Starting a Business
Everything you need to know to start your first business. From choosing business partners and filing initial paperwork, to building out teams and raising venture capital, this step-by-step course will help you navigate the early stages of your startup and teach you how to avoid common mistakes entrepreneurs make.
This course includes written and video content. Both are important and provide unique perspectives.
Note: It’s recommended (but not required) to complete course content on a computer, instead of mobile.
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Intro
Starting a business is one of, if not the most difficult way to go about making money. It’s also the only job you can have that has no intrinsic vertical ceiling.
Starting a business is one of, if not the most difficult way to go about making money. It’s also the only job you can have that has no intrinsic vertical ceiling.
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Passion
Arguably the most important thing to consider when starting your first or a new business is passion.
Arguably the most important thing to consider when starting your first or a new business is passion.
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Auditing a New Idea
When looking to start a new business or comparing possible ideas, there’s a couple of questions you should ask yourself in regard to the market you’re looking to enter:
When looking to start a new business or comparing possible ideas, there’s a couple of questions you should ask yourself in regard to the market you’re looking to enter:
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Product vs. Service Model
Most businesses can be split into two main categories: product based and service based.
Most businesses can be split into two main categories: product based and service based.
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Business Partners: Yay or Nay?
Business partners can be an incredibly powerful tool for helping get your startup off the ground, depending on what exactly they are bringing to the table.
Business partners can be an incredibly powerful tool for helping get your startup off the ground, depending on what exactly they are bringing to the table.
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Good Business Partners Aren't Friends
The best business partner is somebody who likely wouldn’t be your friend outside of business.
The best business partner is somebody who likely wouldn’t be your friend outside of business.
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Different Roles & Controlling Interest
Once you and your business partner get started building your business, it’s important not to step on each other’s toes.
Once you and your business partner get started building your business, it’s important not to step on each other’s toes.
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Know Your Partners
Always know your partners, establish clear boundaries, and make sure to have a rock solid operating agreement.
Always know your partners, establish clear boundaries, and make sure to have a rock solid operating agreement.
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Intro to Entities
When creating a business, there’s a handful of different entity structures you can use to organize your company.
When creating a business, there’s a handful of different entity structures you can use to organize your company.
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An LLC is the simplest and most common business entity type in the United States.
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LLC's for Freelancers
Having an LLC is literally always a good idea, even if you’re a freelancer, or have some type of passive income stream.
Having an LLC is literally always a good idea, even if you’re a freelancer, or have some type of passive income stream.
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An S Corp is a type of tax designation for an LLC, that may have some tax advantages.
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Partnerships
Limited Liability Partnerships (LLP’s) are another option when it comes to business formation, and are typically used for professional services.
Limited Liability Partnerships (LLP’s) are another option when it comes to business formation, and are typically used for professional services.
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Filing in Delaware?
You may have heard of companies filing their entities in Delaware due to the taxes or friendliness to business law.
You may have heard of companies filing their entities in Delaware due to the taxes or friendliness to business law.
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State LLC Fees
It’s important to keep in mind your state’s LLC filing and maintenance fees, which can vary wildly from state to state.
It’s important to keep in mind your state’s LLC filing and maintenance fees, which can vary wildly from state to state.
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Starting a new company can be a lot easier than you might think.
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Member vs. Manager Managed
LLC’s can choose between two management structures: Member Managed or Manager Managed.
LLC’s can choose between two management structures: Member Managed or Manager Managed.
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EIN's
The next piece of identifying paperwork you’ll need to obtain is an Employer Identification Number (EIN).
The next piece of identifying paperwork you’ll need to obtain is an Employer Identification Number (EIN).
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Operating Agreements
An operating agreement outlines roles, powers, and responsibilities of business partners, as well as serves as the template for governing disputes and transfers of ownership.
An operating agreement outlines roles, powers, and responsibilities of business partners, as well as serves as the template for governing disputes and transfers of ownership.
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Business Bank Account
Once you have your Articles of Organization, EIN, and Operating Agreement, you have everything you need to get your business bank account created.
Once you have your Articles of Organization, EIN, and Operating Agreement, you have everything you need to get your business bank account created.
