Starting a business in a tough economy is hard, but a great captain does not set sail on a rocky sea without a carefully plotted course. Start plotting your course by setting up a goal chart, listing a timeline of when you want to obtain the goals. Leave a page or two after each goal to list the strategies you used to obtain the goals. Once you obtain a goal, check it off the list, but be sure to keep the strategy list so you will know what worked.

The chart will enable you to visualize your goals as well as see those goals that have not yet been obtained. The ones that haven’t been obtained can then be re-looked at to see what your strategy was, the parts that worked and those that didn’t and then reset your strategy to ensure you achieve those goals as well. 

If you haven’t already done so, you need to come up with a business name, something that pertains to who you are and what you represent, or something special in your heart. This is known as “branding.” It’s what will catch people’s eye. The honest truth is that your image and your name sell you as much if not more than your music will, at least initially. 

If your prospective audience can’t get past your image and your name doesn’t strike a chord, they will never get to your music because a CD does not start playing until it’s in a player. I was lucky enough to be branded by the media. One was, “The Rae of Hope TM” (obviously because of my second name) and the other is “Racy Jaci.” Lest anyone take that one out of context, it was because I am seen as quick-witted with a wicked sense of humor. So now, when people who are even slightly familiar with me hear any of those phrases, I instantly pop into their head.

Next, create a logo. If you are not creative in the field of design, try to get a friend who is an artist to create a logo for you for the price of a dinner. Otherwise, you will have to hire a graphic artist, and that can be expensive. You can go to your local college and check out the art department. Talk to the head of the department to find out who he recommends. 

A very important step on the business side is to file for a seller’s permit (and in some communities, if you are setting up a business in your home, you will need to file a home business license in order to avoid some stiff fines and penalties. Check with your local chamber of commerce to find out what applies to you. For a seller’s permit, you will need to go to your local government office and ask what the requirements are. Ït’s usually a $10-$30 fee to file it and there is a lot less paperwork you need to figure out.

Some cities may require you to file a “Fictitious Business License” in your local newspaper and run the ad for six weeks. Your local government office may be able to provide a list of newspapers, and give you an idea of how much the newspapers charge for this service. They will also be able to tell you if there is anything additional you need to do or provide.

Once you start making a lot of money, you might want to consider becoming incorporated. If you want to go through all the hassle of trying to get the forms, fill them out correctly, and research all the legal jargon yourself, you will save money for attorney fees. My advice is, suck it up and pay the legal fees. Find someone who specializes in this field to incorporate you. This will help insure that there are few or no mistakes. You don’t want to put your company at risk.

If you decide to become incorporated and use a lawyer, the fees can range from $90.00-$500.00 per hour, so choose wisely. The total cost for us to incorporate was $900, but that was three years ago.

Get recommendations from others who have done this, or go to your local Chamber of Commerce and ask for recommendations. Before you go to a lawyer, you will need to research the business name you have chosen to see if it has already been taken.

To do this, find your local library and ask them if they have databases that allow you to search business names that are already in use. They should be able to guide you through the research process. It takes about 10 minutes, and there are five databases that I know of that search the U.S. and Canada for fictitious business names, Dunn and Bradstreet being one of these searchable databases.

Another option to become incorporate is to file on the internet.  I recently did this with my latest company.  Check out this websites to help you:

http://www.incorporatetime.com/Fee.htm

Being incorporated has its advantages and disadvantages. That’s why you may only want to become incorporated once you are making a substantial income, or if you have legal reasons to do so.

Being incorporated insures that the name of your company is yours, and no one else has the legal right to use it in your state. However, incorporating will also cost you additional tax money. But there are tax shelter advantages to becoming incorporated as well. You will need to consult a good accountant who can best advise you of what would be beneficial for you as well as the ramifications of your final decision.

If you are going to incorporate, your lawyer should be able to advise you as to which kind of corporation would be best for you if you decide to go this route. Make sure you ask him/her about an “S” corporation or an L.L.C. If he/she thinks an “S” corporation or an L.L.C. would be beneficial for you, you will have to go to an accountant who specializes in entertainment taxes. If you are wondering what the difference between a corporation, an “S” corp or an L.L.C. are, you can research that on the web. Unless you are a huge company, I would not suggest going the incorporated route, I think an “S” corp or an L.L.C. are the best option for a small company. Here are the differences between an “S” corp and an L.L.C.

This is a general explanation. To get a more detailed explanation please check the Internet, your local Library, the IRS or the BBB. 

An “S” corporation grants a special tax label, which must be applied for and granted by the IRS (an EIN number is part of the process). This allows the income of an “S” corp. to be taxed differently.

