How This Physicist Is Challenging the Birth Control Industry
“One should always consider: ‘What is the worst that could happen, and how likely is that?’”
Elina Berglund isn’t your typical company cofounder. Originally a particle physicist, Elina was unimpressed with the birth control options offered to women, so she went about creating her own. Today, she is the CTO and cofounder of Natural Cycles, the only FDA approved digital birth control.
Below, Elina shares how she created Natural Cycles, how she transitioned from physics to business, and the best advice she’s ever been given.
What whitespace did you see in the birth control industry, and how did you go about filling it?
Natural Cycles came out of a personal need of an effective, easy-to-use, hormone free birth control method. When I did not find such a product on the market, I started reading up on the scientific literature on how the basal body temperature can indicate when you ovulate and hence when you are fertile and not. Using my knowledge from particle physics (I was currently working at CERN on what would lead to the Higgs discovery in 2012), I started crafting an algorithm that gives a green day if there is no risk of fertility that day and a red day if one needs to use protection in order to prevent pregnancy.
Not long after I realized what a huge unmet need this is among women worldwide for such a hormone free birth control option and that many women don’t use any birth control at all, or very non-effective methods such as the rhythm method, since they haven’t found a method that suits them.
How does Natural Cycles work? What sets it apart from other birth control options?
Natural Cycles comes in the form of an app and a basal thermometer. The user measures her temperature in her mouth when she wakes up in the morning and enters it into the app. Then, the algorithm is run in the background and returns a red day if she needs to use protection that day or a green day if she definitely is not fertile that day.
Natural Cycles is the only FDA cleared, digital birth control method. The method has been shown repeatedly in several studies published in peer reviewed journals to be 93% effective under typical use and 98% effective under perfect use (which is when the user does use protection when the app gives red days).
Natural Cycles fills the void in the family of birth control methods for women who are looking for an effective and non-invasive hormone free method. It also has the additional benefit of being able to be used for planning a pregnancy. As our average user is 30 years old, we often see women first use the app to prevent pregnancy for a few years, until they are ready for the next step and then they on average get pregnant quite quickly as they’ve by now really learned how their unique cycle and body works.
Why was it important for you to create Natural Cycles?
I think it is really important to provide women with different types of birth control options as there is no one size fits all when it comes to birth control, as different women have different needs and which also often changes throughout the reproductive lifetime.
Then, I also feel that women’s health is an under-researched and under-developed area in general, and I’m happy to make a contribution by developing the first FDA cleared birth control app, but hope to contribute even more in the future.
Your background is in physics, and you even worked on a project that received a Nobel Prize. How did you make the shift from physics into business and the tech industry?
Yes, in some sense it is very different but in another sense very similar. I still work with data and research and use programming and advanced statistics as the main tools, just with a different purpose. Then on the other hand, the business and the tech world is quite different from the world of physics and academia, so I do think I’ve learned quite a lot in the last years by changing paths.
You cofounded Natural Cycles with your husband. What has it been like being married to your business partner?
Yes, I did! I think it has mainly been a source of strength as we are almost always very aligned, and it is amazing to be able to share such a passion, which Natural Cycles is to both us. There are of course a few down sides as well, for instance it is really hard to stop talking about work in the late evening when it would probably be better for us to think about something more relaxing.
“One should always consider: ‘What is the worst that could happen, and how likely is that?’”
What is the best advice you’ve ever been given? What’s the best piece of advice you have to share?
My dad often said that “People too often let fear control their lives.” I think he is right in the sense that we often take decisions based on a too risk-averse profile, especially women.
One should always consider: “What is the worst that could happen, and how likely is that?” This is what I thought about when giving up my career in physics and not having a salary for a while when creating Natural Cycles. I thought that I had enough savings to get by for a while and hence the worst case that can happen is that Natural Cycles does not take off, but I’ve then still learned about how to develop an app, and I might end up getting a job at Google instead.
How do you hope female contraception will evolve in the future? Where do you see the industry going?
Well, I hope there will also be more options for male contraception, although I think it’s unfortunately unlikely in the nearer future.
I hope female contraception will also keep evolving, of course, but I think there is an increased need for more solutions driven by the tech industry to compensate for that the pharmaceutical industry unfortunately has cut back funding in this area.
Here in the United States, female sexuality is still pretty taboo. How do you see your company combating that stigma?
We do try to spread knowledge more generally about birth control, female sexuality, and how the women’s reproductive system works. We’ve seen that unfortunately there is a big education gap when it comes to these topics. We are trying to address that, and we do see a huge interest from our users’ side in understanding their bodies better and everything around it, which is exciting.
You have a daughter, what are the biggest lessons you hope to teach her?
Oh, so many things of course! Just like I was at her age (she is 4), she is already curious about so many things about how nature and the universe works. I am trying to spark more of that interest by answering all her questions and discussing with her.
What’s next for you? What’s next for Natural Cycles?
We’ve moved to NYC last fall, following the FDA clearance to build up a team here as we believe that the US market is and will be very important to us going forward. It’s very exciting to be here and learn about what kind of user is ideal for us here and how to best reach her.
We are also expecting a little baby brother next week, so that’s of course quite a big thing for us :)
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Tough Stuff: How to Do an Annual Performance Review
Feedback is your friend.
At C&C, we know being a woman in business isn’t always sunshine and rainbows. That’s why we’re starting a new monthly series called Tough Stuff , where we talk about some of the less glamorous parts of having a killer career. Below, we’re sharing how performance reviews—scary and annoying as they might be—are crucial to a healthy work environment.
In a world of instant gratification, double tapping, and asking Siri for the answers to your burning questions, the concept of an annual performance review is pretty much as “over” as MySpace. Would you wait a calendar year before telling your surgeon they botched a recent procedure? Or a year to complain about bad service in a restaurant? Of course not.
And yet, the most common complaint I hear from entrepreneurs is that they just don’t have time for performance reviews. Sigh...if only they could press the “like” button and move on. Effective evaluations consist of real-time feedback that engage employees and produce better results. Similarly, if an employee isn’t performing to your standards, effective communication can help build a disciplinary file that will please your lawyer in the event they have to defend a future claim.
When clients tell me that formal, scheduled performance reviews are as realistic as the tooth fairy, I offer the following advice:
Make Feedback Part of the Culture, From the Top Down
Communication about performance expectations should begin when you hire an employee and should continue regularly. Your employees will perform best if you articulate what you want from them and give them guidance on how to get there.
When hiring managers, let them know that communication and feedback is one of your priorities. Encourage your managers to understand the value and importance of feedback to your company’s culture and improving employee output. Invest in training resources at the outset of employment in order to best achieve a trickle-down effect. Training can take the form of internal dialogue or bringing in a resource to coach your management team. Once they are trained, ensure that managers know they will be reviewed on the timeliness and quality of their feedback.
Create a For(u)m for Feedback
Ideally, feedback should be given in the moment, so an employee has the opportunity to correct or improve the behavior or work product. The easiest way to accomplish this is by email or via other digital forms. This serves both the purpose of feedback and creating a record, which can come in handy if disciplinary measures are needed—more on that later.
There are numerous performance feedback apps that allow self-reflection, managerial, peer, or even customer feedback. Alternatively, companies can develop an internal email template or intranet form so that all feedback touches on the same designated criteria. This cultivates a more objective and systematic approach to evaluations.
