5 Website Legal Landmines Every Freelancer Should Know About

Protecting Your Business on the Web

Whether you’re an accountant, a designer, or a plumber, chances are you use the web to advertise your services, communicate with clients, and manage your network. And if you’re using social media, a blog, or your website as a platform for marketing your freelance business, then you need to understand the legal and financial risks of posting content.

In many ways, the web is still a legal Wild West. As the Internet evolves, our legal system is struggling to keep up with the challenges presented by social media, file sharing, digital copyright law, and online character defamation.

As a solopreneur, the best way to protect yourself is to know your rights and to act in good faith every time you make a decision regarding content on your website, blog, or a social media platform.

Consider the following article food for thought and use this as a jumping-off point to examine your rights online. As always, if you’re unsure about a legal issue pertaining to your business, consult a professional.

1. Intellectual Property

On the web, content is extremely fluid. With a single click, you can download photographs or data files to your hard drive, and many freelancers make the mistake of “publishing” copyrighted material on their website or blog. In general, you should avoid uploading another person’s intellectual property, unless you have their written permission.

You can usually get away with publishing quotations, facts, and ideas so long as you cite your sources and provide links, but if you reproduce published material without citing your source, then the copyright owner could claim that you have substantially diminished the value of the content.

If you want other people to be able to copy content that you’ve created for your website, then you might want to consider publishing your work under a Creative Commons license.

These licenses are available free of charge. They allow you to communicate which rights you wish to reserve, and which rights you are willing to waive for the benefit of other content creators, aggregators, and web users.

2. Privacy

You don’t have the right to publish private facts and confidential information about other individuals, including your competitors, on your website (just as they don’t have the right to publish private facts about you), but it isn’t always easy to establish what constitutes a private fact.

Privacy on the Internet has always been a gray area since most of the information on the Internet has been offered voluntarily. However, in general, it’s never acceptable to publish a personal detail or specific fact about an individual that hasn’t been established as a matter of public record.

Trade secrets (the term is pretty nebulous, but it can include everything from pricing structures to secret recipes) are another gray area. In order to be counted as a viable trade secret, a piece of information must give an organization a distinct competitive advantage.

It’s always wise to avoid disclosing any information that might affect another business’s ability to generate revenue.

3. Stock Photos

Recently, owners of large collections of stock photography have launched a litigation campaign aimed at punishing individuals and organizations who republish stock images without permission.

If you’re looking for images to use on your website or blog, then consider creating images yourself, or performing a search for images that are available under a Creative Commons license. Or buy some stock photos that grant a use license.

4. Social Media

As social media has become the dominant platform for self-expression and file sharing on the web, the courts have struggled to address specific legal issues related to this rapidly evolving phenomenon.

The best way to protect yourself within social media sites is to research your rights and obligations. On Facebook, for instance, you own all of the content and information you post to your profile, and you can control how that information is shared through your privacy settings, but individuals with access to your profile are still able to copy or download your content without your knowledge.

5. Defamation

Defamation essentially means making a false claim that harms the reputation of a person or organization. So long as you make it clear that the opinions expressed on your website or blog are just that — opinions — you should be protected from claims of libel and defamation. And just don’t lie about someone.

The best way to stay out of trouble? Keep it strictly business. Focus on promoting your services and your expertise, and let your competitors fend for themselves.

Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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What to Include in Your Business’s Annual Meeting Agenda

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Running a successful business means ensuring clear communication and mutual understanding within your team. A crucial aspect of this is the annual meeting, where members come together to discuss various matters concerning the company’s growth and future. But what does a well-planned “annual meeting agenda” look like? Let’s dive in and break it down in a way that’s simple and easy to understand.

What is an annual meeting?

An annual meeting is a mandatory gathering for corporations and, in some cases, LLCs where important topics related to the company’s functioning and future are discussed. The annual meeting agenda outlines these topics, providing a roadmap for the conversation.

Requirements for a Corporation Annual Meeting

State laws, corporation bylaws, and U.S. Securities and Exchange Commission (SEC) rules for publicly traded corporations mandate annual meetings. The meetings cover essential topics like financial reports, board elections, and future strategies. 

Requirements for an LLC Annual Meeting

Unlike corporations, an LLC isn’t legally required to have annual meetings unless specified by the operating agreement. However, holding regular meetings can foster communication, keep members informed, and create a solid plan for the upcoming year.

What should I prepare for an annual general meeting?

Preparation for an annual general meeting involves several steps. First, compile a comprehensive annual report that includes financial summaries, significant achievements, and challenges faced during the year. Second, create an agenda that covers crucial discussion points like electing board members, reviewing administrative duties, and setting strategic goals. Lastly, prepare to facilitate open discussions to engage all members.