In a corporation, money is double taxed.  It’s taxed when it comes in the door and then again when it’s paid as income. An “S” corporation avoids double taxation, meaning that the money is only taxed one time and it allows certain deductions to be passed through the “S” corporation and onto the individual tax returns of the owners. 

An L.L.C. (limited liability corporation) provides protection from personal liability. Additionally, an LLC provides certain tax benefits, pretty much the same as an “S” corp.  However, with an L.L.C., you can have as many “members” (owners) as you want.

It is very important to use attorneys and accountants who specialize in entertainment and tax law. You don’t want to pay an attorney or an accountant to go through school to learn the laws pertaining to your field before they even touch your files unless you can afford it. (But even if you can afford to pay for their schooling, do you really want to?)

A disadvantage of being incorporated is that you WILL need an accountant (unless you are a whiz at tax laws – and a bit of advice, a good accountant can get money back from the government for you even if you haven’t paid a single dime in taxes that year. How? Well, I am not an accountant, but I recently saw that happen with a friend and I thought their accountant was shifty. So for their protection, I went to a friend of mine who is a CPA who does corporate taxes and he said it is a fact. I am going to my friend’s accountant next year! ). 

Why will you need an accountant? Because there are different forms you must fill out on a quarterly basis. If you do become incorporated, you can no longer have your business finances and your personal finances in one account. You will need a separate business checking and savings account.

Additionally, you can no longer take deductions for your business against your personal taxes. Those deductions will now be put only against any business income the company has. Any money that comes in for your business is the businesses, not yours. Anything withdrawn other than salary (which is preset) must be documented and of course must be legitimate. The good part is that the company can own everything and then you are at a real tax advantage. For the details of how to do that, you Will need a great tax attorney or accountant who can wade you through those waters.

If insuring that your name is not used by anyone else is your main motivation, incorporating may not be the best thing for you. The same result can be achieved by trade marking your name, which currently costs $350.00 if you file it yourself. (The least expensive lawyer I found when researching this part for the book, was $500.00 to file the trademark application for someone.) Back to what you must do once you set up a business. Expenses for the company paid for out of your pocket must be put in an itemized expense report, and backed by receipts (save those receipts, even for small $1.00 items!), in order for you to get reimbursed.

If you are not incorporated, it would still be advisable to open a separate business checking and savings account. It’s more professional. Try to find a credit union that accepts business accounts. They are much much cheaper. A business account from a regular chain bank will cost you so much per month, usually $10.00-20.00, plus so much per check and so much more per check after you’ve written x-amount of checks.

There are many credit unions that charge one flat fee and that’s it. The least expensive I have seen is $4.00 per month with no per-check fees or hidden costs. Additionally, credit unions typically have higher interest rates for both checking and savings accounts, not to mention that credit unions generally use their money to help the community, so you would be a philanthropist to boot! At any rate, get the most from your money while it sits in the bank.

As far as accounting goes, you need to document everything so your accountant can write it off your corporate taxes at the end of the year, or quarterly if you must file that way. Save those receipts! Take care to chart the mileage on your car. Document the day, time, and mileage start/end, where you went, and why. This is often an overlooked deduction that can be quite substantial.

Log every give away, and how much each give away cost you (wholesale, not retail), postage, meals that have to do with business, office supplies, travel expenses, clothes (deductible only if you only use them for business), fees for weight loss is now a legal deduction, phone calls, etc. It is best to get a separate phone line for your business. It will be clear-cut for accounting purposes, but also the IRS will like it better.

Tell the phone company you want an extra regular line, or they will charge you up the wazoo for a business line. It’s better to over-document than to under-document. Your accountant can not write off what is not documented. A good accountant who is familiar with entertainment taxes will be able to easily ascertain which of your expenses are deductible and which are not. At the end of the year, they will tell you, if you ask, what you should continue to document. The rest you will have to learn in business courses, by word of mouth, and through experience.

When setting up your business you will need a little bit of cash to get started. Here are a few of the items you will need in order to set up your home office.

Printer
Computer
Desk
Chair
Paper
Pens
Stapler
Calculator (optional as most computers have one inside their operating system.)
Staples
White out
Scissors
Telephone
Internet Access
Applicable Software and Word Processing Programs
Fax or faxing software
Accounting Software
Envelopes

Additional Resources

SCORE is a team of successful business owners, both past and present, who volunteer their time to help others succeed in business. Their services are free, you only need to make an appointment. http://www.score.org/

If you know someone who needs help or you are someone who needs help, there is assistance waiting for you.  Emergency food, clothing, blankets and household items and in some cases, small cash advances are available through the following helpful services.

