How to Rule the World!

I recently overheard a woman talking about how she could rule the world if she only knew how to feel more energetic. Huh? Ruling the world shouldn’t be a goal. Ruling YOUR world should! I always say that everyone is capable of anything- you just have to try!

You can rule your world if you do the following;

1. Know that you can’t control everything. You can, however, control how your respond.

2. Know that you have to have an exit plan. Things happen.

3. Understand that you have to fail before you can rule. As long as you get back up and seek to better yourself, you can take control over your destiny.

Don’t spend time wishing for things to happen or making excuses as to why they are not. You can be better. You can rule your own world.

Until tomorrow,

Twyla N. Garrett

Your Legal Status.... Business 101

As we head into the first Thursday of February, I want to refresh you on the different status claims you can obtain for your business-- as well as what the pros and cons are. I've noticed an uptick in private security businesses starting up. I know many of you follow my lead when it comes to the business of security. So, for that reason, please read through these basics and then follow up with your legal adviser on what will actually work for your concept/ idea.

Sole Proprietorship: This type of business does not make a legal distinction between the business owner and the business itself. Although costs can be low (from taxes to licensing fees)the down-side is that you will be personally responsible for any business debt that may occurs, potential law suits, and your personal income tax reflects your entire business' profit.

A General Partnership is the same as a sole proprietorship but with several owners. Again, the set-up costs are low and there are relatively few regulatory requirements. And, again, the owners are completely liable for all the actions and debts that stem from the business.

Limited Liability Partnership(much like a LLC) is very similar to a general partnership. However, there is a separate classification of partners making each person's liability limited. The downside to this classification is it only "limits" a partner's liability, not erase it completely- which is a common myth. Also the filing and administrative requirements are complex.

C-Corporation is only a form of doing business that creates a separate legal entity from the individual owners. This legal entity can act and do business on its own just as a person would do (i.e. borrow money, enter into lawsuits and contracts, etc.).
With a C-Corporation your "owners" are now shareholders who are not personally liable for the actions and debts stemming from the company. However, if a shareholder wants to leave the business then the paperwork involved isn't easy, making a separation a long-one- which in the case of a nasty separation only makes the situation worse. Also, owners (shareholders) are taxed twice.

S-Corporation is a type of corporation but the business is taxed as if it is a sole proprietorship. Its formation is subject to certain legal criteria such as a maximum number of shareholders. The benefits, unlike a C-Corp., include owners only being taxed one time. However, the administrative costs are higher and all owners (shareholders) have to be U.S. citizens.

Many business owners either chose to set-up as an LLC or an S-Corp. Note, I will not advocate for either because you need to discuss your personal situation with a lawyer and a CPA. However, I will state that an LLC may have to pay more self-employment taxes than S-corps due to IRS regulations.

Until tomorrow,

Twyla N. Garrett

How to Get Oprah Money.

Want to know the number one phrase I hear as a business owner? “Oprah,” is the most popular word / phrase that I hear. From people pitching me as the next “Oprah” of business to people stating they need to get their products and books on “Oprah’s” show – it seems I can’t escape the word.

Oprah didn’t have a blog to read about success. She used her resources, merit and talent to expand her brand. She will be the first to admit it wasn’t easy. Luckily, you have a blog to read free business tips on. Since I hear of Oprah so often, I decided to share her secret to financial success.

Yes, this popular infographic is floating around the internet (still can’t escape Oprah) and I figured my readers would love to see it, and share their comments on it, this Friday.

So, enjoy and I will have more for you on Monday!

Twyla

The Art of Oprah's 'Pivot'

I try not to quote Oprah often. She does what works for her- and there is no doubt that it works well. This said, Oprah's life and my life are two different things. What she wants, does and how she operates isn't for everyone. In fact, I never recommend modeling your life after what Oprah does. It isn't realistic and you're setting yourself up for failure. You have to be you!

I will, however, talk about the art of Oprah's Pivot. So, what is Pivot anyway? Eric Ries, author of The Lean Startup, coined the term pivot. This term means to change the direction of a company (essentially to avoid disaster) without alerting employees or clients.

The Oprah Pivot: Here is what she said. “Let me just say, we have made the pivot,” Winfrey said today on “Good Morning America.” “It’s been really an exciting challenge and I am really so happy to announce to the world, ‘We have made the pivot.’”

Here is what really happened: Oprah was losing her ratings. Her almighty show was on the brink of cancellation. She was left with three choices. 1. Allow the show to be cancelled and accept public humiliation that she really didn't have viewership she was projecting. 2. Retire while she was on top and let her employees find work elsewhere why her brand sailed into the sunset. 3. Reinvent her company to meet the demands of the audience she did have. Basically, rebuild from the ground up without letting her audience know the company was in trouble and her show was failing. Oprah opted for option 3- the pivot!

Steps for A Successful Pivot:

1. Get your team on board without creating panic. In fact, create excitement and talk opportunity, opportunity, opportunity. People talk. Employees talk. No leaks can be risked as to what really is going on with your company. Even with top executive management. Stay positive and get that team of yours talking up the next move for the company!

2. Keep money coming in while you plan your pivot. You need money to make money. Don't pause one business model or business effort to focus on another. That is a disaster waiting to happen.

3. Hire someone who knows how to pivot to help you the first time around. There is no shaming in the pivot- again, look at Oprah. I can help you, other business consultants can help, write Oprah a letter- do whatever it is to find the one special person who can help you pivot. You will need support!

There is no shame in learning how to pivot. The world changes. Demographics change. Your company is going to change. If you know how to pivot then you can change while making money and developing a stronger brand.

I hope this blog leaves you inspired as you head into the weekend,

Twyla