What to Put in the Company Meeting Agenda

Crafting a comprehensive “annual meeting agenda” ensures every key topic is discussed and all decisions are made in a democratic and informed manner. Let’s break down some of the critical elements to include in your agenda:

Election of Directors or Managers

A primary focus of the “annual business meeting” is the election or re-election of the board of directors or managers. This process is crucial as these individuals will guide the company’s strategic direction for the next year or their tenure term. Detailed profiles of potential candidates can be included in the agenda before the meeting, allowing members to make informed decisions.

Administrative Duties

This section includes an overview of the duties carried out by various team members and any administrative changes that have occurred or are expected. It’s an opportunity to address changes in policies, protocols, and any other updates that impact the business operations. Administrative updates can also cover staffing changes, office updates, and recent accomplishments or challenges.

Financial Report

The financial report is an in-depth look at the company’s financial health. It includes revenue, expenses, net profit, and cash flow details. This section also serves as a platform to discuss financial forecasts for the upcoming year. The transparency offered by this portion of the annual meeting agenda can drive better business decisions and inspire confidence among members and shareholders.

Strategy and Goals

Last but not least, the meeting should focus on the business strategy and goals for the upcoming year. This part of the “end-year meeting” sets the tone for the year ahead, helping everyone understand the company’s direction. It includes plans for growth, areas of focus, key projects, and any strategic shifts in operations. Collaborative goal-setting during the annual planning meeting agenda helps ensure all team members are aligned with and invested in the company’s future.

We can help!

At ZenBusiness, we provide robust support to get your business started and help ensure it runs smoothly. From compliance services to business tools, we make running your business easier so you can focus on growth.

Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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IRS Phone Number: What to Know Before Calling

Navigating the world of taxes can be daunting, especially when you’re a business owner. If you find yourself needing to contact the IRS, it’s essential to be prepared and understand the process. In this article, we’ll explore what you need to know before dialing the IRS phone number for business.

We’ll cover the main contact number, the best times to call, answers available on the IRS website, reasons to call, how to prepare for your call, and the benefits of using a tax professional.

How do I call the IRS?

The main business number for the Internal Revenue Service is 800-829-4933. When calling, it’s helpful to have your tax identification number (such as an employer identification number or Social Security number) ready. Additionally, note down any specific questions or concerns you have to ensure a productive conversation. In addition to the main business number, the IRS has specific phone numbers for various purposes, such as tax return assistance, tax payment inquiries, and more.

Best Times to Call

The IRS business line is available on weekdays from 7:00 a.m. to 7:00 p.m. (taxpayer local time). It’s important to note that certain times of the year, like tax season, can be extremely busy. To avoid long wait times, try calling early in the morning or later in the afternoon. Mondays and Tuesdays are typically busier, so if your inquiry can wait, consider calling later in the week for shorter wait times.

Answers Found on the IRS Website

Before picking up the phone, it’s worth exploring the IRS website for commonly asked questions for small business taxes. Many issues can be resolved without the need to speak with a representative. The website offers valuable resources, such as tax forms, publications, FAQs, and interactive tools. You might find answers regarding tax deadlines, eligibility for credits and deductions, or guidance on completing specific forms.

Reasons to Call the IRS

While the website provides a wealth of information, there are situations where speaking directly with an IRS representative is necessary. Some common reasons to call include being audited, discussing payment plans or options, requesting a status update on your tax return, reporting tax-related fraud, or seeking clarification on specific tax matters. 

How to Prepare for Your Call with the IRS

To make your conversation with the IRS more efficient, gather any relevant documentation before calling. This might include your tax return, W-2 forms, correspondence received from the IRS, and any supporting documents related to your inquiry. Having these materials on hand will allow you to reference specific information during the call, making it easier for the representative to assist you.

Using a Tax Professional

If the thought of calling the IRS seems overwhelming, you have the option to enlist the help of a tax professional. Certified Public Accountants (CPAs) and other tax professionals are well-versed in navigating the complexities of tax regulations and can call the IRS on your behalf. They can provide expert advice, handle correspondence with the IRS, and represent you in case of an audit of your return. Utilizing a tax professional can alleviate the stress and help ensure that your tax-related matters are handled accurately and efficiently.

We can help!

At ZenBusiness, we understand the challenges of running a business. Our platform offers a range of services to support you on your entrepreneurial journey. Our Money app helps you manage your finances, making tax time less daunting. We can even help you start a new LLC, get an EIN, and more. Let us take care of the administrative tasks, so you can focus on what you do best — building your business.

Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

FAQs

When should I call the IRS business line? 

It’s best to call the IRS business line early in the morning or later in the afternoon to avoid long wait times, especially during busy periods like tax season. Mondays and Tuesdays tend to be busier, so calling later in the week can result in shorter wait times.

How do I speak to a person at the IRS about business taxes? 

To speak to a person at the IRS about business taxes, you can call the main business number provided by the IRS. Have your tax identification number ready, such as an employer identification number (EIN) or Social Security number, and be prepared with specific questions or concerns related to your business taxes.

What do I need to know before calling the IRS? 

Before calling the IRS, it helps to explore the IRS website for answers to common questions. Many issues can be resolved online without the need to speak to a representative. However, if you need to call, gather relevant documentation beforehand, such as your tax return, W-2 forms, and any correspondence from the IRS. This will help you provide specific information during the call and make the conversation more efficient.

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Insurance Guide: Health Savings Accounts (HSA) for the Self-Employed

For the self-employed, healthcare is a paradox: when you’re paying for insurance out of pocket, even basic coverage can sometimes cost you an arm and a leg; on the other hand, if you stupidly forgo insurance, then you run the risk of actually losing an arm and a leg.

The good news is that, if you’re self-employed, there are several ways to ease the strain of healthcare costs. The first and best plan is to shop around.

Beyond that, you may also want to consider setting up a Health Savings Account (HSA). HSAs are tax-advantaged medical savings accounts available to individuals enrolled in low-premium, high-deductible insurance plans. An HSA allows you to contribute pre-tax income to an account earmarked by the government for out-of-pocket healthcare contributions.

Exempt Interest and Earnings

In addition to not paying tax on your contributions to an HSA, any interest or earnings that accumulate in the account are also exempt, and unlike a Flexible Spending Account (another common tax-advantaged account), HSA funds accumulate year to year if they are not spent. 

Furthermore, provided that you use the money for health-related expenses such as premiums and direct care, you pay no taxes at the time of withdrawal. In other words: an HSA is a kind of targeted tax shelter. By making regular contributions, eligible solopreneurs can slash their tax bill and protect their physical well-being.

A self-employed individual, entrepreneur, or freelancer — meaning a contributor whose plan covers only one person — can invest up to $3,850 per year, as of 2023. This means that a motivated solopreneur in good health can amass a large sum of money in a fairly short amount of time.

And the funds in an HSA can be managed in much the same way as the money in an IRA — you can establish the account through a bank, an insurance company, or a brokerage firm — although typically contributions are invested in relatively stable mutual funds. After all, the point isn’t to get rich; it’s to have a strong net ready in the event that you take a tumble.

Okay, so what’s the catch?

First things first: Not everyone is eligible for an HSA. In order to qualify, you must be enrolled in a low-premium, high-deductible insurance plan. For an individual, the minimum qualifying deductible is $1,400; for a family plan, $2,800. And remember that contribution cap? Well, your personal annual contribution is tied directly to your plan’s deductible.

If your deductible is only $1,500, then that represents your maximum yearly investment. Also, having a Health Savings Account alone is considered a break in coverage. Should you allow your primary care plan to lapse, you are at risk of being denied coverage for a pre-existing condition in the future.

Like any form of insurance, the purpose of an HSA is to protect you from excessive risk. There is, of course, no way to know if you will ever need a large sum of money for medical expenses, but one thing is for sure: your health is the most precious asset that you have. Without it, you can’t run your business and you can’t earn income.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

Insurance Resources

• Business Insurance

• When Self-Employed, What Insurance Do You Really Need?

• LLC Insurance Cost

• Disability Insurance for the Self-Employed

• What is Income Protection Insurance?

• Why Term Life Insurance is a Great Idea for the Self-Employed

• Importance of Filing an Insurance Claim

• How To Choose the Best Small Business Health Insurance Plan

• Does Every Business Need Insurance?

• What Kind of Business Insurance Do You Really Need?

• E & O Insurance for Independent Contractors, Freelancers and Entrepreneurs

• Do I Need Workers Comp Insurance If I'm Self-Employed?

• Does Your Home Business Need Insurance?

• Necessary Steps to Switching Life Insurance

• Life Insurance for Small Business Owners

• Do You Need Disability Insurance?

• Liability Insurance for the Self-Employed

• Best Small Business Insurance Providers Reviewed

• Do You Need Special Insurance For Your Home Office?

• How Freelancers Also Benefit From Insurance

• What Type of Insurance Does Your Business Need?

