Business 101 for Beginners

[Fitzwilly]

This was posted on the Mooseburger Yahoo Group by Hoot in response to a question by our own Sassy Frass. There is too much good information in here not to repost.


Business 101 for beginers

Posted by: "Christopher Hudert" christopher@applauseunlimited.com

Fri Nov 16, 2007 12:33 pm (PST)



Glad we were able to help. One of the great things about the internet,
and this list specifically, is that questions asked by one can often be
answered to the benefit of many.

So, if you are aiming at becoming a business. here are a few steps to
help you climb the business ladder.

Step one, get yourself to the library and check out some books on
starting a business. They may even have one of those basics simplified
books like the "Dummies/Idiots" series. Check out a couple and read
them. No, not everything in it will apply to what you want to do. You
will have to "bend" some of the advice to fit your need. But you'll get
the basics and get started on the right foot. Don't depend on anyone
else (even this list) to do your homework for you.

Step two, get to the county or city courthouse where you live (or maybe
even via internet these days) and find out how to register your
business. Even if you begin with a DBA (Doing Business As) such as Jim
and Brenda X dba S & F Entertainment, it will start you off in the
right direction. Once you set yourself up as a business you can open a
bank account in that name and be paid that way. Also, when you buy
things for your clown work you pay from that account. This will help
you keep records better since income and expenses won't be co-mingled
with your personal accounts.

Step three, get either identi-ring or a separate phone line for your
business. That way you can answer those calls in a professional manner
and not have them on your home line. Perhaps you want to get a cell
phone for that purpose. If you have one already it is fairly cheap to
add a line that you would then use exclusively for your business calls.
You might want to check with the local phone company and see what the
requirements are to be listed in the yellow pages under "clowns" and or
"family entertainment" if you want to advertise that way. The
additional price for the listing may outweigh the savings from the
mobile phone or add a line.

Step four, develop a phone sheet that you use when people call you.
Keep it in a binder by the phone. The sheet needs to be a form that
covers all of the information that you need to know to do the gig. For
more on this see the sheet that is in the booklet that I give out at my
business class. Don't have the booklet? Hmm, guess you'll have to come
to Moose Camp then won't you.

Step five, establish your rates and be consistent and fair. Some people
charge whatever they think they can get for a gig, depending on whether
it is a corporate gig, family party, or on the moon. There is no rhyme
or reason. I, personally, would advise against that. People/clients do
talk and compare. Yes it is okay to charge differently, IF there are
just reasons to do so. But I think if you are giving the same service
you should be charging the same rate no matter who it is for. Don't
discount the fee unless you are also reducing what you are delivering,
and don't mark it up unless you are also adding on to what you normally
are delivering. Adding on to the fee for mileage, or other factors that
increase your cost, is fair. Hiking the price just because the gig is
in the ritzy part of town is not fair. If you are up-selling and adding
on to your basic service for the ritzy section, that is fair.

Step six, work up basic letter of agreement and/or contract that you
can send to your clients. It's not a bad idea to send it to the
charities that you do with the value of the service noted. I don't
think that it will allow you to deduct anything out of the ordinary
from your taxes, but it does let the charity know what they are getting
as well as keeping all of the information (together in one place) that
you need to do the event. What's in the letter/contract? Well, that's
in the booklet too, but I posted some of that in an earlier email, so
that can be found on the archives of this list. See Tim's previous post
for a hint on where to look. (Tim, I may still get around to posting
more of that here, but we don't want to give it ALL away. We want you
to come back to Moose Camp!)

Step seven, when you do your charity events make sure that you can at
the very minimum have your card and brochure available for interested
parties to take with them. Also ask that they put your names in their
printed matter, ie "Facepainting courtesy of S & F Entertainment" in
exchange for your services.

Step eight, begin to choose your charities rather than the other way
around. Once you start to do this as a business you can continue to do
some charity work, but if you do every worthy cause that comes your way
you won't have the time or energy to do the paying jobs that keep your
clown business going.

Step nine, reinvest in yourselves and your business. Go to Moose Camp
and other educational opportunities as regularly as you can. Upgrade
your costumes and props when you can - every two to five years,
depending on how busy your business is. This means you need to set
aside some time and some of the money you are making for this purpose.

Step ten, join your local and national clown groups AND help out others
who are where you are now. Don't just attend meetings and conventions,
participate to the highest level you can. Can't or don't want to teach?
That's okay, but don't just be a lump in a chair when you go to classes
or meetings. Ask questions. Volunteer for things. Participate. Giving
back will reenergize you and help you continue to grow.

Hoot

[Luki Loki]

One thing I noticed that was missing was contact the local Small Business Administration. They have the knowledge on starting a basic small business and access to SBA loans. My case worker helped me design a brochure and helped me find a few contacts in the children's entertainment sector I might have been able to hook up with and set up some discount packages.

[Fitzwilly]

Loki, would you explain a little about the "contacts in the children's entertainment sector I might have been able to hook up with and set up some discount packages." Are the discount packages independant of the contacts or are they more like bartering services?

[Luki Loki]

The one contact they helped me hook up with is Jump For Joy, a "Moonwalk" company. I am working on setting up a package deal where if a customer hires both Jump for Joy and my Clown company they get a 10% break on each fee.

Come to think about it I need to give them a holler and see if they have any more input.