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Domain & Emails
After you get your business bank account sorted, you’re going to want to get a domain name and company emails (name@company.com).
After you get your business bank account sorted, you’re going to want to get a domain name and company emails (name@company.com).
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Separate Revenue Streams
We’ve mentioned how important it is to keep your business and personal finances separate. One of the major reasons for this is that business expenses are tax deductible (personal finances are not).
We’ve mentioned how important it is to keep your business and personal finances separate. One of the major reasons for this is that business expenses are tax deductible (personal finances are not).
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Intro to Quickbooks
These days keeping track of your business expenses is easier than ever. My favorite accounting software to use is Quickbooks Online.
These days keeping track of your business expenses is easier than ever. My favorite accounting software to use is Quickbooks Online.
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Capital Accounts
Capital accounts are an easy way to keep track of how much money the business owners invest or receive from the business.
Capital accounts are an easy way to keep track of how much money the business owners invest or receive from the business.
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Intro
I’d like to preface by saying I could do an entire course on capital raising, and I might if there’s enough interest, but for the purpose of this course we’re going to keep a high level perspective.
I’d like to preface by saying I could do an entire course on capital raising, and I might if there’s enough interest, but for the purpose of this course we’re going to keep a high level perspective.
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What Stage Are You?
When thinking about raising investment capital, one of the first things to establish upfront is what stage of funding your business is at.
When thinking about raising investment capital, one of the first things to establish upfront is what stage of funding your business is at.
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Thinking About Valuations
When it comes to setting a valuation for a capital raise, there’s about a million different things to consider.
When it comes to setting a valuation for a capital raise, there’s about a million different things to consider.
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Simply put, your valuation should be inclusive of existing value , and projected value.
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What's Your Story?
When raising capital for any business, the biggest thing that matters is your story.
When raising capital for any business, the biggest thing that matters is your story.
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Pitch Decks
You’ve probably heard of pitch decks. This deck will be the backbone of your capital raising efforts.
You’ve probably heard of pitch decks. This deck will be the backbone of your capital raising efforts.
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Pro Forma Financials
One of the most intimidating aspects of building your deck is putting together financial projections, especially as a pre-revenue startup.
One of the most intimidating aspects of building your deck is putting together financial projections, especially as a pre-revenue startup.
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Fundraising Structures
When raising capital for a startup, founders have several options for structuring their fundraising.
When raising capital for a startup, founders have several options for structuring their fundraising.
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Priced Equity Rounds
Let’s start with the most traditional form of startup fundraising: the priced equity round.
Let’s start with the most traditional form of startup fundraising: the priced equity round.
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SAFE
Now, let’s talk about a more startup-friendly option: the SAFE (Simple Agreement for Future Equity).
Now, let’s talk about a more startup-friendly option: the SAFE (Simple Agreement for Future Equity).
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Debt Financing
Finally, let’s talk about debt financing. Unlike priced rounds or SAFEs, debt financing involves borrowing money that must be repaid, usually with interest.
Finally, let’s talk about debt financing. Unlike priced rounds or SAFEs, debt financing involves borrowing money that must be repaid, usually with interest.
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How to Find Investors
One of the biggest roadblocks for new founders is figuring out how to find investors—especially if they don’t already have a network in venture capital or angel investing.
One of the biggest roadblocks for new founders is figuring out how to find investors—especially if they don’t already have a network in venture capital or angel investing.
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Investor Outreach
Once you have your investor list, the next challenge is actually getting your pitch deck in front of them.
Once you have your investor list, the next challenge is actually getting your pitch deck in front of them.
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Common Contract Clauses
As an entrepreneur, you’re going to have to learn to write some contracts (at least in the beginning). The good news is, there’s loads of free resources and templates online these days for just about every type of contract.
As an entrepreneur, you’re going to have to learn to write some contracts (at least in the beginning). The good news is, there’s loads of free resources and templates online these days for just about every type of contract.
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Profit Share Agreements
A profit share agreement is exactly what it sounds like. You and another person or business are endeavoring to do something together, and intend to split the profits.
A profit share agreement is exactly what it sounds like. You and another person or business are endeavoring to do something together, and intend to split the profits.