• Types of Business Insurance That Your Startup Might Need

• Health Savings Account (HSA) for the Self-Employed

• Insider's Guide To Insurance in the Gig Economy

• Small Business Insurance

• Insurance for Independent Contractors

• Steps to Take After a Construction Site Injury

Show All

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Questions to Ask a Lawyer When Starting a Business

Starting a business can be an exciting but challenging journey. As you embark on this new venture, it’s important to have a solid legal foundation to protect yourself and your business. To navigate the legal complexities of entrepreneurship, it’s wise to consult with a knowledgeable business lawyer who can provide valuable guidance. In this article, we’ll discuss the key questions to ask a lawyer when starting a business, helping ensure you have the necessary information to make informed decisions and set yourself up for success.

Legal Questions to Ask When Starting a Business

Not sure what questions to ask? Here are a few ideas.

What business entity should I choose?

Selecting the right business entity is a critical decision. A lawyer can help you understand the pros and cons of various entity types, such as sole proprietorship, partnership, limited liability company (LLC), or corporation. They can guide you in considering factors like liability protection, taxation, management structure, and compliance requirements.

How do I protect my personal assets?

One of the main reasons entrepreneurs choose to form a business entity is to protect their personal assets. A lawyer can explain the risks associated with operating as a sole proprietor and the benefits of limited liability offered by registered entities like LLCs and corporations. They can also clarify the limitations of liability protections, ensuring you understand the steps necessary to safeguard your personal assets.

How do I choose my business name?

Selecting the right business name is crucial for branding and legal purposes. A lawyer can assist you in conducting a thorough name search to ensure your chosen name is available and doesn’t infringe on any existing trademarks. They can guide you through the registration process, helping you secure your business name legally.

How do I protect my intellectual property?

Intellectual property (IP) includes trademarks, copyrights, and patents that safeguard your unique ideas, designs, or products. An experienced lawyer can help you identify the IP assets your business possesses and guide you through the process of registering and protecting them. They can also advise on enforcing your IP rights if infringements occur.

What should I include in my LLC operating agreement or corporate bylaws?

Operating agreements (for LLCs) or corporate bylaws (for corporations) are crucial internal documents that establish the rules and regulations governing your business. A lawyer can help you draft these documents, ensuring they address important areas such as ownership rights, decision-making processes, profit distribution, and dispute resolution.

What are the risks of taking on investors?

If you’re considering raising capital through investors, it’s essential to understand the legal implications and potential risks involved. A lawyer can explain the various options for fundraising, such as equity financing or loans, and guide you through the process, including drafting agreements and complying with securities regulations.

What are the legal issues surrounding employees and independent contractors?

Hiring employees or working with independent contractors brings legal responsibilities. A lawyer can help you understand the legal distinctions between employees and contractors, ensuring you comply with labor laws, tax obligations, and non-disclosure agreements. They can also guide you through creating employment contracts and implementing proper HR policies.

What business licenses and permits do I need?

Depending on your industry and location, certain licenses and permits may be required to operate legally. A lawyer can assist you in identifying the specific licenses and permits relevant to your business and guide you through the application process, ensuring you meet all the necessary requirements.

Do I need any legal contracts for my business?

Having well-drafted contracts is essential for any business. A lawyer can help you create legally binding contracts tailored to your specific needs, whether it’s client agreements, vendor contracts, or partnership agreements. They can ensure your contracts protect your interests and minimize potential disputes.

How do I stay in compliance with the law?

Compliance with federal, state, and local laws is crucial for the ongoing operation of your business. A lawyer can help you understand the legal obligations, deadlines, and reporting requirements relevant to your industry. They can also provide guidance on maintaining proper records, filing taxes, and staying compliant with changing regulations.

What business records do I need to keep?

Maintaining accurate business records is essential for legal and financial purposes. A lawyer can advise you on the specific records you need to keep, such as financial statements, tax records, contracts, employment records, and minutes of meetings. They can help you establish good record-keeping practices from the start.

What insurance should I get for the business?

Insurance is a vital aspect of managing risk in any business. A lawyer can guide you in assessing the appropriate insurance coverage for your specific industry and circumstances. They can help you understand the types of insurance available, such as general liability, professional liability, or workers’ compensation, and recommend the coverage that best protects your business.

We can help!

At ZenBusiness, we understand the challenges of starting and running a business. Our platform provides support at every step, from LLC formation services to customizable operating agreement templates. With our expert guidance and tools, you can start your business on the right foot. Focus on your business while we handle the red tape. Start your entrepreneurial journey with ZenBusiness today!

Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

FAQs

What are good questions to ask when starting a business?