Define Success
Feedback is best given with measurable goals, whether individual or team-based. For example, you might define success by an on-time or on-budget delivery. If effective performance isn’t calculable by objective measures, create company values that the employee must be successful in and define tasks that exemplify those values. If “customer satisfaction” is a company priority, then timely resolution of customer complaints or high customer satisfaction ratings might be task-oriented successes. If your metrics aren’t being met, the employee needs to know that. And managers need to know that it’s part of their job to help workers perform at their highest level, which they can’t do without letting people know where they can improve. The performance feedback forum should double as a performance improvement plan, designed for disciplinary or coaching purposes.
When You’ve Tried Everything
What happens if an employee just isn’t getting “it,” and the feedback process needs to move to a more formal disciplinary process or termination? The time spent documenting performance deficiencies can help decrease liability when done properly. More frequently though, I get calls from clients lamenting about a terrible employee they need to fire (always immediately!), and when I ask to see the file, they send over a pile of glowing performance reviews. This undermines the reason for the termination (lack of performance) and makes the employee think they are being let go for a more sinister (or illegal) reason. To minimize risk and maximize performance, be honest, be timely, and be your employees’ best role model to success.
Sahara Pynes is an attorney at Fox Rothschild LLP whose practices focuses almost exclusively on minimizing liability against lawsuits through preventative counseling on a range of employment issues. She works directly with business owners and their management teams to enhance company culture and provide practical strategies to manage human resources and risks. Sahara was named one of Angeleno Magazine’s Most Dynamic Women of 2018. If you’re a business owner who doesn’t know what forms to give a new hire, how to properly classify and pay employees/contractors or just wants to button up their HR issues, reach out to Sahara at SPynes@Foxrothschild.com to see if she can help.
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Professional Opinion: The Business of Breaking Up a Partnership
Breaking up with a business partner can be one of the most painful breakups you'll ever go through—and it comes with a price tag. Here, survival tips from someone who's been there and lived to tell.
*Written anonymously to protect the NOT so innocent.
I remember sitting there, just highlighting, highlighting and highlighting, so many numbers, so many charges, so much money—just gone. When we started the company together, it was thrilling. We were young, ambitious, hungry and starting something with a potential magnitude we didn't know or could even fathom. That’s how a lot of companies start, as an idea, a collaboration. Then all the sudden, you're in it.
The co-founder, business-boss-gal-pals model is popular—see Gilt, Rent the Runway, Birchbox and Proactiv—and it makes sense why. Everyone loves a partner in crime, you can do double the work and have double the fun, and that feeling of not being alone is, well, a good one. Partnering up with a friend can work out amazingly. Or it can not.
Cut to a few years into your business, employees, money and tensions run high, and while you may think your roles are clear as can be, your word means nothing unless it's in writing. Breaking up with a business partner might just be the most painful breakup you can go through—because this one comes with a price tag.
My story is not unique, but when it happened to me it felt like the world was crashing in. It was hard to breathe, difficult to believe that someone I trusted, and even cared about, could be taking money from a company that we had built together from the ground up. My gut had been telling me for months that something wasn't right, but I assumed it was more a personal issue and that no matter what was going on between us, we were both equally invested in the business.
Wrong.
It eventually came to light that not only was my partner not managing our finances, but actually manipulating them. This included racking up unrelated business expenses, disregarding all things tax related, and straight up embezzling money. I was devastated, and what was worse, I had no idea what to do next. I felt ashamed and scared to talk about it—I thought it had to be a reflection on me and how I operated a business. It took me a few years and several conversations to get over it, and through it all, I realized that I wasn't alone. One business partner taking advantage of another happens, and it happens a lot. Partnerships split up and morph all the time and for all kinds of reasons. Being able to step back back and realize something isn't working is a part of being a mature business pro.
Trusting someone is not a flaw but a positive characteristic.
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The hardest—and yet ultimately most helpful—thing for me to accept was that it was NOT my fault. Trusting someone is not a flaw but a positive characteristic. It takes trust to build a business, and had I been skeptical and suspicious from day one, we would have never gotten off the ground. Moving on and away from a partner does not have to mean the end of your business, and often, it will actually turn out to be the beginning of something great.
I hope this never happens to you, but if it does, here are my tips for pulling through, and maybe even coming out on top.
Don’t over react.
When I found out, I wanted to freak out, confront and deal with it head on, but cooler heads prevailed. Take a deep breath, and assess all the details of the situation to 100% ensure you are in the right before initiating a confrontation.
Get your team in place.
I was lucky enough to have an incredible lawyer and forensic finance team that helped shape my case and bring to light things I would have overlooked. Beyond that, they were able to deal with the personal communication that I wasn't emotionally prepared to handle.
Handle clients and employees with care.
The business of breaking it to your employees and clients is extremely crucial. I personally called each client to explain that my partner and I were parting ways. I followed up with an email of how the transition would work and assured them we were ready to take on the challenge. When you do all of this, resist the urge to talk bad about your former partner and keep the details of why you're splitting to a minimum.
Tune out the 'I told you so.'
One of the hardest things was hearing from many friends, family, business contacts and clients who swore that “they saw this coming.” I acknowledged that they meant well, but just tuned it out. Beating myself up wasn't going to help me move forward, and I had to focus on what was right in front of me.
Revise and Renew.
As roles and responsibilities change in your partnership, update your operating agreement. Even when everything is smooth sailing, it is crucial to know who is in charge of what.
Move on and UP.
I was nervous about keeping the same business name and dealing with the "How is so and so?" questions, but it gets easier and YOU get better. When someone asks a question about the past, politely change the subject to something in the future that you're really excited about.
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Money Matters: Daina Trout, CEO of Health-Ade Kombucha
“There is no shame in wanting money. Money gives you freedom to live the life you want.”
You asked for more content around business finances, so we’re delivering! Welcome to the first installment of Money Matters, our newest series dedicated to giving you an inside look at the pocketbooks of some of your favorite CEOs and entrepreneurs. In this series, you’ll learn what successful women in business spend on offices spaces and employee salaries, how they knew it was time to hire someone to manage their finances, and their best advice for talking about money.
Our first Money Matters guest is Daina Trout, CEO and co-founder of Health-Ade Kombucha. Daina is a huge advocate for being forward when talking numbers, so she’s an ideal woman to kick off the series. Below, she shares her financial story.
Where do you think is the most important area for a business owner to focus their financial energy?
First, you want to focus on growth; second, on profitability. On growth: It is very tough to get your company off the ground and to a place of increasing revenues from scratch, and it’s going to take every piece of your being to get it there (so you can’t be distracted by much else). Also, my experience has been that momentum is a real thing. The faster your company grows today, the faster it will grow tomorrow (at least in the beginning). It’s all hands on deck, full pedal-to-the-metal speed.
On profitability: You don’t want to wait too long for this, else you will be constantly raising money and diluting yourself, feeling like you’re in a never-ending rat race. But at the same time, nobody cares about a profitable business that isn’t growing, so you don’t want this to be your first #1 priority (unless you have one of those rare businesses that can do both from the start). You want to be an owner of a company that is growing and tightening at the same time. It’s important to strive for that balance.
“You want to be an owner of a company that is growing and tightening at the same time. It’s important to strive for that balance.”
What was your first big expense as a business owner?
Two things: People and manufacturing equipment. People do the work so you have to invest here to have a good business. I often wonder, though, if co-packing is better than manufacturing in-house. The capital intensity of owning your own manufacturing is seriously something to consider.
How did you decide what to pay yourself?