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Contractor Agreements
Contractor agreements are probably the most ubiquitous contract type you’ll encounter.
Contractor agreements are probably the most ubiquitous contract type you’ll encounter.
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Employment Agreements
If you’ve ever worked a W-2 job, than you’ve signed an Employment Agreement. The only difference now is that you’re on the other side of the contract.
If you’ve ever worked a W-2 job, than you’ve signed an Employment Agreement. The only difference now is that you’re on the other side of the contract.
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Non-Disclosure Agreements (NDA's)
Non-Disclosure Agreements (NDA’s) prevent one or both parties from sharing confidential information related to the other company.
Non-Disclosure Agreements (NDA’s) prevent one or both parties from sharing confidential information related to the other company.
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How To Set Your Prices
The practice of establishing your pricing structure can vary greatly depending on what you’re selling, whether it’s a product or service, etc.
The practice of establishing your pricing structure can vary greatly depending on what you’re selling, whether it’s a product or service, etc.
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Payment Processors
When it comes to collecting payments, you will need some kind of payment processor if you want to accept credit cards (which you will likely want to do).
When it comes to collecting payments, you will need some kind of payment processor if you want to accept credit cards (which you will likely want to do).
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ACH Payments
If you’re accepting larger payments ($5,000+), whether for a high ticket item or more commonly, billing a company for some type of service, ACH Direct Deposit is the best option.
If you’re accepting larger payments ($5,000+), whether for a high ticket item or more commonly, billing a company for some type of service, ACH Direct Deposit is the best option.
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Wire Transfers
If you need to send or receive a large sum of money TODAY, the only real option outside of crypto is a wire transfer.
If you need to send or receive a large sum of money TODAY, the only real option outside of crypto is a wire transfer.
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Is Venmo Viable?
Especially if you’re working with one-time contractors, payment services like Venmo or Zelle can be a great option for your small business.
Especially if you’re working with one-time contractors, payment services like Venmo or Zelle can be a great option for your small business.
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Payroll vs. Contractors
Hiring other people to get involved with your business is the first step in scaling up and reducing your own personal workload.
Hiring other people to get involved with your business is the first step in scaling up and reducing your own personal workload.
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Hiring & Quickbooks
Hiring other people to get involved with your business is the first step in scaling up and reducing your own personal workload.
Hiring other people to get involved with your business is the first step in scaling up and reducing your own personal workload.
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Commission Based Hires
While most contractors or employees will have a set pay rate for their job or project, many sales positions offer a commission based pay structure.
While most contractors or employees will have a set pay rate for their job or project, many sales positions offer a commission based pay structure.
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Where To Find New Hires?
Finding people to work for your company can sound like a daunting process, but in this job market, there’s literally endless ways to find your next hire.
Finding people to work for your company can sound like a daunting process, but in this job market, there’s literally endless ways to find your next hire.
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Hiring Process
Finding people to work for your company can sound like a daunting process, but in this job market, there’s literally endless ways to find your next hire.
Finding people to work for your company can sound like a daunting process, but in this job market, there’s literally endless ways to find your next hire.
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Resume, Interview, Callback
Now the fun starts - interviewing candidates! Obviously you’ll want to be prepared on the front end, so put together a list of questions you want to ask each candidate.
Now the fun starts - interviewing candidates! Obviously you’ll want to be prepared on the front end, so put together a list of questions you want to ask each candidate.
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Onboarding
Depending on if you’re hiring multiple people for similar positions or just replacing one spot, your onboarding process might be a little different.
Depending on if you’re hiring multiple people for similar positions or just replacing one spot, your onboarding process might be a little different.
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Delegation & Team Management
The point of hiring a team(s) is to take some weight off your shoulders, so don’t micromanage.
The point of hiring a team(s) is to take some weight off your shoulders, so don’t micromanage.
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What is a Seller's Permit?
If you plan on purchasing anything for resale, you’re going to want to have a seller’s permit.
If you plan on purchasing anything for resale, you’re going to want to have a seller’s permit.
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So how do you get a seller’s permit? It varies state to state.
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Collecting Sales Tax
Collecting and paying sales tax can be an extremely annoying process, especially if you’re liable to do so for multiple different states.