When starting a business, it’s important to ask key questions to ensure a solid legal foundation. For example, you might ask what business structure you should start, how to register your business, how to set up your tax accounts, and more. Asking these questions and getting any legal guidance you need can help set your business on the right path.

What questions should I ask a startup lawyer?

It all depends on your legal situation. But some good questions to ask a startup lawyer may include discussing the most suitable business structure, protecting personal assets from liabilities, establishing the necessary legal documents for operation, and safeguarding intellectual property rights.

You’ll also want to understand employment and contractor legalities, compliance with industry-specific regulations, getting licenses and permits, how to negotiate contracts, and anticipating potential legal risks as the business grows. These discussions can provide valuable insights and help navigate the legal complexities of starting a business, ultimately setting the stage for success.

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How to Market Your Business with Email

Email marketing is one of the best ways to reach your customers. Not only is it more effective than some marketing methods, but it’s also less expensive. Here’s how you can successfully use email marketing to reach prospects and customers.

The results are in, and an old favorite that was largely written off by small business owners is the clear winner. If you want to reach your customers, put a lot of time and effort into email marketing.

According to a recent study by McKinsey, reaching people through email is 40 times more effective than Twitter and Facebook combined!

You read that right — 40 times!

If you follow digital marketing trends, you know that social media has mightily replaced email as the most talked-about means of reaching customers. Proponents tout the fact that you can target ads to certain demographics with unprecedented accuracy. Do you want to reach mothers with an upper middle class income who have a child who recently started driving? You can do that through social media advertising.

But what the proponents fail to mention is that you can’t get much more targeted than email because everybody on your list (if it’s a list obtained legitimately) are people who gave you permission to market to them. They’re interested in what you have to say or they wouldn’t have signed up for your email list.

There’s also the fact that checking email is the first thing most of us do every day when we wake up. According to statistics, 99 percent of customers check their e-mail at least once per day. Considering there are more than 4 billion existing email accounts, that’s a lot of people.

The stats get even better. According to the Litmus 2021 State of Email report, email resulted in an estimated $8.49 billion in sales in 2021. Another report has shown that 74 percent of customers prefer to receive marketing messages through email and nearly half of emails are read on mobile devices. Finally, 60 percent of consumers say they’ve made a purchase because of an email they’ve received.

Convinced yet? If you aren’t using email as a marketing tool, you could be failing to tap into the single best online vehicle your business could have for producing revenue.

The Glaring Problem

Of course, there’s a problem. You have to build your email list. When digital marketing was in its infancy, business owners purchased email lists much like they did a physical mailing list.

Although you could still do it today, you can’t do it legally. Anti-spam laws require that everybody on your email list opt-in, meaning that before they receive an email from your company, they have to accept your invitation.

Even if you could buy a list legally, you won’t see good results. Popular email marketing platform Survey Monkey compiled historical data from the days when purchased email lists were popular. It found that open rates were terrible. In fact, it was so bad that people wouldn’t even open the email to unsubscribe.

How to Build a List the Right Way

If you can’t purchase a list of leads, what can you do? You can double back to the often-talked-about advertising platform of the cool kids, Facebook.

Facebook has an ad type that helps you to drive traffic to your website. Would you pay a shiny dime (or less) for somebody to join your email list? Statistics show that for every dollar spent on email marketing, business owners will see a $36 return. A dime is pennies compared to the potential return you could see from your email list.

This is where good targeting on Facebook comes into play. If your business caters to moms, it’s probably not worth your time or money to market to males. If you’re in the sporting goods business, target people who are interested in sports. Sound pretty simple? It is, because Facebook makes it easy. Twitter has an advertising platform, too. If you’re more comfortable with Twitter, give it a try.

But before you send them to your website, you need something to give them — for free. A report, an e-book, a coupon, or something else that people would find valuable in exchange for allowing you the privilege of sending them email.

The Contents of the Email

Now that you have them on your list, the email you send needs to be top-notch. Here are a few pointers.

1.) Make the subject epic. They won’t read your email unless they’re hooked by your subject. Make it fantastic and try various headlines to see which one converts the best.

2.) Make it personal. Email software allows you to use the person’s name in the email. Using their name makes it personal — like the email was sent directly to them. Conversions are higher when the email is personal.

3.) Make it social. Link back to your social media accounts. Just as you’re using social media to advertise your email list, use your email list to advertise your social media.

4.) Make it mobile. If your customer can’t read your email on their mobile device, expect your open rates to be lower than you wanted. More than half of your customers read their email on a mobile device, remember?

5.) Make it concise. Tell them why they will benefit from responding to your email, support your claim, and ask for the sale. Don’t make it wordy.

Bottom Line

Nobody is saying to abandon social media. Use e-mail and social media to support each other but don’t forget about e-mail.