I talk about this all the time to fellow founders—it’s a major issue. And I think most are underpaying themselves. In the very beginning, this is hard, because you don’t usually have investment or profits, so you’re last on the list (we paid ourselves a meer $300 a month in the beginning, which covered basically nothing). Once you get investment or profits, though, it’s important to re-look at your compensation and your role. Think about what it would cost for the business to hire for this role in the marketplace. An experienced CEO in LA makes $250K+ on average. This probably doesn’t make sense for a business that has just received its first round of funding, and you hopefully have a ton of upside in equity, so you want to consider that. Also, you probably aren’t as experienced yet, so your salary would be below average. That said, I don’t think $30K makes sense either. Be careful not to be a sacrificial lamb for your company here. A sensible pay that considers your job requirements, your value, and your equity situation should be budgeted for the business. Each year, you should re-calibrate until you get to the average or your goal at a reasonable time.
“Be careful not to be a sacrificial lamb for your company. A sensible salary that considers your job requirements, your value, and your equity situation should be budgeted for the business.”
How did you decide what to pay employees?
In the beginning, you’re always looking for the “unicorns”: the people out there without the experience, but with ALL the talent and drive to be great. This can work in the beginning—it’s certainly cheaper to do it like this. The problem is, you’re constantly going to need more out of them, and they are going to constantly have to rise with the tide in fast growth. You will likely find in one year that it just doesn't work anymore. Rarely, our “unicorns” have made it all the way in seven years, but I can only think of a few who have. Just think about that when you hire these so-called unicorns: it’s likely a short-term cheap gain for a longer term termination and re-hire. At the end of the day, my opinion is you will get the best value from hiring a person that could easily do the job one to two years from now. But you have to pay those people what they’re worth, AKA market value. The one thing you do have is equity, and you can reduce someone’s salary in exchange for that. But at this point, everyone in my company makes market pay or higher, regardless of their equity status. The equity-exchange-for-lower-salary thing only kind of works in the beginning.
What are your top three largest expenses every month?
#1 People. #2. People. #3 Raw ingredients. Did I mention people?
How much do you spend on office space?
Strictly office space is about $10K for every 30 people. But also consider the cost of building out the space. You might be surprised to know that cubicles are $1000K+ per desk, and design is not cheap. Of course, your number could go up or down if you’re super scrappy or need something fancy, but this is the average spend.
How much do you spend on employee salaries?
Salaries right now are about 60% of our total expenses. We do a lot of things in-house, though, so this number could swing 30% down (total expenses here would likely go up) if we choose to outsource more.
How much are you saving? When did you start being able to save some of your income?
We will hit profitability this year, in our seventh year in business. For the beverage industry, it’s pretty typical to take five to 10 years before hitting profits. It will often be on the longer side if you manufacture. This is something to consider—in this industry, you will need cash solutions for five to 10 years to keep your business running.
What apps or software are you using for finances? How did you decide when to hire a financial advisor (if you have one)?
We started with just QuickBooks and Square, but now we use a ton of additional tools to help us, especially for manufacturing, such as Domo and Fishbowl.
“Money to a business is like air to humans. It’s not the reason
you exist, but you literally can’t live without it.
There is no shame in wanting money.”
Do you wish you’d done anything differently in your financial journey as a business owner?
The ONE ABSOLUTE THING I would do differently is hire out financial support earlier than I did. Now that I have my CFO, I literally wouldn’t start another business without him (or someone like him). He’s been critical in helping me build a strong business.
Why should women talk about money?
Women should talk about money all the time and every day. Money to a business is like air to humans. It’s not the reason you exist, but you literally can’t live without it. There is no shame in wanting money. Money gives you freedom to live the life you want. You can make more of an impact on the world. You deserve to live the life you want, right? If you agree, it’s time to start figuring out how you get the money to live the life you want. The same goes for your business, by the way: figure out how much money it needs to make in order to hit its goals. Once you define the life you want, and the money you need, you have a defined gap to work on: the now versus the desired. It’s a heck of a lot easier to get to your desired state if you know how far you have to go.
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7 Ways to Build an Unstoppable Personal Brand in 2018
Finish out 2018 strong!
What’s the impression that others have after an interaction with you?
That’s personal branding. Think of it as your own personal calling card, your trademark. In an ever-evolving workplace where competition is fierce, it’s why people will want to work with you, hire you, hear your ideas, support you. Try these seven expert-approved tips for branding yourself in 2018.
1. Put pen to paper.
Sit down and figure out what exactly it is you want to achieve over the next 6+ months. Get clear about your goals, and about what you want for your business, your brand, and your own personal success. Write these intentions down. You don’t need to know exactly how you’re going to get there, just that you want to. Whether it’s an intention to score a promotion, get a batch of new clients, or launch a side business, clarity is key. When big decisions come up, or you get overwhelmed, the intentions you have for your brand are what will keep you on track.
2. Craft your narrative.
Building a brand, especially one that truly resonates with people, is all about the story you tell. Who you are in the world, and who you want to be. That message needs to be clear and consistent. But most of all, authentic. It needs to be your own unique brand of whatever it is you are about. Maybe you are ridiculously stylish, or fantastically funny, or maybe your invention is going to change the world. Whatever it is, own that story. Talk about it with reverence, passion, and love. That enthusiasm, that uniqueness—that is what differentiates you and it’s what people are going to notice.
3. Tap your circle of colleagues and friends.
The old adage about it’s not what you know, but who you know…it’s a total cliché, yes, but it’s also true. Relationships matter and brand building, personal or otherwise, is all about the connections you forge. Strong, meaningful, heartfelt connections. Great business relationships are built on mutual respect and authenticity. But also by being gracious and generous with your time, resources, knowledge, and connections. Helping others get where they want to go is the most sure-fire way to have people help you in return. No one has ever done it alone.
4. Be great to work with.
To be the person who makes someone else’s job easier because you are buttoned up, responsive, and “on it”—there is no better way to garner respect and drive home your worth. Adding value to the work others do means adding value to your own brand. Every email you respond to, every call you take, do it with pride and do it well.
5. Post with a purpose.
So much of brand building today is done via social media. It’s such a powerful tool, but you need to know how to use it, and use it wisely. Everything you post should reflect who you are, and the ethos of your own personal brand. Play to your strengths and take time to curate your online presence. You can’t be all things to everyone, but when it comes to an Instagram post or Twitter (anything on social media!) ask yourself first: Is this what I want to be saying? Is this post telling my story in the right way? Think of it as an opportunity to show the best version of yourself.
6. Show off your expertise.
Go to networking events, get involved in organizations related to your industry, talk on panels. Mentor young, upcoming talent, and write articles for your favorite sites. You want to become a go-to person in your field—be it for a quote about holiday décor, or why an ad campaign is successful, or how to market yourself online. Whatever it is, empower others and establish your brand by sharing what you know.
7. Run in successful circles.
You really do become who you spend time with, whether personally or professionally. So, surround yourself at all times with people who inspire you, with people who are out there doing their thing in the best possible way. If you’re around powerful people who are pursuing their dreams, chances are you’ll want to do the same. As you grow up together and build successful careers, these are also the people you’ll likely end up working with, and forming partnerships with.
Have any personal branding tips of your own? Share with us in the comments below!
