Dismantling New Business Myths: A Straight-Talk Guide for New Entrepreneurs

Hi there, dreamers & dynamos,

Welcome to New Business Mythbusting 101.

Grab a cup of coffee, friend. Let's bust some new business myths.

Hey there, friend! If you're reading this, it's safe to say two things. One, you're looking to dive headfirst into the rollercoaster of entrepreneurship (and gosh, what a thrilling ride it is). Two, you've heard a lot of things about starting up a business – some great, some downright scary.

Well, dear reader, it's time to slay those business myths and misconceptions that are standing between you and your entrepreneurial dreams. Because let me tell you, little nuggets of misguided wisdom can be more damaging than any hiccup on your journey to success.

So let's get the truth bombs dropping, shall we?

Myth 1: "You need to choose a business or product name right away."

Oh, that seductive rush of wanting to carve your brand name into the fabric of the business world. I mean, who doesn’t LOVE, Canva, right?  But hold your horses there, gal-pal!

Here's the deal with this new business myth:

Your business, like any great masterpiece, will grow and morph and twist into shapes you never initially envisioned. So why, pray tell, would you rush into deciding a branding strategy, when your entrepreneurial canvas is still a work-in-progress?
Take it from someone who's been down this road more times than I'd care to admit – using your personal name in the early stages offers you the freedom to pivot your business without the hassle of changing your brand name down the line. The same goes for your signature offers or packages.

Case study: Why needing a clever name is a new business myth

For example, I wanted to call this little corner of the Internet: Kerry’s Contracts for Creatives and Coaches. But, I know that I want to, and do, have offerings far beyond just contract templates. For one, I offer other DIY legal templates like privacy policies, disclaimers, operating agreements, cease and desist letters, etc. The name “contracts” would already be too narrow and would potentially deter people whom I could help because they need some other type of legal template. That’s before we even get to the legal education training and masterclasses that I offer. So my original name could be considered super limiting and, I don’t know about you, but I believe that the limit does not exist (IYKYK). 

The name Kerry Carroll LLC, while not exactly clever, gives me much more latitude to iterate and lets me continue to grow the ways my business serves my customers.That’s one of the major upsides of a personal brand, people expect that they will change and adapt. 

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What is the bottom line on branding? Should I let Canva get cobwebs?

Just remember, the goal is to resonate with your customers, not just tick a box on your start-up checklist. A name you adore might just not click with your dreamboat clients and then you need to pivot. So relax, step back, and let your business evolve before you rush to trademark everything.

Sidebar: I’m not saying do no branding. Brand it up with colors, images, fonts, etc. But don’t rush to the Trademark attorney to lockdown your names. Instead, begin with some trademark research to see if names you will are even available and then test different ideas out.

But, Kerry, what about my business entity?

You smart cookie! Yes, you should definitely get your business registered, but your LLC name does not need to be your business’s final name. You can use a DBA, see my article here for all the details, to give your business a different nickname later. For now, get your LLC set up and choose a name that gives you maximum flexibility so you don’t limit yourself or your business’s growth. And it is 1000% worth mentioning, your LLC name does not offer you any trademark protection. 

Myth 2: "It's okay to slap business expenses on your personal credit card until you start making money."

Now this, my friend, is as dangerous as skateboarding down a steep hill without kneepads. Sure, it might seem like an easy way to keep the ball rolling – until you faceplant onto Financial Mistake Boulevard.

Refresher: The Power of the LLC

Let's break this down. When you set up your LLC, it's like a golden shield that protects your personal assets from business liabilities. But the moment finances start getting tangled up (business expenses on a personal credit card? Yikes!), that shield starts to crack. Seriously, mixing your business and personal finances is kryptonite to the protection of your LLC status.

How to avoid this pitfall?

The solution is clear: Keep your pockets separate. Every time you pay for a business expense from your personal accounts, you are sending the courts the message that you-the-person and you-the-business are one and the same. That’s going to be a huge issue if you try to invoke the protection of your LLC to shield your personal assets from a business lawsuit.

I get it. There are a lot of expenses as you start to get your business rolling. The practical ones like business entity formation, business insurance premiums, and even website designers, and the fun ones like Canva subscriptions, branding graphics, and course after course.

I need money, honey

What to do? Make a budget for your business expenses, then transfer that cash over to your business account as a capital contribution. Look at it this way – you're investing in your dream venture. Now doesn't that make the dent in your personal savings seem worth it?

If you need to, business credit cards might be useful as you start up. Use them, but always ensure you can back up those monthly payments from your business bank account alone. Stay safe, stay responsible, and make sure you document any capital contributions or owner’s draws.

Myth 3: "One contract fits all."

I love a good one-size-fits-all as much as the next person (beanies, scarves, raincoats – bring 'em on!). But when it comes to business contracts, this notion can land you, and your business, in a hot mess.

Think about it. You offer a one-on-one coaching session – that needs a contract. You're launching a group course – there's another one. Recruiting a Virtual Assistant? Yep, another unique contract. 

Each service you offer has its own set of specifics – timelines, deliverables, even communication expectations. And that’s before we even get into the legal clauses that each of these needs to include. A generic contract, though easier, would be as useful as a chocolate teapot.

So be the meticulous, detail-obsessed entrepreneur you were born to be. Ensure each of your business offerings has a contract that fits it like Cinderella's glass slipper. It's time-consuming and needs a keen eye, but it's a critical step in safeguarding your business.

Conclusion: New Business Myths = Busted

So there you have it – three new business myths, busted wide open. Remember, in this thrilling journey you've embarked upon; there are no shortcuts or easy fixes. But armed with truth, wisdom, and grit, there's no stopping you from reaching the entrepreneurial stars. Cheers to your success, my friend!

THIS ARTICLE IS NOT A SUBSTITUTE FOR LEGAL ADVICE AND IS OFFERED FOR INFORMATIONAL PURPOSES ONLY. EVERY SITUATION IS UNIQUE AND YOU SHOULD CONSULT A LOCAL ATTORNEY FOR ADVICE ON YOUR PARTICULAR CIRCUMSTANCES.