Please do not take advantage of these organizations. If you are someone who can help, by volunteering your time if you don’t have extra money or goods to donate, please do so.

• Freecycle.com

To find a chapter near you: http://www.freecycle.com

• American Red Cross

To find a chapter near you: http://www.redcross.org/where/chapts.asp

• GreaterGood

To find a chapter near you: http://www.greatergood.org 

• Salvation Army

To find a chapter near you:  http://www.salvationarmyusa.org/ 

• The ONE Campaign Phone 202-552-4990

To find a chapter near you:  http://www.one.org/

• MercyCorps Phone 888-256-1900

To find a chapter near you:  http://www.mercycorps.org/contact.php

• Society of St. Vincent DePaul

To find a chapter near you: http://svdpusa.org/AbouttheSociety/NationalCouncilLocator/tabid/70/Default.aspx

• Food for Free Phone  617-868-2900

To find a chapter near you:  http://www.foodforfree.org/

• America’s Second Harvest Phone 800-771-2303

To find a chapter near you:  http://www.secondharvest.org/zip_code.jsp

• Gifts of Love Phone 860-676-2323
• Craigslist http://www.craigslist.com

Check for additional resources such as Resource Service Center’s, Food pantries, local churches, Thrift Shops, and the YMCA in your area by typing the keywords into Google. To find additional free goods, type keyphrases such as, “free household goods,” “free food,” etc.

a.     Those who truly love you but are afraid you might fail.

b.     Those who have hidden agendas and are afraid you will succeed.

Experienced business professionals, who have conquered the path you wish to take and have succeeded in their dreams, are the people you should listen too.

2.     Trusting your instincts is good, but it will only get you so far. Mind power, business acumen and marketing will help you ride out the rest of the journey (especially in these hard hit economic times).  Seek out experts in your field by making an appointment with your local chapter of S.C.O.R.E. They call themselves the “Counselors to the American Small Business” and they really are.  This mentorship program is free.  The mentors from S.C.O.R.E. are professional business people who have retired and their passion is to help other small-business people succeed.  To find a chapter near you go to, http://www.score.org.

3.     If your heart believes in it, let your body and mind follow your dream.  The hardest step most entrepreneurs take is to follow their dream. While it is important to practical, you have to dare a bit to be able to dream. Step outside of the box society has put you into, and dare to do, not just dream.

4.     Pay attention to the bottom line. Learn how accounting works. If you don’t know how to bill and collect the funds owed to you, keep track of your receipts, or have a fundamental knowledge about accounting procedures, find a qualified accounting firm.  It is of the utmost importance that you keep accurate and detailed records of all transactions (sales and purchases).  If you have time, and the extra money, take a few accounting and business courses at your local community college to further your knowledge of how to run your business. If you can do it yourself, you will be able to save money and keep afloat during hard economic times.

5.     Measure your success not just in sales, but also in the reaction from the customers who utilize your services or purchase your products.  Too many companies have forgotten about customer support.  Customer support is the key to your ultimate success.  When the customers are happy they talk about your product and services.  When a customer is unhappy, they really talk about your product and services. Bad news tends to travel faster than good deeds done.

6.     Market your product or services in unique ways.  In an ocean of marketing campaigns how can you become the drop of water that gets attention?  The Internet is an obvious marketing tool, but what about unsolicited spam snail mail? Use the pre-paid return envelopes received in junk snail mail, to enclose a note about your product or services. Another example is to offer your product or services in under utilized outlets. For example, I have a book titled 5 meals for $5. We contacted local grocery stores and it turned out to be a perfect fit.

7.     Stage product giveaways. Create a sample of your product or services to giveaway. Contact radio and television stations and local charity events to find out if you can donate your product or service. If the answer is yes, list these events on your website to provide advertising to them (make sure to tell them you will be doing this. It’s an added bonus for them).

8.     It’s all about the hook when you reel them in. A hook is a clever phrase that will make people curious.  You don’t want to over use hooks, but a funny hook is worth its weight in reading.  An example of a hook we used for a free money-saving seminar I gave is “Cash Crunch Got You Crying?” This hook hit people right where they were feeling it most, their pocket books. According to the store manager, we sold more books than at any other author event they had hosted!

9.     Have patience and perseverance. Most “overnight successes” have actually been working hard for years. “Overnight” just means it’s the first time you’ve heard of them.