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Professional Opinion: LLC vs. CORP
Having practiced law within the creative industries for a number of years, I’m rarely shocked when an individual tells me that they work free-lance and have been operating without a company. That being said, there’s never a better time than now to take action! If you are individual considering starting your own company or already have a business that you operate in your personal name, the single most important first step in building a foundation for your business is choosing the proper entity. Having a good attorney and and new, easy-to-use accounting software for small businesses, makes the entire process a cinch.
As you probably know, perhaps the most popular form of business entity today is the limited liability company. However, various alternatives exist that are all worth considering. Incorporating a business, whether in one form or another, is an effective way for entities to insulate owners from personal liability, facilitate management of the business, benefit from numerous tax advantages and even take on investors.
This article sets forth the basic considerations for limited liability companies and corporations, and provides some preliminary guidance to help you as you begin planning for the growth of your business.
The Corporation
The corporation is one of the oldest and most recognized form of legal entity. Most states have an abundance of well-established laws governing the formation of and operation of a corporation. Corporations are generally favored by investors and companies with a large number of shareholders. Corporations are allowed an unlimited number of shares, shareholders and can even create different classes of ownership or “stock”. Furthermore, growing companies looking to go public or take on significant angel or venture capital investors, owners should be aware that only corporations are eligible for initial public offerings.
Growing companies looking to go public or take on significant angel or venture capital investors, owners should be aware that only corporations are eligible for initial public offerings.
Corporations, like limited liability companies, are entities which separate from their owners. Owners or “stockholders” of a corporation are generally not liable for the debts and obligations of the corporation. The incorporation process begins with the filing of the entity’s Articles of Incorporation with the Secretary of State and requires registration in any state where it is conducting business. Following filing and registration, the Board of Directors must hold an Organizational Meeting where the Board will select officers, adopt bylaws, and conduct other appropriate business.
Most states do not have rules that require a minimum number of owners that a corporations must have, but rather a single person is capable of being the director, officer, and shareholder of the company. Corporations have a three-tiered management structure. Officers, who run the day to day operations of the company report to the Directors, who are responsible for overseeing the fundamental decisions. Directors act in the interest in of the stockholders in overseeing fundamental business decisions. Different classes of stock (i.e. common and preferred) and voting rights for each class, are generally set forth in the corporations Shareholder’s Agreement, Bylaws and Articles of Incorporation, to which all the shareholders are bound. It is important to note that all decision making between the directors, officers, and shareholders may be modified by a Shareholder’s Agreement. Shareholders’ Agreements can also provide for a number of other complex rights and restrictions on ownership of the Company, but we’ll save some of the more complex matters for another article.
Generally, we refer to plain, vanilla corporations as “C-Corp”. What many entrepreneurs don’t know is that corporations can elect taxation under Subchapter-S of the Internal Revenue Code (creating what’s called an “S-Corp”). A corporation that does not elect S-Corp status is taxed separately from its owners, typically between 20 and 40 percent on its net income, which takes into account state franchise taxes assessed to the corporation. When a corporation decides to issue dividends to its owners, each dividend is subject to taxation as well, which is why these entities are often referred to as “double-taxed.”
What many entrepreneurs don’t know is that corporations can elect taxation under Subchapter-S of the Internal Revenue Code (creating what’s called an “S-Corp”).
However, a corporation may avoid the “double-tax” by filing as an S corporation. Similar to partnerships, S corporations are pass-through entities that do not pay income taxes at the corporate level, but only at the individual owner’s level when income is allocated among owners. In order to qualify as an S corporation, there can be no more than 100 shareholders, all shareholders must be individuals and generally must be U.S. Citizens or Green Card holders.
The Limited Liability Company
In recent years, the development of the limited liability company (“LLC”) has changed how many business are structured. The LLC is a hybrid legal entity that adopts many of the features of the corporation as well as traditional rules regarding partnerships. The LLC is becoming increasingly popular because it offers limited liability to its members for all of the LLC’s obligations as well as tremendous flexibility in its ownership structure.
LLCs are formed by filing the Articles of Organization with the state in which the LLC does business, which include similar information to a corporation’s Articles of Incorporation. Due to the fact that the laws surrounding LLCs are not as developed as corporation rules, most states require that LLC’s have Operating Agreement. An Operating Agreement is signed by an LLC’s owners or “members”, is drafted to structure an LLC’s financial and functional decisions and provide rules and regulations governing the transfer of ownership, addition of new owners, tax rules and decision making authority. Additionally, the Operating Agreement outlines how profits and losses will be distributed and how and when meetings will take place, and govern succession planning, such as procedures agreed upon for buying out or transferring ownership interests when members leave the LLC. Unlike corporations, LLCs do not have a formal management structure and can tailor their Operating Agreements to fit the business’s organizational needs. An LLC can have different classes of members making the business form flexible in management, financing, and operational aspects. A properly tailored Operating Agreement can save a lot of headaches in the future.
What many people do not know, is that the LLC, unlike the corporation, is the most flexible entity for tax purposes and may elect to be taxed as a corporation, an S-Corp or as a partnership. By default, LLCs are taxed as a partnership (unless another election is made). Accordingly, all profits and losses of the partners in a partnership.
What many people do not know, is that the LLC, unlike the corporation, is the most flexible entity for tax purposes and may elect to be taxed as a corporation, an S-Corp or as a partnership.
In many states, owners of an LLC with more than one member are granted certain additional protections from creditors. Some states like Delaware, afford the same protection to single Member limited liability companies.
All in all, entity selection and tax election are issues that are unique to every business. These choices will not only help starting your business on the right foot, but will pave the way for future success. We always recommend speaking with an attorney to help guide you through the process. DiSchino & Company offers flat fee packages to help get your business off the ground. We specialize in corporate and intellectual property law and cater to companies of all shapes and sizes in the fashion, arts, design, hospitality, food and beverage and tech industries.
Christopher Dischino leads Dischino & Company, a Miami-based law firm that provides legal advice and strategic consulting for the modern business, the entrepreneur, the free-thinker and those looking for something outside the box. With a knack for the creative and an entrepreneurial attitude, Christopher specializes in business law, intellectual property and corporate transactions, assisting private clients and corporate entities to establish and expand their businesses domestically and abroad. His experience allows him to create value for his clients by using resourceful structuring techniques to help minimize unnecessary costs and risks. Get more info on Christopher and his law firm here.
Cultivating Vuja De Is Great for Good Business
Looking at something familiar with a fresh perspective.
Why do we do things the way that we do them?
When it comes to business this is an important question to ask. Do we operate on auto-pilot day-to-day? Do we respond to client emails in the similar fashion? Do we ever think outside the box? There is an aspect of work that's monotonous. We find ourselves in situations that are very familiar, moving sluggishly through the day's to-dos.
This is especially true of jobs that require routine. It makes many of us frustrated, bitter, and bored, and eventually less productive than we should be. But watching the clock is no way to go through your day.
Enter vuja de. It's the reverse of deja vu, thought up by the late comedian George Carlin who told his audience it is “the strange feeling that, somehow, none of this has ever happened before,” even though it has in fact, happened many times over.
It's a feeling where all of the sudden you can look at a Groundhog day, month, year, and see it with fresh eyes. It's how the comedian went through most of his life able to come up with fresh material. And it's something that can be wildly helpful when you're stuck in a professional rut.
Here are four tips for cultivating VUJA DE.
THINK I'LL GO FOR A WALK OUTSIDE. NOW.
(go right now.)