It’s seen as the dinosaur of the digital marketing world, but it’s in no danger of dying off. Email is here to stay and rightfully so. Your best results can come from your email list.

Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Tips for Creating Your Unique Selling Proposition

“USP” stands for unique selling proposition, a term coined by famous ad man Rosser Reeves. A USP is that one unique, identifiable difference that sets your business apart from everyone else. What is distinct about your business, why is that important, and what does that mean to potential customers? That is what is supposed to be contained in your USP.

If you think about those businesses that have a very identifiable USP, you’ll notice that it is, in fact, a large part of their success. The USP is a reason for consumers to frequent a business, a catchphrase, and a distinctive hook for the business to hang their hat on, all rolled into one:

• “You’re in good hands with Allstate”
• “Avis: We Try Harder”
• “Federal Express: When it absolutely, positively has to be there overnight.”

Interestingly (surprisingly, even) most small businesses don’t have a USP. They’re just out there, doing their thing, selling their stuff, and never really distinguishing themselves in the marketplace. Maybe they succeed or maybe they don’t. But if they do, it might be because they have a good location, or the owner has some great contacts, or some other factor, but often it’s not because they offer something unique and distinct to the consumer.

That’s a shame, because in this overly-crowded marketplace, without offering potential customers something different and distinctive, without letting them know you can solve their problem, you will fail to stand out, and if you don’t stand out, success is very hard to come by.

You begin to create a USP by looking at the market and finding a need that either you successfully fulfill already, or which is unfilled but can be fulfilled by your business. What needy niche can you stake claim to? Can you be the “All-Night Donut Shop” or the “Rock-Bottom Price Car Stereo Store”?

To create a dynamite USP, consider these questions:

• What characteristics of your business are unique?
• Of these, which are most important to your customers and potential customers?
• What gaps are there in the marketplace that your business is uniquely qualified to fill?
• Of all of these, which can be most easily communicated?

Once you’ve decided which traits make your business unique and what the market is looking for, boil the idea down to a paragraph or two. This won’t be easy, but that’s ok. Write it and rewrite it. Edit, edit, edit. Take the idea down to its core. If you can’t state what it is about your business that is unique and different, how do you expect your customers to ever know it? To be truly effective, your USP must create value in the mind of customers.

Think about FedEx again. Its USP combines what it does with what customers needed. That’s the gold standard.

What you’re looking for is a unique selling proposition that a customer can immediately grasp, understand, and appreciate. If you can boil it down to a single sentence, that’s even better. Then, if you want to be like the great businesses, you’ll begin to build all future marketing and advertising efforts around this core idea, you’ll teach it to your employees, and you’ll all begin to live it.

If you see that there’s a need for a discount wedding photographer in your area, and that’s something you can and want to do, your USP might be “If you find a cheaper wedding photographer in Springfield, I will shoot your wedding for free!” If there’s a need for an office furniture superstore, your USP might be, “Largest selection of office furniture in Springfield. Guaranteed.”

By re-focusing your business on your USP, you can inject it with new life and energy. You know what the customer wants, and you’ve positioned yourself to uniquely fill that need. You won’t appeal to everyone, but to those that need what your USP offers, you should appear indispensable.

Indispensable — It has a nice ring, doesn’t it?

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How to Craft a Passionate and Impression-Leaving Elevator Pitch

Elevator pitches are important, no matter what your business. If you haven’t heard the term before an elevator pitch is business lingo for a proposal that can be explained in a short length of time, say 30 seconds or so.

Elevator Pitch: A Real-World Example

The need for a good one was driven home to me just last week. I do a lot of public speaking on business issues, and I was talking to another speaker when he asked what it is I talk about. “Small business success,” I replied.

“Hmmm…,” he said curiously and quietly in response.

“What do you talk about?” I finally asked. He said something like “I speak to organizations that want to energize and excite their employees, get them working together, help them understand their core values, and allow them to realize what it means to be a team. I leave them invigorated, committed, and wanting more, and I usually get a standing ovation.”

Given our respective two answers, whom would you hire if you were planning an event and needed a speaker? I know the answer, and it wasn’t me. So ever since that illuminating encounter, I have been working on my elevator pitch.

A good elevator pitch can lead to new opportunities

I think it’s a good exercise for anyone who reads this website. As self-employed individuals, we are always asked what it is we do. Having a quick, interesting, powerful answer may lead to opportunities that we didn’t even know existed. As they say, you only have one chance to make a good first impression.

