Entrepreneurs

Entrepreneurial Success Means More Than Making Money

Published

2 years ago

Apr 19, 2022

Bob Schlegel

Image Credit: Unsplash

Growing up in a small Canadian Mennonite farming community, I was surrounded by many uncles, aunts, cousins, and other close-knit family. We focused on faith, family, and work, and our daily lives were filled with service to others. If a storm or fire damaged a barn, the neighbors would come together for a barn raising. No one needed to ask for help. This was just how things were. We knew we could accomplish more when we joined forces and worked together.

This example has guided me throughout my life and taught me that being an entrepreneur isn’t a job, it’s a lifestyle. You have to devote yourself fully to your business, be fully engaged, and do whatever it takes to succeed. The most important thing for me and most of my entrepreneurial friends and family members is creating businesses that benefit our families and employees while positively impacting our local communities and our world.

However, I’ve also known driven entrepreneurs who’ve acquired enormous wealth only to wonder why their expensive cars, wine collections, and palatial homes don’t bring them the joy and peace they thought they deserved. It’s a simple answer: although they’d worked hard and succeeded on many levels, they’d failed in their relationships and souls. They ended up with a mountain of cash but a lonely life.

You may be tempted by grey-area businesses that claim to offer low up-front costs, significant returns, and minimal effort, but before taking the plunge, decide if the risks are worth damaging your reputation and your relationships. Trust your instincts. It probably isn’t worth your while if a business doesn’t feel right to you.

As many entrepreneurs do, I learned the hard way that deals that seem too good to be true usually are. I learned about dealing with unscrupulous characters, and I reaffirmed my resolve not to be that type of business person.

In building our businesses, we strived to develop a strong foundation for our families, to create jobs, and to contribute to economic growth in our communities all while providing goods and services that filled societal needs. They not only became profitable, they also served a greater good.

But how do you build such a business? Here are a few tips for laying a solid foundation in your business ventures:

1. Recruit great team members

Without the expertise and skills of a highly skilled and experienced team, it’s impossible to grow a business into a highly profitable one. When employees are enthusiastic and productive in their jobs, I do everything I can to keep them. I initially hire a headhunter to identify and recruit new team members because they can target people with specific skill sets more efficiently. They generally provide a guarantee to replace people who don’t work out. Recruiting services often charge 20 to 30 percent of the salary of each hire as a fee. Usually, they find people I would never have been able to locate on my own who are very well qualified. The headhunters will help you define the job and its responsibilities, recruit candidates, and conduct interviews to narrow the field down. I recommend attending interviews with the top applicants. I have to remind myself to resist hiring someone I like merely because we have a lot in common. I don’t want a duplicate of myself. An entrepreneur should hire those whose skills and experiences complement and ideally surpass their own.

“You will either step forward into growth or you will step back into safety.” – Abraham Maslow

2. Treat customers and clients like royalty

“Our chain of PeopleCare Heritage Centers and a paving stone manufacturing business have been my two biggest business successes so far. My involvement in both businesses was delightful because we built companies that provided excellent services and goods to appreciative clients and customers. Successful entrepreneurs recognize the value of excellent customer service. Unfortunately, we often become so preoccupied with growing our businesses that we lose sight of how to build and maintain relationships with our customers. Staying disciplined, focused, and personal, you can grow your business, attract new customers, and serve your existing clients. But developing personal relationships with each customer becomes more challenging as your business grows. That’s why it’s important to hire and train people who will follow the values of excellent customer care that you set for your company” – says Dima Suponau, Managing Director at Number for Live Person.

3. Build trusting and mutually supportive relationships

When you consider your employees as team members who follow the company’s values and mission while also pursuing their own goals, you create a bond that elevates your partnership above the transactional workplace. My goal is to create an environment that’s trusting and mutually supportive. To depend on my people, I must make sure that they know that I’ll be there for them. It’s my sincere wish for them to succeed both professionally and personally. Treating people with humility, respect, honesty, and kindness will build trusting and mutually supportive relationships. If you share your gifts unselfishly and focus on serving others as you develop your business, you’ll never regret it.