New ideas and insights often come from looking at a similar situation in a different light. That one project you've been working on that isn't quite working, take a walk. You may be looking at the exact same buildings, people, cars, coffee shops surrounding your office, but brain imaging has shown that after just 20 minutes of walking your brain LIGHTS UP, releasing a protein called BDNF (Brain-Derived Neurotrophic Factor). What BDNF has the ability to do is repair the memory neurons in your brain-- effectively acting as a reset switch. So when you head back into the office or that drab cubicle, you can look at the exact same problem with a new eye.
PAY ATTENTION TO WHAT IS IN THE BACKGROUND
What are you focussing on? Maybe you look at a computer screen all day. Or perhaps there's a photo on your desk that's your go-to for zoning out. (JK we know you scroll Insta at work.) But what are you really looking at? We don't only continuously scroll our tech, we've started applying that practice to work. It's time to get your thumb off the screen and your finger on the pulse.
If you heighten your senses to pay attention to "background" noise (for those who do yoga you've probably experienced this sensation during Shavasana) you will bring new ideas to the forefront. It seems silly, but if you're having a hard time doing this, squint.
"It's time to get your thumb off the screen and your finger on the pulse."
Tweet this.
WHAT IS THE INTENTION BEHIND WHAT YOU'RE DOING?
This is something that Beyond the Mag founder Sophia Macks brought up at Create & Cultivate Dallas. There is a lot of repetition in the blogging world: cupcakes, macaroon, ice cream cones against brick walls.. it gets old. But when you set an intention behind what you're doing you can make something very similar feel and look brand new. But you have to work on cultivating the meaning behind the idea. Are you posting a shot of cupcakes because that's what's hot? Give it meaning and you will give it staying power.
SHIFT SOMETHING SMALL BUT SIGNIFICANT
Setting schedules and being organized can prove immeasurably useful when you're a busy person. But if you have every moment of your life and work penciled in, something autopilot kicks in and you fall asleep at the wheel. However, here's the good news: you can erase pencil. If you have a team meeting every Monday at 10AM and ideas are starting to feel stale or your team isn't bringing the best to table, change the time of the meeting. The setting is still the same, the people are still the same, but this tiny shift can actually cause a shift in thinking. A different time of day will produce different ideas. If you always have your meetings in a conference room, try meeting in the kitchen, or on the rooftop garden. A very simple switch can prove significant.
WHEN ALL ELSE FAILS, EAVESDROP
Info is there. Ideas are too. It's all around you, often coming out of the mouth of a stranger. And though we've been told it's rude to listen in on others' conversations, you're not doing it for gossip's sake-- you're doing it because a simple word or turn of phrase can legit change how you interact with your world and your work.
Arianna Schioldager is Create & Cultivate's editorial director. You can find her on IG @ariannawrotethis and more about her at www.ariannawrotethis.com
MORE FROM OUR BLOG
Work Notes: Textile Designer Ellisha Alexina
While restoring hand-painted silk scarves for Boston's Isabella Stewart Gardener Museum, Ellisha Alexina was inspire to turned her fascination with art, fabrics, and history, into a full-fledged textile business.
After experimenting with the effects of layering watercolors and natural plant dyes on textiles, Ellisha developed her own mixed media process that blends screen-printing and hand-painting, winning over clients like Johnny Depp and garnering critical success—all before her 30th birthday. Here, the 26-year-old shows us her studios and shares her notes on making it work.
Textile designer Ellisha Alexina in her studio
While restoring hand-painted silk scarves for Boston's Isabella Stewart Gardener Museum, Ellisha Alexina was inspire to turned her fascination with art, fabrics, and history, into a full-fledged textile business.
After experimenting with the effects of layering watercolors and natural plant dyes on textiles, Ellisha developed her own mixed media process that blends screen-printing and hand-painting, winning over clients like Johnny Depp and garnering critical success—all before her 30th birthday. Here, the 26-year-old shows us her studios and shares her notes on making it work. —JM
On getting started
I launched my first textile collection in Fall 2013. I have always had an inclination toward textiles, design, and working with my hands. It was my final year in college when I discovered a way to print fabric by hand painting on silkscreens, and became drawn to the technique.
After college, I opened my studio in Easthampton, Massachusetts. Mentorship was essential in the beginning stages and I found a great one in Peter Fasano. When building my studio, we would meet and discuss the industry, inspiration, and the handmade process of textiles, and Peter introduced me to other designers in the trade which was extremely helpful.
On her breakout moment
Having the first collection accepted into the Holland & Sherry New York showroom has been one of the most rewarding experiences so far. I loved their showroom and remember calling them directly and managed to schedule a meeting to show my work. It was so nerve wracking, since I knew they'd never heard of me! At the meeting, I could tell they were really intrigued, and about a week later I received an email saying the brand had been accepted for representation. That moment was groundbreaking for the company, and me personally.
Inside Ellisha's studio
On Challenges
Balancing the business needs along with the creative side has been the most challenging experience so far. I am always wanting to create new designs, new methods, and new fabrics—that's what I'm drawn to as an artist. I find myself always asking two questions: "what's next?" and "how?" I think a lot about evolving the brand, but I also realize that rapid growth in the beginning stages isn't actually always what's best.
On Lessons Learned
I have learned about the importance of discipline, keeping focus, and having a clear vision to build a solid foundation. With that said, I just launched my second collection in May, which I'm very excited about. I have been exploring product design as well as a collection of wallpaper. While I can't wait to see where this all goes, I'm constantly reminding myself to take note of the beauty of daily achievements. It can be easy to lose sight of when you're always thinking ahead.
“take note of the beauty of daily achievements...it’s easy to lose sight when you’re always looking ahead.”
Advice to others getting into the textile business
My best advice is to keep true to your perspective. There is a world of prints, colors, patterns, scale, and decisions out there. Don't let what other people have done alter your style. Your vision is the most important to keep while creating a fabric collection. Inspiration and an understanding of trends is important, but you need to find a way to use those only as a tool to help you create and not let them overpower your originality as a designer.
On her process
The most natural aspect of design to me is creating movement within the pattern. When developing a print, I often start with a blank piece of drawing paper and black pen. I use my inspiration and references to guide the style of the print I am creating. While looking at my references, I create a simple black and white drawing. I do this over and over, rhythmically, until I have achieved something that bounces to the eye. Adding color to the print and choosing color stories takes me a lot of time. Part of me thinks it is because I gravitate toward neutral colors, so adding too much saturation changes my vision of the print. I have to set strict deadlines for these kinds of decisions, otherwise I would never choose!
On what's next
Very recently, I've gone back to my original paintings from my first collection, Mendel, and began experimenting with them for an Archive Collection of wallpaper prints. The original colors of these paintings are harmonious with gemstone tones, which is exciting and new to the brand. I have also been traveling to antique trunk shows and finding vintage chairs to reupholster, which is leading the way to the beginnings of an e-commerce store.
On age in business
My age has impacted my business in a few different ways. Undoubtedly, being a young designer allows me to come into this field with a vision that has not been colored by opinions from the industry. I love coming out with new prints and working with designers because I do not have any preconceived limits on what is or is not possible. That might sound risky, but to me that is so exciting! On the other end, being young can also give people the idea that they can walk all over you because of your inexperience. So my advice there is: stay confident, and do your research. Those people who treat you negatively because of your age aren't people you want to be doing business with. Know your market, and let your age serve as part of the development of the brand.
