The “Don’ts” of Starting a New Business for Creators
55% of adults in the United States have, or will start, a business in their life. The most powerful motivating factor behind this surprising statistic is the appeal of financial freedom and the ability to-be your own boss.
Content creators are more motivated than ever to start a successful company. It is both fulfilling and fun for many, but building a sustainable business is a challenge and you need patience. Below are some don’ts to consider:
Don’t ignore the future; plan for it.
Start with a plan. “Too many businesses start without a basic plan, and if you fail to plan, you are essentially planning to fail.” – Deacon Hayes, founder of Well Kept Wallet
What are you doing today to build your company’s value for tomorrow? Are you putting money away for retirement? Do you have an exit plan? These are questions you may need a financial advisor to help you answer. You should realize with certainty that you are a business owner and not only a content creator.
Don’t think that the good (or the bad) times will last forever.
Content creation or influencer marketing is cyclical. Know that things are never as good as they seem, AND know things are never as bad as they seem.
You should never make financial decisions on feelings of success without concrete proof or data. Many business owners overspend during successful times and leave themselves without capital when things inevitably turn bad.
Don’t take on too much debt. Put your extra money into savings and use it to keep the lights on and the contractors employed when your business revenue slows down.
Don’t put all your eggs in one basket.
We recommend this strategy to all of our influencers above all others: Diversify. Diversify. Diversify.
Relying too heavily on a single revenue stream for your livelihood is unpredictable and could be too risky. When you have more than 20% of your total income on one revenue line; you are “putting all your eggs in one basket”. Spread the risk.
Don’t always play it safe.
Make some bets on your business and creativity. It can be like going to Vegas. Get pumped to create a new video, receive a new capital investment, or start a new partnership. Statisticians believe that the best football coaches go for a fourth down play more often than not because the data favors that move.
You can minimize the risk while taking the opportunity to gain experience and grow. However, always be prepared to lose what you bet. “Eat your betting money, but don’t bet your eating money.”
Don’t forget to maintain business records.
Keeping accurate records for your company can be a time-consuming routine. A good rule of thumb when it comes to business records is plan to be audited. It’s much easier to come out successful from an audit event if your tax returns fit certain criteria.
Don’t get burned by working too many hours.
Burnout is real. Running a business takes a lot of time, especially when you’re just starting. Always remember that your business is about enjoyment too. A good business owner makes it a point to take vacations. Relax on Fridays during the summer or take a few days to get to know your community. Many business owners report that they find inspiration about their business while on a vacation
Don’t stop gaining knowledge.
Take time to attend conferences, events, seminars, observe other successful creators, watch webinars, and listen to podcasts to better develop YOU. Talk to other people who can teach you. Do whatever you need to ensure that you are growing as a business owner and as a human being.
Don’t lose sight of why you’re doing this.
Pause and reflect on why you decided to be in business. It will keep you grounded and focused on the goals that you had initially set. Build your future doing what you love! It could also be a chance to do something unique.
Semaphore can help you build a sustainable content creation business today.
Call us at 866-736-2444.