Collecting and paying sales tax can be an extremely annoying process, especially if you’re liable to do so for multiple different states.
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Constant Contact Overview
For any marketing emails, I recommend you use Constant Contact instead of Shopify’s integrated system.
For any marketing emails, I recommend you use Constant Contact instead of Shopify’s integrated system.
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Email Marketing Strategy
When coming up with a strategy or schedule for your email marketing, it’s important to be intentional about the types and frequency of emails that you send.
When coming up with a strategy or schedule for your email marketing, it’s important to be intentional about the types and frequency of emails that you send.
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Case Study Review
My most successful email campaigns ever were for an influencer clothing brand I owned.
My most successful email campaigns ever were for an influencer clothing brand I owned.
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Getting Started
If you’re producing a physical product, the process is going to be extremely bespoke to your business and whatever your product actually is.
If you’re producing a physical product, the process is going to be extremely bespoke to your business and whatever your product actually is.
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Overseas vs. Domestic
Once you have working prototypes or samples for your product, you likely need to set up a way to increase your output past your own two hands.
Once you have working prototypes or samples for your product, you likely need to set up a way to increase your output past your own two hands.
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Bringing Production In-House
If you’re looking to scale production, one of the best ways to do it is by bringing all of your production in house.
If you’re looking to scale production, one of the best ways to do it is by bringing all of your production in house.
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Where to Meet Heads in Your Industry
All things considered, there’s one aspect of your business and life that will undoubtedly drive the most success: Networking.
All things considered, there’s one aspect of your business and life that will undoubtedly drive the most success: Networking.
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Always Be Prepared
Once you enter the space where potential partners or clients are spending their time, it’s important to be prepared.
Once you enter the space where potential partners or clients are spending their time, it’s important to be prepared.
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Elevator Pitch
When the conversation turns to what you do, make sure you have a clear and concise value proposition.
When the conversation turns to what you do, make sure you have a clear and concise value proposition.
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Say Yes Now, Figure it out Later...
If at any point in the conversation you are given the opportunity to do literally anything - whatever it is, say yes.
If at any point in the conversation you are given the opportunity to do literally anything - whatever it is, say yes.
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"Fake It Til You Make It" Strategy
Everyone’s heard “fake it til you make it” - people usually say it as a joke. The thing is, it absolutely works.
Everyone’s heard “fake it til you make it” - people usually say it as a joke. The thing is, it absolutely works.
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Be The Helping Hand
When interacting with potential clients, customers, partners, or investors, the last thing you want to do is come off as needy.
When interacting with potential clients, customers, partners, or investors, the last thing you want to do is come off as needy.
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Lock In The Contact
Before leaving a good conversation, it’s imperative that you lock in the contact.
Before leaving a good conversation, it’s imperative that you lock in the contact.
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Turbotax is Great, Accountants are Better
When tax season comes around, you have two fundamental options: hire an accountant, or fire up Turbotax and do it all yourself.
When tax season comes around, you have two fundamental options: hire an accountant, or fire up Turbotax and do it all yourself.
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Separate Income Streams
Let’s say you have multiple side hustles - tax season is when it becomes extremely convenient to have each of your income streams in separate LLC’s.
Let’s say you have multiple side hustles - tax season is when it becomes extremely convenient to have each of your income streams in separate LLC’s.
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LLC Tax Designations
The only major decision you have to make when filing your taxes is what tax classification your LLC is going to use:
The only major decision you have to make when filing your taxes is what tax classification your LLC is going to use:
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Necessary Documents
The main thing you’re going to need to get your hands on for tax season is your full year’s accounting from Quickbooks.
The main thing you’re going to need to get your hands on for tax season is your full year’s accounting from Quickbooks.
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Sending 1099's
Throughout the year, if you’ve paid any contractors more than $600, you’ll need to issue them a 1099.
Throughout the year, if you’ve paid any contractors more than $600, you’ll need to issue them a 1099.
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Common Deductions
The final piece of the taxes puzzle is everybody’s favorite: deductions! If you’re using an accountant, they should take care of these for you.
The final piece of the taxes puzzle is everybody’s favorite: deductions! If you’re using an accountant, they should take care of these for you.
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