Follow Ellisha on Instagram for everyday inspiration and view her line at ellishaalexina.com
Making the Most Out of Pinterest
Just thinking of the word “Pinterest” elicits a mental moodboard of hosting hacks, dreamlike bridal showers, recipes for the perfect chocolate chip cookies, and DIY projects that elevate any standard living space to Apartment Therapy status. As we enter the age of the “buy it” button, these once distant, aspirational products and lifestyle brands have become that much closer (read: one click away).
My personal insufficiencies in the DIY and party planning departments aside, Pinterest is making huge strides. The social network is valued at $3.8 billion, and is becoming a smarter investment for brands, pending they commit to maximizing the platform’s functionality and strengths.
Below is a quick list of Pinterest hacks to help jumpstart new Pinterest community growth and lay the foundation for monetization.
How to Hack Your Presence & Make the Most out of Pinterest
by Dana Kelly
Just thinking of the word “Pinterest” elicits a mental moodboard of hosting hacks, dreamlike bridal showers, recipes for the perfect chocolate chip cookies, and DIY projects that elevate any standard living space to Apartment Therapy status. As we enter the age of the “buy it” button, these once distant, aspirational products and lifestyle brands have become that much closer (read: one click away).
My personal insufficiencies in the DIY and party planning departments aside, Pinterest is making huge strides. The social network is valued at $3.8 billion, and is becoming a smarter investment for brands, pending they commit to maximizing the platform’s functionality and strengths.
Below is a quick list of Pinterest hacks to help jumpstart new Pinterest community growth and lay the foundation for monetization.
Content Creation
Pinterest content plays by its own set of visual rules. Did you know that vertically oriented visuals go viral at a higher rate than horizontally oriented visuals? Or that showing a person’s entire face often restricts an image from going viral? Are you up to date on the functionality nuances of hashtags on Pinterest? While these details can seem arduous, creating and sticking to a design and copy style guide will help your pins work harder with Pinterest’s Smart Feed. Staying up to date on high performing pins and content best practices can lend itself to platform growth and increased content exposure by means of the visuals themselves.
Content Cadence
Pinterest demands more content than other platforms, and relies heavily on both original and crowd-sourced assets. Per Pinterest best practices, brands see the most success by pinning at least 5 times every day. The platform’s algorithm encourages daily brand publishing, and that’s a lot of content! If you’re pinning a range of visual content at least 5x a day, every day, that’s 1,825 pins minimum in one year. For many companies, this is not a feasible commitment to one small piece of the business. The short-term solution? Start slow, test, and scale up. Consider starting with 15 pins a week, and slowly build up your target audience. At 15 pins a week, that’s 780 pins for the year. When considering production, identify how many pieces of original content you can create in order to meet your goals. A good benchmark that is the oft thrown around ‘80/20 rule’ or, in other words, create conversation about your brand in 20% of your posts, and dedicate the other 80% to genuinely engaging content for your consumers.
"if you're pinning content 5x a day, every day, that’s 1,825 pins minimum in one year."
The Ecosystem
The majority of Pinterest content is pinned from across the World Wide Web. You know - blogs, editorial sites, shopping hubs, etc., rather than uploaded directly. This is an indicator that Pinterest should be represented across your brand’s digital footprint. Making your website’s content pinnable is a crucial first step, and verifying your Pinterest account with your website allows for much more detailed analytics and conversion analysis. Employing Rich Pins, which are pins that contain more detailed information than a standard pin, should absolutely be built into your ecosystem if your brand or blog falls into one of the following categories: app, movie, recipe, article, product, or place. You can learn more about implementing these free tools on Pinterest’s Business hub.
The Community
This should not come as a shock, but interacting with the Pinterest community at large is the only way to truly understand your demographic and their content aesthetics. Like, comment, repin, and follow away! You’ll create a more meaningful user experience for yourself and your potential consumers.
Content Distribution
Content creation and engaging with your community are the fundamentals, but how do you get new eyeballs on your content? You’ve spent a lot of time and effort on these assets! You deserve some validation! Building distribution tactics into your overall Pinterest strategy will ensure that your content gets the visibility you’re looking for. Working with influencers to curate and host group boards around moments or occasions is an extremely effective way at achieving organic growth and impressions, as well as providing the added value of more original brand content. Pinterest also has a range of new promoted pin options and more traditional media buying capabilities if you are looking for more guaranteed results and hard data.
If e-commerce is an extension of your business, it’s time to consider Pinterest. It’s the digital DIY cult we all deserve, even if you've been hesitant to dive in.
Follow @createcultivate on Pinterest. We just got started, so we're taking Dana's advice to heart!
Dana Kelly is a content strategist by trade and subscribes to the notion that life, lifestyle, and the left coast are what matter most. The California native spends most of her days at Mistress, and has a deep love for words, wine, and great in-flight entertainment.
Meet the Speaker: Erica Domesek of P.S. - I Made This
Erica Domesek founded the DIY empire P.S. - I Made This, taking the brand from blog to books to events and then some. She's an expert on delivering smiles one DIY project at a time and building a brand both online and off, which is why we can't wait to hear her on panel at #createcultivateCHI!
Name + @username Erica Domesek + @psimadethis
Trade Founder of P.S.- I Made This
Panel From Blog To Brand: The art of creating compelling content that translates offline and online
Erica Domesek founded the DIY empire P.S. - I Made This, taking the brand from blog to books to events and then some. She's an expert on delivering smiles one DIY project at a time and building a brand both online and off.
Get your tickets here to catch Erica live in conversation at #CreateCultivateCHI on Aug 15th!
What’s at the top of your to-do list today?
I am headed to Duff's Cakemix to decorate a cake with my friend's daughter! Top priority.
Where were you in life just before you started your blog/business?
I was a prop stylist and set designer, working as a creative consultant for brands like Madewell, Kate Spade, Anthropologie, Glamour and Teen Vogue Mags, etc. Designing store windows, advertising campaigns, and lookbooks was my background.
Your Instagram feed is a go-to destination for a dose of color and inspiration. What content have you found performs the best? Any tips for creating content?
I like to say, "comfort with a twist" performs the best. What does that mean? Something that you're comfortable with, like something you recognize and are familiar with, but give it a twist. That OMG-factor that makes you wanna double tap, or even tag your BFF in the comments.
Great tip. What’s the last interweb rabbit hole you went down?
Instagram is my bermuda triangle. I'm currently stuck on rainbow legos, gummy candies, and comparing compositions and color coordination.
What tools and/or apps are essential to your work?
My go-to apps are Instagram, Pinterest, Snapchat… and I would be lost without Dropbox.
Which part of your business comes the most naturally to you? What skills have you had to work overtime to develop?
I'm a left and right brained person who sometimes leans on the creative motor skills more than the business side, and other times that flip-flops when you're running a creative business. Brainstorming new campaigns and projects with out-of-the-box ideas and writing cute copy are what I live for. I have to work on my management and communication skills daily, as well as my organization.
Who do you go to most for advice (in life and/or work)? What’s the best piece of advice they’ve given you?
I have the best and smartest friends who are also my mentors. I have learned that being reactive does not help anyone—yourself, your team, etc. I always say "talk once, and listen twice," because sitting back and getting other's perspectives and thoughts will be helpful to not only your overall team building, but also helps you to stay open and accepting of other's advice and ideas.
Check out P.S. - I Made This for more bold DIY inspiration than you can shake a fistful of glitter at (including this #girlboss friendly DIY gem mousepad)!
Get your tickets here to catch Erica live in conversation at #CreateCultivateCHI on Aug 15th!