How to Create the Perfect Elevator Pitch

Ideally, what you want is a pitch that will spark someone’s interest and have him or her saying, “Tell me more.” Here then are a few questions you must answer if you are to create a great elevator pitch:

What is the problem you’re trying to solve? 

Every great business solves a problem for someone. Why do you go to the local store to buy some bread? Because you have a need for bread and the store solves it. What problem does your business solve?

Can you keep it simple? 

One problem some people have when they first start their pitch is that they think the whole world understands the buzzwords in their field. They don’t. Use plain English.

I’m reminded of the story about the tech entrepreneur whose product protected digital signals. His original elevator pitch was something like, “We utilize the latest 20-50 key exchange using Duffle transponders… blah blah blah.” After getting some help, he ended up with, “We safeguard communications.”

Why would people want to know more? 

What I’m asking you to do is to think about your business in a different way. Instead of saying, for instance, “I’m a graphic artist,” you might start with, “I help people get more business by drawing their dreams.”

Does it accelerate your heart rate? 

A great pitch is a passionate pitch. If you sound bored, they’ll be bored. If you’re excited, they will be, too.

Here’s your basic pitch: “Hi. I’m David Davis, president of Med Corp. We publish medical books.” Here is an elevator pitch: “Hi, David Davis, president of Med Corp. We publish books, newsletters, and video programs intended to help doctors and other medical professionals become more successful. Our best-selling title, How to Become the Leader in Your Specialty, was named the book of the year by the Medical Journal.”

So your elevator pitch must be intriguing, make sense, be short and powerful, and should motivate someone into wanting to learn more.

Steve Strauss is a senior small business columnist at USA TODAY and author of 15 books, including The Small Business Bible.

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Using an NDA for a Business Plan

When it comes to starting a business, confidentiality is crucial. You want to ensure that your innovative ideas and plans remain secure. This is where a Non-Disclosure Agreement (NDA), also known as a confidentiality agreement, plays a vital role. In this article, we’ll explore the importance of using an NDA for your business plan and provide step-by-step guidance on creating an effective NDA. 

What is an NDA?

A Non-Disclosure Agreement (NDA) is a legal contract that establishes confidentiality between the parties involved. It helps ensure that sensitive information shared during business discussions remains private and can’t be disclosed to others without explicit permission. Essentially, an NDA safeguards crucial aspects of your business plan: your business ideas, trade secrets, and other proprietary information.

Why would I use an NDA with my business plan?

Including an NDA with your business plan provides an added layer of protection. When presenting your plan to potential investors or partners, an NDA helps prevent them from using or sharing your confidential information without your consent. This helps safeguard your unique concepts, market strategies, financial projections, or any other valuable elements of your business plan that give you a competitive edge.

What do I include in an NDA?

When creating an NDA, there are essential elements to consider. While some businesses may require additional clauses, let’s cover some of the key components to include.

• Definition of confidential information: Clearly define what information is considered confidential and subject to the agreement.
• Participants to the agreement: Identify the parties involved in the NDA, such as your business and the individual or organization receiving the confidential information.
• Third parties: State that the NDA also applies to anyone the receiver shares the information with. This ensures that the confidentiality extends to any additional parties involved.
• Jurisdiction: Specify under what state laws the NDA will be governed.
• Length of agreement: Determine the duration for which the NDA remains in effect. It can be a specific timeframe or extend indefinitely, depending on your requirements.
• Ownership of the information: Clarify that sharing the information does not grant ownership rights to the recipient. This ensures that your business retains control and ownership of its intellectual property.
• End of the relationship: Include provisions that stipulate what happens to the shared information if the business relationship ends. Specify whether the information should be returned or destroyed.
• Signatures: Ensure that all parties involved sign the NDA to acknowledge their agreement to its terms and conditions. Signing on the dotted line is a crucial part of any contract.

Creating a Successful NDA

There are a few strategies you can follow to create a successful non-disclosure agreement. For starters, make sure you’re clearly defining what information is confidential and precisely identifying the parties involved. Some types of businesses — especially those in competitive, innovation-driven industries — should also include non-compete and non-solicitation in their NDAs. These clauses will help protect your business, your intellectual property, and your employees and clients.

If you’re feeling overwhelmed at the prospect of creating an NDA, you can enlist an attorney’s help. A lawyer can help you draft the exact agreement your business needs. Alternatively, you can use a reliable template like ours so you can create a successful agreement without starting from scratch. Whatever strategy you take, be sure to update your NDA periodically to ensure it’s still meeting your needs. 

We can help!

At ZenBusiness, we understand the importance of starting your business off on the right foot with as much legal protection as you can. That’s why we offer our business documents service, giving you access to a wealth of templates for any business, including confidentiality agreements, non-compete agreements, and more.