4. Focus on making a positive impact

Instead of thinking about how much money you can earn or the things you can buy with it, I encourage you to think about the good you can accomplish. While I’m all for building wealth and providing comforts for your family, no one makes it on their own. You don’t want to find yourself alone because you focused on individual success or financial success rather than building mutually supportive and loving relationships. It’s essential to keep gratitude in mind as you embark on your business ventures and entrepreneurial life. With gratitude always in your heart, no problem will seem insurmountable, and even the most minor blessing will lighten your load. You’ll be drawn to opportunities that serve a greater purpose when you have gratitude in your heart as an entrepreneur.

5. Rely on your angels

As an entrepreneur, I’ve had my ups and downs. I’ve made much money with successful businesses throughout my life, and I’ve experienced times when it appeared as though I might lose both my companies and wealth. My family and friends rallied around me during those difficult and frightening times. They were my angels. Similarly, if you wish to be financially and personally successful in business, you’ll need angels by your side. To get through difficult times, you’ll need the love and support of your life partner, family, friends, and those unseen guardians who will show up in the darkest hours and guide you. My advice is to make sure you attract your angels as avidly as you do business partners, great team members, and loyal clients.

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Bob Schlegel

Bob Schlegel and his wife and business partner, Myrna, came from humble roots in a small Ontario, Canada farming community. Together, they launched their first family business, PeopleCare Heritage Centers, that grew to include 15 facilities in both the U.S. and Canada. While Myrna operated the centers, Bob Schlegel and a partner also launched Pavestone Company, which became the nation’s leading supplier of concrete landscaping products. The Schlegels sold both businesses and today are involved in a myriad of new enterprises and philanthropic endeavors. Bob’s new book, Angels and Entrepreneurs: A Lifestyle Formula for Starting Your Own Business and Riding the Rollercoaster of Entrepreneurship (SAVIO Republic, Feb. 22, 2022), shares the lessons learned from navigating the life of an entrepreneur. Learn more at bobschlegelauthor.com.

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Entrepreneurs

How Entrepreneurs Are Harnessing LLCs to Launch Successful Startups

LLCs have unique advantages for starting up and growing a successful business

Published

3 days ago

Apr 14, 2024

Addicted2Success Editor

In my entrepreneurial journey, I’ve learned that LLCs have unique advantages for starting up and growing a successful business. But, before delving into the advantages, it’s essential to grasp the fundamentals of what an LLC is and how it operates.

What is an LLC?

An LLC is a hybrid business entity that combines the liability protection of a corporation with the pass-through taxation of a partnership or sole proprietorship. This unique blend provides entrepreneurs with the best of both worlds: personal asset protection and simplified taxation.

One of the most significant advantages of an LLC is its limited liability feature. This means that as the owner, my personal assets are shielded from any liabilities or debts incurred by the business.

In the event of lawsuits or financial obligations, only the assets of the LLC are at risk, offering me peace of mind and protecting my personal wealth.

Advantages of Forming an LLC

Flexibility in Management and Structure

Another aspect of the LLC that appealed to me was its flexibility in management and structure. Unlike corporations, which have rigid hierarchies and formalities, LLCs allow for a more relaxed approach to governance. As the founder, I have the freedom to structure the company in a way that suits the needs and goals of my startup.

For instance, LLCs can choose to be managed by their members (owners) or appoint a manager to oversee operations. This flexibility enables me to maintain full control of the business or delegate management responsibilities to trusted individuals while retaining ownership.

Additionally, LLCs are not bound by strict meeting requirements or extensive record-keeping obligations, reducing administrative burdens and allowing me to focus on building and growing the business.

Pass-Through Taxation and Financial Efficiency

One of the most attractive features of an LLC, particularly for startups, is its pass-through taxation. Unlike corporations, which are subject to double taxation (taxation at both the corporate and individual levels), LLCs pass profits and losses directly to their members’ personal tax returns.

This tax efficiency not only simplifies the filing process but also allows for greater flexibility in managing cash flow and reinvesting profits back into the business. As an entrepreneur, minimizing tax liabilities and maximizing financial efficiency are critical components of long-term success, and the pass-through taxation feature of an LLC aligns perfectly with these objectives.

Enhanced Credibility and Professionalism

Establishing an LLC can also enhance the credibility and professionalism of a startup. Unlike sole proprietorships or general partnerships, which may be perceived as informal or less legitimate, an LLC provides a formal business structure that instills confidence in customers, investors, and partners.