BFFs in Business: Show Me Your Mumu
Proving that necessity is the mother of invention, design duo and best friends Cammy Hebert and Cologne Schmidt, both 29, of Show Me Your Mumu reinvented the classic mumu after a weekend vacation in Miami. The rest is modern fashion history wrapped in their eclectic brand that has been embraced by celebs like Jessica Alba, Kate Hudson, and Beyoncé.
BFFs in Business: Cammy (left) and Cologne (right) of Show Me Your Mumu
#Femships have been making headlines lately. From Beyoncé and Nicki, to Tina and Amy, to Taylor Swift and her bevy of BFFs (#squadgoals), it's a term coined in celebration of female friendships in life and sometimes, in business.
Proving that necessity is the mother of invention, design duo and best friends Cammy Hebert and Cologne Schmidt, both 29, of Show Me Your Mumu reinvented the classic mumu after a weekend vacation in Miami. The rest is modern fashion history wrapped in their eclectic brand that has been embraced by celebs like Jessica Alba, Kate Hudson, and Beyoncé. Show Me Your Mumu is loved by women everywhere who can find it online and in more than 300 stores nationwide.
We chatted with Cammy and Cologne about the ins and out of business and friendship, and how they make their #femship work (literally).
Name: Cammy Hebert & Cologne Schmidt
Trade: Co-founders of Show Me Your Mumu
Location: Venice Beach and Vernon, CA
So-called "femships," aka female friends run businesses together, are having a moment. How has your friendship given you a business edge?
Cologne: We started this business as friends, and we're lucky that we still are best friends and work together so well! Usually people advise not to go into business with your best friend, but we have been very lucky. Our relationship is more like sisters now—we have been through a lot together. The Mumu lifestyle is all about girlfriends and having fun, so were have been able to translate that lifestyle to our customer. We also each bring different vibes and styles to the table, rounding out the Mumu line and aesthetic.
"we started this business as friends and we're lucky that we still are."
How do you think your business would be different working solo?
Cologne: Having a business partner makes the whole process so much more fun and emotionally manageable. Cammy and I go through all the highs and lows together—we get to cry and we get to celebrate together. When problems arise, we can help each other solve them. We also manage different channels of the business, so we can split up some of the workload and teams we manage. The creative part, which we both love, we get to do together and bring our unique vibes to each collection.
How was the transition of working for companies like Calvin Klein, to packing your bags to LA and starting your own business?
Cammy: We laugh because starting your own business is kind of like having a baby. You care about them so much, they are nonstop work, and you will do anything for them—including staying up all night. Working for yourself is very challenging, but also very rewarding. It involves a lot more emotion and work, but we would never change it. We love our baby, Mumu!
Show Me Your Mumu is a very female-powered business. Who are the women that inspire you?
Cologne: We have both learned a lot from our moms. My mom is a very strong lady, who always taught me to speak up, work hard, and be and be myself. We have 3 women on our board who we work closely with—Liz, Cammy’s mom Teresa, and Janet. They are amazing women who inspire us and make us better women and #girlbosses.
"always be honest and vocal with each other. it will help in the long run."
What would be your best advice to someone who wants to start a business with their friend?
Cammy: Make sure that you can see it working longterm. Think about all of the situations you will have to go through and imagine how you'd handle them together. It is so much fun to work with a friend, but it can also be strenuous on some friendships, so it is not for everyone! If you do choose it, make sure to always be honest and vocal with each other. It will help you in the long run. Also, have fun with it! Running a business with your bud is a blast!
Thanks, girls!
Shop the line and follow @showmeyourmumu on Instagram for tons of color and goodness daily!
Longform: The Money of Art and How I Self-Published My First Book
It's a joke among writers—if you search "working on my novel" on Twitter, you’ll get millions of results. There's even a blog dedicated to people announcing their books. Most of which never make it onto (or off the) page. My first book never did until I figured out: I was going about it all wrong. Now that I've written and published my first book, I've got a few lessons to share.
The Money of Art by Peter Nguyen photographed by EDGE Studios/Sean Kilgore-Han
Peter Nguyen is an artist, writer, designer, career coach, and champion for artists in the digital age. He has also been a constant in my own digital life. We met way back when on LiveJournal and since then, I've sought him out for advice on everything from fashion to relationships, moving cross-country (and back again), podcasts to coffee, career, business, and everything in between. Peter is the master of many domains: from his successful lifestyle blog/newsletter The Essential Man, his menswear label LÉON, and now his first book The Money of Art.
I've always been struck by Peter's transparency about his art, work, and process. Since reading The Money of Art, I've been suggesting and passing it along to pretty much every creative I know (it's currently on-loan to an indie musician friend, who's already applying Peter's tips to his work). This post started out as a book review, but with so many creative entrepreneurs in the Create + Cultivate community, I thought Peter had a very unique perspective and advice on expanding your brand and successfully self-publishing a book. You don't have to wait for a book deal to come knocking. There are plenty of ways to get a beautiful book out there yourself (and maybe even capture the attention of a publisher or book agent for your text title). Read on to see how Peter made it happen for himself. —JM
The Money of Art and How I Self-Published My First Book
I have been selling online for literally half my life. I started my first eBay business at 16 years old, buying and selling arcade games. Early in college, when I took an interest in fashion (which later led to a career as a menswear designer), I started buying and selling designer clothes. More recently, I launched my own menswear label and started a writing about my experiences on a blog called The Essential Man. In 2012, when I decided to revamp The Essential Man, I decided to give my readers something they had been asking for. I announced that I was writing a book.
As it so happens, that book never happened.
It's a joke among writers—if you search "working on my novel" on Twitter, you’ll get millions of results. There's even a blog dedicated to people announcing their books. Most of which never make it onto (or off the) page.
It wasn't until I picked up a book called Just F*cking Ship by Amy Hoy did I realize I was going about it all wrong.
Amy's book not only changed how I work forever, it has changed how I approach my goals. Two months after I finished Just F*cking Ship I had written my first book: The Money of Art: Make Money And Escape The Corporate Grind, While Staying True To Your Art.
So what was different this time? Below are 10 things that helped me write and finally self-publish my 1st book.
1. RE-DEFINE THE "REAL AUTHOR".
When other writers ask how I published and sold my book, and I say that I self-published, they always seem turned off. They tell me they want to do it the “old-fashioned” way. As a writer, of course I understand there is a certain romance with being “chosen” by a publisher and possibly, just maybe, hitting the New York Times best-seller list. But you have to decide what’s more important to you: holding onto an outdated, romanticized image of what it means to be a writer or embracing new opportunities to actually get your work out there for people to discover, love, and share.
"What’s more important: holding onto a romanticized idea of a writer or actually getting your work out?"
The best thing? You can still have your book printed in physical form. In fact, The Money of Art was published in paperback, hardcover, and digital. The difference was that I no longer needed someone else's permission to publish my book.
What makes you a real author? Writing a book and making it available for people to read. It’s as simple as that.
2. CHOOSE ONE PROBLEM AND SOLVE IT.
It’s tempting—especially with your first book—to cram your entire life philosophy within its pages, but it’s not going to do you or the reader any favors.
A lot of people I advise tell me that they want to write a “lifestyle” book or build a lifestyle business. The truth is, no one goes in a bookstore thinking “I need a book on lifestyle!” Instead they'll look for a book on vegan baking, turning a blog into a business, or DIY projects, specifically. Niche into a problem—specific problems that are part of a lifestyle. Find your trojan horse. In the case of my book: how to make money as an artist. And inside my trojan horse I hid the other things I wanted to teach, such as the psychology of money, redefining happiness, and doing work you’re passionate about. I believe my first ill-fated book for The Essential Man never worked out in part because I never defined a true problem.
