All Posts by Hailey Everson

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Nov 23

Build Your Business on a Firm Foundation

Articles

When you are building a house, it’s vital to build your home on a firm foundation. The same thing is true when building a business. In my time as a business consultant, I’ve seen far too many people build their business on the sand. 

Are you familiar with the story of the two men who built houses? One man built his house on a rock, and the other man built his house on the sand. When the rain and floodwaters came, the man who built his house on the sand was left with rubble. But the man who built his house on a rock-solid foundation was fine.

While it’s hard to know what your business will come up against, you must be prepared. This is why the majority of aspiring entrepreneurs set up LLCs for their business. But, in many cases, these business owners aren’t sure why or if an LLC is right. They were just told by a friend or someone else that they needed one.

Let’s start with the basics. LLC stands for Limited Liability Company. When an LLC is formed and maintained correctly, it provides liability protection for you as a business owner. In other words, if something goes wrong with your business and you face any legal action, you can’t be held personally liable, and your personal assets are protected.

But, it’s critical that the LLC was correctly formed for any of it to work as intended.

I’ve seen many aspiring entrepreneurs use a cheap online filing service or get help from a friend who has filed an LLC before. I get it. You have limited funds as you start your business, and you want to find a cost-effective way. But this is where you can encounter problems later.

All LLCs are not the same. Each state has different filing requirements. It is critical to understand the specific statutes that govern your state and make sure your LLC is customized for your business. When filing your LLC, you will need:

  • Articles of Organization
  • Operating Agreement
  • Federal Tax ID#
  • Membership Subscription Agreement
  • Membership Certificates & Ledger
  • Register of Officers, Managers, Governors
  • Declaration of Management Structure (i.e., Member-Managed, Manager-Managed, Board of Governor-Managed)
  • Bank Authorization Resolution
  • Organizational Meeting Minutes
  • Etc.

If your LLC is not done correctly, you are not any better off than the man who built his house on the sand. When you use an online filing service or get help from a friend, you are getting what you paid for, and you may not be protected long-term, which is likely going to cost you more than if you were to have just invested in a better foundation at the get-go. This is why it is crucial to avoid the cheap, sub-standard service or the DIY approach.

If the LLC’s liability protection is rendered worthless, you can be held personally and financially responsible for any legal action against your business. No one wants that.

Piercing the Corporate Veil is a legal metaphor for when a court disregards the separation between your business and you. It means you and your personal assets are exposed. I will talk more about this concept in the future.

Starting a business is hard enough. I want to help you make sure your business is built on a firm foundation that will protect you and the wealth you are accumulating.

This was a lot of information to take in, and I’d love to help answer any questions you may have. Please, feel free to schedule a call with me or shoot me an email at kent@kentgustafson.com.

Aug 01

Are you on track with your mission?

Uncategorized

I work with many clients who come to me because they are really struggling in their business. Sometimes it’s a matter of their sales numbers not being where they need to be. Other times they are dealing with workflow and/or product/service delivery issues. In some cases the business is doing well overall, but the business owner simply isn’t happy.

When a client engages me to advise in such a situation, I typically start with a simple question: Are you on track with your mission? Usually the answer is NO.

While the consequences often differ from situation to situation, more often than not the root cause is the same. Far too often business owners get sidetracked and lose sight of their mission. It’s never intentional, but without question the resulting effects can be catastrophic.

While you may think this topic is geared more for someone who has been in business for a while, I actually think there is equal benefit to those who may be just starting their business.

When starting a business, it is really important to know what your mission is. When I started out more than 15 years ago, my mission was pretty simple. I wanted to:

  1. Live life by my own clock
  2. Provide a good living for my family
  3. Accomplish both of these things by helping as many people as I possibly could

I can honestly say that after 15+ years, I am on track with my mission. That does not mean that there haven’t been modifications in how I do what I do (adapt or die right?), but my mission has never changed. Because I have stayed focused on my mission, I am achieving it to the fullest.

HOW DID I GET OFF TRACK?

So how do we lose sight of our mission and get off track?

It isn’t ever just one thing, and it typically occurs over time. Sometimes it is a revenue generating opportunity that pulls us in a new direction or perhaps we are simply responding to alternative consumer demands. Whatever the cause, it’s usually disguised very well and seems like a really good idea at the time.

While there are times where this actually works out for the best, those instances are usually the exception and not the rule.

WHY?

So why is it a bad thing to get off track with our mission? Well, if we have gone through the process of determining what our values are and we’ve built our mission from those core values, then our mission is the essence of what we are all about as a person. It comes from deep within us and is a part of our character.

Spoiler Alert: I will be focusing on values in my next blog.

HOW DO I GET BACK ON TRACK WITH MY MISSION?