10.   Create a map in your mind as well as on paper about your future goals. Much has been said about what I call Mind Mapping.  Most people write this step off as fairy tales and hokum (this is not the same as the “name it and claim it” theory). However, there is a lot of truth to the reality of Mind Mapping.  How does it work?  By making a Mind Map, you are practicing your future steps and how they will play out.  Let me use the Olympic record holder Michael Phelps as an example.  To get to the Olympics he spent years training his body and his mind.  Much of his success is a result of his mental training as well as his physical training. He didn’t just jump into the pool and land at the Olympics.  Lay out your plans for your future and practice how you will handle each hurdle in each step so that you will come prepared for success.

Children ages are 0 – 18 are eligible for free meals. Adults in many states are given a huge discount some lower than $2.50 per meal and still other states provide free meals for the mentally or physically disabled communities.

The following states have specific programs, however you can find out more information at the USDA website http://www.fns.usda.gov/cnd/ or http://www.fns.usda.gov/cnd/Summer/Default.htm. The USDA free meal program is called the Summer Food Service Program.

(National) The Society of St. Vincent de Paul has local programs in many communities that service families with meals. Check their website for free meal times and locations.

(California) California Department of Education’s Summer Food Program. This program feeds not only the children, but the mentally or physically disabled community. Please check with the local state government website for additional information.

(Florida) Free meals are offered at most elementary school in every county in Florida. Check your local elementary school for times and locations.

(Georgia) The Seamless Summer Option Program, funded by the United States Department of Agriculture For more information on times and locations, please check the USDA website.

(Illinois) Free Meals for Children and Youth Summer Nutrition Program. For information on where and when the free meals are being served, please go to their website: cityofchicago.org/fss under the Chicago Family Services section.

(Indiana) Free Meals for Kids summer program in Bedford, Indiana. Their website has listings of times and dates free meals are available. Adults may purchase meals if they are over 18. http://www.bedfordonline.com/content/view/838/52/

(Oregon) Free Summer Food. Check their website summerfoodoregon.org for free meal times and locations or call their toll free number 800-723-3638.

(New York) Free Summer Meals for Kids. Their website has a complete listing of places and times that free meals are served: http://www.opt-osfns.org/osfns/resources/sch_search/SummerMeals.aspx

(Utah) Summer Free Food Service Program. Kids 0 – 18 can eat for free and a greatly reduced price of $2.50 per meal is for any adult. What a great deal! For more information go too: http://schools.utah.gov/cnp/Files/2009SFSPSites.pdf or call 800-453-3663 for free meal locations and times.

(Virginia) Free Meals put on by NPS Child Nutrition Department. Free meals for children and adults may eat for a discounted price of $3.25 a meal. Please contact Norman Public Schools Child Nutrition Department for additional information.

(Wisconsin) The Hunger Task Force. Please call (866) 211-3380 for locations that free meals are being served as well as times for free breakfast, lunch and snacks.

This is just a sample of states and programs. Please check your area for similar programs.

The U.S. Bureau of Economic Analysis has reported that personal savings rates are at the lowest levels since the Great Depression and disposable incomes seem to have become a thing of the past.

If that weren’t enough, many American’s are being forced to live off accumulated debt, resorting to the use of credit cards to meet their basic living needs.

If your credit card and personal debt has become larger than your monthly mortgage or rent payment, it’s time to take stock in the bottom line.

What can you do to safeguard yourself and your family from recession and keep the collection dogs at bay? By following a few simple steps, you can help increase your savings, help decrease your debt load and help decrease your overall stress.

1. Take stock in yourself. How can you do that? Look at your bottom line. Take a piece of paper out (forgo the computer for now) and draw a line down the middle (this is a rough form of a general ledger). Write “Expenditures” on top of the left column and write “Income” on the top of the right side column.Now it’s time to take stock of all of your money and I mean every single penny that goes out of your wallet and bank account or onto your credit cards even if it’s for a candy bar.In order to do this, you will need to save all receipts, big or small for an entire month. Then tally up the receipts by categories, e.g. food, gas, fun, etc. Put the category tallies on to the left side of the sheet of paper.

   In addition to accounting for money that is going out, you also need to account for every penny that comes into your bank account or wallet.

   On the right side of the sheet of paper put every penny that came into your pocket, bank account or was thrown on the counter in the form of change for that month. To make sure you have an exact total, try to keep track of your expenses and income weekly.

   After one month, you will have a basic idea of where your money goes and you will have a better look at the bigger picture. Add up the two columns separately. If the left side of the paper (expenditures) equals more than 90% of the right side of the paper (income), your bottom line is dropping at an exponential rate. If you are saving at least 10% of your income, pay off your debt and bank the rest. If you aren’t, you need to make small changes. Small change can equal to $$ literally!

