreneurs and small business owners significant money on their taxes. As long as you regularly and exclusively use a part of your home to operate your business, you can qualify for tax write-offs on both direct and indirect expenses.

Direct expenses include things like repairs, painting, and other improvements that are made specifically to your work area. Indirect expenses consist of utilities, mortgage interest, general home improvements, and other costs that deal with your home as a whole.

All this to say that, if you’re wondering whether or not you can update your home office and write off the costs on your taxes, the answer is maybe! Here, the Social Media Club St. Louis explains the process in more detail below, and provides a few ideas for home office updates that can boost comfort and productivity!

Business Structure

One of the first things you want to do with a newer business is to formalize its legal structure. This will impact not only the taxes you pay but also your personal liability protection, among other things. The rules and regulations for forming a business structure change with each state. The easiest way to ensure a quick and compliant process is to work with an online formation service — and you can even write off such services as startup costs.

How Write-Offs Work

Whether you’re a homeowner or a renter, you may be able to qualify for the home office deduction. It applies to single-family residences, apartments, condos, houseboats, and even freestanding structures like garages and studios. There are essentially two requirements you must meet in order to qualify for the home office deduction:

1. You must use the space regularly and exclusively for your business.

2. You must use the space as your principal place of business.

For example, if you’re using your master bedroom as your home office, you’ll find it more difficult to get the deduction. Your home office must be used for conducting business and nothing else. An example of this would be to convert a spare bedroom or basement into your home office. 

Also, you must use your home office for management and administrative tasks, including bookkeeping, billing clients, making appointments, responding to emails, and so on. Your office doesn’t have to be the only place from which you run your business, but it essentially has to be your headquarters.

Ideas for Home Office Updates  

If your home office meets the requirements above, then you can write off a variety of home improvements on your taxes and possibly increase its overall value. For example, are there any repairs necessary for making your home office an adequate workspace? Do you need to throw a fresh coat of vibrant paint on the walls for inspiration? What about the flooring — could you benefit from installing luxury vinyl or hardwood floors?

Another consideration is lighting. Try to maximize natural light by placing your primary workspace near a window, and invest in floor lamps and desk lamps that can boost your focus and productivity. Moreover, think about any equipment you need for running your business effectively. You can write off items like computers, printers, desks, ergonomic chairs, and decor. You can even write off your internet services!

These days, many WFH entrepreneurs are benefitting from the home office deduction. Evaluate your situation to determine what steps you need to take to become eligible. Also, remember to establish a business structure that will best serve your company’s needs. And take some time to plan out your home office so that you can start making the upgrades necessary for it to be the inspiring, motivating, and healthy environment you need it to be!

First-Time Entrepreneur Guide: Tips to Get Started Without Rushing Headfirst

According to research, 64% of small businesses struggle with finances, and over half of all business owners carry some amount of debt. This underlines the importance of starting slow if you've dreamt of being an entrepreneur but aren't sure you want to dedicate your life to it. There is a lot to do before you dive in, and the following tips from Social Media Club St. Louis can help you dip your toes into business ownership.

Put Your Ideas on Paper

How do you know if you have a golden business idea? When starting, it's easy to feel overwhelmed by your own ambition. Knowing that you want to own a business is not always the same as having a clear concept for what to do. Before you burn yourself out trying to find the perfect idea, take a breath and relax. Otherwise, stress may kill your creativity.

Ideas may strike anytime and anywhere. Keep a journal where you can jot down thoughts as they come to you. Not every idea will work out, but a list can help you narrow them down. Sometimes, a golden idea may come from combining multiple concepts. If your business plans are all over the place, categorize them:

●      Entertainment business ideas

●      Transportation business ideas

●      Online business ideas

After you put your ideas on paper, ask friends and family what they think of your list's potential and discuss your most viable options. 

Further Your Education

Before you try to start a business on your own, consider furthering your education. Receiving a Master of Business Administration, for example, can provide you with a broad-spectrum education in economics, accounting, management, entrepreneurship or communications. Going back to school for an MBA prepares you for professional outcomes in the real world, giving you the knowledge and skills necessary to start a business.

Even if you choose not to start your own business, an MBA can open up new career opportunities, promotions and more compensation. Business programs teach you to make sharp decisions and judgments as a businessperson.

Keep It Simple

Once you have an idea you want to explore and the knowledge to pursue it, draft a business plan. Keep it simple at first, at only about one page. Your initial business plan should give you direction, but it does not have to answer every question. Next, study your target market. Who will most likely want to use your products or services? Look to your competitors for guidance.