When I am working with a client and we have identified that the root cause of their struggles is related to them having gotten off track with their mission, they often feel defeated. While this is natural, it’s also unnecessary.

In my opinion, not being able to identify the problem is a much greater dilemma. Once you’ve identified the problem, you can move on to the problem solving stage and in this particular case I think the solution is simple.

STOP DOING WHAT YOU’VE BEEN DOING & START DOING WHAT YOU SHOULD BE DOING

If you read my recent blog post on HOW TO SAY NO, this is the perfect time to practice that concept in your business.

  • If opportunity comes knocking at your door and that opportunity pulls you further away from your mission, JUST SAY NO.
  • If a client asks you to offer a product or service that pulls you further away from your mission, JUST SAY NO.
  • If you are engaging in certain business practices that pull you further away from your mission, STOP DOING IT.

I know this probably sounds a bit too simplistic, but it isn’t. When you learn to say NO to the things that separate you from your mission and choose to focus all of your time and attention on accomplishing your mission every single day, you will be amazed at how quickly some of the challenges you have been facing begin to fade away. More importantly, you will find that you are much happier and feel fulfilled in your business.

When we are on track with our mission, we function better. We are happier knowing we are on a clear path that we fully believe in, and our business becomes fun again rather than feel like we are working a job. We have passion and purpose and flows from our pores.

I trust you will find this helpful as you build your business. If you have questions or simply want to dig deeper, I’d love to speak with you. You can reach me at kent@kentgustafson.com.



Sep 09

ARE YOU ALIGNED WITH YOUR VALUES?

Uncategorized

Regardless of who we are, where we come from, or what we do, we all have values. Usually where we come from and how we were raised heavily influence those values.

I grew up on a farm in a small Midwestern town. My parents are conservative people from modest beginnings. Obviously, those factors played a huge role in shaping my own values.

When I started my entrepreneurial journey, I spent a lot of time examining my values and making sure that they were at the center of my business plan.

While I wanted to make certain that I would build my business on honesty and integrity, I knew there was more to it than that. I realized that if I was to be successful, it was essential that my core values were clearly evident in every aspect of my business.

SO HOW DO I DO THAT?

While the process may be a bit different for everyone, I believe it always starts with putting your values down on paper in a clear and concise manner. For example, my core values are:

CHARACTER: I want to be remembered as a man of integrity and strong character. Someone who is honest, trustworthy, and truly cares about other people.

FAITH: My faith in God is the most important thing in my life.

FAMILY: Only my Christian faith comes ahead of my wife and children. They are my everything.

FREEDOM: I value time and the freedom to have full control of it. I want to live life by my clock, not someone else’s.

WORK ETHIC: I believe there is no substitute for hard work and doing things the right way.

When you write them down, maybe even share them with others, there is real ownership and accountability to live them out in all you do.

BUT HOW DO I MAKE CERTAIN I AM ALIGNING WITH THEM?

I think this is a fair question. It’s one thing to write them down, but living them out is an entirely different animal. It requires effort, diligence, and accountability.

Putting your core values in writing is important, but if you are truly going to emulate them day in and day out you must reflect on them often and be honest when you look in the mirror.

Personally, I spend a lot of time reflecting on business meetings and interactions with clients and other business professionals. Typically, I ask myself these questions:

Did I engage in a manner that demonstrated I care about the client and their needs?

Did I model strong character, honesty, and integrity?

Did I demonstrate that my faith, my family, and my freedom of time are important?

Did I do anything that would compromise, or contradict my core values in the eyes of others?

Because often what we do speaks more loudly than what we say. So we must reflect on these things often and analyze our behavior so that we can grow as a person.

When we are honest with ourselves and willing to make changes based on our self-evaluation, the more we develop into the business owner we are all striving to be.

IS THAT IT?

It’s a big part of it, but I think it’s important to take it a step further.

There are other factors that indicate whether or not we are aligning with our values than just how we act or speak in our interactions with others.

What about our priorities? If my faith and my family are the highest of my core values, do my priorities reflect that in terms of how much time and attention they receive?

Honestly? Not all the time, which is why it is a constant area of focus for me and one I strive to improve upon every day.

What about the work that we do? Are we doing good work for others that we enjoy and are good at? Or are we just taking the opportunities that come?

I think one of the biggest areas of growth for me, and a true reflection of aligning with my core values, was when I started saying NO to things I didn’t really want to do or wasn’t particularly good at. If I truly believe in freedom of my time, then I should be focused on doing what I love and doing it well.

Life is too short to spend your time doing things that make you miserable. In the end, you will put it off too long and miss a deadline or the quality of your work will be poor, and you will fail your client.

There is certainly more to all of this, but I will leave that for another day. For now, I trust you will find this helpful as you build your business. If you have questions or simply want to dig deeper, I’d love to speak with you. You can reach me at kent@kentgustafson.com.