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How To Not Lose All Of Your Credibility Overnight

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I’d reached the end of an interesting lunch with a brand new friend. We both ordered the kale salad, so I knew it was going to be a good meeting. Why the man showed up, I’ll never know. I say this because his dog was sitting at home with more than forty-eight hours to live.

In fact, his dog could have passed away while he was having lunch with me – thankfully the dog didn’t. Given the extremities of the situation, I was respectful and let my new friend get home to his sick dog and spend the last few hours he had left with him.

This thought alone made be feel sad. It reminded me of what it was like when my own dog passed away. As we walked out of the café my new friend mentioned the name of a business and I said to him, “Oh that’s cool that your friend owns that company, my friend is a shareholder.”

He asked for my friend’s name, and I told him. What then occurred reminded me of the important lesson I’m going to share with you shortly; your credibility can be lost overnight.

What did my friend say that made him lose all of his credibility?

For the next fifteen minutes, we stood in front of the café, and my new friend explained what my other friend had done. He explained that my friend had told all sorts of people from various walks of life, extreme exaggerations.

To ensure I got the point, he pulled out his phone. On his phone, he brought up my friend’s personal website which I had never seen. The website had a description of my friend that made some big claims which I knew to be untrue.

The further we got into the bio, the more ridiculous it became. The bio was written as though the future had already happened. There was a description of a business that sold for a large amount of money in the future.

Everything was written in an oddly strange way, and there was even some highly inappropriate revenue streams that were mentioned in the bio. Even if it was supposed to be a joke (it wasn’t) it managed to close lots of doors for my friend that he probably wasn’t aware of.

While this man is my friend, I knew that from a business point of you he was not someone to be taken seriously. I didn’t hate him for that I just accepted it.

The conversation then went on further and as it turned out, my friend didn’t just talk rubbish on the internet, he did the same in real life. He had asked for lots of money from some very important people and did so in an idiotic way. He even asked for a car space at their office. (This may seem minor, but where I live, no one has a car space at their skyscraper office).

At the end of all of this strange and unusual demonstration of my friend’s shortcomings, I left feeling stupid even though the story wasn’t about me. That’s the power of doing something that can destroy all of your credibility.

Keep these 5 things in mind so that you don’t lose all of your own credibility:

1. It’s okay to dream big just don’t be a d**k about it

Having big dreams is what entrepreneurship and life is all about. My only caution to you is don’t be a d**k about it. There’s a way to position your giant goals and not sound like some drunken idiot who just did a line of coke and thinks their cool.

Outline your goals using your passion and purpose. Then, when you describe your big goals to people listening, they will see the real you and not some ugly moron.

2. Don’t makeup lies

This one’s obvious. If you lie then you will never have any credibility – forget about losing it. Lying makes you appear like a person that is not worth getting to know.

“Lies will destroy your success and cause everyone to lose faith in what your message to the world is”

Tell people how it is, and you’ll be surprised how your real purpose and success are bigger than you think. All of us know when someone is lying so don’t think you’re fooling anyone. Just like my friend, you will suffer the consequences and be locked out from every decent opportunity that has your name written all over it.

3. You won’t know the damage you’ve done

Doing something foolish like my friend and making false claims will cause people to run the opposite direction from where you’re heading. The unfortunate thing is that you will often never know this. When people know that you’re fake like the Instagram models, they disappear without you knowing.

In the story above, my friend caused lots of people to stay away from him, but he doesn’t know this. On the surface, he thinks his massive claims are helping him win. They’re clearly not. It’s hard to confront someone who has overstated themselves and told lies.

99% of people won’t go through the effort. What they will do, though, is become the unsung hero and warn everyone of your BS and lies. You’ll create raving fans in the process; it’s just these fans will do the exact opposite of helping you.

4. People remember drongo’s who talk about themselves too much

We’ve all been to that party where some douchebag keeps telling everyone how incredible they are at everything. Don’t we all wish we could be them (not)? To avoid losing your credibility, don’t make every conversation about you.

Instead, become like Larry King and be fascinated with asking questions and listening to the answer. Forget trying to be memorable if it’s for all the wrong reasons. I’ve found the more you wind back your ego, the bigger the magnet you become for meeting fantastic, sometimes famous, influential game-changers.

The one nightstand that is your ego is not worth the damage it does to your credibility. Don’t be like my friend and learn from his mistakes.

5. Visionary can sometimes sound ridiculous

There’s a fine line between visionary and sounding very stupid. I’m someone that likes to think big and talk about visionary ideas, so I am very susceptible to the fine line between success and failure. Visions can easily sound stupid (like my friends) if you don’t back it up with anything.

If you haven’t thought about how you are going to achieve your vision, and you’re the only one that believes it after five years, something’s wrong buddy. I’m not saying you shouldn’t dream, just make sure that you’ve nailed the building blocks of your dream and can talk about it with some confidence.

We’re all selling something to someone even if we don’t realise it. The more you pitch your vision with honesty and reframe from big claims, the larger the pool of positive raving fans becomes. Our BS radars are at an all-time high, and the internet has forced us to be more transparent than ever. Remember this before you are like my friend and makeup fantasies that can easily be proven wrong.

Have you met anyone that has lost all of their credibility overnight? Let me know on my website timdenning.net or my Facebook.
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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

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why you should set up an LLC

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.

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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

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Hiring tips for tech industry

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…)

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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

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legal tips for entrepreneurs

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…)

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Entrepreneurs

6 Hacks to Boost Your Productivity as a Business Owner

To improve how much you get done each day, it’s smart to establish routines and use careful planning

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productivity for business owners

Entrepreneurs are always looking for ways to get more done with the time and resources they have. Business owners can use clever productivity tricks to break these limits and make the most of their projects. (more…)

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