Figure out how you want to fund your small business. You can finance through your own savings, venture capital from investors, small business loans or crowdfunding. If you don't want to rush into your own company, consider opening a franchise instead.

Never skimp on finances. Account keeping may be one of the less appealing aspects of running a business, but it is the only way to succeed. You should carefully track your income and your receipts. Otherwise, you will be unable to analyze your profits or demonstrate the necessity of financing to investors or banks.

When it comes to becoming an entrepreneur, you never have to rush headfirst into it. Instead, take your time, continue your education and analyze your ideas before you take steps to create a business. As you start to develop your small business, keep your plans simple and flesh them out gradually as you progress.

Want to stay up to date on the latest digital marketing trends that will help your business grow? Check out the Social Media Club St. Louis’s website and events calendar!

Influencing the Influencers: Consumer Marketing Through Instagram

Consumer decision-making is about more than having access to product information. Decision-making is far more transitional and unpredictable than that. That’s why behavioral economics seeks to understand what motivates people to behave the way they do and, more specifically, how to impact deciders, or “levers,” that most directly impact decision outcomes.

One benefit of behavioral economics has been the discovery that consumers are as likely to make decisions intuitively as they are to use reason and logic. It is with that understanding that marketers seek more direct ways to affect the personal triggers and habits that impact shoppers.

In an in-store setting, environmental influencers and the buyer’s individual perspective often dictate how decisions are made. Habit is also a powerful influencer in consumer behavior. Finding ways to affect the consumer’s preferences is just part of the marketing picture; it’s also important to find ways to undermine and replace habits. Many of those habits may be many years old, but it’s insufficient to tout the fact that one product or service is better than another through traditional marketing strategies and tactics.

Instagram Influence

The objective of behavioral economics is to influence decision-making in ways that can be successful among all of the different factors that affect a consumer’s attention. One method of doing this is to meet an audience where they already spend time. That’s why social media marketing has become a valuable marketing tool for business owners.

Instagram is a very popular and effective way to impact consumer behavior, which is done by leveraging Instagram influencers themselves. These are users who have amassed large Instagram followings and have a high level of trust among their followers - Tribe Group points out that 82% of users are likely to follow the recommendation of an influencer.  

This high level of trust and viewership makes influencers very persuasive in terms of impacting consumer behavior. The sheer numbers involved can produce a massive consumer audience through product announcements and offers that make it onto an influencer’s profile. Pod Squad points out the relatively low price to reach thousands of potential customers.

Influencer Value

It’s easy to understand how Instagram and Instagram influencers can be so valuable from a marketing standpoint. An influencer clearly has a follower’s attention. They can also provide the basis upon which product preferences are established and shopping habits are formed and maintained over time. The potential of gaining thousands of motivated and strongly influenced buyers in a matter of minutes is a real coup for a marketer. Therefore, the focus of many marketing tactics is on Instagram.  

This starts with identifying prominent influencers who fit your preferred category. Working with a popular influencer who has a dedicated following and who praises your products can significantly increase your chance of reaching their followers. It’s an amazing way to find customers already interested in what you’re selling without having to fight for their attention.

Establish a partnership with these influencers by providing brief but detailed information about your product and service and a stylized photo collage that conveys the way the product should be communicated. One of the nice things about marketing through Instagram is the ease with which you can track and measure your influencer marketing efforts.

Behavioral economics has shown in detail how unfocused and changeable consumer behavior can be. An outreach campaign featuring Instagram gives you the opportunity to impact consumers when they’re at their most interested and attentive. And in a way, their decision-making can be profoundly influenced.

To stay on top of social media trends and best practices, become a member of Social Media Club St. Louis today!

Slay Your KPI's With These 10 Tips and Tools

Did you miss Social Media Club of St. Louis’ first webinar, Slay Your KPI’s With These Tips and Tools? You can view the entire webinar below led by Board member Katie Stuckenschneider. Otherwise, want some quick takeaways? Check out these 10 tools to help you with your KPI’s.

First. Do you have a strategy? Start by running a digital audit. You can use this template from Hootsuite. Plan your strategy using SMART goals and create personas if you have not already.

1. Content Cal

2. Blog Topic Generator

3. Coschedule Tools

4. Content Idea Generator

5. Wordtune to help you with your tone

6. Quicksprout for analytics

7. Hubspot Website Grader

8. Down for Everyone Or Just Me? (Is a website down?)

9. Giphy account, create Instagram stickers that are searchable

10. Sprout Blog (to help you with your daily professional development).