By operating under the umbrella of an LLC, I can present my startup as a reputable and established entity, which can open doors to opportunities such as securing financing, attracting top talent, and forging strategic partnerships.

This enhanced credibility can be a significant advantage, particularly in competitive industries or when seeking to differentiate my startup in the market.

Protection of Intellectual Property and Brand Assets

For startups built around innovative ideas or unique intellectual property, protecting these assets is paramount. An LLC offers an additional layer of protection for intellectual property and brand assets, safeguarding them from infringement or unauthorized use.

By registering trademarks, copyrights, or patents under the name of the LLC, I can establish legal ownership and enforce my rights more effectively in the event of disputes or infringement claims. This protection not only preserves the value of my intellectual property but also enhances the overall stability and longevity of the startup.

Steps to Form an LLC

Let us now look at the general steps to form an LLC for your business:

Step 1: Choose a Name for Your LLC

Selecting a unique and distinguishable name is the first step in forming an LLC. Ensure that the name you choose complies with the rules set by your state’s LLC division. Typically, the name must end with “Limited Liability Company,” “LLC,” or an abbreviation of these terms.

Additionally, the name should not infringe on the trademarks of existing businesses.

Step 2: Designate a Registered Agent

A registered agent is an individual or entity appointed to receive legal documents, such as lawsuits or subpoenas, on behalf of the LLC. The registered agent must have a physical address within the state where the LLC is formed.

For instance, if you are forming an LLC in Texas, ensure that your registered agent has a physical address in Texas.

This role is crucial for ensuring that the LLC remains compliant with legal requirements and maintains good standing.

Step 3: File Articles of Organization

The Articles of Organization, also known as a Certificate of Formation or Certificate of Organization in some states, is a document that formally establishes the LLC. You’ll need to submit this document to the appropriate state agency, usually the Secretary of State or Division of Corporations.

The articles typically include basic information such as the LLC’s name, address, registered agent details, and the purpose of the business.

Step 4: Create an Operating Agreement

While not always a legal requirement, drafting an operating agreement is highly recommended for LLCs. This document outlines the ownership structure, management roles, voting rights, profit-sharing arrangements, and other important aspects of the LLC’s operations.

Even if you’re the sole owner of the LLC, having an operating agreement in place can help clarify expectations and prevent disputes in the future.

Step 5: Obtain an Employer Identification Number (EIN)

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify your LLC for tax purposes.

Even if your LLC doesn’t have employees, obtaining an EIN is necessary for opening a business bank account, filing taxes, and conducting other financial transactions.

Step 6: Obtain Necessary Permits and Licenses

Depending on the nature of your business and its location, you may need to obtain various permits, licenses, or certifications to operate legally. These requirements can vary widely from one industry and jurisdiction to another. Common examples include business licenses, zoning permits, health permits, and professional licenses.

In my entrepreneurial journey, the decision to establish my startups as LLCs has been instrumental in mitigating risks, optimizing financial performance, and positioning my ventures for long-term success.

By harnessing the advantages of the LLC structure, I’ve been able to navigate the complexities of entrepreneurship with confidence and resilience, laying the groundwork for a bright and prosperous future.

Entrepreneurs

Build a Strong IT Team with These Smart Hiring Tips

Without dedicated IT staff, your company may not be able to function as efficiently or effectively

Published

4 days ago

Apr 13, 2024

Addicted2Success Editor

The role of IT staff in your company is not only essential but also ever-evolving. As your business grows, so does the need for qualified IT staff and more robust recruiting solutions.

After all, from maintaining and troubleshooting the computer systems that keep your business running smoothly, IT staff also help employees stay connected and productive by providing technical support at all times. (more…)

Entrepreneurs

5 Important Legal Tips Every Entrepreneur Should Know

With a firm commitment to legal knowledge, you pave the way to grow your business sustainably

Published

1 week ago

Apr 9, 2024

Addicted2Success Editor

Embarking on the entrepreneurial path is a courageous venture that calls for a diverse skill set to achieve enduring success.

While creativity, drive, and strategic vision are paramount, integrating legal insight into your entrepreneurial toolkit can be a game-changer.

This comprehensive guide delves deeper into the five critical steps that can empower you to navigate the intricate legal landscape and propel your venture toward prosperity. (more…)