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How I Started, Grew & Sold An E-commerce Business For Quarter Million Dollars ($250,000) – Part 2

Entrepreneurs-Journey.com by Yaro Starak

Finding a programmer who will work in exchange for a vested interest is difficult; the alternative is to have and be willing to fork out dollars constantly for work you want done on your website. Just a year before this, I had conducted buy side due diligence (BSDD) when I acquired a physical, local business in my community.

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Do You Have a Business or a Hobby?

Up and Running

You have a vested interest in making sure it works. You have a vested interest in making sure it can support your lifestyle, allow you to quit your job and NEVER work for anyone ever again in your life. Talk to a CPA and/or an attorney to figure out the best structure for your business ( partnership , LLC , S-Corp , etc.).

Vesting 101
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Third Leg of the Stool

The Entrepreneurial Mind

The first two legs were a business-minded attorney and a CPA. There is no substitute for the service a dedicated banker can provide who has a vested interest in you and your business." In two previous columns, we began looking at the "three-legged-stool" -- that is, whom small businesses need as supporting advisers.

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The Five C’s For Making Your Business Credit-Worthy

Up and Running

Additionally, if finances are not your strong suit, make sure you have someone on your team (employed or vendor/professional, such as a CPA) who handles this for you. If you are not vested, how can you expect a perfect stranger (lender) to be? If you do not have them, there are many resources that can help you create them. Collateral.

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Do You Have a Hobby or a Business?

Up and Running

You have a vested interest in making sure it works. Talk to a CPA and/or an attorney to figure out the best structure for your business ( partnership , LLC , S-Corp , etc.). A business is something that requires more skin in the game. But if you’re treating it like a hobby, you’re only increasing your level of risk.

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How to minimize customer acquisition costs

Duct Tape Marketing

Continue treading these waters and you’ll need a life vest. Determine Cost Per Acquisition (CPA): CPA = CPPC multiplied by CR. You congratulate your staff on the sale (keep it going!), yet your marketing spends translates into zero net gain–or even a loss in some cases. Determining your spend.

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Beware The Consultant

infochachkie.com

Allow the consultant to invest in your future success; in lieu of cash, grant them equity in the form of Non-qualified Options that vest based upon the attainment of quantifiable goals; keep in mind that adverse tax consequences may be associated with such equity grants, so check with your accountant before deploying this form of compensation.

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