We also offer other services, including our $0 LLC formation service, registered agent service, and more. Whatever your needs are, we’re here to support you as a trusted partner throughout your business journey.

Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

FAQs About Using an NDA for Business Plan

Can you use an NDA for an idea?

Yes, an NDA can be used to protect your business idea. By having parties sign an NDA, you can establish a legal agreement that prevents them from disclosing or using your idea without your permission. This helps maintain the confidentiality of your innovative concepts and prevents others from potentially capitalizing on your idea before you have the chance to develop it further.

What can an NDA not be used for?

While an NDA is a powerful tool for safeguarding confidential information, it can’t protect information that is already publicly available or commonly known. It also can’t prevent someone from independently developing a similar idea or invention without using your confidential information. Additionally, an NDA can’t protect against unauthorized disclosure by someone who is not a party to the agreement. It’s important to understand the limitations of an NDA and seek legal advice when necessary to ensure proper protection of your rights.

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Should You Hire an Employee or an Independent Contractor?

When you own a small business, hopefully, there comes a time when you grow enough that you are at the point where you need to begin to think about hiring help. That then begs the question:

Should you hire an employee or an independent contractor?

How do you know if you’re ready to hire? Look at how you use your time. As Michael E. Gerber pointed out in The E Myth, as your company begins to grow, if you find yourself spending more time working in your business than working on your business, then you need to start looking for help.

Yes, you love the work you do, but in order for your company to thrive, you need to focus on the big picture. An employee or an independent contractor can do the job, but only you can run the business.

The Difference Between Contractors and Employees

Is your business ready for a full-time employee? Can you trust an independent contractor? As you know, contractors are in business for themselves, they file a 1099 with the IRS, and they’re not subject to many of the laws designed to protect full- and part-time employees: contractors cannot claim overtime, they typically receive no benefits, and they legally can be paid less than the federal minimum wage.

So, is the difference between contractors and employees essentially a tax distinction? Absolutely not. Your workers, whether they are independent contractors or employees, will dramatically affect the culture of your business. That means you want to keep your business plan in mind as you prepare to take on staffers; knowing what your business needs, and what you may need further down the line, will help you navigate this difficult decision.

Contractors: Pros and Cons

Generally, hiring a contractor will cost you less, and require much less effort, than hiring a full-time employee. Contractors are responsible for filing independently with the IRS, so you will not need to pay the employer’s share of Social Security or Medicare taxes, and you won’t need to contribute to state and federal unemployment funds, either.

Additionally, by avoiding the costs associated with payroll, benefits, and expenses, working with contractors will help to keep your overhead as low as possible.

If your business is affected by periodic swings in revenue (a holiday sales rush, for example), then contractors can give the flexibility to meet new opportunities as they arise. This allows you to adjust your cost structure project-to-project. The last thing you want is to be paying an employee (and not just wages, but benefits, taxes and insurance), when there isn’t work to do.

And now the bad news. By hiring a contractor, you relinquish some measure of control over both the process and the finished product. And part of what makes a contractor independent is his or her ability to select and manage projects. Contractors can turn down contracts. And depending on the assignment and the current state of the market, they can negotiate a salary that may be two or three times higher than the hourly wage of an employee.

Employees: Pros and Cons

We’ve already touched on some of the costs associated with hiring employees. Keep in mind that you will also need to train and manage an employee. Ideally, your employee will be a self-starter, someone who can manage their own tasks without relying on your feedback, but if your new employee needs assistance, then you may find yourself spending more time on their work than your own.

But your employee is an investment. Yes, your time and energy is precious, that’s precisely why you’ve hired an full-time employee: in the long run, the time you time and money you will save by retaining a loyal, competent employee will pay dividends and then some.

And an employee can be trained to do, well, anything. More importantly, they can be trained to do several somethings at once. Being able to assign multiple administrative tasks to an employee can improve your work flow and free you up to focus on organizing projects, keeping up with contacts, and bringing in new business.

Disclaimer: The content on this page is for informational purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

Contractor Resources

• How to Pay Independent Contracts with a 1099 Form

• Independent Contractor Agreements

• How to Hire Independent Contractors

• When Is It Time To Hire A Team Of Employees Or Contractors?

• Independent Contractor vs LLC

• Independent Contractor Definition

• Contract Management Software

• Finding, Hiring, and Working With Contractors for Your Business

• When Is A Verbal Contract Enforceable (And Not)?

• 4 Apps For Contractors And Remodelers

• Should You Hire an Employee or an Independent Contractor?

• Stand Out In An Interview As An Independent Contractor

Show All

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