3. DEADLINES WILL KEEP YOU ALIVE.
Flash back to high school. Remember how you seemed to do your best work when the assignment was due the next day? Was it because you’re just really amazing at working until the sun comes up, or was it the pressure of that deadline? I’d put money on the latter. When I announced my first book attempt, I chose the worst kind of deadline: coming soon. In my experience, “coming soon” is code for “never really going to happen.”
Here’s something I’ve never shared publicly: When I announced The Money of Art release date (in March 2015) and started taking pre-orders, I only had the outline finished. The timespan from the day I announced the book to the on-sale date was just 30 days.
I took to my Google calendar and broke up the work accordingly. I scheduled what writing, editing, sharing, and cover designing needed to be done on what days. And this time, I stuck to it.
Now, I don’t recommend you (nor anyone) try to write a book in 30 days, but my point still remains: deadlines help you get work done. Your self-imposed deadline should be close enough to scare you into doing the work, but not so far away that you'll put it off.
"Self-impose deadlines close enough to scare you into doing the work, not so far away you'll put it off"
4. THE OUTLINE IS HALF THE BATTLE.
In The Money of Art, I emphasize the importance of what I call "front-loading the work." It's something I learned from entrepreneur Ramit Sethi. Front-loading the work means putting in extra time and effort upfront to make the work later on much easier.
To that effect, I spent a good month outlining my book before I actually sat down and wrote a single chapter. I didn’t use anything fancy, just a Google Doc. The first thing I wrote was actually the last chapter—what I wanted the reader to get out of the book. In The Money of Art, my goal was to teach artists how to market themselves and sell their work online.
Then I worked my way backwards, writing the chapter titles as I went, and starting to write and edit the book in my head. After that, I got someone to skim it over. Did it flow like a real book? Was there something to expand on? Anything unclear? Just make sure the person you hand it to will give you honest, real—and sometimes blunt—feedback.
5. SET UP A MAILING LIST RIGHT NOW.
Setting up an e-mail list is basically a way for you to separate people that don’t really care about your work from the people who can’t wait to throw money at you.
Your mailing list also helps when you have future products you want to sell. The old business adage that it's harder to sell to a new customer than an old one is true. Customers who have purchased from you before are 4x more likely to buy from you than someone who hasn’t.
It doesn’t have to be fancy or expensive. I purchased my book's URL on Hover.com ($10), set-up a website through Squarespace ($8), and created a landing page that linked to my Mailchimp account (free). All the page said was: "To get news of the release of The Money of Art sign up here."
6. BEFORE (& AFTER) YOUR BOOK RELEASE, SEND AMAZING CONTENT.
Building a list and only e-mailing them when you're selling something is a guarantee that you will get no sales. You know that one friend or family member who only calls when they need something? Don’t be that person. People will stop looking forward to your call.
Long-term, the relationship is more valuable than the sale.
For example, before its release, I held a book cover design contest. The prize: A full “Pro-Package” of The Money of Art. It contained a signed hardcover edition of the book, instant digital download, a goodie bag, and a design credit in the book. Mailing list subscribers were shown three rough cover mockups, chose their favorite, and answered a simple survey via Squarespace. It was one-part crowdsourcing the most-liked cover design, one-part content to keep people excited while I wrote the book. It was a huge success. Not only did I get hundreds of responses, I got to interact with my mailing list to show them there was an actual human being on the other end of that sign-up form, and I cared about their thoughts and opinions.
I also sent chapters of the book AS they were being finished and fielded questions. Including one of my best chapters about the artist’s fear of being successful. Why did I give away one of my best chapters? Because when someone reads or shared that e-mail and says “Wow, that was good,” they’re also thinking “well, the rest of the book has to be amazing.” It’s incentive to buy and validates their subscription in the first place.
And now I keep the conversation going even after the release with exclusive content for people who purchased the book.
Original cover mockups for The Money of Art
7. YES, WE DO JUDGE BOOKS BY THEIR COVERS.
What your parents told you isn't true. Book covers matter. Romance Author JS Taylor doubled her sales overnight with a good cover redesign.
My most basic advice: collect a folder of book covers that instantly attract your attention, then try to analyze them. Pinterest is a perfect resource for beautiful cover designs.
If you're up for a challenge and want to be hands on, I recommend taking the Skillshare course on book cover design by Peter Mendelsund, who’s designed famous covers like The Girl With The Dragon Tattoo.
What would I do differently for my next book? I’d invest in a professional to design it for me. Writing, formatting, and marketing a book is hard enough, and I think cover design is the first area I would outsource besides hiring an editor. The lifetime return for a great book cover in sales will outlast the couple hundred bucks you spend on a good cover designer. It’s your book’s best business card.
8. OUTSOURCING YOUR WEAKNESS IS A STRENGTH.
Speaking of outsourcing, I highly recommend owning your weaknesses and outsourcing them. After 16 years of experience selling, packaging, and mailing out orders, I knew I didn’t want to spend hours a day sending out orders of my hardcover book (paperbacks were handled by an Amazon-backed service for self-publishers called Createspace). I used an amazing service called Shyp (Editor’s Note: Shyp’s Head of Marketing, Lauren Sherman is a mentor at #createcultivateCHI!) to package and ship my orders. You simply take a photo of what you need sent, and Shyp comes by to pick it up. And recently, I hired a copy editor, which has made my writing process 100 times smoother, less stressful, and more fun.
9. LEARN FIRST, EARN SECOND.
One of my favorite entrepreneurs whom I mentioned previously, Ramit Sethi, talks about “optimizing for learning not earning” when you’re starting out. I will be honest, you probably won’t be replacing your main source of income with your first book... or your 2nd, or even the 5th. But as you keep publishing, it is going to get easier and easier.
Think of your first book like the beginning scenes in one of those bank heist movies—you’re casing the scene, getting familiar with how things work.
My book launch had the bigger-than-expected numbers because I took time to build an e-mail list before the book launch, seeded out great content, engaged with my list, and even e-mailed subscribers personally, asking what they were having problems with as an artist.
Through that effort, I pulled in about $1,305 on the very first day. Three months later, I sell about 2-4 book sales a day with little to no extra effort or advertising on my part. That comes out to about $150/month. Not life changing, but it’s passive income that has paid tenfold in credibility for my private career coaching and speaking engagements. And with each new book I write, I expect that number to rise.
As James Altucher, best-selling author of Choose Yourself!, put it, “the best way to promote your book is to write another book.“
10. BE PROUD OF YOUR WORK.
Now, you went through the process of writing a book. You finished it. You took the time to outline and find a good designer. So do me and everyone else a favor: call yourself an author!
So many of the creatives I advise are too humble, dare I even say, embarrassed when it comes to talking about their own work. It’s called “Imposter Syndrome” and it's no good for anyone. How many times have you seen on social media someone say "I wrote a little thing..." or "Oh, I'm just self-published writer" or "I have a start-up." A start-up is just a scared person’s word for “new business” and “I wrote a thing” is a self-conscious way of saying, “I wrote a mind-blowing resource for young business owners.”
People will start taking you more seriously when you use confident language that signals that not only are you serious, but you’re serious about your work.
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