2. Now that you have the general scope of exactly what comes in and goes out of your bank account concerning your money, you can begin to make small changes. You need to ask yourself:
   • How much money do you spend on items that are unnecessary? (You will find that information on the expenditure side of your general ledger.)
   • What can you cut back on to help raise your bottom line and increase the value of your personal stock?
   • What can you cut out entirely to help pay off outstanding debt and start banking those pennies, nickels and dimes? (Remember, small change = $$.)

   Here are a few ideas to help you begin to shave off spending and begin paying off your debt and banking the rest of your money:

   • Drink coffee from your own brewery and not at your favorite java house. If you miss the social time you had at your favorite coffee joint, why not start your own coffee club? Have each person hosts the coffee club at their residence on different days. Everyone must bring his or her own cup of java and any snacks; this is just social time, not a time when everyone pays for everyone else.

   The savings from avoiding the extra coffee fees when you buy at your favorite coffee hut? $2.95 x 3 days x 52 weeks = $460.20. If you are a java hut addict and you purchase your coffee at a coffee shop 5 days a week, your savings will be $767.00. Think about what you could do with $767.00!

3. Stop entertaining yourself with expensive items such as $10 movie tickets and $20 fees into your favorite dance jive and cut the extra cable or satellite fees out. Those extra expenditures add up to quite a bit of money in the end. Going to just one movie a month for two people adds up to $20 x 12 = $240. Going out dancing once a month adds up too $40 x 12 = $480. Satellite TV adds up too $19.95 x 12 = $239.76. Add all of these expenditures together and the savings is $959.76!Instead, create your own movie night and have friends and family over. Utilize the movies that everyone already has. You will be amazed to find out how many current movies people have stashed away on DVD that you have never seen. Alternatively, join your local library and utilize their free DVD check out system. Most libraries have the most current DVD’s on file and you can check them out for seven days without any cost out of your pocket!Make your own dancing disco in your own residence. You can also check out your favorite music without cost at the library! Invite friends and family over (everyone brings their own beverage and snack) and have fun!

   These are just a few ides to help you cut out extra spending, decrease your debt load and increase your savings account.

Don’t pay for gas, get your gas free. If that statement sounds too good to be true, it’s not. The cost of gas has reached astronomical proportions in the US. The never before seen gas prices may seem small when compared to our friends overseas, who regularly pay $9 at the pump a gallon and more, but in America, the high cost of gas is hurting our economy.

While our European counterparts have historically paid higher prices for gas at the pump, Americans do not have the same luxury of easy mass transit systems as our European counterparts and in American, we must travel great distances to get back and forth to work.

How can you keep up with the high cost of gas, lower wages and higher cost of living? By using a few simple strategies and little used methods to actually obtain your gas for free.

How can you obtain free gas? The following are a few examples.

Become a Mystery Shopper. As a mystery shopper, you will act as a regular customer and report your findings back to the company that hires you. As a customer service specialist / mystery shopper, you may receive 2 – 3 gallons of gas free in addition to a set shop rate. (Sometimes a full tank of gas for one shop, depending on what type of shop and which company has hired you.)

*A small warning, never pay any company to sign you up as a mystery shopper. Legitimate companies pay you to do this work.

If filling out a report is not your style, there are other ways you can save money on gas. Many groceries stores around the country (and indeed around the world) have gas rewards cards or gas rewards programs.

These programs merely ask that you sign up for the customer loyalty program, which is free, and you simply use your card every time you make a purchase and that money is then put towards a gas reward you can utilize at a later date.

Every store will have different rules and not all stores participate. Even if your store does not currently participate in a gas rewards program, sign up for the loyal customer card anyway. You will reap rewards and savings on other items and you never know when they might implement a gas rewards program.

Another great way to receive gas for free, or in this case be paid to drive your car, is to check out a program run by http://freegashelp.com/. Freegashelp.com rewards qualified drivers with cold hard cash in exchange for driving your car where you normally do. They do not assign you a route, you simply drive your car back and forth to work, to school and on your regular errand and they pay you to use your car as an advertising tool. Check it out!

These simple ideas can save you a lot of money on gas and if you combine these methods, you may not have to pay much at all for gas at the end of the year!

According to a Nielsen Ratings report, in 2007, the average American spent 19 percent of their income on gas for their cars. According to the tables of the US Department of Labor; the average wage in America was $41,394 per year. 19 percent of $41,394 is $7,967.46. What can you do with that extra money?

The money you save on gas by utilizing these programs can be used to help pay off your debt, make a mortgage or rent payment, or saved for a fun vacation! Think about how you would use the extra money you can save on gas and then get back to me. I look forward to hearing from you!